Business Law : Principles and Cases in the Legal Environment

by DAVIDSON/KNOWLES/FORSYTHE

• ISBN13: 9780324153637
• ISBN10: 0324153635
• Edition: 8th
• Format: Paperback
• Copyright: 2003-06-09
• Publisher: South-Western College/West

Summary

Business Law: Principles and Cases in the Legal Environment offers students a readable, rigorous, and practical introduction to the real-world of business law. Students receive not only a thorough explanation of the legal and regulatory issues affecting businesses, but also have the opportunity to apply what they learn to real business situations. All chapters contain outlines, summaries, margin notes, and comprehensive question and problem material. The majority of cases and examples are current, condensed, and presented in the language of the court. An interesting feature includes a 'thread case', applying practical applications to a hypothetical business.

Table of Contents

Preface	xxi
About the Authors	xxv
PART 1 FOUNDATIONS OF LAW	1	(80)
Introduction to Law	3	(24)
What Is the Relationship among Law, Order, and Justice?	4	(2)
Law	4	(1)
Order	4	(1)
Justice	5	(1)
The Nexus: Practicability	6	(1)
The Law as an Artificial Language System	6	(1)
The Origins of the Law of Business	6	(1)
Why Study the Law of Business?	6	(1)
NRW Case 1.1 Health Insurance for NRW Employees	7	(1)
What Are the Needs of a Legal System?	7	(1)
The Need to Be Reasonable	7	(1)
The Need to Be Definite	8	(1)
The Need to Be Flexible	8	(1)
The Need to Be Practical	8	(1)
The Need to Be Published	8	(1)
The Need to Be Final	8	(1)
What Are the Purposes of a Legal System?	8	(3)
Achieving Justice	8	(1)
Providing Police Power	9	(1)
Maintaining Peace and the Status Quo	9	(1)
NRW Case 1.2 Security Issues	10	(1)
Providing Answers	10	(1)
Providing Protection	10	(1)
Enforcing Intent	11	(1)
Providing Rehabilitation	11	(1)
Facilitating Commercial Transactions	11	(1)
Jurisprudence	11	(3)
Natural Law Theory	11	(1)
Legal Positivism	12	(1)
Sociological Theory	13	(1)
Historical Theory	13	(1)
Law and Economics Theory	13	(1)
Feminist Legal Theory	13	(1)
Critical Legal Studies Theory	14	(1)
Change in the Legal System	14	(1)
What Are the Sources of Law in the U.S. Legal System?	15	(2)
Constitutions	15	(1)
Treaties	15	(1)
Statutes	15	(1)
Ordinances	16	(1)
Administrative Regulations	16	(1)
Common Law	16	(1)
Case Law	16	(1)
Equity	17	(1)
How Is the Law Classified?	17	(2)
Federal versus State Law	17	(1)
Common versus Statutory Law	17	(1)
Civil versus Criminal Law	18	(1)
Substantive versus Procedural Law	18	(1)
Public versus Private Law	19	(1)
Legal Systems in Other Countries	19	(2)
NRW Case 1.3 Lobbying the Government on Behalf of NRW	20	(1)
The Attorney-Client Relationship	21	(1)
Hiring an Attorney	21	(1)
Resolving Problems with Legal Counsel	22	(1)
Summary	22	(1)
Discussion Questions	23	(1)
Case Problems and Writing Assignments	23	(4)
Business Ethics	27	(26)
Ethics and Morality	28	(1)
Ethical Theories	29	(1)
Consequential and Nonconsequential Principles	29	(3)
Consequential Ethics	30	(1)
Nonconsequential Ethics	31	(1)
A Synthesis for Ethical Decision Making	32	(2)
The Game Theory of Business	34	(3)
Business as an Amoral Institution	34	(3)
The ``Game Theory''	37	(1)
The Social Contract Theory	37	(3)
NRW Case 2.1 Is Business a Game?	38	(1)
The Constituents of a Business	39	(1)
The Changing Social Environment	40	(3)
NRW Case 2.2 Should NRW Adopt a Code of Ethics?	40	(3)
Problems with Business Ethics	43	(1)
The Human Factor	43	(1)
The Legal Aspect	44	(1)
Multinational Ethics	44	(1)
A Recommendation for Business	45	(1)
NRW Case 2.3 Operating NRW Ethically	45	(1)
Summary	46	(1)
Discussion Questions	47	(1)
Case Problems and Writing Assignments	48	(5)
International Law	53	(28)
Business in a Global Village	54	(4)
Going ``Global''	54	(1)
NRW Case 3.1 Benefits and Costs of ``Going Global''	55	(1)
Doing Business in a Global Market	56	(1)
Cross-Cultural Negotiations	56	(2)
Extraterritoriality: U.S. Laws, International Applications	58	(4)
Antitrust Law	58	(1)
The Foreign Corrupt Practices Act	59	(1)
Employment	59	(3)
Free Trade Zones	62	(3)
The European Union	62	(1)
NRW Case 3.2 International Markets and Free Trade Zones	62	(2)
The North American Free Trade Agreement	64	(1)
Other Free Trade Zones	65	(1)
The General Agreement on Tariffs and Trade	65	(1)
World Trade Organization	66	(1)
UNCITRAL	66	(1)
The International Organization for Standardization (ISO)	67	(1)
Exports	67	(1)
Imports	67	(1)
NRW Case 3.3 Production and License of NRW Products Internationally	68	(1)
Letters of Credit	68	(1)
Information and Technology	69	(1)
Nationalization	70	(1)
Act of State Doctrine	70	(1)
Sovereign Immunity	71	(2)
Dispute Resolution	73	(2)
The International Court of Justice	73	(1)
National Courts	73	(1)
Arbitration	74	(1)
On-line Dispute Resolution (ODR)	75	(1)
Summary	75	(1)
Discussion Questions	76	(1)
Case Problems and Writing Assignments	76	(5)
PART 2 THE AMERICAN LEGAL SYSTEM	81	(134)
The American Legal System and Court Jurisdiction	83	(24)
The Federal Constitution	84	(5)
Allocation of Power	84	(2)
NRW Case 4.1 Product Safety Laws	86	(1)
Original Constitution	87	(1)
NRW Case 4.2 How to Protect NRW's Patent	87	(1)
Amendments to the Constitution	87	(2)
The Courts and Jurisdiction	89	(13)
Subject Matter Jurisdiction	90	(1)
Jurisdiction over the Persons or Property	90	(5)
Concurrent versus Exclusive Jurisdiction	95	(1)
Venue	95	(1)
Choice of Laws	95	(1)
Federal Courts	96	(1)
NRW Case 4.3 Lawsuit against a Supplier	96	(2)
Specialized Courts	98	(2)
State Courts	100	(2)
How to Find the Law	102	(1)
Federal Court Cases	102	(1)
State Court Cases	103	(1)
Computerized Legal Research	103	(1)
Summary	103	(1)
Discussion Questions	104	(1)
