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Table of Contents
Brief Contents
Contents
Unit 1: The Legal Environment of Business
Chapter 1: Law and Legal Reasoning
Business Activities and the Legal Environment
Sources of American Law
The Common Law Tradition
Schools of Legal Thought
Classications of Law
How to Find Primary Sources of Law
How to Read and Understand Case Law
Chapter 2: Courts and Alternative Dispute Resolution
The Judiciary’s Role in American Government
Basic Judicial Requirements
Case Analysis 2.1: Mala v. Crown Bay Marina, Inc. (2013)
Spotlight on Gucci: Case 2.2 Gucci America, Inc. v. Wang Huoqing (2011)
The State and Federal Court Systems
Case 2.3: Johnson v. Oxy USA, Inc. (2016)
Alternative Dispute Resolution
International Dispute Resolution
Chapter 3: Court Procedures
Procedural Rules
Pretrial Procedures
Case Analysis 3.1: Espresso Disposition Corp. 1 v. Santana Sales & Marketing Group, Inc. (2013)
Case 3.2: Lewis v. Twenty-First Century Bean Processing (2016)
Case 3.3: Brothers v. Winstead (2014)
The Trial
Posttrial Motions
The Appeal
Enforcing the Judgment
Chapter 4: Business and the Constitution
The Constitutional Powers of Government
Classic Case 4.1: Heart of Atlanta Motel v. United States (1964)
Business and the Bill of Rights
Spotlight on Beer Labels Case 4.2: Bad Frog Brewery, Inc. v. New York State Liquor Authority (1998
Case Analysis 4.3: Thompson v. Holm (2016)
Due Process and Equal Protection
Privacy Rights
Chapter 5: Business Ethics
Business Ethics
Case 5.1: Scott v. Carpanzano (2014)
Business Ethics and Social Media
Ethical Principles and Philosophies
Making Ethical Business Decisions
Case 5.2: Al-Dabagh v. Case Western Reserve University (2015)
Case Analysis 5.3: Moseley v. Pepco Energy Services, Inc. (2011)
Global Business Ethics
Unit One Application and Ethics: “Arbitration, No Class Actions
Unit 2: Torts and Crimes
Chapter 6: Tort Law
The Basis of Tort Law
Intentional Torts against Persons
Case Analysis 6.1: Blake v. Giustibelli (2016)
Case 6.2: Revell v. Guido (2015)
Intentional Torts against Property
Unintentional Torts—Negligence
Defenses to Negligence
Spotlight on the Seattle Mariners: Case 6.3: Taylor v. Baseball Club of Seattle, LP (2006)
Chapter 7: Strict Liability and Product Liability
Strict Liability
Product Liability
Case Analysis 7.1: Schwarck v. Arctic Cat, Inc. (2016)
Strict Product Liability
Spotlight on Injuries from Vaccines Case 7.2: Bruesewitz v. Wyeth, LLC (2011)
Defenses to Product Liability
Case 7.3: VeRost v. Mitsubishi Caterpillar Forklift America, Inc.(2015)
Chapter 8: Intellectual Property Rights
Trademarks and Related Property
Classic Case 8.1 The Coca-Cola Co. v. The Koke Co. of America (1920)
Case 8.2 LFP IP, LLC v. Hustler Cincinnati, Inc. (2016)
Patents
Copyrights
Case Analysis 8.3 Winstead v. Jackson (2013)
Trade Secrets
International Protection for Intellectual Property
Chapter 9: Internet Law, Social Media, and Privacy
Internet Law
Spotlight on Internet Porn Case 9.1: Hasbro, Inc. v. Internet Entertainment Group, Ltd. (1996)
Copyrights in Digital Information
Social Media
Online Defamation
Other Actions Involving Online Posts
Case Analysis 9.2: David v. Textor (2016)
Privacy
Case 9.3: Nucci v. Target Corp. (2015)
Chapter 10: Criminal Law and Cyber Crime
Civil Law and Criminal Law
Criminal Liability
