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Business Law Today: The Essentials Text and Summarized Case
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Beyond Our Borders
The Impact of Foreign Law on the United
States Supreme Court 17
The United States Looks into International
Bribery 58
Islamic Law Courts Abroad and at Home 74
“Libel Tourism” 102
The Anti-Counterfeiting Trade
Agreement 146
An Absence of Codifi ed Criminal Law:
The Pushtun Way 154
Russian Hackers to the Fore 183
The Statute of Frauds and International Sales
Contracts 258
Impossibility or Impracticability
of Performance in Germany 283
The CISG’s Approach to Revocation
of Acceptance 351
Protecting U.S. Consumers from CrossBorder Telemarketers 379
Islamic Law and Respondeat Superior 507
Sexual Harassment in Other Nations 540
Limited Liability Companies in Other
Nations 560
Derivative Actions in Other Nations 598
Corporate Governance in Other Nations 629
The European Union’s Expanding Role in
Antitrust Litigation 657
Arbitration versus Litigation 728
This feature provides
a perspective on
the global legal
environment,
international laws, and
laws of other nations
that relate to specifi c
legal concepts or topics
discussed in a chapter.
Landmark in the Law
Equitable Principles and Maxims 10
Marbury v. Madison (1803) 66
Palsgraf v. Long Island
Railroad Co. (1928) 116
The Digital Millennium
Copyright Act of 1998 142
Miranda v. Arizona (1966) 170
Hamer v. Sidway (1891) 224
The Statute of Frauds 254
Hadley v. Baxendale (1854) 287
The Uniform Commercial Code 301
MacPherson v. Buick Motor Co. (1916) 367
Federal Trade Commission Rule 433 416
Check Clearing in the 21st Century Act
(Check 21) 437
The Bankruptcy Reform Act of 2005 467
The Doctrine of Respondeat Superior 505
Limited Liability Company (LLC)
Statutes 558
The Securities and Exchange
Commission 612
The Sherman Antitrust Act of 1890 642
E
M
P
R
T
C
This feature discusses
seminal cases,
statutes, or other legal
developments that have
had signifi cant effects
on business law.
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(John Elk III/Lonely Planet Images/Getty Images)
The Essentials
Roger LeRoy Miller
Institute for University Studies
Arlington, Texas
Gaylord A. Jentz
Herbert D. Kelleher
Emeritus Professor in Business Law
MSIS Department
University of Texas at Austin
Business Law Today
TEXT & SUMMARIZED CASES
E-Commerce, Legal, Ethical,
and Global Environment
NINTH EDITION
Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States
© 2011, 2008 South-Western, Cengage Learning
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Computer, Inc. used herein under license.
© 2011, 2008 Cengage Learning. All Rights Reserved.
Cengage Learning WebTutor™ is a trademark of Cengage Learning.
Library of Congress Control Number: 2009937995
Student Edition ISBN-13: 978-0-324-78615-6
Student Edition ISBN-10: 0-324-78615-8
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Business Law Today
The Essentials
TEXT & SUMMARIZED CASES
E-Commerce, Legal, Ethical,
and Global Environment
NINTH EDITION
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Jack Calhoun
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v
Chapter 1 The Historical and
Constitutional Foundations 1
Chapter 2 Ethics and Business Decision Making 43
Chapter 3 Courts and
Alternative Dispute Resolution 64
Chapter 4 Torts and Cyber Torts 97
Chapter 5 Intellectual Property
and Internet Law 126
Chapter 6 Criminal Law 152
Chapter 7 Cyber Crime 179
Chapter 8 Contracts: Nature, Classifi cation,
Agreement, and Consideration 199
Chapter 9 Contracts: Capacity,
Legality, Assent, and Form 235
Chapter 10 Contracts: Third Party Rights,
Discharge, Breach, and Remedies 266
Chapter 11 Sales and Leases:
Formation, Title, and Risk 300
Chapter 12 Sales and Leases:
Performance and Breach 334
Chapter 13 Warranties, Product Liability,
