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Ch. 1- 2

THE LEGAL ENVIRONMENT OF BUSINESS. CHAPTER 1. Critical Thinking and Legal Reasoning. Ch. 1- 2. © 2006 Prentice Hall. The Importance of Critical Thinking. Definition: Understand the argument Apply evaluative criteria Assess the quality of the reasoning.

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Ch. 1- 2

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  1. THE LEGAL ENVIRONMENT OF BUSINESS CHAPTER 1 Critical Thinking and Legal Reasoning Ch. 1-2 © 2006 Prentice Hall

  2. The Importance of Critical Thinking Definition: • Understand the argument • Apply evaluative criteria • Assess the quality of the reasoning

  3. The Demand for Better Critical Thinking Skills: Competitive Pressure Business Ethics Understanding the Law

  4. Legal Reasoning • Reasoning with a purpose Conclusion – A position or stance on an issue toward which reasoning moves

  5. A Critical Thinking Model United States of America v. Martha Stewart and Peter Bacanovic United States District Court for the Southern District of New York

  6. The Critical Thinking StepsThe Eight Steps to Legal Reasoning 8. Is there relevant missing information? 7. How appropriate are the legal analogies? 6. What ethical norms are fundamental to the court's reasoning? 5. Does the legal argument contain significant ambiguity? 4. What are the relevant rules of law? 3. What are the reasons and conclusion? 2. What is the issue? 1. What are the facts? © 2006 Prentice Hall Ch. 1-7

  7. Facts Martha Stewart sold stocks on 12/27/01 ImClone announced FDA rejection on 12/28/01 Stewart and Bacanovic convicted Expert witness accused of perjury Perjury should be grounds for new trial

  8. Reasons and Conclusion Under Rule 33, perjury is not sufficient basis for new trial, unless Government knew about it The perjured testimony was material Without the testimony acquittal was likely Conclusion Here, defendants did not show evidence of these conditions The jury would have still convicted Therefore, motion for a new trial is Denied.

  9. Rules of Law Rule 33 and Regulations United States v. Wallach Case Law

  10. Examples from the case: “interests of justice” “reasonable likelihood” Ambiguity – Capable of having more than one meaning

  11. Clarifying the Primary Ethical Norms ETHICAL NORM FORMS Freedom • To act without restriction from rules imposed by others. • To possess the capacity or resources to act as one wishes. Security • To possess a large enough supply of goods and services that basic needs are met. • To be safe from those wishing to interfere with your property rights. • To achieve the psychological condition of self-confidence such that risks are welcomed. Justice • To receive the product of your labor. • To treat all humans identically, regardless of class, race, gender, age, and so on. • To provide resources in proportion to need. • To possess anything that someone else was willing to grant you. Efficiency • To maximize the amount of wealth in our society. • To get the most from a particular input. • To minimize costs. © 2003 Prentice Hall Ch. 1-12

  12. Analogies Is the strength of the independent evidence found in the Stewart case equivalent to that in the Wallach case?

  13. Missing Information • Was the jury’s verdict affected by the perjured testimony? • What was the congressional intent behind Rule 33? • Are there any similar cases in which the court has ruled differently?

  14. Using Critical Thinking to Make Legal Reasoning Come Alive 1. Facts: Just the Relevant Facts 2. Issue: The Question of the Case 3. Reasons and Conclusion: The Answer 4. RelevantRules of Law: The Legal Context 5. Ambiguity: The Limits of Words 6. Ethical Norms: The Basis for Evaluation 7. Legal Analogies: The Role of Precedent 8. Missing Information: Practical Limits

  15. Applying the Critical Thinking Approach • Use systematic, methodical approach • Apply to all cases you read • Apply also to other news and editorial pieces

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