Types of Crimes
Case 10.1: State of Minnesota v. Smith (2015)
Spotlight on White-Collar Crime Case 10.2: People v. Sisuphan (2010)
Defenses to Criminal Liability
Criminal Procedures
Cyber Crime
Case Analysis 10.3: United States v. Warner (2016)
Unit Two Application and Ethics: The Biggest Data Breach of All Time
Unit 3: Contracts and E-Contracts
Chapter 11: Nature and Terminology
An Overview of Contract Law
Elements of a Contract
Case Analysis 11.1: Weston v. Cornell University (2016)
Types of Contracts
Case 11.2: Vukanovich v. Kine (2015)
Quasi Contracts
Interpretation of Contracts
Spotlight on Columbia Pictures Case 11.3: Wagner v. Columbia Pictures Industries, Inc. (2007)
Chapter 12: Agreement in Traditional and E-Contracts
Agreement
Classic Case 12.1 Lucy v. Zehmer (1954)
Spotlight on Amazon.com Case 12.2 Basis Technology Corp. v. Amazon.com, Inc. (2008)
Case Analysis 12.3 Hinkal v. Pardoe (2016)
Agreement in E-Contracts
The Uniform Electronic Transactions Act
International Treaties Affecting E-Contracts
Chapter 13: Consideration
Elements of Consideration
Classic Case 13.1: Hamer v. Sidway (1891)
Case Analysis 13.2: USS–POSCO Industries v. Case (2016)
Agreements at Lack Consideration
Settlement of Claims
Spotlight on Nike Case 13.3: Already, LLC v. Nike, Inc. (2013)
Exceptions to the Consideration Requirement
Chapter 14: Capacity and Legality
Contractual Capacity
Case 14.1: PAK Foods Houston, LLC v. Garcia (2014)
Legality
Case 14.2: McNatt v. Vestal (2016)
Case Analysis 14.3: Holmes v. Multimedia KSDK, Inc. (2013)
Chapter 15: Mistakes, Fraud, and Voluntary Consent
Mistakes
Fraudulent Misrepresentation
Case 15.1: Schneiderman v. Trump Entrepreneur Initiative, LLC (2016)
Case Analysis 15.2: Cronkelton v. Guaranteed Construction Services, LLC (2013)
Case 15.3: Fazio v. Cypress/GR Houston I, LP (2013)
Undue Influence
Duress
Adhesion Contracts and Unconscionability
Chapter 16: The Writing Requirement in Our Digital World
The Statute of Frauds
Contracts That Require a Writing
Case Analysis 16.1: Sloop v. Kiker (2016)
Exceptions to the Writing Requirement
Case 16.2: NYKCool A.B. v. Pacific Fruit, Inc. (2013)
Sufficiency of the Writing
The Parol Evidence Rule
Case 16.3: Frewil, LLC v. Price (2015)
The Statute of Frauds in the International Context
Chapter 17: Third Party Rights
Assignments and Delegations
Case 17.1 Hosch v. Colonial Pacific Leasing Corp. (2012)
Case 17.2 Bass-Fineberg Leasing, Inc. v. Modern Auto Sales, Inc. (2015)
Third Party Beneficiaries
Case Analysis 17.3 Bozzio v. EMI Group, Ltd. (2016)
Chapter 18: Performance and Discharge
Conditions
Discharge by Performance
Classic Case 18.1: Jacob & Youngs v. Kent (1921)
Case Analysis 18.2: Kohel v. Bergen Auto Enterprises, L.L.C. (2013)
Discharge by Agreement
Discharge by Operation of Law
Case 18.3: Hampton Roads Bankshares, Inc. v. Harvard (2016)
Chapter 19: Breach of Contract and Remedies
Damages
Case Analysis 19.1: Baird v. Owens Community College (2016)
Spotlight on Liquidated Damages Case 19.2: Kent State University v. Ford (2015)
Equitable Remedies
Case 19.3: Clara Wonjung Lee, DDS, Ltd. v. Robles (2014)
Recovery Based on Quasi Contract
Waiver of Breach
Contract Provisions Limiting Remedies
Unit Three Application and Ethics: Fantasy Sports: Legal Gambling
Unit 4: Domestic and International Sales and Lease Contracts