and Consumer Law 358
Chapter 14 Negotiable Instruments 391
Chapter 15 Checks and Banking
in the Digital Age 424
Chapter 16 Security Interests, Creditors’
Rights, and Bankruptcy 449
Chapter 17 Agency 488
Chapter 18 Employment Law 514
Chapter 19 The Entrepreneur’s Options 552
Chapter 20 Corporations 574
Chapter 21 Investor Protection, Insider Trading,
and Corporate Governance 610
Chapter 22 Promoting Competition 640
Chapter 23 Personal Property,
Bailments, and Insurance 663
Chapter 24 Real Property
and Environmental Law 691
Chapter 25 International Law
in a Global Economy 717
Appendices
Appendix A How to Brief Cases
and Analyze Case Problems A–1
Appendix B The Constitution of the United States A–3
Appendix C Articles 2 and 2A of the
Uniform Commercial Code A–10
Appendix D The Sarbanes-Oxley Act of 2002
(Excerpts and Explanatory
Comments) A–43
Appendix E Sample Answers for End-of-Chapter
Hypothetical Questions with Sample
Answer A–49
Glossary G–1
Table of Cases TC–1
Index I–1
Appendices
Contents in Brief
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vii
Chapter 1 The Historical and
Constitutional Foundations 1
Business Activities and the Legal Environment 2
Sources of American Law 3
The Common Law Tradition 7
Classifi cations of Law 10
Landmark in the Law Equitable Principles and Maxims 10
The Constitutional Powers of Government 12
Heart of Atlanta Motel v. United States (1964) 13
Business and the Bill of Rights 15
Beyond Our Borders The Impact of Foreign Law on the United States
Supreme Court 17
Bad Frog Brewery, Inc. v. New York State Liquor Authority (1998) 19
Adapting the Law to the Online Environment The Supreme Court
Upholds a Law That Prohibits Pandering Virtual Child Pornography 21
In re Episcopal Church Cases (2009) 22
Due Process and Equal Protection 23
Privacy Rights 25
Reviewing . . . The Historical and Constitutional Foundations 27
Linking the Law to Management Dealing with Administrative Law 27
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Appendix to Chapter 1: Finding and Analyzing the Law 33
Finding Statutory and Administrative Law 33
Finding Case Law 34
Reading and Understanding Case Law 36
Chapter 2 Ethics and Business Decision Making 43
Business Ethics 44
United States v. Skilling (2009) 45
Preventing Legal Disputes 47
Ethical Transgressions by Financial Institutions 49
Approaches to Ethical Reasoning 51
Fog Cutter Capital Group, Inc. v. Securities and Exchange
Commission (2007) 53
Making Ethical Business Decisions 55
Practical Solutions to Corporate Ethics Questions 55
Business Ethics on a Global Level 56
Adapting the Law to the Online Environment Corporate Reputations
under Attack 57
Beyond Our Borders The United States Looks into International
Bribery 58
Reviewing . . . Ethics and Business Decision Making 59
Linking the Law to Managerial Accounting Managing a Company’s
Reputation 59
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 3 Courts and
Alternative Dispute Resolution 64
The Judiciary’s Role in American Government 64
Basic Judicial Requirements 65
Landmark in the Law Marbury v. Madison (1803) 66
Preventing Legal Disputes 70
Oregon v. Legal Services Corp. (2009) 71
The State and Federal Court Systems 72
Beyond Our Borders Islamic Law Courts Abroad and at Home 74
Following a State Court Case 77
Adapting the Law to the Online Environment The Duty to Preserve
Electronic Evidence for Discovery 81
Evans v. Eaton Corp. (2008) 83
The Courts Adapt to the Online World 84
Alternative Dispute Resolution 85
NCR Corp. v. Korala Associates, Ltd. (2008) 88
Reviewing . . . Courts and Alternative Dispute Resolution 91
Business Application To Sue or Not to Sue? 91
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Contents*
* Consult the inside front and back covers of this book for
easy reference to the many special features in this textbook.
