Managers and the legal environment : Strategies for business

Cover......Page 1 Dedication......Page 5 Contents in Brief......Page 6 Table of Contents......Page 8 About the Author......Page 17 Preface......Page 19 Table of Cases......Page 29 Unit 1: Foundations of the Legal and Regulatory Environment......Page 43 Introduction......Page 44 1-1 The Systems Approach to Law, Business and Society......Page 45 1-2 Law and Public Policy......Page 48 1-3 The Legally Astute Manager......Page 52 Questions and Case Problems......Page 57 2-1 Ethics Matter......Page 58 2-2 The Ethical Tone Is Set at the Top......Page 61 2-3 The Ethical Business Leader's Decision Tree......Page 62 2-4 Finding the "Sweet Spot"......Page 67 2-6 Failing to Meet Societal Expectations......Page 69 2-7 Positive Action......Page 72 2-8 Promoting Ethical Behavior......Page 75 2-9 Honor or "The Morals of the Market Place"......Page 76 Questions and Case Problems......Page 82 3-1 How to Read a Case Citation......Page 85 3-2 Sources of Law......Page 86 3-4 Federal Jurisdiction......Page 88 3-5 Federal Courts......Page 90 3-6 State Courts......Page 92 3-8 Personal Jurisdiction......Page 93 3-9 Choice of Forum, Waiver of Right to Trial by Jury, and Choice of Law......Page 95 3-10 Alternatives to Litigation......Page 96 3-11 Class Actions......Page 97 3-12 Civil Procedure: Litigation Steps......Page 100 3-14 Negotiation......Page 103 3-15 Mediation......Page 105 3-16 Arbitration......Page 106 3-17 ADR Hybrids......Page 112 3-18 Discovery......Page 113 3-19 Document Retention and Deletion......Page 115 3-20 Attorney-Client Privilege, Attorney Work-Product Doctrine, and Other Privileges......Page 116 Key Words and Phrases......Page 124 Questions and Case Problems......Page 125 4-2 Separation of Powers......Page 128 4-3 Supremacy Clause and Preemption......Page 132 4-4 Federalism......Page 133 4-5 The Commerce Clause......Page 134 4-7 Protection of Individual Liberties......Page 136 4-8 Freedom of Speech and the Press......Page 138 4-10 Freedom of Religion......Page 149 4-12 Due Process under the Fifth and Fourteenth Amendments......Page 150 4-13 Compensation for Takings......Page 152 4-14 Equal Protection......Page 153 4-15 Right to Jury Trial......Page 157 Key Words and Phrases......Page 160 Questions and Case Problems......Page 161 5-2 Types of Agency Relationships......Page 164 5-3 Fiduciary Duty......Page 168 5-4 Agent's Ability to Bind the Principal to Contracts Entered into by the Agent......Page 171 5-5 Liability for Torts of Agents......Page 173 5-6 Liability of the Principal for Civil and Criminal Violations by an Agent......Page 175 Key Words and Phrases......Page 178 Questions and Case Problems......Page 179 6-1 How Administrative Agencies Act......Page 182 6-2 Administrative Agencies and the Constitution......Page 185 6-4 Standards for Judicial Review of Agency Actions......Page 189 6-5 Limits on Decision-Making Power of Agencies......Page 193 6-7 Obtaining Documents from an Agency......Page 194 Questions and Case Problems......Page 199 Unit II: The Legal Environment......Page 203 Introduction......Page 204 7-2 Agreement......Page 205 7-3 Consideration......Page 207 7-4 Capacity......Page 208 7-6 Promissory Estoppel......Page 209 7-7 Precontractual Liability for Failure to Negotiate in Good Faith......Page 210 7-8 Unconscionability......Page 213 7-9 Genuineness of Assent......Page 216 7-10 Statute of Frauds......Page 218 7-11 The Parol Evidence Rule......Page 219 7-12 Changed Circumstances......Page 220 7-14 Discharge of a Contract......Page 221 7-16 Third-Party Beneficiaries......Page 222 7-17 Remedies......Page 224 7-18 Contracts