Introduction to Business Law 7th Edition PDF

Copyright 2023 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-322  Copyright 2023 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-322 Copyright...

Copyright 2023 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-322  Copyright 2023 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-322 Copyright 2023 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.  Introduction to Business Law 7 TH Edition Jeffrey F. Beatty Boston University Susan S. Samuelson Boston University Patricia Sánchez Abril University of Miami Australia Brazil Canada Mexico Singapore United Kingdom United States Copyright 2023 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.  This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. 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. Important Notice: Media content referenced within the product description or the product text may not be available in the eBook version. Copyright 2023 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-322 Copyright 2023 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.  Introduction to Business Law, 7th Edition Last three editions, as applicable: © 2019, © 2016 Jeffrey F. Beatty, Susan S. Samuelson, and Copyright © 2023 Cengage Learning, Inc. Patricia Sánchez Abril ALL RIGHTS RESERVED. No part of this work covered by the copyright SVP, Higher Education Product Management: herein may be reproduced or distributed in any form or by any means, Erin Joyner except as permitted by U.S. copyright law, without the prior written permission of the copyright owner. VP, Product Management, Learning Experiences: Thais Alencar Unless otherwise noted, all content is Copyright © Cengage Learning, Inc. Product Director: Joseph Sabatino Product Manager: Abbie Schultheis For product information and technology assistance, contact us at Product Assistant: Nick Perez Cengage Customer & Sales Support, 1-800-354-9706 or support.cengage.com. Learning Designer: Mara Vuillaume Senior Content Manager: Kim Kusnerak For permission to use material from this text or product, submit all requests online at www.copyright.com. Digital Delivery Quality Partner: Mark Hopkinson Product Marketing Manager: Anthony Winslow Library of Congress Control Number: 2021918710 IP Analyst: Ashley Maynard Student Edition: Production Service: Straive ISBN: 978-0-357-71718-9 Designer: Erin Griffin Loose-leaf Edition: Cover Image Source: Fer Gregory/Shutterstock.com ISBN: 978-0-357-71719-6 Cengage 200 Pier 4 Boulevard Boston, MA 02210 USA Cengage is a leading provider of customized learning solutions with employees residing in nearly 40 different countries and sales in more than 125 countries around the world. Find your local representative at www.cengage.com. To learn more about Cengage platforms and services, register or access your online learning solution, or purchase materials for your course, visit www.cengage.com. Printed in the United States of America Print Number: 01 Print Year: 2021 Copyright 2023 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.  Contents: Overview Preface xv Unit 5 The Lifecycle of a Business 387 20 Starting a Business: LLCs and Other Options 388 Unit 1 21 Corporations 407 The Legal Environment 1 22 Bankruptcy 431 1 Introduction to Law 2 2 Ethics and Corporate Social Responsibility 15 3 International Law 40 Unit 6 4 Constitutional, Statutory, Administrative, Government Regulation 451 and Common Law 61 5 Dispute Resolution 83 23 Securities and Antitrust 452 6 Crime 105 24 Consumer Protection 472 25 Environmental Law 494 26 Accountants’ Liability 512 Unit 2 Torts 125 Unit 7 7 Intentional Torts and