Verfügbarkeit: Business law :: THWS Bibkatalog

Business law: legal environment, online commerce, business ethics, and international issues

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Bibliographische Detailangaben
1. Verfasser:	Cheeseman, Henry R. (VerfasserIn)
Format:	Buch
Sprache:	English
Veröffentlicht:	Upper Saddle River, N.J. Pearson Prentice Hall 2007
Ausgabe:	6. ed.
Schlagworte:	Business law > United States USA
Online-Zugang:	Inhaltsverzeichnis
Beschreibung:	XX, 951 S. zahlr. Ill.
ISBN:	0131984934

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Datensatz im Suchindex

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adam_text	Contents Preface xvii PART I Legal Environment of Business and E-Commerce ...........1 1 Legal Heritage and Critical Legal Thinking.........................2 What Is Law?.............................3 Internet Law Online Commerce ¦ Students Plug In to the Internet................................4 Landmark Law ¦ Brown v. Board of Education ............6 Schools of Jurisprudential Thought.............6 Contemporary Trend ¦ Modern Schools of Jurisprudential Thought ....................................7 History of American Law....................8 International Law • The Civil Law System................9 Sources of Law in the United States............9 Contemporary Trend ¦ Department of Homeland Security ...................................11 Critical Legal Thinking.....................12 Case 1.1 ¦ U.S. Supreme Court PGA Tour, Inc. v. Martin .. .14 Working the Web Internet Exercises...........18 Business Law Cases.......................18 Issues in Business Ethics...................19 2 Court Systems and Jurisdiction.......20 State Court Systems ......................21 Contemporary Trend ¦ Specialized Courts Hear Commercial Disputes...................................23 Federal Court System......................23 U.S. Supreme Court.......................25 Contemporary Trend ¦ I ll Take You to the U.S. Supreme Court! ....................................27 Subject Matter Jurisdiction of Courts..........27 Personal Jurisdiction of Courts...............28 Case 2.1 ¦ U.S. Supreme Court Carnival Cruise Lines, Inc. v.Shute ....................................30 Working the Web Internet Exercises...........31 Business Law Cases.......................31 Issues in Business Ethics...................32 3 Litigation and Alternative Dispute Resolution.......................33 Pretrial Litigation Process ..................34 Internet Law Online Commerce ¦ E-Filings............36 Business Ethics ¦ Statute of Limitations ...............37 Dismissals and Pretrial Judgments............38 Settlement Conference ....................39 Contemporary Trend • Cost-Benefit Analysis of a Lawsuit ................................39 Trial...................................39 Case 3.1 ¦ Ferlito v. Johnson Johnson Products, Ine.................................41 Appeal.................................41 Alternative Dispute Resolution...............42 International Law • Japan s Legal System ..............43 Working the Web Internet Exercises...........44 Business Law Cases.......................44 Issues in Business Ethics...................45 4 Constitutional Law for Business and Online Commerce .............46 Constitution of the United States of America . . . .47 Supremacy Clause........................49 Case 4.1 • U.S. Supreme Court Geier v. American Honda Motor Company, Ine............................49 Commerce Clause ........................50 Case 4.2 ¦ U.S. Supreme Court Reno, Attorney General of the United States v. Condon, Attorney General of South Carolina .............................51 International Law ¦ Foreign Commerce Clause ..........52 Bill of Rights ............................52 Freedom of Speech........................53 Business Ethics • Commercial Speech ................54 Case 4.3 • U.S. Supreme Court United States v. Playboy Entertainment Group, Ine........................55 Internet Law Online Commerce • Sroacf Free Speech Rights Granted in Cyberspace...................56 Freedom of Religion.......................56 Equal Protection Clause....................57 Case 4.4 ¦ U.S. Supreme Court Grutter v. So/linger and the University of Michigan Law School ............58 Due Process Clause.......................59 Privileges and Immunities Clause.............59 Working the Web Internet Exercises...........60 Business Law Cases.......................60 Issues in Business Ethics...................62 PART II Forts, Crimes, and internet Law.....................63 5 Torts and Cyber Privacy ............64 Intentional Torts Against Persons.............65 Business Ethics ¦ Wal-Mart Loses False Imprisonment Case......................................66 Contemporary Trend • Eminem Not Liable for Slander.................................68 Case 5.1 • Roach v. Stern ..........................69 Intentional Torts Against Property ............70 Unintentional Torts (Negligence) .............71 Business Ethics ¦ Ouch! The Coffee s Too Hot!...........72 Case 5.2 ¦ Wilhelm v. Flores ........................73 Contexts Case 5.3 ¦ James v. Meow Media, Ine..................73 Landmark Law ¦ Palsgraf v. The Long Island Railroad Company ..................................75 Special Negligence Doctrines................75 Case 5.4 ¦ Matthias v. Accor Economy Lodging, Inc. and Motel 6 Operating Lfi ......................79 Defenses Against Negligence................79 Case 5.5 ¦ Lilya v. The Greater Gulf State Fair, Ine.........80 Strict Liability ...........................81 Case 5.6 ¦ Cook v. Whitsell-Sherman..................82 Working the Web Internet Exercises...........83 Business Law Cases.......................83 Issues In Business Ethics...................85 6 Strict Liability and Product Liability . . .86 Negligence and Fault......................87 Case 6.1 ¦ Benedi v. McNeil-RP.C, Incorporated .........88 Strict Liability ...........................89 Contemporary Trend • Strict Liability..................90 Defect in Manufacture.....................91 Case 6.2 ¦ Shoshone Coca-Cola Bottling Co. v. Dolinski___92 Defect in Design .........................92 Case 6.3 ¦ Lakin v. Senco Products, Ine................93 Business Ethics ¦ Design Defect in Pool Equipment.......94 Failure to Warn ..........................94 Defect in Packaging.......................95 Case 6.4 • Elsroth v. Johnson Johnson...............95 Defenses to Product Liability ................96 Business Ethics ¦ General Motors Liable for Design Defect.....................................97 Working the Web Internet Exercises.......... .99 Business Law Cases.......................99 Issues in Business Ethics..................100 7 Intellectual Property and Internet Law........... ................102 Trade Secrets...........................103 Internet Law Online Commerce ¦ The Economic Espionage Act..............................104 Patents and Cyber Patents.................104 Case 7.1 ¦ U.S. Supreme Court J.EM. Ag Supply, Inc., d.b.a. Farm Advantage. Inc. v. Pioneer Hi-Bred International. Ine.............................105 Internet Law Online Commerce ¦ Cyber Business Plans Are Patentable .............................106 Business Ethics ¦ Patent Infringement................107 Copyrights and Software Copyrights..........107 Contemporary Trend ¦ Copyright Protection............108 Internet Law Online Commerce ¦ The NET Act: Criminal Copyright Infringement .......................109 Case 7.2 ¦ Newton v. Beastie Boys ..................109 Business Ethics ¦ Copyright Infringement .............110 Internet Law Online Commerce ¦ Encryption Technology ................................110 Trademarks and Online Commerce ...........Ill Case 7.3 • U.S. Supreme Court Two Pesos. Inc. v. Taco Cabana. Ine.................................113 The Internet............................116 Case 7.4 ¦ John Doe v. GTE Corporation...............117 Domain Names..........................118 Internet Law Online Commerce ¦ Electronic Communications Privacy Act ...................119 International Law ¦ International Protection of Intellectual Property Rights.............................119 Working the Web Internet Exercises..........119 Business Law Cases......................120 Issues in Business Ethics..................121 8 Business and Online Crimes........123 Definition of a Crime......................124 Business Ethics ¦ Martha Stewart Guilty of a Crime......127 Criminal Procedure.......................127 Case 8.1 ¦ U.S. Supreme Court Atwater v. Lago Vista, Texas .....................................128 Internet Law Online Commerce ¦ Cyber Crimes.......129 Common Crimes.........................130 White-Collar Crimes ......................131 International law-Foreign Corrupt Practices Act.......132 Internet Law Online Commerce • Cyber Identity Fraud . .133 Contemporary Trend ¦ Money Laundering.............134 Corporate Criminal Liability.................134 Protection Against Unreasonable Search and Seizure ...............................135 Case 8.2 ¦ U.S. Supreme Court Kyllo v. United States .. .136 Case 8.3 ¦ U.S. Supreme Court City of Indianapolis v. Edmond...................................137 Contemporary Trend ¦ Federal Antiterrorism Act ........138 Privilege Against Self-lncrimination and Other Protections ............................138 Working the Web Internet Exercises..........140 Business Law Cases......................140 Issues in Business Ethics..................141 PART III Traditional and E-Commerce Contracts................143 9 Nature of Traditional and Online Contracts.......................144 Definition of Contract.....................145 Contemporary Trend • The Evolution of the Modern Law of Contracts ...............................146 Sources of Contract Law...................147 Case 9.1 ¦ City of Everett, Washington v. Mitchell........148 Internet Law Online Commerce ¦ Uniform Electronic Commerce Act Adopted .......................149 Classifications of Contracts ................149 Case 9.2 ¦ Wrench LLC v. Taco Bell Corporation.........150 Equity ................................153 Business Ethics ¦ Equity Saves Contracting Party .......153 International Law • The United Nations Convention on Contracts for the International Sale of Goods......154 Working the Web Internet Exercises..........154 Business Law Cases......................155 Issues in Business Ethics..................155 Contents 10 Agreement......................156 Agreement.............................157 Offer .................................157 Business Ethics -A Contract Is a Contract Is a Contract . .158 Special Offers ..........................159 Case 10.1 ¦ Mesaros v. United States................159 Case 10.2 ¦ Lim v. The.W Corporation International......161 Termination of Offers .....................162 Contemporary Trend ¦ Option Contracts ..............164 Acceptance............................164 Internet Law Online Commerce ¦ Nondisclosure Agreements ...............................167 Working the Web Internet Exercises..........167 Business Law Cases......................167 Issues in Business Ethics..................168 11 Consideration and Equity..........170 Consideration...........................171 Case 11.1 ¦ Alden v. Presley .......................172 Case 11.2 • Cooper v. Smith.......................173 Contemporary Trend • When Is Consideration Inadequate?...............................174 Contracts Lacking Consideration ............174 Case 11.3 • Dementas v. Estate ofTallas..............175 Contemporary Trend ¦ Special Business Contracts ......177 Settlement of Claims .....................177 Equity: Promissory Estoppel................177 Working the Web Internet Exercises..........179 Business Law Cases......................179 Issues in Business Ethics..................180 12 Capacity and Legality.............182 Minors................................183 Case 12.1 -Jones v. Free Flight Sport Aviation, Ine.......185 Contemporary Trend ¦ Special Types of Minors Contracts .186 Mentally Incompetent Persons..............186 Intoxicated Persons......................187 Legality...............................187 Case 12.2 • Hood v. Fidelity Guaranty Life Insurance Co................................189 Case 12.3• Ryno v.Tyra ..........................190 Lawfulness of Special Business Contracts......191 Business Ethics • ^n Unlicensed Contractor Gets Dunked .192 Case 12A-Zivich v. Mentor Soccer Club. Ine...........193 Contemporary Trend ¦ Covenant Not to Compete .......194 Unconscionable Contracts .................194 Working the Web Internet Exercises..........195 Business Law Cases......................195 Issues in Business Ethics..................197 13 Genuineness of Assent ............198 Mistake...............................199 Case 13.1 ¦ Wells Fargo Credit Corp. v. Martin..........200 Fraud.................................201 Case 13.2 ¦ Wilson v. Western national Life Insurance Co................................203 Undue Influence.........................204 Duress................................205 Business Ethics ¦ Economic Duress .................205 Working the Web Internet Exercises..........206 Business Law Cases......................206 Issues in Business Ethics..................207 14 Writing and Formality.............209 Statute of Frauds........................210 Contracts That Must Be in Writing...........211 Case 14.1 • Sutton v. Warner.......................212 Business Ethics ¦ An Oral Contract Isn t Worth the Paper It s Written On..............................214 Formality of the Writing ...................215 International Law ¦ Chinese Chops and Japanese Hankos as Signatures..............................215 Parol Evidence Rule......................217 Working the Web Internet Exercises..........218 Business Law Cases......................218 Issues in Business Ethics..................220 15 Third-Party Rights and Discharge . . .221 Assignment of Rights.....................222 Case 15.1 ¦ Accrued Financial Services, Incorporated v. Prime Retail, Incorporated....................224 Contemporary Trend • Successive Assignments of the Same Right...........................225 Delegation of Duties......................225 Third-Party Beneficiaries...................226 Case 15.2 ¦ Bain v. Gillispie........................229 Covenants and Conditions .................229 Discharge of Performance..................231 Working the Web Internet Exercises..........233 Business Law Cases......................234 Issues in Business Ethics..................235 16 Remedies for Breach of Traditional and Online Contracts .............236 Performance and Breach ..................237 Case 16.1 ¦ Chodos v. West Publishing Company, Ine........................................239 Monetary Damages ......................240 Case 16.2 ¦ Parker v. Twentieth Century-Fox Film Corp. . . .242 Case 16.3 • California and Hawaiian Sugar Co. v. Sun Ship, Ine..............................243 Rescission and Restitution.................245 Contemporary Trend ¦ Must a Wedding Ring Be Returned if the Engagement Is Broken Off?................245 Equitable Remedies......................246 Torts Associated with Contracts.............246 Business Ethics ¦ Interference with a Contract .........247 Case 16.4 • O Neill v. Gallant Insurance Company.......248 Working the Web Internet Exercises..........249 Business Law Cases......................249 Issues in Business Ethics..................251 17 E-Contracts and Licensing.........253 The Internet and World Wide Web............254 Contents Domain Names..........................255 Internet Law Online Commerce ¦ Domain Name AnticybersquattingAct .......................256 Case 17.1 ¦ E. i. Gallo Winery v. Spider Webs Ltd......257 Internet Law Online Commerce ¦ Armani Outmaneuvered for Domain Name...............257 E-Contracts ............................258 Internet Law Online Commerce ¦ E-Contracts Writing Requirement...............................258 Internet Law Online Commerce ¦ E-Signatures .......258 E-Licensing ............................259 Internet Law Online Commerce ¦ Counteroffers Ineffectual Against Electronic Agents .............260 Internet Law Online Commerce ¦ Consumers Saved from Electronic Errors ........................261 Internet Law Online Commerce ¦ Electronic Self-Help .................................262 Case 17.2 • MA Mortenson Company, Inc. v. Timberline Software Corporation.........................263 Working the Web Internet Exercises..........265 Business Law Cases......................265 Issues in Business Ethics..................266 PART IV Domestic and International Sales and Lease Contracts . . .269 18 Formation of Sales and Lease Contracts.......................270 Uniform Commercial Code (UCC) ............271 Article 2 (Sales).........................272 Case 18.1 ¦ Hector v. Cedars-Sinai Medical Center......273 Article 2A (Leases) ......................274 Formation of Sales and Lease Contracts: Offer . .275 Contemporary Trend ¦ UCC Firm Offer Rule...........276 Formation of Sales and Lease Contracts: Acceptance............................277 Contemporary Trend ¦ UCC Permits Additional Terms.....277 Contemporary Trend ¦ ßa!i/e of the Forms ...........278 UCC Statute of Frauds ....................278 Contemporary Trend ¦ UCC Written Confirmation Rule . .. .279 International Law ¦ Letters of Credit m International Trade .281 Working the Web Internet Exercises..........2S1 Business Law Cases......................282 Issues in Business Ethics..................283 19 Performance of Sales and Lease Contracts.......................284 Identification and Passage of Title ...........285 Risk of Loss: No Breach of Sales Contract......2S6 Contemporary Trend ¦ Snipping Terms ...............287 Risk of Loss: Conditional Sales..............288 Case 19.1 ¦ Pre.vitt v. Numismatic Funding Corp........289 Risk of Loss: Breach of Sales Contract........290 Risk of Loss: Lease Contracts...............290 Contemporary Trend ¦ Insuring Against Loss of Goods .. . .290 Sales by Nonowners......................291 International Law ¦ International Trade Terms ..........292 Working the Web Internet Exercises..........292 Business Law Cases......................293 Issues in Business Ethics..................294 20 Remedies for Breach of Sales and Lease Contracts ..............295 Seller s and Lessor s Performance............296 Case 20.1 ¦ Joe 0/1 USA, inc. v. Consolidated Edison Co. ofNewYork, Ine..............................298 Business Ethics ¦ Good Faith and Reasonableness......300 Buyer s and Lessee s Performance ...........300 Seller s and Lessor s Remedies..............302 Contemporary Trend ¦ Lost Volume Seller.............304 Buyer s and Lessee s Remedies .............305 Additional Performance Issues ..............307 Business Ethics ¦ Unconscionable Contract ...........308 Working the Web Internet Exercises..........309 Business Law Cases......................310 Issues in Business Ethics..................311 21 Sales and Lease Warranties.........312 Express Warranty........................313 Case 21.1 ¦ Daughtrey v. Ashe......................314 Implied Warranty of Merchantability..........315 Case 21.2 • Denny v. Ford Motor Company............316 Implied Warranty of Fitness for a Particular Purpose...............................317 Case 21.3 ¦ Mack Massey Motors, inc. v. Gamica .......318 Warranty Disclaimer......................319 Internet Law Online Commerce • Warranty Disclaimers in Software Licenses.........................319 Magnuson-Moss Warranty Act..............320 Special Warranties of Title and Possession.....320 Working the Web Internet Exercises..........322 Business Law Cases......................322 Issues in Business Ethics..................323 PART V Negotiable Instruments and Electronic Banking.....325 22 Creation of Negotiable Instruments.....................326 Negotiable Instruments ...................327 Types of Negotiable Instruments.............328 Creating a Negotiable Instrument............332 Contemporary Trend ¦ Authorized Representative s Signature .................................333 Unconditional Promise or Order to Pay ........333 Contemporary Trend • Payable to Order or to Bearer.....334 Fixed Amount of Money ...................335 