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UNIT1 The Legal Environment of Business1

Chapter 1Introduction to Law and Legal Reasoning2

Schools of Jurisprudential Thought2

Business Activities and the Legal Environment4

Sources of American Law6

The Common Law Tradition7

The Common Law Today13

Classifications of Law14

How to Find Primary Sources of Law15

How to Read and Understand Case Law21

REVIEWING：INTRODUCTION TO LAW AND LEGAL REASONING27

TERMS AND CONCEPTS27

QUESTIONS AND CASE PROBLEMS28

LAW ON THE WEB29

LEGAL RESEARCH EXERCISES ON THE WEB29

Chapter 2 Courts and Alternative Dispute Resolution30

The Judiciary’s Role in American Government30

Basic Judicial Requirements31

CASE 2.1 Mastondrea v.Occidental Hotels Management S.A.32

The State and Federal Court Systems37

Alternative Dispute Resolution41

CASE 2.2 Buckeye Check Cashing，Inc.v. Cardegna44

EXTENDED CASE 2.3 Morrison v.Circuit City Stores，Inc.46

International Dispute Resolution48

REVIEWING：COURTS AND ALTERNATIVE DISPUTE RESOLUTION49

TERMS AND CONCEPTS49

QUESTIONS AND CASE PROBLEMS50

LAW ON THE WEB52

LEGAL RESEARCH EXERCISES ON THE WEB52

Chapter 3 Court Procedures53

Procedural Rules53

Pretrial Procedures55

EXTENDED CASE 3.1 Cruz v.FagorAmerica，Inc.58

CASE 3.2 Computer Task Group，Inc.v.Brotby62

The Trial66

CASE 3.3 Novak v.Tucows，Inc.68

Posttrial Motions70

The Appeal71

Enforcing the Judgment72

REVIEWING：COURT PROCEDURES73

TERMS AND CONCEPTS73

QUESTIONS AND CASE PROBLEMS74

SPECIAL CASE ANALYSIS：CRUZ v.FAGOR AMERICA，INC.75

LAW ON THE WEB76

LEGAL RESEARCH EXERCISES ON THE WEB76

Chapter 4 Constitutional Authority to Regulate Business77

The Constitutional Powers of Government77

CASE 4.1 Granholm v.Heald80

Business and the Bill of Rights83

CASE 4.2 Bad Frog Brewery，Inc.v.New York State LiquorAuthority87

EXTENDED CASE 4.3 Lott v.Levitt88

Due Process and Equal Protection92

Privacy Rights94

REVIEWING：CONSTITUTIONAL AUTHORITY TO REGULATE BUSINESS95

TERMS AND CONCEPTS95

QUESTIONS AND CASE PROBLEMS96

SPECIAL CASE ANALYSIS：LOTT V. LEVITT97

LAW ON THE WEB98

LEGAL RESEARCH EXERCISES ON THE WEB98

Chapter 5 Ethics and Business Decision Making99

Business Ethics99

EXTENDED CASE 5.1 Baum v.Blue Moon Ventures，LLC101

Approaches to Ethical Reasoning103

CASE 5.2 Fog Cutter Capital Group，Inc.v.Securities and Exchange Commission104

How the Law Influences Business Ethics106

CASE 5.3 Guin v.Brazos Higher Education Service Corp.109

Making Ethical Business Decisions110

Business Ethics on a Global Level111

REVIEWING：ETHICS AND BUSINESS DECISION MAKING113

TERMS AND CONCEPTS113

QUESTIONS AND CASE PROBLEMS114

LAW ON THE WEB116

LEGAL RESEARCH EXERCISES ON THE WEB116

FOCUS ON ETHICS：ETHICS AND THE LEGAL ENVIRONMENT OF BUSINESS117

UNIT2 Torts and Crimes121

Chapter 6 Intentional Torts122

The Basis of Tort Law122

Intentional Torts against Persons123

CASE 6.1 Anderson v.Mergenhagen128

Business Torts131

Intentional Torts against Property133

EXTENDED CASE 6.2 Registercom，Inc.v.Verio，Inc.134

Cyber Torts136

CASE 6.3 Fair Housing Council of San Fernando Valley v.Roommate.com，LLC137

REVIEWING：INTENTIONAL TORTS140

TERMS AND CONCEPTS140

QUESTIONS AND CASE PROBLEMS141

LAW ON THE WEB143

LEGAL RESEARCH EXERCISES ON THE WEB143

Chapter 7 Negligence and Strict Liability144

Negligence144

CASE 7.1 Izquierdo v.Gyroscope，Inc.145

CASE 7.2 Palsgrafv. Long Island Railroad Co.148

Defenses to Negligence149

EXTENDED CASE 7.3 Sutton v.Eastern New York Youth Soccer Association，Inc.150