Relating to Mergers and Acquisitions......Page 226 Questions and Case Problems......Page 234 Introduction......Page 237 8-2 Software Licenses......Page 238 8-3 Contract Formation......Page 240 8-5 Electronic Contracts: The Uniform Electronic Transactions Act and the E-Sign Act......Page 244 8-6 Duty of Good Faith under the UCC......Page 245 8-7 Warranties......Page 246 8-10 Allocation of the Risk of Loss......Page 249 8-12 Unconscionability......Page 250 8-13 Commercial Impracticability......Page 251 8-14 Remedies......Page 252 Questions and Case Problems......Page 259 9-1 Elements of an Intentional Tort and Defenses......Page 262 9-2 Intentional Torts to Protect Persons......Page 263 9-3 Intentional Torts That Protect Property......Page 265 9-4 Intentional Torts That Protect Certain Economic Interests and Business Relationships......Page 267 9-5 Negligence......Page 270 9-6 Liability of Accountants and Other Professionals to Third Parties......Page 276 9-8 Strict Liability......Page 278 9-9 Respondeat Superior and Vicarious Liability......Page 279 9-11 Damages......Page 281 9-13 Liability of Multiple Defendants......Page 282 9-14 Privacy Protection......Page 283 9-15 Identity Theft......Page 288 Key Words and Phrases......Page 296 Questions and Case Problems......Page 297 10-1 Theories of Recovery......Page 299 10-2 Litigation Strategy and the Availability of Punitive Damages......Page 302 10-3 What Is a Product?......Page 304 10-4 What Makes a Product Defective?......Page 305 10-6 Successor, Market-Share, and Premises Liability......Page 310 10-8 Common Law Defenses......Page 314 10-9 Preemption Defense......Page 316 10-10 State Legislative Limits on Liability......Page 318 10-11 Guns, Tobacco, and "Big Food"......Page 321 Questions and Case Problems......Page 327 11-1 Patents......Page 330 11-2 Obtaining Patent Protection......Page 334 11-3 Patent Infringement and Litigation......Page 335 11-4 Copyrights......Page 338 11-5 Registered Mask Works......Page 346 11-6 Trademarks......Page 347 11-8 Trade Dress......Page 353 11-9 Trade Secrets......Page 354 Key Words and Phrases......Page 365 Questions and Case Problems......Page 366 Unit III: Human Resources......Page 369 12-1 At-Will Employment......Page 370 12-2 Wrongful Discharge......Page 371 12-3 Statutory and Constitutional Protections for Whistleblowers......Page 373 12-4 Fraudulent Inducement......Page 374 12-5 Noncompete and Other Agreements......Page 375 12-7 References for Former Employees......Page 377 12-8 Employer Testing and Surveillance......Page 378 12-9 Responsibility for Worker Safety......Page 382 12-10 Minimum Wage, Overtime Payments, and Child Labor......Page 385 12-11 Pension Plans and Other Employee Benefit Plans......Page 389 12-12 Worker Adjustment and Retraining Notification Act (WARN Act)......Page 392 12-13 Immigration Law......Page 393 12-14 Labor-Management Relations......Page 395 Questions and Case Problems......Page 407 Introduction......Page 411 13-1 Overview of Civil Rights Legislation......Page 412 13-3 Traditional Discrimination Claims under Title VII......Page 415 13-4 Harassment Claims under Title VII......Page 419 13-5 Title VII Duty to Accommodate Religious Beliefs......Page 424 13-6 Retaliation......Page 426 13-7 Proving Causation under Title VII......Page 427 13-9 Remedies under Title VII......Page 428 13-11 Age Discrimination......Page 429 13-12 Disability Discrimination......Page 431 13-15 Family and Medical Leave Act......Page 436 13-17 Affirmative Action......Page 438 13-19 The Extraterritorial Reach of U.S. Employment Discrimination Laws......Page 440 Questions and Case Problems......Page 446 Unit IV: The