Chapter 04 - Administrative Law
Instructor Manual For
Dynamic Business Law The Essentials 6e Kubasek
Chapter 1-25
Chapter 1 - An Introduction to Dynamic Business Law
CHAPTER OVERVIEW
Chapter One lays the foundation for the textbook. Make sure you look on the publisher‘s web site for
information about how business law intersects with the six functional areas of business. The authors
encourage students to ―connect to the core,‖ and remember the ways in which law intersects with other
areas of study, including corporate management, production and transportation, marketing, research and
development, accounting and finance, and human resource management.
This manual supports the ―connecting to the core‖ theme by giving ideas for assignments that encourage
students to integrate their business law knowledge with knowledge they are acquiring from their other
business classes. The manual also encourages professors to improve their teaching skills. Finally, the
manual suggests teaching ideas for both beginning and experienced teachers.
LEARNING OBJECTIVES
After reading this chapter, students will be able to:
1-1 Define business law.
1-2 Relate the functional areas of business to the relevant areas of business law
1-3 Recall the purposes of law.
1-4 Distinguish among types of law.
1-5 Differentiate between sources of the law.
1-6 Identify the various schools of jurisprudence.
LECTURE NOTES WITH DEFINITIONS
In the news… Teaching tip: For each chapter, consider asking students to relate current news
items to material from the chapter.
In addition to ideas students come up with on their own, consider weaving in
news stories provided by the McGraw Hill.
For Chapter One, McGraw Hill offers the following stories:
―Smoking Ban: Tobacco Tyrants: Gone Too Far? Many States Are Putting
Stronger Restrictions on Where You Can Smoke‖
Have states gone too far in banning smoking?
4-1
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
,Chapter 04-Administrative Law
Whose interests are state legislatures looking out for in banning
smoking?
―College Officer Dealings With Lenders Scrutinized.‖
Should regulators take a more careful look at college officers?
Why created changes in the ways college officers interact with lenders?
1-1 Define business Business law consists of the enforceable rules of conduct that govern
law. commercial relationships.
1-2 Relate the Business law applies to the six functional areas of business:
functional areas of Corporate management
business to the Production and transportation
relevant areas of
business law. Marketing
Research and development
Accounting and finance
Human resource management
1-3 Recall the Providing order
purposes of law. Serving as an alternative to fighting
Facilitating a sense that change is possible
Encouraging social justice
Guaranteeing personal freedoms
Serving as a moral guide
1-4 Distinguish One way to classify law:
among types of law. Private law involves disputes between private individuals or groups.
Public law involves disputes between private individuals or groups and their
government.
A second way to classify law:
Civil law involves the rights and responsibilities involved in relationships
between persons and between persons and their government.
Criminal law involves incidents in which someone commits an act against the
public as a unit.
Teaching tip: Ask students to give an example of a fact situation that led to
both criminal and civil lawsuits, e.g., the O.J. Simpson trials.
1-5 Differentiate Sources of business law are:
between sources of 1. Constitutions
the law. Constitutional law refers to the general limits and powers of governments as
stated in their written constitutions.
2. Statutes or legislative actions
3. Cases
Case law (or common law) is the collection of legal interpretations made by
judges.
Stare decisis means courts are relying on precedent.
Teaching tip: The first time your students encounter an appellate case in the
4-2
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
,Chapter 04 - Administrative Law
readings, show them what stare decisis looks like in the context of a real case.
4. Administrative law
Administrative law is the collection of rules and decisions made by
administrative agencies.
5. Treaties
A treaty is a binding agreement between two states or international
organizations.
6. Executive orders
An executive order is a directive that comes from the president or state
governor.
1-6 Identify the Schools of jurisprudence are common guides to legal interpretation.
various schools of Natural law—certain ethical laws and principles are morally right and
jurisprudence. ―above‖ the laws devised by humans.
Legal Positivism—assumes the legitimate political authority deserves
our obedience when it issues a rule.
Identification with the Vulnerable—emphasis on fairness and looking
out for those with the least power.
Historical School/Tradition—emphasis on the use of stare decisis.
Legal Realism—judges consider social and economic conditions.
