This course deals with the American legal system, torts, contracts, agency, sales, property, negotiable instruments and business organizations. Special emphasis is on contemporary business ethics. Upon completion, students should be able to apply ethical issues and laws covered to selected business decision-making situations.


Business Law provides a comprehensive study of the relationship between business and the law. It is a fundamental business discipline. The study of business law study allows you to develop a broader perspective on the business and regulatory landscape as well as developing the proficiency that should enrich your business career and help you lay a foundation for successful postgraduate studies in business and law.

It begins with a study of the American legal system and will teach students the basic legal concepts related to substantive and procedural law. It introduces the student to cases, statutes, the Constitution, and the court process and conflict resolution using alternative dispute resolution principles. The course includes the topics of business ethics, Constitutional law principles, contractual concepts, the Uniform Commercial Code, the variety of ways in which a business may be legally organized and financed, agency and employment, torts and product liability, consumer protection, and intellectual property.

There are no Prerequisites or Corequisites for this course.

Germano, Michael P.

President of the University
Full Time
B.S. (1959), University of Illinois, Urbana-Champaign; B.A. (1961), Ambassador University; M.A. (2000), Texas A&M University-College Station; M.S. (1966), Ed.D. (1968), University of Southern California; J.D. (1980), University of La Verne.
Subject Matter: 
Anthropology/Archaeology, Professional Education, Theology

Dr. Germano brings over forty years of professional experience in educational leadership, teaching, corporate and business law, entrepreneurship, and institutional advancement initiatives to the LU presidency. He is a member of the California State Bar and was admitted to practice in the federal district courts of Southern California and East Texas. He taught business law at West Coast University (Los Angeles) and at Ambassador University (Big Sandy, Texas). Affiliated with Ambassador University (formerly Ambassador College) since 1959, he served as chief academic officer at two of its campuses. He left Ambassador as a professor emeritus in 1997 and completed a master's degree in archaeology/anthropology at Texas A&M in 2000. He then left retirement to serve several years as the chief academic officer at Haywood Community College at Clyde, North Carolina. He held responsibilities in AU's involvement in archaeological excavations at Jerusalem's south Temple Mount directed by Benjamin Mazar, the Jordan Umm el-Jimal Project directed by Bert de Vries, the Syria Mozan Expedition directed by Giorgio Buccellati and Marilyn Kelly-Buccellati, and the northern Israel Hazor Excavations in memory of Yigael Yadin directed by Amnon Ben-Tor. Ordained in 1983, Dr. Germano is an elder in the Living Church of God.

Course Credit: 
Three (3) semester credit hours
Instructional Objectives: 

On successful completion of this course, a student should be able to:

  1. Know the basic operation of the Courts, and be able to apply real fact situations to and through the court system while formulating and evaluating possible causes of action and defenses;
  2. Comprehend basics concerning the legal, ethical, and international environment in which business function;
  3. Analyze the many ways in which business activities are affected by laws and regulations;
  4. Identify and apply legal basics concerning: civil law, torts, constitutional law, administrative law, contracts, product liability law, principal/agent law, employment law, antitrust law, securities law, unfair and deceptive trade practices law, landowner liability, and international law; and
  5. Define key terms.

NOT LEGAL ADVICE: The information covered in this course does not constitute legal advice or the giving of a legal opinion. Nothing provided herein should be used as a substitute for the advice of your own legal counsel.

Required Texts: 

Jennings, Marianne M. Business: Its Legal, Ethical, and Global Environment. 10th ed. Stamford, CT: Cengage Learning, 2014. ISBN 978-1285428260.

Course Calendar: 

Lesson 1 Business: Its Legal, Ethical, and Judicial Environment

Topic 1 Introduction to Law
Topic 2 Business Ethics and Social Responsibility
Topic 3 The Judicial System
Topic 4 Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Lesson 2 Business: Its Regulatory Environment

Topic 1 Business and the Constitution
Topic 2 Administrative Law
Topic 3 International Law
Topic 4 Business Crime

Lesson 3 Business Torts

Topic 1 Intentional Torts
Topic 2 Negligence
Topic 3 Product Liability
Topic 4 Cyberlaw, Social Media, and Privacy

Lesson 4 Business Sales, Contracts, and Competition

Topic 1 Contracts and Sales: Introduction and Formation
Topic 2 Contracts: Performance, Remedies, and Rights
Topic 3 Sales: Product Advertising and Liability
Topic 4 Products: Business Intellectual Property

Lesson 5 Business Management and Governance

Topic 1 Management of Employee Conduct: Agency
Topic 2 Governance and Structure: Forms of Doing Business
Topic 3 Governance and Regulation: Securities Law
Topic 4 Management: Employee Welfare and Employment Discrimination

Course Requirements: 

Due dates and extensions:
Submit assignments on or before the due date. Students must complete the course by the last official day of instruction as set forth in the academic calendar.