Regulatory Environment......Page 449 14-1 Definition of a Crime......Page 450 14-2 Elements of a Crime......Page 451 14-4 Criminal Procedure......Page 453 14-5 The Constitution's Ex Post Facto Clause......Page 455 14-6 The Fourth Amendment's Ban on Unreasonable Searches and Seizures......Page 456 14-7 The Fifth Amendment's Protections......Page 462 14-8 The Sixth Amendment's Procedural Protections......Page 463 14-10 Nonconstitutional Protections......Page 464 14-11 Federal Sentencing Guidelines......Page 465 14-12 Individual Liability for Criminal Acts......Page 468 14-13 White-Collar Crime......Page 472 14-14 Other Federal and State Regulatory and Tax Offenses......Page 487 14-15 Amnesty and Leniency Programs......Page 489 Questions and Case Problems......Page 492 Introduction......Page 495 15-1 Overview of Environmental Laws......Page 496 15-2 Administration of Environmental Laws......Page 497 15-3 Standing......Page 498 15-4 The Clean Air Act......Page 499 15-5 Addressing Climate Change......Page 502 15-6 The Clean Water Act......Page 504 15-7 Other Federal and State Chemical Regulations......Page 505 15-8 The Resource Conservation and Recovery Act (RCRA)......Page 506 15-9 The Federal Superfund Law (CERCLA)......Page 508 15-11 Enforcement Activities and Sanctions for Noncompliance......Page 514 15-12 Strategic Environmental Compliance Systems......Page 517 Questions and Case Problems......Page 527 Introduction......Page 530 16-2 Section 1 of the Sherman Act: Agreements in Restraint of Trade......Page 531 16-3 Product Bundling and Other Tying Arrangements......Page 538 16-5 Section 2 of the Sherman Act: Monopolies and Attempts to Monopolize......Page 540 16-6 Mergers: Section 7 of the Clayton Act......Page 547 16-7 Price Discrimination: The Robinson-Patman Act......Page 551 16-10 Antitrust Enforcement......Page 553 16-11 The Extraterritorial Reach of U.S. Antitrust Laws......Page 556 Key Words and Phrases......Page 562 Questions and Case Problems......Page 563 17-1 Commissions and Agencies......Page 566 17-2 Safety, Packaging, and Labeling of Conventionally Grown Foods......Page 568 17-3 Genetically Modified Foods and Pesticides......Page 571 17-4 Drugs and Medical Devices......Page 573 17-5 Tobacco and E-Cigarettes......Page 575 17-6 Labeling of Other Products......Page 576 17-7 Broadcasting and the Internet......Page 577 17-8 The Consumer Product Safety Commission......Page 578 17-9 Automobile Safety......Page 580 17-10 Protecting Consumer Privacy and Canning Spam......Page 581 17-11 Misleading Advertising and Other Unfair or Deceptive Trade Practices......Page 582 17-12 Self-Regulation of the Advertising Industry......Page 588 17-14 Consumer Credit (Including Mortgages)......Page 589 17-15 Regulation of Virtual Currencies......Page 595 Questions and Case Problems......Page 600 18-1 Forms of Ownership......Page 603 18-2 Transfer of Ownership......Page 606 18-3 Recording Statutes and Title Insurance......Page 607 18-5 Acquisitions and Dispositions......Page 609 18-6 Environmental Due Diligence......Page 610 18-7 Preliminary Agreements......Page 611 18-8 Financing......Page 612 18-9 Appraisal Methods......Page 614 18-11 Commercial Leasing......Page 615 18-12 Environmental Impact Statements and Assessments......Page 616 18-13 Government Regulation of Land Use......Page 617 18-14 Physical Accessibility to Commercial Facilities and Public Accommodations: The ADA and State Analogues......Page 624 Key Words and Phrases......Page 628 Questions and Case Problems......Page 629 Unit V: Corporate Governance, Ownership, and Control......Page 633 19-2 Sole Proprietorships......Page 634 19-4 Joint