The Legal Environment of Business For these Global Editions, the editorial team at Pearson has collaborated with educators across the world to address a wide range of subjects and requirements, equipping students with the best possible learning tools This Global Edition preserves the cutting-edge approach and pedagogy of the original, but also features alterations, customization and adaptation from the North American version Global edition Global edition Global edition T he Legal Environment o f Business A Critical Reasoning Approach SEVENTH edition N ancy K Kubasek • Bartley A Brennan • M Neil Browne SEVENTH edition Kubasek Brennan Browne This is a special edition of an established title widely used by colleges and universities throughout the world Pearson published this exclusive edition for the benefit of students outside the United States and Canada If you purchased this book within the United States or Canada you should be aware that it has been imported without the approval of the Publisher or Author Pearson Global Edition KUBASEK_1292060158_mech.indd 7/25/14 4:21 PM THE LEGAL ENVIRONMENT BUSINESS OF A01_KUBA0156_07_GE_FM.indd 01/08/14 1:27 PM A01_KUBA0156_07_GE_FM.indd 01/08/14 1:27 PM THE LEGAL ENVIRONMENT BUSINESS OF A Critical Thinking Approach S eventh E d ition G lobal E d ition Nancy K Kubasek BARtley A Brennan M Neil Browne Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo A01_KUBA0156_07_GE_FM.indd 01/08/14 1:27 PM Editor in Chief: Stephanie Wall Head of Learning Asset Acquisition, Global Edition: Laura Dent Executive Editor: Bob Horan Program Management Team Lead: Ashley Santora Project Manager: Karen Kirincich Editorial Assistant: Kaylee Rotella Assistant Acquisitions Editor, Global Edition: Debapriya Mukherjee Associate Project Editor, Global Edition: Binita Roy Executive Marketing Manager: Anne K Fahlgren Project Management Team Lead: Judy Leale Production Project Manager: Ilene Kahn Senior Manufacturing Controller, Production, Global Editions: Trudy Kimber Cover Design: Lumina Datamatics Cover Photo: © RAGMAG/Shutterstock Procurement Specialist: Nancy Maneri-Miller Full-Service Project Management: S4Carlisle Publishing Services Composition: S4Carlisle Publishing Services Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsonglobaleditions.com © Pearson Education Limited 2015 The rights of Nancy K Kubasek, Bartley A Brennan, and M Neil Browne to be identified as the authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988 Authorized adaptation from the United States edition, entitled The Legal Environment of Business, 7th edition, ISBN 978-0-13-354642-2, by Nancy K Kubasek, Bartley A Brennan, and M Neil Browne, published by Pearson Education © 2015 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a license permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS All trademarks used herein are the property of their respective owners The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library 14 13 12 11 10 9 8 7 6 5 4 3 2 1 ISBN 13: 978-1-292-06015-6 ISBN 10: 1-292-06015-8 Typeset in 10.5/12 ITC Garamond by S4Carlisle Publishing Services Printed and bound in Great Britain by CPI Group (UK) Ltd, Croydon, CRO 4YY A01_KUBA0156_07_GE_FM.indd 01/08/14 1:27 PM To the numerous students who appreciate the importance of developing their critical thinking skills for their personal growth and development NANCY K KUBASEK AND M NEIL BROWNE To Sandra for everything BARTLEY A BRENNAN A01_KUBA0156_07_GE_FM.indd 01/08/14 1:27 PM A01_KUBA0156_07_GE_FM.indd 01/08/14 1:27 PM www.freebookslides.com Brief Contents P A R T O N E What is the Legal Environment of Business? 37 1 Fundamentals of Critical Thinking and Reasoning 38 2 What is the Legal Environment of Business? 