The Legal Environment of Business: Text and Cases -- Ethical, Regulatory, Global, and E-Commerce Issues

Front Cover......Page 1
Title Page......Page 4
Copyright......Page 5
Contents......Page 8
1 The Foundations......Page 32
Schools of Jurisprudential Thought......Page 33
Business Activities and the Legal Environment......Page 35
Sources of American Law......Page 37
The Common Law Tradition......Page 38
The Common Law Today......Page 44
Classifications of Law......Page 45
How to Find Primary Sources of Law......Page 46
How to Read and Understand Case Law......Page 52
TERMS AND CONCEPTS......Page 58
QUESTIONS AND CASE PROBLEMS......Page 59
LEGAL RESEARCH EXERCISES ON THE WEB......Page 60
The Judiciary's Role in American Government......Page 61
Basic Judicial Requirements......Page 62
CASE 2.1 Mastondrea v. Occidental Hotels Management S.A.......Page 63
The State and Federal Court Systems......Page 68
Judicial Procedures: Following a Case through the Court......Page 72
EXTENDED CASE 2.2 Cruz v.Fagor America, Inc.......Page 76
CASE 2.3 Evans v. Eaton Corp. Long Term Disability Plan......Page 87
TERMS AND CONCEPTS......Page 90
QUESTIONS AND CASE PROBLEMS......Page 91
LEGAL RESEARCH EXERCISES ON THE WEB......Page 93
The Search for Alternatives to Litigation......Page 94
Negotiation and Mediation......Page 95
Arbitration......Page 96
CASE 3.1 Buckeye Check Cashing, Inc. v. Cardegna......Page 98
CASE 3.2 NCR Corp. v. Korala Associates, Ltd.......Page 103
EXTENDED CASE 3.3 Morrison v. Circuit City Stores, Inc.......Page 104
The Integration of ADR and Formal Court Procedures......Page 108
Online Dispute Resolution......Page 109
International Dispute Resolution......Page 110
REVIEWING: ALTERNATIVE AND ONLINE DISPUTE RESOLUTION......Page 111
QUESTIONS AND CASE PROBLEMS......Page 112
LEGAL RESEARCH EXERCISES ON THE WEB......Page 114
Business Ethics......Page 115
EXTENDED CASE 4.1 Baum v. Blue Moon Ventures,LLC......Page 117
Approaches to Ethical Reasoning......Page 119
CASE 4.2 Fog Cutter Capital Group, Inc. v. Securities and Exchange Commission......Page 120
How the Law Influences Business Ethics......Page 122
CASE 4.3 Guin v. Brazos Higher Education Service Corp.......Page 125
Making Ethical Business Decisions......Page 126
Business Ethics on a Global Level......Page 127
TERMS AND CONCEPTS......Page 129
QUESTIONS AND CASE PROBLEMS......Page 130
LEGAL RESEARCH EXERCISES ON THE WEB......Page 132
FOCUS ON ETHICS: ETHICS AND THE FOUNDATIONS......Page 133
2 The Public and International Environment......Page 136
The Constitutional Powers of Government......Page 137
Business and the Bill of Rights......Page 143
CASE 5.1 Bad Frog Brewery, Inc. v. New York State Liquor Authority......Page 145
EXTENDED CASE 5.2 Lott v.Levitt......Page 146
CASE 5.3 U.S. v. Moon......Page 150
Intentional Torts against Property......Page 9
Due Process and Equal Protection......Page 152
Privacy Rights......Page 153
REVIEWING: CONSTITUTIONAL LAW......Page 154
QUESTIONS AND CASE PROBLEMS......Page 155
LEGAL RESEARCH EXERCISES ON THE WEB......Page 157
The Practical Significance of Administrative Law......Page 158
Agency Creation and Powers......Page 159
EXTENDED CASE 6.1 Fox Television Stations, Inc. v. Federal Communications Commission......Page 160
CASE 6.2 Hemp Industries Association v. Drug Enforcement Administration......Page 164
Judicial Deference to Agency Decisions......Page 166
CASE 6.3 Citizens' Committee to Save Our Canyons v. Krueger......Page 167
Agency Enforcement and Adjudication......Page 169
Limitations on Agency Powers......Page 171
Public Accountability......Page 173
TERMS AND CONCEPTS......Page 174
QUESTIONS AND CASE PROBLEMS......Page 175
