Business Law: Text and Cases - Legal, Ethical, Global, and Corporate Environment, 12th Edition

1398 Pages·2010·37.67 MB·english

by  Kenneth W. Clarkson

In this book . . . STUDY TOOLS
that help you make the grade
(cid:2) Short Case in Point examples
CASE IN POINT Patricia Ostolaza and José Diaz
owned a home on which they had two mortgage in every chapter make it easy to
loans and a home equity line of credit provided by
Bank of America. Anthony Falcone called them and remember important legal concepts.
said that he could refi nance their mortgages in a
manner that would reduce their monthly payments.
Falcone said that he represented Bank of America
when in fact he represented Countrywide Home (cid:3) Concept Summary boxes located at key points in each
Loans, Inc. At the closing of the new loan, the hom-
eowners were given all of the relevant documents, chapter help you review more effectively for exams.
including the TILA disclosure statement. The docu-
ments accurately stated the monthly payment under
the new loan, which was higher than the couple’s
original payments. The homeowners later fi led a CCHAPTER 2 Courts and Alternative Dispute Resolution 41
lawsuit against Falcone and Countrywide Bank,
alleging fraud. The trial court dismissed the suit, and
the appellate court upheld the dismissal because the
homeowners had been given the opportunity to read
all of the relevant documents, but had not done so.3
3. Ostolaza-Diaz v. Countrywide Bank, N.A., 2010 WL 95145 (4th Type of Court Description
Cir. 2010). Trial Courts Trial courts are courts of original jurisdiction in which actions are initiated.
1. State courts—Courts of general jurisdiction can hear any case that has not been
specifi cally designated for another court; courts of limited jurisdiction include,
among others, domestic relations courts, probate courts, municipal courts, and
small claims courts.
2. Federal courts—The federal district court is the equivalent of the state trial court.
Federal courts of limited jurisdiction include the bankruptcy courts and others
Clarkson 12e Ch31_605-622.indd 609 shown in Exhi8b/2it6 /210– 2 7 :o16n:0 4p AaMge 38.
Intermediate Courts of appeals are reviewing courts; generally, appellate courts do not have origi-
Appellate Courts nal jurisdiction. About three-fourths of the states have intermediate appellate courts;
in the federal court system, the U.S. circuit courts of appeals are the intermediate
appellate courts.
Supreme Courts The highest state court is that state’s supreme court, although it may be called by
some other name. Appeal from state supreme courts to the United States Supreme
Court is possible only if a federal question is involved. The United States Supreme
Court is the highest court in the federal court system and the fi nal arbiter of the
Constitution and federal law.
198 UNIT TWO TORTS AND CRIMES
9–2. Property Crimes Which, if any, of the following crimes 9–6. CASE PROBLEM WITH SAMPLE ANSWER: Credit Cards.
necessarily involves illegal activity on the part of more Oleksiy Sharapka ordered merchandise online
than one person? using stolen credit cards. He had the items sent to
(a) Bribery outlets of Mail Boxes, Etc., and then arranged for
(b) Forgery someone to deliver the items to his house. He sub-
(c) Embezzlement sequently shipped the goods overseas, primarily to Russia.
(d) Larceny Sharapka was indicted in a federal district court. At the time
(e) Receiving stolen property of his arrest, government agents found in his possession,
9–3. QUESTION WITH SAMPLE ANSWER: Cyber Scam. among other things, more than three hundred stolen credit-
card numbers, including numbers issued by American
Kayla, a student at Learnwell University, owes Express. There was evidence that he had used more than ten
$20,000 in unpaid tuition. If Kayla does not of the American Express numbers to buy goods worth
pay the tuition, Learnwell will not allow her between $400,000 and $1 million from at least fourteen
to graduate. To obtain the funds to pay the vendors. Did Sharapka commit any crimes? If so, who were
debt, she sends e-mail letters to people that she does not his victims? Explain. [ United States v. Sharapka, 526 F.3d
personally know asking for fi nancial help to send Milo, 58 (1st Cir. 2008)]
her disabled child, to a special school. In reality, Kayla
hasnochildrenIsthisacrime?Ifsowhichone? • To view a sample answer for Problem 9–6, go to this book’s Web
Sample answers to selected Questions and Case Problems are
available in this book’s Appendix I and at the Companion Web Site.
At the end of every chapter in this book, you’ll fi nd a great variety of
questions and case problems that help you retain and apply what you’ve
learned. We’ve provided sample answers at the back of the book and at
www.cengage.com/blaw/clarkson to selected Questions and Case Problems
so you can compare the authors’ answers to yours.
Clarkson 12e Ch02_28-49.indd 41 8/26/10 7:05:28 AM
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
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Clarkson 12e Ch09_174-204.indd 198 8/27/10 8:53:42 AM
In the STUDY GUIDE . . .
resources to ace every test
What better way to study for a test than with
a Study Guide prepared by the co-author of this
textbook. Written by Roger LeRoy Miller and Study Guide
William Eric Hollowell, this comprehensive
resource includes:
(cid:4) Brief introductions and outlines for every
