Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 This is an electronic version of the print textbook Due to electronic rights restrictions, some third party content may be suppressed Editorial review has deemed that any suppressed content does not materially affect the overall learning experience The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN, author, title, or keyword for materials in your areas of interest Important notice: Media content referenced within the product description or the product text may not be available in the eBook version Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 ETHICS & THE L AW Maybe a Little Too “LinkedIn” p Honesty, Lawyers, and BP Claims p 25 Edward Snowden: Contractor with a Cause The Veterans Affairs (VA) and the Queues Ethics, Trust, and Markets p 39 p 40 p 43 Lying to Get into a Top School p 46 Pumping Up the SAT Scores for a Good Ranking Toys p 49 Us and Horizontal/Vertical Controls on Distribution IRS Employees Who Snoop p 89 When Addictions Are Off and On Again Patenting Genes? p 76 p 112 p 168 Combating Bribery of Foreign Public Officials in International Business Transactions Plumbing Consideration p 269 Public Policy Issues Regarding Surrogacy Contracts Restocking at Overstock p 281 p 415 The $7 Renoir at the Flea Market p 442 Executive App Promises, App Disclaimers The Return Season p 469 p 486 The 30-Day Grace Period That Is Now 120 Days Medicaid Eligibility and Article Negotiability Having Your Mortgage Set Aside p 507 p 528 p 538 The Corner Check Cashing Company and Good Faith Getting Hit for SOOO Many Overdraft Fees When the Creditors Rule the Debtor p 560 p 580 p 612 Getting Into Debt and Getting Debt Relief—from the Same Company Women, Children, and the Repo Guys Bankruptcy Records p 635 p 664 p 673 The Skies Are Not So Friendly to Employee Pensions Are Terrorist Attacks an “Act of War?” p 687 p 706 Is It Ethical to Use the Strategy of an Undisclosed Principal? The S & L Crisis p 196 p 747 p 879 Problem: Conflicts of Interest—Remedy: Commonsense Rules The Feeder Fund and the Auditor Executive Compensation p 949 p 958 p 991 Spreading the Manure a Little Too Thick p 1029 Screening Tenants for Criminal Records p 1052 Preparing Your Client’s Will When You’re the Beneficiary p 1073 Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 THINKING THINGS THROUGH T Why Do We Require Sworn Testimony? W p 24 Corrupt Climates: Good or Bad for Business? p 37 Freedom of Speech and Our Headlights p 67 Teeth Whitening and the Antitrust Laws p 75 Can a Pharmacy’s License Be Revoked for Too Many Cash Sales of Oxycodone? Torts and Public Policy p 148 Access to Medicine versus Patent Protection Twelve Years of Litigation p 215 The Rules of Negotiations p 226 Legality and Public Policy p 279 Noncompete Clauses, Cause for Concern? Delivering Dirt p 111 p 189 p 285 p 413 Serving Up Title and Insurance at the Burned Bar What’s Foreign to You … p 441 p 467 When a Court Does Not Allow Performance p 486 The Lululemon Yoga Pants That Were Lemons When Your John Hancock Is Enough p 501 p 524 The Minor with an Embezzling Conservator p 544 The Corner Check Cashing Company and Thieves—Who Wins? The Business Law Professor with the Lost Cashier’s Check Pro Rata Shares for Co-Sureties p 589 p 605 The Difference in Concussions and Football Helmet Ad Claims Repossessing and Replacing Tires p 626 p 664 Means Test Justifying the End of Debt Rule No 1: Take the Safe Course p 567 p 676 p 751 Taking Chances or Shortcuts in Violation of OSHA Standards Is Bad Management Retaliation – The Number One Risk for Employers Don’t Finagle the Bagel! p 783 p 807 p 833 How Many Plaintiffs Can There Be in a Class-Action Securities Litigation? How Many Defendants? Responsible Corporate Officers—The Park Doctrine Revisited The Dryer Vent That Dumped on the Doc Putting the Brakes on Eminent Domain The Leaking Barrels GE Sold The Rotting Balcony p 964 p 992 p 1003 p 1016 p 1031 p 1051 Close Enough for a Will? p 1074 List of Features continues on inside back cover Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 Want to turn C’s into A’s? Obviously, right? But the right way to go about it isn’t always so obvious Go digital to get the grades MindTap’s customizable study tools and eTextbook give you everything you need all in one place Engage with your course content, enjoy the flexibility of studying anytime and anywhere, stay connected to assignment due dates and instructor notifications with the MindTap Mobile app and most of all…EARN BETTER GRADES TO GET STARTED VISIT WWW.CENGAGE.COM/STUDENTS/MINDTAP Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 23rd Edition ANDERSON’S BUSINESS LAW and The Legal Environment Comprehensive Volume DAVID P TWOMEY Professor of Law Carroll School of Management Boston College Member of the Massachusetts and Florida Bars MARIANNE MOODY JENNINGS Emeritus Professor of Legal and Ethical Studies W.P Carey School of Business Arizona State University Member of the Arizona Bar STEPHANIE M GREENE Chair, Business Law Department Professor of Business Law Carroll School of Management Boston College Member of the Massachusetts Bar Australia • Brazil • Mexico • Singapore • United Kingdom • United States Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 AndersonÕs Business Law and The Legal Environment: Comprehensive Volume, 23rd Edition © 2017, 2014 Cengage Learning David P Twomey, Marianne Moody Jennings, and Stephanie M Greene ALL RIGHTS RESERVED No part of this work covered by the copyright herein may be reproduced, transmitted, stored, or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the publisher VP for Social Science and Qualitative Business: Erin Joyner Product Director: Michael Worls Sr Product Manager: Vicky True-Baker Sr Content Developer: Kristen Meere WCN: 01-100-101 Product Assistant: Ryan McAndrews For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706 Marketing Manager: Katie Jergens For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions Marketing Director: Kristen Hurd Marketing Coordinator: Christopher Walz Further permissions questions can be e-mailed to permissionrequest@cengage.com Production Director: Sharon Smith Sr Content Project Manager: Ann Borman Content Digitization Project Manager: James Schoenle Manufacturing Planner: Kevin Kluck Sr Inventory Analyst: Terina Bradley Sr IP Director: Julie Geagan-Chavez IP Analyst: Jennifer Nonenmacher IP Project Manager: Betsy Hathaway Unless otherwise noted, all figures, tables, and text are © Cengage Learning Library of Congress Control Number: 2015953186 Student Edition ISBN: 978-1-305-57508-0 Loose-leaf Edition ISBN: 978-1-305-66385-5 Sr Art Director: Michelle Kunkler Production Service and Compositor: MPS Limited Cengage Learning Interior and cover designer: Lou Ann Thesing Boston, MA 02210 Cover Image: Vermont Lighthouse, york777/Shutterstock.com Design elements: Colorful Light Effect Background: iStockPhoto.com/malija; part and chapter opener lighthouse: iStockPhoto com/Sergiy1975; sustainability icon: Ella Sarkisyan/ShutterStock.com; cyberlaw laptop icon: graphixmania/ShutterStock com; video and smartphone icons: Hilch/ ShutterStock.com; trophy icon: HuHu/ ShutterStock.com; scales icon: lana rinck/ ShutterStock.com 20 Channel Center Street USA Cengage Learning is a leading provider of customized learning solutions with employees residing in nearly 40 different countries and sales in more than 125 countries around the world Find your local representative at www.cengage.com Cengage Learning products are represented in Canada by Nelson Education, Ltd To learn more about Cengage Learning Solutions, visit www.cengage.com Purchase any of our products at your local college store or at our preferred online store www.cengagebrain.com Printed in Canada Print Number: 01 Print Year: 2015 Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 Brief Contents PREFACE XVIII ACKNOWLEDGMENTS XXIV ABOUT THE AUTHORS XXVI PART 1 10 THE LEGAL AND SOCIAL ENVIRONMENT OF BUSINESS The Nature and Sources of Law The Court System and Dispute Resolution Business Ethics, Social Forces, and the Law The Constitution as the Foundation of the Legal Environment Government Regulation of Competition and Prices Administrative Agencies Crimes Torts Intellectual Property Rights and the Internet The Legal Environment of International Trade PART CONTRACTS 11 Nature and Classes of Contracts: Contracting on the Internet 12 Formation of Contracts: Offer and Acceptance 13 Capacity and Genuine Assent 14 Consideration 15 Legality and Public Policy 16 Writing, Electronic Forms, and Interpretation of Contracts 17 Third Persons and Contracts 18 Discharge of Contracts 19 Breach of Contract and Remedies 13 33 54 72 86 104 131 153 181 203 205 221 242 262 275 291 311 327 347 PART SALES AND LEASES OF GOODS 20 Personal Property and Bailments 21 Legal Aspects of Supply Chain Management 22 Nature and Form of Sales 23 Title and Risk