Business Law Text and Cases PDF

 Insight Into Ethics Warning Labels for Video Games Chapter 7, p. 150 Can a Company That Sponsors a Contest...

 Insight Into Ethics Warning Labels for Video Games Chapter 7, p. 150 Can a Company That Sponsors a Contest Change the Prize from What It Originally Offered? Chapter 11, p. 229 When Is Impossibility of Performance a Valid Defense? Chapter 18, p. 344 Expedited Funds and an Increase in Check Fraud Chapter 28, p. 543 Reverse Redlining in the Mortgage Market Chapter 29, p. 562 The Ethical and Legal Implications of Breaching Company Policy on the Use of Electronic Data Chapter 33, p. 641 Appearance-Based Discrimination Chapter 35, p. 685 Should Franchisors Have to Give Prospective Franchisees Information about Potential Earnings? Chapter 36, p. 711 When Is Lying a Federal Crime? Chapter 40, p. 787 Focus on Ethics Unit One Ethics and the Legal Environment of Business p. 133 Unit Two Ethics and Torts and Crimes p. 220 Unit ThreeContract Law and the Application of Ethics p. 370 Unit Four Domestic and International Sales and Lease Contracts p. 471 Unit Five Negotiable Instruments p. 553 Unit Six Creditors’ Rights and Bankruptcy p. 621 Unit Seven Agency and Employment p. 701 Unit Eight Business Organizations p. 838 Unit Nine Government Regulation p. 932 Unit Ten Property and Its Protection p. 1018 Copyright 2013 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. 9781285185248_endshts_01-04.indd 3 8/19/13 12:06 PM  Managerial Strategy Budget Cuts for State Courts Can Affect Businesses Chapter 2, p. 38 Facing a Breach of Contract Chapter 22, p. 433 Many Companies Have to Revise Their Social Media Policies Chapter 34, p. 673 Small-Business Owners Now Have Recourse When Cyber Thieves Empty Their Bank Accounts Chapter 38, p. 751 Professionals’ Responsibilities for Protecting Data in the Cloud Chapter 47, p. 913 Insight Into Social Media To Tweet or Not to Tweet Inside the Courtroom Chapter 3, p. 64 “Catfishing”: Is that Online “Friend” Who You Think It Is? Chapter 15, p. 299 Was Instagram’s Revision of Its Terms of Service a Breach of Contract? Chapter 19, p. 350 Live Chatting with Your State’s Bankruptcy Court Chapter 31, p. 599 Social Media Estate Planning Chapter 51, p. 1013 Insight Into E-Commerce Do Computers Have Free Speech Rights? Chapter 4, p. 81 Taxing Web Purchases Chapter 20, p. 379 Smartphone-Based Payment Systems Chapter 25, p. 480 Insight Into The Global Environment Bribery and the Foreign Corrupt Practices Act Chapter 5, p. 109 Is It Legal to Resell Textbooks Purchased Abroad? Chapter 8, p. 168 Even Smartphones Are Vulnerable to International Cyber Attacks Chapter 10, p. 216 Contracts with Fair Trade Pricing Can Promote Environmental Sustainability Chapter 21, p. 401 Border Searches of Your Electronic Devices Chapter 24, p. 454 Copyright 2013 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. 9781285185248_endshts_01-04.indd 2 8/19/13 12:06 PM  Business Law Text and Cases Thirteenth Edition Kenneth W. Clarkson University of Miami Roger LeRoy Miller Institute for University Studies Arlington, Texas Frank B. Cross Herbert D. Kelleher Centennial Professor in Business Law University of Texas at Austin Australia Brazil Japan Mexico Singapore United Kingdom United States Copyright 2013 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. 