chapter
(cid:4) True-false, fi ll-in-the-blank, and multiple-choice
questions for every chapter, as well as short
essay problems to help you test yourself
(cid:4) Issue Spotters that focus your study
(cid:4) Sample CPA exam questions
(cid:4) An appendix at the end of the Study Guide
containing answers to all questions and
Issue Spotters
Bookstore doesn’t carry the Study Guide?
You can get it online (ISBN: 0-538-47277-7) at WILLIAM ERIC HOLLOWELL | ROGER LEROY MILLER
www.cengagebrain.com.
BLT&C_SG_cvr.indd 1 8/16/10 12:31:51 PM
FREE RESOURCES!
Visit this book’s Companion Web Site
for many additional study tools
www.cengage.com/blaw/clarkson
(cid:4) Answers to selected Case Problems from
this textbook
(cid:4) Video clips from the Business Law Digital
Video Library (You’ll need to view these
clips to help you answer Video Questions that
appear in selected chapters of this book.)
(cid:4) Interactive self-quizzes for every chapter
(cid:4) Practical Internet exercises for every chapter
(cid:4) Court case updates
(cid:4) Legal reference materials and much more!
Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
70828_SE_endshts.indd 2 9/16/10 7:07:56 AM
1019763_FM_VOL-I.qxp 9/17/07 4:22 PM Page viii
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1st Pass Pages
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BUSINESS LAW © 2012, 2009 South-Western, Cengage Learning
TEXT AND CASES ALL RIGHTS RESERVED. No part of this work covered by the copyright
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TWELFTH EDITION
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UNIT ONE THE LEGAL ENVIRONMENT OF BUSINESS 1
Chapter 1 Introduction to Law and Legal Reasoning 2
Chapter 2 Courts and Alternative Dispute Resolution 28
Chapter 3 Court Procedures 50
Chapter 4 Constitutional Authority to Regulate Business 74
Chapter 5 Ethics and Business Decision Making 93
UNIT TWO TORTS AND CRIMES 115
Chapter 6 Intentional Torts and Privacy 116
Chapter 7 Negligence and Strict Liability 136
Chapter 8 Intellectual Property and Internet Law 151
Chapter 9 Criminal Law and Cyber Crime 174
UNIT THREE CONTRACTS AND E-CONTRACTS 205
Chapter 10 Nature and Terminology 206
Chapter 11 Agreement in Traditional and E-Contracts 222
Chapter 12 Consideration 243
Chapter 13 Capacity and Legality 256
Chapter 14 Mistakes, Fraud, and Voluntary Consent 274
Chapter 15 The Statute of Frauds—Writing Requirement and Electronic Records 289
Chapter 16 Third Party Rights 304
Chapter 17 Performance and Discharge in Traditional and E-Contracts 319
Chapter 18 Breach of Contract and Remedies 334
UNIT FOUR DOMESTIC AND INTERNATIONAL
SALES AND LEASE CONTRACTS 355
Chapter 19 The Formation of Sales and Lease Contracts 356
Chapter 20 Title, Risk, and Insurable Interest 384
Chapter 21 Performance and Breach of Sales and Lease Contracts 400
Chapter 22 Warranties and Product Liability 421
Chapter 23 International Law in a Global Economy 441
UNIT FIVE NEGOTIABLE INSTRUMENTS 461
Chapter 24 The Function and Creation of Negotiable Instruments 462
Chapter 25 Transferability and Holder in Due Course 479
Chapter 26 Liability, Defenses, and Discharge 498
Chapter 27 Checks and Banking in the Digital Age 518
UNIT SIX CREDITORS’ RIGHTS AND BANKRUPTCY 545
Chapter 28 Creditors’ Rights and Remedies 546
Chapter 29 Secured Transactions 557
iii
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
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iv CONTENTS IN BRIEF
Chapter 30 Bankruptcy Law 581
Chapter 31 Mortgages and Foreclosures after the Recession 605
UNIT SEVEN AGENCY AND EMPLOYMENT 623
Chapter 32 Agency Formation and Duties 624
Chapter 33 Agency Liability and Termination 639
Chapter 34 Employment, Immigration, and Labor Law 658
Chapter 35 Employment Discrimination 681
UNIT EIGHT BUSINESS ORGANIZATIONS 705
Chapter 36 Sole Proprietorships and Franchises 706
Chapter 37 Partnerships and Limited Liability Partnerships 719
Chapter 38 Limited Liability Companies and Special Business Forms 739
Chapter 39 Corporate Formation and Financing 753
Chapter 40 Corporate Directors, Offi cers, and Shareholders 775
Chapter 41 Corporate Merger, Consolidation, and Termination 796
Chapter 42 Securities Law and Corporate Governance 812
Chapter 43 Law for Small Business 837
UNIT NINE GOVERNMENT REGULATION 859
Chapter 44 Administrative Law 860
Chapter 45 Consumer Law 880
Chapter 46 Environmental Law 897
Chapter 47 Antitrust Law 913
Chapter 48 Professional Liability and Accountability 933
UNIT TEN PROPERTY AND ITS PROTECTION 955
Chapter 49 Personal Property and Bailments 956
Chapter 50 Real Property and Landlord-Tenant Relationships 975
Chapter 51 Insurance 1000
Chapter 52 Wills and Trusts 1018
APPENDICES
A How to Brief Cases and Analyze Case Problems A–1
B The Constitution of the United States A–4
C The Uniform Commercial Code A–12
D The United Nations Convention on Contracts for the International Sale of Goods (Excerpts) A–176
E The Uniform Partnership Act (Excerpts) A–180
F The Revised Uniform Limited Partnership Act (Excerpts) A–190
G The Revised Model Business Corporation Act (Excerpts) A–200
H The Sarbanes-Oxley Act of 2002 (Excerpts and Explanatory Comments) A–210
I Sample Answers for End-of-Chapter Questions with Sample Answer A–218
GLOSSARY G–1
TABLE OF CASES TC–1
INDEX I–1
Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
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