1.

Law for Business, 17e

by Ashcroft and Ashcroft

Chapter 1:
Introduction to Law

Law for Business, 17e, by Ashcroft and Ashcroft, © 2011 Cengage Learning
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Learning Objectives

Define law.

Explain why we have laws.

List four sources of law.

Distinguish among crimes, torts,

and ethics.
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What is Law?

Blackstone’s definition is
famous: “Law is a rule of civil
conduct, commanding what
is right and prohibiting what
is wrong.”
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Introduction

Business law is concerned with

what is right or wrong regarding
business transactions.
The law is also concerned with
establishing a framework in which
society can operate as smoothly as
possible to avoid disputes.
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Roots of Our
Legal System
English, French, and Spanish
influences.
Mostly from English because the 13
original colonies were English.
We get our common law and equity
concepts from English law.
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Types of Law

Common law - customs that gradually

became law. Colonists brought this
concept of law to America from England.
Equity law - system based on fairness in
which money damages sometimes are
not sufficient. This gave rise to the
following:
Restraining orders
Injunctions
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Sources of Law

Federal, State, Local

Constitutions
Bill of Rights

Federal, State, Local

Statutes
Codes
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Sources of Law

Judicial decisions
Precedents
Stare decisis
Administrative agency orders
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Civil Law and

Criminal Law
Civil law : concerned with private or
purely personal rights.
Criminal law : injures society as a
whole.
Felonies – big crimes
Misdemeanors – less serious crimes
Wobblers – offenses that can be either
felonies or misdemeanors
Violations and infractions – much less
serious
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Tort Law

Torts are private or civil wrong or injury

for which there may be an action for
damages
May be intentional or it may be caused by
negligence
Example of tort that is not a crime
A business negligently leaving debris in an
area of customer traffic
Examples of torts that can also be crimes
Fraud
Assault
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Bases for Ethical

Judgment
Personal values coming from:
Religious beliefs
Individual experiences
Cultural background
Scientific knowledge
Because all people had differing
backgrounds, judgments as to what
is right and wrong vary.
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Ethical Principles

Seriousness of consequences
– Laws do not reflect everything we
believe about right or wrong; less serious
matters are not addressed.
Consensus of majority
Laws can’t possibly reflect every
individual’s concept of right or wrong.
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Ethical Principles

Change in ethical standards

– Behavior evolves as society evolves.
Legally enforceable
Organizations have codes of professional
responsibility, and violations provide the
basis for penalties.
Voluntary
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Do you have
any questions?