51 3 Legal Frameworks in the U.S. 68 4 Settling Disputes Without Litigation 106 5 The Constitution for Business Managers 134 6 Defining White-Collar Crime 171 7 Business Ethics and Social Responsibility 213 8 The International Legal Business Environment 240 P A R T T W O Private Law 273 9 Contract and Sales Law—I 274 10 Contract and Sales Law—II 302 11 Tort Law 321 12 Modern Product Liability Law 355 13 Real Estate and Property Law 385 14 Intellectual Property Rights 409 15 Agency Relationships 431 16 Company and Partnership Law—I 455 17 Company and Partnership Law—II 474 P A R T T H R E E Public Law 499 18 Administrative Agencies and Functions 500 19 The Employment Relationship 521 20 Laws Governing Labor–Management Relations 553 21 Discrimination at Work 583 22 Environmental Law 629 23 Rules Governing the Issuance and Trading of Securities 658 24 Enforcing Antitrust Policies 708 25 Consumer Protection Practices 748 Appendix A The Constitution of the United States 792 Appendix B Uniform Commercial Code (2000 Official Text), Article 2 798 Glossary 813 Index 827 A01_KUBA0156_07_GE_FM.indd 01/08/14 1:27 PM www.freebookslides.com A01_KUBA0156_07_GE_FM.indd 01/08/14 1:27 PM www.freebookslides.com Contents Preface 29 Acknowledgments 33 About the Authors 35 P A R T O N E What is the Legal Environment of Business? 37 1 Fundamentals of Critical Thinking and Reasoning 38 The Importance of Critical Thinking 38 A Critical Thinking Model 39 United States of America v Martha Stewart and Peter Bacanovic 40 The Critical Thinking Steps 41 Facts 41 Issue 42 Reasons and Conclusion 42 Rules of Law 43 Ambiguity 43 Ethical Norms 43 Analogies 44 Missing Information 45 Using Critical Thinking to Make Legal Reasoning Come Alive 45 Legal Reasoning 46 Applying the Critical Thinking Approach 50 Assignment on the Internet 50 On the Internet 50 For Future Reading 50 2 What is the Legal Environment of Business? 51 Definition of the Legal Environment of Business 52 Definition of Law and Jurisprudence 53 Natural Law School 54 Positivist School 55 Sociological School 55 American Realist School 56 Critical Legal Studies School 56 Feminist School 56 Law and Economics School 57 Sources of Law 57 The Legislature as a Source of Statutory Law 58 The Judicial Branch as a Source of Case Law 59 A01_KUBA0156_07_GE_FM.indd 01/08/14 1:27 PM www.freebookslides.com 834 index Forgery, 191 Formal rulemaking, 504 Forum non conveniens, doctrine of, 77–78 Forward mergers, 735 Foster, Gene, 172 Fourteenth Amendment, 149, 165 Fourth Amendment, 155–159 Fox Television Stations, Inc v Federal Communications Commission, 511 Fox v Mountain Electric, 277–278 France, sexual harassment in, 598 Franchise agreement, 468 Franchise, defined, 770 Franchise fees, 468 Franchise Rule, 469 Franchising, 467–469 Franchising relationships, 769–770 Franchising Rule (1979), 770 Frankel, Martin, 695 Frankson v Browne & Williamson, 327 Fraud computer, 194–195, 196 contractor, 205 in corporate setting, 191–193 cost of insurance, 172 costs, 201 criminal, 287–288 defined, 288 detecting, 197 e-commerce and, 701 securities, 681, 692–698 whistleblowers and, 202, 203, 205 white-collar crime, 171–173 Fraud-on-the-market theory, 698 Fraudulent concealment, 191 Freddie Mac, 669 Free speech corporate commercial speech, 151–154 corporate political speech, 154–155, 169 hate speech, 150–151 regulation of new technologies, 150 student speech, 149–150 Freedom, as ethical norm, 43, 44, 48 Freedom of Information Act of 1966 (FOIA), 512, 513 Freedom-to-contract doctrine, 763 Full warranties, 770 Further assurances, covenant, 393 Future interest, 388–389 G GAAP (Generally Accepted Accounting Principles), 378 GAAS (Generally Accepted Auditing Standards), 378 Gaddy v Douglass, 448–449 Gaetano & Associates, Inc v National Labor Relations Board, 567–568 GAF Corporation, 213 Galanter, Marc, 85 Garnishment, 750 Z04_KUBA0156_07_GE_INDX.indd 834 Gator.com Corp v L.L Bean, Inc., 77 Gender, Title VII protection and, 603 General Accounting Office (GAO), 122 General Agreement on Tariffs and Trade (GATT), 259, 261 General Dynamics Land Systems, Inc v Dennis Cline et al., 608 General jurisdiction, 78, 81 General Motors (GM), 482, 786 General Nutrition (GN), 767 General partnerships, 455, 458–465 General public director (GPD), 