of Loss 24 Product Liability: Warranties and Torts 25 Obligations and Performance 26 Remedies for Breach of Sales Contracts 365 367 387 409 435 455 477 495 PART NEGOTIABLE INSTRUMENTS 27 Kinds of Instruments, Parties, and Negotiability 28 Transfers of Negotiable Instruments and Warranties of Parties 515 517 29 Liability of the Parties under Negotiable Instruments 30 Checks and Funds Transfers 555 573 PART DEBTOR-CREDITOR RELATIONSHIPS 31 Nature of the Debtor-Creditor Relationship 32 Consumer Protection 33 Secured Transactions in Personal Property 34 Bankruptcy 35 Insurance 599 601 618 642 671 696 PART AGENCY AND EMPLOYMENT 36 Agency 37 Third Persons in Agency 38 Regulation of Employment 39 Equal Employment Opportunity Law 717 719 741 761 794 PART BUSINESS ORGANIZATIONS 40 Types of Business Organizations 41 Partnerships 42 LPs, LLCs, and LLPs 43 Corporation Formation 44 Shareholder Rights in Corporations 45 Securities Regulation 46 Accountants’ Liability and Malpractice 47 Management of Corporations 821 823 840 867 883 903 927 955 977 PART REAL PROPERTY AND ESTATES 48 Real Property 49 Environmental Law and Land Use Controls 50 Leases 51 Decedents’ Estates and Trusts 999 1001 1025 1045 1063 APPENDICES How to Find the Law The Constitution of the United States Uniform Commercial Code (Selected Sections) A–1 A–4 A–15 GLOSSARY G–1 CASE INDEX CI–1 SUBJECT INDEX SI–1 535 iii Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 Contents Preface xviii Acknowledgments xxiv About the Authors xxvi PART The Legal and Social Environment of Business Chapter Legal Rights Individual Rights The Right of Privacy Privacy and Technology 1-2 Sources of Law 1-2a 1-2b 1-2c 1-2d 1-2e 1-2f 1-2g Constitutional Law Statutory Law Administrative Law Private Law Case Law, Statutory Interpretation, and Precedent Other Forms of Law: Treaties and Executive Orders Uniform State Laws 1-3 Classifications of Law 1-3a 1-3b 1-3c Chapter Substantive Law vs Procedural Law Criminal Law vs Civil Law Law vs Equity 10 The Court System and Dispute Resolution 13 2-1 The Court System 14 2-1a 2-1b 2-1c The Types of Courts 14 The Federal Court System 16 State Court Systems 18 2-2 Court Procedure 20 2-2a 2-2b 2-2c 2-2d 2-2e Participants in the Court System 20 Which Law Applies—Conflicts of Law 20 Initial Steps in a Lawsuit 21 The Trial 22 Post-trial Procedures 25 2-3 Alternative Dispute Resolution (ADR) 26 2-3a 2-3b Chapter The Nature and Sources of Law 1-1 Nature of Law and Legal Rights 1-1a 1-1b 1-1c 1-1d 2-3c 2-3d 2-3e 2-3f 2-3g 2-3h 2-3i 2-3j Arbitration 26 Mediation 27 MedArb 28 Expert Panel 28 Reference to a Third Person 28 Association Tribunals 28 Summary Jury Trial 28 Rent-A-Judge 29 Minitrial 29 Contract Provisions 29 Business Ethics, Social Forces, and the Law 33 3-1 What Is Business Ethics? 34 3-1a 3-1b 3-1c 3-1d The Law as the Standard for Business Ethics 34 The Notion of Universal Standards for Business Ethics 34 Ethical Theories and Standards 35 The Business Stakeholder Standard of Behavior 38 3-2 Why Is Business Ethics Important? 39 3-2a 3-2b 3-2c 3-2d The Importance of Trust 39 Business Ethics and Financial Performance 39 The Importance of a Good Reputation 41 Business Ethics and Business Regulation: Public Policy, Law, and Ethics 41 3-3 How to Recognize and Resolve Ethical Dilemmas 44 3-3a 3-3b Chapter Categories of Ethical Behavior 45 Resolving Ethical Dilemmas 47 The Constitution as the Foundation of the Legal Environment 54 4-1 The U.S Constitution and the Federal System 55 4-1a 4-1b What a Constitution Is 55 The Branches of Government 55 4-2 The U.S Constitution and the States 55 4-2a 4-2b 4-2c Delegated and Shared Powers 55 Other Powers 56 Federal Supremacy 57 4-3 Interpreting and Amending the Constitution 58 4-3a 4-3b 4-3c Conflicting Theories 58 Amending the Constitution 59 The Living Constitution 59 4-4 Federal Powers 60 4-4a 4-4b The Power to Regulate Commerce 60 The Financial Powers 63 iv Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 CONTENTS 4-5 Constitutional Limitations on Government 64 4-5a 4-5b 4-5c 4-5d 4-5e Chapter Due Process 64 Equal Protection of the Law 65 Privileges and Immunities 65 Protection of the Person 66 The Bill of Rights and Businesses as Persons 66 Government Regulation of Competition and Prices 72 5-1 Power to Regulate Business 73 5-1a 5-1b Regulation, Free Enterprise, and Deregulation 73 Regulation of Unfair Competition 73 5-2 Regulation of Horizontal Markets and Competitors 73 5-2a 5-2b 5-2c 5-2d Regulation of Prices 74 Monopolization 74 Boycotts and Refusals to Deal 76 Mergers among Competitors 76 5-3 Regulation of the Supply Chain and Vertical Trade Restraints 77 5-3a 5-3b 5-3c 5-3d 5-3e Price Discrimination 77 Exclusive Dealings and Territories 79 Resale Price Maintenance 79 Tying 80 Mergers along the Supply Chain 81 5-4 Remedies for Anticompetitive Behavior 82 5-4a 5-4b Chapter Criminal Penalties 82 Civil Remedies 82 Administrative Agencies 86 6-1 Nature of the Administrative Agency 87 6-1a 6-1b 6-1c Purpose of Administrative Agencies 87 Uniqueness of Administrative Agencies 87 Open Operation of Administrative Agencies 88 6-2 Legislative Power of the Agency 90 Chapter 7-1 General Principles 105 7-1a 7-1b 7-1c 7-1d 7-2a 7-2b 7-2c 7-2d 7-2e 7-2f 7-2g 7-2h 7-2i 7-2j 7-2k 7-2l 7-2m 7-2n 7-2o 7-2p 7-2q 7-3a 7-3b 7-3c 7-3d 7-3e 7-3f 7-3g 7-3h 7-3i 7-4c 6-4 Judicial Power of the Agency 95 6-4a 6-4b 6-4c 6-4d The Agency as a Specialized Court 95 Punishment and Enforcement Powers of Agencies 97 Exhaustion of Administrative Remedies 97 Appeal from an Administrative Agency Action 97 What Is a Computer Crime? 120 The Computer as Victim 120 Unauthorized Use of Computers 121 Computer Raiding 121 Diverted Delivery by Computer 122 Economic Espionage by Computer 122 Electronic Fund Transfer Crimes 123 Circumventing Copyright Protection Devices Via Computer 123 Spamming 123 7-4 Criminal Procedure Rights for Businesses 124 6-3 Executive Power of the Agency 94 Enforcement or Execution of the Law 94 Constitutional Limitations on Administrative Investigation 94 Conspiracies 113 Money Laundering 113 Racketeering 113 Bribery 114 Commercial Bribery 115 Extortion and Blackmail 115 Corrupt Influence 115 Counterfeiting 116 Forgery 116 Perjury 116 False Claims and Pretenses 116 Bad Checks 117 Credit Card Crimes 118 Embezzlement 118 Obstruction of Justice: Sarbanes-Oxley (SOX) 118 Corporate Fraud: SOX 119 The Common Law Crimes 119 7-3 Criminal Law and the Computer 120 7-4a 7-4b 6-3a 6-3b Nature and Classification of Crimes 105 Basis of Criminal Liability 105 Responsibility for Criminal Acts 106 Indemnification of Crime Victims 112 7-2 White-Collar Crimes 113 Agency’s Regulations as Law 90 Agency Adoption of Regulations 91 6-2a 6-2b Crimes 104 Chapter Fourth Amendment Rights for Businesses 124 Fifth Amendment Self-Incrimination Rights for Businesses 126 Due Process Rights for Businesses 126 Torts 131 8-1 General Principles 132 8-1a 8-1b 8-1c What Is a Tort? 132 Tort and Crime Distinguished 132 Types of Torts 132 8-2 Intentional Torts 134 8-2a Assault 134 Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 v www.downloadslide.net forgery (Continued ) indorsements, 544–547, 585–586 negotiable instrument defense, 564 Form 10-K, 935 Form I-9, 788–789 formal contracts, 208 formation of contracts See contract formation forward-looking statements, 939 Fourteenth Amendment, 64–65, 785–786 Fourth Amendment, 4–5, 124, 785 See also search and seizure franchise disclosure documents (FDD), 831–832 Franchise Rule, 831 franchisees, 638 franchises defined, 638, 828 disclosure for, 831–832 employee misclassification and, 834–835 franchise agreements, 829–830 protections for, 830–831 types of, 829 vicarious liability and, 832–834 franchising, 182 franchisors, 638, 829 fraud accountants’ liability, 966–968 in contracts, 251–253 defined, 251, 966 imposter fraud, 711 mail and wire fraud, 119 parol evidence rule and, 300–301 product liability and, 470 securities regulation, 936–938 suretyships, 605 fraud as to the nature or terms of the instrument, 563 fraud in the inducement, 562 fraud-on-the-market doctrine, 938 fraudulent transfers, 680–682 free enterprise system, 73 Freedom of Information Act (FOIA), 88–89 freight insurance, 707 Friedman, Milton, 38 friendly fires, 708 front-page-of-the-newspaper test, 48–49 frustration of purpose, 339–340 FTAIA (Foreign Trade Antitrust Improvements Act), 197 FTC (Federal Trade Commission), 460–461, 565–566 FTCA (Federal Tort Claims Act), 147, 751 SI-10 FTDA (Federal Trademark Dilution Act), 158 full warranties, 460 functional patents, 165 funds transfers, business, 590–594 funds transfers, consumer, 589–590 funds transfers, defined, 592 fungible goods, 437 future goods, 411, 437 future interests, 1007 G GAAP (generally accepted accounting principles), 936, 956 Galleon Group, 109 gambling, 280 Gandolfini, James, 1069 garbage, 1029–1032 garnishment, 26 gas stations, 831 GATS (General Agreement