CHAPTE R 3
Courts and Alternative Dispute Resolution 64
The Judiciary’s Role in American Government 65 Basic Judicial Requirements 65 Mastondrea v. Occidental Hotels Management S.A. (2007) 68
CHAPTE R 1
The Legal Environment
2
The Nature of Law 2 Business Activities and the Legal Environment 4
•
PREVENTING LEGAL DISPUTES 5
ETHICAL ISSUE 1.1
PREVENTING LEGAL DISPUTES 72
The State and Federal Court Systems 74
•
ETHICAL ISSUE 3.1
75
Following a State Court Case 78 Evans v. Eaton Corp. Long Term Disability Plan (2008) 86
Sources of American Law 6
•
•
9
The Courts Adapt to the Online World 88
The Common Law Tradition 10 Classifications of Law 14
•
REVIEWING: The Legal Environment
ETHICAL ISSUE 3.2
90
Alternative Dispute Resolution 90
18
NCR Corp. v. Korala Associates, Ltd. (2008) 93
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
Online Dispute Resolution 96
AP P E N DIX TO CHAPTE R ON E 23
REVIEWING: Courts and Alternative D i s p u t e R e s o l u t i o n 97
Finding Statutory and Administrative Law 23 Finding Case Law 24 Reading and Understanding Case Law 26 CHAPTE R 2
Constitutional Law
35
The Constitutional Powers of Government 35 Heart of Atlanta Motel v. United States (1964) 37
Business and the Bill of Rights 42 ETHICAL ISSUE 2.1
PREVENTING LEGAL DISPUTES 53
Privacy Rights 55
•
Buell-Wilson v. Ford Motor Co. (2008) 106
Intentional Torts against Persons 107 ETHICAL ISSUE 4.1
115
• •
ETHICAL ISSUE 4.2
121
PREVENTING LEGAL DISPUTES 122
Strict Liability 127 Cyber Torts 127
55
REVIEWING: Constitutional Law
104
Intentional Torts against Property 116 Unintentional Torts (Negligence) 119
49
United States v. Moon (2008) 51
ETHICAL ISSUE 2.2
Torts and Cyber Torts
The Basis of Tort Law 104
•
Due Process and Equal Protection 52
•
CHAPTE R 4
McClain v. Octagon Plaza, LLC (2008) 114
Lott v. Levitt (2007) 45
•
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
58
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
Fair Housing Council of San Fernando Valley v. Roommates.com, LLC (2008) 128 R E V I E W I N G : To r t s a n d C y b e r To r t s
131
v
vi
CONTENTS
Baum v. Blue Moon Ventures, LLC (2008) 206
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 5
Approaches to Ethical Reasoning 207 Fog Cutter Capital Group, Inc. v. Securities and Exchange Commission (2007) 210
Intellectual Property and Internet Law 138
•
Trademarks and Related Property 139
How the Law Influences Busines Ethics 212
The Coca-Cola Co. v. Koke Co. of America (1920) 139
Cyber Marks 144 Patents 146
•
ETHICAL ISSUE 5.1
147
•
PREVENTING LEGAL DISPUTES 150
ETHICAL ISSUE 5.2
ETHICAL ISSUE 7.1
218
REVIEWING: Ethics and Business Decision Making 220
Copyrights 150
•
Guin v. Brazos Higher Education Service Corp. (2006) 216
Making Ethical Business Decisions 217 Business Ethics on a Global Level 218
KSR International Co. v. Teleflex, Inc. (2007) 148
•
PREVENTING LEGAL DISPUTES 212
151
Leadsinger, Inc. v. BMG Music Publishing (2008) 153
Trade Secrets 159 International Protection for Intellectual Property 161
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
UNIT ONE: Extended Case Study: MedImmune, Inc. v. Genentech, Inc.