Special Negligence Doctrines and Statutes152

Strict Liability153

REVIEWING：NEGLIGENCE AND STRICT LIABILITY154

TERMS AND CONCEPTS154

QUESTIONS AND CASE PROBLEMS155

SPECIAL CASE ANALYSIS：SUTTON V.EASTERN NEW YORK YOUTH SOCCFR ASSOCIATION，INC.156

LAW ON THE WEB156

LEGAL RESEARCH EXERCISES ON THE WEB156

Chapter 8 Intellectual Property and Internet Law157

Trademarks and Related Property157

CASE 8.1 The Coca-Cola Co.v.The Koke Co.of America158

CASE 8.2 Menashe v.V Secret Catalogue，Inc.161

Cyber Marks164

Patents167

EXTENDED CASE 8.3 KSR International Co.v.Teleflex Inc.168

Copyright © 2025  最新更新

Copyright © 2025  最新更新

CASE 8.4 Sony BMG Music Entertainment v.Villarreal176

Trade Secrets178

International Protection for Intellectual Property179

REVIEWING：INTELLECTUAL PROPERTY AND INTERNET LAW180

TERMS AND CONCEPTS180

QUESTIONS AND CASE PROBLEMS181

LAW ON THE WEB183

LEGAL.RESEARCH EXERCISES ON THE WEB183

Chapter 9 Criminal Law and Cyber Crime184

Civil Law and Criminal Law184

Classification of Crimes185

Criminal Liability186

Types of Crimes188

CASE 9.1 United States v.Lyons190

Defenses to Criminal Liability193

Criminal Procedures198

EXTENDED CASE 9.2 Fellers v.United States198

CASE 9.3 Miranda v.Arizona200

Cyber Crime204

REVIEWING：CRIMINAL LAW AND CYBER CRIME207

TERMS AND CONCEPTS207

QUESTIONS AND CASE PROBLEMS208

LAW ON THE WEB210

LEGAL RESEARCH EXERCISES ON THE WEB210

FOCUS ON ETHICS：ETHICS AND TORTS AND CRIMES211

UNIT3 Contracts and E-Contracts215

Chapter 10 Nature and Terminology216

An Overview of Contract Law216

Elements of a Contract217

Types of Contracts218

CASE 10.1 Ardito v.City of Providence219

CASE 10.2 Gary Porter Construction v.Fox Construction，Inc.221

Quasi Contracts224

Interpretation of Contracts225

EXTENDED CASE 10.3 Wagner v.Columbia Pictures Industries，Inc.226

REVIEWING：NATURE AND TERMINOLOGY228

TERMS AND CONCEPTS229

QUESTIONS AND CASE PROBLEMS229

SPECIAL CASE ANALYSIS：WAGNER V.COLUMBIA PICTURES INDUSTRIES，INC.231

LAW ON THE WEB231

LEGAL RESEARCH EXERCISES ON THE WEB231

Chapter 11 Agreement232

Requirements of the Offer232

CASE 11.1 Lucy v. Zehmer233

CASE 11.2 Trell v.American Association of the Advancement of Science235

EXTENDED CASE 11.3 Baer v.Chase237

Termination of the Offer239

Acceptance242

Technology and Acceptance Rules246

REVIEWING：AGREEMENT246

TERMS AND CONCEPTS246

QUESTIONS AND CASE PROBLEMS247

LAW ON THE WEB249

LEGAL RESEARCH EXERCISES ON THE WEB249

Chapter 12 Consideration250

Elements of Consideration250

CASE 12.1 Hamer v.Sidway250

CASE 12.2 Barfield v.Commerce Bank，N.A.252

Adequacy of Consideration253

Agreements That Lack Consideration254

EXTENDED CASE 12.3 Blackmon v.Iverson255

Settlement of Claims257

Exceptions to the Consideration Requirement259

REVIEWING：CONSIDERATION261

TERMS AND CONCEPTS262

QUESTIONS AND CASE PROBLEMS262

LAW ON THE WEB264

LEGAL RESEARCH EXERCISES ON THE WEB264

Chapter 13 Capacity and Legality265

Contractual Capacity265

EXTENDED CASE 13.1 Yale Diagnostic Radiology v.Estate of Harun Fountain267

Legality271

CASE 13.2 Stultz v.Safety and Compliance Management，Inc.274

CASE 13.3 Thibodeau v. Comcast Corp.277

REVIEWING：CAPACITY AND LEGALITY282

TERMS AND CONCEPTS282

QUESTIONS AND CASE PROBLEMS283

LAW ON THE WEB285

LEGAL RESEARCH EXERCISES ON THE WEB285

Chapter 14 Mistakes，Fraud，and Voluntary Consent286

Mistakes286

EXTENDED CASE 14.1 Roberts v.Century Contractors，Inc.287

Fraudulent Misrepresentation290

CASE 14.2 Vokes v.Arthur Murray，Inc.290