on Trade in Services), 187 GATT (General Agreement on Tariffs and Trade 1994), 186 gender discrimination, 802 general agents, 722 General Agreement on Tariffs and Trade 1994 (GATT), 186 General Agreement on Trade in Services (GATS), 187 general corporation codes, 887 general damages, 353 general jurisdiction, 14 general legacies, 1074 general partners, 841, 868 general partnerships, 841 See also partnerships generally accepted accounting principles (GAAP), 936, 956 generic marks, 155 Genetic Information Nondiscrimination Act (GINA), 815 Gesellschaft mit beschränkter Haftung (GmbH), 182 gift cards, 632 gifts, 263–264, 368–372, 411 gifts causa mortis, 370 GINA (Genetic Information Nondiscrimination Act), 815 global warming, 1027 good cause discharge, 764–765 good faith defined, 478, 558 discharge of contracts and, 338–339 in every contract, 277–278, 306 for holders in due course, 558 good faith purchasers, 439, 441 goods, 410–411 See also sale of goods Google, impact on trials, 23 government regulation family and medical leave, 779 health and safety of employees, 781–783 of horizontal markets and competitors, 73–77 immigration laws, 788–789 military leaves, 779–781 pension plans, 776–778 power to, 73 remedies for anticompetitive behavior, 82 of supply chains, 77–82 unemployment compensation, 778–779 vicarious liability of employer for employee violation of, 750 workers’ compensation, 783–785 governmental immunity, 147 grantees, 1010 grantors, 1010 gratuitous bailments, 380 greenhouse gases, 1027 Grossman, Louis, 39–40 groupthink, 50 guaranties, 602 See also suretyships guaranties of collection, 602–603 guaranties of payment, 603 guarantors, 602 guardians, capacity of ward to contract, 248 guests, 402 H H-1B visas, 789 Hammer, MC, 679 harrassment, sexual, 802–805 hazardous materials, 783 health care insurance receivables, 649 HealthSouth, 109–110 hearings officers, 96 hearsay evidence, 635 height requirements, 802, 806 hiring and retention, 752 Hoffman, Philip Seymour, 1069 holders, 536, 556–557, 561 holders in due course defined, 536, 556 limited defenses not available against, 561–562 requirements for, 556–561 holders through holders in due course, 561 holding companies, 896 holographic wills, 1070 SUBJECT INDEX Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 www.downloadslide.net Home Equity Loan Consumer Protection Act, 630 homeowners insurance, 708–709 home-solicited sales, 627 homestead exemption, 684–685 honest services fraud, 107 horizontal price-fixing, 74 hostile fires, 708 hostile work environments, 803 hotelkeepers, 401–403 hotelkeepers liens, 403 hull insurance, 707 I I-9 forms, 788–789 ICANN (Internet Corporation for Assigned Names and Numbers), 159–160 ICCTA (Interstate Commerce Commission Termination Act), 397–398 ICRA (Immigration Reform and Control Act), 788–789 identification of goods, 437–438 identified, 437 illegality of contracts, 276–280, 419 discharge of contracts, 337 negotiable instrument defense, 564 offers, 232 partnerships, 857 illusory promises, 265–266 ILSFDA (Interstate Land Sales Full Disclosure Act), 637 Immigration Eligibility Verification Form, 788–789 immigration laws, 788–789 Immigration Reform and Control Act (ICRA), 788–789 immunity, 147, 198 impeachment, 22 implied contract terms, 226, 305–306 implied contracts, 208–209 implied primary assumption of risk, 146–147 implied warranties, assignment, 321 implied warranty of merchantability, 463–465, 468 impossibility, 337, 340–341 imposter fraud, 711 imposter rule, 545–547, 588 impracticability, 339, 488 in pari delicto, 277 incapacity See capacity Incentives for Self-Policing, Disclosure, Correction, and Prevention of Violations, 1032 incidental authority, 725 incidental beneficiaries, 314–315 incidental damages, 353, 498 income, 1078 incontestability clauses, 711–712 incorporation by reference, 302 incorporation into contracts, 226, 302 incorporators, 891 indemnification, 984, 993, 1057 indemnity, 605, 852–853 indemnity contracts, 603 indenture trustees, 906 independence rule, 610 independent contractors, 721–722, 754–755, 834–835 India, 189 individual account plans, 777 individual proprietorship, 824 indorsees, 539 indorsements agents or officers, 543 bank, 542 of bearer paper, 537 blank, 538–539 defined, 538 forged, 544–547, 585–586 missing, 543 multiple payees or indorsements, 542–543 qualified, 540–541, 549 restrictive, 541 special, 539–540 time for presentment, 578–579 unauthorized, 544–547 indorsers, 566 Industrial Espionage Act, 172 informal contracts, 208 informal settlements, 96 inheritance See decedents injunctions, 10, 356–357, 1034 inland marine insurance, 708 innocent landowners, 1032 insanity See disability insider information, 941–944 Insider Trading and Securities Fraud Act, 107, 941 insiders, 681, 942 insolvency, 681 inspection right, 481, 852, 912–914 insurable interests, 436, 697–698 insurance antilapse provisions, 700 automobiles, 709–710 bad faith, 702–703 burdens of proof in, 701–702 business liability, 705–707 coinsurance, 708 contracts for, 699–700 defined, 697 fire and homeowners, 708–709 insurable interest requirement, 436, 697–698 interpretation of contracts for, 701 life, 697–698, 710–712 marine, 707–708 modifications of contracts, 701 mortgages and, 1018 parties to, 697 subrogation, 703–704 terrorism and, 706 time limitations, 703 insurance agents, 697 insurance brokers, 697 insureds, 697 insurers, 697 integrated industries, 896 integrity, 45 See also business ethics; ethics intellectual property rights See also trademarks copyright, 123, 160–165, 173 international trade and, 187–190, 193 mask works, 175 overview, 154, 174 patents, 165–170, 173–174, 767 secret business information, 171–173, 174, 767, 829 tax issues, 183 trade dress, 157–158, 829 intended beneficiaries See third-party beneficiary contracts intended user rule, 964 intent, criminal, 105 intentional infliction of emotional distress (IIED), 135–136 intentional torts assault, 134 battery, 134 contract interference, 141 conversion, 374–375 defamation, 138–141 defined, 132–133 false imprisonment, 134–135 intentional infliction of emotional distress, 135–136 invasion of privacy, 136–138, 787 product disparagement, 141 trespass, 122, 141–142, 373 inter vivos gifts, 369–370 interest in the authority, 722 interest in the subject matter, 722 interest rates, 285–286, 525, 906 interference by landlords, 1049 SUBJECT INDEX Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 SI-11 www.downloadslide.net interlineations, 1068 interlopers, 965 intermediary banks, 591 internal controls, 956 international trade anticompetitive behavior, 195–198 antidumping, subsidies and safeguards, 192–193 common carriers, 399–400 Dispute Settlement Body, 191 Doha Round, 191 forms of international business, 182–183 international contracts, 183–184 issues confronting companies engaged in, 194–199 lines of credit for, 574 regional trade agreements, 191–192 sale of goods, 427–428, 508 tariffs and barriers to trade, 185–186 trademark registration, 154–155 World Trade Organization, 184–187 Internet See also e-commerce and cyberlaw bullying and, 122 clickwrap agreements, 235 contracts on, 216–217 cybersquatting, 159–160 piggybacking, 48 privacy and, search engines, 653 taxes on purchases via, 64 Internet banking, 590 Internet Corporation for Assigned Names and Numbers (ICANN), 159–160 Internet Service Providers (ISP), 165 interns, 768 interrogatories, 22 interstate commerce, 60–62 Interstate Commerce Commission Termination Act (ICCTA), 397–398 Interstate Land Sales Full Disclosure Act (ILSFDA), 637 intervenors, 96 intervivos trusts, 1078 intestate, 1064 intestate succession, 1075–1077 intoxication, 248 intrusion into private affairs, 137 invasion of privacy, 136–138 inventions See patents inventory, priorities, 657 investment banking, 949 investment contracts, 929–930 invitations to negotiate, 222–223 invitees, 1008 SI-12 involuntary bankruptcy, 676–677 ISP (Internet Service Providers), 165 issuers, 389, 608 J Jefferson, Thomas, 165 Jennings, Marianne, 39–40 JOBS (Jumpstart Our Business Startups) Act of 2012, 929, 931, 933, 934 Jobs, Steve, 77 John, Elton, 679 joint and several liability, 144, 853–854 joint liability, 853–854 joint tenancy, 376–377 joint ventures, 825–827 judges, 20 judgment liens, 1004 judicial branch, 55 judicial triage, 30 Jumpstart Our Business Startups (JOBS) Act of 2012, 929, 931, 934 juries, 20, 22–23, 28, 95–96 jurisdiction, 14 jurisdictional rule of reason, 197 jury instructions, 25 justice courts, 18–19 K Kant’s categorical imperative theory, 35 knockoffs, 158 know-how, 190 known user rule, 961–962 KPMG, 110 L L-1 visas, 789 labeling, 625–626 labor relations collective bargaining, 774 National Labor Relations Act, 769–770 right-to-work laws, 774 strikes and picketing, 775–776 union activity, 772–774 Labor-Management Reporting and Disclosure Act (LMRDA), 776 land, 1002 See also real property landlords, 1046 See also leases of