Smith and Roberson’s Business Law

by Mann, Richard A.; Roberts, Barry S.

• ISBN13: 9780324204865
• ISBN10: 0324204868
• Edition: 13th
• Format: Hardcover
• Copyright: 2005-03-01
• Publisher: South-Western College/West

Summary

SMITH AND ROBERSON'S BUSINESS LAW is an updated classic that features a comprehensive presentation of business law topics, end-of-chapter cases with edited facts and decisions to preserve the language of the court, and topics that reflect AACSB guidelines. This is the most complete and credible business law book available, and has a long tradition of accuracy and comprehensiveness, while keeping up-to-date edition after edition by consistently incorporating the latest issues and topics.

Table of Contents

Preface	xiv
Table of Cases	xvii
Table of Illustrations	xxi
PART 1 The Legal Environment of Business	1	(156)
Introduction to Law	2	(12)
Nature of Law	2	(2)
Classification of Law	4	(1)
Sources of Law	5	(4)
Legal Analysis	9	(5)
Chapter Summary	10	(1)
Case	11	(2)
Questions	13	(1)
Business Ethics and the Social Responsibility of Business	14	(23)
Law versus Ethics	15	(1)
Ethical Theories	15	(3)
Ethical Standards in Business	18	(1)
Ethical Responsibilities of Business	19	(7)
Chapter Summary	22	(2)
Cases	24	(1)
Questions	24	(1)
Problems	24	(2)
Business Ethics Cases	26	(11)
Civil Dispute Resolution	37	(25)
The Court System	37	(1)
The Federal Courts	37	(2)
State Courts	39	(1)
Jurisdiction	40	(1)
Subject Matter Jurisdiction	40	(2)
Jurisdiction over the Parties	42	(2)
Civil Dispute Resolution	44	(1)
Civil Procedure	44	(4)
Alternative Dispute Resolution	48	(14)
Chapter Summary	51	(2)
Cases	53	(6)
Questions	59	(1)
Problems	59	(3)
Constitutional Law	62	(22)
Basic Principles of Constitutional Law	63	(1)
Powers of Government	64	(2)
Limitations on Government	66	(18)
Chapter Summary	71	(1)
Cases	72	(10)
Questions	82	(1)
Problems	82	(2)
Administrative Law	84	(15)
Operation of Administrative Agencies	85	(2)
Limits on Administrative Agencies	87	(12)
Chapter Summary	90	(1)
Cases	90	(7)
Questions	97	(1)
Problems	97	(2)
Criminal Law	99	(16)
Nature of Crimes	99	(3)
White-Collar Crime	102	(1)
Crimes Against Business	103	(2)
Defenses to Crimes	105	(1)
Criminal Procedure	105	(10)
Chapter Summary	108	(1)
Cases	109	(3)
Questions	112	(1)
Problems	112	(3)
Intentional Torts	115	(21)
Intent	116	(1)
Harm to the Person	116	(2)
Harm to the Right of Dignity	118	(2)
Harm to Property	120	(1)
Harm to Economic Interests	121	(1)
Defenses to Intentional Torts	122	(14)
Chapter Summary	123	(1)
Cases	124	(8)
Questions	132	(1)
Problems	133	(3)
Negligence and Strict Liability	136	(21)
Negligence	136	(1)
Breach of Duty of Care	137	(4)
Proximate Cause	141	(1)
Injury	142	(1)
Defenses to Negligence	142	(1)
Strict Liability	143	(1)
Activities Giving Rise to Strict Liability	144	(1)
Defenses to Strict Liability	145	(12)
Chapter Summary	146	(1)
Cases	147	(7)
Questions	154	(1)
Problems	155	(2)
PART 2 Contracts	157	(168)
Introduction to Contacts	158	(14)
Development of the Law of Contracts	158	(2)
Definition of a Contract	160	(1)
Requirements of a Contract	160	(1)
Classification of Contracts	161	(2)
Promissory Estoppel	163	(1)
Quasi Contracts	163	(9)
Chapter Summary	164	(1)
Cases	165	(5)
Questions	170	(1)
Problems	170	(2)
Mutual Assent	172	(18)
Offer	172	(1)
Essentials of an Offer	173	(2)
Duration of Offers	175	(2)
Acceptance	177	(1)
Communication of Acceptance	177	(1)
Variant Acceptances	178	(12)
Chapter Summary	180	(1)
Cases	181	(5)
Questions	186	(1)
Problems	187	(3)