Case Problems and Writing Assignments	104	(3)
Constitutional Regulation of Business	107	(26)
Historical Perspective	108	(1)
Should Government Regulate Business?	108	(1)
The Commerce Clause	108	(6)
Exclusive Federal Power	109	(1)
Concurrent State Power	110	(1)
Exclusive State Power	111	(3)
The Equal Protection Clause	114	(2)
Level 1: The Rational Basis Test	114	(1)
Level 2: The ``Compelling State Interest'' Test	114	(1)
NRW Case 5.1 Challenging an Apparently Unconstitutional Law	115	(1)
Intermediate Level: The Substantially Important State Interest Test	116	(1)
The Due Process Clause	116	(2)
Procedural Due Process	117	(1)
Substantive Due Process	117	(1)
NRW Case 5.2 Challenging Local Laws	118	(1)
The Takings Clause	118	(3)
The First Amendment/Commercial Speech	121	(4)
NRW Case 5.3 City Officials Confiscate StuffTrakr Units	121	(4)
Administrative Agencies	125	(3)
Summary	128	(1)
Discussion Questions	128	(1)
Case Problems and Writing Assignments	129	(4)
Dispute Resolution	133	(34)
Overview	134	(1)
Costs of Litigation	134	(1)
The Problem	135	(1)
Client's Interview with a Lawyer	136	(1)
Investigation of the Facts	137	(1)
Negotiation of a Settlement	138	(1)
A Civil Suit	139	(13)
Filing the Suit	139	(1)
Pretrial Proceedings	139	(4)
NRW Case 6.1 Preparing to Meet with the Attorney	143	(1)
The Trial	144	(4)
NRW Case 6.2 Selecting Jurors	148	(2)
Posttrial Proceedings	150	(2)
A Comment on Finality	152	(1)
The Need for Alternatives to a Civil Suit	152	(1)
Negotiation	153	(1)
Mediation	154	(2)
Standards of Conduct	155	(1)
Compensation	156	(1)
Arbitration	156	(5)
NRW Case 6.3 Serving as a Mediator	156	(1)
Controls on Arbitration	157	(1)
Statutory Coverage	157	(3)
Organizations	160	(1)
Minitrial	161	(1)
Rent-a-Judge Trial	161	(1)
Small Claims Court	161	(1)
Execution	161	(1)
Summary	162	(1)
Discussion Questions	162	(1)
Case Problems and Writing Assignments	163	(4)
Torts	167	(24)
Objectives of Tort Law	168	(1)
Theories of Tort Liability	168	(1)
Duty	169	(1)
Foreseeability	169	(1)
Intentional Torts	169	(9)
Assault	169	(1)
Battery	170	(1)
Defamation	170	(2)
Disparagement	172	(1)
False Imprisonment	172	(1)
NRW Case 7.1 Unfair Advertising	173	(1)
Emotional Distress	173	(1)
Invasion of Privacy	173	(2)
Trespass	175	(1)
Conversion	175	(1)
NRW Case 7.2 Invasion of Privacy	176	(1)
Misappropriation of Trade Secrets	176	(1)
Fraud	176	(1)
Civil RICO Violations	176	(1)
Defenses to Intentional Torts	177	(1)
Negligence	178	(3)
Duty	178	(1)
Breach of Duty	179	(1)
NRW Case 7.3 Job References for Former Employees	180	(1)
Harm	180	(1)
Causation	180	(1)
Defenses to Negligence	181	(1)
Strict Liability	181	(1)
Product Liability	182	(2)
Tort Liability of Business Entities	184	(1)
Summary	185	(1)
Discussion Questions	185	(1)
Case Problems and Writing Assignments	186	(5)
Crimes and Business	191	(24)
Why Study Criminal Law?	192	(1)
Objectives of Criminal Law	192	(2)
Protection of Persons and Property	192	(1)
Deterrence of Criminal Behavior	193	(1)
Punishment of Criminal Activity	193	(1)
NRW Case 8.1 Protecting against Crime	194	(1)
Rehabilitation of the Criminal	194	(1)
The Components of Criminal Responsibilities	194	(1)
The Act	194	(1)
Mental State	195	(1)
Seriousness of the Offense	195	(1)
Infractions or Violations	195	(1)
Misdemeanors	195	(1)
Felonies	195	(1)
Treason	195	(1)
Crimes versus Torts	195	(1)
Selected Crimes	195	(9)
Murder/Manslaughter	197	(1)
Arson	197	(1)
Burglary	197	(1)
Embezzlement	198	(1)
Forgery	198	(1)
Credit Card and Check Legislation	199	(1)
NRW Case 8.2 E-Commerce Security	200	(1)
Identity Theft	200	(1)
Criminal Fraud	200	(1)
Larceny	201	(1)
Robbery	201	(1)
Espionage	201	(1)
Computer Crime	201	(1)
Corporate Liability for Crimes	202	(1)
NRW Case 8.3 Should NRW Use ``Out-of-Office'' Messages?	202	(1)
RICO: Racketeer Influenced and Corrupt Organizations Act	203	(1)
Selected Defenses	204	(1)
Duress	204	(1)
Insanity	204	(1)
Intoxication	204	(1)
Justification	204	(1)
The Law of Criminal Procedure	205	(5)
Summary	210	(1)
Discussion Questions	210	(1)
Case Problems and Writing Assignments	211	(4)
PART 3 CONTRACTS	215	(156)
Introduction to Contract Law and Contract Theory	217	(20)
The Importance of Contract Law	218	(4)
Commercial Law Contracts	218	(2)
Common Law Contracts	220	(1)
Definition of a Contract	220	(1)
NRW Case 9.1 What Type of Law Will Govern NRW's Contracts?	221	(1)
Elements of a Contract	221	(1)
From Status to Freedom of Contract and Back Again	222	(1)
Classifications of Contracts	222	(10)
Formal versus Informal Contracts	222	(1)
Unilateral versus Bilateral Contracts	223	(3)
Valid, Voidable, Void, and Unenforceable Contracts	226	(1)
Express versus Implied Contracts	226	(1)
NRW Case 9.2 Collecting Damages from a Friend	226	(1)
Executory versus Executed Contracts	226	(2)
Quasi Contracts versus Contracts Implied in Fact	228	(1)
NRW Case 9.3 Contractual Considerations	228	(4)
Summary	232	(1)
Discussion Questions	233	(1)
Case Problems and Writing Assignments	233	(4)
Contractual Agreement: Mutual Assent	237	(20)
The First Step in Contract Formation	238	(1)
Mutual Assent and the Objective Theory of Contracts	238	(1)
Offer	238	(8)
Clear Intention to Contract and Definiteness of the Offer	238	(3)
Advertisements and Auctions	241	(1)
NRW Case 10.1 Understanding Contract Formation	241	(2)
Communication of the Offer to the Offeree	243	(1)
Duration of the Offer	244	(1)
NRW Case 10.2 Revoking an Offer	245	(1)
Acceptance	246	(6)
Mirror Image Rule	246	(3)
Manner and Time of Acceptance	249	(1)
Silence	250	(1)
Bilateral versus Unilateral Contracts	250	(1)
NRW Case 10.3 Accepting Offers	250	(2)
Summary	252	(1)
Discussion Questions	253	(1)
Case Problems and Writing Assignments	253	(4)
Consideration: The Basis of the Bargain	257	(18)
The Bargain as a Contract Theory	258	(1)