Undue Influence295

Duress296

Adhesion Contracts and Unconscionability296

CASE 14.3 Simpson v.MSA of Myrtle Beach，Inc.297

REVIEWING：MISTAKES，FRAUD，AND VOLUNTARY CONSENT299

TERMS AND CONCEPTS300

QUESTIONS AND CASE PROBLEMS300

LAW ON THE WEB302

LEGAL RESEARCH EXERCISES ON THE WEB302

Chapter 15 The Statute of Frauds—Writing Requirement303

The Origins of the Statute of Frauds303

Contracts That Fall within the Statute of Frauds303

EXTENDED CASE 15.1 Sawyer v.Mills305

CASE 15.2 School-Link Technologies，Inc.v.Applied Resources，Inc.309

Sufficiency of the Writing310

The Parole Evidence Rule312

CASE 15.3 Yocca v.Pittsburgh Steelers Sports，Inc.313

The Statute of Frauds in the International Context316

REVIEWING：THE STATUTE OF FRAUDS—WRITING REQUIREMENT317

TERMS AND CONCEPTS318

QUESTIONS AND CASE PROBLEMS318

LAW ON THE WEB320

LEGAL RESEARCH EXERCISES ON THE WEB320

Chapter 16 Third Party Rights321

Assignments and Delegations321

CASE 16.1 Martha Graham School and Dance Foundation，Inc.v.Martha Graham Center of Contemporary Dance，Inc.323

Third Party Beneficiaries328

EXTENDED CASE 16.2 Midwestern Indemnity Co.v.Systems Builders，Inc.329

CASE 16.3 Revels v.Miss America Organization331

REVIEWING：THIRD PARTY RIGHTS333

TERMS AND CONCEPTS333

QUESTIONS AND CASE PROBLEMS334

LAW ON THE WEB336

LEGAL RESEARCH EXERCISES ON THE WEB336

Chapter 17 Performance and Discharge337

Conditions337

Discharge by Performance338

EXTENDED CASE 17.1 Jacob ＆ Youngs v.Kent339

CASE 17.2 Shah v.Cover-It，Inc.341

Discharge by Agreement344

Discharge by Operation of Law345

CASE 17.3 Facto v.Pantagis347

REVIEWING：PERFORMANCE AND DISCHARGE349

TERMS AND CONCEPTS350

QUESTIONS AND CASE PROBLEMS350

LAW ON THE WEB352

LEGAL RESEARCH EXERCISES ON THE WEB352

Chapter 18 Breach of Contract and Remedies353

Damages353

CASE 18.1 Hadley v.Baxendale355

EXTENDED CASE 18.2 Hanson v.Boeder357

Rescission and Restitution359

Specific Performance360

CASE 18.3 Stainbrook v.Low360

Reformation362

Recovery Based on Quasi Contract362

Election of Remedies363

Waiver of Breach364

Contract Provisions Limiting Remedies365

REVIEWING：BREACH OF CONTRACT AND REMEDIES366

TERMS AND CONCEPTS366

QUESTIONS AND CASE PROBLEMS366

LAW ON THE WEB369

LEGAL RESEARCH EXERCISES ON THE WEB369

Chapter 19 E-Contracts and E-Signatures370

Online Contract Formation370

CASE 19.1 Feldman v.Google，Inc.371

CASE 19.2 Mortgage Plus，Inc. v.DocMagic，Inc.374

E-Signatures376

EXTENDED CASE 19.3 Amber Chemical，Inc.v.Reilly Industries，Inc.378

The Uniform Electronic Transactions Act381

REVIEWING：E-CONTRACTS AND E-SIGNATURES383

TERMS AND CONCEPTS383

QUESTIONS AND CASE PROBLEMS384

LAW ON THE WEB386

LEGAL RESEARCH EXERCISES ON THE WEB386

FOCUS ON ETHICS：CONTRACT LAW AND THE APPLICATION OF ETHICS387

UNIT4 Domestic and International Sales and Lease Contracts391

Chapter20 The Formation of Sales and Lease Contracts392

The Uniform Commercial Code392

The Scope of Article 2—The Sale of Goods393

CASE 20.1 Hammer v.Thompson396

The Scope of Article 2A—Leases398

The Formation of Sales and Lease Contracts398

CASE 20.2 Sun Coast Merchandise Corp.v.Myron Corp.402

EXTENDED CASE 20.3 Jones v.Star CreditCorp.408

Contracts for the International Sale of Goods410

REVIEWING：THE FORMATION OF SALES AND LEASE CONTRACTS413

TERMS AND CONCEPTS413

QUESTIONS AND CASE PROBLEMS414

LAW ON THE WEB416

LEGAL RESEARCH EXERCISES ON THE WEB416

Appendix to Chapter 20：An Example of a Contract for the International Sale of Coffee417

