Solution Manual
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Dynamic Business Law, 6th Edition
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By Nancy Kubasek
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,Chapter 1 - An Introduction to Dynamic Business Law
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CHAPTER OVERVIEW q
Chapter One lays the foundation for the textbook. Make sure you look on the publisher‘s web site for
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information about how business law intersects with the six functional areas of business. The authors encourage
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students to ―connect to the core,‖ and remember the ways in which law intersects with other areas of study,
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including corporate management, production and transportation, marketing, research and development,
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accounting and finance, and human resource management.
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This manual supports the ―connecting to the core‖ theme by giving ideas for assignments that encourage
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students to integrate their business law knowledge with knowledge they are acquiring from their other business
q q q q q q q q q q q q q q q q
classes. The manual also encourages professors to improve their teaching skills. Finally, the manual suggests
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teaching ideas for both beginning and experienced teachers.
q q q q q q q q
LEARNING OBJECTIVES q
After reading this chapter, students will be able to:
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1-1 Define business law. q q
1-2 Relate the functional areas of business to the relevant areas of business law1-3
q q q q q q q q q q q q q
Recall the purposes of law.
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1-4 Distinguish among types of law. q q q q
1-5 Differentiate between sources of the law. q q q q q
1-6 Identify the various schools of jurisprudence.
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LECTURE NOTES WITH DEFINITIONS q q q
In the news…
q q Teaching tip: For each chapter, consider asking students to relate current news
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items to material from the chapter.
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In addition to ideas students come up with on their own, consider weaving in
q q q q q q q q q q q q q
news stories provided by the McGraw Hill.
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For Chapter One, McGraw Hill offers the following stories:
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―Smoking Ban: Tobacco Tyrants: Gone Too Far? Many States Are PuttingStronger
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Restrictions on Where You Can Smoke‖
q q q q q q
• Have states gone too far in banning smoking? q q q q q q q
, • Whose interests are state legislatures looking out for in banning
q q q q q q q q q
smoking?
q
―College Officer Dealings With Lenders Scrutinized.‖
q q q q q
• Should regulators take a more careful look at college officers? q q q q q q q q q
• Why created changes in the ways college officers interact with lenders?
q q q q q q q q q q
1-1 Define business
q q Business law consists of the enforceable rules of conduct that govern
q q q q q q q q q q
law.
q commercial relationships.
q q
1-2 Relate the
q q Business law applies to the six functional areas of business:
q q q q q q q q q
qfunctional areas of q q
• Corporate management q
business to the
• Production and transportation
q q q
qrelevant areas of
q q
q q
qbusiness law. q
• Marketing
• Research and development q q
• Accounting and finance q q
• Human resource management q q
1-3 Recall the
q q • Providing order q
purposes of law.
q q q
• Serving as an alternative to fighting q q q q q
• Facilitating a sense that change is possible q q q q q q
• Encouraging social justice q q
• Guaranteeing personal freedoms q q
• Serving as a moral guide q q q q
1-4 Distinguish
q One way to classify law:
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among types of law.
q q q q
Private law involves disputes between private individuals or groups.
q q q q q q q q
Public law involves disputes between private individuals or groups and their
q q q q q q q q q q
government.
q
A second way to classify law:
q q q q q
Civil law involves the rights and responsibilities involved in relationshipsbetween
q q q q q q q q q q
persons and between persons and their government.
q q q q q q q
Criminal law involves incidents in which someone commits an act against the
q q q q q q q q q q q
public as a unit.
q q q q
Teaching tip: Ask students to give an example of a fact situation that led to
q q q q q q q q q q q q q q
both criminal and civil lawsuits, e.g., the O.J. Simpson trials.
q q q q q q q q q q
1-5 Differentiate
q Sources of business law are: q q q q
between sources of
q q q
1. Constitutions
the law.
q q
Constitutional law refers to the general limits and powers of governments as q q q q q q q q q q q
stated in their written constitutions.
q q q q q
2. Statutes or legislative actions q q q
3. Cases
Case law (or common law) is the collection of legal interpretations made by
q q q q q q q q q q q q
judges.
q
Stare decisis means courts are relying on precedent.
q q q q q q q
Teaching tip: The first time your students encounter an appellate case in the
q q q q q q q q q q q q
, readings, show them what stare decisis looks like in the context of a real case.
q q q q q q q q q q q q q q
4. Administrative law q
Administrative law is the collection of rules and decisions made by q q q q q q q q q q
administrative agencies.
q q
5. Treaties
A treaty is a binding agreement between two states or international
q q q q q q q q q q
organizations.
q
6. Executive orders
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An executive order is a directive that comes from the president or stategovernor.
q q q q q q q q q q q q q
1-6 Identify the
q q Schools of jurisprudence are common guides to legal interpretation.
