Chapter 1 Introduction to Law
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Lesson Outline
1. Law is a rule of civil conduct, commanding what is right and prohibiting what is wrong.
2. Business law is concerned primarily with those rules of conduct prescribed by government
for the performance of business transactions.
which courts have rendered in specific cases. These decisions become precedents.
6. Our laws are derived from judicial decisions, constitutions, statutes, and administrative
agency regulations.
7. Constitutional law defines the relationships of the parts of the government to each other and
the relationship of the government to its citizens. The U.S. Constitution is the supreme law of
the land and the U.S. Supreme Court is the final arbiter. The Commerce Clause is the basis
for most laws regulation business. The Bill of Rights is an addition to the U.S. Constitution
designed to protect individual liberty. States also have constitutions, and they must not
contradict the U.S. Constitution.
11. Criminal law is that branch of law that has to do with crimes and the punishment of wrong–
doers. Crimes are classified as:
a. Felonies, or offenses of a serious nature
b. Misdemeanors, or offenses of less serious nature
c. Infractions (or violations), or minor offenses.
12. Tort law concerns private or civil wrongs or injuries, other than breaches of contracts.
13. Ethics is the study of the morality of conduct, its motives, and duties.
Note: Many variations occur from state to state in the laws on every subject. The text gives the
general principles that are the same and reports on laws that most states have in common. In some
cases it reports principles only a few states adhere to if they appear to be a trend.