Business Torts 126 Property 529 8 Negligence, Strict Liability, and Product Liability 141 27 Intellectual Property 530 9 Privacy and Internet Law 160 28 Real Property and Landlord–Tenant Law 549 29 Personal Property and Bailment 570 30 Estate Planning 586 31 Insurance 604 Unit 3 Contracts and the UCC 183 Appendix A The Constitution of the United States A1 10 Forming a Contract 184 11 Requirements for a Contract 204 Appendix B 12 Performance of a Contract 227 Uniform Commercial Code B1 13 Practical Contracts 248 14 Sales 268 Appendix C 15 Negotiable Instruments 285 Answers to Selected End-of-Chapter Questions C1 16 Secured Transactions 302 Glossary G1 Table of Cases T1 Unit 4 Index I1 Agency and Employment Law 323 17 Agency 324 18 Employment and Labor Law 344 19 Employment Discrimination 365 iii Copyright 2023 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.  Copyright 2023 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.  Contents Preface xv 2-3j Lost in a Crowd 25 2-3k Short-Term Perspective 25 2-3l Blind Spots 25 2-3m Lying: A Special Case 26 Unit 1 2-3n Ethics Case: Truth (?) in Borrowing 26 2-3o Avoiding Ethics Traps 26 The Legal Environment 1 2-3p Reacting to Unethical Behavior 27 2-4 Applying the Principles 28 Chapter 1 Introduction to Law 2 2-4a Personal Ethics in the Workplace 28 1-1 Exploring the Law 3 2-4b Ethics Case: Weird Wierdsma 28 1-1a Sources of Contemporary Law 3 2-4c The Organization’s Responsibility 1-1b Classifications of Law 5 to Society 29 1-2 Working with the Book’s Features 7 2-4d Ethics Case: Up in Smoke 29 1-2a Analyzing a Case 7 2-4e The Organization’s Responsibility 1-2b Analysis 8 to Its Employees 30 1-2c Exam Strategy 9 2-4f Ethics Case: The Storm after the Storm 30 1-2d You Be the Judge 9 2-4g The Organization’s Responsibility to Its Customers30 Chapter Conclusion 10 2-4h Ethics Case: Mickey Weighs In 30 Exam Review 11 2-4i The Organization’s Responsibility Matching Questions 12 to Overseas Workers 31 True/False Questions 12 2-4j Ethics Case: A Worm in the Apple 31 Multiple-Choice Questions 12 2-4k Corporate Social Responsibility 32 Case Questions 13 2-4l Ethics Case: The Beauty of a Discussion Questions 14 Well-Fed Child 32 Chapter 2 Ethics and Corporate Chapter Conclusion 33 Social Responsibility 15 Exam Review 33 Matching Questions 35 2-1 Why Study Ethics? 16 True/False Questions 35 2-1a Ethics in Business 17 2-1b Why Be Ethical? 17 Multiple-Choice Questions 35 2-2 Theories of Ethics 19 Case Questions 36 2-2a Utilitarian Ethics 19 Discussion Questions 37 2-2b Deontological Ethics 20 2-2c Rawlsian Justice 20 2-2d Front Page Test 20 2-2e Moral Universalism and Relativism 21 Chapter 3 International Law 40 2-3 Ethics Traps 21 3-1 Sources of International Law 41 2-3a Money 21 3-1a Treaties 41 2-3b Competition 22 3-1b Custom 41 2-3c Rationalization 22 3-1c General Principles of Law 42 2-3d We Can’t Be Objective about Ourselves 23 3-2 Actors in International Law 43 2-3e Moral Licensing 23 3-2a States 43 2-3f Conflicts of Interest 24 3-2b Regional Alliances 44 2-3g Conformity 24 3-2c International Organizations 2-3h Following Orders 24 and Dispute Resolution 45 2-3i Euphemisms and Reframing 24 3-2d Individuals 48 v Copyright 2023 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. vi Contents 3-3 The World’s Legal Traditions 49 Chapter 5 Dispute Resolution 83 3-3a Common Law 49 5-1 Court Systems 84 3-3b Civil Law 49 5-1a State Courts 84 3-3c Religious Legal Systems: Islamic Law 49 5-1b Federal Courts 86 3-4 Extraterritoriality: Domestic Laws 5-2 Litigation 88 Applied Abroad 50 5-2a Pleadings 88 3-4a Application of U.S. Law Abroad 51 5-2b The Discovery Process 91 3-4b