Definition of Consideration	258	(3)
Consideration as an Act or a Forbearance to Act	258	(1)
Consideration as a Promise to Act or to Forbear	259	(1)
Adequacy of Consideration	260	(1)
Consideration in Special Contexts	261	(3)
Contracts for the Sale of Goods	261	(1)
Suretyship Contracts	262	(1)
NRW Case 11.1 Acquiring Financing for NRW	262	(1)
Liquidated Debts	262	(1)
Unliquidated Debts	263	(1)
Composition Agreements	263	(1)
Absence of Consideration	264	(2)
Illusory Promises	264	(1)
Preexisting Duty	264	(1)
NRW Case 11.2 Arranging Credit Terms	264	(1)
Moral Consideration	265	(1)
NRW Case 11.3 Changing the Terms of a Contract	265	(1)
Past Consideration	266	(1)
Exceptions to the Bargaining Theory of Consideration	266	(3)
Promissory Estoppel	268	(1)
Charitable Subscriptions	268	(1)
Promises Made after the Expiration of the Statute of Limitations	268	(1)
Promises to Pay Debts Covered by Bankruptcy Discharges	268	(1)
Summary	269	(1)
Discussion Questions	270	(1)
Case Problems and Writing Assignments	270	(5)
Contractual Capacity and Reality of Consent	275	(24)
Legal Capacity	276	(1)
Minors	276	(4)
Disaffirmance/Rescission	276	(2)
Misrepresentation of Age	278	(1)
Ratification	279	(1)
Necessaries	279	(1)
Special Statutes	279	(1)
Torts and Crimes	280	(1)
Insane Persons	280	(1)
Effects of Transactions by Insane Persons	280	(1)
Necessaries	280	(1)
Intoxicated Persons	280	(1)
NRW Case 12.1 Purchases by Minors	281	(1)
Aliens	281	(1)
Convicts	281	(1)
Married Women	281	(2)
The Requirement of Reality (or Genuineness) of Consent	283	(1)
Fraud	283	(3)
Elements of Fraud	283	(3)
NRW Case 12.2 Marketing and Sales Strategies	286	(1)
Silence	286	(1)
Misrepresentation	286	(1)
Mistake	287	(2)
Unilateral Mistake	288	(1)
Bilateral Mistake	288	(1)
Reformation	288	(1)
Duress	289	(1)
Undue Influence	290	(2)
NRW Case 12.3 Should the Firm Agree to the Demands of a Supplier?	290	(2)
Unconscionability	292	(1)
Summary	293	(1)
Discussion Questions	294	(1)
Case Problems and Writing Assignments	294	(5)
Legality of Subject Matter and Proper Form of Contracts	299	(24)
The Requirements of Legality of Subject Matter and Proper Form	300	(1)
Components of Illegality	300	(1)
Mala in Se and Mala Prohibita Bargains	300	(1)
NRW Case 13.1 Mala Prohibita Contract Situations	301	(1)
Agreements That Violate Statutes	301	(2)
Price-Fixing Agreements	301	(1)
Performances of Services without a License	302	(1)
Sunday Closing Laws	302	(1)
Wagering Statutes	302	(1)
Usury Statutes	303	(1)
Agreements That Violate Public Policy	303	(5)
Covenants Not to Compete	303	(1)
NRW Case 13.2 Employee Agreements and Releases	304	(1)
Exculpatory Clauses	304	(4)
Exceptions: Upholding Illegal Agreements	308	(1)
Parties Not in Pari Delicto	308	(1)
Repentance	308	(1)
Partial Illegality	308	(1)
The Importance of Form	309	(1)
Statute of Frauds	310	(6)
Types of Contracts Covered	310	(4)
Writing	314	(1)
Signature	314	(1)
NRW Case 13.3 Checking the Mail and E-Mail	315	(1)
Parol Evidence Rule	316	(1)
Exceptions to the Parol Evidence Rule	317	(1)
Partially Integrated Contracts	317	(1)
Mistake, Fraud, and Other ``Reality-of-Consent'' Situations	318	(1)
Ambiguities and Conditions Precedent	318	(1)
Uniform Commercial Code	318	(1)
Summary	318	(1)
Discussion Questions	319	(1)
Case Problems and Writing Assignments	319	(4)
Contract Interpretation and the Rights of Third Persons	323	(24)
Judicial Interpretation	324	(1)
Standards	324	(1)
Rules of Interpretation	324	(1)
Conduct and Usage of Trade	325	(1)
The Parol Evidence Rule	325	(2)
Rules of Integration	325	(1)
Total Integration	326	(1)
Partial Integration	326	(1)
Addition of Third Parties to the Contract	327	(1)
Third-Party Beneficiary Contracts	328	(5)
An Incidental Beneficiary	329	(1)
An Intended Beneficiary	329	(1)
A Donee Beneficiary	329	(3)
A Creditor Beneficiary	332	(1)
Analysis of Third-Party Beneficiary Contracts	333	(1)
Defining Assignments and Delegations	333	(1)
Assignments	333	(7)
NRW Case 14.1 Liability for Damages in Shipping	334	(1)
Formalities Required for Assignments	334	(1)
Notice of the Assignment	334	(2)
Assignable Rights	336	(2)
NRW Case 14.2 Accepting Accounts Receivable as Payment of Debt	338	(1)
Contract Clauses Restricting Assignments	338	(1)
Warranties Implied by the Assignor	338	(1)
Rights Created by the Assignment	338	(1)
Waiver of Defenses Clause	338	(2)
Delegations	340	(2)
NRW Case 14.3 Creating Authorized Repair Centers	342	(1)
Analysis of Assignments and Delegations	342	(1)
Uniform Commercial Code Provisions	342	(1)
Summary	342	(1)
Discussion Questions	343	(1)
Case Problems and Writing Assignments	343	(4)
Contractual Discharge and Remedies	347	(24)
Termination of the Contract	348	(2)
Discharge by Performance	350	(1)
Complete Performance	350	(1)
Substantial Performance	350	(1)
NRW Case 15.1 Ensuring Acceptable Performance	350	(1)
Discharge by Agreement of the Parties	351	(1)
Release	351	(1)
Rescission	351	(1)
Accord and Satisfaction	351	(1)
Novation	351	(1)
Discharge by Operation of Law	352	(1)
Discharge by Nonperformance	352	(6)
Impossibility	352	(1)
Commercial Frustration	352	(1)
Actual Breach	353	(2)
Anticipatory Breach	355	(1)
Conditions	355	(1)
NRW Case 15.2 Defenses to Contract Enforcement	355	(3)
Types of Remedies	358	(1)
Damages	358	(4)
Compensatory Damages	358	(1)
Consequential Damages	359	(1)
Duty to Mitigate	360	(1)
Punitive Damages	360	(1)
Liquidated Damage	361	(1)
NRW Case 15.3 Liquidated Damages Clauses	361	(1)
Nominal Damages	361	(1)
Equitable Remedies	362	(2)
Rescission and Restitution	362	(1)
Specific Performance	362	(2)
Quasi Contract/Reformation/Injunction	364	(1)
Limitations on Remedies	364	(1)
Waiver of Breach	364	(1)
Summary	365	(1)
Discussion Questions	366	(1)