197 General Services Administration (GSA), 512 General warranty deed, 393, 394 Generally Accepted Accounting Principles (GAAP), 378 Generally Accepted Auditing Standards (GAAS), 378 Genuine assent, 287–290 Geographic markets, 726, 727, 734–735, 737 Geragos v Borer, 327 Germany eminent domain in, 399 judicial system in, 100 Gift (property), 402–403 Gilmer v Interstate/Johnson Lane Corp., 117 GlaxoSmithKline, 523 Global climate change, 642–643 Global commons, 652 Global dimensions of administrative agencies, 516 of agency law, 450–451 of alternative dispute resolution (ADR), 127–128 of American legal system, 99–100 of business associations, 469–470 of business ethics and social responsibility, 234 of consumer law, 786–787 of contract and sales law, 316–317 of corporations, 493 of employment discrimination, 622–623 of employment relationship, 547 of environmental law, 650–653 of ethics and social responsibility, 234 on intellectual property law, 425–426 of labor-management relations, 577 of legal environment of business, 63 of product liability law, 379–380 of property law, 404 of securities regulation, 701–704 of social responsibility, 234 of tort law, 349 of white-collar crime, 205–206 Global dispute resolution, 267–269 Globalization, pros and cons of, 268–269 Gonzales v Raich, 141–142, 143, 144 Good-faith bargaining, 572 Good-faith rule, 480–481 Google, 242 Gore v BMW, 324–325 Gossels v Fleet National Bank, 442 Government contracts with, 307–308 international environment of business and, 241–242 responsibility for social responsibility, 231–232 role in consumer law, 763–764 spending and taxing powers of federal, 146, 148 subsidies approach to pollution, 632 Government agencies, 51 Government subsidies, 632 Government Sunshine Act of 1976, 513 Grand juries, 84–85, 177 Grand larceny, petty larceny vs., 194 Granholm v Heald, 144 Gray, Kevin, 191–192 Grease payments, 244, 245, 703 Greece, 493 Greenman v Yuba Power Products Co., 370 Griggs v Duke Power Co., 593 Groh v Ramirez, 156 Groupthink, 186 individual codes of ethics vs., 220–221 Grutter v Bollinger, 618, 620 Guaranty contract, 751 Guillen, Ignacio, 143 Gulf Cooperation Council (GCC), 260 Gun-Free School Zone Act, 140 H Hackers, 194 Hague Convention on the Service of Judicial and Extrajudicial Documents in Civil and Commercial Matters, 379 Hall Street Associates, L.L.C v Mattel, Inc., 112 Handicapped individual, defined, 613 Harassment, 593–596 Hart-Scott Robinson Act of 1976, 738 Hart-Scott-Rodino Antitrust Improvement Act, 764 Harvard School approach to antitrust law, 710, 711 Hate speech, 150–151 Haughton, Aaliyah Dana, 344 Hazard Elimination Program, 143 Hazardous Substances Labeling Act of 1960, 361 Hazardous waste, defined, 644 Hazardous waste regulation, 643–647 HealthSouth, 173 Hegel, Georg, 53 Help Efficient Accessible, Low-cost, Timely Healthcare (HEALTH) Act (2011), 328 Hertindahl-Hirschman Index (HHI), 737 Hertz Corporation v Friend, 74–75 Hindu law, 246, 247, 248 Hobbes, Thomas, 53 Hobby Protection Act, 764 Hodgson v Greyhound Lines, Inc., 611–612 Holiday Act of 1973, 547 30/07/14 5:07 PM www.freebookslides.com index Homeland Security Act (2002), 202 Homestead exemption, 751, 755 Honda Motor Co v Oberg, 323–324 Hopwood v State of Texas, 619 Horizontal boycotts, 719–720 Horizontal mergers, 735, 737, 738 Horizontal price-fixing, 717–719 Horizontal restraints of trade, 717–719 Hostile bids, 688–689 Hostile environment cases, 593, 594, 595, 596 Hot cargo agreement, 576 Hour and wage laws, 522–525 Household Credit Services, Inc v Pfenning, 775–776 Humanist theories on ethics, 217, 219 Hutton, E.F., 186 Hybrid rulemaking, 505 I Iacono v Lyons, 294–295 ICANN (Internet Corporation for Assigned Names and Numbers), 414 Identity theft, 193, 780 Ignazio v Clear Channel Broadcasting, Inc et al, 115–116 Implied authority, agency by, 436–438 Implied contract exception, 585 Implied contracts, 276 Implied (implied-in-fact) contracts, 277–278 Implied covenant of good faith and fair dealing exception, 