Foreign Laws and Judgments in 5-2c Summary Judgment 93 the United States 52 5-3 Trial 95 3-5 Contracting Internationally 53 5-3a Right to Jury Trial 95 3-5a The Sale of Goods Across Borders 53 5-3b Opening Statements 95 3-5b Best Practices in International Contracts 54 5-3c Burden of Proof 95 5-3d Plaintiff’s Case 96 Chapter Conclusion 55 5-3e Defendant’s Case 96 Exam Review 55 5-3f Closing Argument 97 Matching Questions 57 5-3g Verdict 97 True/False Questions 58 5-4 Appeals 97 Multiple-Choice Questions 58 5-4a Appeal Court Options 98 Case Questions 59 5-5 Alternative Dispute Resolution 98 Discussion Questions 60 5-5a Mediation 98 5-5b Arbitration 99 Chapter Conclusion 99 Chapter 4 Constitutional, Statutory, Exam Review 100 Administrative, and Common Law 61 Matching Questions 101 4-1 Constitutional Law 62 True/False Questions 102 4-1a Government Power 62 Multiple-Choice Questions 102 4-1b Power Granted 63 Case Questions 103 4-1c Protected Rights 65 Discussion Questions 104 4-1d Fifth Amendment: Due Process and the Takings Clause 68 4-1e Fourteenth Amendment: Equal Protection Clause 69 Chapter 6 Crime 105 4-2 Statutory Law 70 6-1 Criminal Procedure 106 4-2a Committee Work 70 6-1a A Civil versus a Criminal Case 106 4-3 Common Law 71 6-1b State of Mind 107 4-3a Stare Decisis 72 6-1c Gathering Evidence: The Fourth 4-3b Bystander Cases 72 Amendment 108 4-4 Administrative Law 73 6-1d After Arrest 110 4-4a Rule Making 74 6-2 Crimes That Harm Businesses (and Their 4-4b Investigation 75 Customers) 112 4-4c Adjudication 75 6-2a Larceny 112 6-2b Embezzlement 112 Chapter Conclusion 76 6-2c Fraud 112 Exam Review 77 6-2d Arson 113 Matching Questions 79 6-2e Phishing and Hacking 114 True/False Questions 79 6-3 Crimes Committed by Business 114 Multiple-Choice Questions 80 6-3a Making False Statements 114 Case Questions 81 6-3b RICO 115 Discussion Questions 82 6-3c Money Laundering 115 Copyright 2023 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.  Contents vii 6-3d Hiring Undocumented Workers 116 8-2 Strict Liability and Product Liability 151 6-3e Foreign Corrupt Practices Act 116 8-2a Strict Liability 151 6-3f Punishing a Corporation 117 8-2b Product Liability 151 8-2c Contemporary Trends 153 Chapter Conclusion 118 Exam Review 118 Chapter Conclusion 154 Matching Questions 121 Exam Review 155 True/False Questions 121 Matching Questions 156 Multiple-Choice Questions 121 True/False Questions 157 Case Questions 122 Multiple-Choice Questions 157 Discussion Questions 123 Case Questions 158 Discussion Questions 159 Unit 2 Torts 125 Chapter 9 Privacy and Internet Law 160 9-1 Privacy in a Digital World 161 Chapter 7 Intentional Torts and 9-1a How We Lose Our Privacy in the Business Torts 126 Digital World 161 7-1 Intentional Torts 127 9-2 The Law of Privacy 163 7-1a Defamation 127 9-2a Constitutional Law: The Fourth 7-1b False Imprisonment 129 Amendment 163 7-1c Battery and Assault 129 9-2b Privacy Torts 164 7-1d Fraud 130 9-2c Federal Privacy Statutes 166 7-1e Intentional Infliction of Emotional 9-2d State Privacy Statutes 170 Distress 130 9-2e Trends in Consumer Privacy 170 7-2 Damages 130 9-2f European General Data Protection 7-2a Compensatory Damages 130 Regulation 170 7-2b Punitive Damages 132 9-3 Regulation in the Digital World 171 7-3 Business Torts 133 9-3a Regulation of Online Speech 172 7-3a Tortious Interference with a Contract 133 9-3b Liability of ISPs 174 7-3b False Advertising 134 Chapter Conclusion 175 Chapter Conclusion 135 Exam Review 176 Exam Review 135 Matching Questions 178 Matching Questions 137 True/False Questions 178 True/False Questions 137 Multiple-Choice Questions 178 Multiple-Choice Questions 138 