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N i n t h E d i t i o n
Fundamentals of Business Law:
Summarized Cases
Roger LeRoy Miller
Institute for University Studies
Arlington, Texas
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Elk III/Lonely Planet I
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Business Law:
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1 2 3 4 5 6 7 15 14 13 12 11
Contents in Brief
Unit One Chapter 9 Consideration, Capacity, and Legality 162
The Legal Environment Chapter 10 Defenses to Contract Enforceability 178
of Business 1
Chapter 11 Third Party Rights and Discharge 193
Chapter 12 Breach and Remedies 211
Chapter 1 The Legal and Constitutional
Environment of Business 2
Unit Four
Appendix to Chapter 1 19
Sales and Lease Contracts 225
Chapter 2 Traditional and Online
Dispute Resolution 28
Chapter 3 Ethics and Business Decision Making 50
Chapter 13 The Formation of
Unit Two Sales and Lease Contracts 226
Torts and Crimes 67 Appendix to Chapter 13 248
Chapter 14 Performance and Breach
of Sales and Lease Contracts 252
Chapter 15 Warranties and Product Liability 269
Chapter 4 Torts and Cyber Torts 68
Chapter 5 Intellectual Property and Internet Law 88
Chapter 6 Criminal Law and Cyber Crime 106 Unit Five
Negotiable Instruments 289
Unit Three
Contracts 131
Chapter 16 Negotiability, Transferability,
and Liability 290
Chapter 7 Nature and Classification 132
Chapter 17 Checks and Banking
Chapter 8 Agreement in in the Digital Age 315
Traditional and E-Contracts 144
iii
iv CONTENTS IN BRIEF
Unit Six Unit Nine
Debtor-Creditor Property and Its Protection 525
Relationships 335
Chapter 18 Security Interests Chapter 27 Personal Property and Bailments 526
in Personal Property 336
Chapter 28 Real Property and
Chapter 19 Creditors’ Rights and Bankruptcy 354 Landlord-Tenant Law 541
Chapter 20 Mortgages and Foreclosures Chapter 29 Insurance, Wills, and Trusts 555
after the Recession 378
Unit Ten
Unit Seven Special Topics 577
Employment Relations 395
Chapter 30 Liability of Accountants
and Other Professionals 578
Chapter 21 Agency Relationships 396
Chapter 31 International Law
Chapter 22 Employment, Immigration,
in a Global Economy 593
and Labor Law 414
Appendices
Unit Eight
Appendix A How to Brief Cases
Business Organizations 443
and Analyze Case Problems A–1
Appendix B The Constitution of the United States A–4
Appendix C The Uniform Commercial Code
(Excerpts) A–11
Chapter 23 Sole Proprietorships, Partnerships, Appendix D The Sarbanes-Oxley Act of 2002
and Limited Liability Companies 444
(Excerpts and Explanatory
Chapter 24 Corporate Formation, Comments) A–120
Financing, and Termination 461 Appendix E Sample Answers for Select
Questions with Sample Answer A–126
Chapter 25 Corporate Directors,
Officers, and Shareholders 483 Appendix F Sample Answers for
Case Problems with Sample Answer A–128
Chapter 26 Investor Protection, Insider Trading,
Appendix G Answers to Issue Spotters A–135
and Corporate Governance 502
Glossary G–1
Table of Cases TC–1
Index I–1
Contents
Downey v. Bob’s Discount Furniture Holdings, Inc. (2011) 40
Unit One
The Courts Adapt to the Online World 41
The Legal Environment Alternative Dispute Resolution 42
of Business 1 Reviewing . . . Traditional and Online Dispute Resolution 45
Terms and Concepts (cid:115) Chapter Summary (cid:115) ExamPrep (cid:115)
For Review (cid:115) Questions and Case Problems
CChhaapptteerr 11 The Legal and Constitutional CChhaapptteerr 33 Ethics and Business Decision Making 50
Environment of Business 2
Business Ethics 50
Business Activities and the Legal Environment 2 Skilling v. United States (2010) 51
Sources of American Law 3 Mathews v. B and K Foods, Inc. (2011) 52
The Common Law Tradition 5 Krasner v. HSH Nordbank AG (2010) 53
Classifications of Law 6 Ethical Transgressions by Financial Institutions 54
The Constitution As It Affects Business 8 Approaches to Ethical Reasoning 55
Making Ethical Business Decisions 57
Family Winemakers of California v. Jenkins (2010) 9
Practical Solutions to Corporate Ethics Questions 58
Bad Frog Brewery, Inc. v. New York State Liquor Authority (1998) 11
Business Ethics on a Global Level 58
Adapting the Law to the Online Environment The Supreme Court
Upholds a Law that Prohibits Pandering Virtual Child Pornography 13 Adapting the Law to the Online Environment Corporate Reputations