585 Implied warranty, 365 Implied warranty of merchantability, 365–366 Import controls, 259 Impossibility of performance, discharge of contract by, 307 In forma pauperis, 90 In personam jurisdiction, 69, 77 In Re Abbott Laboratories Derivative Shareholders Litigation, 484–485 In re Exxon Valdez, 216–217 In re KeyTronics, 460–461 In re Savage v United States Bankruptcy, 757–758 In re Union Carbide Corp Gas Plant Disaster v Union Carbide Corp., 253–254 In rem jurisdiction, 72 Incidental beneficiary contracts, 296 Indemnification, duty of, 440 Indemnity, 440 Independent administrative agencies, 502 India, alternate dispute resolution in, 128 Indictment, 84, 177 Indirect price discrimination, 732 Indirect price-fixing, 717 Individual codes of ethics, 220–221 Individual with disability, defined, 614 Industry codes of ethics, 222–223 Informal negotiations, 86 Informal rulemaking, 504–505 Z04_KUBA0156_07_GE_INDX.indd 835 Information (criminal procedure), 177 Informational picketing, 576 In-house counsel, 81, 82 Injunctions, 312 Injunctive action, 682 Insanity, competency for contracts and, 291 Insanity defense, 179 Insider trading, 694–697, 698, 700, 703 Insider Trading and Securities Fraud Enforcement Act of 1988, 699 Insider Trading Sanctions Act of 1984, 698 Inspections, OSHA, 537–538 Institute of Internal Auditors, 223 Institutional limitations of agencies, 513–515 Institutional school of social responsibility, 231–232 Insurance, professional code of ethics in, 224–225 Intangible property, 402 Intellectual disability, defined, 615 Intellectual property, defined, 409 Intellectual property law, 385 copyrights, 419–420, 423–425 fair use doctrine, 420–423 Federal Trademark Dilution Act of 1995 (FTDA), 413–415 global dimensions of, 425–426 patents, 417–419 trade dress, 413 trade secrets, 416–417 trademarks, 409–412, 414 Intended beneficiary contracts, 296 Intent, defined, 329 Intent to accept, 283 Intent to monopolize, 729 Intentional infliction of emotional distress, 340–341 Intentional interference with a contract, 342 Intentional torts, 329, 330 against economic interests, 341–343 against persons, 329–341 against property, 341 Interest in land, contracts for sale of, 293–294 Interlocking directorates, in Clayton Act of 1914, 731 Intermediate courts of appeal, 78–79 state, 81 Intermediate scrutiny, 165 Internal Revenue Code, 224 International Brotherhood of Teamsters (IBT), 562 International business law, 249 foreign direct investment, 252–255 global dispute resolution, 267–269 international franchising, 252 international licensing, 251 legal and economically integrated institutions assisting, 259–267 risks of engaging in, 255–259 trade and, 250–251 835 International Center for the Settlement of Investment Disputes (ICSID), 268 International Chamber of Commerce, 268 International Covenant on Economic, Social, and Cultural Rights, 547 International franchising, 252, 469 International House of Pancakes v Theodore, 140 International Labor Organization (ILO), 577 International law, 249 International legal environment of business corruption/trade and, 243–246 cultural dimensions of, 243 economic dimensions of, 242–243 legal dimensions of, 246–248 legal systems, 248–250 political dimensions of, 241–242 International licensing, 251 International Securities Enforcement Cooperation Act (ISECA) (1990), 234, 661, 662, 703 International trade, 243–244, 250–251 International Trade Administration (ITA), 259 International Trade Commission (ITC), 259 International trade groups, 51 Internet, 618 case law precedents and, 60 cybercrime, 198 First Amendment rights and, 150 fraud regulation and, 701 online gambling ban, 267 in personam jurisdiction, 77 SEC and, 666 securities registration on, 701 Internet contracts, 285–286 Internet Corporation for Assigned Names and Numbers (ICANN), 414 Internet franchising, 469 Internet Tax Freedom Act (1998), 148 Internet Tax Nondiscrimination Act (2003), 148–149 Interrogatories, 90 Interstate commerce, 701 Commerce Clause and, 139–142, 