Chapterj04j-jAdministrativejLaw
INSTRUCTOR MANUAL FOR j j
DynamicjBusinessjLawjThejEssentialsj6ejKubasek
Chapterj1-25
Chapterj1j-jAnjIntroductionjtojDynamicjBusinessjLaw
CHAPTERjOVERVIEW
ChapterjOnejlaysjthejfoundationjforjthejtextbook.jMakejsurejyoujlookjonjthejpublisher‘sjwebjsitejforjinform
ationjaboutjhowjbusinessjlawjintersectsjwithjthejsixjfunctionaljareasjofjbusiness.jThejauthorsjencouragejstud
entsjtoj―connectjtojthejcore,‖jandjrememberjthejwaysjinjwhichjlawjintersectsjwithjotherjareasjofjstudy,jinclu
dingjcorporatejmanagement,jproductionjandjtransportation,jmarketing,jresearchjandjdevelopment,jaccounti
ngjandjfinance,jandjhumanjresourcejmanagement.
Thisjmanualjsupportsjthej―connectingjtojthejcore‖jthemejbyjgivingjideasjforjassignmentsjthatjencouragejstu
dentsjtojintegratejtheirjbusinessjlawjknowledgejwithjknowledgejtheyjarejacquiringjfromjtheirjotherjbusinessj
classes.jThejmanualjalsojencouragesjprofessorsjtojimprovejtheirjteachingjskills.jFinally,jthejmanualjsuggests
jteachingjideasjforjbothjbeginningjandjexperiencedjteachers.
LEARNINGjOBJECTIVES
Afterjreadingjthisjchapter,jstudentsjwilljbejablejto:
1-1 Definejbusinessjlaw.
1-2 Relatejthejfunctionaljareasjofjbusinessjtojthejrelevantjareasjofjbusinessjlawj1-
3jRecalljthejpurposesjofjlaw.
1-4 Distinguishjamongjtypesjofjlaw.
1-5 Differentiatejbetweenjsourcesjofjthejlaw.
1-6 Identifyjthejvariousjschoolsjofjjurisprudence.
LECTUREjNOTESjWITHjDEFINITIONS
Injthejnews… Teachingjtip:jForjeachjchapter,jconsiderjaskingjstudentsjtojrelatejcurrentjnewsjite
msjtojmaterialjfromjthejchapter.
Injadditionjtojideasjstudentsjcomejupjwithjonjtheirjown,jconsiderjweavingjinj newsj
storiesjprovidedjbyjthejMcGrawjHill.
ForjChapterjOne,jMcGrawjHilljoffersjthejfollowingjstories:
―Smokingj Ban:j Tobaccoj Tyrants:j Gonej Tooj Far?j Manyj Statesj Arej PuttingjStr
ongerjRestrictionsjonjWherejYoujCanjSmoke‖
• Havejstatesjgonejtoojfarjinjbanningjsmoking?
4-1
©jMcGrawjHilljLLC.jAlljrightsjreserved.jNojreproductionjorjdistributionjwithoutjthejpriorjwrittenjconsentjofjMcGrawjHilljLLC.
,Chapterj04-AdministrativejLaw
• Whosej interestsj arej statej legislaturesj lookingj outj forj inj banningjs
moking?
―CollegejOfficerjDealingsjWithjLendersjScrutinized.‖
• Shouldjregulatorsjtakejajmorejcarefuljlookjatjcollegejofficers?
• Whyjcreatedjchangesjinjthejwaysjcollegejofficersjinteractjwithjlenders?
1- Businessj lawj consistsj ofj thej enforceablej rulesj ofj conductj thatj governjco
1j Definej businessjlaw mmercialjrelationships.
.
1- Businessjlawjappliesjtojthejsixjfunctionaljareasjofjbusiness:
2jRelatejthejfunctiona • Corporatejmanagement
ljareasjofjbusinessjtojt • Productionjandjtransportation
hejrelevantjareasjofjb
usinessjlaw. • Marketing
• Researchjandjdevelopment
• Accountingjandjfinance
• Humanjresourcejmanagement
1- • Providingjorder
3jRecalljthejpur • Servingjasjanjalternativejtojfighting
posesjofjlaw. • Facilitatingjajsensejthatjchangejisjpossible
• Encouragingjsocialjjustice
• Guaranteeingjpersonaljfreedoms
• Servingjasjajmoraljguide
1- Onejwayjtojclassifyjlaw:
4jDistinguishjamongjt Privatejlawjinvolvesjdisputesjbetweenjprivatejindividualsjorjgroups.
ypesjofjlaw. Publicjlawjinvolvesjdisputesjbetweenjprivatejindividualsjorjgroupsjandjtheirj gove
rnment.