9781285185248_00_fm_i-xxx.indd 1 8/28/13 2:33 PM  Business Law © 2015, 2012 Cengage Learning WCN: 02-200-203 TEXT and CASES ALL RIGHTS RESERVED. No part of this work covered by the copyright ThirteenTH EDITION herein may be reproduced, transmitted, stored or used in any form or by any means graphic, electronic, or mechanical, including but not limited to Kenneth W. Clarkson photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, Roger LeRoy Miller except as permitted under Section 107 or 108 of the 1976 United States Frank B. Cross Copyright Act, without the prior written permission of the publisher. Senior Vice President, Global Product Management Higher Education: For product information and technology assistance, contact us at Jack W. 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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. Copyright 2013 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.  Brief Contents Unit One The Legal Environment of Business 1 Chapter l Law and Legal Reasoning 2 Chapter 2 Courts and Alternative Dispute Resolution 28 Chapter 3 Court Procedures 50 Chapter 4 Business and the Constitution 74 Chapter 5 Business Ethics 95 Unit Two Torts and Crimes 117 Chapter 6 Torts 118 Chapter 7 Strict Liability and Product Liability l41 Chapter 8 Intellectual Property Rights 156 Chapter 9 Internet Law, Social Media, and Privacy 177 Chapter 10 Criminal Law and Cyber Crime 194 Unit Three Contracts and E-Contracts 223 Chapter 11 Nature and Terminology 224 Chapter 12 Agreement in Traditional and E-Contracts 240 Chapter 13 Consideration 260 Chapter 14 Capacity and Legality 273 Chapter 15 Mistakes, Fraud, and Voluntary Consent 290 Chapter 16 The Writing Requirement and Electronic Records 305 Chapter 17 Third Party Rights 319 Chapter 18 Performance and Discharge in Traditional and E-Contracts 333 Chapter 19 Breach of Contract and Remedies 348 Unit Four Domestic and International Sales and Lease Contracts 373 Chapter 20 The Formation of Sales and Lease Contracts 374 Chapter 21 Title, Risk, and Insurable Interest 400 Chapter 22 Performance and Breach of Sales and Lease Contracts 417 Chapter 23 Warranties 439 Chapter 24 International Law in a Global Economy 453 Unit Five Negotiable Instruments 475 Chapter 25 The Function and Creation of Negotiable Instruments 476 Chapter 26 Transferability and Holder in Due Course 493 Chapter 27 Liability, Defenses, and Discharge 512 Chapter 28 Banking in the Digital Age 531 iii Copyright 2013 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. 9781285185248_00_fm_i-xxx.indd 3 8/28/13 2:33 PM  iv Brief Contents Unit Six Creditors’ Rights and Bankruptcy 557 Chapter 29 Creditors’ Rights and Remedies 558 Chapter 30 Secured Transactions 574 Chapter 31 Bankruptcy Law 598 Unit Seven AGENCY AND EMPLOYMENT  623 Chapter 32 Agency Formation and Duties 624 Chapter 33 Agency Liability to Third Parties and Termination 639 Chapter 34 Employment, Immigration, and Labor Law 658 Chapter 35 Employment Discrimination and Diversity 681 UNIT EIGHT BUSINESS ORGANIZATIONS  705 Chapter 36 Sole Proprietorships and Franchises 706 Chapter 37 Partnerships and Limited Liability Partnerships 720 Chapter 38 Other Organizational Forms for Small Businesses 740 Chapter 39 Corporate Formation and Financing 759 Chapter 40 Corporate Directors, Officers, and Shareholders 780 Chapter 41 Mergers and Takeovers 801 Chapter 42 Securities Law and Corporate Governance 816 UNIT NINE GOVERNMENT REGULATION  841 Chapter 43 Administrative Agencies 842 Chapter 44 Consumer Law 861 Chapter 45 Environmental Law 878 Chapter 46 Antitrust Law 893 Chapter 47 Professional Liability and Accountability 912 UNit Ten PROPERTY AND ITS PROTECTION  935 Chapter 48 Personal Property and Bailments 936 Chapter 49 Real Property and Landlord-Tenant Law 955 Chapter 50 Insurance 978 Chapter 51 Wills and Trusts 996 APPENDICES A How to Brief Cases and Analyze Case Problems A–l B The Constitution of the United States A–4 C The Uniform Commercial Code A–12 D The Sarbanes-Oxley Act of 2002 (Excerpts and Explanatory Comments) A–l59 E Answers to the Issue Spotters A–166 F Sample Answers for Business Case Problems with Sample Answer A–175 GLOSSARY G–l TABLE OF CASES TC–1 INDEX 1–1 Copyright 2013 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. 