The Legal Environment of Business, 14th Edition
Roger E. Meiners, Al. H. Ringleb and Frances L. Edwards
Contents
Preface xix
Chapter 1
Today’s Business Environment: Law and Ethics 1
Law and the Key Functions of the Legal System 2
Sources of Law in the United States 4
Davis v. Baugh Industrial Contractors 9
Business Ethics and Social Responsibility 13
Issue Spotter: OK to Grease Palms? 14
Issue Spotter: Effective Ethics Codes 15
Lamson v. Crater Lake Motors 16
Chapter 2
The Court Systems 20
The Court Systems 21
Martin v. Smith 22
The Federal Courts 23
The State Courts 26
Jurisdiction 28
Schoenbeck v. Masterlink Concrete Pumping, LLC 31
Relations between the Court Systems 32
Issue Spotter: Can Your Firm Be Reached? 33
Erie Railroad Co. v. Tompkins 35
Venue 37
Chapter 3
Trials and Resolving Disputes 41
Basic Trial Procedures 42
McGill v. BP Exploration & Prod. 48
Clark v. Enchanted Hills Community Ass’n. 54
Alternate Dispute Resolution 57
Issue Spotter: Are There Limits on the Terms of Arbitration? 59
Epic Systems Corp. v. Lewis 60
Chapter 4
The Constitution: Focus on Application to Business 66
The Commerce Clause 67
Katzenbach v. McClung 68
Hughes v. Oklahoma 71
The Taxing Power 72
ISSUE SPOTTER : Unconstitutional Business Activity? 74
Business and Free Speech 74
Consolidated Edison Company v. Public Service Commission of New York 75
Central Hudson Gas and Electric Corporation v. Public Service Commission of
New York 76
Other Key Parts of the Bill of Rights 78
Horne v. Department of Agriculture 81
Fourteenth Amendment 83
Adam and Eve Jonesboro, LLC v. Perrin 85
Chapter 5
Criminal Law and Business 88
Crime 89
Crime Categories 89
Crimes and Elements of Crime 90
Elonis v. United States 91
Defenses 93
Prosecution Process 93
United States v. Aboshady 98
Issue Spotter: Internal Fraud 100
Bridge v. Phoenix Bond & Indemnity Co. 101
Sentencing Guidelines and Compliance 105
United States v. George 106
Pulling It Together 110
Chapter 6
Elements of Torts 111
Torts and the Legal System 112
Negligence-Based Torts 112
Squish La Fish v. Thomco Specialty Products 114
Palsgraf v. Long Island Railroad Company 115
ISSUE SPOTTER : Effective Liability Releases 118
Schuemann v. Menard, Inc. 119
Intentional Torts against Persons 120
Fuerschbach v. Southwest Airlines 121
ISSUE SPOTTER : Dealing with Drunks 123
Harder v. Edwards 124
Lawler v. Montblanc North America, LLC 125
ISSUE SPOTTER : Dealing with Older Adults and Their Heirs 126
Brown v. Showtime Networks, Inc. 127
ISSUE SPOTTER : Say Good Things about a Good Employee? 129
Schwarz v. St. Jude Medical, Inc. 129
Chapter 7
Business Torts and Product Liability 133
Tort Law and Business 134
Siavage v. Gandy 135
Techno Lite, Inc. v. Emcod, LLC 137
ISSUE SPOTTER : Hiring Employees from Competitors 138
Product Liability 138
MacPherson v. Buick Motor Company 139
ISSUE SPOTTER : Understanding Product Problems 141
Greenman v. Yuba Power Products 142
Parish v. Icon 145
Shih v. Starbucks Corp. 147
ISSUE SPOTTER : Cheaper Can Be More Expensive 149
Chapter 8
Real and Personal Property 154
Real Property 155
Four B Properties, LLC v. Nature Conservancy 159
Nielsen v. Gold’s Gym 164
Public Control of Real Property 164
Issue Spotter: Would Tighter Leases Help? 165
RDNT, LLC v. City of Bloomington 166
Torts against Property 167
Smith v. Kulig 168
San Diego Gas & Electric Co. v. San Diego Regional Water Quality Control Bd. 169
Issue Spotter: Protecting Company Property 171
Torts against Property Owners 171
Issue Spotter: Duties to Older Customers 172
Reyes v. Brookshire Grocery Co. 172
Davis v. Hollins 174
Issue Spotter: Protecting Customers’ Kids 175
Chapter 9
Intellectual Property 178
Trademarks 179
ISSUE SPOTTER : Establishing Your Name 179
RDX Media, LLC v. IP Application Dev. LLC 181
Luxottica Grp., S.P.A. v. Airport Mini Mall, LLC 184
ISSUE SPOTTER : Knock Off the Knock-Offs? 186
Copyright 186
ISSUE SPOTTER : Fair Sharing of Educational Information? 188
Katz v. Google Inc. 189
Patents 190
Bowman v. Monsanto Co. 191
Trade Secrets 192
Walmart Inc. v. Cuker Interactive, LLC 193
United States v. Jin 195