Ajsecondjwayjtojclassifyjlaw:
Civilj lawj involvesj thej rightsj andj responsibilitiesj involvedj inj relationshipsjbet
weenjpersonsjandjbetweenjpersonsjandjtheirjgovernment.
Criminaljlawjinvolvesjincidentsjinjwhichjsomeonejcommitsjanjactjagainstjthejpub
licjasjajunit.
Teachingj tip:j Askj studentsj toj givej anj examplej ofj aj factj situationj thatj ledj tojbot
hjcriminaljandjciviljlawsuits,je.g.,jthejO.J.jSimpsonjtrials.
1- Sourcesjofjbusinessjlawjare:
5jDifferentiatejbetwe 1. Constitutions
enjsourcesjofjthejlaw. Constitutionaljlawjrefersjtojthejgeneraljlimitsjandjpowersjofjgovernmentsjasjstate
djinjtheirjwrittenjconstitutions.
2. Statutesjorjlegislativejactions
3. Cases
Casejlawj (orjcommonjlaw)jisjthejcollectionjofjlegaljinterpretationsjmadejbyj judg
es.
Starejdecisisjmeansjcourtsjarejrelyingjonjprecedent.
Teachingj tip:j Thej firstj timej yourj studentsj encounterj anj appellatej casej inj the
4-2
©jMcGrawjHilljLLC.jAlljrightsjreserved.jNojreproductionjorjdistributionjwithoutjthejpriorjwrittenjconsentjofjMcGrawjHilljLLC.
,Chapterj04j-jAdministrativejLaw
readings,jshowjthemjwhatjstarejdecisisjlooksjlikejinjthejcontextjofjajrealjcase.
4. Administrativejlaw
Administrativej lawj isj thej collectionj ofj rulesj andj decisionsj madej byjadm
inistrativejagencies.
5. Treaties
Aj treatyj isj aj bindingj agreementj betweenj twoj statesj orj internationalj orga
nizations.
6.j j Executivejorders
Anj executivej orderj isj aj directivej thatj comesj fromj thej presidentj orj statej gove
rnor.
1- Schoolsjofjjurisprudencejarejcommonjguidesjtojlegaljinterpretation.
6jIdentifyjthejvariousj • Naturalj law—certainj ethicalj lawsj andj principlesj arej morallyj rightj and
schoolsjofjjurispruden ―above‖jthejlawsjdevisedjbyjhumans.
ce.
• Legalj Positivism—
assumesj thej legitimatej politicalj authorityj deservesjourjobediencejwhenji
tjissuesjajrule.
• IdentificationjwithjthejVulnerable—
emphasisjonjfairnessjandjlookingjoutjforjthosejwithjthejleastjpower.
• HistoricaljSchool/Tradition—emphasisjonjthejusejofjstarejdecisis.
• LegaljRealism—judgesjconsiderjsocialjandjeconomicjconditions.
• Cost-benefitj Analysis—
makej calculationsj toj maximizej thej ratioj ofjbenefitsjtojcosts.
Teachingj tip:j Considerj usingj ―Thej Casej ofj thej Spelunceanj Explorersj (linkjbe
low)jtojmakejthejschoolsjofjjurisprudencejcomejalive.
GlobaljandjComp Atjthisjpointjinjthejtextbook,jstudentsjshouldjmerelyjhavejanjawarenessjthatjgloba
arativejLaw lizationjhasjaffectedjthejscopejofjbusinessjlaw.jConsequently,jwejhighlightjthejde
finitionsjtojthejfollowingjkeyjtermsjthatjwilljcomejupjlaterjinj thejbook:
• Trade,ji.e.jthejexchangejofjgoodsjorjservices,jonjajglobaljscalejhasjledj tojt
hejcreationjofjtradejagreementsjthatjservejasjdejfactojrulesjgoverningjthejg
lobaljbusinessjenvironment.
