Essentials of Business Law (with InfoTrac)

by Beatty, Jeffrey F.; Samuelson, Susan S.

• ISBN13: 9780324206364
• ISBN10: 0324206364
• Edition: 2nd
• Format: Paperback
• Copyright: 2004-02-27
• Publisher: South-Western College/West

Summary

With a clear and concise writing style, ESSENTIALS OF BUSINESS LAW is a pleasure to read. Lively examples, fascinating cases, business applications, and case summaries provide you with what you need to know about this profoundly important discipline. Test preparation is made easy with the text?s website that gives you the opportunity to take interactive quizzes and master difficult concepts.

Table of Contents

UNIT 1 INTRODUCTION	1	(218)
CHAPTER 1: INTRODUCTION TO LAW	3	(24)
Three Important Ideas about Law	4	(2)
Power	4	(1)
Importance	5	(1)
Fascination	5	(1)
Origins of Our Law	6	(8)
English Roots	7	(3)
THE OCULIST'S CASE (1329)	9	(1)
Law in the United States	10	(1)
Sources of Contemporary Law	10	(1)
Constitutions	11	(1)
Statutes	11	(1)
Common Law	12	(1)
Equity	12	(1)
Administrative Law	12	(1)
Other Sources of Law	12	(2)
Classifications of Law	14	(1)
Criminal and Civil Law	14	(1)
Substantive and Procedural Law	14	(1)
Public and Private Law	15	(1)
Jurisprudence	15	(3)
Law and Morality	15	(1)
Legal Positivism	15	(1)
Natural Law	16	(1)
Legal Realism	17	(1)
Working with the Book's Features	18	(9)
Analyzing a Case	18	(3)
OSBORNE v. STAGES MUSIC HALL, INC.	18	(3)
"You Be the Judge"	21	(8)
YOU BE THE JUDGE MCCOLLUM v. CBS, INC.	21	(6)
CHAPTER 2: BUSINESS ETHICS AND SOCIAL RESPONSIBILITY	27	(20)
Why Bother with Ethics?	29	(2)
Society As a Whole Benefits from Ethical ehavior	30	(1)
People Feel Better When They Behave Ethically	30	(1)
Unethical Behavior Can Be Very Costly	31	(1)
What Is Ethical Behavior?	31	(5)
Analyzing the Ethics Checklist	32	(4)
Applying the Ethics Checklist: Making Decisions	36	(11)
Organization's Responsibility to Society	36	(2)
Organization's Responsibility to Its Customers	38	(1)
Organization's Responsibility to Its Employees	38	(2)
Organization's Responsibility to Its Shareholders	40	(1)
Organization's Responsibility Overseas	41	(1)
Employees' Responsibility to Their Organization	42	(5)
CHAPTER 3: DISPUTE RESOLUTION	47	(30)
Three Fundamental Areas of Law	48	(1)
Dispute Prevention	48	(1)
Litigation versus Alternative Dispute Resolution	48	(1)
Alternative Dispute Resolution	49	(2)
Negotiation	49	(1)
Mediation	49	(1)
Arbitration	50	(1)
Mandatory Arbitration	50	(1)
Other Forms of ADR	51	(1)
Court Systems	51	(6)
State Courts	52	(2)
Federal Courts	54	(3)
Litigation	57	(10)
Pleadings	57	(3)
Class Actions	60	(1)
Judgment on the Pleadings	61	(1)
Discovery	61	(4)
KLUPT v. KRONGARD	63	(2)
Summary Judgment	65	(1)
JONES v. CLINTON	65	(1)
Final Preparation	66	(1)
Trial	67	(4)
Adversary System	67	(1)
Right to Jury Trial	67	(1)
Voir Dire	67	(1)
Opening Statements	68	(1)
Burden of Proof	68	(1)
Plaintiff's Case	68	(1)
Rules of Evidence	69	(1)
Motion for Directed Verdict	70	(1)
Defendant's Case	70	(1)
Closing Argument	70	(1)
Jury Instructions	70	(1)
Verdict	71	(1)
Motions after the Verdict	71	(1)
Appeals	71	(6)
PONCE v. SANDOVAL	72	(1)
Appeal Court Options	73	(4)
CHAPTER 4: COMMON LAW, STATUTORY LAW, AND ADMINISTRATIVE LAW	77	(28)
Common Law	78	(3)
Stare Decisis	78	(1)
Bystander Cases	78	(3)
TARASOFF v. REGENTS OF THE UNIVERSITY OF CALIFORNIA	80	(1)
Statutory Law	81	(10)
Bills	82	(1)
Committee Work	82	(1)
Discrimination: Congress and the Courts	83	(1)
Debate	83	(4)
Statutory Interpretation	87	(1)