ISSUE SPOTTER : Protecting Valuable Information 196
Chapter 10
Contracts 199
Contract Law 200
Elements of a Contract 200
Lee v. Chmielewski 204
Caley v. Gulfstream Aerospace Corp 207
Universal Truckload, Inc. v. Dalton Logistics, Inc. 208
Crowley v. Empire Fire & Marine Ins. Co. 211
Radon Constr., LLC v. Land Endeavor 0-2, Inc. 213
ISSUE SPOTTER: Liars’ Contest? 214
Deschamps v. Treasure State Trailer Court, Ltd. 215
Performance, Discharge, and Breach of Contracts 216
ISSUE SPOTTER: Do You Have to Eat the Loss? 220
Remedies 220
Derosier v. Utility Systems of America, Inc. 221
Jones v. Four Corners Rod & Gun Club 225
Pulling It Together 229
Chapter 11
Domestic and International Sales 230
Introduction to the UCC 231
Venable v. SunTrust Bank 233
Erie Ins. Co. v. Amazon.Com, Inc. 234
Forming a Sales Contract 235
Crest Ridge Construction v. New court 236
Griffith v. Clear Lakes Trout 239
Issue Spotter : Gouge the Wholesaler 241
Performance and Obligations 241
Villalobos v. Atlanta Motorsports Sales, LLC 243
Sales Warranties 243
Issue Spotter : How Much Advice Should Retailers Give? 245
Lee v. R & K Marine 246
Remedies and Damages 247
QVC, Inc. v. MJC America, Ltd. 249
International Sales 250
Issue Spotter : What Law Applies, and Where, to Your Contract? 252
VLM Food Trading International, Inc. v. Illinois Trading Company 253
Chapter 12
Business Organizations 259
Sole Proprietorships 260
Partnerships 260
Norris v. Besel 261
Limited Partnership 263
Eagles Landing Development, L.L.C. v. Eagles Landing Apartments, L.P. 264
ISSUE SPOTTER: Sisterly Love? 265
Corporations 265
Advantage Mktg. Grp. v. Keane 269
Limited Liability Companies 271
In re 1545 Ocean Avenue, LLC 272
Key Organizational Features 273
State Ex Rel. Yost v. Leonard 275
ISSUE SPOTTER: Keeping Things in Order 276
Franchises 277
ISSUE SPOTTER: The Road to Riches? 278
Dunkin’ Donuts Franchised Restaurants LLC v. Sandip, Inc. 280
Chapter 13
Negotiable Instruments, Credit, and Bankruptcy 284
Negotiable Instruments 285
Whitaker v. Wedbush Securities, Inc. 287
Credit 290
Credit with Security 292
ISSUE SPOTTER: Helping a Dream? 293
General Electric Business Financial Services v. Silverman 294
Fordyce Bank and Trust v. Bean Timberland 297
ISSUE SPOTTER: Lean on a Lien? 299
CIT Bank, N.A. v. Heirs 300
Bankruptcy 301
Tetzlaff v. Educational Credit Management Corp. 303
ISSUE SPOTTER: Credit for the Bankrupt? 304
In the Matter of Kmart Corporation 306
Pulling It Together 310
Chapter 14
Agency and the Employment Relationship 312
Agency Relationships 313
Cove Management v. AFLAC, Inc. 316
Lang v. Lions Club of Cudahy Wisconsin, Inc. 319
Beef Belt, LLC v. Campbell Burgess 321
The Essential Employment Relationship 322
France v. Southern Equipment Co. 323
Guz v. Bechtel National 326
Issue Spotter: Can You Be Too Encouraging to Employees? 329
Tort Liability for Employers and Principals 330
Issue Spotter: Use of Company Cars 331
Anderson v. Mandalay Corporation 332
Chapter 15
Employment and Labor Regulations 336
Public Policy Limits to At-Will Employment 337
Marshall v. Montaplast of North America, Inc. 337
Zambelli Fireworks Manufacturing Co. v. Wood 339
Substance Abuse 340
Issue Spotter: What Stance Should Be Taken toward Drinking
and the Office? 341
Issue Spotter: How Does an Employer Handle an Employee
Who Flunks a Drug Test? 342
Worker Health and Safety 342
Manua’s Inc. v. Scalia 343
Workers’ Compensation 345
Issue Spotter: Reducing Risks and Improving Looks 346
Long v. Superior Senior Care, Inc. 347
Family and Medical Leave 348
O’Rourke v. Tiffany & Co. 349
General Regulation of Labor Markets 350
Issue Spotter: Adapting to Modern Ways of Working 351
Issue Spotter: Hiring Documentation and Discrimination 353
Major Labor Relations Acts 353
The National Labor Relations Board 355
Unionization 356
Dolgencorp, LLC v. NLRB 358
Issue Spotter: Moves to Help Keep Unions Out 359
Collective Bargaining 360
Chapter 16
Employment Discrimination 365
Origins of Discrimination Law 366
Title VII of the 1964 Civil Rights Act 366
Bostock v. Clayton County 368
Harris v. Forklift Systems 370
