Business Law Principles for Today’s Commercial Environment

by Twomey, David P.; Jennings, Marianne M.

• ISBN13: 9780324153552
• ISBN10: 0324153554
• Edition: 1st
• Format: Hardcover
• Copyright: 2003-03-14
• Publisher: South-Western College/West

Summary

This first edition, written by the same authors of the Anderson family of texts, re-positions Anderson's Business Law of the Regulatory Environment by incorporating all relevant UCC Sections into the text. As the new incarnation of Anderson, this book retains the tradition of accuracy, depth and contemporary perspective. Its cases are excerpted, relevant and interesting. The UCC coverage provides the student with the code language when reading applicable portions of the text. This text meets AACSB requirements and offers complete coverage for CPA preparation, featuring ethics, public policy and the Internet.

Table of Contents

Preface	xvii
About the Authors	xxi
Part 1 The Legal and Social Environment of Business	1	(264)
The Nature and Sources of Law	2	(9)
Nature of Law and Legal Rights	3	(4)
Legal Rights	3	(1)
Individual Rights	3	(1)
The Right of Privacy	3	(1)
Privacy and Technology	4	(3)
Sources of Law	7	(1)
Uniform State Laws	8	(1)
Classifications of Law	8	(3)
The Court System and Dispute Resolution	11	(20)
The Court System	12	(4)
The Types of Courts	12	(1)
The Federal Court System	12	(2)
State Court Systems	14	(2)
Court Procedure	16	(5)
Participants in the Court System	16	(1)
Which Law Applies---Conflicts of Law	16	(1)
Initial Steps in a Lawsuit	17	(3)
The Trial	20	(1)
Posttrial Procedures	21	(1)
Alternative Dispute Resolution (ADR)	21	(10)
Arbitration	21	(4)
Mediation	25	(1)
Med Arb	25	(1)
Reference to a Third Person	25	(1)
Association Tribunals	26	(1)
Summary Jury Trial	26	(1)
Rent-a-Judge	26	(1)
Minitrial	26	(1)
Contract Provisions	27	(1)
Disposition of Complaints and Ombudsmen	27	(4)
Business Ethics, Social Forces, and the Law	31	(26)
What Is Business Ethics?	32	(3)
The Law as the Standard for Business Ethics	32	(1)
The Notion of Universal Standards for Business Ethics	32	(1)
The Standard of Situational Business Ethics or Moral Relativism	33	(1)
The Business Stakeholder Standard of Behavior	33	(2)
Why Is Business Ethics Important?	35	(10)
The Importance of Trust	35	(1)
Business Ethics and Financial Performance	36	(1)
The Importance of a Good Reputation	37	(1)
Business Ethics and Business Regulation: Public Policy, Law, and Ethics	38	(7)
How to Recognize and Resolve Ethical Dilemmas	45	(12)
Categories of Ethical Behavior	45	(4)
Resolving Ethical Dilemmas	49	(8)
The Constitution as the Foundation of the Legal Environment	57	(28)
The U.S. Constitution and the Federal System	58	(1)
What a Constitution Is	58	(1)
The Branches of Government	58	(1)
The U.S. Constitution and the States	58	(5)
Delegated and Shared Powers	58	(1)
Other Powers	58	(1)
Federal Supremacy	59	(4)
Interpreting and Amending the Constitution	63	(2)
Conflicting Theories	63	(1)
Amending the Constitution	64	(1)
The Living Constitution	64	(1)
Federal Powers	65	(7)
The Power to Regulate Commerce	65	(5)
The Financial Powers	70	(2)
Constitutional Limitations on Government	72	(13)
Due Process	72	(1)
Equal Protection of the Law	73	(1)
Privileges and Immunities	74	(1)
Protection of the Person	74	(5)
The Bill of Rights and Business as a Person	79	(6)
Government Regulation of Competition and Prices	85	(21)
Power to Regulate Business	86	(1)
Regulation, Free Enterprise, and Deregulation	86	(1)
Regulation of Production, Distribution, and Financing	86	(1)
Regulation of Unfair Competition	87	(1)
Regulation of Markets and Competition	87	(13)
Regulation of Prices	87	(7)
Prevention of Monopolies and Combinations	94	(6)
Power to Protect Business	100	(6)
Remedies for Anticompetitive Behavior	102	(4)
Administrative Agencies	106	(21)
Nature of the Administrative Agency	107	(2)
Purpose of Administrative Agencies	107	(1)
Uniqueness of Administrative Agencies	107	(1)
Open Operation of Administrative Agencies	107	(2)
Legislative Power of the Agency	109	(6)
Agency's Regulations as Law	109	(1)
Agency Adoption of Regulations	110	(5)
Executive Power of the Agency	115	(1)
Enforcement or Execution of the Law	115	(1)
Constitutional Limitations on Administrative Investigation	115	(1)
Judicial Power of the Agency	115	(12)
The Agency as a Specialized Court	116	(1)
Punishment and Enforcement Powers of Agencies	117	(1)
Exhaustion of Administrative Remedy	117	(1)
Appeal from Administrative Action and Finality of Administrative Determination	117	(6)
Liability of the Agency	123	(4)
The Legal Environment of International Trade	127	(26)
General Principles	128	(7)
The Legal Background	128	(1)
International Trade Organizations, Conferences, and Treaties	129	(5)
Forms of Business Organizations	134	(1)
Governmental Regulation	135	(18)
Export Regulations	135	(1)
Protection of Intellectual Property Rights	136	(3)
Antitrust	139	(1)
Securities Regulation in an International Environment	140	(3)
Barriers to Trade	143	(3)
Relief Mechanisms for Economic Injury Caused by Foreign Trade	146	(1)
Expropriation	147	(1)
Government-Assisted Export Programs	147	(1)
The Foreign Corrupt Practices Act	148	(5)
Crimes	153	(28)