Payable On Demand or at a Definite Time ......336 Nonnegotiable Contract ...................337 International Law ¦ Negotiable Instruments Payable in Foreign Currency..........................338 Working the Web Internet Exercises..........338 Business Law Cases......................338 Issues in Business Ethics..................340 Contents 23 Transferability and Holder in Due Course.........................341 Transfer by Assignment ...................342 Transfer by Negotiation....................343 Indorsement............................344 Types of Indorsements ....................345 Holder in Due Course (HDC) ................349 Requirements for HDC Status...............350 Contemporary Trend ¦ Shelter Principle...............352 Working the Web Internet Exercises..........353 Business Law Cases......................353 Issues in Business Ethics..................354 24 Liability, Defenses, and Discharge . . . .355 Signature Liability .......................356 Case 24.1 ¦ Grand Island Production Credit Assn. v. Humphrey................................357 Forged Indorsement......................361 Business Ethics • Imposter Rule....................361 Business Ethics ¦ Fictitious Payee Rule...............362 Warranty Liability........................362 Defenses..............................363 Contemporary Trend • FTC Rule Limits HDC Status ......366 Discharge .............................367 Working the Web Internet Exercises..........367 Business Law Cases......................367 25 Checks, Banking, and Wire Transfers .371 The Bank-Customer Relationship............372 Ordinary Checks.........................373 Internet Law Online Commerce ¦ Electronic Fund Transfer Systems............................374 Special Types of Checks...................374 Internet Law Online Commerce • Bank Debit Cards . .. .377 Honoring Checks ........................377 Contemporary Trend ¦ Federal Currency Reporting Law .. .379 Forged Signatures and Altered Checks........379 The Collection Process....................381 Commercial Wire Transfers.................384 Working the Web Internet Exercises..........385 Business Law Cases......................386 Issues in Business Ethics..................387 PART VI Credit and Bankruptcy .....389 26 Credit and Security Interests in Real Property....... .................390 Introduction to Credit.....................391 Contemporary Trend • Unsecured Credit..............392 Security Interest in Real Property............392 Recording Statute .......................394 Case 26.1 ¦ Bank of South Palm Beaches v. Stockton, Whatley. Davin Company.....................394 Foreclosure ............................395 Material Person s Lien ....................397 Working the Web Internet Exercises..........398 Business Law Cases......................398 Issues in Business Ethics..................399 27 Secured Transactions and Security Interests in Personal Property .......400 Security Interest in Personal Property.........401 Secured Transaction—Revised Article 9 of the UCC.............................401 Creating a Security Interest ................403 Perfecting a Security Interest...............404 Case 27.1 • In re Greenbelt Cooperative, Ine...........405 Case 27.2 ¦ In re Phillips..........................406 Priority of Claims ........................407 Default and Remedies ....................409 Artisan s or Mechanic s Liens...............411 Surety and Guaranty Arrangements...........411 Case 27.3 ¦ General Motors Acceptance Corporation v. Daniels..................................412 Working the Web Internet Exercises..........413 Business Law Cases......................413 Issues in Business Ethics..................415 28 Bankruptcy and the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 .....................416 Bankruptcy Abuse Prevention and Consumer Protection Act of 2005....................417 Bankruptcy Procedure ....................419 The Bankruptcy Estate....................424 Contemporary Trend • 2005 Act Limits the Homestead Exemption ................................425 Preferential and Fraudulent Transfers .........426 Chapter 7—Liquidation....................428 Case 28.1 ¦ U.S. Supreme Court Kawaauhau v. Geiger...................................433 Contemporary Trend ¦ Discharge of Student Loans ......434 Chapter 13—Adjustment of Debts of an Individual with Regular Income..............435 Chapter 11—Reorganization................438 Contemporary Trend • Small Business Bankruptcy ......443 Chapter 12—Family Farmer and Family Fisherman Bankruptcy....................443 Business Ethics • Bankruptcy Fraud .................446 Special Forms of Bankruptcy ...............446 Working the Web Internet Exercises..........446 Business Law Cases......................447 Issues in Business Ethics..................448 PART VII Agency and Employment ...449 29 Agency Formation and Termination . .450 Agency ...............................451 Formation of an Agency ...................453 Business Ethics ¦ Apparent Agency..................454 Principal s and Agent s Duties...............455 Termination of an Agency..................457 Working the Web Internet Exercises..........460 Business Law Cases......................460 Issues in Business Ethics..................461 Contents 30 Liability of Principals and Agents . . . .462 Agent s Duty of Loyalty to the Principal........463 Contract Liability to Third Parties............464 Tort Liability to Third Parties................466 Case 30.1 ¦ Edgewater Motels, Inc. v. Gatzke and Walgreen Co.............................467 Case 30.2 • Desert Cab Inc. v. Marino................469 Independent Contractor...................470 Case 30.3 ¦ Torres v. Reardon......................472 Business Ethics ¦ Principal Liable for Repo Man s Tort___473 Working the Web Internet Exercises..........473 Business Law Cases......................473 Issues in Business Ethics..................475 31 Employment and Worker Protection Laws .........................477 Employment at Will ......................478 Workers Compensation ...................479 Case 31.1 • Smith v. Workers Compensation Appeals Board.....................................480 Occupational Safety......................480 Fair Labor Standards Act (FLSA).............481 Business Ethics ¦ Microsoft Violates Employment Law . . . .482 Family and Medical Leave Act...............482 Consolidated Omnibus Budget Reconciliation Act (COBRA) ..............................483 Employment Retirement Income Security Act (ERISA) ...............................483 Immigration Reform and Control Act (IRCA) . . . .483 Contemporary Trend • Drug Testing and Polygraph Tests.....................................483 Government Programs ....................484 Working the Web Internet Exercises..........485 Business Law Cases......................485 Issues in Business Ethics..................487 32 Labor Law......................489 Labor Law .............................490 Organizing a Union.......................491 Case 32.1 ¦ U.S. Supreme Court Lecnmere. Inc. v. National Labor Relations Board................492 Case 32.2 ¦ U.S. Supreme Court National Labor Relations Board v. Exchange Parts Co.............493 Collective Bargaining.....................494 Case 32.3 ¦ U.S. Supreme Court Marquez v. Screen Actors Guild. Ine.............................495 Contemporary Trend -State Right-to-Work Laws........496 Strikes and Picketing.....................496 Internal Union Affairs .....................498 Working the Web Internet Exercises..........498 Business Law Cases......................498 Issues in Business Ethics..................500 33 Equal Opportunity in Employment..................501 Equal Employment Opportunity Commission (EEOC) ...............................502 Title VII of the Civil Rights Act..............502 Case 33.1 ¦ National Association for the Advancement of Colored People, Newark Branch v. Town of Harrison, New Jersey.................................504 Case 33.2 • Barbano v. Madison County..............505 Case 33.3 ¦ U.S. Supreme Court Harris v. Forklift Systems, Ine................................506 Contemporary Trend ¦ Employees Defense to a Charge of Sexual Harassment........................507 Case 33.4 ¦ U.S. Supreme Court International Union, United Automobile, Aerospace and Agricultural implement Workers of America, UAW v. Johnson Controls, Inc. .. .508 Civil Rights Act of 1866...................510 Equal Pay Act...........................510 Age Discrimination in Employment Act ........511 Americans with Disabilities Act .............511 Case 33.5 ¦ U.S. Supreme Court PGA Tour, Inc. v. Martin .512 Affirmative Action .......................513 State and Local Government Antidiscrimination Laws .................................514 International Law ¦ International Reach of U.S. Antidiscrimination Laws ......................514 Working the Web Internet Exercises..........514 Business Law Cases......................515 Issues in Business Ethics..................516 PART VIII Business Organizations and Ethics...............517 34 Entrepreneurship, Sole Proprietorships, and General Partnerships...........518 Entrepreneurship ........................519 Sole Proprietorship.......................520 Contemporary Trend ¦ d.b.a- Doing Business As .......520 Case 34.1 • Vernon v. Schuster, d/b/a Diversity Heating and Plumbing...............................521 General Partnership......................522 Case 34.2 ¦ Vohland v. Sweet......................524 Rights and Duties of General Partners.........525 Liability of General Partners ................527 Case 34.3 ¦ Zuckerman v. Antenucci.................528 Case 34.4 ¦ Edward A. Kemmler Memorial Foundation v. Mitchell..................................529 Dissolution of a General Partnership..........530 Contemporary Trend ¦ Right of Survivorship ...........532 Working the Web Internet Exercises..........532 Business Law Cases......................532 Issues in Business Ethics..................534 35 Limited Partnerships..............535 Limited Partnership ......................536 Formation of a Limited