The Legal Environment of Business: Text and Cases, Eleventh Edition PDF by Frank B. Cross and Roger LeRoy Miller

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The Legal Environment of Business: Text and Cases, Eleventh Edition
by Frank B. Cross and Roger LeRoy Miller
The Legal Environment of Business: Text and Cases, Eleventh Edition

Contents
Unit One
The Foundations 1
Chapter 1
Law and Legal Reasoning 2
B usiness Activities and the Legal Environment 2
Sources of American Law 3
The Common Law Tradition 6
■ Ethics Today: Stare Decisis versus Spider-Man 9
Schools of Legal Thought 11
Classifications of Law 12
How to Find Primary Sources of Law 13
How to Read and Understand Case Law 16
Chapter 2
Business and the Constitution 26
The Constitutional Powers of Government 26
Classic Case 2.1 Heart of Atlanta Motel v. United States 28
Business and the Bill of Rights 30
■ Digital Update: Does Everyone Have a Constitutional Right
to Use Social Media? 32
Case 2.2 Animal Legal Defense Fund v. Wasden 33
Spotlight on Beer Labels
Case 2.3 Bad Frog Brewery, Inc. v. New York State
Liquor Authority 35
Due Process and Equal Protection 39
Privacy Rights 40
Chapter 3
Ethics in Business 44
Ethics and the Role of Business 44
■ Digital Update: Should Employees Have a “Right of
Disconnecting”? 47
Case 3.1 Al-Dabagh v. Case Western Reserve University 48
E thical Principles and Philosophies 49
S ources of Ethical Issues in Business Decisions 52
Case 3.2 Watson Laboratories, Inc. v. State of Mississippi 53
M aking Ethical Business Decisions 55
B usiness Ethics on a Global Level 58
■ Ethics Today: Applying the IDDR Framework 59
Appendix to Chapter 3: Costco Code of Ethics 64
Chapter 4
Courts and Alternative Dispute Resolution 65
The Judiciary’s Role in American Government 65
Basic Judicial Requirements 66
Case Analysis 4.1 Mala v. Crown Bay Marina, Inc. 68
Spotlight on Gucci
Case 4.2 Gucci America, Inc. v. Wang Huoqing 70
The State and Federal Court Systems 73
Case 4.3 Johnson v. Oxy USA, Inc. 74
■ Managerial Strategy: Should You Consent to Have Your
Business Case Decided by a U.S. Magistrate Judge? 76
Alternative Dispute Resolution 79
International Dispute Resolution 82
Chapter 5
Court Procedures 86
Procedural Rules 86
Pretrial Procedures 88
■ Digital Update: Using Social Media for Service of
Process 90
Case Analysis 5.1 Espresso Disposition Corp. 1 v. Santana
Sales & Marketing Group, Inc. 91
Case 5.2 Lewis v. Twenty-First Century Bean Processing 93
Case 5.3 Klipsch Group, Inc. v. ePRO E-Commerce Limited 96
The Trial 99
Posttrial Motions 101
The Appeal 102
Enforcing the Judgment 103
Unit One Task-Based Simulation 107
Unit One Application and Ethics:
“Arbitration, No Class Actions” 108
Unit Two
The Public and International
Environment 111
Chapter 6
Tort Law 112
The Basis of Tort Law 112
Intentional Torts against Persons 113
Case Analysis 6.1 Blake v. Giustibelli 115
■ Digital Update: Revenge Porn and Invasion of Privacy 119
Intentional Torts against Property 122
Unintentional Torts—Negligence 124
Case 6.2 Bogenberger v. Pi Kappa Alpha Corporation, Inc. 125
Defenses to Negligence 128
Spotlight on the Seattle Mariners
Case 6.3 Taylor v. Baseball Club of Seattle, LP 129
Chapter 7
Strict Liability and Product Liability 134