Chapter 1
Chapter 2
Chapter 3
viii CONTENTS
Chapter 4 Torts and Cyber Torts 97
The Basis of Tort Law 98
Intentional Torts against Persons 99
Beyond Our Borders “Libel Tourism” 102
McClain v. Octagon Plaza, LLC (2008) 107
Intentional Torts against Property 109
Trustees of University of District of Columbia v. Vossoughi (2009) 111
Unintentional Torts (Negligence) 112
Preventing Legal Disputes 114
Landmark in the Law Palsgraf v. Long Island Railroad Co. (1928) 116
Strict Liability 118
Cyber Torts—Online Defamation 119
Fair Housing Council of San Fernando Valley v. Roommate.com,
LLC (2008) 120
Adapting the Law to the Online Environment Should CDA Immunity
Extend to Negligence Claims against MySpace? 120
Reviewing . . . Torts and Cyber Torts 121
Business Application How Important Is Tort Liability to Business? 121
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 5 Intellectual Property
and Internet Law 126
Trademarks and Related Property 127
The Coca-Cola Co. v. Koke Co. of America (1920) 127
Cyber Marks 132
George V Restauration S.A. v. Little Rest Twelve, Inc. (2009) 134
Preventing Legal Disputes 135
Patents 135
KSR International Co. v. Telefl ex, Inc. (2007) 136
Copyrights 137
Adapting the Law to the Online Environment Should the Law
Continue to Allow Business Process Patents? 138
Landmark in the Law The Digital Millennium Copyright Act of 1998 142
Trade Secrets 143
International Protection for Intellectual Property 144
Beyond Our Borders The Anti-Counterfeiting Trade Agreement 146
Reviewing . . . Intellectual Property and Internet Law 146
Linking the Law to Marketing Trademarks and Service Marks 147
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 6 Criminal Law 152
Civil Law and Criminal Law 152
Beyond Our Borders An Absence of Codifi ed Criminal Law: The
Pushtun Way 154
Criminal Liability 154
Preventing Legal Disputes 157
Types of Crimes 157
Defenses to Criminal Liability 163
Constitutional Safeguards and Criminal Procedures 165
United States v. Moon (2008) 167
Herring v. United States (2009) 169
Landmark in the Law Miranda v. Arizona (1966) 170
Criminal Process 171
Reviewing . . . Criminal Law 173
Business Application Determining How Much Force You Can Use to
Prevent Crimes on Business Premises 174
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 7 Cyber Crime 179
Computer Crime and the Internet 179
Cyber Crimes against Persons and Property 180
Beyond Our Borders Russian Hackers to the Fore 183
State v. Cline (2008) 185
Cyber Crimes in the Business World 185
The Spread of Spam 189
Cyber Crimes against the Community—Gambling in
Cyberspace 190
United States v. $6,976,934.65, Plus Interest Deposited into Royal Bank of
Scotland International (2009) 191
Fighting Cyber Crime 192
Adapting the Law to the Online Environment Can Students Who Gain
Unauthorized Access to an Online Antiplagiarism Service Be Subject to
the Computer Fraud and Abuse Act? 193
Reviewing . . . Cyber Crime 194
Business Application How Can You Protect against Identity Theft? 195
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 4
Chapter 5
Chapter 7
Chapter 6
CONTENTS ix
Chapter 8 Contracts: Nature, Classifi cation,
Agreement, and Consideration 199
An Overview of Contract Law 200
Types of Contracts 202
Uhrhahn Construction & Design, Inc. v. Hopkins (2008) 205
Agreement 208
Lucy v. Zehmer (1954) 209
Preventing Legal Disputes 211
T. W. Nickerson, Inc. v. Fleet National Bank (2009) 213
Agreement in E-Contracts 218
Consideration 223
Landmark in the Law Hamer v. Sidway (1891) 224
Reviewing . . . Contracts: Nature, Classifi cation, Agreement, and
Consideration 227
Linking the Law to Marketing Customer Relationship
Management 228
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 9 Contracts: Capacity,
Legality, Assent, and Form 235
Contractual Capacity 236
Legality 239
Comedy Club, Inc. v. Improv West Associates (2009) 241
Preventing Legal Disputes 242
Voluntary Consent 245
Inkel v. Pride Chevrolet-Pontiac, Inc. (2008) 247
Adapting the Law to the Online Environment Online Personals—
Fraud and Misrepresentation Issues 249
Rosenzweig v. Givens (2009) 251
Form 253
