CH1-4 - Chapter 1 Law and Legal Reasoning Law consists of...

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Chapter 1 Law and Legal Reasoning
Section 1 BUSINESS ACTIVITIES AND THE LEGAL ENVIRONMENTMany different laws can affect a single business decisionBusiness decision makers need to consider not just whether a decision is legal, but also whether it is ethical. Section 2 SOURCES OF AMERICAN LAWThere are two main sources of American Law -- primary sources that establish the law and the secondary sources that summarize and clarify the primary sources of law. Courts often refer to secondary sources of law for guidance in interpreting and applying the primary sources of law. The following are primary sources of law:CONSTITUTIONAL LAWThe U.S. Constitution distributes power among the branches of government. It is the supreme law of the land. Any law that conflicts with it is invalid. The states also have constitutions, but the federal constitution prevails.STATUTORY LAWStatutes and ordinances are enacted by Congress and by state and local legislative bodies.Uniform laws (such as the Uniform Commercial Code) and model codes are created by panels of experts and scholars and adopted at the option of each state’s legislature.1.Uniform Laws (Statutory Laws) are statutes and ordinances created by federal, state, and local legislature and governing bodies. None of these laws may violate the U.S. Constitution or the relevant state constitution. Uniform laws are model laws created by the National Conference of Commissioners onUniform State Laws and/or the American Law Institute for the states to consider adopting. If the state legislature adopts a uniform law, it becomes part of the statutory law in that state. Each state has the option of adopting or rejecting all or part of a uniform law.2.The Uniform Commercial Law facilitates commerce among the states by providing a uniform, yet flexible, set of rules governing commercial transaction, which assures businesspersons that their contracts, if validly entered into, normally will be enforced.ADMINISTRATIVE LAW

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