LEGAL RESEARCH EXERCISES ON THE WEB......Page 177
Civil Law and Criminal Law......Page 178
Classification of Crimes......Page 179
Criminal Liability......Page 180
Types of Crimes......Page 182
CASE 7.1 George v. Commonwealth of Virginia......Page 184
CASE 7.2 United States v. Lyons......Page 185
Defenses to Criminal Liability......Page 189
Criminal Procedures......Page 193
EXTENDED CASE 7.3 Fellers v. United States......Page 194
CASE 7.4 Miranda v. Arizona......Page 196
Cyber Crime......Page 200
TERMS AND CONCEPTS......Page 202
QUESTIONS AND CASE PROBLEMS......Page 203
LEGAL RESEARCH EXERCISES ON THE WEB......Page 205
International Law......Page 206
Doing Business Internationally......Page 209
Regulation of Specific Business Activities......Page 210
CASE 8.1 Fuji Photo Film Co. v. International Trade Commission......Page 211
U.S.Laws in a Global Context......Page 213
CASE 8.2 Carnero v. Boston Scientific Corp.......Page 214
EXTENDED CASE 8.3 Khulumani v. Barclay National Bank, Ltd.......Page 216
REVIEWING: INTERNATIONAL LAW IN A GLOBAL ECONOMY......Page 217
QUESTIONS AND CASE PROBLEMS......Page 218
SPECIAL CASE ANALYSIS: KHULUMANI V. BARCLAY NATIONAL BANK, LTD.......Page 219
LEGAL RESEARCH EXERCISES ON THE WEB......Page 220
FOCUS ON ETHICS: ETHICS AND THE PUBLIC AND INTERNATIONAL ENVIRONMENT......Page 221
3 The Commercial Environment......Page 224
The Function and Definition of Contract Law......Page 225
Elements of a Contract......Page 226
Types of Contracts......Page 227
Agreement......Page 230
CASE 9.1 Lucy v. Zehmer......Page 231
CASE 9.2 Basis Technology Corporation v. Amazon.com, Inc.......Page 233
EXTENDED CASE 9.3 Baer v. Chase......Page 235
Consideration......Page 242
Capacity......Page 245
Legality......Page 246
CASE 9.4 Stultz v. Safety and Compliance Management, Inc.......Page 249
Voluntary Consent......Page 252
The Statute of Frauds......Page 255
Third Party Rights......Page 256
TERMS AND CONCEPTS......Page 257
QUESTIONS AND CASE PROBLEMS......Page 258
LEGAL RESEARCH EXERCISES ON THE WEB......Page 260
Performance and Discharge......Page 261
EXTENDED CASE 10.1 Jacob & Youngs v. Kent......Page 262
CASE 10.2 Facto v. Pantagis......Page 268
Breach of Contract and Remedies......Page 270
CASE 10.3 Hadley v. Baxendale......Page 272
CASE 10.4 Stainbrook v. Low......Page 275
TERMS AND CONCEPTS......Page 279
QUESTIONS AND CASE PROBLEMS......Page 280
LEGAL RESEARCH EXERCISES ON THE WEB......Page 282
The Scope of Article 2—The Sale of Goods......Page 283
The Formation of Sales and Lease Contracts......Page 284
CASE 11.1 Sun Coast Merchandise Corp. v. Myron Corp.......Page 287
The Statute of Frauds......Page 289
Title, Risk, and Insurable Interest......Page 290
CASE 11.2 Lindholm v. Brant......Page 292
Performance of Sales and Lease Contracts......Page 297
Remedies for Breach of Sales and Lease Contracts......Page 299
EXTENDED CASE 11.3 Fitl v. Strek......Page 302
Sales and Lease Warranties......Page 304
CASE 11.4 Webster v. Blue Ship Tea Room, Inc.......Page 306
E-Contracts......Page 308
CASE 11.5 Feldman v. Google, Inc.......Page 309
REVIEWING: SALES, LEASES, AND E-CONTRACTS......Page 312
QUESTIONS AND CASE PROBLEMS......Page 313
SPECIAL CASE ANALYSIS: FITL V. STREK......Page 315
LEGAL RESEARCH EXERCISES ON THE WEB......Page 316
Appendix to Chapter 11: An Example of a Contract for the International Sale of Coffee......Page 317
The Basis of Tort Law......Page 321
Intentional Torts against Persons......Page 322
CASE 12.1 Anderson v. Mergenhagen......Page 327
CASE 12.2 McClain v. Octagon Plaza, LLC......Page 330
Business Torts......Page 331
Intentional Torts against Property......Page 333
Negligence......Page 335
CASE 12.3 Palsgraf v. Long Island Railroad Co.......Page 338