GRIGGS v. DUKE POWER CO.	87	(1)
Changing Times	88	(1)
Voters' Role	88	(1)
Congressional Override	89	(1)
The Other Player: Money	90	(1)
Administrative Law	91	(6)
Background	92	(1)
Classification of Agencies	92	(1)
Executive-Independent	92	(1)
Enabling Legislation	93	(1)
The Administrative Procedure Act	93	(1)
Power of Agencies	93	(4)
STATE OF IOWA EX REL. THOMAS J. MILLER v. PUBLISHERS CLEARING HOUSE, INC.	96	(1)
Limits on Agency Power	97	(8)
Statutory Control	97	(1)
Political Control	98	(1)
Judicial Review	98	(1)
HOLLY FARMS CORP. v. NATIONAL LABOR RELATIONS BOARD	99	(1)
Informational Control and the Public	99	(6)
CHAPTER 5: CONSTITUTIONAL LAW	105	(28)
Government Power	106	(1)
One in a Million	106	(1)
Overview	106	(2)
Separation of Powers	107	(1)
Federalism	107	(1)
Individual Rights	108	(1)
Power Granted	108	(6)
Congressional Power	108	(3)
CAMPS NEWFOUND/OWATONNA, INC. v. TOWN OF HARRISON, MAINE	110	(1)
Executive Power	111	(1)
Judicial Power	112	(2)
YOUNGSTOWN SHEET & TUBE CO. v. SAWYER	113	(1)
Protected Rights	114	(19)
Incorporation	114	(1)
First Amendment: Free Speech	115	(5)
TEXAS v. JOHNSON	116	(2)
YOU BE THE JUDGE BARNES v. GLEN THEATRE, INC.	118	(1)
44 LIQUORMART, INC. v. RHODE ISLAND	119	(1)
Fifth Amendment: Due Process and the akings Clause	120	(6)
PALAZZOLO v. RHODE ISLAND	124	(2)
Fourteenth Amendment: Equal Protection Clause	126	(2)
Individual Rights and State Action	128	(5)
CHAPTER 6: TORTS	133	(28)
Intentional Torts	135	(6)
Defamation	135	(3)
YOU BE THE JUDGE YEAGLE v. COLLEGIATE TIMES	136	(2)
False Imprisonment	138	(1)
Intentional Infliction of Emotional Distress	139	(1)
JANE DOE AND NANCY ROE v. LYNN MILLS	140	(1)
Additional Intentional Torts	140	(1)
Damages	141	(3)
Compensatory Damages	141	(1)
Punitive Damages	142	(2)
Business Torts	144	(3)
Tortious Interference with Business Relations	144	(1)
Privacy and Publicity	145	(2)
Negligence	147	(10)
PALSGRAF v. LONG ISLAND RAILROAD CO.	148	(1)
Duty of Due Care	149	(1)
HERNANDEZ v. ARIZONA BOARD OF REGENTS	149	(1)
Breach of Duty	150	(2)
Factual Cause and Foreseeable Harm	152	(2)
YOU BE THE JUDGE GRIFFITH v. VALLEY OF SUN RECOVERY, INC.	154	(1)
Injury	154	(1)
REYNOLDS v. HIGHLAND MANOR, INC.	155	(1)
Damages	155	(2)
Strict Liability	157	(4)
Ultrahazardous Activity	157	(4)
CHAPTER 7: CRIME	161	(30)
Crime, Society, and Law	162	(8)
Civil Law/Criminal Law	162	(1)
Punishment	163	(2)
The Prosecution's Case	165	(1)
Defenses	166	(4)
YOU BE THE JUDGE BIEBER v. PEOPLE	167	(2)
JACOBSON v. UNITED STATES	169	(1)
Crimes That Harm Business	170	(10)
Larceny	170	(1)
Fraud	171	(1)
Arson	172	(1)
Embezzlement	172	(1)
Computer Crime	172	(2)
UNITED STATES v. MIDDLETON	173	(1)
Crimes Committed by Business	174	(1)
WISCONSIN v. KNUTSON, INC.	174	(1)
Punishing a Corporation	175	(1)
Selected Crimes Committed by Business	176	(1)
RICO	177	(3)
UNITED STATES v. MORELLI	178	(2)
Constitutional Protections	180	(11)
The Criminal Process	180	(3)
The Fourth Amendment	183	(2)
The Fifth Amendment	185	(1)
The Sixth Amendment	186	(1)
The Eighth Amendment	187	(4)
CHAPTER 8: INTERNATIONAL LAW	191	(28)
MNEs and Power	192	(1)
Trade Regulation	192	(10)
Export Controls	193	(1)
UNITED STATES v. REYES	194	(1)
Import Controls	194	(3)
MARUBENI AMERICA CORP. v. UNITED STATES	195	(2)
General Agreement on Tariffs and Trade (GATT)	197	(3)
Regional Agreements	200	(2)
International Sales Agreements	202	(8)
Direct Sales	202	(5)
CENTRIFUGAL CASTING MACHINE CO., INC. v. AMERICAN BANK & TRUST CO.	206	(1)
Indirect Sales through a Distributor	207	(3)