REVIEWING: Intellectual Property a n d I n t e r n e t L a w 16 3 KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 6
Criminal Law and Cyber Crime
168
CHAPTE R 8
Civil Law and Criminal Law 169 Criminal Liability 170 Corporate Criminal Liability 171
•
PREVENTING LEGAL DISPUTES 172
Ardito v. City of Providence (2003) 234 Uhrhahn Construction & Design, Inc. v. Hopkins (2008) 237
George v. Commonwealth of Virginia (2008) 176 United States v. Lyons (2007) 177 ETHICAL ISSUE 6.1
181
Defenses to Criminal Liability 182 Constitutional Safeguards and Criminal Procedures 187 Miranda v. Arizona (1966) 190
REVIEWING: Criminal Law and Cyber Crime
CHAPTE R 7
Ethics and Business Decision Making 203
Business Ethics 204
Quasi Contracts 240
•
ETHICAL ISSUE 8.1
241
Interpretation of Contracts 242
•
Criminal Process 191 Cyber Crime 194 KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
230
An Overview of Contract Law 230 Elements of a Contract 232 Types of Contracts 233
Types of Crimes 172
•
Nature and Classification
PREVENTING LEGAL DISPUTES 242
Citizens Communications Co. v. Trustmark Insurance (2004) 244 197
REVIEWING: Nature and Classification
245
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 9
Agreement
Requirements of the Offer 252 Lucy v. Zehmer (1954) 252
251
226
vii Trell v. American Association for the Advancement of Science (2007) 254
• •
ETHICAL ISSUE 9.1
256
PREVENTING LEGAL DISPUTES 258
Basis Technology Corp. v. Amazon.com, Inc. (2008) 258
Termination of the Offer 260 Acceptance 263 REVIEWING: Agreement
Consideration
•
ETHICAL ISSUE 13.1 332
•
PREVENTING LEGAL DISPUTES 340
R EVI EWI NG: The Statute of Frauds
CHAPTE R 14
ETHICAL ISSUE 10.1 282
283
287
Contractual Capacity 287
Jacob & Youngs, Inc. v. Kent (1921) 349 Shah v. Cover-It, Inc. (2004) 352
Discharge by Agreement 354 Discharge by Operation of Law 355
Yale Diagnostic Radiology v. Estate of Harun Fountain (2004) 290
•
Legality 293 Speedway SuperAmerica, LLC v. Erwin (2008) 301
ETHICAL ISSUE 14.1 357
Facto v. Pantagis (2007) 358 R EVI EWI NG: Performance and Discharge
ETHICAL ISSUE 11.1 302
360
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
The Effect of Illegality 303 ETHICAL ISSUE 11.2 304
CHAPTE R 15
305
Genuineness of Assent
Mistakes 311 Inkel v. Pride Chevrolet-Pontiac, Inc. (2008) 313
Breach and Remedies
Damages 365
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
Fraudulent Misrepresentation 314
Performance and Discharge 346
Conditions of Performance 346 Discharge by Performance 348
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
Capacity and Legality
3 41
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
Promissory Estoppel 282
REVIEWING: Capacity and Legality
327
Yocca v. Pittsburgh Steelers Sports, Inc. (2004) 337
BP Products North America, Inc. v. Oakridge at Winegard, Inc. (2007) 280
CHAPTE R 12
The Statute of Frauds
The Sufficiency of the Writing 335 The Parol Evidence Rule 337
Settlement of Claims 279
•
323
School-Link Technologies, Inc, v. Applied Resources, Inc. (2007) 334
Access Organics, Inc. v. Hernandez (2008) 277
•
Undue Influence and Duress 320 Adhesion Contracts and Unconscionability 321
The Requirement of a Writing 327
PREVENTING LEGAL DISPUTES 276
CHAPTE R 11
PREVENTING LEGAL DISPUTES 320
CHAPTE R 13
271
Legal Sufficiency and Adequacy of Consideration 274 Contracts that Lack Consideration 276
REVIEWING: Consideration
ETHICAL ISSUE 12.1 319
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
Barfield v. Commerce Bank, N.A. (2007) 272
•
• •
REVIEWING: Genuineness of Assent
267
Elements of Consideration 271
•
Vokes v. Arthur Murray, Inc. (1968) 315
Simpson v. MSA of Myrtle Beach, Inc. (2007) 322
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 10