Partnership...........537 Contemporary Trend ¦ Master Limited Partnership.......540 Liability of General and Limited Partners.......540 Dissolution of a Limited Partnership..........542 Working the Web Internet Exercises..........543 Contents Business Law Cases......................543 Issues in Business Ethics..................544 36 Domestic and Multinational Corporations....................545 Nature of the Corporation..................546 Contemporary Trend ¦ Selecting a Corporate Name......549 Incorporation Procedures ..................550 Contemporary Trend ¦ S Corporations................555 Financing the Corporation .................555 Contemporary Trend • Stock Options and Stock Warrants .557 Contemporary Trend • Close Corporation .............559 Corporate Powers........................559 Dissolution and Termination of Corporations . . . .560 International Law ¦ International Branch Offices........561 International Law • International Subsidiary Corporation . .561 Working the Web Internet Exercises..........562 Business Law Cases......................562 Issues in Business Ethics..................564 37 Corporate Directors, Officers, and Shareholders.................565 Shareholders ...........................566 Case 37.1 ¦ Kinney Shoe Corp. v. Polan...............572 Internet Law Online Commerce ¦ Corporation Codes Recognize Electronic Communications..............572 Board of Directors .......................573 Business Ethics ¦ Sarbanes-Oxley Act Imposes Duties on Audit Committee..........................575 Corporate Officers .......................576 Business Ethics • Sarbanes-Oxley Act Improved Corporate Governance ...............................577 Liability of Directors and Officers ............577 Case 37.2 ¦ Smith v. Van Gorkom ...................579 Contemporary Trend ¦ Indemnification and D O Insurance Protection.........................582 Criminal Liability ........................582 Working the Web Internet Exercises..........582 Business Law Cases......................583 Issues in Business Ethics..................584 38 Corporate Mergers, Tender Offers, and Shareholder Resolutions........586 Proxy Solicitation........................587 Shareholder Resolution....................589 Business Ethics • Shareholder Resolution.............589 Mergers and Acquisitions..................590 Case 38.1 -In the Matter of the Appraisal of Shell Oil Company..................................593 Tender Offers...........................594 Contemporary Trend ¦ Leveraged Buyouts.............595 Case 38.2 • Paramount Communications Inc. v. QVC Network Ine....................................597 State Antitakeover Statutes................598 Case 38.3 ¦ U.S. Supreme Court CTS Corporation v. Dynamics Corporation of America..............598 International Law ¦ The Exon-Florio Law ..............599 Working the Web Internet Exercises..........599 Business Law Cases......................600 Issues in Business Ethics..................602 39 Limited Liability Companies and Limited Liability Partnerships . . .604 Limited Liability Company (LLC) .............605 Contemporary Trend ¦ DreamWorks SKG, LLC..........606 Member s Limited Liability .................606 Case 39.1 ¦ Page v. Roscoe, LLC....................607 Case 39.2 ¦ Creative Resource Management, Inc. v. Soskin...................................609 Formation of an LLC......................610 Contemporary Trend • Why Operate a Business as a Limited Liability Company (LLC)?............613 Management of an LLC....................613 Dissolution of an LLC .....................616 Limited Liability Partnership (LLP) ...........617 Contemporary Trend ¦ Accounting Firms Operate asLLPs...................................619 Working the Web Internet Exercises..........619 Business Law Cases......................619 Issues in Business Ethics..................621 40 Franchises and Special Forms of Business......................622 Franchise..............................623 International Law • International Franchising ..........628 Liability of Franchisor and Franchisee .........628 Case 40.1 ¦ Cislaw v. Southland Corporation...........629 Case 40.2 • Martin v. McDonald s Corporation..........630 Case 40.3 ¦ Holiday Inns, Inc. v. Sheiburne............631 Licensing..............................632 Joint Venture ...........................633 International Law- Ch/nese-U.S. International ¡oint Venture...................................634 Strategic Alliance........................635 Internet Law Online Commerce ¦ Strategic Internet Alliances in China...........................635 Working the Web Internet Exercises..........635 Business Law Cases......................636 Issues in Business Ethics..................637 41 Investor Protection and Online Securities Transactions.............639 The Securities and Exchange Commission (SEC).................................640 Case 41.1 • U.S. Supreme Court Securities and Exchange Commission v. Edwards ............641 Going Public—The Securities Act of 1933......642 Internet Law Online Commerce ¦ Going Public over the Internet................................643 Contemporary Trend ¦ Small Corporate Offering Registration Form (SCOR).....................645 Case 41.2 ¦ Escott v. BarChris Construction Corp........64b Private and Other Transactions Exempt from Registration............................647 Contents Trading in Securities—The Securities Exchange Act of 1934............................649 Case 41.3 • Securities and Exchange Commission v. Texas Gulf Sulphur Co..............................650 Case 41.4 • U.S. Supreme Court United States v. O Hagan .................................651 Short-Swing Profits ......................653 State Securities Laws.....................654 Business Ethics • Sarbanes-Oxley Act Erects a Wall Between Investment Bankers and Security Analysis ..................................654 Working the Web Internet Exercises..........655 Business Law Cases......................655 Issues in Business Ethics..................657 42 Ethics and Social Responsibility of Business......................659 Ethics and the Law.......................660 Business Ethics.........................661 Business Ethics ¦ Qui Tarn Lawsuit ..................661 Case 42.1 ¦ Bradley v. (McDonald s Corporation.........662 Case 42.2 • Pizza Hut, Inc. v. Papa John s international, Ine........................................664 Business Ethics ¦ Enron Corporation Plunges into Bankruptcy ............................665 Social Responsibility of Business ............667 Case 42.3 • Wal-Mart Stores, Inc. v. Samara Brothers, Ine........................................667 Business Ethics ¦ State Farm: Not Sucri a Good Neighbor .................................669 Business Ethics ¦ Sarbanes-Oxley Act Prompts Public Companies to Adopt Code of Ethics..............670 International Law • United Nations Code of Conduct forlransnational Corporations..................671 Working the Web Internet Exercises..........672 Issues in Business Ethics..................672 PART IX Government Retçiilation . . . .675 43 Administrative Law...............676 Administrative Agencies...................677 Administrative Law.......................678 Case 43.1 ¦ U.S. Supreme Court Food and Drug Administration v. Brown Williamson Tobacco Corporation ................................680 Case 43.2 • U.S. Supreme Court New York v. Burger.....682 Judicial Review of Administrative Agency Actions . .683 Disclosure of Agency Administrative Actions . . . .684 Working the Web Internet Exercises..........686 Business Law Cases......................686 Issues in Business Ethics..................687 44 Consumer Protection..............689 Food, Drug, and Cosmetic Safety ............690 Contemporary Trend • Food Safety..................691 Business Ethics • Safety Warnings About Viagra ........692 Product Safety..........................692 Business Ethics ¦ Lemon Laws.....................693 Unfair and Deceptive Practices..............693 Case 44.1 ¦ U.S. Supreme Court Federal Trade Commission v. Colgate-Palmolive Company .........694 Business Ethics ¦ Do-Not-Call Registry...............695 Debtor Protection Law....................695 International Law ¦ United Nations Biosafety Protocol for Genetically Altered Foods...................697 Working the Web Internet Exercises..........698 Business Law Cases......................698 Issues in Business Ethics..................700 45 Environmental Protection..........701 Environmental Protection..................702 Air Pollution............................703 Case 45.1 ¦ U.S. Supreme Court Whitman, Administrator of Environmental Protection Agency v. American Trucking Association..........................704 Contemporary Trend ¦ Indoor Air Pollution.............704 Water Pollution .........................705 Case 45.2 ¦ U.S. Supreme Court Solid Waste Agency of Northern Cook County, Illinois v. United States Army Corps of Engineers ......................706 Business Ethics ¦ Illegal Dumping of Pollutants.........707 Toxic Substances and Hazardous Waste.......707 Contemporary Trend ¦ Superfund...................708 Endangered Species......................709 Case 45.3 ¦ U.S. Supreme Court Tennessee Valley Authority v. Hill, Secretary of the Interior............710 State Environmental Protection Laws .........711 International Law ¦ Kyoto Protocol..................711 Working the Web Internet Exercises..........712 Business Law Cases......................712 Issues in Business Ethics..................714 46 Antitrust Law ...................715 Federal Antitrust Laws................... .716 Restraints of Trade—Section 1 of the Sherman Act ..................................717 Business Ethics ¦ The Department of Justice Flunks the Ivy League Schools .......................719 Case 46.1 • U.S. Supreme Court State Oil Company v.Khan....................................722 Contemporary Trend ¦ Trade Association Members Avoid Antitrust Liability............................723 Monopolization—Section 2 of the Sherman Act . .723 Internet Law Online Commerce ¦ United States v. Microsoft Corporation ......................725 