Cost-benefit Analysis—make calculations to maximize the ratio of
benefits to costs.
Teaching tip: Consider using ―The Case of the Speluncean Explorers (link
below) to make the schools of jurisprudence come alive.
Global and At this point in the textbook, students should merely have an awareness that
Comparative Law globalization has affected the scope of business law. Consequently, we
highlight the definitions to the following key terms that will come up later in
the book:
Trade, i.e. the exchange of goods or services, on a global scale has led
to the creation of trade agreements that serve as de facto rules governing
the global business environment.
Comparative law—the field of law that studies and compares laws in
different countries.
Appendix on Critical Critical thinking includes the application of evaluative standards to assess the
Thinking and quality or the reasoning being offered to support the conclusion. Critical
Business thinkers will follow this pattern of careful thinking when they read an
argument:
1. Find the facts.
2. Look for the issue.
3. Identify the judge‘s reasons and conclusion.
4. Locate in the decision the rules of law that govern the judge‘s reasoning.
5. Apply critical thinking to the reasoning. Evaluate the reasoning.
Look for potential ambiguity.
Consider the strength of analogies.
4-3
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
,Chapter 04-Administrative Law
Check the quality of the judge‘s reasoning.
Decide whether important information is missing.
Consider the possibility of rival causes.
TEACHING SKILLS: BLOOM’S TAXONOMY SETS THE STAGE TO THINK ABOUT
THE KINDS OF QUESTIONS TO ASK YOUR STUDENTS
Benjamin Bloom, in his Taxonomy of Educational Objectives,* developed a hierarchy of cognitive
functions. His work sets the stage for teachers to understand why it is important to think carefully about
the kinds of questions they ask in class.
The Objective Sample questions
Knowledge What is business law?
Lowest level of learning and is mostly memory. What are the four elements of a negligence
The student recognizes and recalls information. claim?
Comprehension What is your understanding of the concept of
Lowest level of understanding. The student stare decisis?
paraphrases or explains something. What does your textbook mean by deontology?
Application How would a natural law thinker respond to
Student demonstrates her understanding of abstract this particular fact pattern?
rules, principles, or generalizations by using them Use a particular case rule to determine whether
to solve life-like problems. the plaintiff will be successful in her claim.
Analysis Provide the reasoning for the following
Student breaks down a communication to discover statement: All contracts do not need to be in
the hidden structure as well as assumptions. writing to be enforceable.
Break down a particular judge‘s opinion to
understand the assumptions the judge is
making.
Synthesis Explain how two particular schools of
Student creatively combines elements and parts to jurisprudence are related.
form a whole new structure. Make a connection between duress and
insanity.
Evaluation Identify and explain a reasoning flaw in the
Highest level of learning. Student makes a critical judge‘s argument.
* BENJAMIN BLOOM, TAXONOMY OF EDUCATIONAL OBJECTIVES: THE CLASSIFICATION
OF EDUCATIONAL GOALS (1954).
4-4
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
,Chapter 04 - Administrative Law
The Objective Sample questions
judgment about the value of the communication. Evaluate the following statement: Arbitration
and mediation are better forms of dispute
resolution than litigation.
TEACHING IDEAS
Connecting to the Core Consider asking students to keep a ―Connecting to the Core‖ journal.
Throughout the semester, students can relate concepts they are
learning in their business law class to material they are learning in
their other business courses.
Ask students to take one particular area of law (Use Exhibit 1-1 as the
basis for topic choices) and write a paper that explains intersections
between a particular area of law and at least one functional area of
business. For example, a student could choose consumer law and
write a paper that links a specific consumer law issue to content from
their marketing class.
Teaching Basics Explore web sites that offer information about teaching at the college level.
Harvard has a great center. Their center links you to other centers. If you are
a new teacher, make sure you look at this site‘s sample syllabi.
http://bokcenter.fas.harvard.edu/icb/icb.do
This syllabus tutorial at the University of Minnesota is great—it provides
sample language you can use.
http://www1.umn.edu/ohr/teachlearn/
Advanced Teaching Use the Case of the Speluncean Explorers to explore the schools of
jurisprudence. This hypothetical case explores the dilemma a trapped team of
five spelunkers faces when they have to decide whether to eat one of their
party in a quest to survive. Once rescued, the case considers whether the
surviving spelunkers are guilty of murder.