real property Lanham Trademark Act, 154, 187 See also trademarks larceny, 119 law agency regulations as, 90–91 business ethics and, 34 classifications of, 9–10 defined, equity compared, 10 nature of, 4–6 social forces influencing, 41–44 sources of, 7–9 lawsuits, steps to, 21–22 lawyers, 947–948, 1073 leasehold estates, 1006–1007 leases of goods, 380–381, 428–430, 629, 632–633 leases of real property assignment of, 1050–1051, 1057–1058 classifications of, 1046–1047 creation of, 1046–1047 defined, 1046 deposits, 1054 improvements, 1054 injuries on premises and, 1055–1057 landlord remedies, 1054–1055 possession, 1049–1050 renewal of, 1048 rent for, 1050–1051, 1053 repairs and condition, 1051–1053 retaliation, 1054 subleases, 1058 taxes and assessments, 1054 termination of, 1047–1048 use of premises, 1050 Ledger, Heath, 1069 legacies, 1064 Legal Arizona Workers Act, 789 legal title, 1078 legatees, 1064 legislative branch, 55 lemon laws, 638 lessees, 1046 lessors, 1046 letters of administration, 1073 letters of credit, 184, 608–613 letters testamentary, 1073 liability insurance, 707 libel, 138 liberal search engines, 653 licensees, 1008 licenses, 1004 licensing, 174–175, 182, 282–283 Liebeck, Stella, 148 liens bailee’s liens, 381 floating liens, 647 hotelkeepers liens, 403 landlords, 1054 overview, 1004 repair liens, 657 SUBJECT INDEX Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 www.downloadslide.net sale of goods, 496 specific liens, 389 storage liens, 657 title passage and, 439–440 warehouse liens, 388–389 life estates, 1006–1007 life insurance, 697–698, 710–712 limitation-of-liability clauses, 359–360, 959 limited covenants, 1014 limited defenses, 561–562, 567–568 limited jurisdiction, 14 limited liability companies (LLC), 824–825, 870–877 limited liability company (LLC), 182 limited liability partnership (LLP), 824–825, 875, 877–878 limited partners, 868 limited partnership agreements, 859 limited partnerships (LPs), 868–870, 875 limited warranties, 460 lineals, 1075 lines of credit, 574 liquidated damages, 358–359 liquidated damages clauses, 358, 506–508 liquidated debts, 268 liquidation, 672 Little FTC Acts, 619 living trusts, 1078 living wills, 1070, 1071 living-document view of Constitution, 58–60 LLC (limited liability companies), 824, 870–877 LLP (limited liability partnership), 824–825, 875, 877–878 LMRDA (Labor-Management Reporting and Disclosure Act), 776 loans, 117, 981 Locke, John, 35–36 lodgers, 403 lost profits, 498 lost volume doctrine, 498 lotteries, 280 loyalty, duty of, 729–730, 850–851, 987–988, 1079 LPs (limited partnerships), 868–870, 875 M Maastricht Treaty, 191 Madoff, Bernard, 110 Madrid Protocol, 154 Madrid System, 187 mail fraud, 119 mailbox rule, 236–237, 414–415 major life activities, 813–814 makers, 520, 566 malpractice, 142, 921, 956–957 See also accountants’ liability mandatory arbitration, 27 mandatory subjects of bargaining, 774 manufacturing franchises, 829 marine insurance, 707–708 market power, 75 market price formula, 497, 501 Market Reform Act of 1990, 928–929 market value, 904 marriage, 296, 371 MARS (Model Administrative Rules), 653 mask works, 175 mass picketing, 775 Massey Coal, 110 material misstatements or omissions of fact, 936–938 maturity dates, 906 MC Hammer, 679 means test, 674, 676 Meat Loaf, 679 mechanic’s liens, 1004 medarb, 28 media, qualified privilege, 140 mediation, 27–28 members, 871 mentally incompetent persons See capacity; disability merchants additional terms, 416–418 confirmation memoranda, 423 defined, 413 firm offers and, 414 implied warranties, 463–465 risk of loss, 445 mergers, 76–77, 81, 894–898 Merrill Lynch, 949 military leaves, 779–781 minitrials, 29 minors attractive nuisance doctrine, 1008 as beneficiaries, 1066 capacity to contract, 244–247 child labor, 769 gifts to, 370 negotiable instrument defense, 564 negotiation and, 547 Miranda warnings, 126 mirror image rule, 415 misappropriation, 943 misdemeanors, 105 misrepresentation, 244–245, 253–254, 935, 959 missing indorsements, 543 mistake, 248–250, 300–301 mistrial motions, 24–25 mitigation of damages, 354, 1055 MLCA (Money Laundering Control Act), 113 Model Administrative Rules (MARS), 653 Model Business Corporation Act (MBCA), 887 models, 459–460 monetary damages, 353–355 money, 525 money laundering, 113 Money Laundering Control Act (MLCA), 113 money orders, 520, 575 monopolization, 74–75 moral relativists, 36–37 morals clauses, 329 mortgage foreclosures, 1019 mortgagees, 1016 mortgages, 1016–1019 mortgagors, 1016 most-favored-nation, 186 motions for directed verdicts, 24 motions for judgment n.o.v., 25 motions for mistrial, 24–25 motions for new trial, 25 motions for summary judgment, 22 motions to dismiss, 21 Motor Vehicle Information and Cost Savings Act, 628–629 motor vehicles See automobiles municipal courts, 18–19 murder, 1076 mutual mistakes, 249 mutuality of obligation, 265 N NAFTA (North American Free Trade Agreement), 192 names, 541–542, 859, 871, 888 Nash, Laura, 49–50 National Association of Securities Dealers (NASD), 948–949 National Conference of Commissioners on Uniform State Laws (NCCUSL), National Do Not Call Registry, 627 National Environmental Policy Act (NEPA), 1032 National Football League (NFL), 627 National Labor Relations Act (NLRA), 769–770 National Labor Relations Board (NLRB), 770 national origin discrimination, 806 National Pollutant Discharge Elimination System (NPDES) permits, 1028 SUBJECT INDEX Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 SI-13 www.downloadslide.net National Securities Markets Improvement Act (NSMIA), 928 national treatment, 186 natural law, 34 NCCUSL (National Conference of Commissioners on Uniform State Laws), necessaries, 245 negligence defenses, 145–147 defined, 133 elements of, 142–145 hiring and retention, 752 overview, 142–147 product liability and, 470 sports exception doctrine, 147 supervision and training, 753 negligent misrepresentation, 253–254 negotiability ambiguous language and, 529 authentication requirement, 522–524 defined, 521 factors not affecting, 529 payable to order or bearer requirement, 527–528 payment of sum certain in money, 525 record requirement, 522 of stock, 909 time of payment requirement, 526–527 unconditional promise or order requirement, 524–525 negotiable bills of lading, 395 negotiable instruments See also checks; negotiability defenses to payment of, 561–566 defined, 518 holders, 536, 556 holders in due course, 536, 556–561 liability issues, 566–568 parties to, 520–521 presentment, 566–567 statutes of limitations, 529 types of, 518–520 negotiable warehouse receipts, 390–392 negotiation of bearer paper, 536–537 of bills of lading, 395 defined, 536 imposter rule, 545–547, 588 of order paper, 538 problems with, 544–547 of warehouse receipts, 390–392 warranties in, 547–549 negotiation rules, 226 Nelson, Willie, 679 SI-14 NEPA (National Environmental Policy Act), 1032 net neutrality, 92 New Orleans Saints, 47 new trial motions, 25 New York contact rule, 961 NLRA (National Labor Relations Act), 769–770 NLRB (National Labor Relations Board), 770 No Electronic Theft Act, 123 no-fault insurance, 710 Noise Control Act, 1032–1033 nominal damages, 353 nominal partners, 845–846 non obstante veredicto judgments, 25 nonattainment areas, 1026 noncompetition agreements, 283–285 nonconforming uses, 1038–1039 nonconsumer leases, 428 nondischargeable debts, 686–689 nondisclosure agreements, 172 nondisclosure in contract, 254–255 noninventory collateral, 657 nonnegotiable bills of lading, 395 nonnegotiable instruments, 521 nonnegotiable warehouse receipts, 389 nonprofit corporations, 886 North American Free Trade Agreement (NAFTA), 192 notice (process), 21 notice of dishonor, 567–568, 579 notice statutes, 1011 notice-race statutes, 1012–1013 novation, 320–321 Nozick, Robert, 36 NPDES (National Pollutant Discharge Elimination System) permits, 1028 NSMIA (National Securities Markets Improvement Act), 928 nuisance, 1034–1037 O obedience, duty of, 730, 851 obligees, 206, 316, 602 obligors, 206, 316, 602 occupancy requirements, 709 Occupational Safety and Health Act (OSHA), 781–783 Occupational Safety and Health Administration (OSHA), 782–783 ocean marine insurance, 707 O’Connor, Sandra Day, 35 odometer fraud, 628–629 offerees, 207 offering statements, 931–932 offerors, 207 offers See also acceptance of offers communication to offeree, 228–229 contractual intention requirement, 222–224 counteroffers, 230–231 defined, 222, 414 definiteness requirement, 224–228 firm offers, 230 negotiation rules, 226 overview, 227 revocation, 229–230 termination of, 229–232 officers (corporate), 985–990 Oil Pollution Act, 1028 Older Workers Benefit Protection Act (OWBPA), 811 Omnibus Trade and Competitiveness Act, 193 open meeting laws, 90 open records laws, 88–89 opening statements, 23 operating agreements, 872 operation of law, 341–342, 856 operators, Superfund, 1029–1030 opinions, 251–252, 458–459 oppressive conduct, 