q q q q q q q q
qvarious schools of
q q
• Natural law—certain ethical laws and principles are morally right and q q q q q q q q q
jurisprudence.
q
―above‖ the laws devised by humans. q q q q q
• Legal Positivism—assumes the legitimate political authority deserves
q q q q q q
our obedience when it issues a rule.
q q q q q q q
• Identification with the Vulnerable—emphasis on fairness and looking q q q q q q q
out for those with the least power.
q q q q q q q
• Historical School/Tradition—emphasis on the use of stare decisis. q q q q q q q
• Legal Realism—judges consider social and economic conditions. q q q q q q
• Cost-benefit Analysis—make calculations to maximize the ratio of q q q q q q q
benefits to costs.
q q q
Teaching tip: Consider using ―The Case of the Speluncean Explorers (link below)
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to make the schools of jurisprudence come alive.
q q q q q q q q
Global and
q At this point in the textbook, students should merely have an awareness that
q q q q q q q q q q q q
Comparative Law
q q globalization has affected the scope of business law. Consequently, we highlight
q q q q q q q q q q q
the definitions to the following key terms that will come up later in the book:
q q q q q q q q q q q q q q q
• Trade, i.e. the exchange of goods or services, on a global scale has ledto
q q q q q q q q q q q q q q
the creation of trade agreements that serve as de facto rules governing the
q q q q q q q q q q q q q
global business environment.
q q q
• Comparative law—the field of law that studies and compares laws in q q q q q q q q q q
different countries.
q q
Appendix on Criticalq q Critical thinking includes the application of evaluative standards to assess the quality
q q q q q q q q q q q
Thinking and
q q or the reasoning being offered to support the conclusion. Critical thinkers will
q q q q q q q q q q q q
Business
q follow this pattern of careful thinking when they read an argument:
q q q q q q q q q q q
1. Find the facts. q q
2. Look for the issue. q q q
3. Identify the judge‘s reasons and conclusion. q q q q q
4. Locate in the decision the rules of law that govern the judge‘s reasoning.
q q q q q q q q q q q q
5. Apply critical thinking to the reasoning. Evaluate the reasoning.
q q q q q q q q
• Look for potential ambiguity. q q q
• Consider the strength of analogies. q q q q
q q
Dynamic Business Law, 6th Edition
q q q q
By Nancy Kubasek
q q q
,Chapter 1 - An Introduction to Dynamic Business Law
q q q q q q q q
CHAPTER OVERVIEW q
Chapter One lays the foundation for the textbook. Make sure you look on the publisher‘s web site for
q q q q q q q q q q q q q q q q q
information about how business law intersects with the six functional areas of business. The authors encourage
q q q q q q q q q q q q q q q q
students to ―connect to the core,‖ and remember the ways in which law intersects with other areas of study,
q q q q q q q q q q q q q q q q q q q
including corporate management, production and transportation, marketing, research and development,
q q q q q q q q q q
accounting and finance, and human resource management.
q q q q q q q
This manual supports the ―connecting to the core‖ theme by giving ideas for assignments that encourage
q q q q q q q q q q q q q q q
students to integrate their business law knowledge with knowledge they are acquiring from their other business
q q q q q q q q q q q q q q q q
classes. The manual also encourages professors to improve their teaching skills. Finally, the manual suggests
q q q q q q q q q q q q q q q
teaching ideas for both beginning and experienced teachers.
q q q q q q q q
LEARNING OBJECTIVES q
After reading this chapter, students will be able to:
q q q q q q q q
1-1 Define business law. q q
1-2 Relate the functional areas of business to the relevant areas of business law1-3
q q q q q q q q q q q q q
Recall the purposes of law.
q q q q q
1-4 Distinguish among types of law. q q q q
1-5 Differentiate between sources of the law. q q q q q
1-6 Identify the various schools of jurisprudence.
q q q q q
LECTURE NOTES WITH DEFINITIONS q q q
In the news…
q q Teaching tip: For each chapter, consider asking students to relate current news
q q q q q q q q q q q
items to material from the chapter.
q q q q q q
In addition to ideas students come up with on their own, consider weaving in
q q q q q q q q q q q q q
news stories provided by the McGraw Hill.
q q q q q q q
For Chapter One, McGraw Hill offers the following stories:
q q q q q q q q
―Smoking Ban: Tobacco Tyrants: Gone Too Far? Many States Are PuttingStronger
q q q q q q q q q q q
Restrictions on Where You Can Smoke‖
q q q q q q
• Have states gone too far in banning smoking? q q q q q q q
, • Whose interests are state legislatures looking out for in banning
q q q q q q q q q
smoking?
q
―College Officer Dealings With Lenders Scrutinized.‖
q q q q q
• Should regulators take a more careful look at college officers? q q q q q q q q q
• Why created changes in the ways college officers interact with lenders?