Case Questions 179 Case Questions 139 Discussion Questions 180 Discussion Questions 139 Chapter 8 Negligence, Strict Liability, Unit 3 and Product Liability 141 Contracts and the UCC 183 8-1 Negligence 141 8-1a Duty of Due Care 142 Chapter 10 Forming a Contract 184 8-1b Breach of Duty 145 10-1 Contracts 185 8-1c Causation 145 10-1a Elements of a Contract 185 8-1d Damages 149 10-1b Types of Contracts 186 8-1e Defenses 149 10-1c Sources of Contract Law 188 Copyright 2023 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. viii Contents 10-2 Enforcing Noncontracts 189 Chapter 12 Performance of a Contract 227 10-2a Promissory Estoppel 189 12-1 Third Party Beneficiaries 228 10-2b Quasi-Contract 191 12-1a Types of Beneficiaries 228 10-3 Agreement 192 12-2 Assignment and Delegation 229 10-3a Making an Offer 192 12-2a Assignment 230 10-3b Termination of Offers 194 12-2b Delegation of Duties 231 10-3c Acceptance 195 12-3 Performance and Discharge 232 10-3d Communication of Acceptance 197 12-3a Performance 232 12-3b Good Faith 233 Chapter Conclusion 198 12-3c Breach 234 Exam Review 198 12-3d Impossibility 235 Matching Questions 200 12-4 Remedies 235 True/False Questions 200 12-4a Expectation Interest 236 Multiple-Choice Questions 200 12-4b Reliance Interest 239 Case Questions 202 12-4c Restitution Interest 240 Discussion Questions 202 12-4d Other Equitable Interests 240 12-4e Mitigation of Damages 241 Chapter Conclusion 241 Chapter 11 Requirements for a Exam Review 241 Contract 204 Matching Questions 243 11-1 Consideration 205 True/False Questions 244 11-1a What Is Value? 205 Multiple-Choice Questions 244 11-1b What Constitutes Exchange? 206 Case Questions 245 11-2 Legality 207 Discussion Questions 246 11-2a Non-compete Agreements: Sale of a Business 207 11-2b Non-compete Agreements: Chapter 13 Practical Contracts 248 Employment Contracts 208 13-1 Creating a Contract 249 11-2c Exculpatory Clauses 209 13-1a The Lawyer 249 11-3 Capacity 211 13-1b Who Drafts the Contract? 250 11-3a Minors 211 13-1c Mistakes 250 11-3b Mentally Impaired Persons 212 13-2 The Structure of a Contract 255 11-3c Intoxication 213 13-2a Terms That Vary by Contract 255 11-4 Reality of Consent 213 13-2b Boilerplate 258 11-4a Fraud 213 11-4b Mistake 215 Chapter Conclusion 262 11-5 Contracts in Writing 216 Exam Review 262 11-5a Contracts That Must Be in Writing 217 Matching Questions 264 11-5b What the Writing Must Contain 219 True/False Questions 264 11-5c Sale of Goods 220 Multiple-Choice Questions 264 Case Questions 266 Chapter Conclusion 220 Discussion Questions 267 Exam Review 221 Matching Questions 222 True/False Questions 223 Chapter 14 Sales 268 Multiple-Choice Questions 223 14-1 Sales 269 Case Questions 224 14-1a Development of the UCC 269 Discussion Questions 225 14-1b Contract Formation 270 14-1c Performance and Remedies 274 Copyright 2023 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.  Contents ix 14-2 Warranties 275 16-5 Priorities Among Creditors 313 14-2a Express Warranties 275 16-6 Default and Termination 314 14-2b Implied Warranties 276 16-6a Default 314 16-6b Termination 315 Chapter Conclusion 279 Exam Review 279 Chapter Conclusion 316 Matching Questions 281 Exam Review 316 True/False Questions 281 Matching Questions 318 Multiple-Choice Questions 282 True/False Questions 319 Case Questions 283 Multiple-Choice Questions 319 Discussion Questions 284 Case Questions 320 Discussion Questions 321 Chapter 15 Negotiable Instruments 285 15-1 Negotiable Instruments 286 Unit 4 15-1a Commercial Paper 286 Agency and Employment Law 323 15-1b Types of Negotiable Instruments 286 15-1c Negotiation 287 Chapter 17 Agency 324 15-2 Holder in Due