YOU BE THE JUDGE HARTFORD FIRE INSURANCE CO. v. CALIFORNIA	209	(1)
Licensing a Foreign Manufacturer	210	(1)
Investing Abroad	210	(11)
Repatriation of Profits	211	(1)
Expropriation	211	(2)
Foreign Corrupt Practices Act	213	(6)
UNIT 2 CONTRACTS	219	(194)
CHAPTER 9: INTRODUCTION TO CONTRACTS	221	(20)
Contracts	222	(4)
The Purpose of a Contract	222	(1)
Judicial Activism versus Judicial Restraint	223	(1)
Issues (and Answers)	223	(1)
All Shapes and Sizes	224	(1)
Contracts Defined	225	(1)
Development of Contract Law	226	(2)
DAVIS v. MASON	226	(2)
Types of Contracts	228	(4)
Bilateral and Unilateral Contracts	228	(1)
Express and Implied Contracts	229	(2)
YOU BE THE JUDGE FEDERAL EXPRESS CORP. V. DUTSCHMANN	230	(1)
Executory and Executed Contracts	231	(1)
Valid, Unenforceable, Voidable, and Void Agreements	232	(1)
Remedies Created by Judicial Activism	232	(3)
Promissory Estoppel	232	(1)
Quasi-Contract	233	(2)
VORTT EXPLORATION CO. v. CHEVRON U.S.A., INC.	234	(1)
Sources of Contract Law	235	(6)
Common Law	235	(1)
Uniform Commercial Code	236	(1)
PASS v. SHELBY AVIATION, INC.	236	(1)
Restatement (Second) of Contracts	237	(4)
CHAPTER 10: AGREEMENT	241	(24)
Meeting of the Minds	242	(1)
Offer	243	(9)
Problems with Intent,	243	(4)
QUAKE CONSTRUCTION v. AMERICAN AIRLINES	245	(2)
Problems with Definiteness	247	(2)
YOU BE THE JUDGE LEMMING v. MORGAN	248	(1)
UCC and Open Terms	249	(2)
Termination of Offers	251	(1)
Acceptance	252	(7)
Mirror Image Rule	253	(1)
UCC and the Battle of Forms	254	(3)
BAYWAY REFINING CO. v. TOSCO CORP.	256	(1)
Communication of Acceptance	257	(9)
SOLDAU v. ORGANON, INC.	258	(1)
Promissory Estoppel	259	(6)
CHAPTER 11: CONSIDERATION	265	(20)
A Bargain and an Exchange	266	(4)
KELSOE v. INTERNATIONAL WOOD PRODUCTS, INC.	267	(2)
HAMER v. SIDWAY	269	(1)
Adequacy of Consideration	270	(1)
Mutuality of Obligations	270	(8)
Illusory Promise	270	(1)
YOU BE THE JUDGE CULBERTSON v. BRODSKY	271	(1)
Sales Law: Requirements and Output Contracts	271	(2)
Past Consideration	273	(2)
DEMENTAS v. ESTATE OF TALLAS	274	(1)
Promissory Estoppel	275	(1)
Preexisting Duty	276	(2)
Settlement of Debts	278	(7)
Liquidated Debt	279	(1)
Unliquidated Debt: Accord and Satisfaction	279	(2)
EX PARTE MEZTISTA	280	(1)
UCC Exceptions	281	(4)
CHAPTER 12: LEGALITY	285	(18)
Contracts That Violate a Statute	286	(5)
Wagers	286	(1)
Insurance	287	(1)
JIMENEZ v. PROTECTIVE LIFE INSURANCE CO.	287	(1)
Licensing Statutes	288	(2)
YOU BE THE JUDGE CEVERN, INC. v. FERBISH	289	(1)
Usury	290	(1)
Contracts That Violate Public Policy	291	(12)
Restraint of Trade	291	(3)
LIAUTAUD v. LIAUTAUD	294	(1)
Exculpatory Clauses	294	(3)
STANLEY v. CREIGHTON CO.	296	(1)
Unconscionable Contracts	297	(7)
WORLDWIDE INSURANCE v. KLOPP	299	(4)
CHAPTER 13: CAPACITY AND CONSENT	303	(24)
Capacity	304	(6)
Minors	304	(4)
STAR CHEVROLET CO. v. GREEN	305	(3)
Mentally Impaired Persons	308	(2)
HAUER v. UNION STATE BANK OF WAUTOMA	309	(1)
Reality of Consent	310	(17)
Misrepresentation and Fraud	310	(7)
FIMBEL v. DeCLARK	317	(1)
Mistake	317	(3)
O'ROURKE v. JASON, INC.	318	(2)
Duress	320	(1)
Economic Duress	320	(2)
YOU BE THE JUDGE PONDER v. LINCOLN NATIONAL SALES CORP.	321	(1)
Undue Influence	322	(5)
CHAPTER 14: WRITTEN CONTRACTS	327	(22)
Contracts That Must Be in Writing	330	(6)
Agreements for an Interest in Land	330	(3)
HERSHON v. CANNON	332	(1)
Agreements That Cannot Be Performed within One Year	333	(2)
YOU BE THE JUDGE LOWINGER v. LOWINGER	334	(1)
Promise to Pay the Debt of Another	335	(1)
Promise Made by an Executor of an Estate	336	(1)