Defenses to Negligence......Page 339
EXTENDED CASE 12.4 Sutton v. Eastern New York Youth Soccer Association, Inc.......Page 340
Special Negligence Doctrines and Statutes......Page 342
Cyber Torts......Page 343
CASE 12.5 Fair Housing Council of San Fernando Valley v. Roommate.com, LLC......Page 344
REVIEWING: TORTS AND CYBER TORTS......Page 346
QUESTIONS AND CASE PROBLEMS......Page 347
SPECIAL CASE ANALYSIS: SUTTON V. EASTERN NEW YORK YOUTH SOCCER ASSOCIATION, INC.......Page 349
LEGAL RESEARCH EXERCISES ON THE WEB......Page 350
Strict Liability......Page 351
CASE 13.1 Jarvis v. Ford Motor Co.......Page 352
Strict Product Liability......Page 354
CASE 13.2 Bullock v. Philip Morris USA, Inc.......Page 358
EXTENDED CASE 13.3 Crosswhite v. Jumpking, Inc.......Page 360
Defenses to Product Liability......Page 362
QUESTIONS AND CASE PROBLEMS......Page 364
LEGAL RESEARCH EXERCISES ON THE WEB......Page 366
Trademarks and Related Property......Page 367
CASE 14.1 The Coca-Cola Co. v.The Koke Co. of America......Page 368
CASE 14.2 Menashe v. V Secret Catalogue, Inc.......Page 370
Cyber Marks......Page 373
Patents......Page 376
EXTENDED CASE 14.3 KSR International Co. v. Teleflex Inc.......Page 377
Copyrights......Page 380
CASE 14.4 Leadsinger, Inc. v. BMG Music Publishing......Page 381
Copyrights in Digital Information......Page 383
Trade Secrets......Page 387
International Protection for Intellectual Property......Page 388
TERMS AND CONCEPTS......Page 390
QUESTIONS AND CASE PROBLEMS......Page 391
LEGAL RESEARCH EXERCISES ON THE WEB......Page 393
Laws Assisting Creditors......Page 394
CASE 15.1 Indiana Surgical Specialists v. Griffin......Page 396
Suretyship and Guaranty......Page 398
Bankruptcy and Reorganization......Page 401
Liquidation Proceedings......Page 402
EXTENDED CASE 15.2 Hebbring v. U.S. Trustee......Page 404
CASE 15.3 In re Mosley......Page 412
Reorganizations......Page 414
CASE 15.4 In re Buis......Page 416
QUESTIONS AND CASE PROBLEMS......Page 421
LEGAL RESEARCH EXERCISES ON THE WEB......Page 424
FOCUS ON ETHICS: ETHICS AND THE COMMERCIAL ENVIRONMENT......Page 425
4 The Business Environment......Page 430
Sole Proprietorships......Page 431
CASE 16.1 Garden City Boxing Club, Inc. v. Dominguez......Page 432
Franchises......Page 433
EXTENDED CASE 16.2 Kerl v. Dennis Rasmussen, Inc.......Page 436
Partnerships......Page 438
CASE 16.3 Moren v. Jax Restaurant......Page 445
CASE 16.4 Warnick v.Warnick......Page 448
TERMS AND CONCEPTS......Page 451
QUESTIONS AND CASE PROBLEMS......Page 452
LEGAL RESEARCH EXERCISES ON THE WEB......Page 454
Limited Liability Companies......Page 455
EXTENDED CASE 17.1 02 Development, LLC v. 607 South Park, LLC......Page 456
CASE 17.2 Kuhn v.Tumminelli......Page 459
Limited Liability Partnerships......Page 462
Limited Partnerships......Page 463
CASE 17.3 In re Dissolution of Midnight Star Enterprises, L.P.......Page 466
REVIEWING: LIMITED LIABILITY COMPANIES AND LIMITED PARTNERSHIPS......Page 467
QUESTIONS AND CASE PROBLEMS......Page 468
LAW ON THE WEB......Page 470
LEGAL RESEARCH EXERCISES ON THE WEB......Page 471
The Nature and Classification of Corporations......Page 472
CASE 18.1 Commonwealth v. Angelo Todesca Corp.......Page 473
Corporate Formation......Page 477
CASE 18.2 In re Aqua Clear Technologies, Inc.......Page 481
Directors, Officers, and Shareholders......Page 483
CASE 18.3 Guth v. Loft, Inc.......Page 488
EXTENDED CASE 18.4 Portnoy v. Cryo-Cell International, Inc.......Page 494
Major Business Forms Compared......Page 499
QUESTIONS AND CASE PROBLEMS......Page 502
LEGAL RESEARCH EXERCISES ON THE WEB......Page 505
FOCUS ON ETHICS: ETHICS AND THE BUSINESS ENVIRONMENT......Page 506