Chapter 20: The Formation of Sales and Lease Contracts
The Uniform Commercial Code
The Scope of Articles 2 (Sales) and 2A (Leases)
The Formation of Sales and Lease Contracts
Case 20.1: C. Mahendra (N.Y.), LLC v. National Gold & Diamond Center, Inc. (2015)
Classic Case 20.2: Jones v. Star Credit Corp. (1969)
Contracts for the International Sale of Goods
Case Analysis 20.3: VLM Food Trading International, Inc. v. Illinois Trading Co. (2016)
Chapter 21: Title, Risk, and Insurable Interest
Identication
Case Analysis 21.1 BMW Group, LLC v. Castle Oil Corp. (2016)
When Title Passes
Spotlight on Andy Warhol Case 21.2 Lindholm v. Brant (2007)
Risk of Loss
Case 21.3 Person v. Bowman (2013)
Insurable Interest
Chapter 22: Performance and Breach of Sales and Lease Contracts
Obligations of the Seller or Lessor
Case 22.1: Garziano v. Louisiana Log Home Co. (2014)
Obligations of the Buyer or Lessee
Remedies of the Seller or Lessor
Remedies of the Buyer or Lessee
Case Analysis 22.2: Genesis Health Clubs, Inc. v. LED Solar & Light Co. (2016)
Spotlight on Baseball Cards Case 22.3: Fitl v. Strek (2005)
Additional Provisions Affecting Remedies
Dealing with International Contracts
Chapter 23: Warranties
Warranties of Title
Express Warranties
Spotlight on Nissan Case 23.1: Hurst v. Nissan North America Inc. (2016)
Implied Warranties
Classic Case 23.2: Webster v. Blue Ship Tea Room, Inc. (1964)
Overlapping Warranties
Warranty Disclaimers and Limitations on Liability
Case Analysis 23.3: Roberts v. Lanigan Auto Sales (2013)
Chapter 24: International and Space Law
International Law
Case Analysis 24.1: Bennett v. Islamic Republic of Iran (2016)
Doing Business Internationally
Regulation of Specic Business Activities
International Dispute Resolution
Case 24.2: Carlyle Investment Management, LLC v. Moonmouth Co. SA (2015)
U.S. Laws in a Global Context
Spotlight on International Torts Case 24.3: Daimler AG v. Bauman (2014)
Space Law
Unit Four Application and Ethics: Success in Global Commerce
Unit 5: Negotiable Instruments
Chapter 25: Negotiable Instruments
Types of Negotiable Instruments
Case 25.1: Silicon Valley Bank v. Miracle Faith World Outreach, Inc. (2013)
Requirements for Negotiability
Case Analysis 25.2: OneWest Bank, FSB v. Nunez (2016)
Factors at Do Not Aect Negotiability
Case 25.3: Charles R. Tips Family Trust v. PB Commercial, LLC (2015)
Chapter 26: Transferability and Holder in Due Course
Negotiation
Indorsements
Case 26.1: In re Bass (2013)
Case Analysis 26.2: AS Peleus, LLC v. Success, Inc. (2016)
Holder in Due Course (HDC)
Spotlight on Holder in Due Course Case 26.3: Georg v. Metro Fixtures Contractors, Inc. (2008)
Holder through an HDC
Chapter 27: Liability, Defenses, and Discharge
Signature Liability
Case Analysis 27.1: Envision Printing, LLC v. Evans (2016)
Warranty Liability
Defenses and Limitations
Case Analysis 27.2: Mills v. Chauvin (2013)
Discharge
Chapter 28: Banking in the Digital Age
Checks
The Bank-Customer Relationship
Case 28.1: Royal Arcanum Hospital Association of Kings County, Inc. v. Herrnkind (2014)
The Bank’s Duty to Honor Checks
Case Analysis 28.2: Legg v. West Bank (2016)
The Bank’s Duty to Accept Deposits
Case 28.3: Shahin v. Delaware Federal Credit Union (2015)
Electronic Fund Transfers
Online Banking and E-Money
Unit Five Application and Ethics: Virtual Currency—Is It Safe?
