The Legal Environment of Business: Text and Cases -- Ethical, Regulatory, Global, and E-Commerce Issues (Available Titles Aplia)

LEGAL ENVIRONMENT OF BUSINESS is the #1 text for this course—setting the standard by delivering comprehensive, authoritative, and cutting-edge coverage in an interesting and accessible format. Its recipe for success includes the same "black letter law" flavor as its #1 Business Law counterpart Business Law by Clarkson, Miller, Jentz, and Cross, but with a more specific focus on current topics like ethics, government regulation, and administrative law. The cases, content, and features of the exciting new 7th edition have been meticulously and thoroughly updated, representing the latest developments. An excellent assortment of cases ranges from precedent-setting landmarks to recent decisions. Ethical, global, and e-commerce themes are integrated throughout, and numerous critical thinking exercises challenge students to apply what they've learned to real-world issues. The text also offers an unmatched range of support materials — including innovative online teaching and learning resources. It's no wonder that LEGAL ENVIRONMENT OF BUSINESS is used by more colleges and universities than any other business law text. 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