Chapter 1

American Law, Legal Reasoning, and the Legal System

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Summary

The American legal system has its roots in the British legal system. It was developed with the purpose of establishing standards for acceptable conduct, prescribing punishment for violations as a deterrent, establishing systems for enforcement, and peacefully resolving disputes. The ultimate goal of the American legal system is promotion of the common good The American legal system was developed with the goal of establishing a set of standards that outline what is to be considered minimally acceptable behavior.

Chapter 2

Disputes and Dispute Settlement

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Summary

When a formal proceeding is started in the court system, alternative dispute resolution ( ADR ), or ways of solving an issue with the intent to avoid litigation , may be employed. We frequently engage in negotiations as we go about our daily activities, often without being consciously aware that we are doing so. Negotiation can be simple, e.g., two friends deciding on a place to eat dinner, or complex, e.g., governments of several nations trying to establish import and export quotas across multiple industries. Negotiation is often the first step used in ADR.

Key terms

formal proceeding

started in the court system, alternative dispute resolution ( ADR ), or ways of solving an issue with the intent to avoid litigation , may be employed

Chapter 3

Business Ethics and Social Responsibility

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Summary

Business ethics are considered to be the blueprint for building a successful organization. If an organization is built on socially responsible values, it will be stronger than an organization that is built on profit alone. Businesses must establish a clear set of values that promote ethical practices and social responsibility. In today’s business climate, companies are increasingly under scrutiny by private citizens.

Key terms

organization

built on socially responsible values, it will be stronger than an organization that is built on profit alone

Chapter 4

Business and the United States Constitution

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Summary

The political system that divides authority to govern between the state and federal governments is known as federalism , and this too is established in the Constitution. The United States Constitution is the supreme law of the United States. The Tenth Amendment states that any area over which the federal government is not granted authority through the Constitution is reserved for the state. Federal and state constitutions are a major source of business law.

Key terms

United States Constitution

the supreme law of the United States

state and federal governments

known as federalism , and this too is established in the Constitution

Chapter 5

Criminal Liability

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Summary

Many of the workplace violations are nonviolent crimes, such as fraud, property crimes, or drug- or alcohol-related infractions. People rarely think about their conduct at work as being potentially illegal, or that jail time could result from poor workplace decisions. Organizations are fined, and executives are sentenced to jail, when business laws are broken. Regardless of the level of violence or the employee’s motivation for committing the crime, breaking the law can lead to negative consequences for the business, its employees, and its customers

Key terms

workplace violations

nonviolent crimes, such as fraud, property crimes, or drug- or alcohol-related infractions

Chapter 6

The Tort System

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Summary

Civil suits arise from damages suffered by one or more persons or entities at the hands of another person or entity. The damage can happen in a variety of circumstances, and may be intentional or unintentional. Unlike criminal cases, civil suits seek to provide some form of remedy for the loss suffered by an injured party.

Chapter 7

Contract Law

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Summary

The key to a contract is that there must be an offer, and acceptance of the terms of that offer. To be considered enforceable by law, a contract must contain several elements, including offer and acceptance, genuine agreement, consideration, capacity, and legality An offer is a proposal made to demonstrate an intent to enter a contract. A contract is defined as an agreement between two or more parties that is enforceable by law

Key terms

contract

defined as an agreement between two or more parties that is enforceable by law

key to a contract

that there must be an offer, and acceptance of the terms of that offer

offer

a proposal made to demonstrate an intent to enter a contract

Chapter 8

Sales Contracts

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Summary

A contract of sale is a specific type of contract in which one party is obligated to deliver and transfer ownership of a good to a second party, who in turn is obligated to pay for the good in money, or its equivalent. Commercial enterprises that engage in buying and selling practices need to be aware of the features and nature of sales contracts . The party who is obligated to deliver the good is known as the vendor or seller.

Key terms

contract

bound to fulfill reciprocal obligations toward each other

contract of sale

a specific type of contract in which one party is obligated to deliver and transfer ownership of a good to a second party, who in turn is obligated to pay for the good in

Chapter 9

Employment and Labor Law

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Summary

Workers have the right to be safe at work, and companies have responsibilities to employees in the event that they are harmed while undertaking work on behalf of the employer. Compared to other countries in the West, stringent and extensive employee protections came fairly late to the United States. Up until 1959, for example, employers had the right to fire a worker without giving any reason. This concept, which was known as at-will employment , was applicable in all states.

Chapter 10

Government Regulation

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Summary

It is the law that is related to administrative agencies. Congress writes out a law called an organic statute that lays out the purpose and structure of the agency. The agency is charged with carrying out that purpose, as described by Congress. Administrative law is also referred to as regulatory and public law .

Key terms

agency

charged with carrying out that purpose, as described by Congress

Chapter 11

Antitrust Law

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Summary

What if the two largest manufacturers of soft drinks, Coca Cola Co. It is likely that the mega-company that resulted would dominate the soft drink industry, squeezing out all of the other smaller competitors In the late 1800s, concern over this kind of merger, as well as other attempts by large companies to create monopolies or to control the market, led state and federal lawmakers to take steps to reduce the risks… During the late 1800s, the United States became concerned about the development of corporate monopolies dominating the manufacturing and mining industries (Jurist, n.d.).

Chapter 12

Unfair Trade Practices and the Federal Trade Commission

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Summary

The FTC was created in 1914 to address the problem of monopolies and trusts. Following the Civil War, a wave of consolidation and growth among companies triggered increased public debate. Through handshake agreements, issuance of stock, and pooling arrangements, companies could fix prices and outputs, thus effectively stopping competition and raising consumer prices. A substantial number of mergers gave control over key industries to small groups of businesses.

Chapter 13

International Law

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Summary

In 1945, President Harry Truman stated, “When Kansas and Colorado have a quarrel over the water in the Arkansas River they don’t call out the National Guard in each state and go to war over it. They bring a suit in the Supreme Court of the United States and abide by the decision.

Chapter 14

Securities Regulation

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Summary

As explained in the previous section, many companies were initially irritated by the creation of the Securities Exchange Act of 1934, as it created a myriad of legal responsibilities and potential liabilities that… Companies came to recognize that they needed legal counsel and internal systems in place to ensure that they were in compliance.