9781285185248_00_fm_i-xxx.indd 4 8/28/13 2:33 PM  Contents Unit One Chapter 4 The Legal Environment Business and the Constitution 74 Of Business 1 The Constitutional Powers of Government 74 Case Analysis Case 4.1 Family Winemakers of Chapter 1 California v. Jenkins (2010) 77 Law and Legal Reasoning 2 Business and the Bill of Rights 79 Case 4.2 Doe v. Prosecutor, Marion County, Business Activities and the Legal Environment 2 Indiana (2013) 82 Sources of American Law 3 Spotlight on Beer Labels The Common Law Tradition 6 Case 4.3 Bad Frog Brewery, Inc. v. New York Schools of Legal Thought 11 State Liquor Authority (1998) 84 Classifications of Law 12 Due Process and Equal Protection 88 How to Find Primary Sources of Law 13 Privacy Rights 90 How to Read and Understand Case Law 15 Chapter 5 Chapter 2 Business Ethics 95 Courts and Alternative Business Ethics 95 Dispute Resolution 28 Case 5.1 Johnson Construction Co. v. The Judiciary’s Role in American Government 28 Shaffer (2012) 97 Basic Judicial Requirements 29 Case 5.2 May v. Chrysler Group, LLC (2012) 99 Case Analysis Case 2.1 Mala v. Crown Bay Business Ethics and Social Media 100 Marina, Inc. (2013) 31 Ethical Principles and Philosophies 101 Spotlight on Gucci Making Ethical Business Decisions 104 Case 2.2 Gucci America, Inc. v. Case Analysis Case 5.3 Moseley v. Pepco Energy Wang Huoqing (2011) 35 Services, Inc. (2011) 105 The State and Federal Court Systems 37 Global Business Ethics 107 Alternative Dispute Resolution 41 Unit One Focus on Ethics: Ethics and the Legal Case 2.3 Cleveland Construction, Inc. v. Levco Environment of Business 113 Construction, Inc. (2012) 44 International Dispute Resolution 46 Unit Two Torts and Crimes 117 Chapter 3 Court Procedures 50 Chapter 6 Procedural Rules 50 Pretrial Procedures 52 Torts 118 Case Analysis Case 3.1 Expresso Disposition Corp. 1 The Basis of Tort Law 118 v. Santana Sales & Marketing Group, Inc. Intentional Torts against Persons 120 (2013) 56 Case Analysis Case 6.1 McKee v. Laurion Case 3.2 Blankenship v. Collier (2010) 58 (2013) 123 The Trial 62 Business Torts 127 Case 3.3 Downey v. Bob’s Discount Furniture Intentional Torts against Property 128 Holdings, Inc. (2011) 65 Unintentional Torts (Negligence) 130 Posttrial Motions 67 Classic Case 6.2 Palsgraf v. Long Island Railroad The Appeal 68 Co. (1928) 133 Enforcing the Judgment 69 Defenses to Negligence 135 v Copyright 2013 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. 9781285185248_00_fm_i-xxx.indd 5 8/28/13 2:33 PM  vi Contents Spotlight on the Seattle Mariners Criminal Procedures 207 Case 6.3 Taylor v. Baseball Club of Seattle, Case 10.2 Messerschmidt v. Millender (2012) 208 LP (2006) 135 Classic Case 10.3 Miranda v. Arizona (1966) 209 Cyber Crime 212 Chapter 7 Unit Two Focus on Ethics: Strict Liability and Product Liability 141 Ethics and Torts and Crimes 220 Strict Liability 141 Unit Three Product Liability 142 Strict Product Liability 143 Contracts Spotlight on Injuries from Vaccines and E-Contracts 223 Case 7.1 Bruesewitz v. Wyeth, LLC (2011) 143 Case Analysis Case 7.2 Wilson Sporting Goods Co. C h a p t e r 11 v. Hickox (2013) 146 Case 7.3 Johnson v. Medtronic, Inc. (2012) 148 Nature and Terminology 224 Defenses to Product Liability 151 An Overview of Contract Law 224 Case Analysis Case 11.1 Pan Handle Realty, LLC Chapter 8 v. Olins (2013) 226 Intellectual Property Rights 156 Elements of a Contract 227 Types of Contracts 228 Trademarks and Related Property 156 Quasi Contracts 232 Classic