bonus chapter. Working within the Legal Environment what's new in this edition A.2 brief chapter outline and learning objectives A.
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1 bonus chapter. Working within the Legal Environment A what's new in this edition A.2 brief chapter outline and learning objectives A.3 lecture outline and lecture notes A.5 PowerPoint slide notes A.45 lecture enhancers A.59 lecture enhancer A-1: DOING BUSINESS WITH A PROACTIVE LEGAL STRATEGY A.59 lecture enhancer A-2: THE DIFFERENCES BETWEEN PATENTS, COPYRIGHTS, A.60 AND TRADEMARKSP1 lecture enhancer A-3: NORTEL S PATENT AUCTION A.61 lecture enhancer A-4: LED ZEPPELIN S STAIRWAY TO CONTROVERSY A.62 lecture enhancer A-5: PIRACY MAY KO UFC A.62 lecture enhancer A-6: NEGOTIABLE INSTRUMENT FORGERY AND THE A.63 UNIFORM COMMERCIAL CODE lecture enhancer A-7: TAX DODGING CORPORATIONS COST THE U.S. BILLIONS A.64 lecture enhancer A-8: GOOGLE S TAX TACTICS A.65 A-1
2 what s new in this edition additions to the 11 th edition: Getting to Know Eve Wright Taylor of the Miami Heat Name That Company: The FTC revisions to the 11 th edition: Statistical data and examples throughout the chapter were updated to reflect current information. deletions from the 10 th edition: Getting to Know Kenneth C. Frazier Name That Company: Toyota A-2
3 brief chapter outline and learning objectives Bonus Chapter A WORKING WITHIN THE LEGAL ENVIRONMENT Þ Getting to Know EVE WRIGHT TAYLOR, MIAMI HEAT Þ learning objective 1 Define business law, distinguish between statutory and common law, and explain the role of administrative agencies. I. THE CASE FOR LAWS A. Statutory and Common Law B. Administrative Agencies II. Þ learning objective 2 Define tort law and explain the role of product liability in tort law. TORT LAW A. Product Liability III. IV. Þ learning objective 3 Identify the purposes and conditions of patents, copyrights, and trademarks. LEGALLY PROTECTING IDEAS: PATENTS, COPYRIGHTS, AND TRADEMARKS Þ learning objective 4 Describe warranties and negotiable instruments as covered in the Uniform Commercial Code. SALES LAW: THE UNIFORM COMMERCIAL CODE A. Warranties B. Negotiable Instruments Þ learning objective 5 List and describe the conditions necessary to make a legally enforceable contract, and describe the possible consequences if such a contract is violated. A-3
4 V. CONTRACT LAW VI. A. Breach of Contract Þ learning objective 6 Summarize several laws that regulate competition and protect consumers in the United States. PROMOTING FAIR AND COMPETITIVE BUSINESS PRACTICES A. The History of Antitrust Legislation VII. LAWS TO PROTECT CONSUMERS Þ learning objective 7 Explain the role of tax laws in generating income for the government and as a method of discouraging or encouraging certain behaviors among taxpayers. VIII. TAX LAWS IX. Þ learning objective 8 Distinguish among the various types of bankruptcy as outlined by the Bankruptcy Code. BANKRUPTCY LAWS Þ learning objective 9 Explain the role of deregulation as a tool to encourage competition. X. DEREGULATION VERSUS REGULATION XI. SUMMARY A-4
5 As a key federal government agency, we have a key role in mergers and acquisitions in the United States business community. Without our approval, mergers or acquisitions can be rejected. For example, we approved the merger of American Airlines with U.S. Airways, but rejected a merger between AT&T and T-Mobile. Name that agency. (Students should read the chapter before guessing the company s name: The FTC.) Getting to Know EVE WRIGHT TAYLOR, MIAMI HEAT As the vice president and associate general counsel for the Miami Heat, Eve Wright Taylor deals with every legal issue that involves the team, including its arena.. Þ learning objective 1 Define business law, distinguish between statutory and common law, and explain the role of administrative agencies. I. THE CASE FOR LAWS A. Laws are an essential part of a civilized nation. 1. Over time, the body of law changes to reflect the needs and changes in society. 2. The JUDICIARY is the branch of government chosen to oversee the legal system through the court system. 3. The COURT SYSTEM in the U.S. is organized at the federal, state, and local levels. a. TRIAL COURTS hear cases involving criminal and civil law. b. CRIMINAL LAW defines crimes, establishes punishment, and regulates prosecution. c. CIVIL LAW involves legal proceedings that do not involve criminal acts. d. Both federal and state systems have APPEL- A-5
6 McGraw-Hill/Irwin Copyright 2015 by the McGraw-Hill Companies, Inc. All rights reserved. LO A-1! LO A-1! A-2 A-3 A-4 A-5 A-6 A-7 Bonus Chapter A - Working within the Legal Environment PPT A-1 Bonus Chapter Title BONUS CHAPTER A! Working within the Legal Environment! PPT A-2 Learning Objectives LEARNING OBJECTIVES! 1. Define business law, distinguish between statutory and common law, and explain the role of administrative agencies." 2. Define tort law and explain the role of product liability in tort law." 3. Identify the purposes and conditions of patents, copyrights, and trademarks." 4. Describe warranties and negotiable instruments as covered in the Uniform Commercial Code." 5. List and describe the conditions necessary to make a legally enforceable contract, and describe the possible consequences if such a contract is violated." PPT A-3 Learning Objectives LEARNING OBJECTIVES! 6. Summarize several laws that regulate competition and protect consumers in the United States." 7. Explain the role of tax laws in generating income for the government and as a method of discouraging or encouraging certain behaviors among taxpayers." 