Business Law: Text and Cases

Front Cover......Page 1
Title Page......Page 4
Copyright......Page 5
Contents in Brief
......Page 6
Contents......Page 8
UNIT 1 The Legal Environment of Business......Page 42
Schools of Jurisprudential Thought......Page 43
Business Activities and the Legal Environment......Page 45
Sources of American Law......Page 47
The Common Law Tradition......Page 48
The Common Law Today......Page 54
Classifications of Law......Page 55
How to Find Primary Sources of Law......Page 56
How to Read and Understand Case Law......Page 62
TERMS AND CONCEPTS......Page 68
QUESTIONS AND CASE PROBLEMS......Page 69
LEGAL RESEARCH EXERCISES ON THE WEB......Page 70
The Judiciary's Role in American Government......Page 71
Basic Judicial Requirements......Page 72
CASE 2.1 Mastondrea v. Occidental Hotels Management S.A.......Page 73
The State and Federal Court Systems......Page 78
Alternative Dispute Resolution......Page 82
CASE 2.2 Buckeye Check Cashing, Inc.v. Cardegna......Page 85
EXTENDED CASE 2.3 Morrison v. Circuit City Stores, Inc.......Page 87
International Dispute Resolution......Page 89
TERMS AND CONCEPTS......Page 90
QUESTIONS AND CASE PROBLEMS......Page 91
LEGAL RESEARCH EXERCISES ON THE WEB......Page 93
Procedural Rules......Page 94
Pretrial Procedures......Page 96
EXTENDED CASE 3.1 Cruz v.Fagor America, Inc.......Page 99
CASE 3.2 Computer Task Group, Inc.v. Brotby......Page 103
The Trial......Page 107
CASE 3.3 Novak v.Tucows, Inc.......Page 109
Posttrial Motions......Page 111
The Appeal......Page 112
Enforcing the Judgment......Page 113
TERMS AND CONCEPTS......Page 114
QUESTIONS AND CASE PROBLEMS......Page 115
SPECIAL CASE ANALYSIS: CRUZ V. FAGOR AMERICA, INC.......Page 116
LEGAL RESEARCH EXERCISES ON THE WEB......Page 117
The Constitutional Powers of Government......Page 118
CASE 4.1 Granholm v.Heald......Page 121
Business and the Bill of Rights......Page 124
CASE 4.2 Bad Frog Brewery, Inc.v.New York State Liquor Authority......Page 128
EXTENDED CASE 4.3 Lott v.Levitt......Page 129
Due Process and Equal Protection......Page 133
Privacy Rights......Page 135
TERMS AND CONCEPTS......Page 136
QUESTIONS AND CASE PROBLEMS......Page 137
SPECIAL CASE ANALYSIS: LOTT V. LEVITT......Page 138
LEGAL RESEARCH EXERCISES ON THE WEB......Page 139
Business Ethics......Page 140
EXTENDED CASE 5.1 Baum v. Blue Moon Ventures, LLC......Page 142
Approaches to Ethical Reasoning......Page 144
CASE 5.2 Fog Cutter Capital Group, Inc.v. Securities and Exchange Commission......Page 145
How the Law Influences Business Ethics......Page 147
CASE 5.3 Guin v. Brazos Higher Education Service Corp.......Page 150
Making Ethical Business Decisions......Page 151
Business Ethics on a Global Level......Page 152
TERMS AND CONCEPTS......Page 154
QUESTIONS AND CASE PROBLEMS......Page 155
LEGAL RESEARCH EXERCISES ON THE WEB......Page 157
FOCUS ON ETHICS: ETHICS AND THE LEGAL ENVIRONMENT OF BUSINESS......Page 158
UNIT 2 Torts and Crimes......Page 162
The Basis of Tort Law......Page 163
Intentional Torts against Persons......Page 164
CASE 6.1 Anderson v.Mergenhagen......Page 169
Business Torts......Page 172
Intentional Torts against Property......Page 174
EXTENDED CASE 6.2 Register.com, Inc.v. Verio, Inc.......Page 175
Cyber Torts......Page 177
CASE 6.3 Fair Housing Council of San Fernando Valley v.Roommate.com, LLC......Page 178
TERMS AND CONCEPTS......Page 181
QUESTIONS AND CASE PROBLEMS......Page 182
LEGAL RESEARCH EXERCISES ON THE WEB......Page 184
Negligence......Page 185
CASE 7.1 Izquierdo v. Gyroscope, Inc.......Page 186
CASE 7.2 Palsgraf v. Long Island Railroad Co.......Page 189
Defenses to Negligence......Page 190