Case 8.1 The Coca-Cola Co. v. Case 11.2 Seawest Services Association v. The Koke Co. of America (1920) 156 Copenhaver (2012) 232 Patents 161 Interpretation of Contracts 234 Copyrights 164 Spotlight on Columbia Pictures Case Analysis Case 8.2 Winstead v. Jackson Case 11.3 Wagner v. Columbia Pictures (2013) 165 Industries, Inc. (2007) 235 Trade Secrets 169 International Protection for Intellectual Property 170 C h a p t e r 12 Case 8.3 Golan v. Holder (2012) 171 Agreement in Chapter 9 Traditional and E-Contracts 240 Internet Law, Agreement 240 Social Media, and Privacy 177 Classic Case 12.1 Lucy v. Zehmer (1954) 241 Spotlight on A mazon.com Internet Law 177 Case 12.2 Basis Technology Corp. v. Spotlight on Internet Porn Amazon.com, Inc. (2008) 244 Case 9.1 Hasbro, Inc. v. Internet Entertainment Case Analysis Case 12.3 Gyabaah v. Rivlab Group, Ltd. (1996) 180 Transportation Corp. (2013) 246 Copyrights in Digital Information 181 Agreement in E-Contracts 251 Case 9.2 Maverick Recording Co. v. Harper The Uniform Electronic Transactions Act 255 (2010) 183 International Treaties Affecting E-Contracts 256 Social Media 184 Case Analysis Case 9.3 In re O’Brien (2013) 185 C h a p t e r 13 Online Defamation 188 Consideration 260 Privacy 189 Elements of Consideration 260 C h a p t e r 10 Classic Case 13.1 Hamer v. Sidway (1891) 261 Criminal Law and Cyber Crime 194 Adequacy of Consideration 262 Agreements That Lack Consideration 262 Civil Law and Criminal Law 194 Case Analysis Case 13.2 Baugh v. Columbia Heart Criminal Liability 196 Clinic, P.A. (2013) 263 Types of Crimes 198 Settlement of Claims 265 Case Analysis Case 10.1 People v. Whitmer Spotlight on Nike (2013) 200 Case 13.3 Already, LLC v. Nike, Inc. Defenses to Criminal Liability 204 (2013) 267 Exceptions to the Consideration Requirement 268 Copyright 2013 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. 9781285185248_00_fm_i-xxx.indd 6 8/28/13 2:33 PM  Contents vii C h a p t e r 14 Third Party Beneficiaries 325 Capacity and Legality 273 Case Analysis Case 17.3 Lake County Grading Co. v. Village of Antioch (2013) 328 Contractual Capacity 273 Legality 277 Case 14.1 Sturdza v. United Arab Emirates C h a p t e r 18 (2011) 278 Performance and Discharge Spotlight on the Improv in Traditional and E-Contracts 333 Case 14.2 Comedy Club, Inc. v. Improv West Conditions 333 Associates (2009) 280 Case 18.1 Pack 2000, Inc. v. Cushman (2011) 334 Case Analysis Case 14.3 Holmes v. Multimedia Discharge by Performance 336 KSDK, Inc. (2013) 283 Classic Case 18.2 Jacob & Youngs v. Kent (1921) 337 C h a p t e r 15 Case Analysis Case 18.3 Kohel v. Bergen Auto Mistakes, Fraud, Enterprises, L.L.C. (2013) 338 and Voluntary Consent 290 Discharge by Agreement 340 Mistakes 290 Discharge by Operation of Law 342 Case 15.1 L&H Construction Co. v. Circle Redmont, Inc. (2011) 291 C h a p t e r 19 Fraudulent Misrepresentation 293 Breach of Contract and Remedies 348 Case 15.2 Fazio v. Cypress/GR Houston I, LP (2012) 294 Damages 348 Case Analysis Case 15.3 Cronkelton v. Guaranteed Case Analysis Case 19.1 Hallmark Cards, Inc. v. Construction Services, LLC (2013) 296 Murley (2013) 349 Undue Influence 298 Classic Case 19.2 Hadley v. Baxendale Duress 298 (1854) 352 Adhesion Contracts and Unconscionability 300 Equitable Remedies 355 Case 19.3 Emerick v. Cardiac Study Center, Inc. C h a p t e r 16 (2012) 357 The Writing Requirement Recovery Based on Quasi Contract 358 Waiver of Breach 359 and Electronic Records 305 Contract Provisions Limiting Remedies 360 Writing Requirement: The Statute of Frauds 305 Appendix to Chapter 19: Contracts That Require a Writing 306 Reading and Analyzing Contracts 364 Case Analysis Case 16.1 Salim v. Solaiman Unit