Case Problems and Writing Assignments	366	(5)
PART 4 SALES AND LEASES	371	(98)
Formation of the Sales Contract: Contracts for Leasing Goods	373	(26)
NRW Case 16.1 What Type of Law Will Most Affect NRW?	374	(1)
The Scope of Article 2	375	(2)
Forming the Sales Contract	377	(6)
Standard Form Contracts	378	(1)
Firm Offers	379	(1)
Statute of Frauds	379	(3)
NRW Case 16.2 Standard Form Sales Contracts	382	(1)
Special Rules under Article 2	383	(1)
Open Terms	383	(1)
NRW Case 16.3 How Should NRW Communicate with Its Customers?	383	(1)
Options	384	(1)
Cooperation	384	(1)
The Scope of Article 2A	384	(1)
Contracts for Leasing Goods	385	(2)
Contracts for the Sale of Goods in an International Setting	387	(1)
The United Nations Convention on Contracts for the International Sale of Goods	387	(1)
Scope of the CISG	388	(4)
Summary	392	(2)
Discussion Questions	394	(1)
Case Problems and Writing Assignments	394	(5)
Title and Risk of Loss	399	(24)
Title to Goods under Article 2 of the UCC	400	(4)
Historical Importance	400	(1)
The Modern Rule under the UCC	400	(2)
Sellers with Voidable Title	402	(2)
Insurable Interest	404	(1)
Risk of Loss under Article 2 of the UCC	404	(4)
Breach of Contract	406	(1)
No Breach of Contract	406	(1)
NRW Case 17.1 Who Takes the Loss?	407	(1)
Special Problems	408	(3)
Sale on Approval	408	(2)
Sale or Return	410	(1)
Consignment	410	(1)
NRW Case 17.2 Methods of Selling	411	(1)
Auctions	411	(1)
Leases under Article 2A of the UCC	411	(1)
Title to Goods under the CISG	412	(1)
Risk of Loss under the CISG	412	(1)
Standard Shipping Terms	412	(5)
Standard Terms under the UCC	413	(1)
FOB	413	(1)
FAS	413	(1)
Ex-Ship	413	(1)
CIF and C & F	413	(1)
No Arrival, No Sale	414	(1)
COD	414	(1)
Standard Shipping Terms in International Trade (Incoterms)	414	(1)
NRW Case 17.3 Selecting Delivery Terms for International Sales	414	(3)
Summary	417	(1)
Discussion Questions	418	(1)
Case Problems and Writing Assignments	418	(5)
Performance and Remedies	423	(26)
Performance of a Sales Contract	424	(1)
General Obligations	424	(1)
Sales under Article 2 of the UCC	424	(1)
Cooperation	424	(1)
Seller's Duties	424	(1)
Intervening Rights	425	(3)
Inspection	425	(2)
Cure	427	(1)
Buyer's Duties	428	(2)
Acceptance	428	(1)
Payment	429	(1)
Leases under Article 2A of the UCC	430	(1)
Sales under the CISG	430	(1)
Obligations of the Seller	431	(1)
Obligations of the Buyer	432	(1)
The Reason for Remedies	432	(1)
Seller's Remedies under Article 2	432	(3)
Preacceptance Remedies of the Seller	432	(2)
NRW Case 18.1 Should NRW Use Credit Sales to Increase Market Share?	434	(1)
Postacceptance Remedies of the Seller	434	(1)
Buyer's Remedies under Article 2	435	(2)
Preacceptance Remedies of the Buyer	435	(1)
Postacceptance Remedies of the Buyer	436	(1)
NRW Case 18.2 Addressing Delivery Problems with a Supplier	437	(1)
Modifications	437	(1)
Special Problems	437	(2)
(Anticipatory) Repudiation	437	(1)
Excused Performance	438	(1)
Adequate Assurances	438	(1)
NRW Case 18.3 What Damages Would Be Appropriate?	438	(1)
Duty to Particularize	439	(1)
Statute of Limitations	439	(1)
Remedies in Leasing Contracts under Article 2A	439	(1)
Lessor's Remedies	439	(1)
Lessee's Remedies	439	(1)
Remedies under the CISG	439	(4)
Remedies for Breach by the Seller	439	(1)
Remedies for Breach by the Buyer	440	(1)
Damages	440	(3)
Summary	443	(1)
Discussion Questions	443	(1)
Case Problems and Writing Assignments	444	(5)
Warranties and Product Liability	449	(20)
NRW Case 19.1 Advertising the Product	450	(1)
Express Warranties	451	(1)
Implied Warranties	452	(4)
Warranty of Title	453	(1)
Warranty against Infringement	453	(1)
NRW Case 19.2 Potential Patent Infringement	453	(1)
Warranty of Merchantability	454	(2)
Warranty of Fitness for a Particular Purpose	456	(1)
Warranty Exclusions	456	(2)
NRW Case 19.3 Warranties	456	(2)
Scope of Warranty Protection	458	(1)
Statutory Warranty Provisions	459	(1)
Product Liability	459	(3)
Negligence	459	(1)
Strict Liability in Tort	460	(2)
Leases	462	(1)
The CISG	463	(1)
ISO 9000	463	(1)
Summary	464	(1)
Discussion Questions	465	(1)
Case Problems and Writing Assignments	465	(4)
PART 5 NEGOTIABLES	469	(116)
Introduction to Negotiables: UCC Article 3 and Article 7	471	(22)
Historical Overview	472	(1)
The Scope of Article 3	473	(2)
Uses of Negotiable Instruments	475	(6)
Checks	475	(1)
Drafts	476	(1)
NRW Case 20.1 Comakers for Company Loans	476	(2)
Promissory Notes	478	(1)
Certificates of Deposit	479	(2)
Functions and Forms	481	(1)
Paper Containing an Order (``Three-Party'' Paper)	481	(3)
Drafts	481	(1)
NRW Case 20.2 Where Should NRW Have Its Checking Account?	482	(1)
Checks	482	(2)
Paper Containing a Promise (``Two-Party'' Paper)	484	(1)
Promissory Notes	484	(1)
Certificates of Deposit	484	(1)
The Scope of Article 7	485	(2)
Uses and Forms of Documents of Title	487	(2)
Warehouse Receipts	487	(1)
Bills of Lading	488	(1)
NRW Case 20.3 Bills of Lading	488	(1)
Summary	489	(1)
Discussion Questions	489	(1)
Case Problems and Writing Assignments	490	(3)
Negotiability	493	(20)
Formal Requirements for Negotiability: Article 3	494	(14)
Writing Requirement	495	(2)
Signature Requirement	497	(1)
NRW Case 21.1 Signing Business Checks	497	(3)
Unconditional Promise or Order Requirement	500	(2)
Fixed Amount of Money Requirement	502	(1)
NRW Case 21.2 Promissory Notes and Interest Rates	503	(1)
NRW Case 21.3 How Should the Firm Handle a Money Order?	504	(1)
Words of Negotiability Requirement: ``Pay to the Order of'' or ``Pay to Bearer''	504	(1)
Determinable Time Requirement: Payable on Demand or at a Fixed Time	505	(3)
The ``Exclusive Obligation'' Requirement	508	(1)
Construction and Interpretation: Article 3	508	(1)
Requirements for Negotiability: Article 7	508	(1)
Summary	509	(1)