EXTENDED CASE 7.3 Sutton v.Eastern New York Youth Soccer Association, Inc.......Page 191
Special Negligence Doctrines and Statutes......Page 193
Strict Liability......Page 194
TERMS AND CONCEPTS......Page 195
QUESTIONS AND CASE PROBLEMS......Page 196
LEGAL RESEARCH EXERCISES ON THE WEB......Page 197
Trademarks and Related Property......Page 198
CASE 8.1 The Coca-Cola Co.v.The Koke Co. of America......Page 199
CASE 8.2 Menashe v.V Secret Catalogue, Inc.......Page 202
Cyber Marks......Page 205
Patents......Page 208
EXTENDED CASE 8.3 KSR International Co.v. Teleflex Inc.......Page 209
Copyrights......Page 212
Copyrights in Digital Information......Page 213
CASE 8.4 Sony BMG Music Entertainment v. Villarreal......Page 217
Trade Secrets......Page 219
International Protection for Intellectual Property......Page 220
TERMS AND CONCEPTS......Page 221
QUESTIONS AND CASE PROBLEMS......Page 222
LEGAL RESEARCH EXERCISES ON THE WEB......Page 224
Civil Law and Criminal Law......Page 225
Classification of Crimes......Page 226
Criminal Liability......Page 227
Types of Crimes......Page 229
CASE 9.1 United States v.Lyons......Page 231
Defenses to Criminal Liability......Page 234
EXTENDED CASE 9.2 Fellers v. United States......Page 239
CASE 9.3 Miranda v.Arizona......Page 241
Cyber Crime......Page 245
TERMS AND CONCEPTS......Page 248
QUESTIONS AND CASE PROBLEMS......Page 249
LEGAL RESEARCH EXERCISES ON THE WEB......Page 251
FOCUS ON ETHICS: ETHICS AND TORTS AND CRIMES......Page 252
UNIT 3 Contracts and E-Contracts......Page 256
An Overview of Contract Law......Page 257
Elements of a Contract......Page 258
Types of Contracts......Page 259
CASE 10.1 Ardito v. City of Providence......Page 260
CASE 10.2 Gary Porter Construction v. Fox Construction, Inc.......Page 262
Quasi Contracts......Page 265
Interpretation of Contracts......Page 266
EXTENDED CASE 10.3 Wagner v. Columbia Pictures Industries, Inc.......Page 267
REVIEWING: NATURE AND TERMINOLOGY......Page 269
QUESTIONS AND CASE PROBLEMS......Page 270
LEGAL RESEARCH EXERCISES ON THE WEB......Page 272
Requirements of the Offer......Page 273
CASE 11.1 Lucy v. Zehmer......Page 274
CASE 11.2 Trell v. American Association of the Advancement of Science......Page 276
EXTENDED CASE 11.3 Baer v. Chase......Page 278
Termination of the Offer......Page 280
Acceptance......Page 283
TERMS AND CONCEPTS......Page 287
QUESTIONS AND CASE PROBLEMS......Page 288
LEGAL RESEARCH EXERCISES ON THE WEB......Page 290
CASE 12.1 Hamer v. Sidway......Page 291
CASE 12.2 Barfield v. Commerce Bank, N.A.......Page 293
Adequacy of Consideration......Page 294
Agreements That Lack Consideration......Page 295
EXTENDED CASE 12.3 Blackmon v. Iverson......Page 296
Settlement of Claims......Page 298
Exceptions to the Consideration Requirement......Page 300
REVIEWING: CONSIDERATION......Page 302
QUESTIONS AND CASE PROBLEMS......Page 303
LEGAL RESEARCH EXERCISES ON THE WEB......Page 305
Contractual Capacity......Page 306
EXTENDED CASE 13.1 Yale Diagnostic Radiology v. Estate of Harun Fountain......Page 308
Legality......Page 312
CASE 13.2 Stultz v. Safety and Compliance Management, Inc.......Page 315
CASE 13.3 Thibodeau v. Comcast Corp.......Page 318
TERMS AND CONCEPTS......Page 323
QUESTIONS AND CASE PROBLEMS......Page 324
LEGAL RESEARCH EXERCISES ON THE WEB......Page 326
Mistakes......Page 327
EXTENDED CASE 14.1 Roberts v. Century Contractors, Inc.......Page 328
CASE 14.2 Vokes v. Arthur Murray, Inc.......Page 331
Undue Influence......Page 336
Adhesion Contracts and Unconscionability......Page 337
CASE 14.3 Simpson v. MSA of Myrtle Beach, Inc.......Page 338
REVIEWING: MISTAKES, FRAUD, AND VOLUNTARY CONSENT......Page 340
