Business Law Today: The Essentials Text and Summarized Cases, 13th Edition
By Roger LeRoy Miller
Contents:
Chapter 1
Legal and Constitutional Foundations
of Business 1
Sources of American Law 2
The Common Law 6
Classifications of Law 9
The Constitutional Powers of Government 10
Case 1.1: Classy Cycles, Inc. v. Panama City Beach 11
Classic Case 1.2: Heart of Atlanta Motel v. United States 12
Business and the Bill of Rights 14
■ Adapting the Law to the Online Environment: Social Media
and the Constitution 16
Spotlight on Beer Labels: Case 1.3: Bad Frog Brewery, Inc. v.
New York State Liquor Authority 19
■ Business Law Analysis: Determining When Public
Religious Displays Violate the Establishment Clause 21
Due Process, Equal Protection, and Privacy 22
■ Cybersecurity and the Law: Should Apple Help Law Enforcement? 25
Appendix to Chapter 1: Finding and Analyzing the Law 31
Finding Statutory and Administrative Law 31
Finding Case Law 32
Reading and Understanding Case Law 34
Exhibit 1A–3 A Sample Court Case 38
Adelman’s Truck Parts Corp. v. Jones Transport 38
Chapter 2
Courts and Alternative Dispute Resolution 40
The Judiciary’s Role in American Government 41
■ Landmark in the Law: Marbury v. Madison (1803) 41
Basic Judicial Requirements 42
Spotlight on Gucci: Case 2.1: Gucci America, Inc. v. Wang Huoqing 47
The State and Federal Court Systems 48
Case 2.2: Oxford Tower Apartments, LP v. Frenchie’s Hair Boutique 50
Following a State Court Case 53
■ Adapting the Law to the Online Environment: Using Social
Media for Service of Process 54
Case 2.3: Klipsch Group, Inc. v. ePRO E-Commerce Limited 59
Courts Online 62
Alternative Dispute Resolution 63
■ Business Web Log: Samsung and Forced Arbitration 66
Chapter 3
Ethics in Business 74
Ethics and the Role of Business 75
■ Business Web Log: Bogus Bank and Credit Card Accounts at Wells Fargo Bank 76
■ Adapting the Law to the Online Environment:
Should Employees Have a “Right of Disconnecting”? 78
Case 3.1: Al-Dabagh v. Case Western Reserve University 80
Ethical Principles and Philosophies 81
Sources of Ethical Issues in Business Decisions 86
Case 3.2: Watson Laboratories, Inc. v. State of Mississippi 86
Making Ethical Business Decisions 89
■ Business Law Analysis: Applying the IDDR Framework 93
Business Ethics on a Global Level 93
Appendix to Chapter 3 101
Costco Code of Ethics 101
Chapter 4
Tort Law 102
The Basis of Tort Law 102
Intentional Torts against Persons 104
■ Business Law Analysis: Analyzing Intentional Infliction of Emotional Distress Claims 106
Case 4.1: Sky v. Van Der Westhuizen 108
■ Adapting the Law to the Online Environment:
Revenge Porn and Invasion of Privacy 111
Intentional Torts against Property 115
Negligence 117
■ Landmark in the Law: Palsgraf v. Long Island Railroad Co. (1928) 120
Spotlight on the Seattle Mariners: Case 4.2: Taylor v. Baseball
Club of Seattle, L.P. 122
Strict Liability 123
Product Liability 123
■ Business Web Log: Johnson & Johnson Faces Continuing
Lawsuits Over Its Talcum Powder 124
Case 4.3: Primal Vantage Co. v. O’Bryan 125
■ Cybersecurity and the Law: The Internet of Things 127
Chapter 5
Intellectual Property Rights 136
Trademarks 137
Classic Case 5.1: Coca-Cola Co. v. Koke Co. of America 137
■ Business Web Log: Amazon Faces Fake Products 142
Patents 144
■ Business Law Analysis: The Impact of Patent Time Limits 144
Copyrights 147
Case 5.2: LEGO A/S v. ZURU Inc. 149
■ Adapting the Law to the Online Environment:
Beyoncé, Sampling, and a $20 Million Lawsuit 152
Case 5.3: Oracle USA, Inc. v. Rimini Street, Inc. 153
Trade Secrets 154
International Protections 155
Chapter 6
Internet Law, Social Media,
and Privacy 161
Internet Law 162
Spotlight on Internet Porn: Case 6.1: Hasbro, Inc. v. Internet
Entertainment Group, Ltd. 165
Copyrights in Digital Information 166
■ Landmark in the Law: The Digital Millennium Copyright Act 167
■ Adapting the Law to the Online Environment:
Riot Games, Inc., Protects Its Online Video Game Copyrights 168
Case 6.2: BMG Rights Management (US), LLC v. Cox
Communications, Inc. 169
Social Media 170
Online Defamation 173
■ Business Law Analysis: Immunity of ISPs under the
Communications Decency Act 175
Privacy 175
Case 6.3: Campbell v. Facebook, Inc. 176
Chapter 7
Criminal Law and Cyber Crime 183
Civil Law and Criminal Law 183
Criminal Liability 185
■ Adapting the Law to the Online Environment: Should Bitcoin Be Illegal? 186
Case 7.1: United States v. Crabtree 186
Types of Crimes 189
Spotlight on White-Collar Crime: Case 7.2: People v. Sisuphan 192
■ Cybersecurity and the Law: Counter-Strike:Global Offensive 197
Defenses to Criminal Liability 199
Constitutional Safeguards 202
■ Landmark in the Law: Miranda v. Arizona (1966) 205
Chapter 8
Agreement and Consideration
in Contracts 210
An Overview of Contract Law 210
Case 8.1: Credible Behavioral Health, Inc. v. Johnson 213
Agreement 218
Classic Case 8.2: Lucy v. Zehmer 219
■ Business Law Analysis: Offers of a Reward 222
■ Adapting the Law to the Online Environment:
Can Your E-Mails Create a Valid Contract? 224
Consideration 226
■ Landmark in the Law: Hamer v. Sidway (1891) 227
E-Contracts 230
Case 8.3: Bailey v. Kentucky Lottery Corp. 232
Chapter 9
Capacity, Legality, and Enforceability 241
Contractual Capacity 242
Legality 245
■ Business Law Analysis: Determining If a Contract with an
Unlicensed Party Is Enforceable 246
Case 9.1: Kennedy v. Shave Barber Co. 248
Voluntary Consent 252
Case 9.2: McCullough v. Allstate Property and Casualty Insurance Co. 256
■ Adapting the Law to the Online Environment:
The Problem of “Contract Cheating” 259
The Writing Requirement 261
Case 9.3: Sloop v. Kiker 261
Chapter 10
Contract Performance, Breach,
and Remedies 272
Third Party Rights 273
Performance and Discharge 275
■ Business Law Analysis: Determining When a Breach Is Material 280
Case 10.1: Chalk Supply LLC v. Ribbe Real Estate LLC 281
Damages 285
■ Cybersecurity and the Law: Arby’s Restaurant Group, Inc. 286
Case 10.2: HDAV Outdoor, LLC v. Red Square Holdings, LLC 289
Spotlight on Liquidated Damages: Case 10.3: Kent State University v. Ford 291
Equitable Remedies 292
Recovery Based on Quasi Contract 295
Chapter 11
Sales and Lease Contracts 301
■ Landmark in the Law: The Uniform Commercial Code 302
The Scope of Articles 2 and 2A 302
■ Adapting the Law to the Online Environment:
Taxing Web Purchases 304
The Formation of Sales and Lease Contracts 306
Case 11.1: Toll Processing Services, LLC v. Kastalon, Inc. 307
■ Business Law Analysis: Additional Terms between Merchants 311
Classic Case 11.2: Jones v. Star Credit Corp. 316
Title and Risk of Loss 317
Case 11.3: Total Quality Logistics, LLC v. Balance Transportation, LLC 321
Contracts for the International Sale of Goods 323
Chapter 12
Performance and Breach of Sales
and Lease Contracts 330
Performance Obligations 331