Three Focus on Ethics: Contract Law (2010) 306 and the Application of Ethics 370 Exceptions to the Writing Requirement 310 Case 16.2 NYKCool A.B. v. Pacific Fruit, Inc. Unit Four (2013) 310 Sufficiency of the Writing 312 Domestic and International Case 16.3 Beneficial Homeowner Service Sales and Lease Contracts 373 Corporation v. Steele (2011) 313 The Parol Evidence Rule 314 Chapter 20 The Statute of Frauds in the International Context 316 The Formation of Sales and Lease Contracts 374 C h a p t e r 17 The Uniform Commercial Code 374 Third Party Rights 319 Case Analysis Case 20.1 Amaya v. Brater (2013) 375 Assignments and Delegations 319 The Scope of Articles 2 (Sales) and 2A (Leases) 376 Case 17.1 Hosch v. Colonial Pacific Leasing Corp. The Formation of Sales and Lease Contracts 380 (2012) 320 Case 20.2 WPS, Inc. v. Expro Americas, LLC Spotlight on PC Magazine (2012) 384 Case 17.2 Gold v. Ziff Communications Co. Classic Case 20.3 Jones v. Star Credit Corp. (2001) 323 (1969) 389 Copyright 2013 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. 9781285185248_00_fm_i-xxx.indd 7 8/28/13 2:33 PM  viii Contents Contracts for the International Sale of Goods 390 Chapter 24 Appendix to Chapter 20: International Law An Example of a Contract for the International in a Global Economy 453 Sale of Coffee 396 International Law 453 C h a p t e r 21 Case Analysis Case 24.1 Linde v. Arab Bank, PLC Title, Risk, and Insurable Interest 400 (2013) 457 Doing Business Internationally 459 Identification 400 Regulation of Specific Business Activities 460 When Title Passes 402 International Dispute Resolution 463 Case 21.1 United States v. 2007 Custom Motorcycle Case 24.2 S & T Oil Equipment & Machinery, Ltd. (2011) 402 v. Juridica Investments, Ltd. (2012) 463 Spotlight on Andy Warhol U.S. Laws in a Global Context 465 Case 21.2 Lindholm v. Brant (2007) 406 Spotlight on International Torts Risk of Loss 407 Case 24.3 Kiobel v. Royal Dutch Petroleum Case Analysis Case 21.3 Person v. Bowman Co. (2013) 466 (2013) 408 Unit Four Focus on Ethics: Domestic Insurable Interest 412 and International Sales and Lease Contracts 471 Chapter 22 Performance and Breach Unit Five of Sales and Lease Contracts 417 Negotiable Instruments 475 Performance Obligations 417 Obligations of the Seller or Lessor 417 Chapter 25 Case Analysis Case 22.1 Wilson Sporting Goods The Function and Creation Co. v. U.S. Golf and Tennis Centers, Inc. (2012) 419 of Negotiable Instruments 476 Classic Case 22.2 Maple Farms, Inc. v. City School Types of Negotiable Instruments 476 District of Elmira (1974) 422 Case 25.1 Silicon Valley Bank v. Miracle Faith Obligations of the Buyer or Lessee 423 World Outreach, Inc. (2013) 479 Anticipatory Repudiation 424 Requirements for Negotiability 481 Remedies of the Seller or Lessor 426 Case Analysis Case 25.2 Reger Development, LLC Remedies of the Buyer or Lessee 428 v. National City Bank (2010) 484 Spotlight on Baseball Cards Spotlight on Casino Markers Case 22.3 Fitl v. Strek (2005) 431 Case 25.3 Las Vegas Sands, LLC v. Additional Provisions Affecting Remedies 432 Nehme (2011) 487 Dealing with International Contracts 434 Factors That Do Not Affect Negotiability 488 Chapter 23 Chapter 26 Warranties 439 Transferability and Warranties of Title 439 Holder in Due Course 493 Express Warranties 440 Negotiation 493 Implied Warranties 441 Indorsements 494 Spotlight on DaimlerChrysler Case 26.1 In re Bass (2013) 494 Case 23.1 Shoop v. DaimlerChrysler Corp. Case Analysis Case 26.2 Hammett v. Deutsche (2007) 442 Bank National Co. (2010) 497 Classic Case 23.2 Webster v. Blue Ship Tea Room, Miscellaneous Indorsement Problems 501 Inc. (1964) 444 Holder in Due Course (HDC) 502 Overlapping Warranties 446 Spotlight on Holder in Due Course Warranty Disclaimers and Limitations on Case 26.3 Georg v. Metro Fixtures Contractors, Liability 448 Inc. (2008) 504 Case Analysis Case 23.3 Roberts v. Lanigan Auto Holder through an HDC 507 Sales (2013) 448 Copyright 2013 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. 