917 option contracts, 211, 230 oral contract validity, 292, 425–426 order paper, 528, 538, 547 orders of relief, 678 Organization for Economic Cooperation and Development, 194, 196 Organizational Federal Sentencing Guidelines, 993 original jurisdiction, 14 originators, 592 OSHA (Occupational Safety and Health Act), 781–783 OSHA (Occupational Safety and Health Administration), 782–783 ostensible partners, 845–846 output contracts, 228, 419–420 outstanding stock, 904 overdrafts, 579 overtime pay, 769 OWBPA (Older Workers Benefit Protection Act), 811 owners, Superfund, 1029–1030 P par value, 904 parens patriae actions, 82 parents, contract liability for children, 245–247 Paris Convention, 187–188 SUBJECT INDEX Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 www.downloadslide.net Park Doctrine, 992 parodies, 163–164 parol evidence rule, 294, 299–301, 420–421, 523 part performance doctrine, 292–293 partially disclosed principals, 743 participating preferred stock, 905 parties, 520 partners, 841–842 partners by estoppel, 845–846 partnership agreements, 842–843 partnerships See also limited liability partnership (LLP); limited partnerships (LPs) assignment of interest in, 847, 850 authority of partners, 847–850 characteristics of, 842 comparison with other business forms, 875 continuation of business, 861 creation of, 841–847 creditors’ claims, 854–855 defined, 824, 841 dissociation, 858–859 dissolution and termination, 855–861 duties of partners, 850–851 joint ventures compared, 826 law applicable to, 841 liability of partners and partnership, 853–854 liability to third persons, 845–846 overview, 824–825 property of, 846 rights of partners, 851–853 winding up, 860 Patent Act of 1793, 165 Patent Act of 1952, 166–167 patents, 165–170, 173–174, 189, 767 pattern or practice cases, 797 payable on demand, 526 payable to bearer, 527–528 payable to order, 527–528 pay-by-phone systems, 590 payees, 519, 521, 545–546 payment dates, 915 payment orders, 592 payment plans, 673, 690 PBGC (Pension Benefit Guaranty Corporation), 777 PCAOB (Public Company Accounting Oversight Board), 969–970 PDA (Pregnancy Discrimination Act), 802 Peale, Norman Vincent, 48 Peanut Corporation of America, 110 Pension Benefit Guaranty Corporation (PBGC), 777 pension plans, 776–778 pension reporting, 687 per capita, 1075–1076 per stirpes, 1076 peremptory challenges, 23 perfected security interests, 649 See also secured transactions perfection, 654 performance, duty of, 730, 1079 periodic tenancies, 1047 perjury, 116 permissive subjects of bargaining, 774 Personal Auto Policy (PAP), 709–710 personal names, 155 personal property See also intellectual property rights; secured transactions bailments of, 378–383 conversion, 374–375, 401 defined, 368 escheat, 375 finding of lost, 372–373 gifts, 368–372 multiple ownership of, 376–377 occupation of, 373–375 title to, 368 personal representatives, 296, 1070 personal satisfaction contracts, 334–335 personal services, 318–319, 356 Petroleum Marketing Practices Act (PMPA), 831 physical ability requirements, 802 physical duress, 256 picketing, 775–776 piercing the corporate veil, 918 piggybacking, 48 plain meaning rule, 304 plaintiffs, 20 plain-view doctrine, 124 plant patents, 166 Plato, 37–38 pleadings, 21 pledgees, 606 pledges, 606 pledgors, 606 PMPA (Petroleum Marketing Practices Act), 831 PMSI (purchase money security interests), 645 point sources, 1028 point-of-sale terminals, 590 police power, 56, 887 policies, 697 political influence, 115 positive law, 34 possession, 1049 possession, duty of, 1079 possibility of reverter, 1007 Postal Reorganization Act, 234–235 postdating, 529, 575, 578, 584 postdisposition accountings, 664–665 post-sale disclaimers, 469–470 potentially responsible parties (PRPs), 1029–1030 powers of attorney, 723, 733–734 precedent, predatory lending, 629 predicate acts, 114 preemption, 57 preemptive rights, 912 preferences, 679–682 preferential transfers, 681 preferred stock, 905 Pregnancy Discrimination Act (PDA), 802 preincorporation subscription, 907 prenuptial agreements, 296 prescription, 1002 presentment, 566–567, 577–579 presidents, 985–986 presuit demand, 916 price discrimination, 77–79 price fixing, 74 price quotations, 223 prices, 74, 79–80, 419 prima facie evidence, 378 primary parties, 566 primary picketing, 775 primum non nocere, 47 principal debtors, 602 Principal Register, 154 principals bonds, 906 defined, 182, 602, 720–721, 1078 types of, 743 prior art, 167 priorities, 655–661 priority of claims, 683–684 privacy See also e-commerce and cyberlaw banks, 580 of computers, credit reporting, 635 of employees, 785–788 invasion of privacy, 136–138 IRS snooping, 89 right to, 4–5 social media posts, 5–6 technology and, 5–6 work computers, 124 private carriers, 393 private corporations, 885 private law, private nuisances, 1036 private placement exemptions, 933 SUBJECT INDEX Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 SI-15 www.downloadslide.net Private Securities Litigation Reform Act (PSLRA), 929, 939–940 privilege against self-incrimination, 94, 126 privileged relationships, 125 privileges absolute privilege, 140 attorney-client, 20, 125 media, 140 self-incrimination, 94, 126 shopkeeper’s, 135 privileges and immunities clause, 65–66 privity, 206, 457 privity of contract, 206, 456–457 privity rule, 960 pro forma financial results, 936 pro rata, 605, 655 probate, 1070–1072 procedural law, procedural unconscionability, 278–279 proceeds, 647 process, 21 processing franchises, 829 product designs, 158 product disparagement, 141 product liability cumulative theories possible, 471 defined, 456 disclaimer of warranties, 467–470 express warranties, 457–461 fraud, 470 implied warranties, 462–466 nature of harm, 456 negligence, 470 strict liability and, 470 theories of liability, 456, 470–471 who is liable in, 456–457 product safety, 460–461, 633 professional corporations, 921 profits, 1003 projected income, 674–675 promise keeping, 45–46 promisees, 206 promises, 265–266 promisors, 206 promissory estoppel, 270–271, 297 promissory notes, 519 promoters, 890–891 proof of claims, 682–683 property reports, 637 proportionate liability, 940 prosecutors, 20 prospectus, 930 protected classes See Title VII protected concerted activity, 772–773 proxies, 912 SI-16 proximate cause, 143 PRPs (potentially responsible parties), 1029–1030 PSLRA (Private Securities Litigation Reform Act), 929, 939–940 public comment, 92–93 Public Company Accounting Oversight Board (PCAOB), 969–970 public corporations, 885 public disclosure of private facts, 136 public housing, 1052 public nuisances, 1036 public policy, 280–281, 763–764 See also government regulation public service corporations, 885 public warehouses, 388–393 puffery, 458 punitive damages, 144–145, 148, 623–624 purchase money security interests (PMSI), 645 purported partnerships, 846 Q qualified individuals with disabilities, 812 qualified indorsements, 540–541, 549 qualified privilege, 140 quantum meruit meruit, 213 quasi contracts, 211–215, 299 quasi-contractual remedies, 351–352 quasi-judicial proceedings, 65 quasi-public corporations, 885 quid pro quo, 46 quitclaim deeds, 1011 quorum, 978 R race and color, 800 race statutes, 1011 race-norming, 808 race-notice statutes, 1012–1013 Racketeer Influenced and Corrupt Organizations (RICO) Act, 113–114 racketeering, 113–114 Railway Labor Act, 770 Rand, Ayn, 36 ratification, agency by, 724–725 ratification of contracts, 246 Rawls, John, 35–36 RCRA (Resource Conservation and Recovery Act), 1029 real property See also environmental law adverse possession, 1015–1016 co-ownership of, 1009–1010 deeds, 1010–1014, 1037–1038 defined, 368, 1002 disclosures, 637 due diligence, 1037 easements, 1002–1003 eminent domain, 1014–1015 fixtures, 1004–1005 land use controls, 1037–1040 liability to third persons for, 1007–1008 licenses, 1004 liens, 1004 mortgages, 1016–1019 ownership, forms of, 1006–1007 profits, 1003 takings, 1014–1015, 1038 writing required for sale of, 294–295 zoning, 1038–1040 reasonable accommodations, 814 reasonable care, duty of, 731 recognizances, 208 reconverting banks, 576 record dates, 915 recorders of deeds, 1011–1013 records, 421–425, 478–479, 522, 575 recross-examination, 23 redemption, 663, 1019 redirect examination, 23 reductions in force (RIFs), 765 reference to a third person, 28 references, qualified privilege for, 140–141 reformation, 250, 357 refusals to deal, 76 registered bonds, 906 registration requirements, 931 registration statements, 930–931, 970 registration states, 832 Regulation A, 931–932 Regulation A+, 931 Regulation CC, 539 Regulation D, 932–933 Regulation FD, 944 Regulation G, 936 regulations, 41 See also government regulation Regulatory Flexibility Act, 92 Rehabilitation Act, 812 rejection rights, 481–482, 500 releases, 146, 335–337, 360 reliance, 252–253, 270–271 religion, as protected class, 800–801 remainder interests, 1007 remand, 15–16 remedies