143, 145–146 federal preemption and, 135–136 Interstate Commerce Act of 1887, 708 Interstate Commerce Commission (ICC), 500 Intoxication, competency for contracts and, 291 Intrabusiness crime, 189 Intrastate offering, from securities registration, 677–678 Investment Advisors Act of 1940, 663 Investment Company Act (ICA) of 1940, 660, 662 Investor’s Overseas Services (IOS), 206 Involuntary bankruptcy petition, 753 Involuntary transfer of personal property, 403 30/07/14 5:07 PM www.freebookslides.com 836 index Iraq reconstruction, fraud in, 203, 205 Ireland, minimum wage in, 524 Islamic law, 246, 247–248 Issue in critical thinking process, 42 legal reasoning and, 38–39, 46 Issuers, of securities, 674 J Jackson v Rich’s, 340 JAMS/Endispute, 109, 124, 127 Janis, Irving, 186 Japan agency law in, 450 class actions in, 100 pollution controls in, 635 punitive damages in, 328 J.E.B v Alabama, ex rel T.B., 92–94 Jennifer Johnson v Board of Regents of the University of Georgia, 620 “Joe Camel,” 228–229 Johannesburg Earth Summit, 652 Johnson & Johnson, 231 Johnson v Santa Clara County Transportation Agency, 619 Joint stock companies, 466, 467 Joint tenancy, 390 Joint ventures, 255, 467 Jones v Clinton, 595 Jones v National American University, 610–611 Joseph Oncale v Sundowner Offshore Services, 596 Judge(s) appellate courts, 97 appointment of, 83 bankruptcy, 753 role of, 82–83 sentencing white-collar criminals, 187 Judicial activists, 84 Judicial branch, 57 administrative agency limitations by, 514 as source of case law, 59–60 Judicial power, 503 Judicial restraint, 84 Judicial review, 59–60 of adjudicative proceedings, 510 power of, 83–84 Judicial review of administrative agency rulemaking, 505–507 Judicial review of rulemaking, 505–506 Judicial system, in Germany, 100 Jurisdiction appellate, 68 concurrent federal, 74, 75–76 defined, 68 exclusive federal, 73–74 National Labor Relations Board (NLRB), 558 original, 68 over persons and property, 69–72 in personam, 69, 77 in rem, 72 state court, 73 subject matter, 73–76 Z04_KUBA0156_07_GE_INDX.indd 836 Jurisdictional picketing, 576 Jurisdictional strikes, 575 Jurisprudence defined, 53 schools of, 53–57 Jury, 84–85 mock, 95 selection of, 91–92, 94 shadow, 95 Jury instructions, 96 Just law, 54 Justice, as ethical norm, 43, 44, 48 Justice Department antitrust law and, 712–713 merger guidelines and, 737, 738 K Kant, Immanuel, 219 Keller v Central Bank of Nigeria, 256–257 Kimel v Florida Board of Regents, 609 King, Martin Luther Jr., 54 Kozlowski, Dennis, 173 Kyllo, Danny, 156 Kyoto Protocol, 643 L Labeling, deceptive, 764, 769 Labor dislocation, antitrust statutes and, 711 Labor unions boycotts by, 576 history, 553 labor organizing, 562–572 percentage of workers in, 554 picketing by, 576 strikes by, 573–575 in Sweden, 574 unfair practices, 556–557 U.S largest, 562 Labor-management committees, 566 Labor-management relations see also Labor unions collective bargaining, 572–573 global dimensions of, 577 legislation governing, 555–556 National Labor Relations Board (NLRB), 557–562 strikes, 573–575 Labor’s bill of rights, 556 Laissez-faire ideology, 139, 708, 763 Landrum-Griffin Act of 1959, 554, 556 Lanham Act of 1947, 410, 413, 764, 769 Larceny, 193–194 Last-clear-chance doctrine, 346 Law(s) civil, 61–62 classifications of, 61–63 criminal, 61, 62 cyber, 63 as dynamic vs static, 52–53 governing franchising, 467–468 how a bill becomes a, 58–59 just, 54 private, 63 procedural, 63 professional code of ethics in, 225 public, 62 restatements of the, 60 schools of jurisprudence and, 53–57 sources of, 57–61 substantive, 63 technology and, 70 unjust, 54 Law and economics school, 54, 57 Law of torts See Tort(s); Tort law Lay, Kenneth, 173, 202 Lease, defined, 389 Leasehold, 389 Ledbetter v Goodyear Tire & Rubber Co., 607 Leegin Creative Leather Products, Inc v PSKS, Inc dba Kay’s Kloset, Kay’s Shoes, 721–722 Legal acceptance, 283–286 Legal environment of business, 51 see also International legal environment of business defined, 52 