Strict Liability 134
Product Liability 135
Case Analysis 7.1 Schwarck v. Arctic Cat, Inc. 136
Strict Product Liability 137
Case 7.2 Stange v. Janssen Pharmaceuticals, Inc. 140
■ Managerial Strategy: When Is a Warning Legally
Bulletproof? 142
Defenses to Product Liability 143
Case 7.3 VeRost v. Mitsubishi Caterpillar Forklift America, Inc. 144
Chapter 8
Intellectual Property Rights 150
Trademarks and Related Property 150
Classic Case 8.1 The Coca-Cola Co. v. The Koke
Co. of America 150
Case 8.2 Headspace International, LLC v. Podworks Corp. 152
■ Global Insight: ALEVE versus FLANAX—Same Pain Killer,
But in Different Countries 154
Patents 157
Copyrights 159
Case Analysis 8.3 Winstead v. Jackson 161
Trade Secrets 164
International Protection for Intellectual Property 164
Chapter 9
Internet Law, Social Media, and Privacy 170
Internet Law 170
Spotlight on Internet Porn
Case 9.1 Hasbro, Inc. v. Internet Entertainment
Group, Ltd. 173
Copyrights in Digital Information 174
■ Digital Update: Riot Games, Inc., Protects Its Online Video
Game Copyrights 175
Case 9.2 BMG Rights Management (US), LLC v. Cox
Communications, Inc. 176
Social Media 178
Online Defamation 180
O ther Actions Involving Online Posts 181
Case Analysis 9.3 David v. Textor 182
Privacy 183
Chapter 10
Criminal Law and Cyber Crime 187
Civil Law and Criminal Law 187
Criminal Liability 189
■ Digital Update: Using Twitter to Cause Seizures—
A Crime? 189
Case 10.1 United States v. Crabtree 190
■ Managerial Strategy: The Criminalization of American
Business 192
Types of Crimes 193
Spotlight on White-Collar Crime
Case 10.2 People v. Sisuphan 195
Defenses to Criminal Liability 199
Criminal Procedures 201
Cyber Crime 204
Case Analysis 10.3 United States v. Warner 205
Chapter 11
International and Space Law 211
International Law 211
Case 11.1 Rubin v. Islamic Republic of Iran 215
Doing Business Internationally 217
■ Ethics Today: Is It Ethical (and Legal) to Brew
“Imported” Beer Brands Domestically? 217
R egulation of Specific Business Activities 219
Case 11.2 Changzhou Trina Solar Energy Co., Ltd. v.
United States International Trade Commission 220
International Dispute Resolution 222
U.S. Laws in a Global Context 223
Spotlight on International Torts
Case 11.3 Daimler AG v. Bauman 223
Space Law 225
Unit Two Task-Based Simulation 230
Unit Two Application and Ethics:
One of the Biggest Data Breaches Ever 231
Unit Three
The Commercial Environment 235
Chapter 12
Formation of Traditional and E-Contracts 236
An Overview of Contract Law 236
Agreement 240
Classic Case 12.1 Lucy v. Zehmer 240
Case Analysis 12.2 Hinkal v. Pardoe 245
E-Contracts 247
Consideration 250
Spotlight on Nike
Case 12.3 Already, LLC v. Nike, Inc. 253
Contractual Capacity 254
Legality 256
Case 12.4 Kennedy v. Shave Barber Co. 257
Form—The Writing Requirement 259
■ Managerial Strategy: Creating Liability Waivers That Are
Not Unconscionable 260
Third Party Rights 261
Chapter 13
Contract Performance, Breach, and
Remedies 265
Voluntary Consent 265
Case 13.1 McCullough v. Allstate Property and Casualty
Insurance Co. 267
Performance and Discharge 270
Classic Case 13.2 Jacob & Youngs v. Kent 271
■ Ethics Today: When Is Impossibility of Performance
a Valid Defense? 276
Damages 278
