Chapter 1 Law as a Foundation for Business Learning Objectives The purpose of this chapter is to introduce the students to the subject of law and to some classifications of its subject matter. In addition, it is designed to instill in them respect for the role of the ―rule of law‖ in the society and that the judicial system is the most important stabilizing force in society. It should create an awareness that law is a foundation for the private market and ―property‖ as a legal concept underpins that market and contributes to the maximum wealth of nations through productivity. This chapter also describes stare decisis, basic sources of the American law, and sanctions that can be imposed when the law is not followed. References  Bethell, Tom, The Noblest Triumph (1999).  Bernstein, William J., The First of Plenty. McGraw-Hill (2004).  Driegel, Blandine, The State and the Rule of Law. Princeton U. Press (1995).  Friedman, Lawrence M., American Law, 2d ed. Norton (1998).  Harnett, Bertram, Law, Lawyers and Laymen: Making Sense of the American Legal System. San Diego: Harcourt Brace Jovanovich (1984).  Helpman, Elhanan, The Mystery of Economic Growth. Belknap Press (2004).  Holmes, The Common Law. Little, Brown and Company (1922).  Kelman, M., A Guide to Critical Legal Studies. Harvard (1988).  Pound, An Introduction to the Philosophy of Law. Yale University Press (1922).  Reed, O. Lee, ―Law, the Rule of Law, and Property,‖ American Business Law Journal, Vol. 38 (2001).  Reed, O. Lee, ―Nationbuilding 101: Reductionism in Property, Liberty, and Corporate Governance,‖ 36 Vanderbilt Journal of Transitional Law 673 (2003).  The Spirit of the Common Law. Marshall Jones Co. (1921).