Promise Made in Consideration of Marriage	336	(1)
What the Writing Must Contain	336	(2)
Signature	336	(1)
Reasonable Certainty	337	(1)
Sale of Goods	338	(5)
UCC §2-201(1)-The Basic Rule	339	(1)
UCC §2-201(2)-The Merchants' Exception	339	(1)
GPL TREATMENT, LTD. v. LOUISIANA-PACIFIC CORP.	340	(1)
UCC §2-201(3)-Special Circumstances	340	(3)
Parol Evidence	343	(6)
HABETS v. SWANSON	344	(1)
Misrepresentation or Duress	345	(4)
CHAPTER 15: THIRD PARTIES	349	(20)
Third Party Beneficiary	350	(4)
UNITED STATES v. EL-SADIG	353	(1)
Assignment and Delegation	354	(15)
Assignment	355	(8)
PETERSON v. DISTRICT OF COLUMBIA LOTTERY AND CHARITABLE GAMES CONTROL BOARD	358	(3)
YOU BE THE JUDGE CHASE MANHATTAN BANK v. LAKE TIRE CO., INC.	361	(2)
Delegation of Duties	363	(7)
ROSENBERG v. SON, INC.	365	(4)
CHAPTER 16: PERFORMANCE AND DISCHARGE	369	(20)
Discharge	370	(1)
Defenses That Discharge	370	(1)
Conditions	371	(5)
How Conditions Are Created	371	(1)
Types of Conditions	372	(4)
ARKANSAS FARM BUREAU INS. FEDERATION v. RYMAN	374	(1)
YOU BE THE JUDGE ANDERSON v. COUNTRY LIFE INS. CO.	375	(1)
Performance	376	(4)
Strict Performance and Substantial Performance	376	(2)
FOLK v. CENTRAL NATIONAL BANK & TRUST CO.	377	(1)
Personal Satisfaction Contracts	378	(1)
Good Faith	379	(1)
Time of the Essence Clauses	380	(1)
Breach	380	(1)
Material Breach	380	(1)
Anticipatory Breach	381	(1)
Statute of Limitations	381	(1)
Impossibility	381	(8)
True Impossibility	381	(1)
Commercial Impracticability and Frustration of Purpose	382	(8)
CAPE-FRANCE ENTERPRISES v. PEED	384	(5)
CHAPTER 17: REMEDIES	389	(24)
Breaching the Contract	390	(1)
Identifying the "Interest" to Be Protected	390	(1)
Expectation Interest	391	(5)
Compensatory Damages	392	(1)
Consequential Damages	392	(3)
HADLEY v. BAXENDALE	393	(1)
YOU BE THE JUDGE LAWRENCE v. WILL DARRAH & ASSOCIATES, INC.	394	(1)
Incidental Damages	395	(1)
Sale of Goods	395	(1)
Reliance Interest	396	(2)
SULLIVAN v. OREGON LANDMARK-ONE, LTD.	397	(1)
Reliance Damages and Promissory Estoppel	398	(1)
Law and Equity	398	(1)
Restitution Interest	398	(3)
Restitution in Cases of a Valid Contract	399	(1)
PUTNAM CONSTRUCTION & REALTY CO. v. BYRD	399	(1)
Restitution in Cases of a Quasi-Contract	400	(1)
Other Equitable Interests	401	(3)
Specific Performance	401	(1)
Injunction	402	(2)
BOSTON CELTICS LIMITED PARTNERSHIP v. SHAW	403	(1)
Reformation	404	(1)
Special Issues of Damages	404	(11)
Mitigation of Damages	404	(1)
Nominal Damages	405	(1)
Liquidated Damages	405	(2)
LAKE RIDGE ACADEMY v. CARNEY	406	(1)
Punitive Damages	407	(9)
ORKIN EXTERMINATING COMPANY, INC. v. JETER	408	(5)
UNIT 3 COMMERCIAL TRANSACTIONS	413	(240)
CHAPTER 18: INTRODUCTION TO SALES	415	(24)
Development of Commercial Law	416	(3)
The Code Today	417	(1)
Harold and Maude, Revisited	418	(1)
This Unit of the Text	419	(1)
UCC Basics	419	(4)
Code's Purpose	419	(1)
Scope of Article 2	419	(2)
Merchants	421	(1)
Good Faith and Unconscionability	421	(2)
Contract Formation	423	(16)
Formation Basics: Section 2-204	423	(2)
J. LEE GREGORY, INC. v. SCANDINAVIAN HOUSE, L.P.	424	(1)
Statute of Frauds	425	(2)
SMITH v. GENERAL MILLS, INC.	426	(1)
Added Terms: Section 2-207	427	(4)
ACEROS PREFABRICADOS, S.A. v. TRADEARBED, INC.	428	(2)
SUPERIOR BOILER WORKS, INC. v. R. J. SANDERS, INC.	430	(1)
Open Terms: Sections 2-305 and 2-306	431	(1)
Modification	431	(10)
YOU BE THE JUDGE CHESTNUT FORKS TENNIS CLUB v. T.J. INTERNATIONAL, INC.	433	(6)
CHAPTER 19: OWNERSHIP AND RISK	439	(22)
Legal Interest	440	(1)