General Principles	154	(10)
Nature and Classification of Crimes	154	(1)
Basis of Criminal Liability	154	(1)
Responsibility for Criminal Acts	154	(9)
Indemnification of Crime Victims	163	(1)
White-Collar Crimes	164	(7)
Conspiracies	164	(1)
Crimes Related to Production, Competition, and Marketing	165	(1)
Money Laundering	165	(1)
Racketeering	166	(1)
Bribery	166	(1)
Commercial Bribery	167	(1)
Extortion and Blackmail	167	(1)
Corrupt Influence	167	(1)
Counterfeiting	168	(1)
Forgery	168	(1)
Perjury	168	(1)
False Claims and Pretenses	169	(1)
Bad Checks	169	(1)
Credit Card Crimes	169	(1)
Embezzlement	170	(1)
Obstruction of Justice---Sarbanes-Oxley	170	(1)
Corporate Fraud---Sarbanes-Oxley	171	(1)
Criminal Law and the Computer	171	(2)
What Is a Computer Crime?	171	(1)
The Computer as Victim	171	(1)
Unauthorized Use of Computers	172	(1)
Computer Raiding	172	(1)
Diverted Delivery by Computer	172	(1)
Economic Espionage by Computer	173	(1)
Electronic Fund Transfer Crimes	173	(1)
Circumventing Copyright Protection Devices via Computer	173	(1)
Criminal Procedure Rights for Businesses	173	(8)
Fourth Amendment Rights for Businesses	173	(2)
Fifth Amendment Self-Incrimination Rights for Businesses	175	(1)
Due Process Rights for Businesses	176	(5)
Torts	181	(29)
General Principles	182	(1)
What Is a Tort?	182	(1)
Tort and Crime Distinguished	182	(1)
The Types of Torts	182	(1)
Intentional Torts	183	(9)
False Imprisonment	183	(1)
Intentional Infliction of Emotional Distress	183	(1)
Invasion of Privacy	184	(2)
Defamation	186	(4)
Product Disparagement	190	(1)
Wrongful Interference with Contracts	190	(1)
Spoilation of Evidence	190	(1)
Trespass	190	(1)
Computer Torts	191	(1)
Negligence	192	(10)
Elements of Negligence	192	(6)
Defenses to Negligence	198	(3)
Liability for Negligence	201	(1)
Strict Liability	202	(1)
What Is Strict Liability?	202	(1)
Imposing Strict Liability	202	(1)
Tort Reform	202	(8)
Intellectual Property Rights and the Internet	210	(28)
Trademarks and Service Marks	211	(9)
Introduction	211	(1)
Registrable Marks	211	(4)
Trade Dress Protection	215	(1)
Limited Lanham Act Protection of Product Design	215	(2)
Injunction against Improper Use of Mark	217	(1)
Abandonment of Exclusive Right to Mark	217	(1)
Prevention of Dilution of Famous Marks	218	(1)
Internet Domain Names and Trademark Rights	218	(2)
Copyrights	220	(7)
Duration of Copyright	220	(1)
Copyright Notice	220	(1)
What Is Copyrightable?	221	(1)
Copyright Ownership and the Internet	221	(1)
Rights of Copyright Holders	221	(1)
Limitation on Exclusive Character of Copyright	221	(3)
Digital Millennium Copyright Act	224	(3)
Patents	227	(2)
Types, Duration, and Notice	227	(1)
Patentability and Exclusive Rights	228	(1)
Patentable Internet Business Methods	229	(1)
Secret Business Information	229	(1)
Trade Secrets	229	(1)
Loss of Protection	229	(1)
Defensive Measures	229	(1)
Criminal Sanctions	230	(1)
Protection of Computer Software and Mask Works	230	(8)
Copyright Protection of Computer Programs	230	(1)
Patent Protection of Programs	231	(1)
Trade Secrets	231	(1)
Restrictive Licensing	231	(1)
Semiconductor Chip Protection	232	(6)
Cyberlaw	238	(27)
Introduction to Cyberlaw	239	(1)
What Is Cyberlaw?	239	(1)
What Are the Issues in Cyberlaw?	239	(1)
Tort Issues in Cyberspace	239	(8)
Privacy Issues in Cyberlaw	239	(4)
Appropriation in Cyberspace	243	(1)
Defamation in Cybrspace	243	(4)
Contract Issues in Cyberspace	247	(3)
Formation of Contracts in Cyberspace	247	(2)
Misrepresentation and Fraud in Cyberspace	249	(1)
Intellectual Property Issues in Cyberspace	250	(1)
Criminal Law Issues in Cyberspace	251	(3)
Nature and Types of Cyberspace Crimes	251	(3)
Criminal Procedure and Rights in Cyberspace	254	(1)
Constitutional Restraints and Protections in Cyberspace	254	(6)
First Amendment Rights in Cyberspace	254	(3)
Commerce Clause Issues in Cyberspace	257	(1)
Due Process Issues in Cyberspace	258	(2)
Securities Law Issues in Cyberspace	260	(5)
Part 2 Contracts	265	(146)
Nature and Classes of Contracts: Contracting on the Internet	266	(11)
Nature of Contracts	267	(1)
Definition of a Contract	267	(1)
Elements of a Contract	267	(1)
Subject Matter of Contracts	267	(1)
Parties to a Contract	267	(1)
How a Contract Arises	268	(1)
Intent to Make a Binding Agreement	268	(1)
Freedom of Contract	268	(1)
Classes of Contracts	268	(4)
Formal and Informal Contracts	268	(1)
Express and Implied Contracts	268	(1)
Valid and Voidable Contracts and Void Agreements	269	(1)
Executed and Executory Contracts	269	(1)
Bilateral and Unilateral Contracts	270	(1)
Quasi Contracts	271	(1)
Contracting on the Internet	272	(5)
Formation of Contracts: Offer and Acceptance	277	(18)
Requirements of an Offer	278	(5)
Contractual Intention	278	(1)
Definiteness	279	(4)
Communication of Offer to Offeree	283	(1)
Termination of Offer	283	(2)
Revocation of Offer by Offeror	283	(1)
Counteroffer by Offeree	284	(1)
Rejection of Offer by Offeree	284	(1)
Lapse of Time	284	(1)
Death or Disability of Either Party	285	(1)
Subsequent Illegality	285	(1)
Acceptance of Offer	285	(10)
What Constitutes an Acceptance?	285	(1)
Privilege of Offeree	285	(1)
Effect of Acceptance	285	(1)
Nature of Acceptance	285	(1)
Who May Accept?	286	(1)