Case 12.1: All the Way Towing, LLC v. Bucks County International, Inc. 333
Remedies for Breach 338
Spotlight on Baseball Cards: Case 12.2: Fitl v. Strek 345
Warranties 346
Classic Case 12.3: Webster v. Blue Ship Tea Room, Inc. 350
■ Business Law Analysis: Implied Warranties 351
Chapter 13
Negotiable Instruments 360
Formation of Negotiable Instruments 361
■ Adapting the Law to the Online Environment: Pay with Your Smartphone 363
Case 13.1: OneWest Bank, FSB v. Nunez 367
■ Business Law Analysis: Deciding If an Instrument Is Negotiable 368
Case 13.2: Collins Asset Group, LLC v. Alialy 369
Transfer of Instruments 372
Holder in Due Course (HDC) 374
Case 13.3: Jarrell v. Conerly 376
Signature and Warranty Liability 378
Defenses, Limitations, and Discharge 383
Chapter 14
Banking 391
Checks and the Bank-Customer Relationship 392
The Bank’s Duty to Honor Checks 394
Case 14.1: Legg v. West Bank 395
Case 14.2: Horton v. JPMorgan Chase Bank, N.A. 398
The Bank’s Duty to Accept Deposits 400
■ Landmark in the Law: Check Clearing for the 21st Century
Act (Check 21) 401
Electronic Fund Transfers 403
Case 14.3: Binns v. Truist Bank 405
Banking in the Digital Age 406
■ Adapting the Law to the Online Environment: Open Banking 407
Chapter 15
Creditors’ Rights and Bankruptcy 413
Laws Assisting Creditors 413
Spotlight on Wedding Rings: Case 15.1: Royal Jewelers, Inc. v. Light 414
Case 15.2: Lewis v. Chris Carbine, Inc. 417
The Bankruptcy Code 422
■ Business Web Log: Online Competition, Bankruptcy, and the “Retail Apocalypse” 422
■ Landmark in the Law: The Bankruptcy Abuse Prevention
and Consumer Protection Act 423
Chapter 7—Liquidation 424
■ Business Law Analysis: Violations of the Automatic Stay 428
Case 15.3: In re Dykes 435
Chapter 11—Reorganization 436
Bankruptcy Relief under Chapter 13
and Chapter 12 439
Chapter 16
Agency Relationships in Business 447
Agency Law 448
Formation of an Agency 451
Duties of Agents and Principals 453
Spotlight on Taser International: Case 16.1: Taser International,
Inc. v. Ward 454
Agent’s Authority 457
Case 16.2: Dearborn West Village Condominium
Association v. Makki 459
Liability in Agency Relationships 460
■ Business Law Analysis: Liability of Disclosed Principals 461
■ Landmark in the Law: The Doctrine of Respondeat Superior 464
Case 16.3: Simon v. Farm Bureau Insurance Co. 465
Termination of an Agency 467
Chapter 17
Employment Law 475
Employment at Will 476
Wages, Hours, and Leave 477
Health, Safety, and Income Security 480
Case 17.1: Packers Sanitation Services, Inc. v. Occupational Safety
and Health Review Commission 481
Immigration Law 485
Employment Discrimination 487
■ Adapting the Law to the Online Environment:
Hiring Discrimination Based on Social Media Posts 491
■ Business Law Analysis: Retaliation Claims 495
Case 17.2: Franchina v. City of Providence 496
Case 17.3: Kassa v. Synovus Financial Corp. 500
Chapter 18
The Entrepreneur’s Options 507
Sole Proprietorships 508
Case 18.1: Port Orchard Airport, Inc. v. Wagner 508
■■ Adapting the Law to the Online Environment:
“Doing Business As” a Sole Proprietor 510
General Partnerships 511
Case 18.2: Guenther v. Ryerson 516
Other Types of Partnerships 517
Limited Liability Companies 520
Case 18.3: Nesset, Inc. v. Jones 521
■ Business Law Analysis: When Will a Court Order the Dissolution of an LLC? 524
Franchises 525
■ Cybersecurity and the Law: Brinker International, Inc. 528
Chapter 19
Corporations 535
Nature and Classification 535