Chapter 21 Title，Risk，and Insurable Interest421

Identification421

When Title Passes422

CASE 21.1 Empire Fire and Marine Insurance Co.v.Banc Auto，Inc.423

CASE 21.2 Lindholm v.Brant425

Risk of Loss427

EXTENDED CASE 21.3 Spray-Tek，Inc.v.Robbins Motor Transportation，Inc.428

Insurable Interest433

REVIEWING：TITLE，RISK，AND INSURABLE INTEREST434

TERMS AND CONCEPTS434

QUESTIONS AND CASE PROBLEMS434

SPECIAL CASE ANALYSIS：SPRAY-TEK，INC.V.ROBBINS MOTOR TRANSPORTATION，INc.436

LAW ON THE WEB436

LEGAL RESEARCH EXERCISES ON THE WEB436

Chapter 22 Performance and Breach of Sales and Lease Contracts437

Performance Obligations437

Obligations of the Seller or Lessor438

CASE 22.1 Maple Farms，Inc.v.City School District of Elmira441

Obligations of the Buyer or Lessee443

Anticipatory Repudiation443

Remedies of the Seller or Lessor445

Remedies of the Buyer or Lessee447

CASE 22.2 Jauregui v.Bobb’s Piano Sales ＆Service，Inc.448

EXTENDED CASE 22.3 Fitl v.Strek450

Additional Provisions Affecting Remedies452

Dealing with International Contracts452

REVIEWING：PERFORMANCE AND BREACH OF SALES AND LEASE CONTRACTS454

TERMS AND CONCEPTS455

QUESTIONS AND CASE PROBLEMS455

LAW ON THE WEB457

LEGAL RESEARCH EXERCISES ON THE WEB457

Chapter 23 Warranties and Product Liability458

Types of Warranties458

CASE 23.1 Shoop v.DaimlerChrysler Corp.461

CASE 23.2 Webster v.Blue Ship Tea Room，Inc.463

Overlapping Warranties465

Warranty Disclaimers and Limitations on Liability467

Product Liability468

Strict Product Liability469

EXTENDED CASE 23.3 Crosswhite v.Jumpking，Inc.472

Defenses to Product Liability475

REVIEWING：WARRANTIES AND PRODUCT LIABILITY477

TERMS AND CONCEPTS477

QUESTIONS AND CASE PROBLEMS477

LAW ON THE WEB480

LEGAL RESEARCH EXERCISES ON THE WEB480

FOCUS ON ETHICS：DOMESTIC AND INTERNATIONAL SALES AND LEASE CONTRACTS481

UNIT5 Negotiable Instruments485

Chapter 24 The Function and Creation of Negotiable Instruments486

Articles 3 and 4 of the UCC486

Types of Negotiable Instruments487

Requirements for Negotiability490

EXTENDED CASE 24.1 Gowin v.Granite Depot，LLC494

CASE 24.2 Foundation Property Investments，LLC v.CTP，LLC496

Factors Not Affecting Negotiability500

REVIEWING：THE FUNCTION AND CREATION OF NEGOTIABLE INSTRUMENTS500

TERMS AND CONCEPTS501

QUESTIONS AND CASE PROBLEMS501

LAW ON THE WEB503

LEGAL RESEARCH EXERCISES ON THE WEB503

Chapter 25 Transferability and Holder in Due Course504

Negotiation504

Indorsements505

Miscellaneous Indorsement Problems508

EXTENDED CASE 25.1 Hyatt Corp.v.Palm Beach National Bank509

CASE 25.2 Graves v.Johnson511

Holder versus Holder in Due Course512

Requirements for HDC Status513

CASE 25.3 Mid Wisconsin Bank v.Forsgard Trading，Inc.514

Holder through an HDC518

REVIEWING：TRANSFERABILITY AND HOLDER IN DUE COURSE519

TERMS AND CONCEPTS520

QUESTIONS AND CASE PROBLEMS520

LAW ON THE WEB522

LEGAL RESEARCH EXERCISES ON THE WEB522

Chapter 26 Liability，Defenses，and Discharge523

Signature Liability523

Warranty Liability530

CASE 26.1 Wachovia Bank，N.A.v.Foster Bancshares，Inc.532

Defenses533

EXTENDED CASE 26.2 Keesling v.T.E.K. Partners，LLC535

Discharge539

REVIEWING：LIABILITY，DEFENSES，AND DISCHARGE540

TERMS AND CONCEPTS541

QUESTIONS AND CASE PROBLEMS541

LAW ON THE WEB543

LEGAL RESEARCH EXERCISES ON THE WEB543

Chapter 27 Checks and Banking in the Digital Age544

Checks544

The Bank-Customer Relationship546

Honoring Checks546

CASE 27.1 Nesper v.Bank of America549

Accepting Deposits554

CASE 27.2 Bank One，N.A.v.Dunn557

EXTENDED CASE 27.3 NBT Bank，N.A.v.First National Community Bank559

Electronic Fund Transfers562

E-Money and Online Banking563

REVIEWING：CHECKS AND BANKING IN THE DIGITAL AGE566

TERMS AND CONCEPTS567

QUESTIONS AND CASE PROBLEMS567