Icebreaker assignment:
To officially begin this course you must complete an Icebreaker assignment by which you introduce yourself to your classmates through posting a short autobiography on the course discussion forum. A student can earn 30 points by posting the Icebreaker assignment on time.

Discussion forums:
Each lesson will have an associated discussion question posted by the instructor. Student will be required to post online comments to the discussion thread and interact with fellow classmates.

Writing assignments:
Any writing assignments in this course, such as your "What I Learned" essay, should follow the MLA style as set forth in Writing Research Papers: A Complete Guide by Lester & Lester. Please cite your sources and use quotation marks where needed. The Files feature on an Assignment Submission webpage lets you submit your work so your instructor can have it handy for download, review, and grading.

Quizzes and examinations:
There are no quizzes in this course. There are five online exams in this course of no more than 50 objective questions each. The first exam is open book and open notes to give you a sense of the business law test. Exams 2-5 are closed book and closed notes. Exam 5 is a proctored exam to be taken online. A proctored exam is one that is overseen by an impartial individual ()called a proctor) who monitors or supervised a student while he or she is taking an exam. The proctor ensures the integrity of the exam process for all involved.

Course evaluation:
By completing this assessment at the end of the semester, you can earn 30 points toward your final grade.

A course grade will be determined based on the number of points a student has earned over the semester as follows:

Icebreaker Assignment (30 points)
Discussions (five, each worth 10 points for a total of 50 points)
Exams (five, each worth 100 points, for a total of 500 points; all five exams are online; the first exam is open book and open notes to give you a sense of a business law test. The other four are closed book and closed-notes). Only Exams 5 is a proctored exam.
“What I Learned” Essay (40 points)
Course Evaluation (30 points)
TOTAL 650 points

Grades are in the traditional American style of an A, B, C, D, or F. In distance learning, we believe that the measure of mastery of course subject matter is completion of 80% of the objectives for a course. That means that we want students to earn at least 800 points in this course. If they do not do so then they have not achieved the level of the mastery we would like them to have. We want this course to be competency-based and so it is possible for the entire class to receive an A or a B. There is no artificial curving of scores in the assignment of grades. Mastery of the material is what one’s goal should be.

Grades, assignned by points, are as  follows:

A   585-650 points
B   520-584 points
C   455-519 points
D   390-454 points
F   Below 360 points

Students With Disabilities
The Americans with Disabilities Act (ADA) is a federal anti-discrimination statute that provides comprehensive civil rights protection for persons with disabilities. Among other things, this legislation requires that all students with disabilities have a learning environment that provides for reasonable accommodation of their disabilities. Students having a disability requiring an accommodation should inform the instructor by email (on the “Course Info” page click on the instructor’s name and then select “Send Email”).

Technology Access
This course requires web access and the student has to have an established e-mail account. The Adobe Acrobat Reader is necessary to view documents that are PDF files. One can download the reader free at

Course Evaluation
Student input is welcome for improving this course. Making suggestions by e-mail is helpful. Our goal in this course is to facilitate the successful achievement of all instructional objectives by all students. At the end of the course students have the opportunity of assessing the course. We want to make e-learning courses as effective as we can. We may also ask some other questions concerning a student’s experience in distance learning to help us improve our program. We appreciate students letting us know how we can improve our products and services for them and other distance learners.

Withdrawing From or Dropping This Course
It is the responsibility of a student to drop a course if he or she cannot meet the requirements of the course. Any student who stops attending a course without officially withdrawing from it risks receiving a punitive grade for that course. Withdrawal requests may be conveyed in any manner to the course professor, Registrar, or Vice President of Academic Affairs. This action is sufficient for ensuring any refund owed you. Please note the following: If a student drops a course on or before the “Last day to withdraw from a course without a grade penalty” as published in the University Academic Calendar, even if his or her work is not of a passing grade, then a “W” is recorded. If a course is dropped after that date, but before the last 21 calendar days of the semester, then the instructor determines the grade. The faculty member will at this time record a grade of “W” if passing (not computed in GPA) or “WF” if failing (computed in GPA). Students who drop a course, yet remain in one or more other courses during the last 18 calendar days of the semester, will receive a grade of “WF.” Students who completely withdraw from the University at any time during the semester may be given a grade of “W” on all courses. If students do not initiate the withdrawal process, the instructor is required to initiate the administrative process and to record a grade of “W” or “WF” for the course depending on the date the faculty member drops the student from the course. Students who register for a course as an audit, but then withdraw will be assigned a grade of “W” for the course.