CONTENTS
•
311
PREVENTING LEGAL DISPUTES 367
Hanson v. Boeder (2007) 369
•
ETHICAL ISSUE 15.1 371
Equitable Remedies 372 Stainbrook v. Low (2006) 373
Recovery Based on Quasi Contract 375
364
viii
CONTENTS
Contract Provisions Limiting Remedies 377 Lucier v. Williams (2004) 377
Election of Remedies 379 REVIEWING: Breach and Remedies
379
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 16
Third Party Rights
CHAPTE R 18
384
Assignments 384 Martha Graham School and Dance Foundation, Inc. v. Martha Graham Center of Contemporary Dance, Inc. (2004) 386
•
PREVENTING LEGAL DISPUTES 389
398
Contracts for the International Sale of Goods 447
E- Contracts and E-Signatures 403
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 19
Feldman v. Google, Inc. (2007) 404 ETHICAL ISSUE 17.1 406
Mortgage Plus, Inc. v. DocMagic, Inc. (2004) 407 Specht v. Netscape Communications Corp. (2002) 410
E-Signatures 412 Partnering Agreements 413
UNIT TWO: Extended Case Study: Friezo v. Friezo 4 2 2
454
Empire Fire and Marine Insurance Co. v. Banc Auto, Inc. (2006) 458 Lindholm v. Brant (2007) 460 ETHICAL ISSUE 19.1 461
Risk of Loss 462
The Uniform Electronic Transactions Act 414 KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
Title and Risk of Loss
Identification 455 Passage of Title 456
•
PREVENTING LEGAL DISPUTES 413
REVIEWING: E- Contracts and E-Signatures
PREVENTING LEGAL DISPUTES 435
R EVI EWI NG: The Formation of Sales and Lease Contracts 448
Forming Contracts Online 403
•
ETHICAL ISSUE 18.1 434
Sun Coast Merchandise Corp. v. Myron Corp. (2007) 438 Jones v. Star Credit Corp. (1969) 446
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
•
Jannusch v. Naffziger (2008) 430
• •
Midwestern Indemnity Co. v. Systems Builders, Inc. (2004) 395 Revels v. Miss America Organization (2007) 397
CHAPTE R 17
The Scope of the UCC 426 The Scope of Article 2—Sales 427 The Scope of Article 2A—Leases 432 The Formation of Sales and Lease Contracts 433
Delegations 389 Third Party Beneficiaries 392
R EVI EWI NG: Third Party Rights
The Formation of Sales and Lease Contracts 426
417
Spray-Tek, Inc. v. Robbins Motor Transportation, Inc. (2006) 463
Insurable Interest 467
•
PREVENTING LEGAL DISPUTES 468
REVIEWING: Title and Risk of Loss
468
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 20
Performance and Breach of Sales and Lease Contracts 473
Performance Obligations 473 Obligations of the Seller or Lessor 474
ix
Articles 3 and 4 of the UCC 529 Types of Instruments 529 Requirements for Negotiability 532
Maple Farms, Inc. v. City School District of Elmira (1974) 479
• •
ETHICAL ISSUE 20.1 480 PREVENTING LEGAL DISPUTES 481
•
Obligations of the Buyer or Lessee 482 Anticipatory Repudiation 483 Remedies of the Seller or Lessor 483 Remedies of the Buyer or Lessee 486
Indorsements 541
•
Limitation of Remedies 492
498
Rights and Liabilities of Parties 552
Holder Through an HDC 559 Signature Liability 560
PREVENTING LEGAL DISPUTES 500
• •
ETHICAL ISSUE 21.1 503
Webster v. Blue Ship Tea Room, Inc. (1964) 504
PREVENTING LEGAL DISPUTES 565 ETHICAL ISSUE 23.1
567
Warranty Liability 567 Defenses, Limitations, and Discharge 569
Lemon Laws 509 Product Liability 510 Strict Product Liability 511
Keesling v. T.E.K. Partners, LLC (2007) 570 R E V I E W I N G : R i g h t s a n d L i a b i l i t i e s o f Pa r t i e s
Bullock v. Philip Morris USA, Inc. (2008) 514
575
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
Defenses to Product Liability 516 ETHICAL ISSUE 21.2 517
R E V I E W I N G : Wa r r a n t i e s a n d P r o d u c t L i a b i l i t y KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
UNIT THREE: Extended Case Study: G r e e n v. A . P. P r o d u c t s , L t d .