Bringing a Discrimination Charge 372
Burlington Industries v. Ellerth 375
Issue Spotter: Effective Sexual Harassment Policy 376
Chaidez v. Ford Motor Co. 377
Issue Spotter: Inadvertent Discrimination? 379
Affirmative Action 381
Disability Discrimination 382
Keith v. County of Oakland 384
Issue Spotter: Accommodating Disabilities 386
Pulling It Together 390
Chapter 17
The Regulatory Process 391
Administrative Agencies 392
Administrative Law 393
Taylor v. Huerta 394
Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc. 396
Enforcing Rules 397
Black Beauty Coal Company v. Federal Mine Safety and Health Review Commission 399
ISSUE SPOTTER : Contest a Regulatory Order? 401
Judicial Review 401
Summers v. Earth Island Institute 403
N.M. Farm & Livestock Bureau v. United States Department of Interior 405
Controls on Agencies 406
Chapter 18
Securities Regulation 411
The Elements of Securities 412
What Is a Security? 413
Offering Securities to Investors 414
Latta v. Rainey 415
Issue Spotter: What Are You Selling? 417
Issue Spotter: Can New Start-Up Firms Issue Securities? 419
Regulation of Securities Trading 419
Securities Fraud 421
Smallen v. Western Union Co. 423
Insider Trading 425
United States v. Kosinski 426
Issue Spotter: Can You Exploit the Gossip? 427
The Investment Company Act 428
The Investment Advisers Act 429
ACAP Financial, Inc. v. United States Securities and Exchange Commission 430
Stock Market Regulation 431
Chapter 19
Consumer Protection 435
The FDA: Food and Drug Regulation 436
Merck Sharp & Dohme Corp. v. Albrecht 439
ISSUE SPOTTER : How Much Can You Hype Health Supplements? 440
The FTC and Consumer Protection 441
FTC v. Consumer Defense, LLC 442
POM Wonderful, LLC v. Federal Trade Commission 445
ISSUE SPOTTER : How Aggressive Can You Be in Advertising? 447
KS Trade LLC v. International Gemological Inst., Inc. 449
Consumer Credit Protection 449
ISSUE SPOTTER : Dealing with Customer Records 456
Chuway v. National Action Financial Service 457
ISSUE SPOTTER : How Should You Handle Unpaid Accounts? 458
Chapter 20
Antitrust Law 462
Antitrust Statutes 463
United States v. Joyce 466
Monopolization 467
Horizontal Restraints of Trade 469
Todd v. Exxon Corporation 471
Issue Spotter: Share and Share Alike 473
Vertical Restraint of Trade 473
Leegin Creative Leather Products v. PSKS 475
The Robinson-Patman Act 478
Issue Spotter: Who Do You Sell What to, and for How Much? 479
Spartan Concrete Products, LLC v. Argos USVI, Corp. 479
Chapter 21
Environmental Law 484
Environmental Regulation 485
Pollution and the Common Law 485
Whalen v. Union Bag and Paper 486
Clean Air Act 487
Sierra Club v. EPA 491
Clean Water Act 492
Decker v. Northwest Environmental Defense Center 494
Issue Spotter: Does Obeying EPA Regulations Eliminate Litigation? 495
Lost Tree Village Corporation v. United States 496
Land Pollution 497
Species Protection 501
Sierra Club v. United States DOI 503
Global Environmental Issues 504
Issue Spotter: Picking a Sweet Spot 504
Massachusetts v. Environmental Protection Agency 505
Chapter 22
The International Legal Environment of Business 509
International Law and Business 510
U.S. Import Policy 512
Rubies Costume Co. v. United States 513
Issue Spotter: Starting an Import Business 515
Issue Spotter: Making the Deal Stick 516
Business Structures in Foreign Markets 518
Foreign Corrupt Practices Act 519
United States v. Chi Ping Patrick Ho 521
International Contracts 522
Issue Spotter: Where to Produce? 528
International Dispute Resolution 528
OBB Personenverkehr AG v. Sachs 529
Pulling it Together 533
Appendix A Online Legal Research 534
Appendix B Case Analysis and Legal Sources 536
Appendix C The Constitution of the United States of America 543
Appendix D The Uniform Commercial Code (Excerpts) 556
Appendix E National Labor Relations Act (Excerpts) 574
Appendix F Title VII of Civil Rights Act of 1964 (Excerpts) 579
Appendix G Americans with Disabilities Act (Excerpts) 582
Appendix H The Antitrust Statutes (Excerpts) 585
Appendix I Securities Statutes (Excerpts) 589
Glossary 593
Index 626