Mergers—Section 7 of the Clayton Act........726 Tying Arrangements—Section 3 of the Clayton Act ..................................728 Price Discrimination—Section 2 of the Clayton Act ..................................729 Unfair Methods of Competition—Section 5 of the Federal Trade Commission Act..........730 Exemptions from Antitrust Laws.............731 State Antitrust Laws .....................731 Working the Web Internet Exercises..........732 Business Law Cases......................732 Issues in Business Ethics..................734 Contents PartX Property.................737 47 Personal Property and Bailment .....738 Personal Property........................739 Acquiring Ownership of Personal Property......739 Case 47.1 ¦ Gruen v. Gruen........................741 Case 47.2 • Giha v. Giria..........................742 Mislaid, Lost, and Abandoned Personal Property...............................743 Case 47.3 ¦ Willsmore v. Township of Oceola, Michigan ..................................744 Bailments .............................745 Case 47.4 ¦ Sisters of Charity of the Incarnate Word v. Meaux...................................746 International Law ¦ Treasure Trove ..................750 Working the Web Internet Exercises..........751 Business Law Cases......................751 Issues in Business Ethics..................753 48 Real Property....................754 Real Property...........................755 Contemporary Trend ¦ Air Rights....................756 Estates in Land .........................756 Concurrent Ownership ....................757 Case 48.1 • Cunningham v. Hastings.................760 Future Interests.........................760 Transfer of Ownership of Real Property........761 Case 48.2 • The Howard Savings Bank v. Brunson.......762 Case 48.3 ¦ Witt v. Miller..........................764 Nonpossessory Interests ..................765 Case 48.4 ¦ Walker v. Ayres........................766 Working the Web Internet Exercises..........767 Business Law Cases......................767 Issues in Business Ethics..................768 49 Landlord-Tenant Relationship and Land Use Regulation ..........770 Landlord-Tenant Relationship...............771 Landlord s and Tenant s Duties..............773 Case 49.1 ¦ Solow v. Wellner.......................775 Premise Liability.........................776 Case 49.2 • Feld v. Merriam .......................776 Transfer of Rights to Leased Property.........777 Contemporary Trend ¦ Rent Control .................779 Land Use Control ........................780 Case 49.3 ¦ Guinnane v. San Francisco City Planning Commission................................780 Working the Web Internet Exercises..........783 Business Law Cases......................783 Issues in Business Ethics..................784 PART XI Special Topics ............7X5 50 Insurance.......................786 Insurance..............................787 Case 50.1 -Amex Life Assurance Company v. Slome Capital Corp................................789 Life Insurance ..........................790 Health and Disability Insurance..............792 Fire and Homeowners Insurance ............792 Contemporary Trend ¦ Mold Eats Away at Insurers Profits....................................794 Automobile Insurance.....................794 Contemporary Trend ¦ Umbrella Insurance Policy .......796 Business Insurance ......................797 Working the Web Internet Exercises..........799 Business Law Cases......................799 Issues in Business Ethics..................800 51 Liability of Accountants ...........802 Public Accounting .......................803 Liability of Accountants to Their Clients .......805 Liability of Accountants to Third Parties.......806 Case 51.1 ¦ Credit Alliance Corporation v. Arthur Andersen Co..............................807 Case 51.2 ¦ Industria/ Loan Thrift Guaranty Corporation of Iowa v. Reese Company, PC.................808 Liability of Accountants Under Securities Laws . .810 Business Ethics • Accountant s Duty to Report Client s Illegal Activity ..............................811 Criminal Liability of Accountants.............812 Accountants Privilege and Work Papers.......813 Contemporary Trend ¦ Sarbanes-Oxley Act Regulates Accounting Practices.........................813 Working the Web Internet Exercises..........814 Business Law Cases......................814 Issues in Business Ethics..................816 52 Wills, Trusts, and Living Wills......817 Will ..................................818 Contemporary Trend ¦ Videotaped Wills ..............822 Testamentary Gift .......................822 Case 52.1 ¦ Opperman v. Anderson..................825 Intestate Succession.....................825 Contemporary Trend ¦ Living Will and Health Care Proxy ....................................826 Trust .................................826 Living Trust ............................829 Working the Web Internet Exercises..........830 Business Law Cases......................830 Issues in Business Ethics..................832 53 Family Law.....................833 Premarriage Issues ......................834 Marriage ..............................835 Contemporary Trend ¦ Same Sex Marriage ............836 Parents and Children .....................837 Contemporary Trend ¦ Surrogacy ...................838 Marriage Termination.....................839 Division of Assets........................841 Spousal Support, Child Support, and Child Custody...............................842 Contemporary Trend ¦ Family Support Act.............843 Working the Web Internet Exercises..........845 Business Law Cases......................845 Issues in Business Ethics..................846 Contents PART XII Global Environment.......847 54 International and World Trade Law . .848 The United States and Foreign Affairs.........849 Case 54.1 ¦ U.S. Supreme Court Crosby, Secretary of Administration and Finance of Massachusetts v. National Foreign Trade Council ................850 Sources of International Law................850 The United Nations.......................851 International Law ¦ International Monetary Fund (IMF) ....................................853 International Law ¦ World Bank ....................854 Regional International Organizations..........854 International Law ¦ Free Trade Area of the Americas (FTAA) ...................................857 The World Trade Organization (WTO)..........858 International Law ¦ China Joins the WTO..............858 International Law ¦ The International Criminal Court.....860 National Courts to Decide International Disputes ..............................860 International Law • Jewish Law and the Torah ..........863 International Law ¦ Islamic Law and the Koran .........863 International Law ¦ Hindu /.aw-Dharmasastra .........864 Working the Web Internet Exercises..........864 Business Law Cases......................864 Issues in Business Ethics..................865 APPENDIX A The Constitution of the United States ......867 APPENDIX B Uniform Commercial Code (2002 Official Text), Article 2...............877 APPENDIX C Sarbanes-Oxley Act of 2002 (Excerpts) .......891 Glossary ..........................897 Case Index.........................925 Subject Index.......................931
adam_txt	Contents Preface xvii PART I Legal Environment of Business and E-Commerce .1 1 Legal Heritage and Critical Legal Thinking.2 What Is Law?.3 Internet Law Online Commerce ¦ Students Plug In to the Internet.4 Landmark Law ¦ Brown v. Board of Education .6 Schools of Jurisprudential Thought.6 Contemporary Trend ¦ Modern Schools of Jurisprudential Thought .7 History of American Law.8 International Law • The Civil Law System.9 Sources of Law in the United States.9 Contemporary Trend ¦ Department of Homeland Security .11 Critical Legal Thinking.12 Case 1.1 ¦ U.S. Supreme Court PGA Tour, Inc. v. Martin . .14 Working the Web Internet Exercises.18 Business Law Cases.18 Issues in Business Ethics.19 2 Court Systems and Jurisdiction.20 State Court Systems .21 Contemporary Trend ¦ Specialized Courts Hear Commercial Disputes.23 Federal Court System.23 U.S. Supreme Court.25 Contemporary Trend ¦ "I'll Take You to the U.S. Supreme Court!".27 Subject Matter Jurisdiction of Courts.27 Personal Jurisdiction of Courts.28 Case 2.1 ¦ U.S. Supreme Court Carnival Cruise Lines, Inc. v.Shute .30 Working the Web Internet Exercises.31 Business Law Cases.31 Issues in Business Ethics.32 3 Litigation and Alternative Dispute Resolution.33 Pretrial Litigation Process .34 Internet Law Online Commerce ¦ E-Filings.36 Business Ethics ¦ Statute of Limitations .37 Dismissals and Pretrial Judgments.38 Settlement Conference .39 Contemporary Trend • Cost-Benefit Analysis of a Lawsuit .39 Trial.39 Case 3.1 ¦ Ferlito v. Johnson Johnson Products, Ine.41 Appeal.41 Alternative Dispute Resolution.42 International Law • Japan's Legal System .43 Working the Web Internet Exercises.44 Business Law Cases.44 Issues in Business Ethics.45 4 Constitutional Law for Business and Online Commerce .46 Constitution of the United States of America . . . .47 Supremacy Clause.49 Case 4.1 • U.S. Supreme Court Geier v. American Honda Motor Company, Ine.49 Commerce Clause .50 Case 4.2 ¦ U.S. Supreme Court Reno, Attorney General of the United States v. Condon, Attorney General of South Carolina .51 International Law ¦ Foreign Commerce Clause .52 Bill of Rights .52 Freedom of Speech.53 Business Ethics • Commercial Speech .54 Case 4.3 • U.S. Supreme Court United States v. Playboy Entertainment Group, Ine.55 Internet Law Online Commerce • Sroacf Free Speech Rights Granted in Cyberspace.56 Freedom of Religion.56 Equal Protection Clause.57 Case 4.4 ¦ U.S. Supreme Court Grutter v. So/linger and the University of Michigan Law School .58 Due Process Clause.59 Privileges and Immunities Clause.59 Working the Web Internet Exercises.60 Business Law Cases.60 Issues in Business Ethics.62 PART II Forts, Crimes, and internet Law.63 5 Torts and Cyber Privacy .64 Intentional Torts Against Persons.65 Business Ethics ¦ Wal-Mart Loses False Imprisonment Case.66 Contemporary Trend • Eminem Not Liable for Slander.68 Case 5.1 • Roach v. Stern .69 Intentional Torts Against Property .70 Unintentional Torts (Negligence) .71 Business Ethics ¦ Ouch! The Coffee's Too Hot!.72 Case 5.2 ¦ Wilhelm v. Flores .73 Contexts Case 5.3 ¦ James v. Meow Media, Ine.73 Landmark Law ¦ Palsgraf v. The Long Island Railroad Company .75 Special Negligence Doctrines.75 Case 5.4 ¦ Matthias v. Accor Economy Lodging, Inc. and Motel 6 Operating Lfi .79 Defenses Against Negligence.79 Case 5.5 ¦ Lilya v. The Greater Gulf State Fair, Ine.80 Strict Liability .81 Case 5.6 ¦ Cook v. Whitsell-Sherman.82 Working the Web Internet Exercises.83 Business Law Cases.83 Issues In Business Ethics.85 6 Strict Liability and Product Liability . . .86 Negligence and Fault.87 Case 6.1 ¦ Benedi v. McNeil-RP.C, Incorporated .88 Strict Liability .89 Contemporary Trend • Strict Liability.90 Defect in Manufacture.91 Case 6.2 ¦ Shoshone Coca-Cola Bottling Co. v. Dolinski_92 Defect in Design .92 Case 6.3 ¦ Lakin v. Senco Products, Ine.93 Business Ethics ¦ Design Defect in Pool Equipment.94 Failure to Warn .94 Defect in Packaging.95 Case 6.4 • Elsroth v. Johnson Johnson.95 Defenses to Product Liability .96 Business Ethics ¦ General Motors Liable for Design Defect.97 Working the Web Internet Exercises. .99 Business Law Cases.99 Issues in Business Ethics.100 7 Intellectual Property and Internet Law.'