Ventures......Page 635 19-7 Master Limited Partnerships......Page 636 19-8 Corporations......Page 637 19-9 Limited Liability Companies......Page 638 19-11 Income Tax Considerations......Page 642 19-12 Effect of Agency Law on Limited Liability for Managers......Page 643 19-13 Partnership Mechanics......Page 644 19-14 Limited Partnership Requirements......Page 649 19-15 Incorporation......Page 650 19-16 Piercing the Veil of a Corporation or Limited Liability Company......Page 653 19-17 Management of the Corporation......Page 654 19-18 Structural Corporate Changes......Page 661 Questions and Case Problems......Page 667 20-1 The Business Judgment Rule and the Duty of Care......Page 670 20-2 Duty of Good Faith......Page 677 20-4 Duty of Candor......Page 680 20-5 Duties in the Context of Mergers and Acquisitions Approved by the Board......Page 681 20-6 Hostile Takeovers, Takeover Defenses, and Application of the Unocal, Blasius, and Revlon Tests......Page 685 20-8 Executive Compensation......Page 691 20-9 Duties of Controlling Shareholders......Page 693 Key Words and Phrases......Page 700 Questions and Case Problems......Page 701 Unit VI: Securities and Financial Transactions......Page 703 21-1 The Federal Statutory Scheme......Page 704 21-3 State Blue Sky Laws......Page 707 21-4 What Is a Security?......Page 708 21-6 Registration of Securities Offerings......Page 711 21-9 Reorganizations and Combinations......Page 718 21-10 Exemptions for Offerings by the Issuer......Page 719 21-12 Exemptions for Secondary Offerings......Page 725 21-14 Violation of the Registration and Prospectus-Delivery Requirements: Section 12(A)(1) of the 1933 Act......Page 729 21-15 Section 11 of the 1933 Act......Page 730 21-16 Section 12(A)(2) of the 1933 Act......Page 736 21-17 Criminal Penalties......Page 738 Questions and Case Problems......Page 741 22-1 Overview of Federal Antifraud Provisions......Page 744 22-2 Rule 10b-5......Page 745 22-4 Misstatement or Omission......Page 746 22-5 Materiality......Page 752 22-6 Scienter......Page 753 22-7 In Connection with the Purchase or Sale of Any Security......Page 754 22-8 Reliance......Page 755 22-12 Regulation AC and Securities Fraud Involving a Publicly Traded Company......Page 760 22-13 Litigation Reform Act Safe Harbor for Forward-Looking Statements......Page 761 22-14 Liability of Secondary Actors......Page 762 22-15 Section 17(A) of the 1933 Act......Page 763 22-18 Definition of Insider Trading......Page 764 22-22 Enforcement of Antifraud Prohibitions......Page 770 22-23 Whistleblower Protections and Bounty Payments......Page 772 22-24 Extraterritorial Application of the Securities Laws......Page 776 22-26 Other Requirements Applicable to Officers, Directors, and Greater-Than-10% Shareholders......Page 777 Questions and Case Problems......Page 786 Introduction......Page 789 23-1 Loan Agreements......Page 790 23-2 Commercial Loan Categories......Page 794 23-3 Secured Transactions under Article 9 of the UCC......Page 795 23-4 Equipment Leasing......Page 798 23-5 Guaranties......Page 799 23-6 Subordination......Page 800 23-7 Lender Liability......Page 801 23-9 Management Duties May Shift When a Company Enters the Insolvency Zone......Page 804 23-10 Overview of Bankruptcy Law......Page 807 23-11 Provisions Applicable to All Bankruptcies......Page 812 23-12 Chapter 11 Reorganizations......Page 817 23-14 Chapter 7 Liquidations......Page 820 23-16 Municipal Bankruptcies under Chapter 9......Page 823 23-17 Cross-Border Insolvencies under Chapter 15......Page 824 Questions and Case Problems......Page 829 Unit VII: International Business......Page 833 Introduction......Page 834 24-1 Types of