Spotlight on Liquidated Damages
Case 13.3 Kent State University v. Ford 280
E quitable Remedies for Contract Breach 281
Contract Provisions Limiting Remedies 283
Chapter 14
Sales and Lease Contracts 287
The Scope of Articles 2 (Sales) and 2A (Leases) 287
■ Digital Update: Taxing Web Purchases 289
The Formation of Sales and Lease Contracts 290
Case 14.1 Toll Processing Services, LLC v. Kastalon, Inc. 291
Classic Case 14.2 Jones v. Star Credit Corp. 296
Title, Risk, and Insurable Interest 297
■ Managerial Strategy: Commercial Use of Drones 299
Performance Obligations in Sales and Lease Contracts 302
R emedies for Breach of Sales and Lease Contracts 306
Spotlight on Baseball Cards
Case 14.3 Fitl v. Strek 309
Warranties 311
Contracts for the International Sale of Goods 313
Appendix to Chapter 14: An Example of a Contract for the
International Sale of Coffee 318
Chapter 15
Creditor-Debtor Relations and
Bankruptcy 322
Laws Assisting Creditors 322
Mortgages 326
Case 15.1 Banc of California, N.A. v. Madhok 328
Protection for Debtors 329
The Bankruptcy Code 329
Liquidation Proceedings 330
Case 15.2 In re Anderson 336
■ Ethics Today: Should There Be More Relief for Student
Loan Defaults? 339
Reorganizations 340
B ankruptcy Relief under Chapter 12 and Chapter 13 341
Case 15.3 In re Chamberlain 343
Unit Three Task-Based Simulation 349
Unit Three Application and Ethics:
Nondisclosure Agreements 350
Unit Four
The Business and Employment
Environment 353
Chapter 16
Small Businesses and Franchises 354
G eneral Considerations for Small Businesses 354
Sole Proprietorships 355
Case Analysis 16.1 A. Gadley Enterprises, Inc. v. Department of
Labor and Industry, Office of Unemployment Compensation
Tax Services 356
■ Digital Update: A Sole Proprietorship, Facebook Poker,
and Bankruptcy 358
Partnerships 359
Case 16.2 Harun v. Rashid 359
Franchises 367
Case 16.3 S&P Brake Supply, Inc. v. Daimler Trucks North
America, LLC 370
Chapter 17
Limited Liability Business Forms 375
The Limited Liability Company 375
Case 17.1 Hodge v. Strong Built International, LLC 377
LL C Management and Operation 379
■ Managerial Strategy: Can a Person Who Is Not a Member
of a Protected Class Sue for Discrimination? 380
Case 17.2 Schaefer v. Orth 381
Dissociation and Dissolution of an LL C 382
Case Analysis 17.3 Reese v. Newman 383
Limited Liability Partnerships 385
Limited Partnerships 386
Chapter 18
Corporations 392
Nature and Classification 392
■ Digital Update: Programs That Predict Employee
Misconduct 394
Case 18.1 Drake Manufacturing Co. v. Polyflow, Inc. 394
Case 18.2 Greenfield v. Mandalay Shores Community
Association 398
Corporate Formation and Powers 399
■ Global Insight: Does Cloud Computing Have a
Nationality? 403
Piercing the Corporate Veil 403
Corporate Directors and Officers 405
Classic Case 18.3 Guth v. Loft, Inc. 408
Shareholders 410
M ajor Business Forms Compared 415
Chapter 19
Agency Relationships 420
Agency Law 420
■ Ethics Today: Is It Fair to Classify Uber and Lyft Drivers
as Independent Contractors? 422
Formation of the Agency Relationship 423
Case 19.1 Riedel v. Akron General Health System 424
Duties, Rights, and Remedies of Agents and Principals 425
Agent’s Authority 429
Case 19.2 Dearborn West Village Condominium Association v.