Course 291 17-1 The Agency Relationship 325 15-2a Requirements for Being a Holder 17-1a Creating an Agency Relationship 325 in Due Course 292 17-1b Duties of Agents to Principals 326 15-2b Defenses against a Holder in Due 17-1c Duties of Principals to Agents 328 Course 294 17-1d Terminating an Agency Relationship 328 15-2c Consumer Exception 295 17-2 Liability to Third Parties 329 17-2a Principal’s Liability for Contracts 329 Chapter Conclusion 296 17-2b Agent’s Liability for Contracts 330 Exam Review 296 17-2c Principal’s Liability for Negligent Matching Questions 298 Physical Torts 331 True/False Questions 298 17-2d Principal’s Liability for Intentional Multiple-Choice Questions 298 Physical Torts 336 Case Questions 299 17-2e Principal’s Liability for Nonphysical Discussion Questions 300 Torts 336 17-2f Agent’s Liability for Torts 337 Chapter Conclusion 337 Chapter 16 Secured Transactions 302 Exam Review 337 16-1 Article 9: Terms and Scope 303 Matching Questions 339 16-1a Scope of Article 9 305 True/False Questions 340 16-2 Attachment of a Security Interest 305 Multiple-Choice Questions 340 16-2a Agreement 305 Case Questions 342 16-2b Possession 306 Discussion Questions 342 16-2c Value 306 16-2d Debtor Rights in the Collateral 306 16-2e Attachment to Future Property 306 16-3 Perfection 307 Chapter 18 Employment and Labor Law 344 16-3a Perfection by Filing 307 18-1 Employment at Will 345 16-3b Perfection by Possession 309 18-2 Employment Security 345 16-3c Perfection of Consumer Goods 309 18-2a Common Law Protections 345 16-4 Protection of Buyers 311 18-2b Family and Medical Leave Act 348 16-4a Buyers in Ordinary Course of Business 311 18-2c Whistleblowing 348 Copyright 2023 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. x Contents 18-3 Workplace Freedom and Safety 349 19-6 Hiring Practices 378 18-3a Off-Duty Activities 349 19-6a Interviews 378 18-3b The Right to Free Speech 350 19-6b Social Media 379 18-3c Lie Detector Tests 352 19-7 Enforcement 379 18-3d OSHA 352 18-3e Employee Data 353 Chapter Conclusion 379 18-3f Guns 353 Exam Review 380 18-4 Financial Protection 353 Matching Questions 382 18-4a Fair Labor Standards Act 353 True/False Questions 383 18-4b Fair Workweek Laws 353 Multiple-Choice Questions 383 18-4c Workers’ Compensation 354 Case Questions 384 18-4d Health Insurance 354 Discussion Questions 385 18-4e Social Security 354 18-5 Labor Unions 354 18-5a Organizing a Union 356 18-5b Collective Bargaining 357 Unit 5 18-5c Concerted Action 357 The Lifecycle of a Business 387 Chapter Conclusion 358 Chapter 20 Starting a Business: Exam Review 359 Matching Questions 361 LLCs and Other Options 388 True/False Questions 361 20-1 Sole Proprietorships 389 Multiple-Choice Questions 362 20-2 Corporations 389 Case Questions 363 20-2a Corporations in General 389 Discussion Questions 363 20-2b Special Types of Corporations 391 20-3 Limited Liability Companies 392 20-3a Limited Liability 392 20-3b Formation 393 Chapter 19 Employment Discrimination 365 20-3c Flexibility 394 19-1 Equal Pay Act of 1963 366 20-3d Transferability of Interests 394 19-2 The Civil Rights Act of 1964 367 20-3e Duration 395 19-2a Prohibited Activities 367 20-3f Going Public 395 19-2b Religion 370 20-3g Piercing the Company Veil 395 19-2c Sex 370 20-3h Choices: LLC versus Corporation 396 19-2d Sexual Orientation and Transgender 20-4 Social Enterprises 397 Status 371 20-5 General Partnerships 397 19-2e Appearance 371 20-5a Tax Status 397 19-2f Parenthood 371 20-5b Liability 397 19-2g Criminal History and Credit Checks 372 20-5c Formation 397 19-2h Immigration 373 20-5d Raising Capital 398 19-2i Reverse Discrimination 373 20-5e Management 