The Law, Sales, and Marketing - 2012 Book Archive

1036 Pages·2012·7.47 MB·English

The Law, Sales, and
Marketing
v. 1.0
This is the bookThe Law, Sales, and Marketing(v. 1.0).
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ii
Table of Contents
About the Authors................................................................................................................. 1
Acknowledgments................................................................................................................. 4
Preface..................................................................................................................................... 5
Chapter 1: Introduction to Law and Legal Systems....................................................... 7
What Is Law?...................................................................................................................................................8
Schools of Legal Thought............................................................................................................................10
Basic Concepts and Categories of US Positive Law...................................................................................16
Sources of Law and Their Priority..............................................................................................................22
Legal and Political Systems of the World..................................................................................................31
A Sample Case...............................................................................................................................................33
Summary and Exercises..............................................................................................................................39
Chapter 2: Corporate Social Responsibility and Business Ethics ............................. 43
What Is Ethics?.............................................................................................................................................45
Major Ethical Perspectives..........................................................................................................................51
An Ethical Decision Model...........................................................................................................................62
Corporations and Corporate Governance..................................................................................................65
Summary and Exercises..............................................................................................................................77
Chapter 3: Courts and the Legal Process ....................................................................... 82
The Relationship between State and Federal Court Systems in the United States...............................84
The Problem of Jurisdiction........................................................................................................................91
Motions and Discovery..............................................................................................................................110
The Pretrial and Trial Phase.....................................................................................................................113
Judgment, Appeal, and Execution............................................................................................................119
When Can Someone Bring a Lawsuit?......................................................................................................123
Relations with Lawyers..............................................................................................................................126
Alternative Means of Resolving Disputes................................................................................................129
Cases............................................................................................................................................................132
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Chapter 4: Constitutional Law and US Commerce..................................................... 140
Basic Aspects of the US Constitution.......................................................................................................141
The Commerce Clause...............................................................................................................................146
Dormant Commerce Clause.......................................................................................................................153
Preemption: The Supremacy Clause........................................................................................................158
Business and the Bill of Rights..................................................................................................................162
Cases............................................................................................................................................................172
Summary and Exercises............................................................................................................................194
Chapter 5: Administrative Law...................................................................................... 199
Administrative Agencies: Their Structure and Powers.........................................................................200
Controlling Administrative Agencies.......................................................................................................208
The Administrative Procedure Act..........................................................................................................211
Administrative Burdens on Business Operations...................................................................................214
The Scope of Judicial Review....................................................................................................................218
Cases............................................................................................................................................................223
Summary and Exercises............................................................................................................................230
Chapter 6: Criminal Law.................................................................................................. 235
The Nature of Criminal Law......................................................................................................................236
Types of Crimes..........................................................................................................................................239
The Nature of a Criminal Act....................................................................................................................249
Responsibility.............................................................................................................................................253
Procedure....................................................................................................................................................256
Constitutional Rights of the Accused.......................................................................................................259
Cases............................................................................................................................................................263
Summary and Exercises............................................................................................................................270
Chapter 7: Introduction to Tort Law............................................................................. 275
Purpose of Tort Laws.................................................................................................................................276
Intentional Torts........................................................................................................................................282
Negligence..................................................................................................................................................291
Strict Liability.............................................................................................................................................299
Cases............................................................................................................................................................303
Summary and Exercises............................................................................................................................315
Chapter 8: Introduction to Contract Law..................................................................... 319
General Perspectives on Contracts..........................................................................................................320
Sources of Contract Law............................................................................................................................324
Basic Taxonomy of Contracts...................................................................................................................329
Cases............................................................................................................................................................335
Summary and Exercises............................................................................................................................344
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Chapter 9: The Agreement.............................................................................................. 350
The Agreement in General........................................................................................................................351