QUESTIONS AND CASE PROBLEMS......Page 341
LEGAL RESEARCH EXERCISES ON THE WEB......Page 343
Contracts That Fall within the Statute of Frauds......Page 344
EXTENDED CASE 15.1 Sawyer v. Mills......Page 346
CASE 15.2 School-Link Technologies, Inc. v. Applied Resources, Inc.......Page 350
Sufficiency of the Writing......Page 351
The Parol Evidence Rule......Page 353
CASE 15.3 Yocca v. Pittsburgh Steelers Sports, Inc.......Page 354
The Statute of Frauds in the International Context......Page 357
REVIEWING: THE STATUTE OF FRAUDS—WRITING REQUIREMENT......Page 358
QUESTIONS AND CASE PROBLEMS......Page 359
LEGAL RESEARCH EXERCISES ON THE WEB......Page 361
Assignments and Delegations......Page 362
CASE 16.1 Martha Graham School and Dance Foundation, Inc. v. Martha Graham Center of Contemporary Dance, Inc.......Page 364
Third Party Beneficiaries......Page 369
EXTENDED CASE 16.2 Midwestern Indemnity Co. v. Systems Builders, Inc.......Page 370
CASE 16.3 Revels v. Miss America Organization......Page 372
TERMS AND CONCEPTS......Page 374
QUESTIONS AND CASE PROBLEMS......Page 375
LEGAL RESEARCH EXERCISES ON THE WEB......Page 377
Conditions......Page 378
Discharge by Performance......Page 379
EXTENDED CASE 17.1 Jacob & Youngs v. Kent......Page 380
CASE 17.2 Shah v. Cover-It, Inc.......Page 382
Discharge by Agreement......Page 385
Discharge by Operation of Law......Page 386
CASE 17.3 Facto v. Pantagis......Page 388
REVIEWING: PERFORMANCE AND DISCHARGE......Page 390
QUESTIONS AND CASE PROBLEMS......Page 391
LEGAL RESEARCH EXERCISES ON THE WEB......Page 393
Damages......Page 394
CASE 18.1 Hadley v. Baxendale......Page 396
EXTENDED CASE 18.2 Hanson v. Boeder......Page 398
Rescission and Restitution......Page 400
CASE 18.3 Stainbrook v. Low......Page 401
Recovery Based on Quasi Contract......Page 403
Election of Remedies......Page 404
Waiver of Breach......Page 405
Contract Provisions Limiting Remedies......Page 406
QUESTIONS AND CASE PROBLEMS......Page 407
LEGAL RESEARCH EXERCISES ON THE WEB......Page 410
Online Contract Formation......Page 411
CASE 19.1 Feldman v. Google, Inc.......Page 412
CASE 19.2 Mortgage Plus, Inc. v. DocMagic, Inc.......Page 415
E-Signatures......Page 417
EXTENDED CASE 19.3 Amber Chemical, Inc. v. Reilly Industries, Inc.......Page 419
The Uniform Electronic Transactions Act......Page 422
TERMS AND CONCEPTS......Page 424
QUESTIONS AND CASE PROBLEMS......Page 425
LEGAL RESEARCH EXERCISES ON THE WEB......Page 427
FOCUS ON ETHICS: CONTRACT LAW AND THE APPLICATION OF ETHICS......Page 428
UNIT 4 Domestic and International Sales and Lease Contracts......Page 432
The Uniform Commercial Code......Page 433
The Scope of Article 2—The Sale of Goods......Page 434
CASE 20.1 Hammer v.Thompson......Page 437
The Formation of Sales and Lease Contracts......Page 439
CASE 20.2 Sun Coast Merchandise Corp. v. Myron Corp.......Page 443
EXTENDED CASE 20.3 Jones v. Star Credit Corp.......Page 449
Contracts for the International Sale of Goods......Page 451
TERMS AND CONCEPTS......Page 454
QUESTIONS AND CASE PROBLEMS......Page 455
LEGAL RESEARCH EXERCISES ON THE WEB......Page 457
Appendix to Chapter 20: An Example of Contract for the International Sales of Coffee......Page 458
Identification......Page 462
When Title Passes......Page 463
CASE 21.1 Empire Fire and Marine Insurance Co. v. Banc Auto, Inc.......Page 464
CASE 21.2 Lindholm v. Brant......Page 466
Risk of Loss......Page 468
EXTENDED CASE 21.3 Spray-Tek, Inc. v. Robbins Motor Transportation, Inc.......Page 469
Insurable Interest......Page 474
QUESTIONS AND CASE PROBLEMS......Page 475
LEGAL RESEARCH EXERCISES ON THE WEB......Page 477