5 47
Georg v. Metro Fixtures Contractors, Inc. (2008) 555
Shoop v. DaimlerChrysler Corp. (2007) 501
•
R E V I E W I N G : N e g o t i a b i l i t y a n d Tr a n s f e r a b i l i t y
Holder versus Holder in Due Course (HDC) 553 Requirements for HDC Status 553
Warranties 498
•
Graves v. Johnson (2007) 546
CHAPTE R 23
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
•
ETHICAL ISSUE 22.1 544
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
R EVI EWI NG: Performance and Breach of Sales and Lease Contracts 493
Warranties and Product Liability
PREVENTING LEGAL DISPUTES 534
Foundation Property Investments, LLC v. CTP, LLC (2007) 537
Jauregui v. Bobb’s Piano Sales & Service, Inc. (2006) 488 Fitl v. Strek (2005) 490
CHAPTE R 21
CONTENTS
525
519
CHAPTE R 24
Checks and Banking in the Digital Age 581
Checks 582 The Bank-Customer Relationship 584 Bank’s Duty to Honor Checks 584 Auto-Owners Insurance Co. v. Bank One (2008) 587
•
PREVENTING LEGAL DISPUTES 589
Bank’s Duty to Accept Deposits 591 Bank One, N.A. v. Dunn (2006) 596
Electronic Fund Transfers 598 E-Money and Online Banking 600 CHAPTE R 22
Negotiability and Transferability 528
REVIEWING: Checks and Banking in the Digital Age 602
x
CONTENTS
Chapter 7—Liquidation 655
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
UNIT FOUR: Extended Case Study: P r e s t r i d g e v. B a n k o f J e n a
Hebbring v. U.S. Trustee (2006) 658
608
•
ETHICAL ISSUE 27.1
659
In re Mosley (2007) 667
Chapter 11—Reorganization 669
•
PREVENTING LEGAL DISPUTES 670
Bankruptcy Relief under Chapter 13 and Chapter 12 672 REVIEWING: Bankruptcy
6 74
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 25
Security Interests in Personal Property
612
UNIT FIVE: Extended Case Study: Central Virginia C o m m u n i t y C o l l e g e v. Ka t z 679
The Terminology of Secured Transactions 613 Creating a Security Interest 613 Perfecting a Security Interest 615
•
PREVENTING LEGAL DISPUTES 618
Corona Fruits & Veggies, Inc. v. Frozsun Foods, Inc. (2006) 619
The Scope of a Security Interest 622 Priorities 624 Rights and Duties of Debtors and Creditors 626 Default 628 First National Bank of Litchfield v. Miller (2008) 629
•
ETHICAL ISSUE 25.1 632
REVIEWING: Security Interests in Personal Property
Other Creditors’ Remedies and Suretyship 638
Laws Assisting Creditors 638 ETHICAL ISSUE 26.1 643
PREVENTING LEGAL DISPUTES 647
Laws Assisting Debtors 648 REVIEWING: Other Creditors’ Remedies and Suretyship 648 KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 27
Bankruptcy
Bankruptcy Proceedings 655
Duties of Agents and Principals 689
•
PREVENTING LEGAL DISPUTES 691
Agent’s Authority 692
•
ETHICAL ISSUE 28.1 693
Ermoian v. Desert Hospital (2007) 694 Warner v. Southwest Desert Images, LLC (2008) 700
How Agency Relationships Are Terminated 702
Capital Color Printing, Inc. v. Ahern (2008) 645
•
Agency Relationships 682 How Agency Relationships Are Formed 686
Liability in Agency Relationships 696
Indiana Surgical Specialists v. Griffin (2007) 641
•
Agency Relationships in Business 682
Motorsport Marketing, Inc. v. Wiedmaier, Inc. (2006) 688 632
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 26
CHAPTE R 28
653
REVIEWING: Agency Relationships i n B u s i n e s s 70 5 KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 29