9781285185248_00_fm_i-xxx.indd 8 8/28/13 2:33 PM  Contents ix Chapter 27 Case 30.1 In re Baker (2012) 578 Liability, Defenses, and Discharge 512 Case 30.2 In re Camtech Precision Manufacturing, Inc. (2011) 580 Signature Liability 512 The Scope of a Security Interest 584 Case 27.1 Jeanmarie v. Peoples (2010) 516 Priorities 586 Warranty Liability 519 Rights and Duties of Debtors and Creditors 588 Defenses and Limitations 522 Default 590 Case Analysis Case 27.2 Mills v. Chauvin Case Analysis Case 30.3 Smith v. Firstbank Corp. (2013) 524 (2013) 592 Discharge 526 C h a p t e r 31 Chapter 28 Bankruptcy Law 598 Banking in the Digital Age 531 The Bankruptcy Code 598 Checks 531 Liquidation Proceedings 600 The Bank-Customer Relationship 533 Reorganizations 608 The Bank’s Duty to Honor Checks 533 Bankruptcy Relief under Chapter 13 and Case Analysis Case 28.1 Afiriyie v. Bank of Chapter 12 610 America, N.A. (2013) 534 Case Analysis Case 31.1 In re Welsh (2013) 611 Case 28.2 Michigan Basic Property Insurance Case 31.2 Ransom v. FIA Card Services, N.A. Association v. Washington (2012) 539 (2011) 613 The Bank’s Duty to Accept Deposits 542 Case 31.3 United Student Aid Funds, Inc. v. Case 28.3 Cumis Mutual Insurance Society, Inc. v. Espinosa (2010) 614 Rosol (2011) 545 Unit Six Focus on Ethics: Electronic Fund Transfers 547 Creditors’ Rights and Bankruptcy 621 E-Money and Online Banking 548 Unit Five Focus on Ethics: Negotiable Instruments 553 Unit Seven Agency and Employment 623 Unit Six Creditors’ Rights Chapter 32 and Bankruptcy 557 Agency Formation and Duties 624 Agency Relationships 624 Chapter 29 Case 32.1 Coker v. Pershad (2013) 626 Creditors’ Rights and Remedies 558 Formation of the Agency Relationship 628 Laws Assisting Creditors 558 Case 32.2 Laurel Creek Health Care Center v. Case 29.1 BHP Land Services, Inc. v. Bishop (2010) 628 Seymour (2011) 559 Duties of Agents and Principals 630 Mortgages 562 Case Analysis Case 32.3 Taser International, Inc. Case Analysis Case 29.2 McLean v. JPMorgan v. Ward (2010) 632 Chase Bank, N.A. (2012) 564 Rights and Remedies of Agents and Principals 634 Suretyship and Guaranty 565 Spotlight on Personal Guaranties Chap ter 33 Case 29.3 Wilson Court Limited Partnership v. Agency Liability to Third Parties Tony Maroni’s, Inc. (1998) 567 and Termination 639 Protection for Debtors 570 Scope of Agent’s Authority 639 Chapter 30 Spotlight on Apparent Authority Case 33.1 Lundberg v. Church Farm, Inc. Secured Transactions 574 (1986) 642 The Terminology of Secured Transactions 574 Liability for Contracts 644 Creation of a Security Interest 574 Case 33.2 Williams v. Pike (2011) 645 Perfection of a Security Interest 576 Liability for Torts and Crimes 647 Copyright 2013 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. 9781285185248_00_fm_i-xxx.indd 9 8/28/13 2:33 PM  x Contents Case Analysis Case 33.3 Auer v. Paliath (2013) 649 Spotlight on Holiday Inns Termination of an Agency 652 Case 36.3 Holiday Inn Franchising, Inc. v. Hotel Associates, Inc. (2011) 715 Chapter 34 Employment, Immigration, Chap te r 37 and Labor Law 658 Partnerships and Limited Liability Partnerships 720 Employment at Will 658 Case 34.1 Waddell v. Boyce Thompson Institute Basic Partnership Concepts 720 for Plant Research, Inc. (2012) 659 Partnership Formation and Operation 722 Wages, Hours, and Layoffs 660 Classic Case 37.1 Meinhard v. Family and Medical