Instructor’s Manual: Dynamic Business Law: The Essentials (5th Edition) by Nancy Kubasek – Chapters 1–25 Complete Solutions

INSTRUCTORVMANUALVFOR
DynamicVBusinessVLawVTheVEssentials,V5thVEdition,VNancyVKubasekV
ChapterV1-25

ChapterV1:V AnVIntroductionVtoVtheVFundamentalsVofVDynamicVBusinessVLawV
andVBusinessVEthics

1. CHAPTERVOVERVIEW

ChapterV1VlaysVtheVfoundationVforVtheVtextbook.VTheVtextbookVemphasizesVwaysVinVwhichV
businessVlawVintersectsVwithVtheVsixVfunctionalVareasVofVbusiness.VThroughoutVtheVtextbook
,VtheVauthorsVwillVencourageVstudentsVtoV―connectVtoVtheVcore,‖VandVrememberVtheVwaysVi
nVwhichVlawVintersectsVwithVotherVareasVofVstudy,VincludingVcorporateVmanagement,Vproduc
tionVandVtransportation,Vmarketing,VresearchVandVdevelopment,VaccountingVandVfinance,Vand
VhumanVresourceVmanagement.



ThisVmanualVsupportsVtheV―connectingVtoVtheVcore‖VthemeVbyVgivingVideasVforVassignment
sVthatVencourageVstudentsVtoVintegrateVtheirVbusinessVlawVknowledgeVwithVknowledgeVthey
VareVacquiringVfromVtheirVotherVbusinessVclasses.VTheVmanualValsoVencouragesVprofessorsVt
oVimproveVtheirVteachingVskills.V Finally,VtheVmanualVsuggestsVteachingVideasVforVbothVbegi
nningVandVexperiencedVteachers.

2. LEARNINGVOBJECTIVES
AfterVreadingVthisVchapter,VstudentsVwillVbeVableVtoVanswerVtheVfollowingVquestions:

1. WhatVisVbusinessVlaw?
2. HowVdoesVbusinessVlawVrelateVtoVbusinessVeducation?
3. WhatVareVtheVpurposesVofVlaw?
4. WhatVareValternativeVwaysVtoVclassifyVlaw?
5. WhatVareVtheVsourcesVofVlaw?
6. WhatVareVtheVvariousVschoolsVofVjurisprudence?

3. LECTUREVNOTESVWITHVDEFINITIONS

a. InVtheVnews…
TeachingVtip:V ForVeachVchapter,VconsiderVaskingVstudentsVtoVrelateVcurrentVnewsVitemsVto
VmaterialVfromVtheVchapter.


InVadditionVtoVideasVstudentsVcomeVupVwithVonVtheirVown,VconsiderVweavingVinVne
wsVstoriesVprovidedVbyVtheVMcGraw-Hill.V StoriesVareVavailableVviaVaVMcGraw-
HillVDVD,VandVonVtheVpublisher‘sVwebVsite.




1-1
©V2021VMcGraw-
HillVEducation.VAllVrightsVreserved.VNoVreproductionVorVdistributionVwithoutVtheVpriorVwrittenVconsentVofVMcGraw-
V HillVEducation.

,ForVChapterVOne,VMcGraw-HillVoffersVtheVfollowingVstories:

―SmokingVBan:V TobaccoVTyrants:VGoneVTooVFar?VManyVStatesVAreVPuttingVStrongerVRes
trictionsVonVWhereVYouVCanVSmoke‖
• HaveVstatesVgoneVtooVfarVinVbanningVsmoking?
• WhoseVinterestsVareVstateVlegislaturesVlookingVoutVforVinVbanningVsmoking?

―CollegeVOfficerVDealingsVWithVLendersVScrutinized.‖
• ShouldVregulatorsVtakeVaVmoreVcarefulVlookVatVcollegeVofficers?
• WhyVcreatedVchangesVinVtheVwaysVcollegeVofficersVinteractVwithVlenders?


b. WhatVisVbusinessVlaw?
BusinessVlawVconsistsVofVtheVenforceableVrulesVofVconductVthatVgovernVtheVactionsVofVbuy
ersVandVsellersVinVmarketVexchanges.