Manner and Time of Acceptance	286	(2)
Communication of Acceptance	288	(2)
Auction Sales	290	(5)
Capacity and Genuine Assent	295	(20)
Contractual Capacity	296	(6)
Contractual Capacity Defined	296	(1)
Minors	296	(4)
Mentally Incompetent Persons	300	(1)
Intoxicated Persons	301	(1)
Mistake	302	(3)
Unilateral Mistake	302	(1)
Mutual Mistake	303	(2)
Mistake in the Transcription or Printing of the Contract: Reformation	305	(1)
Deception	305	(5)
Intentional Misrepresentation	305	(1)
Fraud	306	(3)
Nondisclosure	309	(1)
Pressure	310	(5)
Undue Influence	310	(1)
Duress	310	(5)
Consideration	315	(14)
General Principles	316	(2)
Consideration Defined and Explained	316	(1)
Gifts	316	(1)
Adequacy of Consideration	316	(1)
Forbearance as Consideration	317	(1)
Illusory Promises	317	(1)
Third Parties	318	(1)
Special Situations	318	(4)
Preexisting Legal Obligation	318	(3)
Past Consideration	321	(1)
Moral Obligation	321	(1)
Exceptions to the Laws of Consideration	322	(7)
Exceptions to Consideration	322	(7)
Legality and Public Policy	329	(17)
General Principles	330	(6)
Effect of Illegality	330	(1)
Exceptions to Effect of Illegality	330	(1)
Partial Illegality	330	(1)
Crimes and Civil Wrongs	330	(1)
Good Faith and Fairness	331	(1)
Unconscionable Clauses	332	(4)
Agreements Affecting Public Welfare	336	(1)
Agreements Contrary to Public Policy	336	(1)
Gambling, Wagers, and Lotteries	336	(1)
Regulation of Business	337	(9)
Effect of Violation	337	(1)
Statutory Regulation of Contracts	337	(1)
Licensed Callings or Dealings	337	(1)
Contracts in Restraint of Trade	337	(1)
Agreements Not to Compete	338	(3)
Usurious Agreements	341	(5)
Writing, Electronic Forms, and Interpretation of Contracts	346	(20)
Statute of Frauds	347	(6)
Validity of Oral Contracts	347	(1)
Contracts that Must Be Evidenced by a Writing	347	(3)
Note or Memorandum	350	(3)
Effect of Noncompliance	353	(1)
Parol Evidence Rule	353	(2)
Exclusion of Parol Evidence	353	(1)
When the Parol Evidence Rule Does Not Apply	354	(1)
C. Rules of Construction and Interpretation	355	(11)
Intention of the Parties	355	(2)
Whole Contract	357	(1)
Contradictory and Ambiguous Terms	357	(3)
Implied Terms	360	(1)
Conduct and Custom	360	(1)
Avoidance of Hardship	360	(6)
Third Persons and Contracts	366	(13)
Third-Party Beneficiary Contracts	367	(2)
Definition	367	(1)
Modification or Termination of Intended Third-Party Beneficiary Contract	367	(1)
Limitations on Intended Third-Party Beneficiary	368	(1)
Incidental Beneficiaries	368	(1)
Assignments	369	(10)
Definitions	369	(1)
Form of Assignment	369	(1)
Notice of Assignment	369	(1)
Assignment of Right to Money	370	(1)
Nonassignable Rights	370	(1)
Rights of Assignee	371	(1)
Continuing Liability of Assignor	371	(1)
Liability of Assignee	372	(2)
Warranties of Assignor	374	(1)
Delegation of Duties	374	(5)
Discharge of Contracts	379	(17)
Conditions Relating to Performance	380	(1)
Classifications of Conditions	380	(1)
Discharge by Performance	381	(4)
Normal Discharge of Contracts	381	(1)
Nature of Performance	381	(1)
Time of Performance	382	(1)
Adequacy of Performance	383	(2)
Discharge by Action of Parties	385	(1)
Discharge by Unilateral Action	385	(1)
Discharge by Agreement	386	(1)
Discharge by External Causes	386	(1)
Discharge by Impossibility	386	(10)
Developing Doctrines	388	(3)
Temporary Impossibility	391	(1)
Discharge by Operation of Law	391	(5)
Breach of Contract and Remedies	396	(15)
What Constitutes a Breach of Contract?	397	(3)
Definition of Breach	397	(1)
Anticipatory Breach	397	(3)
Waiver of Breach	400	(1)
Cure of Breach by Waiver	400	(1)
Existence and Scope of Waiver	400	(1)
Reservation of Rights	400	(1)
Remedies for Breach of Contract	401	(3)
Remedies upon Anticipatory Repudiation	401	(1)
Remedies in General and the Measure of Damages	401	(1)
Monetary Damages	402	(1)
Rescission	403	(1)
Action for Specific Performance	403	(1)
Action for an Injunction	404	(1)
Reformation of Contract by a Court	404	(1)
Contract Provisions Affecting Remedies and Damages	404	(7)
Limitation of Remedies	404	(1)
Liquidated Damages	404	(1)
Limitation of Liability Clauses	405	(6)
Part 3 Sales and Leases of Goods	411	(142)
Personal Property and Bailments	412	(18)
Personal Property	413	(7)
Personal Property in Context	413	(1)
Title to Personal Property	413	(1)
Gifts	413	(3)
Finding of Lost Property	416	(1)
Occupation of Personal Property	417	(1)
Escheat	417	(2)
Multiple Ownership of Personal Property	419	(1)
Community Property	420	(1)
Bailments	420	(10)
Definition	420	(1)
Elements of Bailment	420	(1)
Nature of the Parties' Interests	421	(1)
Classification of Ordinary Bailments	421	(1)
Renting of Space Distinguished	421	(1)
Duties and Rights of the Bailee	422	(1)
Breach of Duty of Care: Burden of Proof	422	(1)
Liability for Defects in Bailed Property	422	(2)
Contract Modification of Liability	424	(1)
Extraordinary Bailments	425	(5)
Nature and Form of Sales	430	(26)
Nature and Legality	431	(11)
Subject Matter of Sales	431	(1)
Sale Distinguished from Other Transactions	432	(2)
Formation of Sales Contracts	434	(6)
Terms in the Formed Contract	440	(2)
Bulk Transfers	442	(1)
Form of Sales Contract	442	(5)
Amount	442	(1)
Nature of the Writing Required	443	(3)
Effect of Noncompliance	446	(1)