5 The Employment Environment......Page 508
Agency Relationships......Page 509
CASE 19.1 Alberty-Vélez v. Corporación de Puerto Rico para la Difusión Pública......Page 511
Formation of the Agency Relationship......Page 513
CASE 19.2 Motorsport Marketing, Inc. v. Wiedmaier, Inc.......Page 514
Duties of Agents and Principals......Page 516
EXTENDED CASE 19.3 Gossels v. Fleet National Bank......Page 517
Rights and Remedies of Agents and Principals......Page 519
Scope of Agent’s Authority......Page 521
CASE 19.4 Ermoian v. Desert Hospital......Page 523
Liability for Contracts......Page 525
Liability for Torts and Crimes......Page 527
Termination of an Agency......Page 530
QUESTIONS AND CASE PROBLEMS......Page 533
LAW ON THE WEB......Page 535
LEGAL RESEARCH EXERCISES ON THE WEB......Page 536
Employment at Will......Page 537
CASE 20.1 Wendeln v. The Beatrice Manor, Inc.......Page 539
Wage and Hour Laws......Page 540
CASE 20.2 Mims v. Starbucks Corp.......Page 541
Worker Health and Safety......Page 543
Income Security, Pension, and Health Plans......Page 544
EXTENDED CASE 20.3 Nevada Department of Human Resources v. Hibbs......Page 548
Employee Privacy Rights......Page 550
REVIEWING: EMPLOYMENT RELATIONSHIPS......Page 552
QUESTIONS AND CASE PROBLEMS......Page 553
LEGAL RESEARCH EXERCISES ON THE WEB......Page 555
Title VII of the Civil Rights Act of 1964......Page 556
EXTENDED CASE 21.1 Burlington Northern and Santa Fe Railway Co. v. White......Page 561
CASE 21.2 Cash Distributing Co. v. Neely......Page 564
Discrimination Based on Disability......Page 567
CASE 21.3 Francin v. Mosby, Inc.......Page 571
Defenses to Employment Discrimination......Page 572
Affirmative Action......Page 573
REVIEWING: EMPLOYMENT DISCRIMINATION......Page 575
QUESTIONS AND CASE PROBLEMS......Page 576
LAW ON THE WEB......Page 578
LEGAL RESEARCH EXERCISES ON THE WEB......Page 579
The Law Governing Immigration......Page 580
CASE 22.1 Trollinger v. Tyson Foods, Inc.......Page 583
Federal Labor Laws......Page 586
The Decision to Form or Select a Union......Page 587
Union Election......Page 589
EXTENDED CASE 22.2 Local Joint Executive Board of Las Vegas; Culinary Workers Union Local #226; and Bartenders Union Local 165, AFL-CIO v. NLRB......Page 591
Collective Bargaining......Page 592
CASE 22.3 National Steel Corp. v. NLRB......Page 593
Strikes and Lockouts......Page 595
Unfair Labor Practices......Page 597
CASE 22.4 NLRB v. Hotel Employees and Restaurant Employees International Union Local 26, AFL-CIO......Page 599
REVIEWING: IMMIGRATION AND LABOR LAW......Page 601
QUESTIONS AND CASE PROBLEMS......Page 602
LAW ON THE WEB......Page 604
LEGAL RESEARCH EXERCISES ON THE WEB......Page 605
FOCUS ON ETHICS: ETHICS AND THE EMPLOYMENT ENVIRONMENT......Page 606
6 The Regulatory Environment......Page 610
Deceptive Advertising......Page 611
CASE 23.1 Federal Trade Commission v. QT, Inc.......Page 612
EXTENDED CASE 23.2 Federal Trade Commission v. Verity International, Ltd.......Page 614
Sales......Page 616
Credit Protection......Page 617
CASE 23.3 Flood v. Mercantile Adjustment Bureau, LLC......Page 620
CASE 23.4 Abigail Alliance for Better Access to Developmental Drugs v. von Eschenbach......Page 622
QUESTIONS AND CASE PROBLEMS......Page 625
LAW ON THE WEB......Page 627
LEGAL RESEARCH EXERCISES ON THE WEB......Page 628
Common Law Actions......Page 629
Federal, State, and Local Regulation......Page 630
Air Pollution......Page 631
CASE 24.1 State of New Jersey v. Environmental Protection Agency......Page 633
EXTENDED CASE 24.2 Environmental Defense v. Duke Energy Corp.......Page 635
CASE 24.3 S. D.Warren Co. v. Maine Board of Environmental Protection......Page 637