Makki 430
L iability in Agency Relationships 432
■ Global Insight: Islamic Law and Respondeat Superior 434
Case Analysis 19.3 M.J. v. Wisan 435
Termination of an Agency 437
Chapter 20
Employment Law 442
Employment at Will 442
Case 20.1 Caterpillar, Inc. v. Sudlow 443
Wages, Hours, and Layoffs 445
■ Ethics Today: Is It Fair to Dock Employees’ Pay
for Bathroom Breaks? 446
Case 20.2 Encino Motorcars, LLC v. Navarro 446
Family and Medical Leave 448
Case 20.3 Ballard v. Chicago Park District 449
Health, Safety, and Income Security 450
Employee Privacy Rights 453
Chapter 21
Employment Discrimination 457
Title VII of the Civil Rights Act 457
■ Digital Update: Hiring Discrimination Based on Social
Media Posts 461
Case Analysis 21.1 Bauer v. Lynch 462
Case 21.2 Young v. United Parcel Service, Inc. 463
Case 21.3 Franchina v. City of Providence 467
Discrimination Based on Age 468
Discrimination Based on Disability 470
Discrimination Based on Military Status 472
Defenses to Employment Discrimination 473
Affirmative Action 474
Chapter 22
Immigration and Labor Law 478
Immigration Law 478
Federal Labor Laws 480
Union Organization 482
■ Managerial Strategy: Union Organizing Using a Company’s
E-Mail System 483
Case Analysis 22.1 Contemporary Cars, Inc. v. National Labor
Relations Board 483
Strikes and Lockouts 486
Unfair Labor Practices 487
Case 22.2 Staffing Network Holdings, LLC v. National Labor
Relations Board 488
Case 22.3 Unite Here! Local 5 v. National Labor Relations
Board 490
Unit Four Task-Based Simulation 494
Unit Four Application and Ethics:
Health Insurance and Small Business 495
Unit Five
The Regulatory Environment 499
Chapter 23
Administrative Agencies 500
The Practical Significance of Administrative Law 500
Agency Creation and Powers 501
Case 23.1 Simmons v. Smith 504
The Administrative Process 506
Case 23.2 Craker v. Drug Enforcement Administration 509
Judicial Deference to Agency Decisions 510
Case Analysis 23.3 Olivares v. Transportation Security
Administration 511
Public Accountability 513
Chapter 24
Consumer Protection 517
A dvertising, Marketing, and Sales 517
Case 24.1 POM Wonderful, LLC v. Federal Trade
Commission 518
■ Digital Update: Regulating “Native” Ads on the
Internet 521
Case 24.2 Haywood v. Massage Envy Franchising, LLC 522
Labeling and Packaging Laws 524
Protection of Health and Safety 525
Credit Protection 526
Case Analysis 24.3 Santangelo v. Comcast Corp. 528
Chapter 25
Environmental Law 534
Common Law Actions 534
Federal, State, and Local Regulations 535
Case Analysis 25.1 Friends of Animals v. Clay 535
■ Global Insight: Can a River Be a Legal Person? 538
Air Pollution 538
Case 25.2 United States v. O’Malley 540
Water Pollution 542
Case 25.3 United States v. Fox 543
Toxic Chemicals and Hazardous Waste 545
Chapter 26
Real Property and Land-Use Control 550
The Nature of Real Property 550
O wnership and Other Interests in Real Property 552
Case 26.1 In the Matter of the Estate of Nelson 553
Transfer of Ownership 557
Spotlight on Sales of Haunted Houses
Case 26.2 Stambovsky v. Ackley 558
Case Analysis 26.3 Montgomery County v. Bhatt 561
Limitations on the Rights of Property Owners 563
■ Ethics Today: Should Eminent Domain Be Used to Promote
Private Development? 564
Land-Use Control and Zoning 565
Chapter 27
Antitrust Law 571
The Sherman Antitrust Act 571
Section 1 of the Sherman Act 572
Section 2 of the Sherman Act 575
Case Analysis 27.1 McWane, Inc. v. Federal Trade
Commission 576
The Clayton Act 578
Case 27.2 Candelore v. Tinder, Inc. 579
E nforcement and Exemptions 582
Case 27.3 TransWeb, LLC v. 3M Innovative Properties Co. 583
U .S. Antitrust Laws in the Global Context 584
■ Digital Update: The European Union Issues Record Fines
against Google in Antitrust Case 586
Chapter 28
Investor Protection and Corporate
Governance 590
The Securities Act of 1933 590
■ Managerial Strategy: The SEC’s Pay-Ratio Disclosure
Rule 592
■ Digital Update: Investment Crowdfunding—Regulations
and Restrictions 594
Case 28.1 Omnicare, Inc. v. Laborers District Council
Construction Industry Pension Fund 596
The Securities Exchange Act of 1934 598
Classic Case 28.2 SEC v. Texas Gulf Sulphur Co. 599
Case 28.3 Singer v. Reali 603
State Securities Laws 605
Corporate Governance 606
Unit Five Task-Based Simulation 612
Unit Five Application and Ethics:
Climate Change 613
Appendices
A How to Brief Cases and Analyze Case Problems A –1
B A nswers to the Issue Spotters A–4
C S ample Answers for Business Case Problems with
Sample Answer A–10
Glossary G–1
Table of Cases TC–1
Index I–1

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