Business Law- Chapter 1: An Introduction to the Fundamentals of Dynamic Business Law and Business Ethics

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Business Law
The enforceable rules of conduct that govern the actions of buyers and sellers in market exchanges.
Law
Rules of conduct in any organized society that are enforced by the governing authority of the community.
Private Law
Law that involves suits between private individuals or groups.
Public Law
Law that involves suits between private individuals or groups and their government.
Civil Law
The body of laws that govern the rights and responsibilities either between persons or between persons and their government.
Criminal Law
The body of laws that involve the rights and responsibilities an individual has with respect to the public as a whole.
Constitutional Law
The general limits and powers of a government as interpreted from its written constitution.
Statutory Law
The assortment of rules and regulations put forth by legislators.
Model Laws
Laws created to account for the variability of laws among states. These laws serve to standardize the otherwise different interstate laws. Also called uniform laws.
Case Law
The collection of legal interpretations made by judges. They are considered to be law unless otherwise revoked by a statutory law. Also known as common law.
Precedent
A tool used by judges to make ruling on cases on the bases of key similarities to previous cases.
Stare Decisis
“Standing by the decision;” a principle stating that rulings made in higher courts are binding precedent for lower courts.
Restatements of the Law
Summaries of common law rules in a particular area of the law. Restatements do not carry the weight of law but can be used to guide interpretations of particular cases.
Administrative Law
The collection of rules and decisions made by administrative agencies to fill in particular details missing from constitutions and statues.
Natural Law
A school of jurisprudence that recognizes the existence of higher law, or law that is morally superior to human laws.
Legal Positivism
A school of jurisprudence which holds that because society requires authority, a legal and authoritarian hierarchy should exist. When a law is made, therefore, obedience is expected because authority created it.
Identification With the Vulnerable
A school of jurisprudence which hold that society should be fair. Particular attention is therefore paid to the poor, the ill and the elderly.
Historical School
A school of jurisprudence that uses traditions as the models for future laws and behaviors. Also called tradition or custom.
Legal Realism
A school of jurisprudence which holds that context must be considered as well as law. Context as economic conditions and social conditions.
Cost-Benefit Analysis
An economic school of jurisprudence in which all costs and benefits of a law are given monetary values. Laws with the highest ratios or benefits to costs are then preferable to those with lower ratios.
Ethics
The study and practice of decisions about what is good or right.
Business Ethics
The use of ethics and ethical principles to solve business dilemmas.
Ethical Dilemmas
A question about how one should behave that requires one to reflect on the advantages and disadvantages of the optional choices for various stakeholders.
Social Responsibility of Business
The expectations that a community places on the actions of firms inside that community’s borders.
WPH Approach to Ethical Decision Making
A set of ethical guidelines that urges us to consider whom an action affects, the purpose of the action and how we view its morality.
Ethical Guidelines
A simple tool that helps determine whether an action is moral or not.
Stakeholders
The groups of people affected by a firm’s decisions.
Values
Positive abstractions that capture our sense of what is good and desirable.
Universalization Test
The ethical guideline that urges us to consider, before we do an action, what the world would be like if everybody acted in this way.
Categories: Business Law