Business and Personal Law, Student Edition

593 Pages·2007·44.27 MB·English

by  Glencoe McGraw-Hill

interactive student edition
Gordon W. Brown, J.D. Paul A. Sukys, J.D.
Member of the Massachusetts Bar Member of the Ohio Bar
Professor Emeritus of Law Professor of Law and Legal Studies
North Shore Community College North Central State College
Beverly, Massachusetts Mansfi eld, Ohio
Our Partners at McGraw-Hill
Standard & Poor’s is the world’s leading BusinessWeek is the leading global
provider of independent investment resource for ground-breaking business
research, indexes, and ratings. The invest- news and news analysis that offers essen-
ment data and analysis provided by tial insight into the real world of busi-
Standard and Poor’s are used around the ness. BusinessWeek is the world’s most
world by fi nancial decision-makers to widely read business magazine, with
help create growth and manage wealth. more than 8 million readers each week,
Standard & Poor’s publishes the S&P 1200, including online and television viewers.
the premier global equity performance
benchmark; the S&P 500, the premier
U.S. fi nancial-market index; and credit
ratings on more than 220,000 securities
and funds worldwide.
Notice: Information on featured companies, organizations,
and their products and services is included for educational
purposes only and does not present or imply endorsement
of the Business and Personal Law program.
Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. Except as permitted under the United States Copyright Act,
no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system,
without prior written permission of the publisher.
Printed in the United States of America.
Send all inquiries to:
Glencoe/McGraw-Hill
21600 Oxnard Street, Suite 500
Woodland Hills, CA 91367
ISBN: 978-0-07-874369-6 (Student Edition)
MHID: 0-07-874369-9 (Student Edition)
ISBN: 978-0-07-874370-2 (Teacher Wraparound Edition)
MHID: 0-07-874370-2 (Teacher Wraparound Edition)
2 3 4 5 6 7 8 9 027/043 11 10 09 08 07
Authors and
Industry Advisory Board
Meet Our Authors
Gordon W. Brown has taught at the high school and the college level for 38 years. He
attended Suffolk University Law School, Boston, MA, at night for four years, while
teaching during the day. After law school, he became a member of the Massachusetts
Bar. In 1998, Mr. Brown was awarded the Outstanding Educator Award from his alma
mater, Salem State College. In addition to this text, Mr. Brown is the co-author of Busi-
ness Law with UCC Applications, Legal Terminology, and Administration of Wills, Trusts,
and Estates.
Paul A. Sukys is professor of philosophy, law, and legal studies in the Business and
Education Division of North Central State College in Mansfi eld, OH. In addition to
teaching business law courses at North Central State College, he specializes in teaching
interdisciplinary courses such as, The Legal and Ethical Aspect of Health Care.
He is co-author of Business Law with UCC Applications. He was chairperson of the
Business Law Committee in the development of the National Standards for Business
Education established by the National Business Education Association (NBEA).
Business and Career Education
Industry Advisory Board
Peggy Bradfi eld Donna Farrugia Dr. David M. Mitchell
Vons, A Safeway Co. Carrie Nebens Johnson & Wales University
Burbank, CA Robert Half International Providence, RI
Westlake Village, CA
Andy Chaves Debbie Moreton
Marriott International Inc. Mark Hatch JCPenney
Washington, DC Ohio Association of Public Dallas, TX
School Employees
Mike De Fabio Joyce Winterton
Columbus, OH
Otis Spunkmeyer USA Today
Torrance, CA Mike Kulis McLean, VA
Sherwin Williams Co.
Brian Dunn
Cleveland, OH
JD Power & Associates
Westlake Village, CA
iii
Educational Reviewers
We wish to acknowledge the contributions of the following reviewers:
B arbara Beadle Connie Meek Michelle See
Program Specialist, Business CCSD East Mecklenburg High School
Indiana Coordinator, Business Education Charlotte, NC
Nevada
Katherine Bullard Rebecca Seher
Middleton High School Elaine Metcalf ROP District
Tampa, FL Chairperson/Career & Tech Education Long Beach, CA
Facilitator
Cheryl Cooper Julie Smith
Missouri
Southeast Career Center Southeast Career Center
Columbus, OH Vanessa Moorhead Columbus, OH
Alonso High School
Joy Davis Jaclyn Soles
Tampa, FL
Delaware Area Career Center East Bay High School
Delaware, OH Jennifer Morley Tampa, FL
Blake High School
Linda Gallo Glenn Stamm
Tampa, FL
Sickles High School Osceola High School
Tampa, FL Barb Motley Seminole, FL
Karol Gotte Deanna Peck JoeAnn Streeter
Largo High School David W. Butler High School Supervisor, Business Technology
Largo, FL Matthews, NC Tampa, FL
Brian Gray Terri Phillips Eileen Wascisin
Myers Park High School H. B. Pant High School Lynden High School
Charlotte, NC Tampa, FL Lynden, WA
Colleen Hunt Janet Richards Liz Watt
Iowa State Department of Education Riverview High School North Education Center High School
State Business Education Department Riverview, FL Columbus, OH
John Husinka Josephine Rumore
East Bay High School Tampa Bay Tech High School
Gibsonton, FL Tampa, FL
Vivian King Natalie Schaublin
Independence High School Westerville North High School
Columbus, OH Westerville, OH
Legal Reviewer:
Mark Mathiasen, J.D., Esq.,
Middleton, ID
Contributing Writers:
Jane A. Brown
Groveland, MS
Donna Lee Sirkis, MBA, MAEd,
CMS-Myers Park High School, Charlotte, NC
W e wish to acknowledge the National Business Education Association for the development
of national business law standards which this book was developed to meet. We also
thank the National Council of Teachers of English, the national Council of Teachers of
Mathematics, and the national Council for the Social Studies for allowing the use of their
national standards in this textbook.
iv
Business and Personal Law: Real-World Connections
contains practical information about the U.S. legal
system. The trick is to know where to look to
access all the information in this book. If you go
on the treasure hunt with your teacher, you will
discover how this textbook is organized and how
to get the most out of your reading and study time.
Let’s Start!
➊ How many units and chapters
does this textbook have?
➋ What part of the textbook
will help you practice your
essay-writing skills?
➌ Where can you fi nd
➍ What are the three book features that
out about the rights give you real court case examples?
of minors?
➎ Where can you learn
about your rights and
duties when you rent
➏ Where can you fi nd out about
an apartment?
business laws in foreign
countries?
➐ What academic skill will you
practice in Chapter 4, Section
4.1, Assessment?
➑ What is the URL that takes you
to the Business and Personal Law
Online Learning Center?
v
Table of Contents
Reading Skills Handbook .................................................................................................. xxxii
UNIT 1 What Is Law? .....................................................................2
Invest Your Money Wisely ............................................................................. 3
Chapter 1 The Law and the Courts ...............................................................4
News
.................................................................................. 4
Section 1.1 The Foundations of Law ........................................................................................... 6
Global Law International Sources of Law ...............................................................................12
Section 1.2 The Court System and Trial Procedures ...............................................................15
Case Study Marbury v. Madison ............................................................................................20
Review and Assessment ..........................................................................................................28
Case Study Practice Papaila v. Uniden America Corp. ............................................................31