Exceptions to Requirement of a Writing	446	(1)
Noncode Requirements	447	(1)
Bill of Sale	447	(1)
Uniform Law for International Sales	447	(1)
Scope of the CISG	447	(1)
Irrevocable Offers	447	(1)
Statute of Frauds	448	(1)
The Mirror-Image Rule Returns under CISG	448	(1)
Leases of Goods	448	(8)
Types of Leases	449	(1)
Form of Lease Contract	449	(1)
Warranties	449	(2)
Irrevocable Promises: Commercial Finance Leases	451	(1)
Default	451	(5)
Legal Aspects of Supply Chain Management: Title and Risk of Loss	456	(29)
Types of Potential Problems and Transactions	457	(1)
Damage to Goods	457	(1)
Creditors' Claims	457	(1)
Insurance	457	(1)
Determining Rights: Identification of Goods	457	(1)
Existing Goods	457	(1)
Future Goods	458	(1)
Fungible Goods	458	(1)
Effect of Identification	458	(1)
Determining Rights: Passage of Title	458	(10)
Passage of Title Using Documents of Title	458	(3)
Passage of Title in Nonshipment Contracts	461	(1)
Passage of Title in Warehouse Arrangements	462	(1)
Passage of Title in Bailments and Other Forms of Possession	463	(2)
Delivery and Shipment Terms	465	(2)
Passage of Title in Shipment Contracts	467	(1)
Determining Rights: Risk of Loss	468	(6)
Risk of Loss in Nonshipment Contracts	468	(1)
Risk of Loss in Shipment Contracts	469	(1)
Damage to or Destruction of Goods	470	(1)
Common Carriers, Risk of Loss, and Liability	470	(3)
Effect of Seller's Breach in Risk of Loss	473	(1)
Determining Rights: Special Situations	474	(11)
Returnable Goods Transactions	474	(4)
Consignments and Factors	478	(1)
Reservation of a Security Interest	478	(2)
Self-Service Stores	480	(1)
Auction Sales	480	(5)
Product Liability: Warranties and Torts	485	(29)
General Principles	486	(1)
Theories of Liability	486	(1)
Nature of Harm	486	(1)
Who Is Liable in Product Liability	486	(1)
Express Warranties	487	(4)
Definition of Express Warranty	487	(1)
Form of Express Warranty	488	(1)
Time of Making Express Warranty	488	(1)
Seller's Opinion or Statement of Value	488	(1)
Warranty of Conformity to Description, Sample, or Model	489	(2)
Federal Regulation of Express Warranties	491	(1)
Effect of Breach of Express Warranty	491	(1)
Implied Warranties	491	(8)
Definition of Implied Warranty	492	(1)
Implied Warranties of Sellers	492	(1)
Additional Implied Warranties of Merchant Sellers	493	(3)
Implied Warranties in Particular Sales	496	(3)
Necessity of Defect	499	(1)
Warranties in the International Sale of Goods	499	(1)
Disclaimer of Warranties	499	(4)
Validity of Disclaimer	499	(4)
Particular Language for Disclaimers	503	(1)
Exclusion of Warranties by Examination of Goods	503	(1)
Postsale Disclaimer	503	(1)
Other Theories of Product Liability	503	(11)
Negligence	503	(1)
Fraud	503	(1)
Strict Tort Liability	503	(4)
Cumulative Theories of Liability	507	(7)
Obligations and Performance	514	(20)
General Principles	515	(3)
Obligation of Good Faith	515	(1)
Time Requirements of Obligations	515	(1)
Repudiation of the Contract	515	(1)
Adequate Assurance of Performance	515	(3)
Duties of the Parties	518	(16)
Seller's Duty to Deliver	518	(1)
Buyer's Duty upon Receipt of Goods	519	(3)
Buyer's Duty to Accept Goods	522	(3)
Buyer's Duty to Pay	525	(1)
When Duties Are Excused	525	(9)
Remedies for Breach of Sales Contracts	534	(19)
Statute of Limitations	535	(1)
Time Limits for Suits under the UCC	535	(1)
Time Limits for Other Suits	535	(1)
Remedies of the Seller	535	(3)
Seller's Lien	535	(1)
Seller's Remedy of Stopping Shipment	535	(1)
Resale by Seller	536	(1)
Cancellation by Seller	536	(1)
Seller's Action for Damages under the Market Price Formula	536	(1)
Seller's Action for Lost Profits	537	(1)
Other Types of Damages	537	(1)
Seller's Action for the Purchase Price	537	(1)
Seller's Nonsale Remedies	537	(1)
Remedies of the Buyer	538	(6)
Rejection of Improper Tender	538	(1)
Revocation of Acceptance	538	(1)
Buyer's Action for Damages for Nondelivery---Market Price Recovery	538	(1)
Buyer's Action for Damages for Nondelivery---Cover Price Recovery	539	(1)
Other Types of Damages	539	(2)
Action for Breach of Warranty	541	(1)
Cancellation by Buyer	542	(1)
Buyer's Resale of Goods	542	(1)
Action for Conversion or Recovery of Goods: Specific Performance	542	(1)
Nonsale Remedies of the Buyer	543	(1)
Contract Provisions on Remedies	544	(3)
Limitation of Damages	544	(3)
Down Payments and Deposits	547	(1)
Limitation of Remedies	547	(1)
Waiver of Defenses	547	(1)
Preservation of Defenses	547	(1)
Remedies in the International Sale of Goods	547	(6)
Remedies of the Seller	548	(1)
Remedies of the Buyer	548	(5)
Part 4 Negotiable Instruments	553	(82)
Kinds of Instruments, Parties, and Negotiability	554	(16)
Types of Negotiable Instruments and Parties	555	(3)
Definition	555	(1)
Kinds of Instruments	555	(2)
Parties to Instruments	557	(1)
Negotiability	558	(12)
Definition of Negotiability	558	(1)
Requirements of Negotiability	558	(7)
Factors Not Affecting Negotiability	565	(1)
Ambiguous Language	565	(1)
Statute of Limitations	566	(4)
Transfers of Negotiable Instruments and Warranties of Parties	570	(20)
Transfer of Negotiable Instruments	571	(1)
Effect of Transfer	571	(1)
Definition of Negotiation	571	(1)
How Negotiation Occurs: The Order or Bearer Character of an Instrument	571	(1)