Legal Systems......Page 835 24-2 Sources of International Law......Page 839 24-3 National Laws Affecting International Business and Governmental Affairs......Page 841 24-4 Extraterritorial Application of National Laws......Page 842 24-5 Foreign Corrupt Practices Act and Other Bribery Bans......Page 845 24-7 U.S. Trade Regime......Page 848 24-8 Regional International Trade Regimes......Page 854 24-9 The World Trade Organization......Page 857 24-10 Regional Economic Integration......Page 860 24-11 The European Union......Page 861 24-13 Investing and Doing Business Abroad......Page 866 24-14 Contracting across National Borders......Page 870 24-15 Dispute Resolution in International Transactions......Page 872 24-16 Disputes with Foreign Governments......Page 874 Key Words and Phrases......Page 881 Questions and Case Problems......Page 882 Appendix A: The Constitution of the United States of America......Page 887 Appendix B: Title VII of the Civil Rights Act of 1964 (Selected Provisions)......Page 895 Appendix C: Americans with Disabilities Act of 1990 and ADA Amendments Act of 2008 (Selected Provisions)......Page 897 Appendix E: Clayton Act of 1914 as Amended (Selected Provisions)......Page 900 Appendix G: Securities Act of 1933 as Amended (Selected Provisions)......Page 901 Appendix H: Securities Exchange Act of 1934 as Amended (Selected Provisions)......Page 904 Appendix I: Rules 10b-5, 10b5-1, and 10b5-2 from Code of Federal Regulations......Page 905 Appendix J: Rule 14e-3 from Code of Federal Regulations......Page 907 Appendix K: Sarbanes-Oxley Act of 2002 as Amended (Selected Provisions)......Page 908 Appendix L: Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 as Amended (Selected Provisions)......Page 909 Appendix M: Article 2 of Uniform Commercial Code (Selected Provisions)......Page 911 Glossary......Page 917 Index......Page 953 " With new cases and examples torn from the headlines, MANAGERS AND THE LEGAL ENVIRONMENT: STRATEGIES FOR THE 21ST CENTURY, 9E equips you with the legal knowledge and risk management techniques for success as a business manager. Cutting-edge coverage and a strategic approach teach you to enhance realizable value, redeploy resources, and manage legal and business risk. Up-to-date coverage addresses the rights of workers at firms, like Uber, in the "gig" economy; the right of employers to restrict employees' social media; ethics of compensating workers who are tipped; law to protect children's safety on the Internet; Fourth Amendment concerns in searches of cell location; rules governing "crowdfunding"; and the ramifications of the EU's "right to be forgotten." You learn to use legal tools to create value, attain business objectives, resolve legal issues, manage risk, and handle legal disputes." With new cases and examples torn from the headlines, MANAGERS AND THE LEGAL ENVIRONMENT: STRATEGIES FOR BUSINESS, 9E equips you with the legal knowledge and risk management techniques for success as a business manager. Cutting-edge coverage and a strategic approach teach you to enhance realizable value, redeploy resources, and manage legal and business risk. Up-to-date coverage addresses the rights of workers at firms, like Uber, in the'gig'economy; the right of employers to restrict employees'social media; ethics of compensating workers who are tipped; law to protect children's safety on the Internet; Fourth Amendment concerns in searches of cell location; rules governing'crowdfunding'; and the ramifications of the EU's “right to be forgotten.” You learn to use legal tools to create value, attain business objectives, resolve legal issues, manage risk, and handle legal disputes.