five features of, 52–53 global dimensions of, 63 top 10 reasons for studying, 53 Legal frameworks, in U.S actors in, 81–85 adversarial system, 85–86 civil litigation, steps in, 86–99 court system, structure of, 78–81 families of law, 246–248 global dimensions of, 99–100 jurisdiction, 68–76 venue, 76–78 Legal literacy, 52 Legal object, 291–293 Legal offer, 280–282 Legal precedents critical thinking process and, 43 legal analogies and, 44 legal reasoning and, 47 Legal reasoning critical thinking approach to, 38–39 critical thinking skills and, 38–39 steps in, 47–49 Legal system See Legal frameworks, in U.S Legislative branch, 57 see also Congress administrative agency limitations by, 514 as source of statutory law, 58–59 Legislative power, 503 Legislative process, 58–59 Lenin, Vladimir, 248 Letters of comment or deficiency, 675 Liability accountants’, 378 to bystanders, 376 contractual, 443 criminal, 447 of disclosed principal, 445 30/07/14 5:07 PM www.freebookslides.com index market share, 376–377 of partially disclosed principal, 445 service, 377–379 tort, 445–447 Libel explained, 331 by a public figure, 336 Librarian of Congress, 424 License to property, 389 Liebeck v McDonald’s, 327 Lie-detector testing, preemployment, 546 Liens, 750 Life estate, 388 Lilly Ledbetter Fair Pay Act (2009), 607 Limited liability companies (LLCs), 491–493 Limited liability limited partnership (LLLP), 456, 465 Limited partnership (limited liability partnership), 456, 465, 466 Limited warranties, 770–771 Liquidated damages, 310 Liquidated debt, 287 Liquidation preferred stock, 478 Litigation, 61 defined, 268 global dispute resolution with, 268 Litigation Services, 94–95 Llewellyn, Karl, 56 Local administrative agencies, 514–515 Lockhard v Pizza Hut Inc., 596 Lok Adalat system, 128 London Commercial Court, 249, 268 Long-arm statute, 70 Lore, Nicholas, 533 Lorillard Tobacco Co et al., v Thomas F Reilly, 153–154 Lost property, 403 Loyalty to principal, duty of, 440 Lucas v South Carolina Coastal Commission, 161–162, 163 M Maastricht Treaty, 263–264, 265 MacPherson v Buick Motor Co., 357 Madison, Marbury v., 59–60 Madoff, Bernard, 172 Magistrate, 175, 176–177 Magnuson-Moss Warranty Act-Federal Trade Improvement Act of 1975, 764, 770, 771 Mailbox rule, 283 Majority opinion, 97 Malice, 335, 336 Malpractice suits, 377–378 Management affirmative action plans and, 622 biculturalism, 608 business ethics and, 218 cost-benefit analysis and, 100 fiduciary obligations, 485–491 groupthink and, 186 OSH Act, 541 overlapping responsibility, 199 Z04_KUBA0156_07_GE_INDX.indd 837 prevention of white-collar crime, 197, 199 Managerial school of social responsibility, 230–231 Managers (corporation), 481, 485 Mandatory arbitration agreement, 116–117 Mandatory arbitration clause/ agreement, 114, 117–118, 119, 123, 125 Mandatory subjects of collective bargaining, 573 Manifest program, 644–645 Manufacturing defect, 375 Marbury v Madison, 59–60, 83 Market Reform Act of 1990, 661, 662 Market share liability, 376–377 Market share theory, 377 Marketable discharge permits, 632–633 Marx, Karl, 247, 248 Marxism/Leninism, 269 Marxist government/theory, 241, 247 Massachusetts v Environmental Protection Agency, 506–507, 639–640 Massed picketing, 576 Material breach of contract, 303–304 Matsushita Electric Industrial Co v Zenith Radio Corp., 731 Mattel, 112 Maximum contaminant level goals (MCLGs) for drinking water, 638 McBride v Taxman Corp., 444 McConnell International, 198 McKennon v Nashville Banner, 612 McMillan v City of New York, 615–616 McNulty, Paul, 181 Means test, 756 Mechanic’s lien, 750 Mediate.com, 109 Mediation, 108–110 advantages of, 109–110 common uses of, 109 court-annexed vs voluntary, 126–127 criticisms of, 110 defined, 108 mediator, selection of, 108–109 Mediators, selection of, 108–109 Medical tests, employee, 546 Medium income test, 756 Meeting-the-competition defense, 733 Mens rea, 174 Mercado Commun del Ser Mercosul (Mercosul), 260 Merchantability, implied warranty of, 365–366 Merger