How Negotiation Occurs: Bearer Instruments	571	(9)
How Negotiation Occurs: Order Instruments	573	(1)
Blank Indorsement	573	(3)
Special Indorsement	576	(1)
Qualified Indorsement	576	(1)
Restrictive Indorsement	576	(1)
Correction of Name by Indorsement	577	(1)
Bank Indorsement	577	(1)
Multiple Payees and Indorsements	578	(2)
Agent or Officer Indorsement	580	(1)
Missing Indorsement	580	(1)
Problems in Negotiation of Instruments	580	(4)
Forged and Unauthorized Indorsements	580	(1)
Quasi Forgeries: The Impostor Rule	581	(3)
Effect of Incapacity or Misconduct on Negotiation	584	(1)
Lost Instruments	584	(1)
Warranties in Negotiation	584	(6)
Warranties of Unqualified Indorser	584	(1)
Warranties of Other Parties	585	(5)
Liability of the Parties Under Negotiable Instruments	590	(17)
Parties to Negotiable Instruments: Rights and Liabilities	591	(5)
Types of Parties	591	(1)
Ordinary Holders and Assignees	591	(1)
The Holder in Due Course Protections	591	(5)
Defenses to Payment of a Negotiable Instrument	596	(6)
Classification of Defenses	596	(1)
Defenses against Assignee or Ordinary Holder	596	(1)
Limited Defenses Not Available against a Holder in Due Course	597	(1)
Universal Defenses Available against All Holders	597	(4)
Denial of Holder in Due Course Protection	601	(1)
Liability Issues: How Payment Rights Arise and Defenses Are Used	602	(5)
The Roles of Parties and Liability	602	(1)
Attaching Liability of the Primary Parties: Presentment	602	(1)
Dishonor and Notice of Dishonor	603	(4)
Checks and Funds Transfers	607	(28)
Checks	608	(8)
Nature of a Check	608	(1)
Certified Checks	609	(1)
Presentment for Obtaining Payment on a Check	610	(1)
Dishonor of a Check	611	(1)
The Customer-Bank Relationship	611	(1)
Stopping Payment of a Check	612	(3)
Wrongful Dishonor of a Check	615	(1)
Agency Status of Collecting Bank	615	(1)
Bank's Duty of Care	615	(1)
Liability of a Bank	616	(6)
Premature Payment of a Postdated Check	616	(1)
Payment over a Stop Payment Order	616	(3)
Payment on a Forged Signature of Drawer	619	(1)
Payment on a Forged or Missing Indorsement	619	(2)
Alteration of a Check	621	(1)
Unauthorized Collection of a Check	621	(1)
Time Limitations	622	(1)
Consumer Funds Transfers	622	(3)
Electronic Fund Transfers Act	622	(1)
Kinds of Electronic Fund Transfer Systems	623	(1)
Consumer Liability	623	(2)
Funds Transfers	625	(10)
What Law Governs?	625	(1)
Characteristics of Funds Transfers	625	(1)
Pattern of Funds Transfers	625	(1)
Scope of UCC Article 4A	625	(2)
Definitions	627	(1)
Form of Payment Order	627	(1)
Manner of Transmitting Payment Order	627	(1)
Security Procedure	628	(1)
Regulation by Agreement and Funds Transfer System Rule	628	(1)
Acceptance of Payment Order	628	(1)
Reimbursement of the Bank	628	(1)
Refund on Noncompletion of Transfer	629	(1)
Error in Funds Transfer	629	(1)
Liability for Loss	629	(6)
Part 5 Debtor-Creditor Relationships	635	(100)
Nature of the Debtor-Creditor Relationship	636	(19)
Creation of the Credit Relationship	637	(1)
Suretyship and Guaranty	637	(8)
Definitions	637	(1)
Indemnity Contract Distinguished	637	(1)
Creation of the Relationship	638	(1)
Rights of Sureties	639	(1)
Defenses of Sureties	640	(5)
Letters of Credit	645	(10)
Definition	645	(4)
Parties	649	(1)
Duration	649	(1)
Form	650	(1)
Duty of Issuer	650	(1)
Reimbursement of Issuer	650	(5)
Consumer Protection	655	(25)
General Principles	656	(5)
Expansion of Protection	656	(1)
Proof of Consumer Status	656	(1)
Who Is a Defendant in a Consumer Protection Suit?	656	(1)
Fault of the Business	657	(1)
Consumer Fault	657	(1)
Consumer Remedies	657	(3)
Civil and Criminal Penalties	660	(1)
Areas of Consumer Protection	661	(19)
Advertising	661	(1)
Seals of Approval	662	(1)
Labeling	662	(1)
Selling Methods	662	(5)
The Consumer Contract	667	(1)
Credit Cards	668	(1)
Payments	669	(1)
Preservation of Consumer Defenses	669	(1)
Product Safety	670	(1)
Credit, Collection, and Billing Methods	670	(3)
Protection of Credit Standing and Reputation	673	(1)
New Consumer Protections	674	(6)
Secured Transactions in Personal Property	680	(29)
Creation of Secured Transactions	681	(5)
Definitions	681	(1)
Creation of a Security Interest	681	(3)
Purchase Money Security Interest	684	(1)
The Nature and Classification of Collateral	684	(2)
Perfection of Secured Transactions	686	(7)
Perfection by Creditor's Possession	686	(1)
Perfection for Consumer Goods	686	(1)
Perfection for Health-Care Insurance Receivables	686	(1)
Automatic Perfection	686	(1)
Temporary Perfection	687	(1)
Perfection by Control	687	(1)
Perfection for Motor Vehicles	687	(1)
Perfection by Filing a Financing Statement	687	(5)
Loss of Perfection	692	(1)
Rights of Parties before Default	693	(1)
Status of Creditor before Default	693	(1)
Status of Debtor before Default	693	(1)
Statement of Account	693	(1)
Termination Statements	693	(1)
Correction Statements	694	(1)
Priorities	694	(7)
Unsecured Party versus Unsecured Party	694	(1)
Secured Party versus Unsecured Party	694	(1)
Secured Party versus Secured Party	695	(1)
Perfected Secured Party versus Secured Party	696	(1)
Perfected Secured Party versus Perfected Secured Party	696	(2)
Secured Party versus Buyer of Collateral from Debtor	698	(3)