Identification, Title, and Insurable Interest	441	(4)
Existence and Identification	442	(1)
Passing of Title	442	(1)
Insurable Interest	443	(2)
VALLEY FORGE INSURANCE CO. v. GREAT AMERICAN INSURANCE CO.	444	(1)
When the Seller Has Imperfect Title	445	(5)
Bona Fide Purchaser	445	(2)
MOORE EQUIPMENT COMPANY v. H.H. HALFERTY	446	(1)
Entrustment	447	(3)
YOU BE THE JUDGE PEREZ-MEDINA v. FIRST TEAM AUCTION, INC.	449	(1)
Creditor's Rights	450	(2)
Ordinary Sales	450	(1)
Bulk Sales	450	(1)
Returnable Goods	451	(1)
Risk of Loss	452	(9)
Shipping Terms	452	(1)
When the Parties Fail to Allocate the Risk	453	(9)
HARMON v. DUNN	455	(6)
CHAPTER 20: WARRANTIES AND PRODUCT LIABILITY	461	(28)
Product Liability	462	(1)
Express Warranties	462	(3)
Affirmation of Fact or Promise	462	(1)
Description of Goods	463	(1)
Sample or Model	463	(1)
Basis of Bargain	463	(2)
DAUGHTREY v. ASHE	464	(1)
Implied Warranties	465	(4)
Implied Warranty of Merchantability	465	(2)
GOODMAN v. WENCO FOODS, INC.	466	(1)
Implied Warranty of Fitness for a Particular Purpose	467	(1)
Two Last Warranties: Title and Infringement	468	(1)
Disclaimers and Defenses	469	(7)
Disclaimers	469	(2)
Remedy Limitations	471	(3)
Privity	474	(1)
Buyer's Misconduct	475	(1)
Statute of Limitations and Notice of Breach	475	(1)
Negligence	476	(2)
YOU BE THE JUDGE BOUMELHEM v. BIC CORP.	477	(1)
Strict Liability	478	(5)
UNIROYAL GOODRICH TIRE COMPANY v. MARTINEZ	481	(1)
Time Limits: Tort versus Contract	482	(1)
Other Legislation	483	(6)
Lemon Laws	483	(1)
Consumer Protection Laws	484	(1)
Magnuson-Moss Warranty Act	484	(5)
CHAPTER 21: PERFORMANCE AND REMEDIES	489	(24)
Good Faith	490	(1)
Seller's Obligations (and a Few Rights)	490	(7)
Perfect Tender Rule	491	(1)
Restrictions on the Perfect Tender Rule	491	(6)
FERJUTZ v. HABITAT WALLPAPER & BLINDS, INC.	493	(2)
YOU BE THE JUDGE SPECIALTY TIRES OF AMERICA, INC. v. THE CIT GROUP/EQUIPMENT FINANCING, INC.	495	(2)
Buyer's Obligations (and a Few Rights)	497	(2)
Inspection and Acceptance	497	(2)
FELTNER v. D & H IMPACT MARKETING, INC.	498	(1)
Remedies: Assurance and Repudiation	499	(1)
Assurance	499	(1)
Repudiation	499	(1)
Seller's Remedies	500	(3)
Stop Delivery	500	(1)
Identify Goods to the Contract	500	(1)
Resale	500	(1)
DEUTZ-ALLIS CREDIT CORP. v. BAKIE LOGGING	501	(1)
Damages for Non-Acceptance	501	(1)
Action for the Price	502	(1)
Buyer's Remedies	503	(1)
Cover	503	(10)
Non-Delivery	504	(1)
Acceptance of Non-Conforming Goods	504	(1)
Incidental and Consequential Damages	504	(1)
SMITH v. PENBRIDGE ASSOCIATES, INC.	505	(1)
Specific Performance	505	(1)
Liquidated Damages	506	(1)
Damage Limitations and Exclusions	506	(7)
CHAPTER 22: CREATING A NEGOTIABLE INSTRUMENT	513	(24)
Commercial Paper	514	(1)
Types of Negotiable Instruments	515	(3)
Negotiability	518	(5)
Requirements for Negotiability	518	(3)
Interpretation of Ambiguities	521	(2)
In Re BOARDWALK MARKETPLACE SECURITIES LITIGATION	522	(1)
Negotiation	523	(2)
Holder in Due Course	524	(1)
Requirements for Being a Holder in Due Course	525	(12)
ROSENBAUM v. BULOW	526	(2)
HARTFORD ACCIDENT & INDEMNITY CO. v. AMERICAN EXPRESS, CO.	528	(1)
Shelter Rule	529	(1)
Defenses against a Holder in Due Course	530	(3)
YOU BE THE JUDGE GRANITE MANAGEMENT CORPORATION v. GAAR	532	(1)
Consumer Exception	533	(4)
CHAPTER 23: LIABILITY FOR NEGOTIABLE INSTRUMENTS	537	(26)
Introduction	538	(2)
The Contract versus the Instrument	538	(1)
Enforcing an Instrument	539	(1)
Primary versus Secondary Liability	539	(1)
The Payment Process	540	(1)
Signature Liability	540	(7)
Maker	540	(1)