Guidelines, Justice Dept., 737, 738 Mergers Clayton Act of 1914 on, 733–739 conglomerate, 736 defined, 733 guidelines, 737–738 horizontal, 735 impact on competition, 735 increase in, 733–734 vertical, 735–736 Merit claims, 598–599 837 Merrill Lynch, 683 Mexico, Federal Consumer Protection Act of 1975 (FCPA) in, 787 Microeconomics, 697 Microsoft, 713–714 Miller v AT&T Corp., 531 Mineral rights, 387 Minimum contacts, concept of, 71, 72 Minimum wage, 522, 524, 525 Minitrials, 123 Minneapolis & St Louis Railroad Co v Beckwith, 169 Minors, 290–291 Miranda rights, 175–176 Miranda v Arizona, 175, 176 Mirroring terms of an offer, 285 Misappropriation, 343 Misdemeanors, 175 Mislaid property, 403 “Misleading Advertising Directive,” 786–787 Missing information relevant, 45, 49 request for, 45 Missouri v Seibert, 176 Misstatement of corporation, 694 Misstatement of corporations, 696 Mistake (contract law), 290 Mistake-of-fact defense, 179 Mitsubishi Motors Corp v Soler Chrysler-Plymouth, 128–129 Mock jury, 95 Model Law on Cross-Border Insolvency, 752 Modified comparative negligence, 346 Modify (appellate court), 97 Monetary damages, 309–311 Monopolies, 726–731 attempt to monopolize, 730–731 defined, 726 determining relevant product market and, 726–728 intent to monopolize and, 729 Monopolization, 728–729 Montreal Protocol on Substances That Deplete the Ozone Layer, 653 Moore v Midwest Distribution, Inc., 292–293 Morgantown (white-collar prison camp), 185 Morse v Frederick, 150 Mortgage foreclosure, 750 Motion to dismiss, 88 Motions, pretrial, 89–90 Motorsport Marketing, Inc v Wiedmaier, Inc., 439 Movies, copyright and, 424–425 Multinational corporation, 475, 476 Municipal Securities Rulemaking Board, 679 Music copyright, violation of, 423, 424 Muslims, workplace discrimination of, 602 Mutual agreement, discharge of contract by, 305–306 30/07/14 5:07 PM www.freebookslides.com 838 index N Naccio, Joseph, 172 Nader, Ralph, 223 NAFTA (North American Free Trade Agreement) See North American Free Trade Agreement (NAFTA) NASDAQ (National Association of Securities Dealers Authorized Quotations), 703 National Advertising Division (NAD), 223 National Ambient Air Quality Standards (NAAQS), 640 National Association of Securities Dealers, 117–118, 223 National Association of Securities Dealers Authorized Quotations (NASDAQ), 703 National Conference of Commissioners on State Laws, 785 National Conference of Commissioners on Uniform State Law, 315, 491 National Consumer Arbitration Program, 122 National Education Association (NEA), 562 National Environmental Policy Act, 74 National Environmental Policy Act of 1970 (NEPA), 634–637 National Highway Safety Transportation Board (NHSTB), 500 National Institute for Occupational Safety and Health (NIOSH), 539 National Labor Relations Act (NLRA), 109, 554, 555–556, 557, 584 National Labor Relations Board (NLRB), 500, 557–562 National legal system, 246–248 National origin, Title VII protection and, 589, 601 National Pollutant Discharge Elimination System (NPDES), 637 National Securities Markets Improvement Act (1995), 701 Natural law school, 54–55 Negligence defenses to, 345–349 defined, 343 elements of, 343–345 negligent hiring, 446 theories of, in product liability cases, 356–358, 361–365 Negligence per se, 345, 361 Negligent design, 361 Negligent failure to warn, 357–361 Negligent hiring, 446 Negligent supervision, 446–447 Negligent torts, 329, 330, 343–349 Negotiation and settlement, 108 Nellis (white-collar prison camp), 185 New Bankruptcy Law-2011, 762–763 New Source Review (NSR), 641 New trial, motion for, 96 New York Convention, 127–128 New York Stock Exchange (NYSE), 223 Z04_KUBA0156_07_GE_INDX.indd 838 New Zealand’s Accident Compensation Act, 380 Newcal Industries, Inc v Ikon Office Solutions, 727–728 1990 Remedies Act, 661 1995 National Securities Markets Improvement Act, 701 1991 Remedies Act, 662, 682 1996 Food Quality Protection Act, 649 1979 New Franchising Rule, 770 Nixon, Richard, 702 NLRA See National Labor Relations