Unit 6: Creditors’ Rights and Bankruptcy
Chapter 29: Creditors’ Rights and Remedies
Laws Assisting Creditors
Case Analysis 29.1: Picerne Construction Corp. v. Villas (2016)
Mortgages
Spotlight on Foreclosures Case 29.2: McLean v. JPMorgan Chase Bank, N.A. (2012)
Suretyship and Guaranty
Case 29.3: HSBC Realty Credit Corp. (USA) v. O’Neill (2014)
Protection for Debtors
Chapter 30: Secured Transactions
The Terminology of Secured Transactions
Creation of a Security Interest
Case 30.1: Royal Jewelers, Inc. v. Light (2015)
Perfection of a Security Interest
The Scope of a Security Interest
Case 30.2: In re Tusa–Expo Holdings, Inc. (2016)
Priorities
Rights and Duties of Debtors and Creditors
Default
Case Analysis 30.3: Smith v. Firstbank Corp. (2013)
Chapter 31: Bankruptcy Law
The Bankruptcy Code
Liquidation Proceedings
Case 31.1 In re Anderson (2016)
Case 31.2 In re Cummings (2015)
Reorganizations
Bankruptcy Relief under Chapter 12 and Chapter 13
Case Analysis 31.3 In re Welsh (2013)
Unit Six Application and Ethics: Federal Student Loans—Default and Discharge
Unit 7: Agency and Employment
Chapter 32: Agency Formation and Duties
Agency Relationships
Case 32.1: Coker v. Pershad (2013)
Formation of the Agency Relationship
Duties of Agents and Principals
Spotlight on Taser International Case 32.2: Taser International, Inc. v. Ward (2010)
Case Analysis 32.3: NRT New England, LLC v. Jones (2016)
Rights and Remedies of Agents and Principals
Chapter 33: Agency Liability and Termination
Scope of Agent’s Authority
Spotlight on Apparent Authority of Managers Case 33.1: Lundberg v. Church Farm, Inc. (1986)
Liability for Contracts
Liability for Torts and Crimes
Case 33.2: Asphalt & Concrete Services, Inc. v. Perry (2015)
Case Analysis 33.3: M.J. v. Wisan (2016)
Termination of an Agency
Chapter 34: Employment, Immigration, and Labor Law
Employment at Will
Wages, Hours, and Layoffs
Case 34.1: Bailey v. TitleMax of Georgia, Inc. (2015)
Family and Medical Leave
Case 34.2: Ballard v. Chicago Park District (2014)
Health, Safety, and Income Security
Employee Privacy Rights
Immigration Law
Labor Unions
Case Analysis 34.3: Contemporary Cars, Inc. v. National Labor Relations Board (2016)
Chapter 35: Employment Discrimination
Title VII of the Civil Rights Act
Case Analysis 35.1 Bauer v. Lynch (2016)
Case 35.2 Young v. United Parcel Service, Inc. (2015)
Case 35.3 Roberts v. Mike’s Trucking, Ltd. (2014)
Discrimination Based on Age
Discrimination Based on Disability
Discrimination Based on Military Status
Defenses to Employment Discrimination
Affirmative Action
Unit Seven Application and Ethics: Health Insurance and Small Business
Unit 8: Business Organizations
Chapter 36: Small Businesses and Franchises
General Considerations for Small Businesses
Sole Proprietorships
Case Analysis 36.1: A. Gadley Enterprises, Inc. v. Department of Labor and Industry Office of Unemp
Franchises
Franchise Termination
Case 36.2: Century 21 Real Estate, LLC v. All Professional Realty, Inc. (2015)
Spotlight on Holiday Inns Case 36.3: Holiday Inn Franchising, Inc. v. Hotel Associates, Inc. (2011
Chapter 37: All Forms of Partnerships
Basic Partnership Concepts
Formation and Operation
Classic Case 37.1: Meinhard v. Salmon (1928)
Dissociation and Termination
Case Analysis 37.2: Shamburger v. Shamburger (2016)
Limited Partnerships
Case 37.3: DeWine v. Valley View Enterprises, Inc. (2015)
Chapter 38: Limited Liability Companies and Special Business Forms
The Limited Liability Company
Case 38.1: Hodge v. Strong Built International, LLC (2015)
LLC Management and Operation
Case 38.2: Mekonen v. Zewdu (2014)
Dissociation and Dissolution of an LLC
Case Analysis 38.3: Reese v. Newman (2016)
Special Business Forms
Chapter 39: Corporate Formation and Financing
The Nature and Classification of Corporations
Case 39.1: Drake Manufacturing Co. v. Polyflow, Inc. (2015)
Case Analysis 39.2: Pantano v. Newark Museum (2016)
Corporate Formation and Powers
Piercing the Corporate Veil
Case 39.3: Dog House Investments, LLC v. Teal Properties, Inc. (2014)
Corporate Financing
Chapter 40: Corporate Directors, Officers, and Shareholders
Role of Directors and Officers
Duties and Liabilities of Directors and Officers
Case 40.1: Oliveira v. Sugarman (2016)
Classic Case 40.2: Guth v. Loft, Inc. (1939)
The Role of Shareholders
Case Analysis 40.3: Case v. Sink & Rise, Inc. (2013)