SPECIAL CASE ANALYSIS：NBT BANK，N.A.v.FIRST NATIONAL COMMUNITY BANK568

LAW ON THE WEB569

LEGAL RESEARCH EXERCISES ON THE WEB569

FOCUS ON ETHICS：NEGOTIABLE INSTRUMENTS570

UNIT6 Creditors’ Rights and Bankruptcy573

Chapter 28 Creditors’ Rights and Remedies574

Laws Assisting Creditors574

CASE 28.1 Indiana Surgical Specialists v.Griffin576

Suretyship and Guaranty578

EXTENDED CASE 28.2 JSV，Inc.v.Hene Meat Co.，Inc.580

Protection for Debtors582

REVIEWING：CREDITORS’ RIGHTS AND REMEDIES582

TERMS AND CONCEPTS583

QUESTIONS AND CASE PROBLEMS583

LAW ON THE WEB585

LEGAL RESEARCH EXERCISES ON THE WEB585

Chapter 29 Secured Transactions586

The Terminology of Secured Transactions586

Creating a Security Interest587

Perfecting a Security Interest588

EXTENDED CASE 29.1 Corona Fruits ＆ Veggies，Inc.v.Frozsun Foods，Inc.592

The Scope of a Security Interest595

Priorities597

CASE 29.2 Heartland Bank v.National City Bank598

Rights and Duties of Debtors and Creditors602

Default602

CASE 29.3 Layne v.Bank One，Kentucky，N.A.604

REVIEWING：SECURED TRANSACTIONS607

TERMS AND CONCEPTS608

QUESTIONS AND CASE PROBLEMS608

SPECIAL CASE ANALYSIS：CORONA FRUITS ＆ VEGGIES，INC.V.FROZSUN FOODS，INC.609

LAW ON THE WEB610

LEGAL RESEARCH EXERCISES ON THE WEB610

Chapter 30 Bankruptcy Law611

Bankruptcy Proceedings611

Liquidation Proceedings612

EXTENDED CASE 30.1 Hebbring v.U.S.Trustee614

CASE 30.2 In re Mosley621

Reorganizations624

Bankruptcy Relief under Chapter 13 and Chapter 12626

CASE 30.3 In re Buis626

REVIEWING：BANKRUPTCY LAW631

TERMS AND CONCEPTS631

QUESTIONS AND CASE PROBLEMS631

LAW ON THE WEB634

LEGAL RESEARCH EXERCISES ON THE WEB634

FOCUS ON ETHICS：CREDITORS’ RIGHTS AND BANKRUPTCY635

UNIT7 Agency and Employment637

Chapter 31 Agency Formation and Duties638

Agency Relationships638

CASE 31.1 Alberty-Velez Corporacion de Puerto Rico640

Formation of the Agency Relationship642

CASE 31.2 Motorsport Marketing，Inc.v.Wiedmaier，Inc.643

Duties of Agents and Principals645

EXTENDED CASE 31.3 Cossels v.Fleet National Bank646

Rights and Remedies of Agendies and Principals648

REVIEWING：AGENCY FORMATION AND DUTIES650

TERMS AND CONCEPTS650

QUESTIONS AND CASE PROBLEMS650

LAW ON THE WEB652

LEGAL RESEARCH EXERCISES ON THE WEB652

Chapter 32 Liability to Third Parties and Termination653

Scope of Agent’s Authority653

CASE 32.1 Ermoian v.Desert Hospital655

Liability for Contracts657

Liability for Torts and Crimes659

CASE 32.2 In re Selheimer ＆ Co.660

EXTENDED CASE 32.3 Galvao v.G.R.Robert Construction Co.664

Termination of an Agency666

REVIEWING：LIABILITY TO THIRD PARTIES AND TERMINATION669

TERMS AND CONCEPTS669

QUESTIONS AND CASE PROBLEMS669

LAW ON THE WEB672

LEGAL RESEARCH EXERCISES ON THE WEB672

Chapter 33 Employment and Labor Law673

Employment at Will673

CASE 33.1 Wendeln v.The Beatrice Manor，Inc.675

Wage and Hour Laws676

CASE 33.2 Mims v.Starbucks Corp.678

Labor Unions681

Worker Health and Safety683

Income Security，Pension，and Health Plans685

Family and Medical Leave687

EXTENDED CASE 33.3 Nevada Department of Human Resources v.Hibbs688

Employee Privacy Rights689

Employment-Related Immigration Laws692

REVIEWING：EMPLOYMENT .AND LABOR LAW692

TERMS AND CONCEPTS693

QUESTIONS AND CASE PROBLEMS693

LAW ON THE WEB695

LEGAL RESEARCH EXERCISES ON THE WEB695

Chapter 34 Employment Discrimination696

Title Vll of the Civil Rights Act of 1964696

CASE 34.1 Arbaugh v.Y ＆ H Corp.697

EXTENDED CASE 34.2 Burlington Northern and Santa Fe Railway Co.v.White703

Discrimination Based on Age705

CASE 34.3 Cash Distributing Co.v.Neely707

Discrimination Based on Disability710

Defenses to Employment Discrimination712

Affirmative Action713

State Laws Prohibiting Discrimination715

REVIEWING：EMPLOYMENT DISCRIMINATION715

TERMS AND CONCEPTS716

QUESTIONS AND CASE PROBLEMS716