Case 19.1: Wulf v. Bravo Brio Restaurant Group, Inc. 537
Case 19.2: Greenfield v. Mandalay Shores Community Association 541
Formation and Powers 542
■ Cybersecurity and the Law: The CLOUD Act 547
Directors and Officers 549
■ Business Law Analysis: Piercing the Corporate Veil 549
Classic Case 19.3: Guth v. Loft, Inc. 553
Shareholders 555
Major Business Forms Compared 560
Chapter 20
Investor Protection, Insider Trading,
and Corporate Governance 568
Securities Act of 1933 569
Case 20.1: Securities and Exchange Commission v. Scoville 569
■ Adapting the Law to the Online Environment:
Investment Crowdfunding—Regulations and Restrictions 573
■ Landmark in the Law: Changes to Regulation A: “Reg A+” 574
Securities Exchange Act of 1934 577
Classic Case 20.2: Securities and Exchange Commission v. Texas
Gulf Sulphur Co. 579
Case 20.3: Singer v. Reali 583
State Securities Laws 585
Corporate Governance 586
Chapter 21
Antitrust Law and Promoting
Competition 595
The Sherman Antitrust Act 596
■ Landmark in the Law: The Sherman Antitrust Act 596
Case 21.1: United States v. Vega-Martínez 598
Section 1 of the Sherman Act 598
Section 2 of the Sherman Act 602
The Clayton Act 605
■ Adapting the Law to the Online Environment: Big Tech’s Monopoly Problem 605
Case 21.2: Candelore v. Tinder, Inc. 607
Enforcement and Exemptions 609
Case 21.3: TransWeb, LLC v. 3M Innovative Properties Co. 610
U.S. Antitrust Laws in the Global Context 611
Chapter 22
Consumer Law 617
Advertising, Marketing, Sales, and Labeling 618
Spotlight Case 22.1: POM Wonderful, LLC v. Federal
Trade Commission 619
Case 22.2: Haywood v. Massage Envy Franchising, LLC 621
Protection of Health and Safety 625
Credit Protection 628
Case 22.3: Manuel v. Merchants and Professional Bureau, Inc. 631
Chapter 23
Personal Property, Bailments,
and Insurance 637
Personal Property versus Real Property 637
Acquiring Ownership of Personal Property 639
■ Adapting the Law to the Online Environment:
The Exploding World of Digital Property 639
■ Business Law Analysis: Effective Gift of a
Brokerage Account 641
Classic Case 23.1: In re Estate of Piper 642
Mislaid, Lost, and Abandoned Property 644
Case 23.2: Zephier v. Agate 646
Bailments 646
Case 23.3: Zissu v. IH2 Property Illinois, L.P. 651
Insurance 653
Chapter 24
Real Property and Environmental
Law 663
The Nature of Real Property 663
Ownership Interests and Leases 665
Case 24.1: In the Matter of the Estate of Nelson 666
Transfer of Ownership 671
Spotlight on Sales of Haunted Houses: Case 24.2:
Stambovsky v. Ackley 672
■ Business Law Analysis: When Possession of Property Is Not “Adverse” 675
Case 24.3: A2 Creative Group, LLC v. Anderson 676
Landlord-Tenant Relationships 678
Protecting the Environment 680
Chapter 25
International and Space Law 693
International Law 693
Case 25.1: Rubin v. Islamic Republic of Iran 697
■ Business Law Analysis: Sovereign Immunity Claims 698
Doing Business Internationally 699
Regulation of Specific Business Activities 701
Case 25.2: Changzhou Trina Solar Energy Co. v. International
Trade Commission 703
U.S. Laws in a Global Context 705
Spotlight on International Torts: Case 25.3: Daimler
AG v. Bauman 706
Space Law 707
■ Cybersecurity and the Law: Safe Satellites 708
Appendices
A How to Brief Cases and Analyze Case Problems A–1
B Answers to the Issue Spotters A–3
C Sample Answers for Business Case Problems with
Sample Answer A–7
Glossary G–1
Table of Cases TC–1
Index I–1