Chapter 2 Criminal Law .............................................................................32
News
..........................................................................................................32
Section 2.1 Crimes and Criminal Justice ..................................................................................34
Global Law The International Criminal Court .........................................................................37
Section 2.2 Types of Crimes .......................................................................................................41
Case Study Deck v. Missouri ..................................................................................................42
Review and Assessment ............................................................................... 48
Case Study Practice State v. Ham ..........................................................................................51
vi
Table of Contents
Chapter 3 Tort Law ....................................................................................52
News
..........................................................................................................52
Section 3.1 Defi nition of a Tort ..................................................................................................54
Global Law Tort Law in Mexico .............................................................................................55
Section 3.2 Negligence and Liability .........................................................................................60
Case Study Liebeck v. McDonald’s Restaurants ......................................................................64
Review and Assessment ................................................................................ 66
Case Study Practice Kolarik v. Cory International Corp. .........................................................69
UNIT 1 Careers in Law: Denise M. Howell, Counsel, Appellate Group Publisher,
BagandBaggage.com .........................................................................................70
The Writing Connection: Expository Writing Practice...............................................................71
Thematic Project: Small Claims Suits ............................................................................................72
Landmark Case: Cipollone v. Liggett Group, Inc. .........................................................................74
UNIT 2 Contract Law .....................................................................76
Investing in Mutual Funds .................................................................................77
Chapter 4 What Is a Contract? ..................................................................78
News
..........................................................................................................78
Section 4.1 Agreements and Contracts ....................................................................................80
Case Study Vokes v. Arthur Murray.......................................................................................84
Section 4.2 How a Contract Begins ...........................................................................................87
Global Law Entering Contracts in China .................................................................................92
Review and Assessment ................................................................................ 94
Case Study Practice Heiman v. Parrish .................................................................................97
vii
Table of Contents
Chapter 5 Elements of a Contract ..............................................................98
News
..........................................................................................................98
Section 5.1 Capacity and Legality ...........................................................................................100
Case Study Kiefer v. Fred Howe Motors, Inc. .......................................................................102
Global Law Contract Differences in Canada .........................................................................110
Section 5.2 Consideration ........................................................................................................115
Review and Assessment .............................................................................. 124
Case Study Practice Olsen v. Hawkins ................................................................................127
Chapter 6 How Contracts Come to an End ...............................................128
News
........................................................................................................128
Section 6.1 Transferring and Ending Contracts .....................................................................130
Case Study Opera Company of Boston v. Wolf Trap Foundation...........................................133
Section 6.2 Voidable Contracts and Remedies ......................................................................140
Global Law Remedies for Breach of Contract in Japan ..........................................................145
Review and Assessment .............................................................................. 148
Case Study Practice Parker v. Twentieth Century Fox Film Corp. ..........................................151
UNIT 2 Careers in Law: Editor and General Counsel, Nolo Press .......................................................152
The Writing Connection: Persuasive Writing Practice ...........................................................153
Thematic Project: Writing a Driving Contract ............................................................................154
Landmark Case: Mastrobuono v. Shearson Lehman Hutton, Inc. ............................................156
viii
Table of Contents
UNIT 3 Consumer Law ............................................................... 158
Stocks and Bonds ........................................................................................159
Chapter 7 Consumer Law and Contracts ..................................................160
News
........................................................................................................160
Section 7.1 Sales Contracts .....................................................................................................162
Case Study Lohman v. Wagner ...........................................................................................164
Section 7.2 Consumer Protection ............................................................................................168
Global Law Contracts and Warranties in South Korea ...........................................................174
Review and Assessment .............................................................................. 176
Case Study Practice Princess Cruises, Inc. v. General Electric Co. .........................................179
Chapter 8 Personal Property ...................................................................180
News
........................................................................................................180
Section 8.1 Types of Property ..................................................................................................182
Global Law Inheritance Rights in Property for Women in Kenya ............................................183
Section 8.2 Bailments ...............................................................................................................188
Case Study Rich v. RAM Products, Inc. .................................................................................189
Review and Assessment .............................................................................. 194
Case Study Practice Vigil v. Walt Disney Co. .......................................................................197
ix