Landmark in the Law The Statute of Frauds 254
Beyond Our Borders The Statute of Frauds and International Sales
Contracts 258
Reviewing . . . Contracts: Capacity, Legality, Assent, and Form 260
Linking the Law to Business Communication When E-Mails Become
Enforceable Contracts 260
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 10 Contracts: Third Party Rights,
Discharge, Breach, and Remedies 266
Assignment and Delegation 267
Third Party Benefi ciaries 272
Revels v. Miss America Organization (2007) 274
Contract Discharge 275
Wisconsin Electric Power Co. v. Union Pacifi c Railroad Co. (2009) 277
Beyond Our Borders Impossibility or Impracticability of Performance
in Germany 283
Damages 284
Preventing Legal Disputes 286
Landmark in the Law Hadley v. Baxendale (1854) 287
Equitable Remedies 288
Drake v. Hance (2009) 291
Recovery Based on Quasi Contract 292
Election of Remedies 293
Reviewing . . . Contracts: Third Party Rights, Discharge, Breach,
and Remedies 293
Business Application What Do You Do When You Cannot Perform? 293
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 11 Sales and Lease:
Formation, Title, and Risk 300
The Scope of the UCC and Articles 2 (Sales)
and 2A (Leases) 301
Landmark in the Law The Uniform Commercial Code 301
Adapting the Law to the Online Environment The Thorny Issue of
Taxing Internet Sales 303
Jannusch v. Naffziger (2008) 304
The Formation of Sales and Lease Contracts 306
Preventing Legal Disputes 309
Glacial Plains Cooperative v. Lindgren (2009) 314
Jones v. Star Credit Corp. (1969) 316
Title and Risk of Loss 317
Contracts for the International Sale of Goods 322
Reviewing . . . Sales and Leases: Formation, Title, and Risk 324
Business Application Who Bears the Risk of Loss—the Seller or the
Buyer? 324
Appendix to Chapter 11: An Example of a Contract for the
International Sale of Coffee 330
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 9
Chapter 8 Chapter 10
Chapter 11
x CONTENTS
Chapter 12 Sales and Leases:
Performance and Breach 334
Performance Obligations 334
Obligations of the Seller or Lessor 335
Maple Farms, Inc. v. City School District of Elmira (1974) 338
Preventing Legal Disputes 341
Obligations of the Buyer or Lessee 341
Anticipatory Repudiation 342
Remedies of the Seller or Lessor 343
Remedies of the Buyer or Lessee 346
Houseman v. Dare (2009) 347
Fitl v. Strek (2005) 350
Beyond Our Borders The CISG’s Approach to Revocation of
Acceptance 351
Limitation of Remedies 351
Reviewing . . . Sales and Leases: Performance and Breach 352
Business Application What Can You Do When a Contract Is
Breached? 352
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 13 Warranties, Product Liability,
and Consumer Law 358
Warranties 359
Preventing Legal Disputes 360
Webster v. Blue Ship Tea Room, Inc. (1964) 361
Product Liability 366
Strict Product Liability 366
Landmark in the Law MacPherson v. Buick Motor Co. (1916) 367
Wyeth v. Levine (2009) 370
Adapting the Law to the Online Environment Should Video Games Be
Required to Have Warning Labels? 372
Defenses to Product Liability 372
Consumer Law 375
Federal Trade Commission v. QT, Inc. (2008) 376
Beyond Our Borders Protecting U.S. Consumers from Cross-Border
Telemarketers 379
Reviewing . . . Warranties, Product Liability, and Consumer Law 384
Linking the Law to Management Quality Control 385
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 14 Negotiable Instruments 391
Types of Instruments 392
Requirements for Negotiability 395
Preventing Legal Disputes 396
Foundation Property Investments, LLC v. CTP, LLC (2007) 399
Transfer of Instruments 401
Holder in Due Course (HDC) 405
Georg v. Metro Fixtures Contractors, Inc. (2008) 406
South Central Bank of Daviess County v. Lynnville National
Bank (2009) 407
Signature and Warranty Liability 409
Defenses, Limitations, and Discharge 414
Landmark in the Law Federal Trade Commission Rule 433 416
Reviewing . . . Negotiable Instruments 417
Business Application Pitfalls When Writing and Indorsing Checks 417
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 15 Checks and Banking
in the Digital Age 424
Checks 424
MidAmerica Bank, FSB v. Charter One Bank (2009) 426