SPECIAL CASE ANALYSIS：BURLINGTON NORTHERN AND SANTA FE RAILWAY CO.V.WHITE718

LAW ON THE WEB718

LEGAL RESEARCH EXERCISES ON THE WEB719

FOCUS ON ETHICS：AGENCY AND EMPLOYMENT720

UNIT8 Business Organizations723

Chapter 35 Sole Proprietorships and Franchises724

Sole Proprietorships724

CASE 35.1 Garden City Boxing Club，Inc.v.Dominguez725

Franchises726

EXTENDED CASE 35.2 Kerl v.Dennis Rasmussen，Inc.729

Franchise Termination731

CASE 35.3 Chic Miller’s Chevrolet，Inc.v.General Motors Corp.731

REVIEWING：SOLE PROPRIETORSHIPS AND FRANCHISES733

TERMS AND CONCEPTS733

QUESTIONS AND CASE PROBLEMS734

LAW ON THE WEB736

LEGAL RESEARCH EXERCISES ON THE WEB736

Chapter 36 Partnerships and Limited Liability Partnerships737

Basic Partnership Concepts737

Partnership Formation739

Partnership Operation740

CASE 36.1 Moren v.Jax Restaurant744

Dissociation of a Partner746

CASE 36.2 Warnick v.Warnick747

Partnership Termination748

Limited Liability Partnerships750

Limited Partnerships751

EXTENDED CASE 36.3 In re Dissolution of Midnight Star Enterprises，L.P.753

REVIEWING：PARTNERSHIPS AND LIMITED LIABILITY PARTNERSHIPS755

TERMS AND CONCEPTS756

QUESTIONS AND CASE PROBLEMS756

LAW ON THE WEB758

LEGAL RESEARCH EXERCISES ON THE WEB758

Chapter 37 Limited Liability Companies and Special Business Forms759

Limited Liability Companies759

CASE 37.1 McFarland v.Virginia Retirement Services of Chesterfield，L.L.C.760

CASE 37.2 Kuhn v.Tumminelli763

Management of an LLC764

Dissociation and Dissolution of an LLC765

Special Business Forms765

EXTENDED CASE 37.3 SPW Associates，LLP v.Anderson766

REVIEWING：LIMITED LIABILITY COMPANIES AND SPECIAL BUSINESS FORMS768

TERMS AND CONCEPTS769

QUESTIONS AND CASE PROBLEMS769

LAW ON THE WEB772

LEGAL RESEARCH EXERCISES ON THE WEB772

Chapter 38 CORPORATIONS—Formation and Financing773

The Nature and Classification of Corporations773

CASE 38.1 Commonwealth v.Angelo TodescaCorp.775

EXTENDED CASE 38.2 Salt Lake Tribune Publishing Co.v.AT＆T Corp.778

Corporate Formation781

Defects in Formation and Corporate Status785

Corporate Powers786

Piercing the Corporate Veil786

CASE 38.3 In re Aqua Clear Technologies，Inc.787

Corporate Financing789

REVIEWING：CORPORATIONS—FORMATION AND FINANCING792

TERMS AND CONCEPTS792

QUESTIONS AND CASE PROBLEMS793

LAw ON THE WEB795

LEGAL RESEARCH EXERCISES ON THE WEB795

Chapter 39 CORPORATIONS—Directors，Officers，and Shareholders796

Roles of Directors and Officers796

EXTENDED CASE 39.1 Relational Investors，LLC v.Sovereign Bancorp，Inc.797

Duties and Liabilities of Directors and Officers801

CASE 39.2 Guth v.Loft，Inc.803

The Role of Shareholders805

Rights of Shareholders809

Liability of Shareholders812

CASE 39.3 Kaplan v.First Hartford Corp.813

REVIEWING：CORPORATIONS—DIRECTORS，OFFICERS，AND SHAREHOLDERS815

TERMS AND CONCEPTS815

QUESTIONS AND CASE PROBLEMS816

LAW ON THE WEB818

LEGAL RESEARCH EXERCISES ON THE WEB818

Chapter 40 CORPORATIONS—Merger，Consolidation，and Termination819

Merger and Consolidation819

CASE 40.1 Rodriguez v.Tech Credit Union Corp.820

Purchase of Assets823

Purchase of Stock824

Termination827

EXTENDED CASE 40.2 Parent v.Amity Autoworld，Ltd.827

CASE 40.3 Sartori v.S ＆ S Trucking，Inc.829

Major Business Forms Compared830

REVIEWING：CORPORATIONS—MERGER，CONSOLIDATION，AND TERMINATION833

TERMS AND CONCEPTS833

QUESTIONS AND CASE.PROBLEMS833

LAW ON THE WEB835

LEGAL RESEARCH EXERCISES ON THE WEB835

Chapter 41 CORPORATIONS—Securities Law and Corporate Governance836

The Securities and Exchange Commission836

The Securities Act of 1933837

The Securities Exchange Act of 1934845

CASE 41.1 SEC v.Texas Gulf Sulphur Co.846

EXTENDED CASE 41.2 Merrill Lynch，Pierce，Fenner ＆ Smith，Inc.v.Dabit847

CASE 41.3 United States v.Berger851