q q q q q q q q q q
1-1 Define business
q q Business law consists of the enforceable rules of conduct that govern
q q q q q q q q q q
law.
q commercial relationships.
q q
1-2 Relate the
q q Business law applies to the six functional areas of business:
q q q q q q q q q
qfunctional areas of q q
• Corporate management q
business to the
• Production and transportation
q q q
qrelevant areas of
q q
q q
qbusiness law. q
• Marketing
• Research and development q q
• Accounting and finance q q
• Human resource management q q
1-3 Recall the
q q • Providing order q
purposes of law.
q q q
• Serving as an alternative to fighting q q q q q
• Facilitating a sense that change is possible q q q q q q
• Encouraging social justice q q
• Guaranteeing personal freedoms q q
• Serving as a moral guide q q q q
1-4 Distinguish
q One way to classify law:
q q q q
among types of law.
q q q q
Private law involves disputes between private individuals or groups.
q q q q q q q q
Public law involves disputes between private individuals or groups and their
q q q q q q q q q q
government.
q
A second way to classify law:
q q q q q
Civil law involves the rights and responsibilities involved in relationshipsbetween
q q q q q q q q q q
persons and between persons and their government.
q q q q q q q
Criminal law involves incidents in which someone commits an act against the
q q q q q q q q q q q
public as a unit.
q q q q
Teaching tip: Ask students to give an example of a fact situation that led to
q q q q q q q q q q q q q q
both criminal and civil lawsuits, e.g., the O.J. Simpson trials.
q q q q q q q q q q
1-5 Differentiate
q Sources of business law are: q q q q
between sources of
q q q
1. Constitutions
the law.
q q
Constitutional law refers to the general limits and powers of governments as q q q q q q q q q q q
stated in their written constitutions.
q q q q q
2. Statutes or legislative actions q q q
3. Cases
Case law (or common law) is the collection of legal interpretations made by
q q q q q q q q q q q q
judges.
q
Stare decisis means courts are relying on precedent.
q q q q q q q
Teaching tip: The first time your students encounter an appellate case in the
q q q q q q q q q q q q
, readings, show them what stare decisis looks like in the context of a real case.
q q q q q q q q q q q q q q
4. Administrative law q
Administrative law is the collection of rules and decisions made by q q q q q q q q q q
administrative agencies.
q q
5. Treaties
A treaty is a binding agreement between two states or international
q q q q q q q q q q
organizations.
q
6. Executive orders
q q
An executive order is a directive that comes from the president or stategovernor.
q q q q q q q q q q q q q
1-6 Identify the
q q Schools of jurisprudence are common guides to legal interpretation.
q q q q q q q q
qvarious schools of
q q
• Natural law—certain ethical laws and principles are morally right and q q q q q q q q q
jurisprudence.
q
―above‖ the laws devised by humans. q q q q q
• Legal Positivism—assumes the legitimate political authority deserves
q q q q q q
our obedience when it issues a rule.
q q q q q q q
• Identification with the Vulnerable—emphasis on fairness and looking q q q q q q q
out for those with the least power.
q q q q q q q
• Historical School/Tradition—emphasis on the use of stare decisis. q q q q q q q
• Legal Realism—judges consider social and economic conditions. q q q q q q
• Cost-benefit Analysis—make calculations to maximize the ratio of q q q q q q q
benefits to costs.
q q q
Teaching tip: Consider using ―The Case of the Speluncean Explorers (link below)
qq qq qq qq qq qq qq qq qq qq q
to make the schools of jurisprudence come alive.
q q q q q q q q
Global and
q At this point in the textbook, students should merely have an awareness that
q q q q q q q q q q q q
Comparative Law
q q globalization has affected the scope of business law. Consequently, we highlight
q q q q q q q q q q q
the definitions to the following key terms that will come up later in the book:
q q q q q q q q q q q q q q q
• Trade, i.e. the exchange of goods or services, on a global scale has ledto
q q q q q q q q q q q q q q
the creation of trade agreements that serve as de facto rules governing the
q q q q q q q q q q q q q
global business environment.
q q q
• Comparative law—the field of law that studies and compares laws in q q q q q q q q q q
different countries.
q q
Appendix on Criticalq q Critical thinking includes the application of evaluative standards to assess the quality
q q q q q q q q q q q
Thinking and
q q or the reasoning being offered to support the conclusion. Critical thinkers will
q q q q q q q q q q q q
Business
q follow this pattern of careful thinking when they read an argument:
q q q q q q q q q q q
1. Find the facts. q q
2. Look for the issue. q q q
3. Identify the judge‘s reasons and conclusion. q q q q q
4. Locate in the decision the rules of law that govern the judge‘s reasoning.
q q q q q q q q q q q q
5. Apply critical thinking to the reasoning. Evaluate the reasoning.
q q q q q q q q
• Look for potential ambiguity. q q q
• Consider the strength of analogies. q q q q