Sole Proprietorships and Franchises 711
Sole Proprietorships 712 Garden City Boxing Club, Inc. v. Dominguez (2006) 713
xi
•
ETHICAL ISSUE 29.1 714
CHAPTE R 32
Franchises 714
•
PREVENTING LEGAL DISPUTES 715
Termination of the Franchise 719 Chic Miller’s Chevrolet, Inc. v. General Motors Corp. (2005) 720 REVIEWING: Sole Proprietorships a n d F r a n c h i s e s 7 21 KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 30
Partnerships
727
Basic Partnership Concepts 727 Partnership Formation 729 Partnership Operation, Dissociation, and Termination 731 Warnick v. Warnick (2006) 737
• •
ETHICAL ISSUE 30.1 738
In re Dissolution of Midnight Star Enterprises, L.P. (2006) 743 R EVI EWI NG: Partnerships
74 5
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 31
Limited Liability Companies and Special Business Forms 750
Limited Liability Companies 750 McFarland v. Virginia Retirement Services of Chesterfield, LLC (2007) 752 02 Development, LLC v. 607 South Park, LLC (2008) 753
Management of an LLC 756
•
ETHICAL ISSUE 31.1 756
Dissociation and Dissolution of an LLC 757
•
PREVENTING LEGAL DISPUTES 758
Special Business Forms 758 REVIEWING: Limited Liability Companies and S p e c i a l B u s i n e s s F o r m s 76 0 KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
Corporate Formation and Financing 764
Corporate Nature, Classification, and Powers 765
•
ETHICAL ISSUE 32.1
766
Commonwealth v. Angelo Todesca Corp. (2006) 768 Williams v. Stanford (2008) 772
Corporate Formation 775
•
PREVENTING LEGAL DISPUTES 777
Corporate Status 779 In re Aqua Clear Technologies, Inc. (2007) 781
Corporate Financing 782 R EVI EWI NG: Corporate Formation and Financing 785 KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 33
PREVENTING LEGAL DISPUTES 739
Limited Liability Partnerships 740 Limited Partnerships 741
CONTENTS
Corporate Directors, Officers, and Shareholders 791
Roles of Directors and Officers 791
•
PREVENTING LEGAL DISPUTES 793
Duties and Liabilities of Directors and Officers 795 Guth v. Loft, Inc. (1939) 796
Role of Shareholders 799 Portnoy v. Cryo-Cell International, Inc. (2008) 803
Rights and Liabilities of Shareholders 804 REVIEWING: Corporate Directors, Officers, and Shareholders
808
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 34
Corporate Acquisitions, Takeovers, and Termination 814
Merger and Consolidation 814 Rodriguez v. Tech Credit Union Corp. (2005) 815
•
PREVENTING LEGAL DISPUTES 818
Purchase of Assets 819 Purchase of Stock 820 Termination 822 Parent v. Amity Autoworld, Ltd. (2007) 822 Sartori v. S&S Trucking, Inc. (2006) 824
Major Business Forms Compared 826
xii
CONTENTS
REVIEWING: Corporate Acquisitions, Ta k e o v e r s , a n d Te r m i n a t i o n
REVIEWING: Administrative Law 828
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 35
Investor Protection, Insider Trading, and Corporate Governance
Securities Act of 1933 833
•
Antitrust Law
886
The Sherman Antitrust Act 887 Section 1 of the Sherman Act 889 Leegin Creative Leather Products, Inc. v. PSKS, Inc. (2007) 894
Section 2 of the Sherman Act 895
PREVENTING LEGAL DISPUTES 836
Newcal Industries, Inc. v. Ikon Office Solution (2008) 896
Securities Exchange Act of 1934 842
