IBM_280_Lecture Notes_01.pdf Business law

Business Law

1. Buiness Law
Chapter 1
Introduction to
Business Law
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2. Learning objectives
After study this chapter, students are able to:
1.Understand the certain words and legal meaning.
2.Understand the legal framework of business.
3.Understand legal environment of business.
4.Explain concept of business ethics and social responsibility.
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3. Words and Leagal Meaning
Thing
is a corporeal object that have a form, shape appearance and it is tangible.
➢Ex: table, car, land.

Property
➢includes things and incorporeal objects that have a value.
➢can be appropriated, carried or possessed.
➢Can be tangible or intangible
➢Ex: land, copyright, trademark
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4. Words and Leagal Meaning
Fruits
1)a natural fruit:
➢a natural offspring of
➢Ex: apples, lemons
2)a legal fruit:
➢ interest or thing obtained periodically by
someone from another person’s use of things.
➢ Ex: interest from rent of or dividend from
investment.
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5. Words and
Leagal
Meaning
Person
1) Natural person:
➢a human person
2)Juristic person
➢a non-human that comes into existence by virtue of the
law
➢Ex: a foundation, an association, a company limited.
Right
benefits that are verified and protected by the law.
1)Personal rights
2)Real right
➢rights in property
➢Ex: a contract by two parties agreeing to provide for
real rights in property. 5

6. Legal Framework of Business
Legal Framework of a Business:
➢Definition: The set of laws and regulations that govern business
operations.
- Key Components:
1) Corporate Law: Rules on company formation, management, and
shareholder rights.
2) Contract Law: Governs agreements, covering offer, acceptance,
consideration, and breaches.
3) Employment Law: Regulates the relationship between employers and
employees.
➢ Importance: Ensures legal compliance, protects stakeholders, and
maintains fair competition.
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7. Legal Environmenmt of Business
➢Business environment is
➢based on a set of conditions, and those are social, legal,
political, economic and institutional conditions.
➢Legal environment of business based on two different positions:
1)Internal environment
❖Internal factors of business includes manpower, capital,
machinery, raw materials, and management.
2)External environment
❖External factor of business are beyond the control
includes tax, legal, and economics.
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8. Business Ethics and
Responsibility
Business Ethics and Responsibility
❑ important issues for companies to consider when making
decisions.
❑a business’s duty to make ethical decisions that positively
impact society.
❑How companies conduct themselves in their practices and
policies and focus on doing what is best for shareholders and
stakeholders.
❑ Benefits of following basic busienss ethics: self-study

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9. Assignment Chapter 1
1.What the difference between “Thing” and “Property”?
2.Explain concept of “Legal Fruit”.
3.Explain a reason why knowing business framework is
important?
4.Explain concepts of “internal” and ”external” business
environment.
5.Discuss three benefits of following basic “business
ethics”.
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10. References
1.Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social
responsibility: A review of concepts, research and practice. International Journal
of Management Reviews, 12(1), 85-105.
2.Cheeseman, H. R. (2019). Business law (10th ed.). Pearson.
3.Crane, A., & Matten, D. (2019). Business ethics: Managing corporate citizenship
and sustainability in the age of globalization (5th ed.). Oxford University Press.
4.Mallor, J. P., Barnes, A. J., Bowers, T., & Langvardt, A. W. (2018). Business law: The
ethical, global, and e-commerce environment (17th ed.). McGraw-Hill.
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