Rights of Parties after Default	701	(8)
Creditor's Possession and Disposition of Collateral	701	(2)
Creditor's Retention of Collateral	703	(1)
Debtor's Right of Redemption	703	(1)
Disposition of Collateral	703	(1)
Postdisposition Accounting	704	(5)
Bankruptcy	709	(26)
Bankruptcy Law	710	(1)
The Federal Law	710	(1)
Kinds of Bankruptcy Proceedings	710	(1)
How Bankruptcy Is Declared	710	(3)
Declaration of Voluntary Bankruptcy	710	(2)
Declaration of Involuntary Bankruptcy	712	(1)
Automatic Stay	712	(1)
If the Creditors Are Wrong: Rights of Debtor in an Involuntary Bankruptcy	713	(1)
Administration of the Bankruptcy Estate	713	(6)
The Order of Relief	713	(1)
List of Creditors	714	(1)
Trustee in Bankruptcy	714	(1)
The Bankrupt's Estate	715	(1)
Voidable Transfers	715	(3)
Proof of Claim	718	(1)
Priority of Claims	718	(1)
Debtor's Duties and Exemptions	719	(1)
Debtor's Duties	719	(1)
Debtor's Exemptions	719	(1)
Debtor's Protection against Discrimination	720	(1)
Discharge in Bankruptcy	720	(8)
Denial of Discharge	720	(8)
Reorganization Plans under Chapter 11	728	(1)
Contents of the Plan	728	(1)
Confirmation of the Plan	728	(1)
Payment Plans under Chapter 13	728	(7)
Contents of the Plan	729	(1)
Confirmation of the Plan	729	(1)
Discharge of the Debtor	729	(6)
Part 6 Agency and Employment	735	(106)
Agency	736	(25)
Nature of the Agency Relationship	737	(2)
Definitions and Distinctions	737	(1)
Classification of Agents	738	(1)
Agency Coupled with an Interest	738	(1)
Creating the Agency	739	(1)
Authorization by Appointment	739	(1)
Authorization by Conduct	739	(1)
Agency by Ratification	739	(1)
Proving the Agency Relationship	740	(1)
Agent's Authority	740	(6)
Scope of Agent's Authority	740	(1)
Effect of Proper Exercise of Authority	741	(1)
Duty to Ascertain Extent of Agent's Authority	741	(1)
Limitations on Agent's Authority	742	(4)
Duties and Liabilities of Principal and Agent	746	(5)
Duties and Liabilities of Agent during Agency	746	(2)
Duties and Liabilities of Agent after Termination of Agency	748	(1)
Duties and Liabilities of Principal to Agent	748	(3)
Termination of Agency	751	(10)
Termination by Act of Parties	752	(1)
Termination by Operation of Law	752	(1)
Disability of the Principal under the UDPAA	752	(3)
Termination of Agency Coupled with an Interest	755	(1)
Protection of Agent from Termination of Authority	755	(1)
Effect of Termination of Authority	755	(6)
Third Persons in Agency	761	(21)
Liability of Agent to Third Person	762	(4)
Action of Authorized Agent of Disclosed Principal	762	(1)
Unauthorized Action	762	(1)
Disclosure of Principal	762	(2)
Assumption of Liability	764	(1)
Execution of Contract	764	(1)
Torts and Crimes	765	(1)
Liability of Principal to Third Person	766	(2)
Agent's Contracts	766	(1)
Payment to Agent	767	(1)
Agent's Statements	767	(1)
Agent's Knowledge	767	(1)
Liability of Principal for Torts and Crimes of Agent	768	(10)
Vicarious Liability for Torts and Crimes	768	(3)
Negligent Hiring and Retention of Employees	771	(4)
Negligent Supervision and Training	775	(1)
Agent's Crimes	775	(1)
Owner's Liability for Acts of an Independent Contractor	775	(2)
Enforcement of Claim by Third Person	777	(1)
Transactions with Sales Personnel	778	(4)
Soliciting and Contracting Agents	778	(4)
Regulation of Employment	782	(29)
The Employment Relationship	783	(6)
Characteristics of Relationship	783	(1)
Creation of Employment Relationship	783	(1)
Duration and Termination of Employment Contract	783	(4)
Duties of the Employee	787	(1)
Rights of the Employee	787	(2)
Labor Relations Laws	789	(8)
The National Labor Relations Act	789	(2)
National Labor Relations Board	791	(1)
Election Conduct	791	(1)
Union Activity on Private Property	791	(3)
Firing Employees for Union Activity	794	(2)
Duty of Employer to Bargain Collectively	796	(1)
Right to Work	796	(1)
Strike and Picketing Activity	796	(1)
Regulation of Internal Union Affairs	797	(1)
Pension Plans and Federal Regulation	797	(1)
ERISA	797	(1)
Unemployment Benefits, Family Leaves, and Social Security	798	(1)
Unemployment Compensation	798	(1)
Family and Medical Leaves of Absence	799	(1)
Social Security	799	(1)
Employees' Health and Safety	799	(2)
Standards	799	(1)
Employer Duties	800	(1)
Enforcement	800	(1)
State ``Right-to-Know'' Legislation	801	(1)
Compensation for Employees' Injuries	801	(2)
Common Law Status of Employer	801	(1)
Statutory Changes	802	(1)
Employee Privacy	803	(2)
Source of Privacy Rights	804	(1)
Monitoring Employee Telephone Conversations	804	(1)
E-Mail Monitoring	804	(1)
Property Searches	805	(1)
Drug and Alcohol Testing	805	(1)
Employer-Related Immigration Laws	805	(6)
Employer Liability	805	(1)
Employer Verification and Special Hiring Programs	806	(5)
Equal Employment Opportunity Law	811	(30)
Title VII of the Civil Rights Act of 1964, As Amended	812	(6)
Theories of Discrimination	812	(2)
The Equal Employment Opportunity Commission	814	(4)
Protected Classes and Exceptions	818	(10)
Race and Color	818	(1)
Religion	818	(1)
Sex	819	(1)
Sexual Harassment	819	(2)
National Origin	821	(2)
Title VII Exceptions	823	(3)
Affirmative Action and Reverse Discrimination	826	(2)
Other Equal Employment Opportunity (EEO) Laws	828	(8)
Equal Pay	828	(1)