Drawer	541
Drawee	524	(19)
FOUR CIRCLE CO-OP v. KANSAS STATE BANK & TRUST	543	(1)
Indorser	543	(1)
Accommodation Party	544	(2)
In Re COUCHOT	545	(1)
Agent	546	(1)
Warranty Liability	547	(5)
Basic Rules of Warranty Liability	547	(1)
Transfer Warranties	548	(2)
Comparison of Signature Liability and Transfer Warranties	550	(1)
Presentment Warranties	550	(2)
HSBC BANK USA v. F&M BANK-NORTHERN VIRGINIA	551	(1)
Other Liability Rules	552	(5)
Conversion Liability	552	(1)
Impostor Rule	553	(1)
Fictitious Payee Rule	553	(1)
Employee Indorsement Rule	554	(1)
Negligence	554	(2)
YOU BE THE JUDGE GULF STATES SECTION, PGA, INC. v. WHITNEY NATIONAL BANK OF NEW ORLEANS	555	(1)
Crimes	556	(1)
Discharge	557	(6)
Discharge of the Obligor	557	(1)
Discharge of an Indorser or Accommodation Party	558	(5)
CHAPTER 24: LIABILITY FOR NEGOTIABLE INSTRUMENTS: BANKS AND THEIR CUSTOMERS	563	(28)
Introduction	564	(1)
Who's Who	565	(1)
Checking Accounts	565	(9)
The Bank's Duty to Provide Information	566	(1)
The Bank's Duty to Pay	566	(1)
Wrongful Dishonor	567	(10)
CITY NATIONAL BANK OF FORT SMITH v. GOODWIN	567	(6)
YOU BE THE JUDGE PARR V. SECURITY NATIONAL BANK	573	(1)
Customer's Right to Withdraw Funds	574	(3)
Electronic Banking	577	(9)
Back to the Future	577	(2)
Electronic Fund Transfer Act	579	(5)
BROXTON-KING v. LA SALLE BANK, N.A.	580	(3)
KRUSER v. BANK OF AMERICA	583	(1)
Wire Transfers	584	(2)
Privacy	586	(5)
CHAPTER 25: SECURED TRANSACTIONS	591	(36)
Revised Article 9: Terms and Scope	592	(4)
Article 9 Revisions	594	(1)
Scope of Revised Article 9	595	(1)
Attachment of a Security Interest	596	(4)
Agreement	596	(1)
Control and Possession	597	(1)
In Re CFLC, INC.	598	(1)
Value	598	(1)
Debtor Rights in the Collateral	599	(1)
Attachment to Future Property	599	(1)
Perfection	600	(9)
Nothing Less than Perfection	600	(1)
Perfection by Filing	600	(4)
YOU BE THE JUDGE THE FIRST NATIONAL BANK OF LACON v. STRONG	602	(2)
Perfection by Possession or Control	604	(1)
HUTHER v. MARINE MIDLAND BANK, N.A.	605	(1)
Perfection of Consumer Goods	605	(3)
Perfection of Movable Collateral and Fixtures	608	(1)
Protection of Buyers	609	(6)
Buyers in Ordinary Course of Business	610	(1)
DEUTSCHE CREDIT CORR v. CASE POWER & EQUIPMENT CO.	610	(1)
Buyers of Consumer Goods	611	(2)
Buyers of Chattel Paper, Instruments, and Documents	613	(1)
Liens	613	(2)
Priorities Among Creditors	615	(4)
Filing versus Control or Possession	616	(1)
Priority Involving a Purchase Money Security Interest	616	(3)
CITIZENS BANK OF AMERICUS v. FEDERAL FINANCIAL SERVICES, INC.	618	(1)
Default and Termination	619	(8)
Default	619	(3)
Termination	622	(5)
CHAPTER 26: BANKRUPTCY	627	(26)
Overview of the Bankruptcy Code	628	(2)
Rehabilitation	629	(1)
Liquidation	629	(1)
Chapter Description	629	(1)
Goals	629	(1)
Chapter 7 Liquidation	630	(12)
Filing a Petition	630	(1)
Trustee	631	(1)
Creditors	632	(1)
Automatic Stay	632	(1)
In Re SECHUAN CITY INC.	632	(1)
Bankruptcy Estate	633	(3)
Payment of Claims	636	(1)
Discharge	637	(5)
In Re VIVIAN	638	(2)
YOU BE THE JUDGE COHEN v. DE LA CRUZ	640	(2)
Chapter 11 Reorganization	642	(4)
Debtor in Possession	643	(1)
Creditors' Committee	643	(1)
Plan of Reorganization	643	(1)
Confirmation of the Plan	643	(2)
In Re FOX	644	(1)
Discharge	645	(1)
Does Chapter 11 Work?	645	(1)
Chapter 13 Consumer Reorganizations	646	(3)
Beginning a Chapter 13 Case	647	(1)
Plan of Payment	647	(2)
In Re LEMAIRE	648	(1)
Discharge	649	(1)
Fairness under the Code	649	(4)
UNIT 4 EMPLOYMENT, BUSINESS ORGANIZATIONS, AND PROPERTY	653