c. HowVdoesVbusinessVlawVrelateVtoVbusinessVeducation?
BusinessVlawVappliesVtoVtheVsixVfunctionalVareasVofVbusiness:
• Management
• ProductionVandVtransportation
• Marketing
• ResearchVandVdevelopment
• AccountingVandVfinance
• HumanVresourceVmanagement

d. WhatVareVtheVpurposesVofVlaw?
• ProvidingVorder
• ServingVasVanValternativeVtoVfighting
• FacilitatingVaVsenseVthatVchangeVisVpossible
• EncouragingVsocialVjustice
• GuaranteeingVpersonalVfreedoms
• ServingVasVaVmoralVguide

e. WhatVareValternativeVwaysVtoVclassifyVlaw?
OneVwayVtoVclassifyVlaw:
PrivateVlawVinvolvesVdisputesVbetweenVprivateVindividualsVorVgroups.
PublicVlawVinvolvesVdisputesVbetweenVprivateVindividualsVorVgroupsVandVtheirVgovernment.

AVsecondVwayVtoVclassifyVlaw:
CivilVlawVisVtheVbodyVofVlawsVthatVgovernVtheVrightsVandVresponsibilitiesVeitherVbetweenV
personsVorVbetweenVpersonsVandVtheirVgovernment.
CriminalVlawVisVtheVbodyVofVlawsVthatVinvolveVtheVrightsVandVresponsibilitiesVanVindivid
ualVhasVwithVrespectVtoVtheVpublicVasVaVwhole.




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©V2021VMcGraw-
HillVEducation.VAllVrightsVreserved.VNoVreproductionVorVdistributionVwithoutVtheVpriorVwrittenVconsentVofVMcGraw-
V HillVEducation.

,TeachingVtip:V AskVstudentsVtoVgiveVanVexampleVofVaVfactVsituationVthatVledVtoVbothVcrim
inalVandVcivilVlawsuits,Ve.g.,VtheVO.J.VSimpsonVtrials.

f. WhatVareVtheVsourcesVofVlaw?
SourcesVofVbusinessVlawVare:
1. Constitutions
ConstitutionalVlawVrefersVtoVtheVgeneralVlimitsVandVpowersVofVgovernmentsVasVstatedVinVt
heirVwrittenVconstitutions.
2. StatutesVorVlegislativeVactions
StatutesVorVlegislativeVactionsVreferVtoVtheVassortmentVofVrulesVandVregulationsVputVforth
VbyVlegislatures.
3. Cases
CaseVlawV(orVcommonVlaw)VisVtheVcollectionVofVlegalVinterpretationsVmadeVbyVjudges.
VPrecedentVisVaVtoolVusedVbyVjudgesVtoVmakeVrulingsVonVcasesVonVtheVbasisVofVkeyVs
imilaritiesVtoVpreviousVcases.
StareVdecisisVisVaVprincipleVstatingVthatVrulingsVmadeVinVhigherVcourtsVareVbindingVpreced
entVforVlowerVcourts.
TeachingVtip:V TheVfirstVtimeVyourVstudentsVencounterVanVappellateVcaseVinVtheVreadin
gs,VshowVthemVwhatVstareVdecisisVlooksVlikeVinVtheVcontextVofVaVrealVcase.
4. AdministrativeVlaw
AdministrativeVlawVisVtheVcollectionVofVrulesVandVdecisionsVmadeVbyVadministrativeVagen
ciesVtoVfillVinVparticularVdetailsVmissingVfromVconstitutionsVandVstatutes.
5. Treaties
AVtreatyVisVaVbindingVagreementVbetweenVtwoVstatesVorVinternationalVorganizations.
6. ExecutiveVorders
AnVexecutiveVorderVisVaVdirectiveVthatVcomesVfromVtheVpresidentVorVstateVgovernor.

g. WhatVareVtheVvariousVschoolsVofVlegalVinterpretation?
SomeVschoolsVofVlegalVinterpretationVinclude:
• IdentificationVwithVtheVVulnerable—
VemphasisVonVfairnessVandVlookingVoutVforVthoseVwithVtheVleastVpower.
• HistoricalVSchool/VTradition—emphasisVonVtheVuseVofVtraditionsVandVstareVdecisis.
• LegalVRealism—judgesVconsiderVcontextVsuchVasVsocialVandVeconomicVconditions.
• Cost-benefitVAnalysis—
emphasisVisVonVassigningVmonetaryVvaluesVtoVcostsVandVbenefitsVofVtheVlawVinVor
derVtoVmakeVcalculationsVtoVmaximizeVtheVratioVofVbenefitsVtoVcosts.