• •
SEC v. Texas Gulf Sulphur Co. (1968) 844 Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc. (2008) 846 United States v. Berger (2007) 849
PREVENTING LEGAL DISPUTES 899 ETHICAL ISSUE 37.1
900
The Clayton Act 900 Chicago Bridge & Iron Co. v. Federal Trade Commission (2008) 903
State Securities Laws 851 Corporate Governance 852 Online Securities Fraud 856
Enforcement and Exemptions 905 U.S. Antitrust Laws in the Global Context 906
R E V I E W I N G : I n v e s t o r P r o t e c t i o n , I n s i d e r Tr a d i n g , and Corporate Governance 858 KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
U N IT SIX: Extended Case Study: United States v. Bhagat
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 37
833
8 81
REVIEWING: Antitrust Law
9 07
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 38
Consumer Law
913
Advertising 914
862
Federal Trade Commission v. QT, Inc. (2008) 915
•
PREVENTING LEGAL DISPUTES 918
•
ETHICAL ISSUE 38.1 922
Labeling and Packaging 919 Sales 920 Health and Safety Protection 921 CHAPTE R 36
Administrative Law
866
The Practical Significance of Administrative Law 866 Agency Creation and Powers 867 The Administrative Procedure Act 871 Fox Television Stations, Inc. v. Federal Communications Commission (2007) 872
Judicial Deference to Agency Decisions 874 Citizens’ Committee to Save Our Canyons v. Krueger (2008) 875
Enforcement and Adjudication 876 Public Accountability 879 State Administrative Agencies 881
Credit Protection 923 Flood v. Mercantile Adjustment Bureau, LLC (2008) 926 REVIEWING: Consumer Law
928
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 39
Environmental Law
933
Common Law Actions 933 Federal, State, and Local Regulation 934 Air Pollution 936
•
ETHICAL ISSUE 39.1 936
New Jersey v. Environmental Protection Agency (2008) 938
Water Pollution 939
xiii United States v. Lucas (2008) 940
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
Toxic Chemicals 942 Hazardous Waste Disposal 943
•
CHAPTE R 42
PREVENTING LEGAL DISPUTES 944
REVIEWING: Environmental Law
946
In re Disciplinary Proceedings Against Inglimo (2007) 1014
Employment, Immigration, and Labor Law 951
ETHICAL ISSUE 42.1
1020
Potential Statutory Liability of Accountants 1020
•
Mims v. Starbucks Corp. (2007) 955
PREVENTING LEGAL DISPUTES 1021
Overton v. Todman & Co., CPAs (2007) 1023
Worker Health and Safety 958 Income Security 959 Family and Medical Leave 962
Potential Criminal Liability 1025 Confidentiality and Privilege 1026 REVIEWING: Liability of Accountants and Other Professionals
Darst v. Interstate Brands Corp. (2008) 963 ETHICAL ISSUE 40.1 964
10 2 6
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
Employee Privacy Rights 965
•
Potential Liability to Third Parties 1016 The Sarbanes-Oxley Act of 2002 1018
•
Employment at Will 952 Wage and Hour Laws 954
•
Liability of Accountants and Other Professionals 1011
Potential Common Law Liability to Clients 1012
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 40
CONTENTS
PREVENTING LEGAL DISPUTES 966
U N IT S EVE N: Extended Case Study: Batte-Holmgren v. Commissioner of Pubic Health 1032