Discussion Questions	509	(1)
Case Problems and Writing Assignments	510	(3)
Negotiation and Holders in Due Course/Holders by Due Negotiation	513	(26)
Transfer	514	(1)
Negotiation	515	(1)
Indorsements	516	(5)
NRW Case 22.1 Should the Firm Insist on Having an Indorsement?	516	(1)
Special Indorsements	517	(1)
Blank Indorsements	517	(1)
Restrictive Indorsements	518	(2)
NRW Case 22.2 Depositing Company Checks	520	(1)
Holder	521	(1)
Holder in Due Course	522	(3)
For Value	523	(1)
In Good Faith	523	(1)
NRW Case 22.3 What Constitutes Notice?	524	(1)
Without Notice of Defenses or Defects	524	(1)
Effect of Holder in Due Course Status	525	(6)
Personal Defenses	528	(2)
Recoupment	530	(1)
Real Defenses	530	(1)
The Shelter Provision	531	(1)
Statutory Limitations	532	(1)
Holder by Due Negotiation	532	(1)
Summary	533	(1)
Discussion Questions	533	(1)
Case Problems and Writing Assignments	534	(5)
Negotiables: Liability and Discharge	539	(24)
Basic Concepts	540	(1)
The Chains of Liability	540	(2)
Primary Liability	540	(1)
Secondary Liability	541	(1)
Obligation of the Drawer	541	(1)
Obligation of the Indorser	541	(1)
Establishing Liability	542	(6)
Presentment	542	(4)
Acceptance	546	(1)
Dishonor	546	(1)
Notice	547	(1)
NRW Case 23.1 Dishonored Checks	547	(1)
Types of Liability	548	(3)
Indorsement Liability	548	(1)
NRW Case 23.2 Seeking Recovery for a Bad Check	549	(1)
Warranty Liability	549	(1)
NRW Case 23.3 Forgeries	550	(1)
Special Problems	551	(4)
Discharge	555	(3)
Payment	555	(1)
Tender of Payment	555	(2)
Cancellation and Renunciation	557	(1)
Impairment	557	(1)
Other Discharges	558	(1)
Summary	558	(1)
Discussion Questions	559	(1)
Case Problems and Writing Assignments	559	(4)
Bank-Customer Relations/Electronic Funds Transfers	563	(22)
Basic Concepts	564	(1)
The Customer: Rights and Duties	564	(8)
Wrongful Dishonor	565	(2)
Stop Payment Orders	567	(1)
NRW Case 24.1 Issuing a Stop Payment Order	568	(1)
The Duty to Inspect Bank Statements	568	(3)
NRW Case 24.2 Unauthorized Payments by the Bank	571	(1)
The Bank: Rights and Duties	572	(1)
Stale Checks	572	(1)
Death or Incompetence of a Customer	572	(1)
The Bank's Right of Subrogation	572	(1)
The Bank's Rights with Legal Notice	573	(1)
The Account Contract	573	(1)
Special Problems	573	(1)
Certified Checks	573	(1)
Unauthorized Signatures	574	(1)
Funds Transfers: Article 4A	574	(3)
NRW Case 24.3 Funds Transfers	577	(1)
Funds Transfers: Electronic Funds Transfers	577	(2)
Point of Sale (POS) Transactions	578	(1)
Debit/ATM Cards	578	(1)
Telephonic Transactions	578	(1)
Preauthorized Transactions	578	(1)
Rights and Duties with EFTs	578	(1)
The Expedited Funds Availability Act	579	(1)
Check Truncation	579	(1)
Transferable Records	580	(1)
Summary	580	(1)
Discussion Questions	581	(1)
Case Problems and Writing Assignments	581	(4)
PART 6 DEBTOR-CREDITOR RELATIONS	585	(104)
Secured Transactions: Attachment and Perfection	587	(24)
The Need for Security	588	(1)
Credit Financing and Article 9	588	(1)
Scope of Article 9	589	(5)
NRW Case 25.1 Sources of Financing	593	(1)
Attachment: The Creation of a Security Interest	594	(2)
The Security Agreement	594	(1)
The Secured Party Gives Value	595	(1)
The Debtor Acquires Rights in the Collateral	596	(1)
Perfection	596	(6)
Perfection by Filing	596	(2)
Perfection by Possession	598	(2)
Perfection by Control	600	(1)
Automatic Perfection	601	(1)
NRW Case 25.2 Perfecting a Security Interest	601	(1)
Lease Intended as Security	602	(3)
NRW Case 25.3 Moving Collateral	602	(3)
Proceeds	605	(1)
Summary	605	(1)
Discussion Questions	606	(1)
Case Problems and Writing Assignments	606	(5)
Secured Transactions: Priorities and Enforcement	611	(24)
Priorities	612	(1)
Conflicting Security Interests	612	(1)
Exceptions	613	(6)
Purchase-Money Security Interests	613	(2)
Buyers in the Ordinary Course of Business	615	(3)
Bona Fide Purchasers of Consumer Goods	618	(1)
Other Exceptions	618	(1)
NRW Case 26.1 Security Interest	618	(1)
Conflicts between Security Interests and Liens	619	(1)
Judicial Liens	619	(1)
Statutory Liens	619	(1)
Consensual Liens	620	(1)
Conflicts between Security Interests and the Trustee in Bankruptcy	620	(1)
NRW Case 26.2 Purchase-Money Security Interest	620	(1)
Enforcement of the Security Interest	621	(1)
Default	621	(1)
NRW Case 26.3 Default	622	(1)
Non-Code Remedies	622	(1)
Code Remedies	622	(7)
Right of Repossession	622	(3)
``Realizing'' on the Collateral	625	(4)
Debtors' Rights	629	(1)
Secured Parties' Duties	629	(1)
Summary	629	(1)
Discussion Questions	630	(1)
Case Problems and Writing Assignments	630	(5)
Other Credit Transactions	635	(20)
Letters of Credit	636	(1)
Unsecured Credit	637	(6)
NRW Case 27.1 Choosing Loan Terms	640	(3)
Installment Loans	643	(1)
Credit Cards	644	(1)
NRW Case 27.2 Choosing a Credit Card	644	(1)
FTC Consumer Credit Rules	645	(1)
NRW Case 27.3 The Risks of Cosigning	645	(1)
Payday Loans	646	(2)
Summary	648	(2)
Discussion Questions	650	(1)
Case Problems and Writing Assignments	650	(5)
Bankruptcy	655	(34)
Historical Background	656	(1)
The Bankruptcy Reform Act (1978)	657	(1)
Bankruptcy Amendments and Federal Judgeship Act of 1984	657	(1)
The Bankruptcy Reform Act of 1994	658	(1)
Chapter 7: Liquidation, a ``Straight'' Bankruptcy	658	(2)
Voluntary Bankruptcy Petition	659	(1)
Involuntary Bankruptcy Petition	659	(1)
The Bankruptcy Proceeding	660	(9)
The Trustee	660	(1)
Automatic Stay Provision	661	(1)
The Creditors' Meeting	661	(1)
The Debtor	661	(1)
Exemptions	661	(1)
Secured Creditors	662	(1)
Allowable Claims	663	(1)
Recovery of Property	663	(1)
Distribution of Assets	664	(1)
NRW Case 28.1 Was This a Fraudulent Conveyance?	664	(3)
The Discharge Decision	667	(2)
Chapter 11: Reorganization Plans	669	(5)
NRW Case 28.2 Chapter 11 Bankruptcy	669	(1)