Conduct Invalidating Assent	190	(18)
Duress	190	(1)
Undue Influence	191	(1)
Fraud	191	(2)
Nonfraudulent Misrepresentation	193	(1)
Mistake	194	(14)
Chapter Summary	195	(1)
Cases	196	(8)
Questions	204	(1)
Problems	204	(4)
Consideration	208	(17)
Legal Sufficiency	208	(4)
Bargained-For Exchange	212	(1)
Contracts without Consideration	213	(12)
Chapter Summary	214	(2)
Cases	216	(6)
Questions	222	(1)
Problems	222	(3)
Illegal Bargains	225	(14)
Violations of Statutes	225	(2)
Violations of Public Policy	227	(2)
Effect of Illegality	229	(10)
Chapter Summary	230	(1)
Cases	231	(5)
Questions	236	(1)
Problems	236	(3)
Contractual Capacity	239	(14)
Minors	239	(2)
Incompetent Persons	241	(1)
Intoxicated Persons	242	(11)
Chapter Summary	243	(1)
Cases	243	(7)
Questions	250	(1)
Problems	250	(3)
Contracts in Writing	253	(22)
Statute of Frauds	253	(1)
Contracts within the Statute of Frauds	254	(4)
Compliance with the Statute of Frauds	258	(1)
Effect of Noncompliance	259	(1)
Parol Evidence Rule	260	(1)
The Rule	260	(1)
Situations to Which the Rule Does Not Apply	260	(1)
Supplemental Evidence	261	(1)
Interpretation of Contracts	261	(14)
Chapter Summary	263	(2)
Cases	265	(6)
Questions	271	(1)
Problems	271	(4)
Third Parties to Contracts	275	(16)
Assignment of Rights	275	(3)
Delegation of Duties	278	(1)
Third-Party Beneficiary Contracts	279	(12)
Chapter Summary	281	(1)
Cases	282	(6)
Questions	288	(1)
Problems	288	(3)
Performance, Breach, and Discharge	291	(15)
Conditions	291	(2)
Discharge by Performance	293	(1)
Discharge by Breach	293	(1)
Discharge by Agreement of the Parties	294	(1)
Discharge by Operation of Law	295	(11)
Chapter Summary	297	(1)
Cases	298	(5)
Questions	303	(1)
Problems	303	(3)
Contract Remedies	306	(19)
Interests Protected by Contract Remedies	306	(1)
Monetary Damages	306	(4)
Remedies in Equity	310	(1)
Restitution	311	(1)
Limitations on Remedies	312	(13)
Chapter Summary	313	(1)
Cases	314	(8)
Questions	322	(1)
Problems	322	(3)
PART 3 Agency	325	(44)
Relationship of Principal and Agent	326	(21)
Nature of Agency	326	(1)
Creation of Agency	327	(2)
Duties of Agent to Principal	329	(1)
Duties of Principal to Agent	330	(2)
Termination of Agency	332	(15)
Chapter Summary	334	(1)
Cases	335	(9)
Questions	344	(1)
Problems	344	(3)
Relationship with Third Parties	347	(22)
Relationship of Principal and Third Persons	347	(1)
Contract Liability of the Principal	347	(6)
Tort Liability of the Principal	353	(3)
Criminal Liability of the Principal	356	(1)
Relationship of Agent and Third Persons	356	(1)
Contract Liability of Agent	356	(2)
Tort of Liability of Agent	358	(1)
Rights of Agent Against Third Person	358	(11)
Chapter Summary	358	(2)
Cases	360	(6)
Questions	366	(1)
Problems	366	(3)
PART 4 Sales	369	(112)
Introduction to Sales and Leases	370	(22)
Nature of Sales and Leases	371	(1)
Definitions	371	(2)
Fundamental Principles of Article 2 and Article 2A	373	(2)
Formation of Sales and Lease Contracts	375	(1)
Manifestation of Mutual Assent	375	(4)
Consideration	379	(1)
Form of the Contract	379	(13)
Chapter Summary	381	(2)
Cases	383	(6)
Questions	389	(1)
Problems	389	(3)
Performance	392	(21)
Performance by the Seller	392	(5)
Performance by the Buyer	397	(2)
Obligations of Both Parties	399	(14)
Chapter Summary	402	(1)
Cases	403	(6)
Questions	409	(1)
Problems	409	(4)
Transfer of Title and Risk of Loss	413	(19)
Transfer of Title	413	(4)
Risk of Loss	417	(3)
Sales of Goods in Bulk	420	(12)
Chapter Summary	422	(1)
Cases	423	(6)
Questions	429	(1)
Problems	429	(3)
