Chapter 1

1. Definition of Law:
Defines acceptable standards of conduct

2. Roles of Law in U.S:

Communicate acceptable conduct to people
Resolve disputes and conducts
Preserve societies values and change with them

3. Major Sources of Laws:

U.S Constitutions (primary)
Supreme law
Anything conflicting can be ruled invalid
3 Branches
Legislative: congress at federal level (House and Senate)
Judicial: Supreme Court (makes decision)
Executive: President (executive orders)
Administrative Agencies
Issue rules to people in specific agency
State Constitution
Can be ruled invalid to U.S Constitution

4. Major Classification of Laws:

Public vs Private
Private:
small group of people (renters in lease, you vs landlord)
Public:
applies to all people
Civil vs Criminal
Criminal:
“it is a crime to do x”
Penalties more severe
Burden of proof: more than reasonable doubt
Businesses lose business
Civil:
Evidence more than 50%

Procedural vs substantive
Procedural:
process to get compensated
Substantive:
what’s acceptable conduct and their consequences
aka statutory
Business ethics:

Lawyers: profession with strictest code of conduct

Public will often vote with their law, wont deal with unethical company
Those executives can go to jail
Companies come up with written code of conducts for 2 reasons:
1. If employee is guilty, company is guilty
2. If employee is unethical without company trying to stop it, companies are fined $$$
Commercial example:
Let public know of risks
Assume public are intelligent and can make own decisions