You can get a copy of the case of the Speluncean Explorers through this web
site:
http://en.wikipedia.org/wiki/The_Case_of_the_Speluncean_Explorers
Once you get a sense of the case itself, explore further to see what kinds of
questions you can ask in class.
http://www.earlham.edu/~peters/writing/cse.htm#assignments
A BEST PRACTICES TEACHING TIP
Peer-to-peer teaching. This teaching technique can help students engage more fully with new
concepts that are referenced in this textbook. Wilbert J. McKeachie states
that there are two favorable outcomes from having students play the role
4-5
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
, Chapter 04-Administrative Law
of a teacher:
1.) Peer-to-peer teaching can stimulate additional learning by the
student who is teaching, since teaching will require greater
preparation for class.
2.) Peer teaching facilitates the learning of those being taught by
hearing information from an individual other than the regular
teacher.
McKeachie notes that it is essential that faculty members supervise the
student-led teaching session, as this method of teaching may not be
useful if students do not take the task seriously. A substantial amount of
education research supports the value of this teaching practice. In a legal
education article, J.B. Biggs alludes to peer-to-peer teaching as among
the most effective teaching strategies for engaging student learning:
―The best answer to the question, 'What is the most effective
method of teaching?", is that it depends on the goal, the student,
the content, and the teacher. But the next best answer is,
"Students teaching other students." There is a wealth of evidence
that peer teaching is extremely effective for a wide range of goals,
content, and students of different levels and personalities‖ (144).
To read more about peer-to-peer teaching, see Wilbert J. McKeachie‘s
―Teaching Tips: A Guidebook for the Beginning College Teacher‖ or
J.B. Biggs‘ ―Teaching for Better Learning.‖
References:
Wilbert J. McKeachie, Teaching Tips: A Guidebook for the Beginning
College Teacher, 7th ed., 1978.
J.B. Biggs, Teaching for Better Learning, 2 Legal Educ. Rev. 133 (1990-
1991).
4-6
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Instructor Manual For
Dynamic Business Law The Essentials 6e Kubasek
Chapter 1-25
Chapter 1 - An Introduction to Dynamic Business Law
CHAPTER OVERVIEW
Chapter One lays the foundation for the textbook. Make sure you look on the publisher‘s web site for
information about how business law intersects with the six functional areas of business. The authors
encourage students to ―connect to the core,‖ and remember the ways in which law intersects with other
areas of study, including corporate management, production and transportation, marketing, research and
development, accounting and finance, and human resource management.
This manual supports the ―connecting to the core‖ theme by giving ideas for assignments that encourage
students to integrate their business law knowledge with knowledge they are acquiring from their other
business classes. The manual also encourages professors to improve their teaching skills. Finally, the
manual suggests teaching ideas for both beginning and experienced teachers.
LEARNING OBJECTIVES
After reading this chapter, students will be able to:
1-1 Define business law.
1-2 Relate the functional areas of business to the relevant areas of business law
1-3 Recall the purposes of law.
1-4 Distinguish among types of law.
1-5 Differentiate between sources of the law.
1-6 Identify the various schools of jurisprudence.
LECTURE NOTES WITH DEFINITIONS
In the news… Teaching tip: For each chapter, consider asking students to relate current news
items to material from the chapter.
In addition to ideas students come up with on their own, consider weaving in
news stories provided by the McGraw Hill.
For Chapter One, McGraw Hill offers the following stories:
―Smoking Ban: Tobacco Tyrants: Gone Too Far? Many States Are Putting
Stronger Restrictions on Where You Can Smoke‖
Have states gone too far in banning smoking?
4-1
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
,Chapter 04-Administrative Law
Whose interests are state legislatures looking out for in banning
smoking?
―College Officer Dealings With Lenders Scrutinized.‖
Should regulators take a more careful look at college officers?
Why created changes in the ways college officers interact with lenders?
1-1 Define business Business law consists of the enforceable rules of conduct that govern
law. commercial relationships.