The Proceedings	670	(1)
The Plan	670	(4)
Chapter 11 as a Corporate Strategy	674	(1)
Chapter 13: Repayment Plans	674	(7)
The Proceedings	675	(1)
The Plan	675	(1)
NRW Case 28.3 Chapter 13 Bankruptcy	675	(1)
1984 Bankruptcy Amendments	676	(5)
The [Proposed] Bankruptcy Reform Act	681	(1)
Bankruptcy in the International Environment	682	(1)
Summary	682	(1)
Discussion Questions	683	(1)
Case Problems and Writing Assignments	684	(5)
PART 7 AGENCY	689	(68)
Agency: Creation and Termination	691	(22)
Agency Law and Agency Relationships	692	(1)
Analysis of Agency Relationships	692	(1)
Restrictions on Creating an Agency Relationship	692	(1)
Capacity to Be a Principal	693	(1)
Capacity to Be an Agent	693	(1)
Duties an Agent Can Perform	693	(1)
Types of Agency Relationships	693	(1)
General and Special Agents	693	(1)
Gratuitous Agents	694	(1)
Servants and Independent Contractors	694	(4)
Servants	694	(1)
Independent Contractors	695	(3)
Responsibility for Independent Contractors	698	(1)
Duties of the Agent to the Principal	698	(4)
Duty of Good Faith	700	(1)
Duty of Loyalty	700	(1)
Duty to Obey All Lawful Instructions	701	(1)
Duty to Act with Reasonable Care	701	(1)
Duty to Segregate Funds	701	(1)
Duty to Account for Funds	701	(1)
Duty to Give Notice	701	(1)
Duty to Perform the Contract	701	(1)
NRW Case 29.1 The Risks of Hiring Salespeople	702	(1)
Duties of the Principal to the Agent	702	(1)
Termination of the Agency Relationship	703	(5)
Agreement of the Parties	703	(1)
Agency at Will	703	(1)
NRW Case 29.2 Protecting against Workplace Violence	703	(1)
Fulfillment of the Agency Purpose	704	(1)
Revocation	704	(1)
Renunciation	704	(2)
Operation of Law	706	(1)
Importance of Notice	706	(1)
NRW Case 29.3 Should an Employer Have an Employee Handbook?	707	(1)
Breach of Agency Agreement	707	(1)
Summary	708	(1)
Discussion Questions	708	(1)
Case Problems and Writing Assignments	709	(4)
Agency: Liability for Contracts	713	(24)
A Framework for Contractual Liability	714	(1)
Imposing Liability on the Principal	714	(7)
Actual Authority	714	(1)
Express Authority	714	(1)
Ratification Authority	715	(1)
Incidental Authority	715	(1)
Implied Authority	716	(2)
Emergency Authority	718	(1)
Apparent Authority	718	(2)
Authority by Estoppel	720	(1)
Imputing the Agent's Knowledge to the Principal	721	(1)
Disclosed Principal	721	(3)
Liability of the Agent	722	(1)
NRW Case 30.1 Honoring Sales Agent's Contracts	722	(1)
Warranty of Authority	722	(1)
Liability of the Third Party	723	(1)
Undisclosed Principal	724	(1)
Liability of the Agent	724	(1)
Liability of the Principal	724	(1)
NRW Case 30.2 The Warranty of Authority	725	(1)
Liability of the Third Party	725	(1)
Partially Disclosed Principal	725	(1)
Analysis of Agent's Contracts with Third Parties	726	(1)
Contract between the Principal and the Agent	727	(4)
The Need for a Writing	727	(1)
Covenants Not to Compete	727	(1)
NRW Case 30.3 Creating Employment Contracts to Protect Technology	728	(3)
Summary	731	(1)
Discussion Questions	731	(1)
Case Problems and Writing Assignments	732	(5)
Agency: Liability for Torts and Crimes	737	(20)
Servant's Liability	738	(1)
Master's Liability: Respondent Superior	738	(6)
Factors Listed in the Restatement of Agency	739	(2)
Time and Place of Occurrence	741	(1)
Failure to Follow Instructions	742	(1)
Failure to Act	742	(1)
Identifying the Master	742	(1)
NRW Case 31.1 Liability for Drivers Making Deliveries	742	(2)
Crimes and Intentional Torts	744	(1)
Direct Liability of the Principal	744	(1)
NRW Case 31.2 When Is Mai ``Off the Clock''?	745	(1)
Negligent Hiring	745	(1)
Indemnification	746	(3)
Analysis of a Servant's Torts	749	(1)
Injury on the Job	749	(2)
NRW Case 31.3 CD Burners and Company Computers	750	(1)
Workers' Compensation	750	(1)
Summary	751	(1)
Discussion Questions	752	(1)
Case Problems and Writing Assignments	753	(4)
PART 8 BUSINESS ORGANIZATIONS	757	(140)
Formation of a Business	759	(28)
Selecting a Business Form	760	(1)
Historical Overview of Partnerships	760	(1)
Partnerships Defined	761	(6)
Uniform Partnership Act	761	(5)
Limited Partnership	766	(1)
Partnership Property	767	(1)
The Partnership Agreement	767	(1)
NRW Case 32.1 Obtaining Necessary Capital	767	(1)
Imposed Rules	768	(1)
Express Terms	768	(1)
Limited Liability Partnerships	768	(1)
Taxation of Partnerships	769	(1)
Historical Overview of Corporations	769	(1)
Corporate Nature	770	(1)
Advantages of the Corporate Form	770	(1)
Formation of a Corporation	770	(2)
Types of Corporations	770	(1)
Promoters	771	(1)
Articles of Incorporation	771	(1)
Corporate Charter/Certificate of Incorporation	772	(1)
Organizational Meeting	772	(1)
Bylaws	772	(1)
De Jure versus De Facto Corporations	772	(2)
NRW Case 32.2 De Jure Versus De Facto Corporations	774	(1)
Corporate Powers	774	(1)
Ultra Vires Acts	774	(1)
Taxation of Corporations	774	(1)
Disregarding the Corporate Entity	775	(1)
Limited Liability Companies	776	(4)
Historical Overview of Limited Liability Companies	776	(2)
Taxation of Limited Liability Companies	778	(1)
Flexibility and Variance	779	(1)
Other Types of Business Organizations	780	(2)
Partnerships by Estoppel	780	(1)
NRW Case 32.3 Limited Liability Without Double Taxation	781	(1)
Mining Partnerships	781	(1)
Joint Ventures	781	(1)
Summary	782	(1)
Discussion Questions	782	(1)
Case Problems and Writing Assignments	783	(4)
Operation of a Business Organization	787	(32)
Operation of a Partnership	788	(1)
Rights of the Partners	788	(2)
Management	788	(1)
Reimbursement	788	(1)
NRW Case 33.1 Liability in a General Partnership	789	(1)
Profits and Losses	789	(1)
Books and Records	789	(1)
Partnership Property	789	(1)
Right to an Account	789	(1)
Duties of the Partners	790	(1)
Agency Duties	790	(1)
Fiduciary Duties	791	(1)