Corporate Governance853

State Securities Laws855

Online Securities Fraud857

REVIEWING：CORPORATIONS—SECURITIES LAW AND CORPORATE GOVERNANCE858

TERMS AND CONCEPTS859

QUESTIONS AND CASE PROBLEMS859

SPECIAL CASE ANALYSIS：MERRILL LYNCH，PIERCE，FENNER ＆SMITH，INC. V. DOBIT860

LAW ON THE WEB861

LEGAL RESEARCH EXERCISES ON THE WEB861

Chapter 42 Law for Small Business862

The Importance of Legal Counsel862

Selecting an Appropriate Business Form863

The Limited Liability Company866

EXTENDED CASE 42.1 Mixon v.Iberia Surgical，L.L.C.867

Creating the Business Entity868

Intellectual Property869

Raising Financial Capital871

CASE 42.2 InfoSAGE，Inc.v.Mellon Ventures，L.P.872

Buy-Sell Agreements and Key-Person Insurance873

Contract Law and Small Businesses874

CASE 42.3 DBL Distributing，Inc.v.1 Cache，L.L.C.875

Employment Issues876

REVIEWING：LAN FOR SMALL BUSINESS878

TERMS AND CONCEPTS878

QUESTIONS AND CASE PROBLEMS879

LAW ON THE WEB881

LEGAL RESEARCH EXERCISES ON THE WEB881

FOCUS ON ETHICS：BUSINESS ORGANIZATIONS882

UNIT9 Government Regulation885

Chapter 43 Administrative Law886

The Practical Significance of Administrative Law886

Agency Creation and Powers887

The Administrative Procedure Act888

EXTENDED CASE 43.1 FOx Television Stations，Inc.v.Federal Communications Commission888

CASE 43.2 Hemp Industries Association v.Drug Enforcement Administration892

Judicial Deference to Agency Decisions894

CASE 43.3 United States v.Mead Corporation895

Agency Enforcement and Adjudication896

Limitations on Agency Powers898

Public Accountability900

REVIEWING：ADMINISTRATIVE LAW901

TERMS AND CONCEPTS901

QUESTIONS AND CASE PROBLEMS902

LAW ON THE WEB904

LEGAL RESEARCH EXERCISES ON THE WEB904

Chapter 44 Consumer Law905

Deceptive Advertising905

EXTENDED CASE 44.1 Federal Trade Commission v.Verity International，Ltd.907

Labeling and Packaging Laws909

Sales909

Credit Protection910

CASE 44.2 Saunders v.Equifax Information Services，L.L.C.912

Consumer Health and Safety914

CASE 44.3 Abigail Alliance for Better Access to Developmental Drugs v.von Eschenbach915

REVIEWING：CONSUMER LAW917

TERMS AND CONCEPTS918

QUESTIONS AND CASE PROBLEMS918

LAW ON THE WEB920

LEGAL RESEARCH EXERCISES ON THE WEB920

Chapter 45 Environmental Law921

Common Law Actions921

Federal，State，and Local Regulation922

Air Pollution923

EXTENDED CASE 45.1 Environmental Defense v.Duke Energy Corp.926

Water Pollution928

CASE 45.2 S.D.Warren Co.v.Maine Board of Environmental Protection928

Toxic Chemicals931

CASE 45.3 Bates v.Dow Agrosciences，LLC932

Hazardous Wastes933

REVIEWING：ENVIRONMENTAL LAW934

TERMS AND CONCEPTS935

QUESTIONS AND CASE PROBLEMS935

LAW ON THE WEB937

LEGAL RESEARCH EXERCISES ON THE WEB937

Chapter 46 Antitrust Law938

The Sherman Antitrust Act938

Section 1 of the Sherman Act939

CASE 46.1 Continental T.V.，Inc.v.GTE Sylvania，In c.941

EXTENDED CASE 46.2 Leegin Creative Leather Products，Inc.v.PSKS，Inc.942

Section 2 of the Sherman Act944

The Clayton Act946

CASE 46.3 Illinois Tool Works，Inc.v.Independent Ink，Inc.948

Enforcement of Antitrust Laws950

Exemptions from Antitrust Law951

U.S.Antitrust Laws in the Global Context952

REVIEWING：ANTITRUST LAW953

TERMS AND CONCEPTS953

QUESTIONS AND CASE PROBLEMS954

SPECIAL CASE ANALYSIS：LEEGIN CREATIVE LEATHER PRODUCTS，INC.V.PSKS，INC.955

LAW ON THE WEB956

LEGAL RESEARCH EXERCISES ON THE WEB956

FOCUS ON ETHICS：GOVERNMENT REGULATION957

UNIT10 Property959

Chapter 47 Personal Property and Bailments960

Personal Property versus Real Property960

Fixtures961

Acquiring Ownership of Personal Property962

CASE 47.1 In re Estate of Piper963

Mislaid，Lost，and Abandoned Property965

EXTENDED CASE 47.2 United States v.One Hundred Sixty-Five Thousand Five Hundred Eighty Dollars（$165，580） in U.S.Currency967

