The Legal and Regulatory Environment of Business

Learning Objectives

1. Define law and explain how it differs from a legal system.
2. Explain the concept of the rule of law and discuss the role of flexibility and fairness in a legal system governed by the rule of law.
3. Discuss the primary functions of law in the United States.
4. Distinguish between criminal law and civil law, and understand the roles of plaintiffs and defendants in both criminal and civil cases.
5. Define a tort, explain tort law, and discuss an intentional tort.
6. Define a negligence tort and discuss the elements of a negligence claim.
7. Explain a contract and discuss the requirements of an enforceable contract.
8. Explain the concepts of respondeat superior and scope of employment and discuss their roles in an employment contract.
9. Define product liability and discuss the three grounds, or “theories of recovery,” for a claim of product liability.
10. Discuss the three forms of manufacturer’s negligence that may be claimed in a product-liability case.
11. Define strict liability and explain the doctrine of strict liability in tort.
12. Define a warranty and distinguish between express warranties and implied warranties.
13. Identify the primary goal of tort law and distinguish between compensatory damages and punitive damages.
14. Explain the difference between private law and public law.
15. Define statutory law and give examples of statutory laws at various governmental levels.
16. Explain externalities and show why taxation is used as a means of addressing them.
17. Discuss the idea of market failure and the principle of efficiency as a foundation of law.
18. Define administrative law and discuss the role of federal administrative agencies in making and enforcing administrative laws.
19. Define case law and explain the concepts of precedent and judicial review.