Rights of Third Persons Who Deal with Partnerships	791	(1)
Contracts	791	(1)
Borrowing in the Partnership Name	791	(1)
Torts and Crimes	792	(1)
Operation of a Limited Partnership	792	(2)
Operation of a Limited Liability Company	794	(1)
Operation of a Corporation	794	(2)
Rights of the Shareholders	796	(7)
Stock Certificates	796	(1)
Types of Stock Owned	796	(1)
Shareholders' Meetings	797	(3)
Dividends	800	(1)
Preemptive Stock Rights	800	(2)
Inspection of Corporate Books and Records	802	(1)
Transfer of Shares	802	(1)
Liabilities of the Shareholders	803	(1)
Watered Stock	803	(1)
Stock Subscriptions	804	(1)
Illegal Dividends	804	(1)
Dissolution	804	(1)
Rights and Duties of the Managers	804	(9)
Board of Directors	804	(4)
Officers	808	(1)
Fiduciary Duties Owed to the Corporation	809	(1)
NRW Case 33.2 Avoiding Liability	809	(3)
NRW Case 33.3 Subchapter S Corporations	812	(1)
Summary	813	(1)
Discussion Questions	814	(1)
Case Problems and Writing Assignments	815	(4)
Business Terminations and Other Extraordinary Events	819	(26)
Termination of a Franchise	820	(1)
Termination of a Sole Proprietorship	820	(1)
Termination of a Partnership under UPA	820	(1)
Dissolution of a Partnership	820	(3)
Without Violation of the Agreement	820	(1)
In Violation of the Agreement	821	(1)
By Operation of Law	821	(1)
By Court Order	821	(2)
Termination under RUPA	823	(3)
Continuation of the Partnership Business	826	(1)
Withdrawing Partners	826	(1)
Entering Partners	827	(1)
Winding Up the Partnership	827	(2)
General Partnerships	827	(1)
Limited Partnerships	828	(1)
Changes in Corporate Structure	829	(1)
Liquidation of the Corporation	829	(2)
Dissolution of the Corporation	831	(1)
Voluntary Dissolution	831	(1)
Involuntary Dissolution	832	(1)
Corporate Merger and Consolidation	832	(5)
Rationales for Merger	833	(1)
Procedure	834	(1)
NRW Case 34.1 Should NRW Diversify?	834	(1)
Effect of Merger	834	(1)
Appraisal Rights	835	(1)
NRW Case 34.2 How to Discourage a Takeover	835	(2)
Sale of Substantially All the Assets	837	(1)
NRW Case 34.3 Mergers and Acquisitions	838	(1)
Stock Acquisition	838	(1)
Termination of a Limited Liability Company	838	(1)
Summary	838	(1)
Discussion Questions	839	(1)
Case Problems and Writing Assignments	840	(5)
Franchising	845	(20)
The Significance of Franchising as a Business Method	846	(1)
Definition	846	(1)
Benefits of Franchising	847	(1)
Franchising Compared with Other Business Relationships	847	(2)
Setting Up the Franchising Relationship	849	(3)
NRW Case 35.1 Franchising NRW	849	(3)
NRW Case 35.2 Potential Problems with Franchising	852	(1)
Decisional Law and Statutes Affecting Franchising	852	(3)
Challenges to Franchising Regulatory Statutes	855	(3)
NRW Case 35.3 Quality Control over Franchises	858	(1)
The Franchising Environment	858	(1)
Industry Statistics	858	(1)
International Markets	858	(1)
Summary	859	(1)
Discussion Questions	859	(1)
Case Problems and Writing Assignments	860	(5)
Securities Regulation	865	(32)
Federal Laws	866	(20)
The Securities Act of 1933	866	(5)
NRW Case 36.1 Issuing Stock in NRW	871	(4)
The Securities Exchange Act of 1934	875	(7)
NRW Case 36.2 Insider Trading Rules Under the '34 Act	882	(1)
Securities and Exchange Commission Actions	883	(1)
Sarbanes-Oxley Act of 2002	884	(2)
State Regulation	886	(1)
The Foreign Corrupt Practices Act	887	(3)
NRW Case 36.3 How Should NRW ``Behave'' in Foreign Markets?	887	(3)
Summary	890	(1)
Discussion Questions	891	(1)
Case Problems and Writing Assignments	891	(6)
PART 9 GOVERNMENT REGULATION OF BUSINESS	897	(110)
Antitrust Law	899	(22)
The Basis of Regulatory Reform	900	(1)
The Sherman Antitrust Act	900	(6)
Section 1: Contracts, Combinations, or Conspiracies in Restraint of Trade	900	(2)
Section 2: Monopolizing and Attempts to Monopolize	902	(3)
NRW Case 37.1 Does NRW Have a Monopoly in the Relevant Market?	905	(1)
Remedies	906	(1)
The Clayton Act	906	(5)
Section 2: Price Discrimination	906	(4)
Section 3: Exclusive Dealings and Tying Arrangements	910	(1)
NRW Case 37.2 Tying Arrangements	910	(1)
Section 7: Antimerger Provisions	910	(1)
Section 8: Interlocking Directorates	911	(1)
The Federal Trade Commission Act	911	(3)
Unfair Trade Practices	914	(1)
Exemptions	915	(1)
NRW Case 37.3 What Is an ``Unfair Trade Practice?''	915	(1)
Summary	916	(1)
Discussion Questions	916	(1)
Case Problems and Writing Assignments	917	(4)
Consumer Protection	921	(22)
Consumer Credit: The Need for Regulation	922	(1)
The Consumer Credit Protection Act	922	(3)
The Fair Credit Reporting Act	925	(4)
NRW Case 38.1 Credit-Reporting Agencies	927	(2)
The Equal Credit Opportunity Act	929	(3)
NRW Case 38.2 Extending Credit	932	(1)
The Fair Debt Collection Practices Act	932	(2)
NRW Case 38.3 Debt Collection	934	(1)
The Uniform Consumer Credit Code	934	(3)
The Consumer Product Safety Act	937	(1)
Summary	937	(1)
Discussion Questions	938	(1)
Case Problems and Writing Assignments	938	(5)
Environmental Protection	943	(30)
The Environmental Protection Agency	944	(1)
The National Environmental Policy Act	944	(2)
Environmental Impact Statement	944	(2)
Council on Environmental Quality	946	(1)
Air Pollution	946	(2)
The Clean Air Act	946	(1)
The 1970 Amendments	947	(1)
The 1977 Amendments	947	(1)
The 1990 Amendments	947	(1)
Water Pollution	948	(8)
The Clean Water Act	948	(7)
Safe Drinking Water Act	955	(1)
NRW Case 39.1 Minimizing Liability for Toxic Smoke	956	(1)
Noise Pollution	956	(1)
Noise Control Act of 1972	956	(1)
NRW Case 39.2 Minimizing Liability for Water Pollution	957	(1)
Land Conservation and Pollution	957	(6)
The Toxic Substances Control Act	957	(1)
The Federal Insecticide, Fungicide, and Rodenticide Act	958	(1)
The Resource Conservation and Recovery Act	959	(1)
