Ethics and the Law

1
Ethics and the Law

• Coach Nick Johnson
• Legal Environment of Business
• Law for Business and Personal Use

2
What is Law?

• Rules and Conduct established by govt to
  maintain stability and justice
• Criminal
• Property
• Business
• Family
• 3 Levels
• Federal
• State
• Local

3
Sources of Law

• Constitutional Law
• Highest form of law, no other can conflict
• Fundamental Rights of Citizens
• State Laws can be more defined
• Common Law (English Law)
• Different for situations
• Precedent
• Statutory Law (what we use now)
• Laws set in place that must be followed
• Federal/State/Local
• 18 Military Draft
• Paying Taxes
• Criminal Offences for Crimes

4
Sources of Law Cont..

• Court Decisions (Case Law)
• Common Law
• Set Precedent and All Courts below must follow
• Interpreting Statues (laws)
• Determine what Statute is
• Judicial Review
• Consistent with Constitution
• Administrative Regulations
• Given to regulate certain fields of expertise
• FCC Regulates broadcasting
• Still must abide by constitution and can be
  removed from power at any time

5
Types of Crime

• Crime- wrong against society
• Affect a person and public good
• Tort- wrong against people
• Assault, Defamation, Identity Theft
• 3 Major Types
• People
• Murder, Assault, Kidnapping, Rape
• Property
• Theft, arson, vandalism
• Business Interests
• Embezzlement, Fraud

6
Ethics

• Deciding right or wrong in a reasoned and
  impartial manner
• Must involve you or others in significant way
• Refers to established authority
• Law
• Bible/Torah/Koran
• Two Major Rules
• The Golden Rule
• The Greatest Good

7
Ethical Character Traits

• Honesty
• Compassion
• Sincerity
• Integrity
• Dependability
• Name any others?

8
Ethics cont.

• Business Ethics- used in making Business
  decisions
• Profit Maximization skews this
• Two Major Types
• Consequences Based
• What happens when you do this
• Rule-Based
• Ten Commandments
• Could everyone do it?
• MLK case (civil disobedience)

9
Ethical Heroes?

• Who can you think of in history that was ethical?
• Abraham Lincoln
• Mother Teresa
• Gandhi
• MLK
• Rosa Parks
• Personal ethical heroes?

10
Activities for Section 1

• Ethical Debate
• War vs. Peace
• Ethical Decision Making Partner Project

11
How Ethics affect Business
12
Ethics and Business

• Businesses must adhere to a strict code of ethics
  for
• Consumers
• What are some things youve seen that protect
  Consumers?

13
Consumer Protection

• Protected by
• Caveat Emptor- let the buyer beware
• Supply and Demand
• Personal Judgment (reviews)
• Customer Service Departments
• BBB
• Local, State and Federal Government
• Deceived consumers may sue
• May be subject to change business policies

14
Consumer Protection

• Protected by
• Class Actions
• Sue for self and others affected
• Examples? McDonalds?
• Cease and Resist Order
• Government acts on behalf of consumer
• Investigates company and policies
• Licensing
• Must acquire to produce goods
• Inspections
• Examples?

15
Consumer Protection

• Protected By
• Unsafe Products
• 1972 Consumer Product Safety Act
• Report Failures
• Examples? Toyota Floor Mats?
• Unfair Trade Practices
• Controlling or Fixing Prices
• Example? Gas Prices, Price gouging

16
Consumer Protection.

• Protected By
• False and Misleading Trade Practices
• Leaving out details or important facts
• Examples?
• Bait and Switch
• Leading in with low price product, selling higher
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