.102 Trade Secrets.103 Internet Law Online Commerce ¦ The Economic Espionage Act.104 Patents and Cyber Patents.104 Case 7.1 ¦ U.S. Supreme Court J.EM. Ag Supply, Inc., d.b.a. Farm Advantage. Inc. v. Pioneer Hi-Bred International. Ine.105 Internet Law Online Commerce ¦ Cyber Business Plans Are Patentable .106 Business Ethics ¦ Patent Infringement.107 Copyrights and Software Copyrights.107 Contemporary Trend ¦ Copyright Protection.108 Internet Law Online Commerce ¦ The NET Act: Criminal Copyright Infringement .109 Case 7.2 ¦ Newton v. Beastie Boys .109 Business Ethics ¦ Copyright Infringement .110 Internet Law Online Commerce ¦ Encryption Technology .110 Trademarks and Online Commerce .Ill Case 7.3 • U.S. Supreme Court Two Pesos. Inc. v. Taco Cabana. Ine.113 The Internet.116 Case 7.4 ¦ John Doe v. GTE Corporation.117 Domain Names.118 Internet Law Online Commerce ¦ Electronic Communications Privacy Act .119 International Law ¦ International Protection of Intellectual Property Rights.119 Working the Web Internet Exercises.119 Business Law Cases.120 Issues in Business Ethics.121 8 Business and Online Crimes.123 Definition of a Crime.124 Business Ethics ¦ Martha Stewart Guilty of a Crime.127 Criminal Procedure.127 Case 8.1 ¦ U.S. Supreme Court Atwater v. Lago Vista, Texas .128 Internet Law Online Commerce ¦ Cyber Crimes.129 Common Crimes.130 White-Collar Crimes .131 International law-Foreign Corrupt Practices Act.132 Internet Law Online Commerce • Cyber Identity Fraud . .133 Contemporary Trend ¦ Money Laundering.134 Corporate Criminal Liability.134 Protection Against Unreasonable Search and Seizure .135 Case 8.2 ¦ U.S. Supreme Court Kyllo v. United States . .136 Case 8.3 ¦ U.S. Supreme Court City of Indianapolis v. Edmond.137 Contemporary Trend ¦ Federal Antiterrorism Act .138 Privilege Against Self-lncrimination and Other Protections .138 Working the Web Internet Exercises.140 Business Law Cases.140 Issues in Business Ethics.141 PART III Traditional and E-Commerce Contracts.143 9 Nature of Traditional and Online Contracts.144 Definition of Contract.145 Contemporary Trend • The Evolution of the Modern Law of Contracts .146 Sources of Contract Law.147 Case 9.1 ¦ City of Everett, Washington v. Mitchell.148 Internet Law Online Commerce ¦ Uniform Electronic Commerce Act Adopted .149 Classifications of Contracts .149 Case 9.2 ¦ Wrench LLC v. Taco Bell Corporation.150 Equity .153 Business Ethics ¦ Equity Saves Contracting Party .153 International Law • The United Nations Convention on Contracts for the International Sale of Goods.154 Working the Web Internet Exercises.154 Business Law Cases.155 Issues in Business Ethics.155 Contents 10 Agreement.156 Agreement.157 Offer .157 Business Ethics -A Contract Is a Contract Is a Contract . .158 Special Offers .159 Case 10.1 ¦ Mesaros v. United States.159 Case 10.2 ¦ Lim v. The.W Corporation International.161 Termination of Offers .162 Contemporary Trend ¦ Option Contracts .164 Acceptance.164 Internet Law Online Commerce ¦ Nondisclosure Agreements .167 Working the Web Internet Exercises.167 Business Law Cases.167 Issues in Business Ethics.168 11 Consideration and Equity.170 Consideration.171 Case 11.1 ¦ Alden v. Presley .172 Case 11.2 • Cooper v. Smith.173 Contemporary Trend • When Is Consideration Inadequate?.174 Contracts Lacking Consideration .174 Case 11.3 • Dementas v. Estate ofTallas.175 Contemporary Trend ¦ Special Business Contracts .177 Settlement of Claims .177 Equity: Promissory Estoppel.177 Working the Web Internet Exercises.179 Business Law Cases.179 Issues in Business Ethics.180 12 Capacity and Legality.182 Minors.183 Case 12.1 -Jones v. Free Flight Sport Aviation, Ine.185 Contemporary Trend ¦ Special Types of Minors' Contracts .186 Mentally Incompetent Persons.186 Intoxicated Persons.187 Legality.187 Case 12.2 • Hood v. Fidelity Guaranty Life Insurance Co.189 Case 12.3• Ryno v.Tyra .190 Lawfulness of Special Business Contracts.191 Business Ethics • ^n Unlicensed Contractor Gets Dunked .192 Case 12A-Zivich v. Mentor Soccer Club. Ine.193 Contemporary Trend ¦ Covenant Not to Compete .194 Unconscionable Contracts .194 Working the Web Internet Exercises.195 Business Law Cases.195 Issues in Business Ethics.197 13 Genuineness of Assent .198 Mistake.199 Case 13.1 ¦ Wells Fargo Credit Corp. v. Martin.200 Fraud.201 Case 13.2 ¦ Wilson v. Western national Life Insurance Co.203 Undue Influence.204 Duress.205 Business Ethics ¦ Economic Duress .205 Working the Web Internet Exercises.206 Business Law Cases.206 Issues in Business Ethics.207 14 Writing and Formality.209 Statute of Frauds.210 Contracts That Must Be in Writing.211 Case 14.1 • Sutton v. Warner.212 Business Ethics ¦ An Oral Contract Isn't Worth the Paper It's Written On.214 Formality of the Writing .215 International Law ¦ Chinese Chops and Japanese Hankos as Signatures.215 Parol Evidence Rule.217 Working the Web Internet Exercises.218 Business Law Cases.218 Issues in Business Ethics.220 15 Third-Party Rights and Discharge . . .221 Assignment of Rights.222 Case 15.1 ¦ Accrued Financial Services, Incorporated v. Prime Retail, Incorporated.224 Contemporary Trend • Successive Assignments of the Same Right.225 Delegation of Duties.225 Third-Party Beneficiaries.226 Case 15.2 ¦ Bain v. Gillispie.229 Covenants and Conditions .229 Discharge of Performance.231 Working the Web Internet Exercises.233 Business Law Cases.234 Issues in Business Ethics.235 16 Remedies for Breach of Traditional and Online Contracts .236 Performance and Breach .237 Case 16.1 ¦ Chodos v. West Publishing Company, Ine.239 Monetary Damages .240 Case 16.2 ¦ Parker v. Twentieth Century-Fox Film Corp. . . .242 Case 16.3 • California and Hawaiian Sugar Co. v. Sun Ship, Ine.243 Rescission and Restitution.245 Contemporary Trend ¦ Must a Wedding Ring Be Returned if the Engagement Is Broken Off?.245 Equitable Remedies.246 Torts Associated with Contracts.246 Business Ethics ¦ Interference with a Contract .247 Case 16.4 • O'Neill v. Gallant Insurance Company.248 Working the Web Internet Exercises.249 Business Law Cases.249 Issues in Business Ethics.251 17 E-Contracts and Licensing.253 The Internet and World Wide Web.254 Contents Domain Names.255 Internet Law Online Commerce ¦ Domain Name AnticybersquattingAct .256 Case 17.1 ¦ E. i. Gallo Winery v. Spider Webs Ltd.257 Internet Law Online Commerce ¦ Armani Outmaneuvered for Domain Name.257 E-Contracts .258 Internet Law Online Commerce ¦ E-Contracts Writing Requirement.258 Internet Law Online Commerce ¦ E-Signatures .258 E-Licensing .259 Internet Law Online Commerce ¦ Counteroffers Ineffectual Against Electronic Agents .260 Internet Law Online Commerce ¦ Consumers Saved from Electronic Errors .261 Internet Law Online Commerce ¦ Electronic Self-Help .262 Case 17.2 • MA Mortenson Company, Inc. v. Timberline Software Corporation.263 Working the Web Internet Exercises.265 Business Law Cases.265 Issues in Business Ethics.266 PART IV Domestic and International Sales and Lease Contracts . . .269 18 Formation of Sales and Lease Contracts.270 Uniform Commercial Code (UCC) .271 Article 2 (Sales).272 Case 18.1 ¦ Hector v. Cedars-Sinai Medical Center.273 Article 2A (Leases) .274 Formation of Sales and Lease Contracts: Offer . .275 Contemporary Trend ¦ UCC "Firm Offer" Rule.276 Formation of Sales and Lease Contracts: Acceptance.277 Contemporary Trend ¦ UCC Permits Additional Terms.277 Contemporary Trend ¦ "ßa!i/e of the Forms" .278 UCC Statute of Frauds .278 Contemporary Trend ¦ UCC Written Confirmation Rule . . .279 International Law ¦ Letters of Credit m International Trade .281 Working the Web Internet Exercises.2S1 Business Law Cases.282 Issues in Business Ethics.283 19 Performance of Sales and Lease Contracts.284 Identification and Passage of Title .285 Risk of Loss: No Breach of Sales Contract.2S6 Contemporary Trend ¦ Snipping Terms .287 Risk of Loss: Conditional Sales.288 Case 19.1 ¦ Pre.vitt v. Numismatic Funding Corp.289 Risk of Loss: Breach of Sales Contract.290 Risk of Loss: Lease Contracts.290 Contemporary Trend ¦ Insuring Against Loss of Goods . . .290 Sales by Nonowners.291 International Law ¦ International Trade Terms .292 Working the Web Internet Exercises.292 Business Law Cases.293 Issues in Business Ethics.294 20 Remedies for Breach of Sales and Lease Contracts .295 Seller's and Lessor's Performance.296 Case 20.1 ¦ Joe 0/1 USA, inc. v. Consolidated Edison Co. ofNewYork, Ine.298 Business Ethics ¦ Good Faith and Reasonableness.300 Buyer's and Lessee's Performance .300 Seller's and Lessor's Remedies.302 Contemporary Trend ¦ Lost Volume Seller.304 Buyer's and Lessee's Remedies .305 Additional Performance Issues .307 Business Ethics ¦ Unconscionable Contract .308 Working the Web Internet Exercises.309 Business Law Cases.310 Issues in Business Ethics.311 21 Sales and Lease Warranties.312 Express Warranty.313 Case 21.1 ¦ Daughtrey v. Ashe.314 Implied Warranty of Merchantability.315 