anticompetitive behavior, 82 for breach of contract, 351–357 SUBJECT INDEX Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 www.downloadslide.net for breach of sale of goods, 496–500 consumer protection, 622–624 defined, 351 landlords, 1054–1055 quasi contracts, 351–357 trademarks, 157 Remedies Act (Securities Enforcement Remedies and Penny Stock Reform Act), 928 rent, 1050–1051, 1053 rent-a-judge plans, 29 rentals, bailments distinguished, 380–381 reorganization, 672, 689 repair liens, 657 repossession, 662–663 representative capacity, 523 repudiation, 348–349, 478–479 reputation, importance of, 41 requests for production of documents, 22 requirements contracts, 228, 419–420 res ipsa loquitur, 143 resale, 497, 505 resale price maintenance, 79–80 rescission for breach of contract, 355–356 of contracts, 335 defined, 335 home-solicited sales, 627 sale of goods, 503–504 reservation of rights, 351 Resource Conservation and Recovery Act (RCRA), 1029 Resource Recovery Act, 1028, 1029 respondeat superior superior, 749–751 responsible corporate officer doctrine, 992–993 restitution damages, 213, 351–352 restrictive covenants, 1037–1038 restrictive indorsements, 541 retained earnings, 914 retaliation, 805–806, 1054 retention and hiring, 752 Retirement Equity Act, 777 retirement plans, 776–778 returnable goods transactions, 449 reverse, 15–16 reverse discrimination, 809–810 reverse engineering, 172 reverse mortgages, 1017 reversible errors, 15 reverter, 1007 Revised Model Business Corporation Act (RMBCA), 887, 904 See also stock Revised Uniform Limited Partnership Act (RULPA), 868 Revised Uniform Partnership Act (RUPA), 841 See also partnerships revocation, 229–230, 484–486, 1068–1069 RICO (Racketeer Influenced and Corrupt Organizations) Act, 113–114 RIFs (reductions in force), 765 right of escheat, 375, 1075 right of first refusal, 211 right of inspection, 481 right of publicity, 137 right of redemption, 663, 1019 right of rejection, 481–482 right of survivorship, 376–377 right to cure, 482 rights, 4, 315 rights theory, 36 right-to-know laws, 783 right-to-sue letters, 797 right-to-work laws, 774 riots, 120 risk, 704 risk of loss, 444–448 RMBCA (Revised Model Business Corporation Act), 887, 904 See also stock robbery, 119 Robison-Patman Act, 77–79 royalty payments, 162 Rule 10b-5, 936–938 Rule 504, 933 Rule 505, 933 Rule 506, 932–933 rulemaking, 90–93 RULPA (Revised Uniform Limited Partnership Act), 868 runs with the land, 1014 RUPA (Revised Uniform Partnership Act), 841 See also partnerships S S.A (société anonyme), 182 SAC Capital, 110 Safe Drinking Water Act, 1028 safe harbor rules, 939 sale of goods See also breach of sale of goods; product liability acceptance of goods, 482–486 acceptance of offers, 414–418 additional terms, 415–418 assurances of performance, 479–480 bulk transfers, 421 buyer duty to accept goods, 482–486 buyer duty to pay, 487 buyer duty upon receipt, 481–482 buyer’s specifications used, 465 commercial impracticability, 488 consignments, 449–450 consumer defenses preservation, 632–633 damage or destruction of goods, 446–448 defined, 410 excuse of duties, 487–489 form of contracts for, 421–427 formation of contracts for, 412–419 good faith obligations, 478 identification of, 437–438 international trade, 427–428 modifications of contracts, 420 open terms, 419–421 oral contract validity, 425–426 other transactions distinguished, 411 parol evidence rule, 420–421 passage of title for, 438–444 problem identification, 436 repudiation, 478–479 returnable goods transactions, 449 revocation of acceptance, 484–486 risk of loss, 444–448 sale or return, 449 sales on approval, 449 self-service stores, 450 seller duty to deliver, 480–481 services combined with, 411 shipment terms, 442–444 specially manufactured goods, 425, 498 Statute of Frauds, 421–425 time requirements, 478 writing required for, 297 sale or return, 449 sales on approval, 449 sales talk, 458–459 sales tax, Internet purchases, 64 salespersons, 756 samples, 459–460 Sarbanes-Oxley (SOX) accountants’ liability, 969–972 attorneys and, 948 certification process under, 935–936 corporate fraud, 119 loans to directors, 981 obstruction of justice, 118 overview, 929 penalties, 107, 109–111 records retention, 971–972 short-swing profits, 945 whistleblowers, 765–766 say-on-pay, 989 scienter, 939 SCPA (Semiconductor Chip Protection Act), 175 SUBJECT INDEX Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 SI-17 www.downloadslide.net Scrushy, Richard, 110 search and seizure aerial inspections, 124 agency inspection, 94 businesses and, 66 of employees, 787 overview, 4–5 production of papers, 94 warrants for, 124–125 search engines, 653 search warrants, 124–125 seasonable time for cure, 482 SEC See securities regulation Second Amendment, 67 secondary actions See derivative actions secondary meaning, 155–156 secondary obligors, 521, 566, 577 See also suretyships secondary parties, 566 secondary picketing, 775–776 secondary promises, 295 secondhand goods, 465 secrecy laws, 199 secret business information, 171–173 secretaries, 985 Section 7, 772–773 Section 301 authority, 193 secured parties, 643 secured transactions collateral, 646–648 default and, 654–655, 662–665 defined, 498–499, 643 perfection of, 648 priorities, 655–661 purchase money security interests, 645 security interest creation, 644–645 securities, 929–930 Securities Act of 1933, 928, 929–930 Securities and Exchange Commission See securities regulation Securities Enforcement Remedies and Penny Stock Reform Act (Remedies Act), 928 Securities Exchange Act of 1934, 928, 934–940, 945, 946–948 securities fraud, as predicate act, 114 securities regulation of accountants and attorneys, 947–948 insider information, 941–944 international trade, 198–199 overview, 928–929 PSLRA and, 929, 939–940 Securities Act of 1933, 928, 929–930 Securities Exchange Act of 1934, 928, 934–940, 945, 946–948 security defined, 929–930 SI-18 self-regulation, 948–949 short-swing profits, 945 state regulation, 928 tender offers, 945–946 security agreements, 644–645 security interests, 643–645 self-help repossession, 662–663 self-incrimination privilege, 94, 126 self-proved wills, 1067 self-service stores, 450 self-settled trusts, 682 selling on consignment, 400–401 semiconductor chip products, 175 Semiconductor Chip Protection Act (SCPA), 175 seniority, 808, 814 service contracts, 637–638 service franchises, 829 service letters, 765 service marks, 154 service of process, 21 services, 637–638 servient tenements, 1002 settlors, 1078 severalty, 376 sex discrimination, 802 sexual harassment, 802–805 shared powers, 56 shareholders See also corporations; stock liability of, 917–921 management by, 978–979 meetings of, 978 rights of, 910–917 shares, 904, 910 See also stock shelter rule, 561 Sherman Antitrust Act boycotts, 76 cooperatives and, 828 monopolization, 74–75 overview, 73–75 penalties, 82 price fixing, 74 tying, 80–81 shipment terms, 442–444 shop rights, 767 shopkeeper’s privilege, 135 shopkeeper’s tort, 134 short-swing profits, 945 Siemens AG, 196 signatures of agents to indicate agency, 745 electronic, 298 sale of goods, 422–423 Statute of Frauds and, 297–298 wills, 1066 silence, 58, 234 Sinbad, 679 Single European Act, 191 sinking funds, 906 Sixth Amendment, 126 Skilling, Jeffrey, 109 slander, 138 slander of title, 141 small claims courts, 19 Smoot-Hawley Tariff Act, 184 Snowden, Edward, 39 social contracts, 35–36 social forces, 41–44 social media, 5–6, 23 Social Security Act, 778, 781 Società a respondsabilità limitata (S.r.l.), 182 société anonyme (S.A.), 182 software, 120, 162, 173–175 sole outlets, 79 sole proprietorship, 824 soliciting agents, 756 solid waste disposal, 1029–1032 Sonny Bono Copyright Term Extension Act, 161 Sotheby’s, 110 sovereign compliance doctrine, 198 sovereign immunity doctrine, 198 SOX See Sarbanes-Oxley (SOX) spam, 123–124 special (consequential) damages, 353–354, 503 special agents, 722 special indorsements, 539–540 special jurisdiction, 14 special litigation committees, 916 special service corporations, 885 specially manufactured goods, 425, 498 specialty courts, 18 specific legacies, 1074 specific liens, 389 specific performance, 10, 352, 356, 505 spending power, 64 spendthrift trusts, 1078 sports exception doctrine, 147 spot zoning, 1040 SSI (Supplemental Security Income), 781 stakeholder analysis, 38–39 stakeholders, 38 stale checks, 580–581 standards for health and safety, 781–783 standby letters, 608 Stanford Securities, 110 stare decisis, state appellate courts, 19 state courts, 18–20 state supreme courts, 20 SUBJECT INDEX Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 www.downloadslide.net statements of account, 654 states, U.S Constitution and, 55–58 status incapacity, 243 status quo ante, 245 Statute of Frauds defined, 292 noncompliance, effects of, 299 notes or memorandum, when sufficient, 297–299 oral contract validity, 292 sale of goods, 421–425 stock and, 907 