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Unformatted text preview: Chapter 1 - Business and Its Legal Environment One of the most important functions of law in any society is to provide stability, predictability, and continuity so that people can be sure of how to order their affairs The stability and predictability created by the law provide an essential framework for all civilized activities, including business activities. Law - consists of enforceable rules governing relationships among individuals and between individuals and their society. They establish rights, duties, and privileges that are consistent with the values and beliefs of their society or its ruling group. Jurisprudence - the study of law Schools of Jurisprudential Thought o The Natural Law School Natural Law - denotes a system of moral and ethical principles that are inherent in human nature and that people can discover through the use of their natural intelligence, or reason. It dates back to the days of the Greek philosopher Aristotle According to Aristotle, natural law applies universally to all humankind. o The Positivist School Positive Law - national law (the written law of any given society at a particular point in time) Positivist School - believe that there can be no higher law than a nation's positive law The judge with positivist leanings probably would be more inclined to defer to an existing law then would a judge who adheres to the natural law tradition o The Historical School Historical School - emphasizes the evolutionary process of law by concentrating on the origin and history of the legal system. Adherents of the historical school or more likely than those of other schools to strictly follow decisions made in past cases o Legal Realism Legal Realism - based on the idea that law is just one of the many institutions in society and that it is shaped by social forces and needs. They also believe that the law can never be applied with total uniformity. Sociological School - views law as a tool for promoting justice in society. Jurists who adhere to this philosophy of law are more likely to depart from past decisions than are those jurists who adhere to the other schools of legal thought. Business Activities and the Legal Environment Laws and government regulations affect virtually all business activities The study of business law necessarily involves an ethical dimension o Many Different Laws May Affect a Single Business Transaction Breach - to violate a law, by an act or an omission, or to break a legal obligation that one owes to another person or to society....
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This note was uploaded on 04/16/2008 for the course LGS 200 taught by Professor Turner during the Spring '07 term at Alabama.
- Spring '07