Performance Obligations......Page 478
Obligations of the Seller or Lessor......Page 479
CASE 22.1 Maple Farms, Inc. v. City School District of Elmira......Page 482
Anticipatory Repudiation......Page 484
Remedies of the Seller or Lessor......Page 486
Remedies of the Buyer or Lessee......Page 488
CASE 22.2 Jauregui v. Bobb’s Piano Sales & Service, Inc.......Page 489
EXTENDED CASE 22.3 Fitl v. Strek......Page 491
Dealing with International Contracts......Page 493
REVIEWING: PERFORMANCE AND BREACH OF SALES AND LEASE CONTRACTS......Page 495
QUESTIONS AND CASE PROBLEMS......Page 496
LEGAL RESEARCH EXERCISES ON THE WEB......Page 498
Types of Warranties......Page 499
CASE 23.1 Shoop v. DaimlerChrysler Corp.......Page 502
CASE 23.2 Webster v. Blue Ship Tea Room, Inc.......Page 504
Overlapping Warranties......Page 506
Warranty Disclaimers and Limitations on Liability......Page 508
Product Liability......Page 509
Strict Product Liability......Page 510
EXTENDED CASE 23.3 Crosswhite v. Jumpking, Inc.......Page 513
Defenses to Product Liability......Page 516
QUESTIONS AND CASE PROBLEMS......Page 518
LEGAL RESEARCH EXERCISES ON THE WEB......Page 521
FOCUS ON ETHICS: DOMESTIC AND INTERNATIONAL SALES AND LEASE CONTRACTS......Page 522
UNIT 5 Negotiable Instruments......Page 526
Articles 3 and 4 of the UCC......Page 527
Types of Negotiable Instruments......Page 528
Requirements for Negotiability......Page 531
EXTENDED CASE 24.1 Gowin v. Granite Depot, LLC......Page 535
CASE 24.2 Foundation Property Investments, LLC v. CTP, LLC......Page 537
REVIEWING: THE FUNCTION AND CREATION OF NEGOTIABLE INSTRUMENTS......Page 541
QUESTIONS AND CASE PROBLEMS......Page 542
LEGAL RESEARCH EXERCISES ON THE WEB......Page 544
Negotiation......Page 545
Indorsements......Page 546
Miscellaneous Indorsement Problems......Page 549
EXTENDED CASE 25.1 Hyatt Corp. v. Palm Beach National Bank......Page 550
CASE 25.2 Graves v. Johnson......Page 552
Holder versus Holder in Due Course......Page 553
Requirements for HDC Status......Page 554
CASE 25.3 Mid Wisconsin Bank v. Forsgard Trading, Inc.......Page 555
Holder through an HDC......Page 559
REVIEWING: TRANSFERABILITY AND HOLDER IN DUE COURSE......Page 560
QUESTIONS AND CASE PROBLEMS......Page 561
LEGAL RESEARCH EXERCISES ON THE WEB......Page 563
Signature Liability......Page 564
Warranty Liability......Page 571
CASE 26.1 Wachovia Bank, N.A. v. Foster Bancshares, Inc.......Page 573
Defenses......Page 574
EXTENDED CASE 26.2 Keesling v.T.E.K. Partners, LLC......Page 576
Discharge......Page 580
REVIEWING: LIABILITY, DEFENSES, AND DISCHARGE......Page 581
QUESTIONS AND CASE PROBLEMS......Page 582
LEGAL RESEARCH EXERCISES ON THE WEB......Page 584
Checks......Page 585
Honoring Checks......Page 587
CASE 27.1 Nesper v. Bank of America......Page 590
Accepting Deposits......Page 595
CASE 27.2 Bank One, N.A. v. Dunn......Page 598
EXTENDED CASE 27.3 NBT Bank, N.A. v. First National Community Bank......Page 600
Electronic Fund Transfers......Page 603
E-Money and Online Banking......Page 604
REVIEWING: CHECKS AND BANKING IN THE DIGITAL AGE......Page 607
QUESTIONS AND CASE PROBLEMS......Page 608
SPECIAL CASE ANALYSIS: NBT BANK, N.A. V. FIRST NATIONAL COMMUNITY BANK......Page 609
LEGAL RESEARCH EXERCISES ON THE WEB......Page 610
FOCUS ON ETHICS: NEGOTIABLE INSTRUMENTS......Page 611
UNIT 6 Creditors' Rights and Bankruptcy......Page 614
Laws Assisting Creditors......Page 615
CASE 28.1 Indiana Surgical Specialists v. Griffin......Page 617
Suretyship and Guaranty......Page 619
EXTENDED CASE 28.2 JSV, Inc. v. Hene Meat Co., Inc.......Page 621
REVIEWING: CREDITORS' RIGHTS AND REMEDIES......Page 623