Toxic Chemicals......Page 640
CASE 24.4 Bates v. Dow Agrosciences, LLC......Page 641
REVIEWING: ENVIRONMENTAL LAW......Page 643
QUESTIONS AND CASE PROBLEMS......Page 644
LAW ON THE WEB......Page 646
LEGAL RESEARCH EXERCISES ON THE WEB......Page 647
The Nature of Real Property......Page 648
CASE 25.1 Biglane v. Under the Hill Corp.......Page 650
CASE 25.2 Roman Catholic Church of Our Lady of Sorrows v. Prince Realty Management, LLC......Page 655
Transfer of Ownership......Page 656
CASE 25.3 Whitehead v. Humphrey......Page 658
Public Control of Land Use......Page 663
EXTENDED CASE 25.4 Kelo v. City of New London, Connecticut......Page 666
TERMS AND CONCEPTS......Page 668
QUESTIONS AND CASE PROBLEMS......Page 669
SPECIAL CASE ANALYSIS: KELO V. CITY OF NEW LONDON, CONNECTICUT......Page 670
LEGAL RESEARCH EXERCISES ON THE WEB......Page 671
Market Power......Page 672
The Common Law and the Restraint of Trade......Page 673
The Origins of Federal Antitrust Legislation......Page 674
Overview of the Major Federal Antitrust Laws......Page 675
Enforcement of the Antitrust Laws......Page 677
Exemptions in Antitrust Enforcement......Page 678
EXTENDED CASE 26.1 Clarett v. National Football League......Page 681
Monopolies......Page 682
CASE 26.2 Newcal Industries, Inc. v. Ikon Office Solutions......Page 683
CASE 26.3 Nobody in Particular Presents, Inc. v. Clear Channel Communications, Inc.......Page 687
TERMS AND CONCEPTS......Page 688
QUESTIONS AND CASE PROBLEMS......Page 689
LEGAL RESEARCH EXERCISES ON THE WEB......Page 691
Restraint of Trade: An Overview......Page 692
Horizontal Restraints......Page 693
CASE 27.1 In re Cardizem CD Antitrust Litigation......Page 694
Vertical Restraints......Page 696
CASE 27.2 Continental T.V., Inc. v. GTE Sylvania, Inc.......Page 697
EXTENDED CASE 27.3 Leegin Creative Leather Products, Inc. v. PSKS, Inc.......Page 698
CASE 27.4 Illinois Tool Works, Inc. v. Independent Ink, Inc.......Page 702
CASE 27.5 Chicago Bridge & Iron Co. v. Federal Trade Commission......Page 704
TERMS AND CONCEPTS......Page 706
QUESTIONS AND CASE PROBLEMS......Page 707
SPECIAL CASE ANALYSIS: LEEGIN CREATIVE LEATHER PRODUCTS, INC. V. PSKS, INC.......Page 708
LEGAL RESEARCH EXERCISES ON THE WEB......Page 709
The Securities and Exchange Commission......Page 710
The Securities Act of 1933......Page 711
The Securities Exchange Act of 1934......Page 718
CASE 28.1 SEC v. Texas Gulf Sulphur Co.......Page 720
EXTENDED CASE 28.2 Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Dabit......Page 721
CASE 28.3 Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc.......Page 723
CASE 28.4 United States v. Berger......Page 726
Corporate Governance......Page 728
Online Securities Fraud......Page 732
QUESTIONS AND CASE PROBLEMS......Page 734
LAW ON THE WEB......Page 736
LEGAL RESEARCH EXERCISES ON THE WEB......Page 737
FOCUS ON ETHICS: ETHICS AND THE REGULATORY ENVIRONMENT......Page 738
Appendix A: How to Brief Cases and Analyze Case Problems......Page 742
Appendix B: The Constitution of the United States......Page 745
Appendix C: The Uniform Commercial Code (Excerpts)......Page 753
Appendix D: The United Nations Convention on Contracts for the International Sale of Goods (Excerpts)......Page 793
Appendix E: The Uniform Partnership Act (Excerpts)......Page 797
Appendix F: The Revised Uniform Limited Partnership Act (Excerpts)......Page 807
Appendix G: The Revised Model Business Corporation Act (Excerpts)......Page 817
Appendix H: The Sarbanes-Oxley Act of 2002 (Excerpts and Explanatory Comments)......Page 827
Appendix I: Sample Answers for End-of-Chapter Questions with Sample Answer......Page 835
Glossary......Page 840
Table of Cases......Page 858
Index......Page 866