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A-41
C. Some regulation of business is necessary to assure
fair and honest dealings with the public.
XI. SUMMARY
Bonus A – Working Within the Legal Environment
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progress
assessment
(Text page A-19)
PPT A-40
Progress Assessment
(See complete PowerPoint slide notes on page A.57.)
Bonus A – Working Within the Legal Environment
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PowerPoint slide notes
PPT A-1
Chapter Title
PPT A-2
Learning Goals
PPT A-3
Learning Goals
Bonus A – Working Within the Legal Environment
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PPT A-4
Kenneth Frazier
PPT A-5
Name That Company
Company: Toyota
PPT A-6
The Need for Laws
Bonus A – Working Within the Legal Environment
A-45
PPT A-7
Types of Court
PPT A-8
Types of Law
It is important for students to understand that as busi-
nesspeople they must have knowledge of business law.
Business law provides a framework in which business
must be conducted. Failure to understand the law could
have dire consequences.
PPT A-9
Major Areas of Law
Bonus A – Working Within the Legal Environment
PPT A-10
Administrative Agencies
In addition to following the law, businesses must also
follow regulations set by administrative agencies.
PPT A-11
Progress Assessment
1. Business law refers to the rules, statutes, codes,
and regulations that provide a legal framework
for the conduct of business and that are enforcea-
ble.
2. Statutory law includes state and federal constitu-
tions, legislative enactments, treaties of the feder-
al government, and ordinances or written law.
Common law is the body of law that comes from
decisions handed down by courts. Common law
is often referred to as precedent.
3. Administrative agencies are federal and state in-
stitutions and other government organizations
created by Congress or state legislatures with del-
egated power to create rules and regulations with-
in their given area of authority.
PPT A-12
What Is Tort Law?
Bonus A – Working Within the Legal Environment
A-47
PPT A-13
Product Liability Laws
Toyota Motors recalled 3,000,000 cars in 2010 and
2011 due to sudden accelerator incidents. The company
now faces a year of litigation.
PPT A-14
Major Product Liability Cases
1. This slide is based on Figure A.2.
2. This slide outlines major product liability cases
with large settlements from well-known compa-
nies. If time allows, have students research the
details of these settlements or have them find
other large settlements and share their findings
with the class.
PPT A-15
Patents, Copyrights, and Trademarks
1. Copyright law is becoming more and more im-
portant with the increase in publication using var-
ious media.
2. Copyrighted material is sometimes referred to as
intellectual property.
Bonus A – Working Within the Legal Environment
PPT A-16
Patent Facts
PPT A-17
Patent Leaders in 2010
1. This slide presents the top patent recipient com-
panies in 2010.
2. IBM, for the 18th straight year, was the top
company granted the most patents by the U.S.
Patent and Trademark Office.
3. Source: IFI Patent Intelligence.
PPT A-18
Progress Assessment
1. Tort law is a wrongful act that causes injury to
another person’s body, property, or reputation.
2. Product liability holds businesses liable for harm
that results from production, design, or inade-
quate warnings of products they market. Strict
product liability means having liability without
regard to fault.
3. A patent is protected from infringements for 20
Bonus A – Working Within the Legal Environment
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PPT A-19
What Is the Uniform Commercial Code?
PPT A-20
Understanding Warranties
Warranties can be full or limited.
PPT A-21
Negotiable Instruments
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A-50
PPT A-22
Contract Law
PPT A-23
Contract Requirements
PPT A-24
Breached Contracts
Bonus A – Working Within the Legal Environment
PPT A-25
Progress Assessment
1. UCC is a comprehensive commercial law that co-
vers sales laws and other commercial laws. The
goal of the UCC is to simplify commercial trans-
actions across state lines.
2. Express warranties are specific representations by
the seller that buyers rely on regarding the goods
they purchase. The warranty you receive in the
box when you buy a new TV or mobile phone is
an express warranty. Implied warranties are legal-
ly imposed on the seller, who implies that a prod-
uct will conform to the customary standards of
the trade or industry in which it competes.
3. The four elements of a negotiable instrument
specified in the UCC are (1) be written and
signed by the maker or drawer, (2) be made pay-
able on demand or at a certain time, (3) be made
payable to the bearer to specific order, and (4)
contain an unconditional promise to pay a speci-
fied amount of money.
4. The six conditions for a legally binding contract
are (1) an offer is made, (2) there is voluntary ac-
ceptance of the offer, (3) both parties give con-
sideration, (4) both parties are competent, (5) the
contract covers a legal act, and (6) the contract
must be in proper form. If the contract is
breached specific performance may be required,
payment of damages or discharge of the obliga-
tion may be ordered.
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PPT A-27
Antitrust Legislation
PPT A-28
History of High-Profile Antitrust Cases
PPT A-29
Consumer Protections