1-2 Relate the Business law applies to the six functional areas of business:
functional areas of Corporate management
business to the Production and transportation
relevant areas of
business law. Marketing
Research and development
Accounting and finance
Human resource management
1-3 Recall the Providing order
purposes of law. Serving as an alternative to fighting
Facilitating a sense that change is possible
Encouraging social justice
Guaranteeing personal freedoms
Serving as a moral guide
1-4 Distinguish One way to classify law:
among types of law. Private law involves disputes between private individuals or groups.
Public law involves disputes between private individuals or groups and their
government.
A second way to classify law:
Civil law involves the rights and responsibilities involved in relationships
between persons and between persons and their government.
Criminal law involves incidents in which someone commits an act against the
public as a unit.
Teaching tip: Ask students to give an example of a fact situation that led to
both criminal and civil lawsuits, e.g., the O.J. Simpson trials.
1-5 Differentiate Sources of business law are:
between sources of 1. Constitutions
the law. Constitutional law refers to the general limits and powers of governments as
stated in their written constitutions.
2. Statutes or legislative actions
3. Cases
Case law (or common law) is the collection of legal interpretations made by
judges.
Stare decisis means courts are relying on precedent.
Teaching tip: The first time your students encounter an appellate case in the
4-2
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
,Chapter 04 - Administrative Law
readings, show them what stare decisis looks like in the context of a real case.
4. Administrative law
Administrative law is the collection of rules and decisions made by
administrative agencies.
5. Treaties
A treaty is a binding agreement between two states or international
organizations.
6. Executive orders
An executive order is a directive that comes from the president or state
governor.
1-6 Identify the Schools of jurisprudence are common guides to legal interpretation.
various schools of Natural law—certain ethical laws and principles are morally right and
jurisprudence. ―above‖ the laws devised by humans.
Legal Positivism—assumes the legitimate political authority deserves
our obedience when it issues a rule.
Identification with the Vulnerable—emphasis on fairness and looking
out for those with the least power.
Historical School/Tradition—emphasis on the use of stare decisis.
Legal Realism—judges consider social and economic conditions.
Cost-benefit Analysis—make calculations to maximize the ratio of
benefits to costs.
Teaching tip: Consider using ―The Case of the Speluncean Explorers (link
below) to make the schools of jurisprudence come alive.
Global and At this point in the textbook, students should merely have an awareness that
Comparative Law globalization has affected the scope of business law. Consequently, we
highlight the definitions to the following key terms that will come up later in
the book:
Trade, i.e. the exchange of goods or services, on a global scale has led
to the creation of trade agreements that serve as de facto rules governing
the global business environment.
Comparative law—the field of law that studies and compares laws in
different countries.
Appendix on Critical Critical thinking includes the application of evaluative standards to assess the
Thinking and quality or the reasoning being offered to support the conclusion. Critical
Business thinkers will follow this pattern of careful thinking when they read an
argument:
1. Find the facts.
2. Look for the issue.
3. Identify the judge‘s reasons and conclusion.
4. Locate in the decision the rules of law that govern the judge‘s reasoning.
5. Apply critical thinking to the reasoning. Evaluate the reasoning.
Look for potential ambiguity.
Consider the strength of analogies.
4-3
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
,Chapter 04-Administrative Law
Check the quality of the judge‘s reasoning.
Decide whether important information is missing.
Consider the possibility of rival causes.
TEACHING SKILLS: BLOOM’S TAXONOMY SETS THE STAGE TO THINK ABOUT
THE KINDS OF QUESTIONS TO ASK YOUR STUDENTS
Benjamin Bloom, in his Taxonomy of Educational Objectives,* developed a hierarchy of cognitive
functions. His work sets the stage for teachers to understand why it is important to think carefully about
the kinds of questions they ask in class.
The Objective Sample questions
Knowledge What is business law?
Lowest level of learning and is mostly memory. What are the four elements of a negligence
The student recognizes and recalls information. claim?
Comprehension What is your understanding of the concept of
Lowest level of understanding. The student stare decisis?
paraphrases or explains something. What does your textbook mean by deontology?
Application How would a natural law thinker respond to
Student demonstrates her understanding of abstract this particular fact pattern?
rules, principles, or generalizations by using them Use a particular case rule to determine whether
to solve life-like problems. the plaintiff will be successful in her claim.