QUESTIONS AND CASE PROBLEMS......Page 624
LEGAL RESEARCH EXERCISES ON THE WEB......Page 626
The Terminology of Secured Transactions......Page 627
Creating a Security Interest......Page 628
Perfecting a Security Interest......Page 629
EXTENDED CASE 29.1 Corona Fruits & Veggies, Inc. v.Frozsun Foods, Inc.......Page 633
The Scope of a Security Interest......Page 636
Priorities......Page 638
CASE 29.2 Heartland Bank v. National City Bank......Page 639
Default......Page 643
CASE 29.3 Layne v. Bank One, Kentucky, N.A.......Page 645
REVIEWING: SECURED TRANSACTIONS......Page 648
QUESTIONS AND CASE PROBLEMS......Page 649
SPECIAL CASE ANALYSIS: CORONA FRUITS & VEGGIES, INC. V. FROZSUN FOODS, INC.......Page 650
LEGAL RESEARCH EXERCISES ON THE WEB......Page 651
Bankruptcy Proceedings......Page 652
Liquidation Proceedings......Page 653
EXTENDED CASE 30.1 Hebbring v. U.S.Trustee......Page 655
CASE 30.2 In re Mosley......Page 662
Reorganizations......Page 665
CASE 30.3 In re Buis......Page 667
QUESTIONS AND CASE PROBLEMS......Page 672
LEGAL RESEARCH EXERCISES ON THE WEB......Page 675
FOCUS ON ETHICS: CREDITORS' RIGHTS AND BANKRUPTCY......Page 676
UNIT 7 Agency and Employment......Page 678
Agency Relationships......Page 679
CASE 31.1 Alberty-Vélez Corporación de Puerto Rico......Page 681
Formation of the Agency Relationship......Page 683
CASE 31.2 Motorsport Marketing, Inc. v. Wiedmaier, Inc.......Page 684
Duties of Agents and Principals......Page 686
EXTENDED CASE 31.3 Gossels v. Fleet National Bank......Page 687
Rights and Remedies of Agents and Principals......Page 689
QUESTIONS AND CASE PROBLEMS......Page 691
LEGAL RESEARCH EXERCISES ON THE WEB......Page 693
Scope of Agent's Authority......Page 694
CASE 32.1 Ermoian v. Desert Hospital......Page 696
Liability for Contracts......Page 698
Liability for Torts and Crimes......Page 700
CASE 32.2 In re Selheimer & Co.......Page 701
EXTENDED CASE 32.3 Galvao v. G. R. Robert Construction Co.......Page 705
Termination of an Agency......Page 707
QUESTIONS AND CASE PROBLEMS......Page 710
LEGAL RESEARCH EXERCISES ON THE WEB......Page 713
Employment at Will......Page 714
CASE 33.1 Wendeln v.The Beatrice Manor, Inc.......Page 716
Wage and Hour Laws......Page 717
CASE 33.2 Mims v. Starbucks Corp.......Page 719
Labor Unions......Page 722
Worker Health and Safety......Page 724
Income Security,Pension, and Health Plans......Page 726
Family and Medical Leave......Page 728
EXTENDED CASE 33.3 Nevada Department of Human Resources v. Hibbs......Page 729
Employee Privacy Rights......Page 730
REVIEWING: EMPLOYMENT AND LABOR LAW......Page 733
QUESTIONS AND CASE PROBLEMS......Page 734
LEGAL RESEARCH EXERCISES ON THE WEB......Page 736
Title VII of the Civil Rights Act of 1964......Page 737
CASE 34.1 Arbaugh v.Y & H Corp.......Page 738
EXTENDED CASE 34.2 Burlington Northern and Santa Fe Railway Co. v. White......Page 744
Discrimination Based on Age......Page 746
CASE 34.3 Cash Distributing Co. v. Neely......Page 748
Discrimination Based on Disability......Page 751
Defenses to Employment Discrimination......Page 753
Affirmative Action......Page 754
REVIEWING: EMPLOYMENT DISCRIMINATION......Page 756
QUESTIONS AND CASE PROBLEMS......Page 757
LAW ON THE WEB......Page 759
LEGAL RESEARCH EXERCISES ON THE WEB......Page 760
FOCUS ON ETHICS: AGENCY AND EMPLOYMENT......Page 761
UNIT 8 Business Organizations......Page 764
Sole Proprietorships......Page 765
CASE 35.1 Garden City Boxing Club, Inc. v. Dominguez......Page 766
Franchises......Page 767
EXTENDED CASE 35.2 Kerl v. Dennis Rasmussen, Inc.......Page 770
CASE 35.3 Chic Miller's Chevrolet, Inc. v. General Motors Corp.......Page 772