Trunk v. City of San Diego (2011) 14 under Attack 59
Reviewing . . . The Legal and Constitutional Environment of Business 15 Reviewing . . . Ethics and Business Decision Making 60
Terms and Concepts (cid:115) Chapter Summary (cid:115) ExamPrep (cid:115) Terms and Concepts (cid:115) Chapter Summary (cid:115) ExamPrep (cid:115)
For Review (cid:115) Questions and Case Problems For Review (cid:115) Questions and Case Problems
Unit One Unit Case Study with Dissenting Opinion:
Appendix to Chapter 1: Finding and Analyzing the Law 19
Paduano v. American Honda Motor Co. 64
Finding Statutory and Administrative Law 19
Finding Case Law 19
Unit Two
Reading and Understanding Case Law 20
Torts and Crimes 67
CChhaapptteerr 22 Traditional and Online
Dispute Resolution 28
The Judiciary’s Role in American Government 28
Basic Judicial Requirements 29
CChhaapptteerr 44 Torts and Cyber Torts 68
Southern Prestige Industries, Inc. v. Independence Plating Corp. (2010) 30
Gucci America, Inc. v. Wang Huoqing (2011) 32
The Basis of Tort Law 68
The State and Federal Court Systems 33
Following a State Court Case 36 Hamlin v. Hampton Lumber Mills, Inc. (2011) 69
Intentional Torts against Persons 70
Adapting the Law to the Online Environment The Duty to Preserve
E-Evidence for Discovery 39 Orlando v. Cole (2010) 72
v
vi CONTENTS
Intentional Torts against Property 76 Unit Two Unit Case Study with Dissenting Opinion:
Unintentional Torts (Negligence) 78 MedImmune, Inc. v. Genentech, Inc. 129
Wolf v. Don Dingmann Construction, Inc. (2011) 81
Strict Liability 83 Unit Three
Cyber Torts—Online Defamation 83
Contracts 131
Reviewing . . . Torts and Cyber Torts 84
Terms and Concepts (cid:115) Chapter Summary (cid:115) ExamPrep (cid:115)
For Review (cid:115) Questions and Case Problems
CChhaapptteerr 55 Intellectual Property
and Internet Law 88
CChhaapptteerr 77 Nature and Classification 132
Trademarks and Related Property 89
An Overview of Contract Law 132
Coca-Cola Co. v. Koke Co. of America (1920) 89 Elements of a Contract 133
Cyber Marks 92 Types of Contracts 134
Patents 93
Schwarzrock v. Remote Technologies, Inc. (2011) 135
Adapting the Law to the Online Environment Should the Law Quasi Contracts 136
Continue to Allow Business Process Patents? 95
Scheerer v. Fisher (2010) 137
Copyrights 96
Interpretation of Contracts 138
UMG Recordings, Inc. v. Augusto (2011) 97
U.S. Bank, N.A. v. Tennessee Farmers Mutual Insurance Co. (2009) 139
Maverick Recording Co. v. Harper (2010) 99
Reviewing . . . Nature and Classification 140
Trade Secrets 100
Terms and Concepts (cid:115) Chapter Summary (cid:115) ExamPrep (cid:115)
International Protection for Intellectual Property 101
For Review (cid:115) Questions and Case Problems
Reviewing . . . Intellectual Property and Internet Law 102
Terms and Concepts (cid:115) Chapter Summary (cid:115) ExamPrep (cid:115) CChhaapptteerr 88 Agreement in
For Review (cid:115) Questions and Case Problems
Traditional and E-Contracts 144
CChhaapptteerr 66 Criminal Law and Cyber Crime 106
Agreement 144
Lucy v. Zehmer (1954) 145
Civil Law and Criminal Law 106
Alexander v. Lafayette Crime Stoppers, Inc. (2010) 147
Criminal Liability 108
Powerhouse Custom Homes, Inc. v. 84 Lumber Co. (2011) 151
Types of Crimes 109
Agreement in E-Contracts 152
People v. Sisuphan (2010) 111
The Uniform Electronic Transactions Act 154
Defenses to Criminal Liability 113
Management Perspective E-Mailed Credit-Card Receipts 155
Management Perspective Can a Businessperson Use Deadly Force to
Reviewing . . . Agreement in Traditional and E-Contracts 157
Prevent a Crime on the Premises? 115
Terms and Concepts (cid:115) Chapter Summary (cid:115) ExamPrep (cid:115)
Constitutional Safeguards and Criminal Procedures 115
For Review (cid:115) Questions and Case Problems
Herring v. United States (2009) 117
Criminal Process 118 CChhaapptteerr 99 Consideration, Capacity,
Cyber Crime 120 and Legality 162
United States v. Oliver (2011) 121
Adapting the Law to the Online Environment Student Plagiarism and
Consideration 162
the Computer Fraud and Abuse Act 124
Reviewing . . . Criminal Law and Cyber Crime 125 Harvey v. Dow (2011) 165
Terms and Concepts (cid:115) Chapter Summary (cid:115) ExamPrep (cid:115) Contractual Capacity 166
For Review (cid:115) Questions and Case Problems Legality 168