The Comprehensive Environmental Response, Compensation, and Liability Act	960	(3)
Wildlife Conservation	963	(3)
The Endangered Species Act	963	(2)
NRW Case 39.3 Purchasing a Possible Waste Site	965	(1)
Enforcement and Remedies	966	(1)
International Aspects	966	(1)
Summary	967	(1)
Discussion Questions	968	(1)
Case Problems and Writing Assignments	968	(5)
Labor and Fair Employment Practices	973	(34)
Labor	974	(7)
Federal Statutes	974	(6)
NRW Case 40.1 Unions	980	(1)
State Law	981	(1)
Employment	981	(21)
Fair Employment Practices Laws	981	(7)
NRW Case 40.2 Hiring Requirements	988	(1)
NRW Case 40.3 Harassment Policy	989	(8)
Occupational Safety and Health Act	997	(1)
Social Security	998	(1)
Unemployment Insurance	999	(1)
Workers' Compensation	1000	(2)
Summary	1002	(1)
Discussion Questions	1003	(1)
Case Problems and Writing Assignments	1003	(4)
PART 10 PROPERTY PROTECTION	1007
Real Property and Joint Ownership	1009	(24)
Property Rights	1010	(1)
Classification of Property	1010	(1)
Real Property Defined	1010	(3)
Definition of Real Property	1010	(1)
Definition of a Fixture	1011	(1)
The Nature of Plants	1011	(1)
State Governance	1011	(1)
Federal Regulation	1011	(2)
Acquisition of Real Property	1013	(2)
Original Occupancy	1013	(1)
Voluntary Transfer by the Owner	1014	(1)
Transfer by Will or Intestate Succession	1015	(1)
Protection of Real Property	1015	(6)
Involuntary Transfers by Operation of Law	1015	(1)
NRW Case 41.1 Protection against Claims Asserted by Material Providers	1015	(1)
Involuntary Transfers by Government Action	1016	(2)
Private Restrictions on Land Use	1018	(1)
Adverse Possession	1018	(1)
NRW Case 41.2 Zoning Restrictions	1019	(1)
Easements	1019	(2)
Rental of Real Property	1021	(3)
Types of Tenancies	1021	(1)
Rights and Duties of Tenants	1022	(1)
Rights and Duties of Landlords	1023	(1)
NRW Case 41.3 Long- or Short-term Lease?	1024	(1)
Legislative Trends	1024	(1)
Joint Ownership of Property	1025	(3)
Tenancy in Common	1025	(1)
Joint Tenancy with Rights of Survivorship	1025	(2)
Tenancy by the Entireties	1027	(1)
Community Property	1027	(1)
Distinguishing among the Forms of Joint Ownership	1028	(1)
Transfer on Death Ownership	1028	(1)
Summary	1028	(1)
Discussion Questions	1029	(1)
Case Problems and Writing Assignments	1029	(4)
Personal Property and Bailments	1033	(22)
Ownership of Property	1034	(1)
Classifications of Property	1034	(1)
Components of Ownership	1034	(1)
Acquisition of Personal Property	1034	(8)
Original Possession	1034	(1)
Voluntary Transfers of Possession	1034	(4)
Involuntary Transfers of Possession	1038	(2)
Abandoned Property	1040	(1)
Property Lost at Sea and Salvage Rights	1041	(1)
Protection of Personal Property	1042	(3)
Conversion	1042	(1)
NRW Case 42.1 Destruction of Personal Property	1043	(1)
Escheat	1043	(1)
Unclaimed Property Statutes	1044	(1)
Judicial Sale	1044	(1)
Repossession of Property	1045	(1)
Bailments of Personal Property	1045	(5)
Bailee's Duty of Care	1045	(2)
Classifications of Bailments	1047	(1)
Constructive Bailments	1048	(1)
Limitations on a Bailee's Liability	1048	(1)
NRW Case 42.4 Should NRW Purchase Insurance on Leased Production Equipment?	1048	(1)
NRW Case 42.3 Disclaimers to Avoid Liability	1049	(1)
Termination of a Bailment	1049	(1)
Bailee's Duty to Return the Property	1049	(1)
Summary	1050	(1)
Discussion Questions	1050	(1)
Case Problems and Writing Assignments	1050	(5)
Intellectual Property, Computers, and the Law	1055	(38)
Intellectual Property	1056	(1)
Copyrights	1056	(10)
Protection and Infringement	1058	(5)
Remedies	1063	(1)
International Dimensions	1063	(1)
NRW Case 43.1 Copyright Infringement	1063	(1)
Computers	1064	(2)
Patents	1066	(6)
Protection and Infringement	1067	(1)
Remedies	1068	(1)
International Dimensions	1068	(3)
Computers	1071	(1)
Trademarks	1072	(6)
Protection and Infringement	1072	(4)
Remedies	1076	(1)
NRW Case 43.2 Trademark Infringement	1077	(1)
International Dimensions	1077	(1)
Trade Secrets	1078	(3)
Protection	1078	(1)
Liability	1079	(1)
Remedies	1079	(1)
NRW Case 43.3 Patent or Trade Secret?	1080	(1)
Computers	1080	(1)
Unfair Competition	1081	(2)
Protection and Remedies	1081	(2)
Antidilution Statutes	1083	(1)
The Semiconductor Chip Protection Act of 1984	1083	(1)
Protection and Remedies	1084	(1)
Summary	1084	(1)
Discussion Questions	1085	(1)
Case Problems and Writing Assignments	1085	(8)
Wills, Estates, and Trusts	1093
The Transfer of an Estate	1094	(1)
Wills	1094	(2)
Formal Wills	1095	(1)
Holographic Wills	1095	(1)
Nuncupative Wills	1096	(1)
Matching Wills	1096	(1)
Requirements for a Valid Will	1096	(2)
Testamentary Dispositions and Restrictions	1098	(3)
Intestate Succession	1101	(1)
NRW Case 44.1 Providing for NRW and the Families	1102	(1)
Transfer of Business Interests	1102	(1)
Probate and Estate Administration	1102	(1)
Avoiding Probate	1103	(1)
Transfer Taxes	1104	(1)
Federal Transfer Taxes	1104	(1)
State Transfer Taxes	1104	(1)
Retirement Plans	1104	(1)
Durable Powers of Attorney and Living Wills	1105	(1)
Trusts Defined	1106	(1)
Express Trusts	1107	(4)
NRW Case 44.2 Protecting against Financial Hardships	1108	(1)
Private Trusts and the Rule against Perpetuities	1108	(1)
Charitable Trusts	1108	(2)
Additional Types of Express Trusts	1110	(1)
Advantages of Trusts	1111	(1)
Disadvantages of Trusts	1111	(1)
Selection of Trustees and Executors	1111	(1)
Duties of Trustees and Executors	1112	(1)
NRW Case 44.3 Creating a Trust	1112	(1)
Implied Trusts	1113	(3)
Resulting Trusts	1113	(1)
Constructive Trusts	1114	(2)
Summary	1116	(1)
Discussion Questions	1116	(1)
Case Problems and Writing Assignments	1117
Appendix A The Constitution of the United States	1	(8)
Appendix B The Uniform Commercial Code	9	(130)
Legal Dictionary	139	(10)
Case Index	149	(4)
Subject Index	153