Leave 662 Salmon (1928) 725 Worker Health and Safety 663 Dissociation of a Partner 728 Income Security 664 Partnership Termination 729 Employee Privacy Rights 666 Case 37.2 Russell Realty Associates v. Russell Case 34.2 National Aeronautics and Space (2012) 730 Administration v. Nelson (2011) 668 Case Analysis Case 37.3 Estate of Webster v. Immigration Law 669 Thomas (2013) 732 Labor Unions 672 Limited Liability Partnerships 733 Case Analysis Case 34.3 Services Employees Limited Partnerships 734 International Union v. National Union of Healthcare Workers (2013) 674 Chapter 38 Other Organizational Forms Chapter 35 for Small Businesses 740 Employment Discrimination The Limited Liability Company 740 and Diversity 681 Case Analysis Case 38.1 ORX Resources, Inc. v. Title VII of the Civil Rights Act of 1964 681 BMW Exploration, LLC (2010) 741 Case Analysis Case 35.1 Dees v. United Rentals LLC Management and Operation 744 North America, Inc. (2013) 682 Case 38.2 Polk v. Polk (2011) 744 Case 35.2 Morales-Cruz v. University of Puerto Dissociation and Dissolution of an LLC 746 Rico (2012) 689 Case 38.3 Venture Sales, LLC v. Perkins Discrimination Based on Age 691 (2012) 747 Case 35.3 Mora v. Jackson Memorial Foundation, Special Business Forms 748 Inc. (2010) 691 General Considerations for Small Business 750 Discrimination Based on Disability 693 Financial Capital 754 Defenses to Employment Discrimination 695 Affirmative Action 696 Chapter 39 Unit Seven Focus on Ethics: Corporate Formation and Financing 759 Agency and Employment 701 The Nature and Classification of Corporations 759 Case Analysis Case 39.1 Belmont v. Unit Eight MB Investment Partners, Inc. (2013) 760 Business Organizations 705 Case 39.2 Rubin v. Murray (2011) 763 Corporate Formation 765 Corporate Powers 770 Chapter 36 Piercing the Corporate Veil 771 Sole Proprietorships and Franchises 706 Case 39.3 Brennan’s, Inc. v. Colbert (2012) 772 Corporate Financing 774 Sole Proprietorships 706 Case 36.1 Quality Car & Truck Leasing, Inc. v. Sark (2013) 707 Chapter 40 Franchises 708 Corporate Directors, Franchise Termination 712 Officers, and Shareholders 780 Case Analysis Case 36.2 Mac’s Shell Service, Inc. v. Role of Directors and Officers 780 Shell Oil Products Co. (2010) 713 Duties and Liabilities of Directors and Officers 782 Copyright 2013 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. 9781285185248_00_fm_i-xxx.indd 10 8/28/13 2:33 PM  Contents xi Classic Case 40.1 Guth v. Loft, Inc. (1939) 785 Case 43.2 Mayo Foundation for Medical The Role of Shareholders 787 Education and Research v. United States Case Analysis Case 40.2 Case v. Sink & Rise, Inc. (2011) 851 (2013) 790 Enforcement and Adjudication 853 Rights of Shareholders 792 Case 43.3 Craker v. Drug Enforcement Case 40.3 McCann v. McCann (2012) 795 Administration (2013) 855 Duties and Liabilities of Shareholders 796 Public Accountability 857 C h a p t e r 41 Chapter 44 Mergers and Takeovers 801 Consumer Law 861 Merger, Consolidation, and Share Exchange 801 Deceptive Advertising 861 Purchase of Assets 804 Case 44.1 Hypertouch, Inc. v. ValueClick, Inc. Case Analysis Case 41.1 American Standard, Inc. (2011) 863 v. OakFabco, Inc. (2010) 804 Labeling and Packaging Laws 866 Purchase of Stock 805 Spotlight on Honda Case 41.2 Air Products and Chemicals, Inc. v. Case 44.2 Paduano v. American Honda Motor Airgas, Inc. (2011) 808 Co. (2009) 866 Termination 809 Sales 868 Major Business Forms Compared 811 Protection of Health and Safety 868 Credit Protection 870 Chapter 42 Case Analysis Case 44.3 Jerman v. Carlisle, Securities Law and McNellie, Rini, Kramer & Ulrich, LPA Corporate Governance 816 (2010) 873 The Securities and Exchange Commission 816 Chapter 