Products Liability: Warranties and Strict Liability in Tort	432	(27)
Warranties	432	(1)
Types of Warranties	433	(2)
Obstacles to Warranty Actions	435	(3)
Strict Liability in Tort	438	(1)
Requirements of Strict Liability	439	(2)
Obstacles to Recovery	441	(2)
Restatements of Torts (Third): Products Liability	443	(16)
Chapter Summary	444	(2)
Cases	446	(9)
Questions	455	(1)
Problems	455	(4)
Sales Remedies	459	(22)
Remedies of the Seller	460	(3)
Remedies of the Buyer	463	(4)
Contractual Provisions Affecting Remedies	467	(14)
Chapter Summary	469	(2)
Cases	471	(7)
Questions	478	(1)
Problems	478	(3)
PART 5 Negotiable Instruments	481	(94)
Form and Content	482	(15)
Negotiability	483	(1)
Types of Negotiable Instruments	484	(1)
Formal Requirements of Negotiable Instruments	485	(12)
Chapter Summary	490	(1)
Cases	491	(3)
Questions	494	(1)
Problems	494	(3)
Transfer	497	(16)
Negotiation	497	(3)
Indorsements	500	(13)
Chapter Summary	503	(1)
Cases	504	(6)
Questions	510	(1)
Problems	510	(3)
Holder in Due Course	513	(21)
Requirements of a Holder in Due Course	513	(5)
Holder in Due Course Status	518	(1)
The Preferred Position of a Holder in Due Course	518	(4)
Limitations Upon Holder in Due Course Rights	522	(12)
Chapter Summary	523	(1)
Cases	524	(7)
Questions	531	(1)
Problems	531	(3)
Liability of Parties	534	(20)
Contractual Liability	534	(1)
Signature	535	(1)
Liability of Primary Parties	535	(1)
Liability of Secondary Parties	536	(3)
Termination of Liability	539	(1)
Liability Based on Warranty	540	(1)
Warranties on Transfer	540	(1)
Warranties on Presentment	541	(13)
Chapter Summary	543	(2)
Cases	545	(7)
Questions	552	(1)
Problems	552	(2)
Bank Deposits, Collections, and Funds Transfers	554	(21)
Bank Deposits and Collections	554	(1)
Collection of Items	555	(3)
Relationship Between Payor Bank and Its Customer	558	(2)
Electronic Funds Transfers	560	(1)
Types of Electronic Funds Transfers	560	(1)
Consumer Funds Transfers	561	(1)
Wholesale Funds Transfers	562	(13)
Chapter Summary	564	(2)
Cases	566	(6)
Questions	572	(1)
Problems	572	(3)
PART 6 Unincorporated Business Associations	575	(70)
Formation and Internal Relations of General Partnerships	576	(21)
Choosing a Business Association	576	(1)
Factors Affecting the Choice	577	(1)
Forms of Business Associations	578	(2)
Formation of General Partnerships	580	(1)
Nature of Partnership	580	(1)
Formation of a Partnership	581	(3)
Relationships Among Partners	584	(1)
Duties Among Partners	584	(2)
Rights Among Partners	586	(11)
Chapter Summary	589	(2)
Cases	591	(3)
Questions	594	(1)
Problems	595	(2)
Operation and Dissolution of General Partnerships	597	(27)
Relationship of Partnership and Partners with Third Parties	597	(1)
Contracts of Partnership	597	(3)
Torts and Crimes of Partnership	600	(1)
Notice to a Partner	601	(1)
Liability of Incoming Partner	601	(1)
Dissociation and Dissolution of General Partnerships under RUPA	601	(1)
Dissociation	601	(1)
Dissolution	602	(2)
Dissociation without Dissolution	604	(2)
Dissolution of General Partnerships under UPA	606	(1)
Dissolution	606	(1)
Winding Up	607	(1)
Continuation after Dissolution	608	(16)
Chapter Summary	609	(2)
Cases	611	(9)
Questions	620	(1)
Problems	620	(4)
Limited Partnerships and Limited Liability Companies	624	(21)
Limited Partnerships	624	(5)
Limited Liability Companies	629	(3)
Other Types of Unincorporated Business Associations	632	(13)
Chapter Summary	634	(3)
Cases	637	(5)
Questions	642	(1)
Problems	642	(3)
PART 7 Corporations	645	(94)
Nature, Formation, and Powers	646	(24)