8. Distinguish among the various types of bankruptcy as outlined by the Bankruptcy Code." 9. Explain the role of deregulation as a tool to encourage competition." PPT A-4 Eve Wright Taylor EVE WRIGHT TAYLOR Miami Heat! Attended law school at the University of Indiana and worked for the LPGA before heading into the maledominated NBA.! With the Miami Heat, Taylor may be asked for legal advice on issues regarding the stadium, marketing, sales, and player-related matters.! PPT A-5 Name That Company NAME that COMPANY! As a federal government agency, we have a key role in mergers and acquisitions in the United States business community. Without our approval, mergers or acquisitions can be rejected. For example, we approved the merger of American Airlines with U.S. Airways, but rejected a merger between AT&T and T-Mobile.! Name that organization!! (See complete PowerPoint slide notes on page A.45.) PPT A-6 The Need for Laws The NEED for LAWS! Laws are a key part of a civilized society, but must change with the times." Judiciary -- The branch of government chosen to oversee the legal system through a system of courts.! The U.S. courts system is organized at the federal, state, and local levels. PPT A-7 Types of Court TYPES of COURT! Trial courts hear cases of criminal and civil law." Appellate courts hear appeals from the losing party at the trial court level. A-6
7 LATE COURTS to hear appeals of trial court decisions. 4. The judiciary also governs the activities and operations of a business. 5. Government has stepped in to make LAWS governing behavior because the U.S. business community has been perceived as not implementing acceptable practices fast enough. 6. BUSINESS LAW are the rules, statutes, codes, and regulations that are established to provide a legal framework within which business may be conducted and that are enforceable by court action. B. STATUTORY AND COMMON LAW 1. STATUTORY LAW includes state and federal constitutions, legislative enactments, treaties of the federal government, and ordinances in short, written laws. a. Laws are written in legal terminology and are difficult to read. b. There are more than 1.2 million lawyers in the U.S. 2. COMMON LAW is the body of the law that comes from decisions handed down by judges; also referred to as unwritten law. a. PRECEDENT involves decisions judges have made in earlier cases that guide the handling of new cases. A-7
8 LO A-1! LO A-1! A-8 A-9 Bonus Chapter A - Working within the Legal Environment PPT A-8 Types of Law TYPES of LAW! Criminal law defines crimes, establishes punishments, and regulates the investigation and prosecution of people accused of committing crimes." Civil law proceedings cover non-criminal acts - divorce, personal injury lawsuits and more." Business Law -- Refers to the rules, statutes, codes and regulations that provide a legal framework for the conduct of business. lecture enhancer A-1 DOING BUSINESS WITH A PROAC- TIVE LEGAL STRATEGY Many companies are simply reactive when it comes to legal red tape. MIT s research shows that may not be the best course of action. (See the complete lecture enhancer on page A.59 of this manual.) PPT A-9 Major Areas of Law MAJOR AREAS of LAW! Statutory Law -- Includes state and federal constitutions, legislative enactments, treaties of the federal government and ordinances; written law.! Common Law -- The body of law that comes from decisions handed down by courts; unwritten law.! Precedent -- Decisions judges have made in previous cases to guide their handling of new cases. A-8
9 II. b. Lower courts must abide by the precedents set by higher courts. C. ADMINISTRATIVE AGENCIES 1. ADMINISTRATIVE AGENCIES are federal or state institutions and other government organizations created by Congress or state legislatures with delegated power to pass rules and regulations within their mandated area of authority. 2. Administrative agencies hold quasi-legislative, quasi-executive, and quasi-judicial powers. a. The agency is allowed to pass regulations within its area of authority, conduct investigations, and hold hearings when rules and regulations have been violated. b. They issue more rulings and settle more disputes than courts do. 3. Figure A.1 lists some of these administrative agencies. Þ learning objective 2 Define tort law and explain the role of product liability in tort law. TORT LAW A. A TORT is a wrongful act that causes injury to another person s body, property, or reputation. 1. An INTENTIONAL TORT is a willful act purposely inflicted that results in injury. 2. NEGLIGENCE, in tort law, is behavior that causes unintentional harm or injury. A-9
10 LO A-1! LO A-1! LO A-2! A-10 A-11 A-12 A-13 Bonus Chapter A - Working within the Legal Environment PPT A-10 Administrative Agencies ADMINISTRATIVE AGENCIES! Administrative Agencies -- Federal or state institutions and other government organizations with delegated power to create rules and regulations within their given area of authority.! Examples of Administrative Agencies:" - The Federal Reserve Board" - The Securities and Exchange Commission" - The Equal Employment Opportunity Commission" - The Federal Trade Commission PPT A-11 Administrative Agencies TEXT FIGURE A.1 Examples of Federal, State, and Local Administrative Agencies ADMINISTRATIVE AGENCIES! test prep PPT A-12 Test Prep TEST PREP! What is business law?" What is the difference between statutory and common law?" What is an administrative agency?" PPT A-13 What Is Tort Law? WHAT is TORT LAW?! Tort -- A wrongful act that causes injury to another person s body, property or reputation.! An intentional tort is a willful act that results in injury." Negligence Behavior that causes unintentional harm or injury." A-10
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