Age Discrimination	828	(2)
Discrimination against Persons with Disabilities	830	(6)
Extraterritorial Employment	836	(5)
Part 7 Business Organizations	841	(188)
Types of Business Organizations	842	(16)
Principal Forms of Business Organizations	843	(1)
Individual Proprietorships	843	(1)
Partnerships, LLPs, and LLCs	843	(1)
Corporations	843	(1)
Specialized Forms of Organizations	844	(1)
Joint Ventures	844	(1)
Unincorporated Associations	844	(1)
Cooperatives	845	(1)
The Franchise Business Format	845	(13)
Definition and Types of Franchises	845	(1)
The Franchise Agreement	846	(2)
Special Protections under Federal Laws	848	(3)
Disclosure	851	(1)
Vicarious Liability Claims against Franchisors	851	(7)
Partnerships	858	(25)
Nature and Creation	859	(11)
Definition	859	(1)
Characteristics of a Partnership	859	(1)
Rights of Partners	859	(1)
Partnership Agreement	859	(1)
Determining the Existence of a Partnership	860	(7)
Partners as to Third Persons	867	(2)
Partnership Property	869	(1)
Tenancy in Partnership	869	(1)
Assignment of a Partner's Interest	870	(1)
Authority of Partners	870	(2)
Authority of Majority of Partners	870	(1)
Express Authority of Individual Partners	870	(1)
Customary Authority of Individual Partners	870	(1)
Limitations on Authority	870	(2)
Prohibited Transactions	872	(1)
Duties, Rights, and Liabilities of Partners	872	(3)
Duties of Partners	872	(1)
Rights of Partners as Owners	873	(1)
Liability of Partners and Partnership	874	(1)
Enforcement and Satisfaction of Creditors' Claims	874	(1)
Dissolution and Termination	875	(8)
Effect of Dissolution	875	(1)
Dissolution by Act of the Parties	875	(1)
Dissolution by Operation of Law	875	(1)
Dissolution by Decree of Court	876	(1)
Application under the RUPA	876	(1)
Notice of Dissolution	876	(1)
Winding Up Partnership Affairs	877	(1)
Distribution of Assets	877	(1)
Continuation of Partnership Business	877	(6)
LTDS., LLCS and LLPS	883	(20)
The Arrival of Partnership Limited Liability	884	(1)
Limited Partnerships	884	(3)
Formation of Limited Partnerships	884	(1)
Characteristics of Limited Partnerships	885	(2)
Limited Liability Companies	887	(11)
Characteristics of LLCs	887	(11)
LLCs and Other Entities	898	(1)
Limited Liability Partnerships	898	(5)
Extent of Limited Liability	898	(1)
Registration and Usage	899	(4)
Corporation Formation	903	(23)
Nature and Classes	904	(3)
The Corporation as a Person	904	(1)
Classifications of Corporations	905	(1)
Corporations and Governments	906	(1)
Corporate Powers	907	(2)
Particular Powers	907	(2)
Ultra Vires Acts	909	(1)
Creation and Termination of the Corporation	909	(8)
Promoters	909	(1)
Incorporation	910	(1)
Application for Incorporation	910	(1)
The Certificate of Incorporation	911	(1)
Proper and Defective Incorporation	911	(4)
Insolvency, Bankruptcy, and Reorganization	915	(1)
Forfeiture of Charter	915	(1)
Judicial Dissolution	916	(1)
Consolidations, Mergers, and Conglomerates	917	(9)
Definitions	917	(3)
Legality	920	(1)
Liability of Successor Corporations	920	(6)
Management of Corporations	926	(26)
Shareholders	927	(1)
Extent of Management Control by Shareholders	927	(1)
Meetings of Shareholders	927	(1)
Action without Meeting	927	(1)
Directors	927	(12)
Qualifications	928	(1)
Powers of Directors	928	(1)
Conflict of Interest	928	(3)
Meetings of Directors	931	(1)
Liability of Directors	931	(8)
Officers, Agents, and Employees	939	(5)
Powers of Officers	940	(1)
Liability Relating to Fiduciary Duties	940	(4)
Agents and Employees	944	(1)
Liability	944	(8)
Liability of Management to Third Persons	944	(1)
Criminal Liability	945	(1)
Indemnification of Officers, Directors, Employees, and Agents	946	(1)
Liability for Corporate Debts	947	(1)
Protection of Shareholders	947	(1)
Civil Liability of the Corporations	947	(5)
Shareholder Rights in Corporations	952	(22)
Corporate Stocks and Bonds	953	(1)
Nature of Stock	953	(1)
Certificates of Stock and Uncertificated Shares	953	(1)
Kinds of Stock	953	(1)
Characteristics of Bonds	954	(1)
Terms and Control	954	(1)
Acquisition of Shares	954	(3)
Nature of Acquisition	955	(1)
Statute of Frauds	955	(1)
Subscription	955	(1)
Transfer of Shares	955	(1)
Mechanics of Transfer	956	(1)
Effect of Transfer	956	(1)
Lost, Destroyed, and Stolen Share Certificates	957	(1)
Rights of Shareholders	957	(8)
Ownership Rights	957	(1)
Right to Vote	958	(1)
Preemptive Offer of Shares	959	(1)
Inspection of Books	960	(2)
Dividends	962	(1)
Capital Distribution	963	(1)
Shareholders' Actions	963	(2)
Liability of Shareholders	965	(9)
Limited Liability	965	(1)
Ignoring the Corporate Entity	965	(3)
Other Exceptions to Limited Liability	968	(1)
The Professional Corporation	969	(5)
Securities Regulation	974	(31)
State Regulation	975	(1)
State Blue Sky Laws	975	(1)
National Securities Markets Improvement Act	975	(1)
Federal Regulation	975	(24)
Federal Laws Regulating the Securities Industry	975	(2)
Definition of Security	977	(4)
Securities Act of 1933	981	(2)
Securities Exchange Act of 1934	983	(5)
Trading on Insider Information	988	(9)
Disclosure of Ownership and Short-Swing Profits	997	(1)
Tender Offers	998	(1)
Regulation of Accountants and Attorneys by the SEC	998	(1)
Industry Self-Regulation	999	(6)
