Today we explored the distinction between corporate ethics and legal obligations. We noted how businesses that create an internal corporate code of ethics may do so for their own business interests . For example , to project an image of environmental consciousness, a business may purchase electric vehicles even though not legally required. We discussed various examples of ethical codes and ethical conduct such as a company bearing the cost of a voluntary recall in order to gain consumer approval . Last, we addressed the role of whistleblowers who report unethical or illegal conduct to the government.
We first completed review exercises on Chapter 1 addressing legal terminology such as : trial court, appellate court, original jurisdiction, diversity jurisdiction, precedent etc. Then we reviewed some actual case facts and Kaitlin , acting as judge, voiced how and why she would decide two cases of statutory construction . This exercise provides the opportunity for lively class discussion and application of the principles studied.
We first explored the structure of the federal court system: 94 District Courts, 13 Courts of Appeal , and the US Supreme Court. I then provided definitions for plaintiff, defendant, and jurisdiction. Last, Kaitlin completed a review exercise based on this week's lessons that reinforced sources of law, and types of law. I provided review and assistance where needed . Kaitlin is doing well considering most of these terms and definitions are quite new to her.
For our introductory session, I addressed common sources of the law: legislation, the Constitution, and in federal matters, presidential executive orders. We discussed how each can impact the operation and profitability of a business. We further noted examples of state and local law in operating a business, for example licensing , authority to form or operate a business entity such as an LLC or corporation,(state law) and zoning(local law).
After addressing the impact of federalism on the court system, we continued to study the sources of law: statutory, case law(precedent) and administrative law. We explored the controversial delegation of regulatory authority to administrative agences such as the EPA and the SEC and the recent US Supreme Court cases limiting agency (administrative) authority to impose fines and to establish environmental standards. Regarding statutory law, I explained the role of the UCC in business and how the UCC supplants case law regarding the sale of goods.