• Comparativejlaw—
thejfieldjofjlawjthatjstudiesjandjcomparesjlawsjinjdifferentjcountries.
AppendixjonjCriticalj Criticaljthinkingjincludesjthejapplicationjofjevaluativejstandardsjtojassessjthejqua
ThinkingjandjBusines lityjorjthejreasoningjbeingjofferedjtojsupportjthejconclusion.jCriticaljthinkersjwill
s jfollowjthisjpatternjofjcarefuljthinkingjwhenjtheyjreadjanj argument:
1. Findjthejfacts.
2. Lookjforjthejissue.
3. Identifyjthejjudge‘sjreasonsjandjconclusion.
4. Locatejinjthejdecisionjthejrulesjofjlawjthatjgovernjthejjudge‘sjreasoning.
5. Applyjcriticaljthinkingjtojthejreasoning.jEvaluatejthejreasoning.
• Lookjforjpotentialjambiguity.
• Considerjthejstrengthjofjanalogies.
4-3
©jMcGrawjHilljLLC.jAlljrightsjreserved.jNojreproductionjorjdistributionjwithoutjthejpriorjwrittenjconsentjofjMcGrawjHilljLLC.
, Chapterj04-AdministrativejLaw
• Checkjthejqualityjofjthejjudge‘sjreasoning.
• Decidejwhetherjimportantjinformationjisjmissing.
• Considerjthejpossibilityjofjrivaljcauses.
TEACHINGjSKILLS:jBLOOM’SjTAXONOMYjSETSjTHEjSTAGEjTOjTHINKjABOUTjTHEj
KINDSjOFjQUESTIONSjTOjASKjYOURjSTUDENTS
BenjaminjBloom,jinjhisjTaxonomyjofjEducationaljObjectives,*jdevelopedjajhierarchyjofjcognitivejfunction
s.jHisjworkjsetsjthejstagejforjteachersjtojunderstandjwhyjitjisjimportantjtojthinkjcarefullyjaboutjthejkindsjofjq
uestionsjtheyjaskjinjclass.
ThejObjective Samplejquestions
Knowledge • Whatjisjbusinessjlaw?
Lowestj levelj ofj learningj andj isj mostlyj memory.jTh • Whatj arej thej fourj elementsj ofj aj negligencejcl
ejstudentjrecognizesjandjrecallsjinformation. aim?
Comprehension • Whatj isj yourj understandingj ofj thej conceptj of
Lowest level of understanding. The starejdecisis?
studentjparaphrasesjorjexplainsjsomething. • Whatjdoesjyourjtextbookjmeanjbyjdeontology?
Application • Howj wouldj aj naturalj lawj thinkerj respondj tojt
Studentjdemonstratesjherjunderstandingjofjabstractjr hisjparticularjfactjpattern?
ules,jprinciples,jorjgeneralizationsjbyjusingjthemj toj • Usejajparticularjcasejrulejtojdeterminejwhetherjt
solvejlife-likejproblems. hejplaintiffjwilljbejsuccessfuljinjherjclaim.
Analysis • Providejthejreasoningjforjthejfollowingjstatemen
Studentjbreaksjdownjajcommunicationjtojdiscoverjthe t:jAlljcontractsjdojnotjneedjtojbejinjwritingjtojbej
jhiddenjstructurejasjwelljasjassumptions. enforceable.
• Breakjdownjajparticularjjudge‘sjopinionjtojunde
rstandjthejassumptionsjthejjudgejisjmaking.
Synthesis • Explain how two particular schools
Studentjcreativelyjcombinesjelementsjandjpartsjtojfor ofjjurisprudencejarejrelated.
mjajwholejnewjstructure. • Make a connection between duress
andjinsanity.
Evaluation • Identifyj andj explainj aj reasoningj flawj inj thejju
Highestj levelj ofj learning.j Studentj makesj aj critical dge‘sjargument.
*jBENJAMINjBLOOM,jTAXONOMYjOFjEDUCATIONALjOBJECTIVES:jTHEjCLASSIFICATIONj
OFjEDUCATIONALjGOALSj(1954).
4-4
©jMcGrawjHilljLLC.jAlljrightsjreserved.jNojreproductionjorjdistributionjwithoutjthejpriorjwrittenjconsentjofjMcGrawjHilljLLC.