TERMS AND CONCEPTS......Page 774
QUESTIONS AND CASE PROBLEMS......Page 775
LEGAL RESEARCH EXERCISES ON THE WEB......Page 777
Basic Partnership Concepts......Page 778
Partnership Formation......Page 780
Partnership Operation......Page 781
CASE 36.1 Moren v. Jax Restaurant......Page 785
Dissociation of a Partner......Page 787
CASE 36.2 Warnick v.Warnick......Page 788
Partnership Termination......Page 789
Limited Liability Partnerships......Page 791
Limited Partnerships......Page 792
EXTENDED CASE 36.3 In re Dissolution of Midnight Star Enterprises, L.P.......Page 794
REVIEWING: PARTNERSHIPS AND LIMITED LIABILITY PARTNERSHIPS......Page 796
QUESTIONS AND CASE PROBLEMS......Page 797
LEGAL RESEARCH EXERCISES ON THE WEB......Page 799
Limited Liability Companies......Page 800
CASE 37.1 McFarland v.Virginia Retirement Services of Chesterfield, L.L.C.......Page 801
CASE 37.2 Kuhn v.Tumminelli......Page 804
Management of an LLC......Page 805
Special Business Forms......Page 806
EXTENDED CASE 37.3 SPW Associates, LLP v. Anderson......Page 807
REVIEWING: LIMITED LIABILITY COMPANIES AND SPECIAL BUSINESS FORMS......Page 809
QUESTIONS AND CASE PROBLEMS......Page 810
LEGAL RESEARCH EXERCISES ON THE WEB......Page 813
The Nature and Classification of Corporations......Page 814
CASE 38.1 Commonwealth v. Angelo Todesca Corp.......Page 816
EXTENDED CASE 38.2 Salt Lake Tribune Publishing Co. v. AT&T Corp.......Page 819
Corporate Formation......Page 822
Defects in Formation and Corporate Status......Page 826
Piercing the Corporate Veil......Page 827
CASE 38.3 In re Aqua Clear Technologies, Inc.......Page 828
Corporate Financing......Page 830
TERMS AND CONCEPTS......Page 833
QUESTIONS AND CASE PROBLEMS......Page 834
LEGAL RESEARCH EXERCISES ON THE WEB......Page 836
Roles of Directors and Officers......Page 837
EXTENDED CASE 39.1 Relational Investors, LLC v. Sovereign Bancorp, Inc.......Page 838
Duties and Liabilities of Directors and Officers......Page 842
CASE 39.2 Guth v. Loft, Inc.......Page 844
The Role of Shareholders......Page 846
Rights of Shareholders......Page 850
Liability of Shareholders......Page 853
CASE 39.3 Kaplan v. First Hartford Corp.......Page 854
TERMS AND CONCEPTS......Page 856
QUESTIONS AND CASE PROBLEMS......Page 857
LEGAL RESEARCH EXERCISES ON THE WEB......Page 859
Merger and Consolidation......Page 860
CASE 40.1 Rodriguez v.Tech Credit Union Corp.......Page 861
Purchase of Assets......Page 864
Purchase of Stock......Page 865
EXTENDED CASE 40.2 Parent v. Amity Autoworld, Ltd.......Page 868
CASE 40.3 Sartori v. S & S Trucking, Inc.......Page 870
Major Business Forms Compared......Page 871
QUESTIONS AND CASE PROBLEMS......Page 874
LEGAL RESEARCH EXERCISES ON THE WEB......Page 876
The Securities and Exchange Commission......Page 877
The Securities Act of 1933......Page 878
The Securities Exchange Act of 1934......Page 886
CASE 41.1 SEC v.Texas Gulf Sulphur Co.......Page 887
EXTENDED CASE 41.2 Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Dabit......Page 888
CASE 41.3 United States v. Berger......Page 892
Corporate Governance......Page 894
State Securities Laws......Page 896
Online Securities Fraud......Page 898
REVIEWING: CORPORATIONS—SECURITIES LAW AND CORPORATE GOVERNANCE......Page 899
QUESTIONS AND CASE PROBLEMS......Page 900
SPECIAL CASE ANALYSIS: MERRILL LYNCH, PIERCE, FENNER & SMITH, INC. V. DOBIT......Page 901
LEGAL RESEARCH EXERCISES ON THE WEB......Page 902
The Importance of Legal Counsel......Page 903
Selecting an Appropriate Business Form......Page 904
The Limited Liability Company......Page 907
EXTENDED CASE 42.1 Mixon v. Iberia Surgical, L.L.C.......Page 908
Creating the Business Entity......Page 909