Nature of Corporations	647	(1)
Corporate Attributes	647	(1)
Classification of Corporations	648	(2)
Formation of a Corporation	650	(1)
Organizing the Corporation	650	(1)
Formalities of Incorporation	651	(1)
Recognition or Disregard of Corporateness	652	(2)
Defective Incorporation	654	(1)
Piercing the Corporate Veil	655	(1)
Corporate Powers	656	(1)
Sources of Corporate Powers	656	(1)
Ultra Vires Acts	657	(1)
Liability for Torts and Crimes	657	(13)
Chapter Summary	657	(3)
Cases	660	(7)
Questions	667	(1)
Problems	667	(3)
Financial Structure	670	(21)
Debt Securities	671	(1)
Authority to Use Debt Securities	671	(1)
Types of Debt Securities	671	(1)
Equity Securities	671	(1)
Issuance of Shares	672	(2)
Classes of Shares	674	(2)
Dividends and Other Distributions	676	(1)
Types of Dividends and Other Distributions	676	(1)
Legal Restrictions on Dividends and Other Distributions	677	(2)
Declaration and Payment of Distributions	679	(1)
Liability for Improper Dividends and Distributions	679	(12)
Chapter Summary	680	(2)
Cases	682	(6)
Questions	688	(1)
Problems	688	(3)
Management Structure	691	(31)
Corporate Governance	691	(2)
Role of Shareholders	693	(1)
Voting Rights of Shareholders	694	(3)
Enforcement Rights of Shareholders	697	(1)
Role of Directors and Officers	698	(1)
Function of the Board of Directors	699	(1)
Election and Tenure of Directors	700	(1)
Exercise of Directors' Functions	700	(1)
Officers	701	(1)
Duties of Directors and Officers	702	(20)
Chapter Summary	706	(1)
Cases	707	(11)
Questions	718	(1)
Problems	719	(3)
Fundamental Changes	722	(17)
Charter Amendments	722	(1)
Combinations	723	(3)
Dissolution	726	(13)
Chapter Summary	728	(1)
Cases	729	(8)
Questions	737	(1)
Problems	737	(2)
PART 8 Debtor and Creditor Relations	739	(58)
Secured Transactions and Suretyship	740	(32)
Secured Transactions in Personal Property	740	(1)
Essentials of Secured Transactions	741	(1)
Classification of Collateral	741	(2)
Attachment	743	(2)
Perfection	745	(4)
Priorities Among Competing Interests	749	(4)
Default	753	(2)
Suretyship	755	(1)
Nature and Formation	755	(2)
Rights of Surety	757	(1)
Defenses of Surety and Principal Debtor	758	(14)
Chapter Summary	759	(4)
Cases	763	(5)
Questions	768	(1)
Problems	769	(3)
Bankruptcy	772	(25)
Federal Bankruptcy Law	772	(1)
Case Administration---Chapter 3	773	(1)
Creditors, the Debtor, and the Estate---Chapter 5	774	(5)
Liquidation---Chapter 7	779	(2)
Reorganization---Chapter 11	781	(2)
Adjustment of Debts of Individuals---Chapter 13	783	(1)
Creditors' Rights and Debtor's Relief Outside of Bankruptcy	784	(1)
Creditors' Rights	784	(1)
Debtor's Relief	785	(12)
Chapter Summary	786	(2)
Cases	788	(6)
Questions	794	(1)
Problems	794	(3)
PART 9 Regulation of Business	797	(206)
Protection of Intellectual Property	798	(20)
Trade Secrets	798	(1)
Trade Symbols	799	(3)
Trade Names	802	(1)
Copyrights	802	(2)
Patents	804	(14)
Chapter Summary	806	(1)
Cases	807	(8)
Questions	815	(1)
Problems	815	(3)
Antitrust	818	(23)
Sherman Act	818	(5)
Clayton Act	823	(2)
Robinson-Patman Act	825	(1)
Federal Trade Commission Act	826	(15)
Chapter Summary	828	(1)
Cases	829	(8)
Questions	837	(1)
Problems	837	(4)
Consumer Protection	841	(26)
State and Federal Consumer Protection Agencies	841	(3)
Consumer Purchases	844	(3)
Consumer Credit Transactions	847	(4)
Creditors' Remedies	851	(16)
Chapter Summary	852	(2)
Cases	854	(10)
Questions	864	(1)
Problems	864	(3)
Employment Law	867	(29)
Labor Law	867	(2)
Employment Discrimination Law	869	(5)
Employee Protection	874	(22)