TeachingVtip:V ConsiderVusingV―TheVCaseVofVtheVSpelunceanVExplorersV(linkVbelow)VtoVm
akeVtheVschoolsVofVjurisprudenceVcomeValive.

h. AppendixVonVCriticalVThinkingVandVBusinessVLaw
CriticalVthinkingVincludesVtheVapplicationVofVevaluativeVstandardsVtoVassessVtheVqualityVor
VtheVreasoningVbeingVofferedVtoVsupportVtheVconclusion.V CriticalVthinkersVwillVfollowVthis
VpatternVofVcarefulVthinkingVwhenVtheyVreadVanVargument:
1. FindVtheVfacts.
2. LookVforeVtheVissue.




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©V2021VMcGraw-
HillVEducation.VAllVrightsVreserved.VNoVreproductionVorVdistributionVwithoutVtheVpriorVwrittenVconsentVofVMcGraw-
V HillVEducation.

, 3. IdentifyVtheVjudge‘sVreasonsVandVconclusion.
4. LocateVinVtheVdecisionVtheVrulesVofVlawVthatVgovernVtheVjudge‘sVreasoning.
5. ApplyVcriticalVthinkingVtoVtheVreasoning.V EvaluateVtheVreasoning.
• LookVforVpotentialVambiguity.
• ConsiderVtheVstrengthVofVanalogies.
• CheckVtheVqualityVofVtheVjudge‘sVreasoning.
• DecideVwhetherVimportantVinformationVisVmissing.
• ConsiderVtheVpossibilityVofVrivalVcauses.


4. TEACHINGV SKILLS:V BLOOM’SV TAXONOMYV SETSV THEV STAGEV T
OVTHINKVABOUTVTHEVKINDSVOFVQUESTIONSVTOVASKVYOURVSTUD
ENTS
BenjaminVBloom,VinVhisVTaxonomyVofVEducationalVObjectives,*VdevelopedVaVhierarchyVof
VcognitiveVfunctions.V HisVworkVsetsVtheVstageVforVteachersVtoVunderstandVwhyVitVisVimpor
tantVtoVthinkVcarefullyVaboutVtheVkindsVofVquestionsVtheyVaskVinVclass.

TheVObjective SampleVquestions
Knowledge • WhatVisVbusinessVlaw?
LowestVlevelVofVlearningVandVisVmostlyVmem • WhatVareVtheVfourVelementsVofVaVneglig
ory.VTheVstudentVrecognizesVandVrecallsVinfor enceVclaim?
mation.
Comprehension • WhatVisVyourVunderstandingVofVtheVcon
LowestVlevelVofVunderstanding.VTheVstudentVp ceptVofVstareVdecisis?
araphrasesVorVexplainsVsomething. • WhatVdoesVyourVtextbookVmean
VbyVdeontology?
Application • HowVwouldVaVnaturalVlawVthinkerVresp
StudentVdemonstratesVherVunderstandingVofVa ondVtoVthisVparticularVfactVpattern?
bstractVrules,Vprinciples,VorVgeneralizationsVby • UseVaVparticularVcaseVruleVtoVdetermine
VusingVthemVtoVsolveVlife-likeVproblems. whetherVtheVplaintiffVwillVbeVsuccessfulVi
nVherVclaim.
Analysis • ProvideVtheVreasoningVforVtheVfollowin
StudentVbreaksVdownVaVcommunicationVtoVdis gVstatement:VAllVcontractsVdoVnotVnee
coverVtheVhiddenVstructureVasVwellVasVassum dVtoVbeVinVwritingVtoVbeVenforceable.
ptions. • BreakVdownVaVparticularVjudge‘sVopinionV
to
understandVtheVassumptionsVtheVjudgeVisV
making.
Synthesis • ExplainVhowVtwoVparticularVschoolsVofVl
StudentVcreativelyVcombinesVelementsVandVpa egalVinterpretationVareVrelated.
rtsVtoVformVaVwholeVnewVstructure. • MakeVaVconnectionVbetweenVduressV
andVinsanity.
Evaluation • IdentifyVandVexplainVaVreasoningVflawVi
HighestVlevelVofVlearning.VStudentVmakesVaV nVtheVjudge‘sVargument.
criticalVjudgmentVaboutVtheVvalueVofVthe • EvaluateVtheVfollowingVstatement:



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©V2021VMcGraw-
HillVEducation.VAllVrightsVreserved.VNoVreproductionVorVdistributionVwithoutVtheVpriorVwrittenVconsentVofVMcGraw-
V HillVEducation.