INSTRUCTOR MANUAL FOR j j
DynamicjBusinessjLawjThejEssentialsj6ejKubasek
Chapterj1-25
Chapterj1j-jAnjIntroductionjtojDynamicjBusinessjLaw
CHAPTERjOVERVIEW
ChapterjOnejlaysjthejfoundationjforjthejtextbook.jMakejsurejyoujlookjonjthejpublisher‘sjwebjsitejforjinform
ationjaboutjhowjbusinessjlawjintersectsjwithjthejsixjfunctionaljareasjofjbusiness.jThejauthorsjencouragejstud
entsjtoj―connectjtojthejcore,‖jandjrememberjthejwaysjinjwhichjlawjintersectsjwithjotherjareasjofjstudy,jinclu
dingjcorporatejmanagement,jproductionjandjtransportation,jmarketing,jresearchjandjdevelopment,jaccounti
ngjandjfinance,jandjhumanjresourcejmanagement.
Thisjmanualjsupportsjthej―connectingjtojthejcore‖jthemejbyjgivingjideasjforjassignmentsjthatjencouragejstu
dentsjtojintegratejtheirjbusinessjlawjknowledgejwithjknowledgejtheyjarejacquiringjfromjtheirjotherjbusinessj
classes.jThejmanualjalsojencouragesjprofessorsjtojimprovejtheirjteachingjskills.jFinally,jthejmanualjsuggests
jteachingjideasjforjbothjbeginningjandjexperiencedjteachers.
LEARNINGjOBJECTIVES
Afterjreadingjthisjchapter,jstudentsjwilljbejablejto:
1-1 Definejbusinessjlaw.
1-2 Relatejthejfunctionaljareasjofjbusinessjtojthejrelevantjareasjofjbusinessjlawj1-
3jRecalljthejpurposesjofjlaw.
1-4 Distinguishjamongjtypesjofjlaw.
1-5 Differentiatejbetweenjsourcesjofjthejlaw.
1-6 Identifyjthejvariousjschoolsjofjjurisprudence.
LECTUREjNOTESjWITHjDEFINITIONS
Injthejnews… Teachingjtip:jForjeachjchapter,jconsiderjaskingjstudentsjtojrelatejcurrentjnewsjite
msjtojmaterialjfromjthejchapter.
Injadditionjtojideasjstudentsjcomejupjwithjonjtheirjown,jconsiderjweavingjinj newsj
storiesjprovidedjbyjthejMcGrawjHill.
ForjChapterjOne,jMcGrawjHilljoffersjthejfollowingjstories:
―Smokingj Ban:j Tobaccoj Tyrants:j Gonej Tooj Far?j Manyj Statesj Arej PuttingjStr
ongerjRestrictionsjonjWherejYoujCanjSmoke‖
• Havejstatesjgonejtoojfarjinjbanningjsmoking?
4-1
©jMcGrawjHilljLLC.jAlljrightsjreserved.jNojreproductionjorjdistributionjwithoutjthejpriorjwrittenjconsentjofjMcGrawjHilljLLC.
,Chapterj04-AdministrativejLaw
• Whosej interestsj arej statej legislaturesj lookingj outj forj inj banningjs
moking?
―CollegejOfficerjDealingsjWithjLendersjScrutinized.‖
• Shouldjregulatorsjtakejajmorejcarefuljlookjatjcollegejofficers?
• Whyjcreatedjchangesjinjthejwaysjcollegejofficersjinteractjwithjlenders?
1- Businessj lawj consistsj ofj thej enforceablej rulesj ofj conductj thatj governjco
1j Definej businessjlaw mmercialjrelationships.
.
1- Businessjlawjappliesjtojthejsixjfunctionaljareasjofjbusiness:
2jRelatejthejfunctiona • Corporatejmanagement
ljareasjofjbusinessjtojt • Productionjandjtransportation
hejrelevantjareasjofjb
usinessjlaw. • Marketing
• Researchjandjdevelopment
• Accountingjandjfinance
• Humanjresourcejmanagement
1- • Providingjorder
3jRecalljthejpur • Servingjasjanjalternativejtojfighting
posesjofjlaw. • Facilitatingjajsensejthatjchangejisjpossible
• Encouragingjsocialjjustice
• Guaranteeingjpersonaljfreedoms
• Servingjasjajmoraljguide
1- Onejwayjtojclassifyjlaw:
4jDistinguishjamongjt Privatejlawjinvolvesjdisputesjbetweenjprivatejindividualsjorjgroups.
ypesjofjlaw. Publicjlawjinvolvesjdisputesjbetweenjprivatejindividualsjorjgroupsjandjtheirj gove
rnment.