Arbitration of Securities Disputes	1000	(5)
Accountants' Liability and Malpractice	1005	(24)
General Principles of Accountants' Liability	1006	(4)
What Constitutes Malpractice?	1006	(2)
Choice of Remedy	1008	(1)
The Environment of Accountants' Malpractice Liability	1009	(1)
Limitation of Liability	1009	(1)
Accountants' Liability to Third Parties: Beyond Privity	1010	(13)
Status of the Accountant	1010	(1)
The Conflicting Theories of Accountants' Third-Party Liability	1010	(5)
Nonliability Parties	1015	(5)
Defenses to Accountants' Liability: Contributory and Comparative Negligence of the Client or Third Party	1020	(1)
Accountants' Fraud Malpractice Liability to Third Persons	1021	(2)
Sarbanes-oxley Auditor and Accounting Related Provisions	1023	(6)
Auditor Independence	1023	(1)
Audit Committees	1024	(1)
Records Retention	1025	(4)
Part 8 Real Property and Estates	1029	(124)
Real Property	1030	(23)
Nature of Real Property	1031	(5)
Land	1031	(1)
Easements	1031	(3)
Profits	1034	(1)
Licenses	1034	(1)
Liens	1034	(1)
Fixtures	1034	(2)
Nature and Form of Real Property Ownership	1036	(1)
Fee Simple Estate	1036	(1)
Life Estate	1037	(1)
Future Interests	1037	(1)
Liability to Third Persons for Condition of Real Property	1037	(3)
Common Law Rule	1037	(1)
Modern Changes	1038	(2)
Recreational Use Statutes	1040	(1)
Co-Ownership of Real Property	1040	(1)
Multiple Ownership	1040	(1)
Condominiums	1040	(1)
Transfer of Real Property by Deed	1041	(5)
Definitions	1041	(1)
Classification of Deeds	1041	(1)
Execution of Deeds	1041	(1)
Delivery and Acceptance of Deeds	1041	(3)
Recording of Deeds	1044	(1)
Additional Protection of Buyers	1045	(1)
Grantor's Warranties	1045	(1)
Grantee's Covenants	1046	(1)
Other Methods of Transferring Real Property	1046	(1)
Eminent Domain	1046	(1)
Adverse Possession	1046	(1)
Mortgages	1046	(7)
Characteristics of a Mortgage	1046	(1)
Property Subject to Mortgage	1046	(1)
Form of Mortgage	1047	(1)
Creative Forms of Financing	1047	(1)
Recording or Filing of Mortgage	1047	(1)
Responsibilities of the Parties	1047	(1)
Transfer of Interest	1047	(1)
Rights of Mortgagee after Default	1048	(1)
Rights of Mortgagor after Default	1048	(5)
Environmental Law and Land Use Controls	1053	(22)
Statutory Environmental Law	1054	(6)
Air Pollution Regulation	1054	(1)
Water Pollution Regulation	1055	(1)
Solid Waste Disposal Regulation	1055	(1)
Environmental Quality Regulation	1056	(1)
Other Environmental Regulations	1057	(3)
State Environmental Regulation	1060	(1)
Enforcement of Environmental Laws	1060	(6)
Parties Responsible for Enforcement	1061	(1)
Criminal Penalties	1061	(1)
Civil Remedies	1061	(1)
Private Remedies: Nuisance	1062	(3)
Private Remedies: Due Diligence	1065	(1)
Land Use Controls	1066	(9)
Restrictive Covenants in Private Contracts	1066	(2)
Public Zoning	1068	(7)
Insurance	1075	(23)
The Insurance Contract	1076	(8)
The Parties	1076	(1)
Insurable Interest	1076	(2)
The Contract	1078	(1)
Antilapse and Cancellation Statutes and Provisions	1078	(1)
Modification of Contract	1079	(1)
Interpretation of Contract	1079	(3)
Burden of Proof	1082	(1)
Insurer Bad Faith	1082	(1)
Time Limitations on Insured	1083	(1)
Subrogation of Insurer	1083	(1)
Kinds of Insurance	1084	(14)
Business Liability Insurance	1085	(2)
Marine Insurance	1087	(2)
Fire and Homeowners Insurance	1089	(1)
Automobile Insurance	1090	(1)
Life Insurance	1090	(8)
Leases	1098	(18)
Creation and Termination	1099	(2)
Definition and Nature	1099	(1)
Creation of the Lease Relationship	1099	(1)
Classification of Tenancies	1099	(1)
Termination of Lease	1100	(1)
Notice of Termination	1101	(1)
Renewal of Lease	1101	(1)
Rights and Duties of Parties	1101	(6)
Possession	1101	(2)
Use of Premises	1103	(1)
Rent	1104	(1)
Repairs and Condition of Premises	1104	(1)
Improvements	1105	(1)
Taxes and Assessments	1105	(1)
Tenant's Deposit	1106	(1)
Protection from Retaliation	1106	(1)
Remedies of Landlord	1106	(1)
Liability for Injury on Premises	1107	(5)
Landlord's Liability to Tenant	1107	(4)
Landlord's Liability to Third Persons	1111	(1)
Tenant's Liability to Third Persons	1111	(1)
Transfer of Rights	1112	(4)
Transfer of Landlord's Reversionary Interest	1112	(1)
Tenant's Assignment of Lease and Sublease	1112	(4)
Decedents' Estates and Trusts	1116	(37)
Wills	1117	(5)
Definitions	1117	(1)
Parties to Will	1117	(3)
Testamentary Intent	1120	(1)
Form	1121	(1)
Modification of Will	1121	(1)
Revocation of Will	1121	(1)
Election to Take against the Will	1121	(1)
Disinheritance	1121	(1)
Special Kinds of Wills	1121	(1)
Administration of Decedents' Estates	1122	(9)
Definitions	1122	(1)
Probate of Will	1122	(1)
Will Contest	1122	(1)
When Administration Is Not Necessary	1122	(4)
Appointment of Personal Representative	1126	(1)
Proof of Claims against the Estate	1126	(1)
Construction of a Will	1126	(1)
Testate Distribution of an Estate	1126	(1)
Intestate Distribution of an Estate	1126	(5)
Trusts	1131	(8)
Definitions	1131	(1)
Creation of Trusts	1131	(1)
Nature of Beneficiary's Interest	1132	(1)
Powers of Trustee	1132	(1)
Duties of Trustee	1132	(1)
Remedies for Breach of Trust	1133	(1)
Termination of Trust	1133	(6)
Appendices
A How to Find the Law	1139	(3)
B The Constitution of the United States	1142	(11)
Index	1153