The Offer.....................................................................................................................................................354
The Acceptance..........................................................................................................................................365
Cases............................................................................................................................................................371
Summary and Exercises............................................................................................................................379
Chapter 10: Real Assent................................................................................................... 385
Duress and Undue Influence.....................................................................................................................386
Misrepresentation......................................................................................................................................390
Mistake........................................................................................................................................................399
Capacity.......................................................................................................................................................402
Cases............................................................................................................................................................408
Summary and Exercises............................................................................................................................419
Chapter 11: Consideration .............................................................................................. 425
General Perspectives on Consideration...................................................................................................426
Legal Sufficiency........................................................................................................................................429
Promises Enforceable without Consideration.........................................................................................438
Cases............................................................................................................................................................444
Summary and Exercises............................................................................................................................452
Chapter 12: Legality.......................................................................................................... 458
General Perspectives on Illegality............................................................................................................459
Agreements in Violation of Statute.........................................................................................................462
Bargains Made Illegal by Common Law...................................................................................................467
Effect of Illegality and Exceptions............................................................................................................473
Cases............................................................................................................................................................476
Summary and Exercises............................................................................................................................485
Chapter 13: Form and Meaning ..................................................................................... 491
The Statute of Frauds................................................................................................................................492
The Parol Evidence Rule............................................................................................................................504
Interpretation of Agreements: Practicalities versus Legalities............................................................509
Cases............................................................................................................................................................513
Summary and Exercises............................................................................................................................521
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Chapter 14: Third-Party Rights ..................................................................................... 526
Assignment of Contract Rights.................................................................................................................527
Delegation of Duties...................................................................................................................................535
Third-Party Beneficiaries..........................................................................................................................539
Cases............................................................................................................................................................543
Summary and Exercises............................................................................................................................552
Chapter 15: Discharge of Obligations........................................................................... 558
Discharge of Contract Duties....................................................................................................................559
Cases............................................................................................................................................................576
Summary and Exercises............................................................................................................................585
Chapter 16: Remedies....................................................................................................... 591
Theory of Contract Remedies...................................................................................................................592
Promisee’s Interests Protected by Contract............................................................................................594
Legal Remedies: Damages..........................................................................................................................596
Equitable Remedies....................................................................................................................................601
Limitations on Contract Remedies...........................................................................................................606
Cases............................................................................................................................................................615
Summary and Exercises............................................................................................................................627
Chapter 17: Introduction to Sales and Leases............................................................. 633
Commercial Transactions: the Uniform Commercial Code...................................................................634
Introduction to Sales and Lease Law, and the Convention on Contracts for the International Sale of
Goods...........................................................................................................................................................638
Sales Law Compared with Common-Law Contracts and the CISG........................................................644
General Obligations under UCC Article 2................................................................................................649
Cases............................................................................................................................................................654
Summary and Exercises............................................................................................................................667
Chapter 18: Title and Risk of Loss................................................................................. 672
Transfer of Title.........................................................................................................................................673
Title from Nonowners...............................................................................................................................680
Risk of Loss..................................................................................................................................................686
Cases............................................................................................................................................................693
Summary and Exercises............................................................................................................................702
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Chapter 19: Performance and Remedies...................................................................... 708
Performance by the Seller.........................................................................................................................709
Performance by Buyer...............................................................................................................................715
Remedies.....................................................................................................................................................721
Excuses for Nonperformance....................................................................................................................736
Cases............................................................................................................................................................740