Ajsecondjwayjtojclassifyjlaw:
Civilj lawj involvesj thej rightsj andj responsibilitiesj involvedj inj relationshipsjbet
weenjpersonsjandjbetweenjpersonsjandjtheirjgovernment.
Criminaljlawjinvolvesjincidentsjinjwhichjsomeonejcommitsjanjactjagainstjthejpub
licjasjajunit.
Teachingj tip:j Askj studentsj toj givej anj examplej ofj aj factj situationj thatj ledj tojbot
hjcriminaljandjciviljlawsuits,je.g.,jthejO.J.jSimpsonjtrials.
1- Sourcesjofjbusinessjlawjare:
5jDifferentiatejbetwe 1. Constitutions
enjsourcesjofjthejlaw. Constitutionaljlawjrefersjtojthejgeneraljlimitsjandjpowersjofjgovernmentsjasjstate
djinjtheirjwrittenjconstitutions.
2. Statutesjorjlegislativejactions
3. Cases
Casejlawj (orjcommonjlaw)jisjthejcollectionjofjlegaljinterpretationsjmadejbyj judg
es.
Starejdecisisjmeansjcourtsjarejrelyingjonjprecedent.
Teachingj tip:j Thej firstj timej yourj studentsj encounterj anj appellatej casej inj the
4-2
©jMcGrawjHilljLLC.jAlljrightsjreserved.jNojreproductionjorjdistributionjwithoutjthejpriorjwrittenjconsentjofjMcGrawjHilljLLC.
,Chapterj04j-jAdministrativejLaw
readings,jshowjthemjwhatjstarejdecisisjlooksjlikejinjthejcontextjofjajrealjcase.
4. Administrativejlaw
Administrativej lawj isj thej collectionj ofj rulesj andj decisionsj madej byjadm
inistrativejagencies.
5. Treaties
Aj treatyj isj aj bindingj agreementj betweenj twoj statesj orj internationalj orga
nizations.
6.j j Executivejorders
Anj executivej orderj isj aj directivej thatj comesj fromj thej presidentj orj statej gove
rnor.
1- Schoolsjofjjurisprudencejarejcommonjguidesjtojlegaljinterpretation.
6jIdentifyjthejvariousj • Naturalj law—certainj ethicalj lawsj andj principlesj arej morallyj rightj and
schoolsjofjjurispruden ―above‖jthejlawsjdevisedjbyjhumans.
ce.
• Legalj Positivism—
assumesj thej legitimatej politicalj authorityj deservesjourjobediencejwhenji
tjissuesjajrule.
• IdentificationjwithjthejVulnerable—
emphasisjonjfairnessjandjlookingjoutjforjthosejwithjthejleastjpower.
• HistoricaljSchool/Tradition—emphasisjonjthejusejofjstarejdecisis.
• LegaljRealism—judgesjconsiderjsocialjandjeconomicjconditions.
• Cost-benefitj Analysis—
makej calculationsj toj maximizej thej ratioj ofjbenefitsjtojcosts.
Teachingj tip:j Considerj usingj ―Thej Casej ofj thej Spelunceanj Explorersj (linkjbe
low)jtojmakejthejschoolsjofjjurisprudencejcomejalive.
GlobaljandjComp Atjthisjpointjinjthejtextbook,jstudentsjshouldjmerelyjhavejanjawarenessjthatjgloba
arativejLaw lizationjhasjaffectedjthejscopejofjbusinessjlaw.jConsequently,jwejhighlightjthejde
finitionsjtojthejfollowingjkeyjtermsjthatjwilljcomejupjlaterjinj thejbook:
• Trade,ji.e.jthejexchangejofjgoodsjorjservices,jonjajglobaljscalejhasjledj tojt
hejcreationjofjtradejagreementsjthatjservejasjdejfactojrulesjgoverningjthejg
lobaljbusinessjenvironment.