Bailments969

Ordinary Bailments970

Special Types of Bailments973

CASE 47.3 Treiber ＆ Straub，Inc.v.United Parcel Service，Inc.974

REVIEWING：PERSONAL PROPERTY AND BAILMENTS977

TERMS AND CONCEPTS977

QUESTIONS AND CASE PROBLEMS977

LAW ON THE WEB979

LEGAL RESEARCH EXERCISES ON THE WEB979

Chapter 48 Real Property and Landlord-Tenant Relationships980

The Nature of Real Property980

Ownership and Other Interests in Real Property981

CASE 48.1 Biglane v.Under the Hill Corp.982

Transfer of Ownership986

CASE 48.2 Whitehead v.Humphrey989

CASE 48.3 Otwell v.Diversified Timber Services，Inc.993

Limitations on the Rights of Property Owners994

EXTENDED CASE 48.4 Kelo v.City of New London，Connecticut995

Landlord-Tenant Relationships997

REVIEWING：REAL PROPERTY AND LANDLORD-TENANT RELATIONSHIPS1000

TERMS AND CONCEPTS1000

QUESTIONS AND CASE PROBLEMS1001

SPECIAL CASE ANALYSIS：KELO V. CITY OF NEW LONDON，CONNECTICUT1002

LAW ON THE WEB1003

LEGAL RESEARCH EXERCISES ON THE WEB1003

FOCUS ON ETHICS：PROPERTY1004

UNIT11 Special Topics1007

Chapter 49 Insurance 1008Insurance Terminology and Concepts1008

EXTENDED CASE 49.1 Zurich American Insurance Co.v.AMB Industries，Inc.1011

The Insurance Contract1012

CASE 49.2 Cary v.United of Omaha Life Insurance Co.1015

CASE 49.3 Woo v.Fireman’s Fund Insurance Co.1017

Types of Insurance1018

REVIEWING：INSURANCE1023

TERMS AND CONCEPTS1023

QUESTIONS AND CASE PROBLEMS1023

LAW ON THE WEB1026

LEGAL RESEARCH EXERCISES ON THE WEB1026

Chapter 50 Wills and Trusts1027

Wills1027

CASE 50.1 Shaw Family Archives，Ltd.v.CMG Worldwide，Inc.1029

CASE 50.2 In re Estate of Pallister1032

Intestacy Laws1035

Trusts1037

EXTENDED CASE 50.3 Cinquemani v.Lazio1039

Other Estate-Planning Issues1043

REVIEWING：WILLS AND TRUSTS1044

TERMS AND CONCEPTS1044

QUESTIONS AND CASE PROBLEMS1045

LAW ON THE WEB1047

LEGAL RESEARCH EXERCISES ON THE WEB1047

Chapter 51 Professional Liability and Accountability1048

Potential Liability to Clients1048

EXTENDED CASE 51.1 In re Disciplinary Proceedings Against Inglimo1050

Potential Liability to Third Parties1052

CASE 51.2 Reznor v.J. Artist Management，Inc.1053

The Sarbanes-Oxley Act of 20021055

Potential Liability of Accountants under Securities Laws1058

Potential Criminal Liability of Accountants1061

Confidentiality and Privilege1062

REVIEWING：PROFESSIONAL LIABILITY AND ACCOUNTABILITY1063

TERMS AND CONCEPTS1064

QUESTIONS AND CASE PROBLEMS1064

LAW ON THE WEB1067

LEGAL RESEARCH EXERCISES ON THE WEB1067

Chapter 52 International Law in a Global Economy1068

International Law1068

Doing Business Internationally1071

Regulation of Specific Business Activities1072

CASE 52.1 Fuji Photo Film Co.v.International Trade Commission1073

U.S.Laws in a Global Context1076

CASE 52.2 Carnero v.Boston Scientific Corp.1076

EXTENDED 52.3 Khulumani v.Barclay National Bank，Ltd.1078

REVIEWING：INTERNATIONAL LAW IN A GLOBAL ECONOMY1080

TERMS AND CONCEPTS1080

QUESTIONS AND CASE PROBLEMS1080

SPECIAL CASE ANALYSIS：KHULUMANI V. BARCLAY NATIONAL BANK，LTD.1082

LAW ON THE WEB1082

LEGAL RESEARCH EXERCISES ON THE WEB1082

FOCUS ON ETHICS：SPECIAL TOPICS1083

Appendices1087

Appendix A How to Brief Cases and Analyze Case Problems1087

Appendix B The Constitution of the United States1090

Appendix C The Uniform Commercial Code1098

Appendix D The United Nations Convention on Contracts for the International Sale of Goods（Excerpts）1262

Appendix E The Uniform Partnership Act（Excerpts）1266

Appendix F The Revised Uniform Limited Partnership Act（Excerpts）1276

Appendix G The Revised Model Business Corporation Act（Excerpts）1286

Appendix H The Sarbanes-Oxley Act of 2002（Excerpts and Explanatory Comments）1296

Appendix I Sample Answers for End-of-Chapter Questions with Sample Answer1304

Glossary1317

Table of Cases1355

Index1367