Analysis Provide the reasoning for the following
Student breaks down a communication to discover statement: All contracts do not need to be in
the hidden structure as well as assumptions. writing to be enforceable.
Break down a particular judge‘s opinion to
understand the assumptions the judge is
making.
Synthesis Explain how two particular schools of
Student creatively combines elements and parts to jurisprudence are related.
form a whole new structure. Make a connection between duress and
insanity.
Evaluation Identify and explain a reasoning flaw in the
Highest level of learning. Student makes a critical judge‘s argument.
* BENJAMIN BLOOM, TAXONOMY OF EDUCATIONAL OBJECTIVES: THE CLASSIFICATION
OF EDUCATIONAL GOALS (1954).
4-4
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
,Chapter 04 - Administrative Law
The Objective Sample questions
judgment about the value of the communication. Evaluate the following statement: Arbitration
and mediation are better forms of dispute
resolution than litigation.
TEACHING IDEAS
Connecting to the Core Consider asking students to keep a ―Connecting to the Core‖ journal.
Throughout the semester, students can relate concepts they are
learning in their business law class to material they are learning in
their other business courses.
Ask students to take one particular area of law (Use Exhibit 1-1 as the
basis for topic choices) and write a paper that explains intersections
between a particular area of law and at least one functional area of
business. For example, a student could choose consumer law and
write a paper that links a specific consumer law issue to content from
their marketing class.
Teaching Basics Explore web sites that offer information about teaching at the college level.
Harvard has a great center. Their center links you to other centers. If you are
a new teacher, make sure you look at this site‘s sample syllabi.
http://bokcenter.fas.harvard.edu/icb/icb.do
This syllabus tutorial at the University of Minnesota is great—it provides
sample language you can use.
http://www1.umn.edu/ohr/teachlearn/
Advanced Teaching Use the Case of the Speluncean Explorers to explore the schools of
jurisprudence. This hypothetical case explores the dilemma a trapped team of
five spelunkers faces when they have to decide whether to eat one of their
party in a quest to survive. Once rescued, the case considers whether the
surviving spelunkers are guilty of murder.
You can get a copy of the case of the Speluncean Explorers through this web
site:
http://en.wikipedia.org/wiki/The_Case_of_the_Speluncean_Explorers
Once you get a sense of the case itself, explore further to see what kinds of
questions you can ask in class.
http://www.earlham.edu/~peters/writing/cse.htm#assignments
A BEST PRACTICES TEACHING TIP
Peer-to-peer teaching. This teaching technique can help students engage more fully with new
concepts that are referenced in this textbook. Wilbert J. McKeachie states
that there are two favorable outcomes from having students play the role
4-5
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
, Chapter 04-Administrative Law
of a teacher:
1.) Peer-to-peer teaching can stimulate additional learning by the
student who is teaching, since teaching will require greater
preparation for class.
2.) Peer teaching facilitates the learning of those being taught by
hearing information from an individual other than the regular
teacher.
McKeachie notes that it is essential that faculty members supervise the
student-led teaching session, as this method of teaching may not be
useful if students do not take the task seriously. A substantial amount of
education research supports the value of this teaching practice. In a legal
education article, J.B. Biggs alludes to peer-to-peer teaching as among
the most effective teaching strategies for engaging student learning:
―The best answer to the question, 'What is the most effective
method of teaching?", is that it depends on the goal, the student,
the content, and the teacher. But the next best answer is,
"Students teaching other students." There is a wealth of evidence
that peer teaching is extremely effective for a wide range of goals,
content, and students of different levels and personalities‖ (144).
To read more about peer-to-peer teaching, see Wilbert J. McKeachie‘s
―Teaching Tips: A Guidebook for the Beginning College Teacher‖ or
J.B. Biggs‘ ―Teaching for Better Learning.‖
References:
Wilbert J. McKeachie, Teaching Tips: A Guidebook for the Beginning
College Teacher, 7th ed., 1978.
J.B. Biggs, Teaching for Better Learning, 2 Legal Educ. Rev. 133 (1990-
1991).
4-6
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