45 The Securities Act of 1933 817 Case 42.1 Litwin v. Blackstone Group, LP Environmental Law 878 (2011) 822 Common Law Actions 878 The Securities Exchange Act of 1934 823 Federal, State, and Local Regulations 879 Classic Case 42.2 SEC v. Texas Gulf Sulphur Co. Air Pollution 880 (1968) 824 Water Pollution 882 Case Analysis Case 42.3 City of Livonia Case 45.1 Entergy Corp. v. Riverkeeper, Inc. Employees’ Retirement System and Local 295/ (2009) 883 Local 851 v. Boeing Co. (2013) 828 Case Analysis Case 45.2 United States v. State Securities Laws 830 Lucas (2008) 884 Corporate Governance 830 Case 45.3 Sackett v. Environmental Protection Online Securities Fraud 832 Agency (2012) 886 Unit Eight Focus on Ethics: Toxic Chemicals 888 Business Organizations 838 Hazardous Wastes 888 Chapter 46 Unit Nine Government Regulation 841 Antitrust Law 893 The Sherman Antitrust Act 893 Section 1 of the Sherman Act 894 Chapter 43 Case Analysis Case 46.1 Leegin Creative Leather Administrative Agencies 842 Products, Inc. v. PSKS, Inc. (2007) 897 The Practical Significance of Administrative Law 842 Section 2 of the Sherman Act 898 Agency Creation and Powers 843 Case 46.2 E.I. DuPont de Nemours and Co. v. The Administrative Procedure Act 846 Kolon Industries (2011) 899 Case Analysis Case 43.1 Federal Communications The Clayton Act 902 Commission v. Fox Television Stations, Inc. Enforcement and Exemptions 905 (2009) 847 U.S. Antitrust Laws in the Global Context 906 Judicial Deference to Agency Decisions 850 Case 46.3 Carrier Corp. v. Outokumpu Oyj (2012) 907 Copyright 2013 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. 9781285185248_00_fm_i-xxx.indd 11 8/28/13 2:33 PM  xii Contents Chap te r 47 Case 49.2 Scarborough v. Rollins (2010) 965 Professional Liability Limitations on the Rights of Property Owners 967 Case Analysis Case 49.3 Town of Midland v. and Accountability 912 Morris (2011) 967 Potential Liability to Clients 912 Zoning and Government Regulations 970 Case 47.1 Kelley v. Buckley (2011) 916 Landlord-Tenant Relationships 972 Potential Liability to Third Parties 917 Case Analysis Case 47.2 Perez v. Stern (2010) 919 Chapter 50 The Sarbanes-Oxley Act of 2002 920 Insurance 978 Potential Liability of Accountants Under Securities Laws 922 Insurance Terminology and Concepts 978 Spotlight on Accountant’s Duty to Correct The Insurance Contract 980 Mistakes Case 50.1 Valero v. Florida Insurance Guaranty Case 47.3 Overton v. Todman & Co., CPAs Association, Inc. (2011) 983 (2007) 925 Case 50.2 Woo v. Fireman’s Fund Insurance Co. Confidentiality and Privilege 928 (2007) 985 Unit Nine Focus on Ethics: Types of Insurance 987 Government Regulation 932 Case Analysis Case 50.3 Estate of Luster v. Allstate Insurance Co. (2010) 989 Unit Ten C h a p t e r 51 Property and Its Protection 935 Wills and Trusts 996 Wills 996 Case 51.1 In re Estate of Johnson (2011) 999 Chapter 48 Case 51.2 In re Estate of Melton (2012) 1001 Personal Property and Bailments 936 Case Analysis Case 51.3 Peterson v. Harrell (2010) 1003 Personal Property versus Real Property 936 Intestacy Laws 1007 Case Analysis Case 48.1 APL Limited v. Trusts 1008 Washington State Department of Revenue Other Estate-Planning Issues 1012 (2010) 938 Unit Ten Focus on Ethics: Acquiring Ownership of Personal Property 939 Property and Its Protection 1018 Classic Case 48.2 In re Estate of Piper (1984) 940 Mislaid, Lost, and Abandoned Property 943 Appendices Bailments 944 A How to Brief Cases and Analyze Case Problems A–l Ordinary Bailments 945 B The Constitution of the United States A–4 Case 48.3 Bridge Tower Dental, P.A. v. Meridian Computer Center, Inc. (2012) 948 C The Uniform Commercial Code A–12 Special Types of Bailments 949