Intellectual Property......Page 910
Raising Financial Capital......Page 912
CASE 42.2 InfoSAGE, Inc. v. Mellon Ventures, L.P.......Page 913
Buy-Sell Agreements and Key-Person Insurance......Page 914
Contract Law and Small Businesses......Page 915
CASE 42.3 DBL Distributing, Inc. v. 1 Cache, L.L.C.......Page 916
Employment Issues......Page 917
TERMS AND CONCEPTS......Page 919
QUESTIONS AND CASE PROBLEMS......Page 920
LEGAL RESEARCH EXERCISES ON THE WEB......Page 922
FOCUS ON ETHICS: BUSINESS ORGANIZATIONS......Page 923
UNIT 9 Government Regulation......Page 926
The Practical Significance of Administrative Law......Page 927
Agency Creation and Powers......Page 928
EXTENDED CASE 43.1 Fox Television Stations, Inc. v. Federal Communications Commission......Page 929
CASE 43.2 Hemp Industries Association v. Drug Enforcement Administration......Page 933
Judicial Deference to Agency Decisions......Page 935
CASE 43.3 United States v. Mead Corporation......Page 936
Agency Enforcement and Adjudication......Page 937
Limitations on Agency Powers......Page 939
Public Accountability......Page 941
TERMS AND CONCEPTS......Page 942
QUESTIONS AND CASE PROBLEMS......Page 943
LEGAL RESEARCH EXERCISES ON THE WEB......Page 945
Deceptive Advertising......Page 946
EXTENDED CASE 44.1 Federal Trade Commission v. Verity International, Ltd.......Page 948
Sales......Page 950
Credit Protection......Page 951
CASE 44.2 Saunders v. Equifax Information Services, L.L.C.......Page 953
Consumer Health and Safety......Page 955
CASE 44.3 Abigail Alliance for Better Access to Developmental Drugs v. von Eschenbach......Page 956
REVIEWING: CONSUMER LAW......Page 958
QUESTIONS AND CASE PROBLEMS......Page 959
LEGAL RESEARCH EXERCISES ON THE WEB......Page 961
Common Law Actions......Page 962
Federal, State, and Local Regulation......Page 963
Air Pollution......Page 964
EXTENDED CASE 45.1 Environmental Defense v. Duke Energy Corp.......Page 967
CASE 45.2 S. D.Warren Co. v. Maine Board of Environmental Protection......Page 969
Toxic Chemicals......Page 972
CASE 45.3 Bates v. Dow Agrosciences, LLC......Page 973
Hazardous Wastes......Page 974
REVIEWING: ENVIRONMENTAL LAW......Page 975
QUESTIONS AND CASE PROBLEMS......Page 976
LEGAL RESEARCH EXERCISES ON THE WEB......Page 978
The Sherman Antitrust Act......Page 979
Section 1 of the Sherman Act......Page 980
CASE 46.1 Continental T.V., Inc. v. GTE Sylvania, Inc.......Page 982
EXTENDED CASE 46.2 Leegin Creative Leather Products, Inc. v. PSKS, Inc.......Page 983
Section 2 of the Sherman Act......Page 985
The Clayton Act......Page 987
CASE 46.3 Illinois Tool Works, Inc. v. Independent Ink, Inc.......Page 989
Enforcement of Antitrust Laws......Page 991
Exemptions from Antitrust Law......Page 992
U.S. Antitrust Laws in the Global Context......Page 993
TERMS AND CONCEPTS......Page 994
QUESTIONS AND CASE PROBLEMS......Page 995
SPECIAL CASE ANALYSIS: LEEGIN CREATIVE LEATHER PRODUCTS, INC. V. PSKS, INC.......Page 996
LEGAL RESEARCH EXERCISES ON THE WEB......Page 997
FOCUS ON ETHICS: GOVERNMENT REGULATION......Page 998
UNIT 10 Property......Page 1000
Personal Property versus Real Property......Page 1001
Fixtures......Page 1002
Acquiring Ownership of Personal Property......Page 1003
CASE 47.1 In re Estate of Piper......Page 1004
Mislaid, Lost, and Abandoned Property......Page 1006
EXTENDED CASE 47.2 United States v. One Hundred Sixty-Five Thousand Five Hundred Eighty Dollars ($165,580) in U.S. Currency......Page 1008
Bailments......Page 1010
Ordinary Bailments......Page 1011
Special Types of Bailments......Page 1014
CASE 47.3 Treiber & Straub, Inc. v. United Parcel Service, Inc.......Page 1015