writing, when required, 292–297 statutes of limitations accountants’ malpractice, 958 bank liability for checks, 588 breach of sale of goods, 496 discharge of contracts by, 341–342 negotiable instruments, 529 statutory law, stays of bankruptcy, 677 stays of foreclosure, 1019 Stewart, Martha, 110 stirpes, 1076 stock See also securities regulation acquisition of, 906–910 certificates of, 905, 910 defined, 904 nature of, 904–905 overview, 888–889 shareholder liability, 917–921 shareholder rights, 910–917 types of, 905–906 unpaid subscriptions, 920–921 stock subscriptions, 907, 920–921 stolen property, title not acquired by, 368, 439 STOLI (stranger-owned life insurance policies), 698 stop payment orders, 581, 584 storage liens, 657 straight bills of lading, 395 straight voting, 911 stranger-owned life insurance policies (STOLI), 698 strict compliance rule, 610 strict liability, 133, 147–149, 456 See also product liability strict search engines, 653 strikes, 775–776 Subchapter S corporations, 877, 886 subject matter jurisdiction, 14 subleases, 1058 sublessees, 1050–1051 subminimum wages, 768 subpoenas, 94 subprime lending, 620, 629 subrogation, 604–605, 703–704 subscriptions, 907 subsidies, 193 substantial impairment, 484 substantial performance, 332–334 substantive law, substantive unconscionability, 279 substitute checks, 576, 588 substitution of contracts, 335–336 suggestive marks, 155 sum certain, 525 summary judgment motions, 22 summary jury trials, 28 summation, 24 summons, 21 Sunshine Act of 1976, 90 Superfund Amendment and Reauthorization Act, 1029 Superfund sites, 1029 Supplemental Security Income (SSI), 781 supply chain management See common carriers; sale of goods; title supply chains, 77–82 suretyships, 295, 602–608, 850 surplus, 665 sworn testimony, 24 symbolic delivery, 369 systemic class action cases, 797 T takings, 1014–1015, 1038 tangible employment actions, 803 tariffs, 185–186 tax liens, 1004 taxes international trade and fraud, 183 Internet purchases, 64 leases and, 1054 LLCs, 876 mortgages and, 1018 sales tax on Internet purchases, 64 Social Security, 781 unemployment compensation, 778–779 taxing power, 63–64 telemarketing, 627 Telephone Consumer Protection Act (TCPA), 627 telephone monitoring, 786 teller’s checks, 520, 575 temporary insiders, 942 temporary perfection, 650 10-K forms, 935, 989 10-Q reports, 935 tenancy at sufferance, 1047 tenancy at will, 1047 tenancy by entirety, 377 tenancy for years, 1047 tenancy in common, 376 tenancy in partnership, 846 tenants, 1046 See also leases of real property tender, 330, 444 tender offers, 945–946 tenements, 1002 term insurance, 710 termination statements, 654 terrorism, 706 Terrorism Risk Insurance Program Reauthorization Act, 706 testamentary capacity, 1064 testamentary intent, 1066 testamentary trusts, 1078 testate, 1064 testate distribution, 1064 testators, 1064 testatrix, 1064 theft, 120, 368, 439 theory of justice, 35 third-party beneficiary contracts, 312–315 Thirteenth Amendment, 356 three-part test, 48 TILA (Truth in Lending Act), 630 time drafts, 575 time is of the essence clauses, 331–332 tippees, 942 title bailments and, 441 bills of lading, 394–395 equitable title, 1078 escheat, 375 finding of lost personal property, 372–373 gifts, 368–372 legal title, 1078 multiple ownership of personal property, 376–377 occupation of personal property, 373–375 passage in sale of goods, 438–444 personal property generally, 368 slander of title, 141 stolen property, 368, 439 warehouse receipts, 389–392 title abstracts, 1013 Title VII See also equal employment opportunity affirmative action, 809–810 exceptions to, 806–808 extraterritorial issues, 815 national origin, 806 SUBJECT INDEX Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 SI-19 www.downloadslide.net Title VII (Continued ) race and color, 800 religion, 800–801 retaliation protections, 805–806 reverse discrimination, 809–810 sex discrimination, 802 sexual harassment, 802–805 theories of discrimination under, 795–796 torts See also accountants’ liability; intentional torts; product liability by agents, 746, 749–756 crimes compared, 132 defined, 132 governments and, 147 invasion of privacy, 136–138 negligence, 133, 142–147 overview, 132–133 partnerships, 853 public policy, 148 strict liability, 133, 147–149 Toxic Substances Control Act (TOSCA), 1029 Toys R Us, 76 Trade Act of 1974, 193 trade dress, 157–158, 829 trade fixtures, 1006 trade libel, 141 trade names, 829 Trade Related Aspects of Intellectual Property (TRIPS), 187–190 trade secrets, 171–173, 174, 190, 767, 829 trademarks of colors, 155–156 defined, 154, 829 dilution of, 158–159 elements to prove infringement, 156 international trade and, 187–188 Internet domain names, 159–160 Lanham Act, 154 of personal names, 155 remedies for improper use of, 157 types of, 155 trainees, 769 transferees, 1010 Transport Rule, 1027 traveler’s checks, 520 treasury stock, 889 treaties, Treaty of Rome, 191 Treaty on European Union, 191 treble damages, 82 trespass, 121–122, 141–142, 373 trespass to land, 141 trespass to personal property, 141–142 SI-20 trespassers, 1008 trials, 22–25 tripartite government, 55 TRIPS (Trade Related Aspects of Intellectual Property), 187–190 trust, importance of, 39 trust agreements, 1078 trust corpus, 1078 trustees, 1078 trustees in bankruptcy, 679 trustors, 1078 trusts, 682, 1077–1080 truth, 45, 140–141 Truth in Lending Act (TILA), 630 Turtle Law, 186 24-hour rule, 770 tying, 80–81 U UCC See Uniform Commercial Code (UCC) UCC-1, 650–653 UCCC (Uniform Consumer Credit Code), 317 UDAP (unfair or deceptive acts or practices) statutes, 619 See also consumer protection UDPAA (Uniform Durable Power of Attorney Act), 733 UETA (Uniform Electronic Transactions Act), 216–217, 298, 518 UGMA (Uniform Gifts to Minors Act), 370 ULPA (Uniform Limited Partnership Act), 868–870 ultra vires acts, 98, 890 unauthorized indorsements, 544–547 unauthorized signatures, 585–586 unauthorized use of computers, 121 unclaimed property, 375 unconscionability, 419 unconscionable clauses, 278–280, 629–630, 1046 underwriters, 697 undisclosed information, 190 undisclosed principals, 743 undue influence, 255–256 unemployment compensation, 778–779 unfair competition, 73 See also anticompetitive behavior unfair labor practices, 771 unfair or deceptive acts or practices (UDAP) statutes, 619 See also consumer protection Uniform Anatomical Gift Act, 372 Uniform Arbitration Act, 26 Uniform Commercial Code (UCC) See also breach of sale of goods; checks; negotiable instruments; product liability; sale of goods; secured transactions; warranties assignment favored, 318 bailments for hire, 382 bills of lading, 394 consideration, 270 consignment sales, 401 delegation of duties, 323 discharge of contracts, 340 electronic documents of title, 390 firm offers, 230 formation of contracts, 412–413 good faith, 306 international trade, 183 records of title, 389 as source of law, warehouses, 388 Uniform Consumer Credit Code (UCCC), 317 Uniform Durable Power of Attorney Act (UDPAA), 733 Uniform Electronic Transactions Act (UETA), 216–217, 298, 518 Uniform Gifts to Minors Act (UGMA), 370 Uniform Limited Partnership Act (ULPA), 868–870 Uniform Partnership Act (UPA), 841 See also partnerships Uniform Probate Code (UPC), 1064 Uniform Residential Landlord and Tenant Act (URLTA), 1046 See also leases of real property Uniform Securities Act, 928 Uniform Simultaneous Death Act, 1077 Uniform State Laws, 8–9 Uniform Trade Secrets Act, 172 Uniform Unclaimed Property Act (UUPA), 375 Uniformed Services Employment and Re-Employment Rights Act (USERRA), 779–781 unilateral contracts, 210 unilateral mistakes, 249 unincorporated associations, 827, 842 unions See labor relations United Nations Convention on Contracts for the International Sale of Goods (CISG), 183–184, 427–428, 466, 508 universal agents, 722 universal defenses, 563–565 unjust enrichment, 211–215 SUBJECT INDEX Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 www.downloadslide.net unliquidated debts, 268 unordered goods, 234–235 UPA (Uniform Partnership Act), 841 See also partnerships UPC (Uniform Probate Code), 1064 URLTA (Uniform Residential Landlord and Tenant Act), 1046 See also leases of real property Uruguay Round Agreements, 165 U.S Constitution See also Bill of Rights; Fifth Amendment; search and seizure administrative agencies and, 99 adoption of, 55 amendment of, 59 commerce clause, 60–62 due process, 64–65, 126 equal protection, 65, 809 ex post facto laws, 56–57 federal powers under, 60–64 federal system established by, 55 Fourteenth Amendment, 64–65, 785–786 interpretation of, 58 involuntary servitude, 356 limitations on government of, 64–67 privileges and immunities clause, 65–66 rights and duties in, states and, 55–58 Supreme Court and, 18 U.S Courts of Appeals, 17–18 U.S Patent and Trademark Office (USPTO), 154, 166 U.S Sentencing Guidelines, 108 U.S Supreme Court, 18 USA Patriot Act, 113, 580 