CHAPTER 1

INTRODUCTION
T O L AW
LEARNING OBJECTIVES

• Define law.
• Explain why we have laws.
• List four sources of law.
• Distinguish law and ethics.
W H AT I S L AW ?

Blackstone’s definition:
“Law is a rule of civil
conduct, commanding what
is right and prohibiting
what is wrong.”
Are all rules of civil conduct laws?

Many rules of civil conduct commend what is right and condemn

what is wrong, but rules are not necessarily laws.

A law is a rule that prescribes certain conduct and is enacted and

enforced by a government.
 B U S I N E S S L AW

• 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.
Why we have laws?

Society is very complex. Disputes may arise when we participate in

any activities, such as: making a purchase, starting a business,
traveling, renting an apartment,…

Laws help us to:

 avoid disputes;
 peacefully resolve disputes;
 establish a stable framework to keep society operating as smoothly
as possible.
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.
 13
AMERICAN
COLONIES
C O M M O N L AW

• Common law - customs that gradually became law.

• When a dispute came before a judge, the court prescribed
a rule of its own based on the customs of the time. Over
a period of several centuries, these court decisions
developed into a body of law. Colonists brought this
concept of law to America from England.
S O U R C E S O F L AW

Constitutions Statutes
• Federal, State, • Federal, State,
Local Local
• Bill of Rights • Codes

Judicial
decisions Administrative
• Precedents: Stare agency orders
decisis
S O U R C E S O F L AW

Constitutions
• Document that contains fundamental principles of a
government.
• Constitutions include federal constitution and state
constitutions.
• The U.S. Constitution is the supreme law of the land.
State constitutions, as well as all other laws, must agree
with the U.S. Constitution.
• Bill of Rights is first ten amendments U.S. Constitution
S O U R C E S O F L AW

Statutes
• Law enacted by legislative bodies, federal Congress,
state legislatures, and local councils.
• Codes is collection of laws, rules, or regulations.
• In the field of business law, the most important statute
is the Uniform Commercial Code (UCC).
S O U R C E S O F L AW

Judicial decisions
• Precedent is court decision that determines the decision
in a subsequent, similar case.
• Stare Decisis is principle that a court decision controls
the decision of a similar future case.
• For legal stability, courts must generally adhere to the
judicial precedents set by earlier decisions.
• However, changing situations or practices sometimes
make it necessary for the previous case law to be
overturned and a new rule or practice to be established.
S O U R C E S O F L AW

Administrative agency orders

• Governmental board or commission with authority to
regulate matters or implement laws.
S E PA R AT I O N O F P O W E R S
VIETNAM
VIETNAMESE
L AW
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.
ETHICAL PRINCIPLES

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

Change in
ethical • Behavior evolves as society evolves.
standards
• Organizations have codes of
Legally professional responsibility, and
enforceable violations provide the basis for
penalties.

Voluntary