Chapter Summary	879	(1)
Cases	880	(12)
Questions	892	(1)
Problems	893	(3)
Securities Regulation	896	(30)
Securities Act of 1933	897	(1)
Definition of a Security	897	(1)
Registration of Securities	898	(1)
Exempt Securities	899	(1)
Exempt Transactions for Issuers	900	(3)
Exempt Transactions for Non-issuers	903	(1)
Liability	903	(2)
Securities Exchange Act of 1934	905	(1)
Disclosure	906	(3)
Liability	909	(17)
Chapter Summary	914	(2)
Cases	916	(7)
Questions	923	(1)
Problems	923	(3)
Accountants' Legal Liability	926	(12)
Common Law	926	(3)
Federal Securities Law	929	(9)
Chapter Summary	931	(2)
Cases	933	(3)
Questions	936	(1)
Problems	936	(2)
Environmental Law	938	(22)
Common Law Actions for Environmental Damage	938	(1)
Nuisance	938	(1)
Trespass to Land	939	(1)
Strict Liability for Abnormally Dangerous Activities	939	(1)
Problems Common to Private Causes of Action	939	(1)
Federal Regulation of the Environment	939	(1)
The National Environmental Policy Act	940	(1)
The Clean Air Act	941	(2)
The Clean Water Act	943	(1)
Hazardous Substances	944	(4)
International Protection of the Ozone Layer	948	(12)
Chapter Summary	948	(2)
Cases	950	(7)
Questions	957	(1)
Problems	958	(2)
International Business Law	960	(17)
The International Environment	960	(2)
Jurisdiction over Actions of Foreign Governments	962	(1)
Transacting Business Abroad	963	(3)
Forms of Multinational Enterprises	966	(11)
Chapter Summary	967	(2)
Cases	969	(5)
Questions	974	(1)
Problems	974	(3)
Cyber Law	977	(26)
Defamation	977	(1)
Intellectual Property	978	(4)
Contracts and Sales	982	(2)
Privacy and the Internet	984	(2)
Securities Regulation	986	(1)
Cybercrime	987	(16)
Chapter Summary	988	(2)
Cases	990	(11)
Questions	1001	(1)
Problems	1001	(2)
PART 10 Property	1003
Introduction to Property, Property Insurance, Bailments, and Documents of Title	1004	(24)
Introduction to Property	1004	(1)
Kinds of Property	1004	(2)
Transfer of Title to Personal Property	1006	(1)
Property Insurance	1007	(1)
Fire and Property Insurance	1008	(1)
Nature of Insurance Contracts	1009	(2)
Bailments and Documents of Title	1011	(1)
Bailments	1011	(3)
Documents of Title	1014	(14)
Chapter Summary	1016	(3)
Cases	1019	(4)
Questions	1023	(1)
Problems	1023	(5)
Interests in Real Property	1028	(20)
Freehold Estates	1028	(2)
Leasehold Estates	1030	(4)
Concurrent Ownership	1034	(2)
Nonpossessory Interests	1036	(12)
Chapter Summary	1037	(2)
Cases	1039	(6)
Questions	1045	(1)
Problems	1046	(2)
Transfer and Control of Real Property	1048	(17)
Transfer of Real Property	1048	(1)
Contract of Sale	1048	(1)
Deeds	1049	(2)
Secured Transactions	1051	(1)
Adverse Possession	1052	(1)
Public and Private Controls	1052	(1)
Zoning	1053	(1)
Eminent Domain	1054	(1)
Private Restrictions upon Land Use	1054	(11)
Chapter Summary	1055	(2)
Cases	1057	(5)
Questions	1062	(1)
Problems	1062	(3)
Trusts and Decedents' Estates	1065
Trusts	1065	(1)
Types of Trusts	1065	(2)
Creation of Trusts	1067	(1)
Termination of a Trust	1068	(1)
Decedents' Estates	1069	(1)
Wills	1069	(3)
Intestate Succession	1072	(1)
Administration of Estates	1073
Chapter Summary	1074	(1)
Cases	1075	(6)
Questions	1081	(1)
Problems	1081
Appendices	1	(158)
Appendix A The Constitution of the United States of America	2	(7)
Appendix B Uniform Commercial Code (Selected Provisions)	9	(84)
Appendix C Uniform Partnership Act	93	(6)
Appendix D Revised Uniform Partnership Act (Selected Provisions)	99	(9)
Appendix E Revised Model Business Corporation Act	108	(31)
Appendix F Dictionary of Legal Terms	139	(20)
Index	159