The Bank-Customer Relationship 427
Bank’s Duty to Honor Checks 428
Auto-Owners Insurance Co. v. Bank One (2008) 431
Preventing Legal Disputes 433
Bank’s Duty to Accept Deposits 434
Landmark in the Law Check Clearing in the 21st Century Act
(Check 21) 437
Bank One, N.A. v. Dunn (2006) 439
Electronic Fund Transfers 440
E-Money and Online Banking 442
Reviewing . . . Checks and Banking in the Digital Age 443
Linking the Law to Economics Banking in a Period of Crisis 444
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 16 Security Interests,
Creditors’ Rights, and Bankruptcy 449
Security Interests in Personal Property 450
Preventing Legal Disputes 453
Chapter 12
Chapter 13
Chapter 14
Chapter 15
Chapter 16
CONTENTS xi
Hicklin v. Onyx Acceptance Corp. (2009) 458
Additional Laws Assisting Creditors 459
Capital Color Printing, Inc. v. Ahern (2008) 464
Laws Assisting Debtors 465
Bankruptcy Proceedings 466
Landmark in the Law The Bankruptcy Reform Act of 2005 467
In re Kuehn (2009) 471
Adapting the Law to the Online Environment The Debt That Never
Goes Away—It’s Discharged in Bankruptcy But Still on the Debtor’s
Credit Report 477
Reviewing . . . Security Interests, Creditors’ Rights, and Bankruptcy 482
Linking the Law to Economics The Effects of Bankruptcy Law on
Consumers and Businesses 482
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 17 Agency Relationships in Business 488
Agency Relationships 489
Lopez v. El Palmar Taxi, Inc. (2009) 491
How Agency Relationships Are Formed 492
Duties of Agents and Principals 494
Preventing Legal Disputes 496
Agent’s Authority 497
Ermoian v. Desert Hospital (2007) 499
Liability in Agency Relationships 500
Warner v. Southwest Desert Images, LLC (2008) 503
Landmark in the Law The Doctrine of Respondeat Superior 505
How Agency Relationships Are Terminated 506
Beyond Our Borders Islamic Law and Respondeat Superior 507
Reviewing . . . Agency 508
Business Application How Can an Employer Use Independent
Contractors? 509
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 18 Employment Law 514
Employment at Will 514
Wage and Hour Laws 516
Layoffs 518
Family and Medical Leave 519
Worker Health and Safety 520
Income Security 521
Employee Privacy Rights 524
Preventing Legal Disputes 526
Immigration Law 528
Castellanos-Contreras v. Decatur Hotels, LLC (2009) 531
Employment Discrimination 531
Beyond Our Borders Sexual Harassment in Other Nations 540
Sprint/United Management Co. v. Mendelsohn (2008) 541
Rohr v. Salt River Project Agricultural Improvement and Power
District (2009) 543
Reviewing . . . Employment Law 546
Linking the Law to Management Human Resource Management
Comes to the Fore 547
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 19 The Entrepreneur’s Options 552
Major Business Forms 552
1515 North Wells, LP v. 1513 North Wells, LLC (2009) 555
Allen v. Dackman (2009) 556
Landmark in the Law Limited Liability Company Statutes 558
Beyond Our Borders Limited Liability Companies in Other Nations 560
Special Business Forms 561
Private Franchises 564
Adapting the Law to the Online Environment Satisfying the FTC’s
Franchise Rule in the Internet Age 566
LJL Transportation, Inc. v. Pilot Air Freight Corp. (2009) 567
Preventing Legal Disputes 568
Reviewing . . . The Entrepreneur’s Options 568
Business Application What Problems Can a Franchisee Anticipate? 568
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 20 Corporations 574
Corporate Nature and Classifi cation 575
Adapting the Law to the Online Environment Economic Recession
Fuels the Internet Taxation Debate 577
Williams v. Stanford (2008) 580
Corporate Formation and Powers 581
Brown v. W.P. Media, Inc. (2009) 583
Corporate Financing 584
Corporate Management—Directors and Offi cers 586
Preventing Legal Disputes 588
Guth v. Loft, Inc. (1939) 590
Chapter 17
Chapter 18
Chapter 19
Chapter 20
xii CONTENTS
Corporate Ownership—Shareholders 592
Beyond Our Borders Derivative Actions in Other Nations 598
Mergers and Acquisitions 598
Termination 601
Reviewing . . . Corporations 603
Linking the Law to Finance Sources of Funds 603