398 19-2j Defenses to Charges of Discrimination 373 20-5f Transfer of Ownership 398 19-3 Age 375 20-5g Terminating a Partnership: Dissociation 399 19-4 Americans with Disabilities Act 376 20-6 Limited Liability Partnerships 399 19-4a The Hiring Process 377 20-7 Professional Corporations 399 19-4b Relationship with a Person with 20-8 Franchises 400 a Disability 377 19-4c Obesity 377 Chapter Conclusion 401 19-4d Mental Disabilities 377 Exam Review 402 19-5 Genetic Information Nondiscrimination Act 378 Matching Questions 403 Copyright 2023 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.  Contents xi True/False Questions 403 22-3e Discharge 442 Multiple-Choice Questions 403 22-3f Subchapter 5: Small Business Case Questions 404 Reorganization Act 443 Discussion Questions 406 22-4 Chapter 13 Consumer Reorganizations 443 22-4a Beginning a Chapter 13 Case 443 22-4b Plan of Payment 443 Chapter 21 Corporations 407 22-4c Discharge 443 21-1 Promoter’s Liability 408 21-2 Incorporation Process 408 Chapter Conclusion 444 21-2a Where to Incorporate? 408 Exam Review 444 21-2b The Charter 409 Matching Questions 446 21-3 After Incorporation 410 True/False Questions 446 21-4 Death of the Corporation 411 Multiple-Choice Questions 446 21-4a Voluntary Termination by the Case Questions 448 Shareholders 411 Discussion Questions 449 21-4b Termination by the State 411 21-5 Management Duties 412 21-5a The Business Judgment Rule 413 21-5b Applications of the Business Unit 6 Judgment Rule 414 21-6 Shareholder Rights 417 Government Regulation 451 21-6a The Relationship between Chapter 23 Securities and Antitrust 452 Shareholders and Managers 418 21-6b Right to Information 418 23-1 Securities Laws 453 21-6c Right to Vote 419 23-1a What Is a Security? 453 23-1b Securities Act of 1933 453 Chapter Conclusion 424 23-1c Securities Exchange Act of 1934 455 Exam Review 424 23-1d Insider Trading 457 Matching Questions 427 23-1e Blue Sky Laws 460 True/False Questions 427 23-2 Antitrust 460 Multiple-Choice Questions 428 23-2a The Sherman Act 460 Case Questions 429 23-2b The Clayton Act 463 Discussion Questions 430 23-2c The Robinson-Patman Act 465 23-2d Tech Power 465 Chapter Conclusion 466 Chapter 22 Bankruptcy 431 Exam Review 466 22-1 Overview of the Bankruptcy Code 432 Matching Questions 468 22-2 Chapter 7 Liquidation 433 True/False Questions 468 22-2a Filing a Petition 433 Multiple-Choice Questions 469 22-2b Trustee 434 Case Questions 470 22-2c Creditors 434 Discussion Questions 471 22-2d Automatic Stay 435 22-2e Bankruptcy Estate 435 22-2f Payment of Claims 436 Chapter 24 Consumer Protection 472 22-2g Discharge 437 24-1 Introduction 473 22-3 Chapter 11 Reorganization 441 24-2 Sales 473 22-3a Debtor in Possession 441 24-2a Deceptive Acts or Practices 473 22-3b Creditors’ Committee 441 24-2b Unfair Practices 474 22-3c Plan of Reorganization 441 24-2c Abusive Acts 474 22-3d Confirmation of the Plan 442 24-2d Bait and Switch 474 Copyright 2023 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. xii Contents 24-2e Merchandise Bought by Mail, Chapter 26 Accountants’ Liability 512 by Telephone, or Online 475 26-1 Introduction 513 24-2f Telemarketing 475 26-1a Sarbanes-Oxley 513 24-2g Unordered Merchandise 476 26-1b Consolidation in the Accounting 24-2h Door-to-Door Sales 476 Profession 514 24-3 Consumer Credit 476 26-1c Audits 514 24-3a Payday Loans 477 26-2 Liability to Clients 515 24-3b Truth in Lending Act 477 26-2a Contract 515 24-3c Home Mortgage Loans 477 26-2b Negligence 516 24-3d Plastic Cards and Other Payment 26-2c Common Law Fraud 516 Methods 478 24-3e Electronic Fund Transfers 481 26-2d Breach of Trust 517 24-3f Credit Reports