Immigration Law 968 Labor Unions 972 Local Joint Executive Board of Las Vegas v. National Labor Relations Board (2008) 974 REVIEWING: Employment, Immigration, a n d L a b o r L a w 977 KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 41
Employment Discrimination
CHAPTE R 43
983
Title VII of the Civil Rights Act of 1964 984
•
PREVENTING LEGAL DISPUTES 988
Burlington Northern and Santa Fe Railway Co. v. White (2006) 990
ETHICAL ISSUE 43.1 1039
In re Estate of Piper (1984) 1040
Mislaid, Lost, and Abandoned Property 1043 Bailments 1044
Sprint/United Management Co. v. Mendelsohn (2008) 994
•
Discrimination Based on Disability 995 Francin v. Mosby, Inc. (2008) 1000
Defenses to Employment Discrimination 1001 ETHICAL ISSUE 41.1 1002
Affirmative Action 1003 State Statutes 1005 REVIEWING: Employment Discrimination
Property Ownership 1037 Acquiring Ownership of Personal Property 1038
•
Discrimination Based on Age 992
•
Personal Property and Bailments 1036
PREVENTING LEGAL DISPUTES 1044
Treiber & Straub, Inc. v. United Parcel Service, Inc. (2007) 1050 R EVI EWI NG: Personal Property a n d B a i l m e n t s 10 5 2 KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
10 0 6
xiv
CONTENTS
CHAPTE R 44
Real Property and Landlord-Tenant Law
1058
The Nature of Real Property 1058
•
PREVENTING LEGAL DISPUTES 1060
Biglane v. Under the Hill Corp. (2007) 1061 Roman Catholic Church of Our Lady of Sorrows v. Prince Realty Management, LLC (2008) 1064
Transfer of Ownership 1065 Kelo v. City of New London, Connecticut (2005) 1069 ETHICAL ISSUE 44.1
1070
Payment Methods for International Transactions 1119 U.S. Laws in a Global Context 1122 Khulumani v. Barclay National Bank, Ltd. (2007) 1124 REVIEWING: International Law in a G l o b a l E c o n o m y 112 5
APPENDICES
APPENDIX A How to Brief Cases
Insurance, Wills, and Trusts 1080
APPENDIX B APPENDIX C
ETHICAL ISSUE 45.1 1081
Woo v. Fireman’s Fund Insurance Co. (2007) 1086
APPENDIX D
Wills 1088 Shaw Family Archives, Ltd. v. CMG Worldwide, Inc. (2007) 1089
•
APPENDIX E
PREVENTING LEGAL DISPUTES 1093
Trusts 1095 R E V I E W I N G : I n s u r a n c e , W i l l s , a n d Tr u s t s
CHAPTE R 46
and Analyze Case Problems A–1 The Constitution of the United States A–5 The Uniform Commercial Code (Excerpts) A–12 The Sarbanes-Oxley Act of 2002 (Excerpts and Explanatory Comments) A–125 Sample Answers for End-of-Chapter Hypothetical Questions with Sample Answers A–132
10 9 9
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
U N IT E IG HT: Extended Case Study: In re Estate of Rober tson
1131
1074
Insurance 1080
•
PREVENTING LEGAL DISPUTES 1118
U N IT N I N E: Extended Case Study: Dole Food Co. v. Patrickson
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
CHAPTE R 45
•
KEY TERMS • CHAPTER SUMMARY • FOR REVIEW • QUESTIONS AND CASE PROBLEMS • ONLINE ACTIVITIES
Leasehold Estates 1070 Landlord-Tenant Relationships 1072 REVIEWING: Real Property and L a n d l o r d -Te n a n t L a w
Fuji Photo Film Co. v. International Trade Commission (2007) 1115
Commercial Contracts in an International Setting 1117
Ownership Interests in Real Property 1060
•
Doing Business Internationally 1112 Regulation of Specific Business Activities 1114
1104
International Law in a Global Economy 1108
International Law—Sources and Principles 1109
GLOSSARY G–1 TABLE OF CASES TC–1 INDEX I-1