QUESTIONS AND CASE PROBLEMS......Page 1018
LEGAL RESEARCH EXERCISES ON THE WEB......Page 1020
The Nature of Real Property......Page 1021
Ownership and Other Interests in Real Property......Page 1022
CASE 48.1 Biglane v. Under the Hill Corp.......Page 1023
Transfer of Ownership......Page 1027
CASE 48.2 Whitehead v. Humphrey......Page 1030
CASE 48.3 Otwell v. Diversified Timber Services, Inc.......Page 1034
Limitations on the Rights of Property Owners......Page 1035
EXTENDED CASE 48.4 Kelo v. City of New London, Connecticut......Page 1036
Landlord-Tenant Relationships......Page 1038
TERMS AND CONCEPTS......Page 1041
QUESTIONS AND CASE PROBLEMS......Page 1042
SPECIAL CASE ANALYSIS: KELO V. CITY OF NEW LONDON, CONNECTICUT......Page 1043
LEGAL RESEARCH EXERCISES ON THE WEB......Page 1044
FOCUS ON ETHICS: PROPERTY......Page 1045
UNIT 11 Special Topics......Page 1048
Insurance Terminology and Concepts......Page 1049
EXTENDED CASE 49.1 Zurich American Insurance Co. v. AMB Industries, Inc.......Page 1052
The Insurance Contract......Page 1053
CASE 49.2 Cary v. United of Omaha Life Insurance Co.......Page 1056
CASE 49.3 Woo v. Fireman's Fund Insurance Co.......Page 1058
Types of Insurance......Page 1059
QUESTIONS AND CASE PROBLEMS......Page 1064
LEGAL RESEARCH EXERCISES ON THE WEB......Page 1067
Wills......Page 1068
CASE 50.1 Shaw Family Archives, Ltd. v. CMG Worldwide, Inc.......Page 1070
CASE 50.2 In re Estate of Pallister......Page 1073
Intestacy Laws......Page 1076
Trusts......Page 1078
EXTENDED CASE 50.3 Cinquemani v. Lazio......Page 1080
Other Estate-Planning Issues......Page 1084
TERMS AND CONCEPTS......Page 1085
QUESTIONS AND CASE PROBLEMS......Page 1086
LEGAL RESEARCH EXERCISES ON THE WEB......Page 1088
Potential Liability to Clients......Page 1089
EXTENDED CASE 51.1 In re Disciplinary Proceedings Against Inglimo......Page 1091
Potential Liability to Third Parties......Page 1093
CASE 51.2 Reznor v. J. Artist Management, Inc.......Page 1094
The Sarbanes-Oxley Act of 2002......Page 1096
Potential Liability of Accountants under Securities Laws......Page 1099
Potential Criminal Liability of Accountants......Page 1102
Confidentiality and Privilege......Page 1103
REVIEWING: PROFESSIONAL LIABILITY AND ACCOUNTABILITY......Page 1104
QUESTIONS AND CASE PROBLEMS......Page 1105
LEGAL RESEARCH EXERCISES ON THE WEB......Page 1108
International Law......Page 1109
Doing Business Internationally......Page 1112
Regulation of Specific Business Activities......Page 1113
CASE 52.1 Fuji Photo Film Co. v. International Trade Commission......Page 1114
CASE 52.2 Carnero v. Boston Scientific Corp.......Page 1117
EXTENDED 52.3 Khulumani v. Barclay National Bank, Ltd.......Page 1119
QUESTIONS AND CASE PROBLEMS......Page 1121
LEGAL RESEARCH EXERCISES ON THE WEB......Page 1123
FOCUS ON ETHICS: SPECIAL TOPICS......Page 1124
Appendix A: How to Brief Cases and Analyze Case Problems......Page 1128
Appendix B: The Constitution of the United States......Page 1131
Appendix C: The Uniform Commercial Code......Page 1139
Appendix D: The United Nations Convention on Contracts for the International Sale of Goods (Excerpts)......Page 1303
Appendix E: The Uniform Partnership Act (Excerpts)......Page 1307
Appendix F: The Revised Uniform Limited Partnership Act (Excerpts)......Page 1317
Appendix G: The Revised Model Business Corporation Act (Excerpts)......Page 1327
Appendix H: The Sarbanes-Oxley Act of 2002 (Excerpts and Explanatory Comments)......Page 1337
Appendix I: Sample Answers for End-of-Chapter Questions with Sample Answer......Page 1345
Glossary......Page 1358
Table of Cases......Page 1396
Index......Page 1408