Case 21.2 • Denny v. Ford Motor Company.316 Implied Warranty of Fitness for a Particular Purpose.317 Case 21.3 ¦ Mack Massey Motors, inc. v. Gamica .318 Warranty Disclaimer.319 Internet Law Online Commerce • Warranty Disclaimers in Software Licenses.319 Magnuson-Moss Warranty Act.320 Special Warranties of Title and Possession.320 Working the Web Internet Exercises.322 Business Law Cases.322 Issues in Business Ethics.323 PART V Negotiable Instruments and Electronic Banking.325 22 Creation of Negotiable Instruments.326 Negotiable Instruments .327 Types of Negotiable Instruments.328 Creating a Negotiable Instrument.332 Contemporary Trend ¦ Authorized Representative's Signature .333 Unconditional Promise or Order to Pay .333 Contemporary Trend • Payable to Order or to Bearer.334 Fixed Amount of Money .335 Payable On Demand or at a Definite Time .336 Nonnegotiable Contract .337 International Law ¦ Negotiable Instruments Payable in Foreign Currency.338 Working the Web Internet Exercises.338 Business Law Cases.338 Issues in Business Ethics.340 Contents 23 Transferability and Holder in Due Course.341 Transfer by Assignment .342 Transfer by Negotiation.343 Indorsement.344 Types of Indorsements .345 Holder in Due Course (HDC) .349 Requirements for HDC Status.350 Contemporary Trend ¦ Shelter Principle.352 Working the Web Internet Exercises.353 Business Law Cases.353 Issues in Business Ethics.354 24 Liability, Defenses, and Discharge . . . .355 Signature Liability .356 Case 24.1 ¦ Grand Island Production Credit Assn. v. Humphrey.357 Forged Indorsement.361 Business Ethics • Imposter Rule.361 Business Ethics ¦ Fictitious Payee Rule.362 Warranty Liability.362 Defenses.363 Contemporary Trend • FTC Rule Limits HDC Status .366 Discharge .367 Working the Web Internet Exercises.367 Business Law Cases.367 25 Checks, Banking, and Wire Transfers .371 The Bank-Customer Relationship.372 Ordinary Checks.373 Internet Law Online Commerce ¦ Electronic Fund Transfer Systems.374 Special Types of Checks.374 Internet Law Online Commerce • Bank Debit Cards . . .377 Honoring Checks .377 Contemporary Trend ¦ Federal Currency Reporting Law . .379 Forged Signatures and Altered Checks.379 The Collection Process.381 Commercial Wire Transfers.384 Working the Web Internet Exercises.385 Business Law Cases.386 Issues in Business Ethics.387 PART VI Credit and Bankruptcy .389 26 Credit and Security Interests in Real Property.'.390 Introduction to Credit.391 Contemporary Trend • Unsecured Credit.392 Security Interest in Real Property.392 Recording Statute .394 Case 26.1 ¦ Bank of South Palm Beaches v. Stockton, Whatley. Davin Company.394 Foreclosure .395 Material Person's Lien .397 Working the Web Internet Exercises.398 Business Law Cases.398 Issues in Business Ethics.399 27 Secured Transactions and Security Interests in Personal Property .400 Security Interest in Personal Property.401 Secured Transaction—Revised Article 9 of the UCC.401 Creating a Security Interest .403 Perfecting a Security Interest.404 Case 27.1 • In re Greenbelt Cooperative, Ine.405 Case 27.2 ¦ In re Phillips.406 Priority of Claims .407 Default and Remedies .409 Artisan's or Mechanic's Liens.411 Surety and Guaranty Arrangements.411 Case 27.3 ¦ General Motors Acceptance Corporation v. Daniels.412 Working the Web Internet Exercises.413 Business Law Cases.413 Issues in Business Ethics.415 28 Bankruptcy and the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 .416 Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.417 Bankruptcy Procedure .419 The Bankruptcy Estate.424 Contemporary Trend • 2005 Act Limits the Homestead Exemption .425 Preferential and Fraudulent Transfers .426 Chapter 7—Liquidation.428 Case 28.1 ¦ U.S. Supreme Court Kawaauhau v. Geiger.433 Contemporary Trend ¦ Discharge of Student Loans .434 Chapter 13—Adjustment of Debts of an Individual with Regular Income.435 Chapter 11—Reorganization.438 Contemporary Trend • Small Business Bankruptcy .443 Chapter 12—Family Farmer and Family Fisherman Bankruptcy.443 Business Ethics • Bankruptcy Fraud .446 Special Forms of Bankruptcy .446 Working the Web Internet Exercises.446 Business Law Cases.447 Issues in Business Ethics.448 PART VII Agency and Employment .449 29 Agency Formation and Termination . .450 Agency .451 Formation of an Agency .453 Business Ethics ¦ Apparent Agency.454 Principal's and Agent's Duties.455 Termination of an Agency.457 Working the Web Internet Exercises.460 Business Law Cases.460 Issues in Business Ethics.461 Contents 30 Liability of Principals and Agents . . . .462 Agent's Duty of Loyalty to the Principal.463 Contract Liability to Third Parties.464 Tort Liability to Third Parties.466 Case 30.1 ¦ Edgewater Motels, Inc. v. Gatzke and Walgreen Co.467 Case 30.2 • Desert Cab Inc. v. Marino.469 Independent Contractor.470 Case 30.3 ¦ Torres v. Reardon.472 Business Ethics ¦ Principal Liable for Repo Man's Tort_473 Working the Web Internet Exercises.473 Business Law Cases.473 Issues in Business Ethics.475 31 Employment and Worker Protection Laws \.477 Employment at Will .478 Workers' Compensation .479 Case 31.1 • Smith v. Workers' Compensation Appeals Board.480 Occupational Safety.480 Fair Labor Standards Act (FLSA).481 Business Ethics ¦ Microsoft Violates Employment Law . . . .482 Family and Medical Leave Act.482 Consolidated Omnibus Budget Reconciliation Act (COBRA) .483 Employment Retirement Income Security Act (ERISA) .483 Immigration Reform and Control Act (IRCA) . . . .483 Contemporary Trend • Drug Testing and Polygraph Tests.483 Government Programs .484 Working the Web Internet Exercises.485 Business Law Cases.485 Issues in Business Ethics.487 32 Labor Law.489 Labor Law .490 Organizing a Union.491 Case 32.1 ¦ U.S. Supreme Court Lecnmere. Inc. v. National Labor Relations Board.492 Case 32.2 ¦ U.S. Supreme Court National Labor Relations Board v. Exchange Parts Co.493 Collective Bargaining.494 Case 32.3 ¦ U.S. Supreme Court Marquez v. Screen Actors Guild. Ine.495 Contemporary Trend -State Right-to-Work Laws.496 Strikes and Picketing.496 Internal Union Affairs .498 Working the Web Internet Exercises.498 Business Law Cases.498 Issues in Business Ethics.500 33 Equal Opportunity in Employment.501 Equal Employment Opportunity Commission (EEOC) .502 Title VII of the Civil Rights Act.502 Case 33.1 ¦ National Association for the Advancement of Colored People, Newark Branch v. Town of Harrison, New Jersey.504 Case 33.2 • Barbano v. Madison County.505 Case 33.3 ¦ U.S. Supreme Court Harris v. Forklift Systems, Ine.506 Contemporary Trend ¦ Employees Defense to a Charge of Sexual Harassment.507 Case 33.4 ¦ U.S. Supreme Court International Union, United Automobile, Aerospace and Agricultural implement Workers of America, UAW v. Johnson Controls, Inc. . .508 Civil Rights Act of 1866.510 Equal Pay Act.510 Age Discrimination in Employment Act .511 Americans with Disabilities Act .511 Case 33.5 ¦ U.S. Supreme Court PGA Tour, Inc. v. Martin .512 Affirmative Action .513 State and Local Government Antidiscrimination Laws .514 International Law ¦ International Reach of U.S. Antidiscrimination Laws .514 Working the Web Internet Exercises.514 Business Law Cases.515 Issues in Business Ethics.516 PART VIII Business Organizations and Ethics.517 34 Entrepreneurship, Sole Proprietorships, and General Partnerships.518 Entrepreneurship .519 Sole Proprietorship.520 Contemporary Trend ¦ d.b.a-"Doing Business As".520 Case 34.1 • Vernon v. Schuster, d/b/a Diversity Heating and Plumbing.521 General Partnership.522 Case 34.2 ¦ Vohland v. Sweet.524 Rights and Duties of General Partners.525 Liability of General Partners .527 Case 34.3 ¦ Zuckerman v. Antenucci.528 Case 34.4 ¦ Edward A. Kemmler Memorial Foundation v. Mitchell.529 Dissolution of a General Partnership.530 Contemporary Trend ¦ Right of Survivorship .532 Working the Web Internet Exercises.532 Business Law Cases.532 Issues in Business Ethics.534 35 Limited Partnerships.535 Limited Partnership .536 Formation of a Limited Partnership.537 Contemporary Trend ¦ Master Limited Partnership.540 Liability of General and Limited Partners.540 Dissolution of a Limited Partnership.542 Working the Web Internet Exercises.543 Contents Business Law Cases.543 Issues in Business Ethics.544 36 Domestic and Multinational Corporations.545 Nature of the Corporation.546 Contemporary Trend ¦ Selecting a Corporate Name.549 Incorporation Procedures .550 Contemporary Trend ¦ S Corporations.555 Financing the Corporation .555 Contemporary Trend • Stock Options and Stock Warrants .557 Contemporary Trend • Close Corporation .559 Corporate Powers.559 Dissolution and Termination of Corporations . . . .560 International Law ¦ International Branch Offices.561 International Law • International Subsidiary Corporation . .561 Working the Web Internet Exercises.562 Business Law Cases.562 Issues in Business Ethics.564 37 Corporate Directors, Officers, and Shareholders.565 Shareholders .566 Case 37.1 ¦ Kinney Shoe Corp. v. Polan.572 Internet Law Online Commerce ¦ Corporation Codes Recognize Electronic Communications.572 Board of Directors .573 Business Ethics ¦ Sarbanes-Oxley Act Imposes Duties on Audit Committee.575 Corporate Officers .576 Business Ethics • Sarbanes-Oxley Act Improved Corporate Governance .577 Liability of Directors and Officers .577 Case 37.2 ¦ Smith v. Van Gorkom .579 Contemporary Trend ¦ Indemnification and D O Insurance Protection.582 Criminal Liability .582 Working the Web Internet Exercises.582 Business Law Cases.583 Issues in Business Ethics.584 38 Corporate Mergers, Tender Offers, and Shareholder Resolutions.586 Proxy Solicitation.587 Shareholder Resolution.589 Business Ethics • Shareholder Resolution.589 Mergers and Acquisitions.590 Case 38.1 -In the Matter of the Appraisal of Shell Oil Company.593 Tender Offers.594 Contemporary Trend ¦ Leveraged Buyouts.595 Case 38.2 • Paramount Communications Inc. v. QVC Network Ine.597 State Antitakeover Statutes.598 Case 38.3 ¦ U.S. Supreme Court CTS Corporation v. Dynamics Corporation of America.598 International Law ¦ The Exon-Florio Law .599 Working the Web Internet Exercises.599 Business Law Cases.600 Issues in Business Ethics.602 39 Limited