Summary and Exercises............................................................................................................................753
Chapter 20: Products Liability ....................................................................................... 762
Introduction: Why Products-Liability Law Is Important.......................................................................763
Warranties..................................................................................................................................................768
Negligence..................................................................................................................................................781
Strict Liability in Tort................................................................................................................................785
Tort Reform................................................................................................................................................794
Cases............................................................................................................................................................798
Summary and Exercises............................................................................................................................809
Chapter 21: Bailments and the Storage, Shipment, and Leasing of Goods........... 817
Introduction to Bailment Law..................................................................................................................818
Liability of the Parties to a Bailment.......................................................................................................824
The Storage and Shipping of Goods.........................................................................................................831
Negotiation and Transfer of Documents of Title (or Commodity Paper).............................................844
Cases............................................................................................................................................................848
Summary and Exercises............................................................................................................................862
Chapter 22: Intellectual Property.................................................................................. 871
Patents.........................................................................................................................................................873
Trade Secrets..............................................................................................................................................880
Copyright....................................................................................................................................................885
Trademarks.................................................................................................................................................892
Cases............................................................................................................................................................897
Summary and Exercises............................................................................................................................906
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Chapter 23: Antitrust Law............................................................................................... 910
History and Basic Framework of Antitrust Laws in the United States.................................................911
Horizontal Restraints of Trade.................................................................................................................923
Vertical Restraints of Trade......................................................................................................................930
Price Discrimination: The Robinson-Patman Act...................................................................................938
Exemptions.................................................................................................................................................948
Sherman Act, Section 2: Concentrations of Market Power...................................................................951
Acquisitions and Mergers under Section 7 of the Clayton Act..............................................................959
Cases............................................................................................................................................................969
Summary and Exercises............................................................................................................................988
Chapter 24: Unfair Trade Practices and the Federal Trade Commission ............. 998
The Federal Trade Commission: Powers and Law Governing Deceptive Acts.....................................999
Deceptive Acts and Practices..................................................................................................................1003
Unfair Trade Practices.............................................................................................................................1010
Remedies...................................................................................................................................................1014
Cases..........................................................................................................................................................1017
Summary and Exercises..........................................................................................................................1024
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About the Authors
Don Mayer
Don Mayer teaches law, ethics, public policy, and
sustainability at the Daniels College of Business,
University of Denver, where he is professor in
residence. His research focuses on the role of business
in creating a more just, sustainable, peaceful, and
productive world. With James O’Toole, Professor Mayer
has coedited and contributed content toGood Business:
Exercising Effective and Ethical Leadership(Routledge,
2010). He is also coauthor ofInternational Business Law:
Cases and Materials, which is in its fifth edition with
Pearson Publishing Company. He recently served as the
first Arsht Visiting Ethics Scholar at the University of
Miami.
After earning a philosophy degree from Kenyon College and a law degree from Duke
University Law School, Professor Mayer served as a Judge Advocate General’s (JAG)
Corps officer in the United States Air Force during the Vietnam conflict and went
into private practice in North Carolina. In 1985, he earned his LLM in international
and comparative law at the Georgetown University Law Center. Later that year, he
began his academic career at Western Carolina University and proceeded to become
a full professor at Oakland University in Rochester, Michigan, where he taught for
many years before moving to the University of Denver. He has taught as a visitor at
California State Polytechnic University, the University of Michigan, the Manchester
Business School Worldwide, and Antwerp Management School.
Professor Mayer has won numerous awards from the Academy of Legal Studies in
Business, including the Hoeber Award for best article in theAmerican Business Law
Journal, the Maurer Award for best article on business ethics (twice), and the Ralph
Bunche Award for best article on international business law (three times). His work
has been published in many journals and law reviews but most often inAmerican
Business Law Journal, theJournal of Business Ethics, and theBusiness Ethics Quarterly.
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About the Authors
Daniel M. Warner
Daniel M. Warner is a magna cum laude graduate of the
University of Washington, where—following military
service—he also attended law school. In 1978, after
several years of civil practice, he joined the faculty at
the College of Business and Economics at Western
Washington University, where he is now a professor of
business legal studies in the Accounting Department. He
has published extensively, exploring the intersection of
popular culture and the law, and has received the
College of Business Dean’s Research Award five times for
“distinguished contributions in published research.”
Professor Warner served on the Whatcom County
Council for eight years (two years as its chair). He has
served on the Faculty Senate and on various university and college committees,
including as chairman of the University Master Plan Committee. Professor Warner
has also been active in state bar association committee work and in local politics,
where he has served on numerous boards and commissions for over thirty years.
George J. Siedel
George J. Siedel’s research addresses legal issues that
relate to international business law, negotiation, and
dispute resolution. Recent publications focus on
proactive law and the use of law to gain competitive
advantage. His work in progress includes research on
the impact of litigation on large corporations and the
use of electronic communication as evidence in
litigation.
Professor Siedel has been admitted to practice before
the United States Supreme Court and in Michigan, Ohio,
and Florida. Following graduation from law school, he
worked as an attorney in a professional corporation. He has also served on several
boards of directors and as associate dean of the University of Michigan Business
School.
The author of numerous books and articles, Professor Siedel has received several
research awards, including the Faculty Recognition Award from the University of
Michigan and the following awards from the Academy of Legal Studies in Business:
the Hoeber Award, the Ralph Bunche Award, and the Maurer Award. The Center for
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