• Comparativejlaw—
thejfieldjofjlawjthatjstudiesjandjcomparesjlawsjinjdifferentjcountries.
AppendixjonjCriticalj Criticaljthinkingjincludesjthejapplicationjofjevaluativejstandardsjtojassessjthejqua
ThinkingjandjBusines lityjorjthejreasoningjbeingjofferedjtojsupportjthejconclusion.jCriticaljthinkersjwill
s jfollowjthisjpatternjofjcarefuljthinkingjwhenjtheyjreadjanj argument:
1. Findjthejfacts.
2. Lookjforjthejissue.
3. Identifyjthejjudge‘sjreasonsjandjconclusion.
4. Locatejinjthejdecisionjthejrulesjofjlawjthatjgovernjthejjudge‘sjreasoning.
5. Applyjcriticaljthinkingjtojthejreasoning.jEvaluatejthejreasoning.
• Lookjforjpotentialjambiguity.
• Considerjthejstrengthjofjanalogies.
4-3
©jMcGrawjHilljLLC.jAlljrightsjreserved.jNojreproductionjorjdistributionjwithoutjthejpriorjwrittenjconsentjofjMcGrawjHilljLLC.
, Chapterj04-AdministrativejLaw
• Checkjthejqualityjofjthejjudge‘sjreasoning.
• Decidejwhetherjimportantjinformationjisjmissing.
• Considerjthejpossibilityjofjrivaljcauses.
TEACHINGjSKILLS:jBLOOM’SjTAXONOMYjSETSjTHEjSTAGEjTOjTHINKjABOUTjTHEj
KINDSjOFjQUESTIONSjTOjASKjYOURjSTUDENTS
BenjaminjBloom,jinjhisjTaxonomyjofjEducationaljObjectives,*jdevelopedjajhierarchyjofjcognitivejfunction
s.jHisjworkjsetsjthejstagejforjteachersjtojunderstandjwhyjitjisjimportantjtojthinkjcarefullyjaboutjthejkindsjofjq
uestionsjtheyjaskjinjclass.
ThejObjective Samplejquestions
Knowledge • Whatjisjbusinessjlaw?
Lowestj levelj ofj learningj andj isj mostlyj memory.jTh • Whatj arej thej fourj elementsj ofj aj negligencejcl
ejstudentjrecognizesjandjrecallsjinformation. aim?
Comprehension • Whatj isj yourj understandingj ofj thej conceptj of
Lowest level of understanding. The starejdecisis?
studentjparaphrasesjorjexplainsjsomething. • Whatjdoesjyourjtextbookjmeanjbyjdeontology?
Application • Howj wouldj aj naturalj lawj thinkerj respondj tojt
Studentjdemonstratesjherjunderstandingjofjabstractjr hisjparticularjfactjpattern?
ules,jprinciples,jorjgeneralizationsjbyjusingjthemj toj • Usejajparticularjcasejrulejtojdeterminejwhetherjt
solvejlife-likejproblems. hejplaintiffjwilljbejsuccessfuljinjherjclaim.
Analysis • Providejthejreasoningjforjthejfollowingjstatemen
Studentjbreaksjdownjajcommunicationjtojdiscoverjthe t:jAlljcontractsjdojnotjneedjtojbejinjwritingjtojbej
jhiddenjstructurejasjwelljasjassumptions. enforceable.
• Breakjdownjajparticularjjudge‘sjopinionjtojunde
rstandjthejassumptionsjthejjudgejisjmaking.
Synthesis • Explain how two particular schools
Studentjcreativelyjcombinesjelementsjandjpartsjtojfor ofjjurisprudencejarejrelated.
mjajwholejnewjstructure. • Make a connection between duress
andjinsanity.
Evaluation • Identifyj andj explainj aj reasoningj flawj inj thejju
Highestj levelj ofj learning.j Studentj makesj aj critical dge‘sjargument.
*jBENJAMINjBLOOM,jTAXONOMYjOFjEDUCATIONALjOBJECTIVES:jTHEjCLASSIFICATIONj
OFjEDUCATIONALjGOALSj(1954).
4-4
©jMcGrawjHilljLLC.jAlljrightsjreserved.jNojreproductionjorjdistributionjwithoutjthejpriorjwrittenjconsentjofjMcGrawjHilljLLC.
