Business Law

MGMT 260
Eastern Mediterranean University
Department of Business Administration
Asst. Prof. Gökhan Adalıer
 What is Law?
Black’s Law Dictionary Definition:
Law, in its generic sense, is a body of rules of
action or conduct prescribed by controlling
authority, and having binding legal force. That
which must be obeyed and followed by citizens
subject to sanctions or legal consequences is a
law.
 Functions of the Law

1. Keep the peace

2. Shape moral standards
3. Promote social justice
4. Maintain the status quo
5. Facilitate orderly change
6. Facilitate planning
7. Provide a basis for compromise
8. Maximize individual freedom.
 Brown v. Board of Education

• Summary of Brown v. Board of Education of Topeka, 347 U.S. 483, 74 S. Ct. 686, 98 L.
Ed. 873 (1954).
• Facts
• This case is a consolidation of several different cases from Kansas, South Carolina,
Virginia, and Delaware. Several black children (through their legal representatives, Ps)
sought admission to public schools that required or permitted segregation based on
race. The plaintiffs alleged that segregation was unconstitutional under the Equal
Protection Clause of the Fourteenth Amendment.
• In all but one case, a three judge federal district court cited Plessy v. Ferguson in
denying relief under the “separate but equal” doctrine. On appeal to the Supreme
Court, the plaintiffs contended that segregated schools were not and could not be
made equal and that they were therefore deprived of equal protection of the laws.
• Issue
• Is the race-based segregation of children into “separate but equal” public schools
constitutional?
• Holding and Rule (Warren)
• No. The race-based segregation of children into “separate but equal” public schools violates the
Equal Protection Clause of the Fourteenth Amendment and is unconstitutional.
• Segregation of children in the public schools solely on the basis of race denies to black children the
equal protection of the laws guaranteed by the Fourteenth Amendment, even though the physical
facilities and other may be equal. Education in public schools is a right which must be made
available to all on equal terms.
• The question presented in these cases must be determined not on the basis of conditions existing
when the Fourteenth Amendment was adopted, but in the light of the role of public education in
American life today. The separate but equal doctrine adopted in Plessy v. Ferguson, which applied
to transportation, has no place in the field of public education.
• Separating black children from others solely because of their race generates a feeling of inferiority
as to their status in the community that may affect their hearts and minds in a way unlikely ever to
be undone. The impact of segregation is greater when it has the sanction of law. A sense of
inferiority affects the motivation of a child to learn. Segregation with the sanction of law tends to
impede the educational and mental development of black children and deprives them of some of
the benefits they would receive in an integrated school system. Whatever may have been the
extent of psychological knowledge at the time of Plessy v. Ferguson, this finding is amply supported
by modern authority and any language to the contrary in Plessy v. Ferguson is rejected.
• Disposition
• Judgment for the plaintiffs.
 Brown v. Board of Education

• Citation. 347 U.S.483, 74 S. Ct. 686, 98 L. Ed. 873, 1954 U.S. 2094.
• Brief Fact Summary. Black children were denied admission to schools attended by white
children under laws that permitted or required segregation by race. The children sued.

Synopsis of Rule of Law. Separate but equal educational facilities are inherently
unequal.

•
Facts. The Plaintiffs, various black children (Plaintiffs), were denied admission to schools
attended by white children under laws that permitted or required segregation by race.
Plaintiffs sued, seeking admission to public schools in their communities on a
nonsegregated basis.

Issue. Do separate but equal laws in the area of public education deprive black children
of the equal protection of the laws guaranteed by the Fourteenth Amendment of the
United States Constitution (Constitution)?
• Held. Yes.
Chief Justice Earl Warren (J. Warren) stated that even if the “tangible” factors of
segregated schools are equal, to separate black children from others of similar age
and qualifications solely on the basis of race, generates a feeling of inferiority with
respect to their status in the community and may affect their hearts and minds in a
way unlikely to ever be undone.

•
Discussion. The Supreme Court of the United States (Supreme Court) is relying on
the same rationale to invalidate the segregation laws here that it did in Sweatt v.
Painter (ordering the admission of a black student to the University of Texas Law
School, despite the fact that a parallel black facility was available). The rationale is
that it’s the intangible factors that make segregation laws in the area of public
education “inherently unequal.” Whether stigma or the perception of stigma alone
is sufficient injury to invalidate a law supported by a valid, neutral purpose is an
open question.
 Schools of Jurisprudential Thought

School Philosophy
Natural Law Posits that law is based on what is
“correct”. It emphasizes a moral theory
of law – that is, law should be based on
morality and ethics.

Historical Believes that law is an aggregate of social

traditions and customs.

Analytical Maintains that law is shaped by logic.

Sociological Asserts that the law is a means of
achieving and advancing certain sociological
goals.
Command Believes that the law is a set of rules
developed, communicated, and enforced by the ruling
party.
Critical Legal Studies Maintains that legal rules are
unnecessary and that legal disputes should be
solved by applying arbitrary rules based on fairness.
Law and Economics Believes that promoting market
efficiency should be the central concern of legal
decision making.
 Sources of Law in the United States
Source of Law Description
Constitutions The U.S. Constitution establishes the federal
government and enumerates its powers. Powers not given to the
federal government are reserved to the states. State constitutions
establish state governments and enumerate their powers.

Treaties The president, with the advice and consent of the

Senate, may enter into treaties with foreign countries.

Codified Law: statutes Statutes are enacted by Congress and state

and ordinances legislatures. Ordinances are enacted by
municipalities and local government agencies. They establish
sources of conduct that covered parties must follow.
Executive Orders Issued by the president and governors of states,
executive orders regulate the conduct of covered parties.

Regulations and orders Administrative agencies are created by the

of administrative legislative and executive branches of government.
agencies They may adopt rules and regulations that regulate
the conduct of covered parties as well as issue
orders.

Judicial decisions Courts decide controversies. In doing so, a court

issues a decision that states the holding of the case and the
rationale the court used in reaching that decision.