Rights of Shareholders
Duties and Liabilities of Shareholders
Chapter 41: Mergers and Takeovers
Merger, Consolidation, and Share Exchange
Case Analysis 41.1: In re Trulia, Inc. Stockholder Litigation (2016)
Purchase of Assets
Purchase of Stock
Case 41.2: Air Products and Chemicals, Inc. v. Airgas, Inc. (2011)
Termination
Major Business Forms Compared
Chapter 42: Investor Protection, Insider Trading, and Corporate Governance
The Securities Act of 1933
Case 42.1: Omnicare, Inc. v. Laborers District Council Construction Industry Pension Fund (2015)
The Securities Exchange Act of 1934
Classic Case 42.2: SEC v. Texas Gulf Sulphur Co. (1968)
Case Analysis 42.3: Rand-Heart of New York, Inc. v. Dolan (2016)
State Securities Laws
Corporate Governance
Unit Eight Application and Ethics: Business Start-Ups Online
Unit 9: Government Regulation
Chapter 43: Administrative Agencies
The Practical Significance of Administrative Law
Agency Creation and Powers
Case 43.1: Loving v. Internal Revenue Service (2014)
˜The Administrative Process
Case 43.2: Craker v. Drug Enforcement Administration (2013)
Judicial Deference to Agency Decisions
Case Analysis 43.3: Olivares v. Transportation Security Administration (2016)
Public Accountability
Chapter 44: Consumer Law
Advertising, Marketing, and Sales
Case 44.1: POM Wonderful, LLC v. Federal Trade Commission (2015)
Case 44.2: Lexmark International, Inc. v. Static Control Components, Inc. (2014)
Labeling and Packaging Laws
Protection of Health and Safety
Credit Protection
Case Analysis 44.3: Santangelo v. Comcast Corporation (2016)
Chapter 45: Environmental Protection
Common Law Actions
Federal, State, and Local Regulations
Case Analysis 45.1: Friends of Animals v. Clay (2016)
Air Pollution
Case 45.2: United States v. O’Malley (2014)
Water Pollution
Case 45.3: Entergy Corp. v. Riverkeeper, Inc. (2009)
Toxic Chemicals and Hazardous Waste
Chapter 46: Antitrust Law
The Sherman Antitrust Act
Section 1 of the Sherman Act
Section 2 of the Sherman Act
Case Analysis 46.1: McWane, Inc. v. Federal Trade Commission (2015)
Spotlight on Weyerhaeuser Case 46.2: Weyerhaeuser Co. v. Ross-Simmons Hardwood Lumber Co. (2007)
The Clayton Act
Enforcement and Exemptions
Case 46.3: TransWeb, LLC v. 3M Innovative Properties Co. (2016)
U.S. Antitrust Laws in the Global Context
Chapter 47: Professional Liability and Accountability
Potential Liability to Clients
Potential Liability to Third Parties
Case Analysis 47.1: Perez v. Stern (2010)
The Sarbanes-Oxley Act
Potential Liability of Accountants under Securities Laws
Spotlight on Accountant’s Duty to Correct Mistakes Case 47.2: Overton v. Todman & Co., CPAs (2007
Condentiality and Privilege
Case 47.3 Commonwealth of Pennsylvania v. Schultz (2016)
Unit Nine Application and Ethics: Climate Change
Unit 10: Property and Its Protection
Chapter 48: Personal Property and Bailments
Personal Property versus Real Property
Case 48.1: Corbello v. DeVito (2015)
Acquiring Ownership of Personal Property
Classic Case 48.2: In re Estate of Piper (1984)
Mislaid, Lost, and Abandoned Property
Bailments
Ordinary Bailments
Case Analysis 48.3: Zissu v. IH2 Property Illinois, L.P. (2016)
Special Types of Bailments
Chapter 49: Real Property and Landlord-Tenant Law
The Nature of Real Property
Ownership and Other Interests in Real Property
Case 49.1 Main Omni Realty Corp. v. Matus (2015)
Transfer of Ownership
Spotlight on Sales of Haunted Houses Case 49.2: Stambovsky v. Ackley (1991)
Case Analysis 49.3: Montgomery County v. Bhatt (2016)
Limitations on the Rights of Property Owners
Zoning and Government Regulations
Landlord-Tenant Relationships
Chapter 50: Insurance
Insurance Terminology and Concepts
Case 50.1: Breeden v. Buchanan (2015)
The Insurance Contract
Types of Insurance
Case Analysis 50.2: Estate of Luster v. Allstate Insurance Co.(2010)
Chapter 51: Wills and Trusts
Wills
Case Analysis 51.1: Peterson v. Harrell (2010)
Intestacy Laws
Trusts
Case 51.2: Dowdy v. Dowdy (2016)
Other Estate-Planning Issues
Unit Ten Application and Ethics: Business Planning for Divorce
Appendices
A: How to Brief Cases and Analyze Case Problems
B: The Constitution of the United States
C: The Uniform Commercial Code
D: Answers to the Issue Spotters
E: Sample Answers for Business Case Problems with Sample Answer
Glossary
Table of Cases
Index