Liability Companies and Limited Liability Partnerships . . .604 Limited Liability Company (LLC) .605 Contemporary Trend ¦ DreamWorks SKG, LLC.606 Member's Limited Liability .606 Case 39.1 ¦ Page v. Roscoe, LLC.607 Case 39.2 ¦ Creative Resource Management, Inc. v. Soskin.609 Formation of an LLC.610 Contemporary Trend • Why Operate a Business as a Limited Liability Company (LLC)?.613 Management of an LLC.613 Dissolution of an LLC .616 Limited Liability Partnership (LLP) .617 Contemporary Trend ¦ Accounting Firms Operate asLLPs.619 Working the Web Internet Exercises.619 Business Law Cases.619 Issues in Business Ethics.621 40 Franchises and Special Forms of Business.622 Franchise.623 International Law • International Franchising .628 Liability of Franchisor and Franchisee .628 Case 40.1 ¦ Cislaw v. Southland Corporation.629 Case 40.2 • Martin v. McDonald's Corporation.630 Case 40.3 ¦ Holiday Inns, Inc. v. Sheiburne.631 Licensing.632 Joint Venture .633 International Law- Ch/nese-U.S. International ¡oint Venture.634 Strategic Alliance.635 Internet Law Online Commerce ¦ Strategic Internet Alliances in China.635 Working the Web Internet Exercises.635 Business Law Cases.636 Issues in Business Ethics.637 41 Investor Protection and Online Securities Transactions.639 The Securities and Exchange Commission (SEC).640 Case 41.1 • U.S. Supreme Court Securities and Exchange Commission v. Edwards .641 Going Public—The Securities Act of 1933.642 Internet Law Online Commerce ¦ Going Public over the Internet.643 Contemporary Trend ¦ Small Corporate Offering Registration Form (SCOR).645 Case 41.2 ¦ Escott v. BarChris Construction Corp.64b Private and Other Transactions Exempt from Registration.647 Contents Trading in Securities—The Securities Exchange Act of 1934.649 Case 41.3 • Securities and Exchange Commission v. Texas Gulf Sulphur Co.650 Case 41.4 • U.S. Supreme Court United States v. O'Hagan .651 Short-Swing Profits .653 State Securities Laws.654 Business Ethics • Sarbanes-Oxley Act Erects a Wall Between Investment Bankers and Security Analysis .654 Working the Web Internet Exercises.655 Business Law Cases.655 Issues in Business Ethics.657 42 Ethics and Social Responsibility of Business.659 Ethics and the Law.660 Business Ethics.661 Business Ethics ¦ Qui Tarn Lawsuit .661 Case 42.1 ¦ Bradley v. (McDonald's Corporation.662 Case 42.2 • Pizza Hut, Inc. v. Papa John's international, Ine.664 Business Ethics ¦ Enron Corporation Plunges into Bankruptcy .665 Social Responsibility of Business .667 Case 42.3 • Wal-Mart Stores, Inc. v. Samara Brothers, Ine.667 Business Ethics ¦ State Farm: Not Sucri a Good Neighbor .669 Business Ethics ¦ Sarbanes-Oxley Act Prompts Public Companies to Adopt Code of Ethics.670 International Law • United Nations Code of Conduct forlransnational Corporations.671 Working the Web Internet Exercises.672 Issues in Business Ethics.672 PART IX Government Retçiilation . . . .675 43 Administrative Law.676 Administrative Agencies.677 Administrative Law.678 Case 43.1 ¦ U.S. Supreme Court Food and Drug Administration v. Brown Williamson Tobacco Corporation .680 Case 43.2 • U.S. Supreme Court New York v. Burger.682 Judicial Review of Administrative Agency Actions . .683 Disclosure of Agency Administrative Actions . . . .684 Working the Web Internet Exercises.686 Business Law Cases.686 Issues in Business Ethics.687 44 Consumer Protection.689 Food, Drug, and Cosmetic Safety .690 Contemporary Trend • Food Safety.691 Business Ethics • Safety Warnings About Viagra .692 Product Safety.692 Business Ethics ¦ Lemon Laws.693 Unfair and Deceptive Practices.693 Case 44.1 ¦ U.S. Supreme Court Federal Trade Commission v. Colgate-Palmolive Company .694 Business Ethics ¦ Do-Not-Call Registry.695 Debtor Protection Law.695 International Law ¦ United Nations Biosafety Protocol for Genetically Altered Foods.697 Working the Web Internet Exercises.698 Business Law Cases.698 Issues in Business Ethics.700 45 Environmental Protection.701 Environmental Protection.702 Air Pollution.703 Case 45.1 ¦ U.S. Supreme Court Whitman, Administrator of Environmental Protection Agency v. American Trucking Association.704 Contemporary Trend ¦ Indoor Air Pollution.704 Water Pollution .705 Case 45.2 ¦ U.S. Supreme Court Solid Waste Agency of Northern Cook County, Illinois v. United States Army Corps of Engineers .706 Business Ethics ¦ Illegal Dumping of Pollutants.707 Toxic Substances and Hazardous Waste.707 Contemporary Trend ¦ Superfund.708 Endangered Species.709 Case 45.3 ¦ U.S. Supreme Court Tennessee Valley Authority v. Hill, Secretary of the Interior.710 State Environmental Protection Laws .711 International Law ¦ Kyoto Protocol.711 Working the Web Internet Exercises.712 Business Law Cases.712 Issues in Business Ethics.714 46 Antitrust Law .715 Federal Antitrust Laws. .716 Restraints of Trade—Section 1 of the Sherman Act .717 Business Ethics ¦ The Department of Justice Flunks the Ivy League Schools .719 Case 46.1 • U.S. Supreme Court State Oil Company v.Khan.722 Contemporary Trend ¦ Trade Association Members Avoid Antitrust Liability.723 Monopolization—Section 2 of the Sherman Act . .723 Internet Law Online Commerce ¦ United States v. Microsoft Corporation .725 Mergers—Section 7 of the Clayton Act.726 Tying Arrangements—Section 3 of the Clayton Act .728 Price Discrimination—Section 2 of the Clayton Act .729 Unfair Methods of Competition—Section 5 of the Federal Trade Commission Act.730 Exemptions from Antitrust Laws.731 State Antitrust Laws .731 Working the Web Internet Exercises.732 Business Law Cases.732 Issues in Business Ethics.734 Contents PartX Property.737 47 Personal Property and Bailment .738 Personal Property.739 Acquiring Ownership of Personal Property.739 Case 47.1 ¦ Gruen v. Gruen.741 Case 47.2 • Giha v. Giria.742 Mislaid, Lost, and Abandoned Personal Property.743 Case 47.3 ¦ Willsmore v. Township of Oceola, Michigan .744 Bailments .745 Case 47.4 ¦ Sisters of Charity of the Incarnate Word v. Meaux.746 International Law ¦ Treasure Trove .750 Working the Web Internet Exercises.751 Business Law Cases.751 Issues in Business Ethics.753 48 Real Property.754 Real Property.755 Contemporary Trend ¦ Air Rights.756 Estates in Land .756 Concurrent Ownership .757 Case 48.1 • Cunningham v. Hastings.760 Future Interests.760 Transfer of Ownership of Real Property.761 Case 48.2 • The Howard Savings Bank v. Brunson.762 Case 48.3 ¦ Witt v. Miller.764 Nonpossessory Interests .765 Case 48.4 ¦ Walker v. Ayres.766 Working the Web Internet Exercises.767 Business Law Cases.767 Issues in Business Ethics.768 49 Landlord-Tenant Relationship and Land Use Regulation .770 Landlord-Tenant Relationship.771 Landlord's and Tenant's Duties.773 Case 49.1 ¦ Solow v. Wellner.775 Premise Liability.776 Case 49.2 • Feld v. Merriam .776 Transfer of Rights to Leased Property.777 Contemporary Trend ¦ Rent Control .779 Land Use Control .780 Case 49.3 ¦ Guinnane v. San Francisco City Planning Commission.780 Working the Web Internet Exercises.783 Business Law Cases.783 Issues in Business Ethics.784 PART XI Special 'Topics .7X5 50 Insurance.786 Insurance.787 Case 50.1 -Amex Life Assurance Company v. Slome Capital Corp.789 Life Insurance .790 Health and Disability Insurance.792 Fire and Homeowners' Insurance .792 Contemporary Trend ¦ Mold Eats Away at Insurers' Profits.794 Automobile Insurance.794 Contemporary Trend ¦ Umbrella Insurance Policy .796 Business Insurance .797 Working the Web Internet Exercises.799 Business Law Cases.799 Issues in Business Ethics.800 51 Liability of Accountants .802 Public Accounting .803 Liability of Accountants to Their Clients .805 Liability of Accountants to Third Parties.806 Case 51.1 ¦ Credit Alliance Corporation v. Arthur Andersen Co.807 Case 51.2 ¦ Industria/ Loan Thrift Guaranty Corporation of Iowa v. Reese Company, PC.808 Liability of Accountants Under Securities Laws . .810 Business Ethics • Accountant's Duty to Report Client's Illegal Activity .811 Criminal Liability of Accountants.812 Accountants' Privilege and Work Papers.813 Contemporary Trend ¦ Sarbanes-Oxley Act Regulates Accounting Practices.813 Working the Web Internet Exercises.814 Business Law Cases.814 Issues in Business Ethics.816 52 Wills, Trusts, and Living Wills.817 Will .818 Contemporary Trend ¦ Videotaped Wills .822 Testamentary Gift .822 Case 52.1 ¦ Opperman v. Anderson.825 Intestate Succession.825 Contemporary Trend ¦ Living Will and Health Care Proxy .826 Trust .826 Living Trust .829 Working the Web Internet Exercises.830 Business Law Cases.830 Issues in Business Ethics.832 53 Family Law.833 Premarriage Issues .834 Marriage .835 Contemporary Trend ¦ Same Sex Marriage .836 Parents and Children .837 Contemporary Trend ¦ Surrogacy .838 Marriage Termination.839 Division of Assets.841 Spousal Support, Child Support, and Child Custody.842 Contemporary Trend ¦ Family Support Act.843 Working the Web Internet Exercises.845 Business Law Cases.845 Issues in Business Ethics.846 Contents PART XII Global Environment.847 54 International and World Trade Law . .848 The United States and Foreign Affairs.849 Case 54.1 ¦ U.S. Supreme Court Crosby, Secretary of Administration and Finance of Massachusetts v. National Foreign Trade Council .850 Sources of International Law.850 The United Nations.851 International Law ¦ International Monetary Fund (IMF) .853 International Law ¦ World Bank .854 Regional International Organizations.854 International Law ¦ Free Trade Area of the Americas (FTAA) .857 The World Trade Organization (WTO).858 International Law ¦ China Joins the WTO.858 International Law ¦ The International Criminal Court.860 National Courts to Decide International Disputes .860 International Law • Jewish Law and the Torah .863 International Law ¦ Islamic Law and the Koran .863 International Law ¦ Hindu /.aw-Dharmasastra .864 Working the Web Internet Exercises.864 Business Law Cases.864 Issues in Business Ethics.865 APPENDIX A The Constitution of the United States .867 APPENDIX B Uniform Commercial Code (2002 Official Text), Article 2.877 APPENDIX C Sarbanes-Oxley Act of 2002 (Excerpts) .891 Glossary .897 Case Index.925 Subject Index.931
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