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 21 Investor Protection, Insider Trading,
and Corporate Governance 610
Securities Act of 1933 611
Landmark in the Law The Securities and Exchange Commission 612
Preventing Legal Disputes 613
Securities Exchange Act of 1934 618
Adapting the Law to the Online Environment Corporate Blogs and
Tweets Must Comply with the Securities Exchange Act 619
Securities and Exchange Commission v. Texas Gulf Sulphur Co. (1968) 620
Stoneridge Investment Partners, LLC v. Scientifi c-Atlanta, Inc. (2008) 622
Stark Trading v. Falconbridge, Ltd. (2009) 626
State Securities Laws 627
Corporate Governance 628
Beyond Our Borders Corporate Governance in Other Nations 629
Online Securities Fraud 632
Reviewing . . . Investor Protection, Insider Trading, and Corporate
Governance 634
Linking the Law to Taxation The Tax Consequences of Deleveraging
during an Economic Crisis 634
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 22 Promoting Competition 640
The Sherman Antitrust Act 641
Landmark in the Law The Sherman Antitrust Act of 1890 642
Section 1 of the Sherman Act 643
Leegin Creative Leather Products, Inc. v. PSKS, Inc. (2007) 646
Section 2 of the Sherman Act 646
Preventing Legal Disputes 648
Weyerhaeuser Co. v. Ross-Simmons Hardwood Lumber Co. (2007) 649
The Clayton Act 650
Chicago Bridge & Iron Co. v. Federal Trade Commission (2008) 653
Enforcement and Exemptions 654
U.S. Antitrust Laws in the Global Context 655
Beyond Our Borders The European Union’s Expanding Role in Antitrust
Litigation 657
Reviewing . . . Promoting Competition 657
Business Application How Can You Avoid Antitrust Problems? 658
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 23 Personal Property,
Bailments, and Insurance 663
Property Ownership 664
Acquiring Ownership of Personal Property 665
In re Estate of Piper (1984) 667
Mislaid, Lost, and Abandoned Property 669
Bailments 670
Preventing Legal Disputes 671
LaPlace v. Briere (2009) 675
Insurance 677
Woo v. Fireman’s Fund Insurance Co. (2007) 684
Reviewing . . . Personal Property, Bailments, and Insurance 685
Business Application How Can You Manage Risk in Cyberspace? 685
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 24 Real Property
and Environmental Law 691
The Nature of Real Property 691
Preventing Legal Disputes 693
Ownership Interests in Real Property 693
Roman Catholic Church of Our Lady of Sorrows v. Prince Realty
Management, LLC (2008) 695
Transfer of Ownership 696
Drake v. Walton County (2009) 699
Leasehold Estates 700
Landlord-Tenant Relationships 701
Environmental Law 703
Entergy Corp. v. Riverkeeper, Inc. (2009) 707
Reviewing . . . Real Property and Environmental Law 711
Linking the Law to Economics Eminent Domain 711
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Chapter 21
Chapter 22
Chapter 23
Chapter 24
CONTENTS xiii
Chapter 25 International Law
in a Global Economy 717
International Law—Sources and Principles 718
Doing Business Internationally 720
Regulation of Specifi c Business Activities 722
Fuji Photo Film Co. v. International Trade Commission (2007) 723
United States v. Inn Foods, Inc. (2009) 724
Commercial Contracts in an International Setting 726
Preventing Legal Disputes 726
Beyond Our Borders Arbitration versus Litigation 728
Payment Methods for International Transactions 728
U.S. Laws in a Global Context 729
Khulumani v. Barclay National Bank, Ltd. (2007) 731
Reviewing . . . International Law in a Global Economy 732
Linking the Law to Marketing Going Global 733
Key Terms • Chapter Summary • ExamPrep • For Review •
Hypothetical Scenarios and Case Problems • Critical Thinking and
Writing Assignments • Practical Internet Exercises
Appendices
Appendix A How to Brief Cases
and Analyze Case Problems A–1
Appendix B The Constitution of the United States A–3
Appendix C Articles 2 and 2A of the Uniform
Commercial Code A–10
Appendix D The Sarbanes-Oxley Act of 2002 (Excerpts
and Explanatory Comments) A–43
Appendix E Sample Answers for End-of-Chapter
Hypothetical Questions with Sample
Answer A–49
Glossary G–1
Table of Cases TC–1
Index I–1
Chapter 25
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