CHAPTER 27: AGENCY	655	(32)
Creating an Agency Relationship	656	(3)
Consent	657	(1)
Control	657	(1)
Fiduciary Relationship	658	(1)
Elements Not Required for an Agency Relationship	658	(1)
Duties of Agents to Principals	659	(6)
Duty of Loyalty	659	(3)
ABKCO MUSIC, INC. v. HARRISONGS MUSIC, LTD.	660	(2)
Other Duties of an Agent	662	(2)
Principal's Remedies When the Agent Breaches a Duty	664	(1)
Duties of Principals to Agents	665	(1)
Duty to Reimburse the Agent	665	(1)
Duty to Cooperate	666	(1)
Terminating an Agency Relationship	666	(3)
Termination by Agent or Principal	667	(1)
Principal or Agent Can No Longer Perform Required Duties	667	(1)
Change in Circumstances	668	(1)
Effect of Termination	669	(1)
Liability	669	(18)
Principal's Liability for Contracts	669	(3)
Agent's Liability for Contracts	672	(4)
WEIL v. MURRAY	675	(1)
Principal's Liability for Torts	676	(6)
DURAN v. FURR'S SUPERMARKETS, INC.	677	(2)
YOU BE THE JUDGE CONNER v. MAGIC CITY TRUCKING SERVICE, INC.	679	(3)
Agent's Liability for Torts	682	(5)
CHAPTER 28: EMPLOYMENT LAW	687	(30)
Introduction	688	(1)
Employment Security	689	(8)
National Labor Relations Act	689	(1)
Family and Medical Leave Act	689	(1)
Wrongful Discharge	689	(8)
WELLS v. ORMET CORP.	692	(5)
Safety and Privacy in the Workplace	697	(3)
Workplace Safety	697	(1)
Employee Privacy	698	(2)
YOU BE THE JUDGE MICHAEL A. SMYTH v. THE PILLSBURY CO.	699	(1)
Financial Protection	700	(2)
Fair Labor Standards Act	700	(1)
Workers' Compensation	701	(1)
Social Security	701	(1)
Pension Benefits	702	(1)
Employment Discrimination	702	(15)
Equal Pay Act of 1963	702	(1)
Title VII	702	(7)
TERESA HARRIS v. FORKLIFT SYSTEMS, INC.	707	(2)
Age Discrimination	709	(1)
Americans with Disabilities Act	710	(9)
TOYOTA v. WILLIAMS	712	(5)
CHAPTER 29: STARTING A BUSINESS	717	(28)
Sole Proprietorships	718	(1)
General Partnerships	719	(6)
Taxes	719	(1)
Formation	720	(1)
Partnership by Estoppel	721	(1)
Liability	721	(1)
Management	722	(1)
MARSH v. GENTRY	723	(1)
Terminating a Partnership	723	(2)
Limited Liability Partnerships	725	(1)
Professional Corporations	726	(1)
Limited Partnerships and Limited Liability Limited Partnerships	726	(3)
Structure	727	(1)
Liability	727	(1)
Taxes	727	(1)
Formation	727	(1)
YOU BE THE JUDGE CELLWAVE TELEPHONE SERVICES L.P. v. FCC	728	(1)
Management	728	(1)
Transfer of Ownership	729	(1)
Duration	729	(1)
Corporations	729	(5)
Corporations in General	729	(2)
Close Corporations	731	(2)
MICHAEL L. RETZER v. NANCY B. RETZER	732	(1)
S Corporations	733	(1)
Limited Liability Companies	734	(2)
Formation	734	(1)
Limited Liability	734	(1)
ANTHONY v. BLUM	734	(1)
Tax Status	735	(1)
Flexibility	735	(1)
Standard Forms	735	(1)
Transferability of Interests	735	(1)
Duration	735	(1)
Going Public	735	(1)
Changing Forms	736	(1)
Joint Ventures	736	(1)
Franchises	736	(9)
BIXBY'S FOOD SYSTEMS, INC. v. MCKAY	739	(6)
CHAPTER 30: CORPORATIONS	745	(32)
Incorporation Process	746	(4)
Where to Incorporate?	747	(1)
The Charter	747	(3)
After Incorporation	750	(3)
Directors and Officers	750	(1)
Bylaws	751	(2)
In Re BIGMAR	752	(1)
Issuing Debt	753	(1)
Death of the Corporation	753	(2)
Piercing the Corporate Veil	753	(2)
RICE v. ORIENTAL FIREWORKS CO.	754	(1)
Termination	755	(1)
The Role of Corporate Management	755	(1)
The Business Judgment Rule	756	(6)
Duty of Loyalty	757	(1)
Duty of Care	758	(4)
YOU BE THE JUDGE SMITH v. VAN GORKOM	759	(3)
Takeovers	762	(2)
Federal Regulation of Tender Offers: The Williams Act	763	(1)
State Regulation of Takeovers	763	(1)