usages of trade, 306, 421 use and operation, 710 used goods, 465 USERRA (Uniformed Services Employment and Re-Employment Rights Act), 779–781 usury, 285–286 utilitarians, 36 utility patents, 165 uttering, 116 UUPA (Uniform Unclaimed Property Act), 375 V valid contracts, 209 validity generalization, 808 value, 558, 645 variances, 1039–1040 verdicts, 25 vertical mergers, 81 vesting, 777 Veteran’s Affairs queues, 40 vicarious liability, 749–751, 803, 832–834, 878 Vick, Michael, 679 Victim and Witness Protection Act, 112 Victims of Crime Act, 112 virtue ethics, 37–38 visas, 789 void agreements, 210 voidable contracts, 209 voidable preferences, 680–682 voidable title, 440 voir dire examination, 22–23 voluntary bankruptcy, 673–675 vote, right to, 911–912 voting by proxy, 912 voting trusts, 912 W Wage and Hour Act, 768–769 wage claims, 920 wagers, 280 waiver, 332, 335, 349–351 Wall Street Reform and Consumer Protection Act See Dodd-Frank Wall Street Reform and Consumer Protection Act warehouse liens, 388–389 warehouse receipts, 389–392, 438 warehouses, 388–393 warranties assignment of implied warranties, 321 bills of lading, 395 breach of, 503–504 deeds, 1013–1014 defined, 456 disclaimer of, 467–470 encoding warranties, 582 express warranties, 457–461 full warranties, 460 implied warranties, 462–466 international trade, 466–467 leases, 429 limited warranties, 460 in negotiation, 547–549 overview, 468 warehouse receipts, 392 warranties of title, 1013–1014 warranty against encumbrances, 462 warranty against infringement, 463 warranty deeds, 1011–1012 Warranty Disclosure Act, 629 warranty of fitness for a particular purpose, 462–463, 468 warranty of habitability, 1053 warranty of title, 462 Warwick, Dionne, 679 wasting assets corporations, 914–915 water pollution, 1027–1028 ways of necessity, 1002 weather, 340–341 weight requirements, 802 well-known marks, 187–188 whistleblowers, 763–764, 765–766, 946, 972 white collar crimes defined, 113 penalties, 108–112 roster of, 109–110 types of, 113–120 White-Collar Crime Penalty Enhancement Act, 111 whole life insurance, 710 wholly owned subsidiaries, 182–183 wild animals, 373 will contests, 1072 Williams, Greg, 47 Williams, Robin, 1069 Williams Act, 945–946 wills, 1064–1070 WIPO (World Intellectual Property Organization), 187 wire fraud, 119 workers’ compensation, 783–785 works for hire, 162 World Intellectual Property Organization (WIPO), 160, 187 World Trade Organization (WTO), 184–187 WorldCom, 110 writs (process), 21 writs of certiorari, 18 wrongful dishonor, 581–582 Z zoning, 1038–1040 SUBJECT INDEX Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 SI-21 www.downloadslide.net Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 & E-COMMERCE CYBER L AW www.downloadslide.net A University’s Access to Your Computer Google’s Impact on Trials p 64 The Nigerian “I Need Your Help” E-Mails Blocking WiFi to Charge More Contract Formation on the Internet Insurance Contracts & E-Sign p 235 “I have read and understand these terms.” p 427 p 429 p 628 p 445 p 463 p 700 Emails: The Destruction of a Career, Destruction of a Firm p 971 MERS and Problems Supply Chain and Risk Management p 1017 Data Barns, Nuisance, and E-Commerce p 1037 Where There’s a Video, Is There a Will? p 1067 p 484 SPORTS & ENTERTAINMENT L AW When Players Break the Law and Owners Are Offensive p The Bounty Program and the New Orleans Saints p 47 Ticket Issues and Antitrust p 81 Cycling Through Federal Funds p 117 Liability for Injuries under the Sports Exception Doctrine p 147 Endorsement Contracts p 577 Engines Are from Mars; Priorities Are from Financing Statements p 653 They Were Bullies: Mean Girls in Cyberspace p 122 Rejection in Cyberspace p 522 Electronic Presentment: One Fell Swoop, All Rights, All Payments, New Laws p 567 The Open Net, Net Neutrality, and the FCC’s Authority p 92 “Wii” Were Hurt p 508 New Flexibility for Cyberspace Commercial Paper p 539 p 48 Steve Jobs’s E-Mails in Apple’s Antitrust Litigation p 77 The Deal with Dell Click “Like,” Waive Your Remedies The Check Is in the Internet p 23 Piggybacking on Wireless Networks Internet and Interstate p p 329 The NFL and Concussion Protocol p 627 From Millions to Nada: Celebrity Bankruptcies p 679 The New England Patriots and Their Season License Holders p 1004 The Star Wars Studio p 1039 The Quarter Pipe 360 Liability Issue p 1057 Wills, Estates, & Probate Mistakes of the Rich and Famous p 1069 Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 www.downloadslide.net List of Figures FIGURE 2-1 The Federal Court System p 16 FIGURE 28-3 Qualified Indorsement FIGURE 2-2 The Thirteen Federal Judicial Circuits FIGURE 2-3 Sample State Court System p 17 p 19 FIGURE 2-4 Dispute Resolution Procedures p 27 FIGURE 3-2 The Endless Cycle of Societal Interaction p 42 p 45 FIGURE 4-1 Governments of the United States FIGURE 4-2 Amending the U.S Constitution FIGURE 31-3 Letter of Credit p 73 FIGURE 6-1 Structure of the Federal Trade Commission FIGURE 6-3 Steps in Agency Rulemaking p 87 p 88 p 93 FIGURE 7-1 Roster of White-Collar Criminal Charges p 109 FIGURE 9-1 Summary Comparison of Intellectual Property Rights p 174 FIGURE 11-1 Contractual Liability FIGURE 11-2 Contract p 209 FIGURE 12-1 Offer and Acceptance p 227 FIGURE 13-1 Avoidance of Contract p 250 FIGURE 14-1 Consideration and Promises FIGURE 17-1 Surfboard Transaction Diagram p 316 FIGURE 18-1 Causes of Contract Discharge p 319 p 322 p 333 p 352 p 379 FIGURE 21-1 Negotiable Warehouse Receipt p 391 FIGURE 22-1 Terms in Contracts under UCC Article §2-207 p 417 p 442 FIGURE 23-2 Passage of Title under Article p 444 p 448 FIGURE 24-1 UCC Warranties p 660 FIGURE 34-1 Declaration of Bankruptcy FIGURE 39-1 Unlawful Discrimination under Title VII of the Civil Rights Act of 1964 as Amended by the Civil Rights Act of 1991 p 798 FIGURE 39-2 Employer Procedure—Sexual Harassment FIGURE 41-1 Partnership Agreement FIGURE 43-1 Consolidation FIGURE 43-2 Merger p 895 FIGURE 45-1 Registration Periods p 932 FIGURE 47-1 Powers of Directors FIGURE 48-1 Form of Warranty Deed p 519 p 540 p 980 p 1012 FIGURE 49-1 Penalties for Violations of Federal Environmental Laws p 1035 p 520 FIGURE 28-2 Special Indorsement p 843 p 894 p 506 p 539 p 804 FIGURE 42-1 Comparison of General Partnership, Limited Partnership, Limited Liability Company, and Limited Liability Partnership p 875 FIGURE 26-2 Buyer’s Remedies under Article FIGURE 28-1 Blank Indorsement p 754 FIGURE 46-1 Theories of Accountants’ Liability to Third Parties p 967 p 468 FIGURE 27-3 Bearer versus Order Paper p 688 p 720 p 499 FIGURE 27-2 Draft p 680 p 704 FIGURE 26-1 Seller’s Remedies under Article FIGURE 27-1 Promissory Note p 678 FIGURE 34-2 Anatomy of Bankruptcy Case FIGURE 41-2 Limitations on Authority of Individual Partner to Bind Partnership p 849 p 369 FIGURE 20-2 Bailment of Personal Property FIGURE 23-3 Risk of Loss p 659 FIGURE 33-2 Priorities in Transfer of Collateral by Sale FIGURE 38-1 Employer and Union Unfair Labor Practices Charge p 771 p 294 FIGURE 17-3 Can a Third Person Sue on a Contract? p 624 FIGURE 33-1 Priority of Secured Interest under Article FIGURE 37-1 Liability for Torts of Agent or Employee FIGURE 17-2 Limitations on Transfer of Rights and Duties FIGURE 23-1 Delivery and Shipping Terms FIGURE 32-1 The Legal Environment of the Consumer FIGURE 36-1 Agency Relationships FIGURE 16-1 Hurdles in the Path of a Contract FIGURE 20-1 Inter Vivos Gift p 608 p 609 FIGURE 31-4 The Contracts Involved in Letter-of-Credit Transactions p 609 FIGURE 35-1 Subrogation p 270 p 574 p 607 FIGURE 34-3 Nondischargeable Debts in Bankruptcy p 212 FIGURE 19-1 What Follows the Breach FIGURE 30-1 Differences between a Check and a Draft FIGURE 31-2 Release of Surety p 59 FIGURE 6-2 The Administrative Chain of Command FIGURE 29-2 Defenses to Payment of Negotiable Instrument p 565 FIGURE 31-1 No Release of Surety p 56 FIGURE 5-1 Types of Anticompetitive Behavior p 541 FIGURE 29-1 Assignee, Holder, and Holder-in-Due-Course Rights p 557 FIGURE 3-1 Guidelines for Analyzing a Contemplated Action p 38 FIGURE 3-3 Categories of Ethical Behavior p 540 FIGURE 28-4 Restrictive Indorsement p 529 FIGURE 51-1 Living Will p 1071 FIGURE 51-2 Distribution Per Capita and Per Stirpes FIGURE 51-3 Trust Principal/Income Allocation p 1076 p 1080 Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 ... ABOUT THE AUTHORS XXVI PART 1 10 THE LEGAL AND SOCIAL ENVIRONMENT OF BUSINESS The Nature and Sources of Law The Court System and Dispute Resolution Business Ethics, Social Forces, and the Law The. .. Edition ANDERSON’S BUSINESS LAW and The Legal Environment Comprehensive Volume DAVID P TWOMEY Professor of Law Carroll School of Management Boston College Member of the Massachusetts and Florida... 29 Business Ethics, Social Forces, and the Law 33 3-1 What Is Business Ethics? 34 3-1a 3-1b 3-1c 3-1d The Law as the Standard for Business Ethics 34 The Notion of Universal Standards for Business