The Role of Shareholders	764	(1)
Rights of Shareholders	765	(6)
Right to Information	766	(1)
Right to Vote	766	(5)
BREHM v. EISNER	770	(1)
Right to Dissent	771	(1)
Right to Protection from Other Shareholders	771	(1)
Enforcing Shareholder Rights	771	(7)
Derivative Lawsuits	771	(1)
Direct Lawsuits	772	(1)
Class Action Lawsuits	772	(5)
CHAPTER 31: PROPERTY	777	(1)
REAL PROPERTY	778	(29)
Nature of Real Property	778	(1)
Estates in Real Property	779	(2)
Freehold Estates	779	(2)
WALTON v. CITY OF RED BLUFF	780	(1)
Concurrent Estates	781	(1)
Nonpossessory Interests	781	(2)
Easements	781	(1)
CARVIN v. ARKANSAS POWER AND LIGHT	782	(1)
Profit	782	(1)
License	783	(1)
Mortgage	783	(1)
Sale of Real Property	783	(2)
Seller's Obligations Concerning the Property	783	(1)
Sales Contract and Title Examination	784	(1)
Closing and Deeds	784	(1)
Recording	784	(1)
Land Use Regulation	785	(2)
Zoning	785	(1)
Eminent Domain	786	(1)
LANDLORD-TENANT LAW	786	(1)
Three Legal Areas Combined	787	(1)
Lease	787	(1)
Types of Tenancy	787	(1)
Tenancy for Years	787	(1)
Periodic Tenancy	788	(1)
Tenancy at Will	788	(1)
Tenancy at Sufferance	788	(1)
Landlord's Duties	788	(4)
Duty to Deliver Possession	788	(1)
Quiet Enjoyment	788	(1)
Duty to Maintain Premises	789	(1)
Duty to Return Security Deposit	790	(2)
HARRIS v. SOLEY	791	(1)
Tenant's Duties	792	(1)
Duty to Pay Rent	792	(1)
Duty to Use Premises Properly	792	(1)
Injuries	792	(3)
Tenant's Liability	792	(1)
Landlord's Liability	792	(2)
YOU BE THE JUDGE MCGUIRE v. K & G MANAGEMENT CO.	793	(1)
YOU BE THE JUDGE MATTHEWS v. AMBERWOOD ASSOCIATES LIMITED PARTNERSHIP, INC.	794	(1)
Crime	794	(1)
PERSONAL PROPERTY	795	(1)
Gifts	795	(12)
Intention to Transfer Ownership	795	(1)
Delivery	796	(1)
Inter Vivos Gifts and Gifts Causa Mortis	796	(1)
Acceptance	797	(1)
YOU BE THE JUDGE ALBINGER v. HARRIS	797	(1)
Bailment	798	(1)
Control	799	(1)
Rights of the Bailee	799	(1)
Duties of the Bailee 800 Due Care	800	(2)
GIN v. WACKENHUT CORP.	801	(1)
Liability for Defects	802	(5)
CHAPTER 32: CYBERLAW	807	(24)
Privacy	808	(10)
Internet Tracking	809	(2)
Self Regulation of Online Privacy	811	(1)
Government Regulation of Online Privacy	812	(2)
Your Hard Drive As Witness (Against You)	814	(2)
UNITED STATES OF AMERICA v. ANGEVINE	815	(1)
E-Mail	816	(2)
YOU BE THE JUDGE BILL MCLAREN, JR. v. MICROSOFT CORPORATION	817	(1)
Crime on the Internet	818	(5)
Hacking	819	(1)
Fraud	819	(4)
Internet Service Providers and Web Hosts	823	(8)
Spam	823	(2)
WASHINGTON v. HECKEL	824	(1)
Communications Decency Act of 1996	825	(8)
JOHN DOES v. FRANCO PRODUCTIONS	826	(5)
CHAPTER 33: INTELLECTUAL PROPERTY	831
Introduction	832	(1)
Patents	833	(4)
Types of Patents	833	(2)
STATE STREET BANK & TRUST CO. v. SIGNATURE FINANCIAL GROUP, INC.	834	(1)
Requirements for a Patent	835	(1)
Patent Application and Issuance	835	(2)
Copyrights	837	(8)
Infringement	838	(1)
Fair Use	838	(2)
Linking	840	(1)
Digital Music and Movies	841	(3)
YOU BE THE JUDGE UNIVERSAL CITY STUDIOS, INC. v. ERIC CORLEY	843	(1)
International Copyright Treaties	844	(1)
Trademarks	845	(5)
Types of Marks	845	(1)
Ownership and Registration	845	(1)
Valid Trademarks	846	(2)
QUALITEX & CO. v. JACOBSON PRODUCTS, INC.	848	(1)
Infringement	848	(1)
Federal Trademark Dilution Act of 1995	849	(1)
Domain Names	849	(1)
International Trademark Treaties	850	(1)
Trade Secrets	850
MORLIFE, INC. v. PERRY	852
Appendix A The Constitution of the United States	A-1
Appendix B Uniform Commercial Code (Excerpts)	B-1
Glossary	G-1
Table of Cases	T-1
Index	1-1