Act (NLRA) NLRB v Cabot Carbon Co., 566 NLRB v Jones & Laughlin Steel Corp., 140 No Electronic Theft Act (1997), 423 Nolo contendere, 178 Nominal damages, 310, 322, 323 Nonbusiness contracts, 295–296 Nondischargeable debts, 754–755 Noninvestment company, 678 Non-Keynesians, 57 Nonprice vertical restraints, 722–723 Nonprofit corporations, 475, 477 Nonreporting issuer of securities, 674 Norm, defined, 47 North American Free Trade Agreement (NAFTA), 51, 249 impact, 266–267 members and purpose, 260 purpose, 266 structure of, 266 Notes, 477 Novation, 305–306 Nuisance, tort of, 630 Nutrition Labeling and Education Act of 1990, 769 NYSE See New York Stock Exchange (NYSE) O Obedience to principal, duty of, 441 Objectively impossible, defined, 307 Occupational Safety and Health Act (OSH Act) of 1970, 536–540 Occupational Safety and Health Administration (OSHA), 61, 190, 536–539 Occupational Safety and Health Review Commission (OSHRC), 539 O’Conner v Consolidated Caterers Corp., 609 Offer, methods of terminating, 282 Offeree in contract, 280 e-contracts and, 285–286 rejection by, 282 Offeror in contract, 280 revocation by, 282 Office of Compliance, 634 Office of Management and Budget (OMB), 60, 504, 514 Office of Personnel Management (OPM), 60 Office of Regulatory Enforcement, 634 Office of the Comptroller, 667 Office of Thrift Supervision, 667 Officers (corporation), 481, 485 Officers, fiduciary obligations of, 485–491 Offshore transactions, 704 “Old Joe Camel,” 228–229 Olis, Jamie, 172–173 Omnibus Crime Control and Safe Streets Act (1968), 541 One-shotters (OSs), 85 Online fantasy sports, 292 Open-end credit transaction, 774 Opening statements, 95 Operation of law, termination of principal-agent relationship by, 448 Option, 282, 298 Order for relief, 753–754 Organization for Economic Cooperation and Development (OECD), 234, 244, 260, 702–703 Organizational forms see also Company and partnership law comparison of, 455–456 factors influencing choice of, 457 Organizational picketing, 576 Organized Crime Control Act (1970), 199–200 Original jurisdiction, 68 OSHA See Occupational Safety and Health Administration (OSHA) Outsourcing, 469–470 Overlapping responsibility, 199 Overseas Private Investment Corporation (OPIC), 255 Over-the-counter (OTC) markets, 686 Overtime, employees being paid for, 523–524 Ownership, extent of, 387 P Pacific Gas and Electric Company (PG&E), 106, 107 Packaging, deceptive labeling and, 764, 769 Palazzolo v Rhode Island, 162 Par value, 480 Parens patriae suits, 714 Parents Involved in Community Schools v Seattle School District No 1, 620, 621–622 Parliament, of European Union (EU), 264 Parol (oral) evidence rule, 295–296 Partial performance, 294 Partially disclosed principal, 445 Participating preferred stock, 478 Partnerships advantages and disadvantages, 465 defined, 458 general, 459–465 limited/limited liability, 456, 465 Model General Partnership Agreement Form, 463–464 terminating, 463–464 Patent Office, 410, 419 30/07/14 5:07 PM www.freebookslides.com index Patent-infringement suit, 419 Patents, 417–419 Peer-to-peer networking, 424 Pelman v McDonald’s, 358 Penn Central Railroad, collapse of, 679 Pennsylvania State Police v U.S., 446–447 Penthouse International v Barnes, 437–438 Per se standard, 716–717 Peremptory challenges, 92 Perez v United States, 140 Perfect tender rule, 305 Performance duty of, 441–442 Performance, discharge of contract by, 303–305 Permissive subjects of collective bargaining, 573 Personal injury cases, 321, 323 Personal property, 385 defined, 402 involuntary transfers of, 403 voluntary transfer of, 402–403 Personal service, 69 Personalty, trespass to, 341 Persons, intentional torts against, 329–341, 330 Persuasion, burden of, 178 Pesticides, regulation of, 648–649 PETCO, 523 Petit juries, 84 Petty crimes, 175 Petty larceny, grand larceny vs., 194 Philip Morris tobacco case, 355 Picketing, 576 Pierce County v Guillen, 143, 144 Pinnacle Project, 396–397 Pirated goods, 252, 259 Pitch men, 771 Plaintiff defined, 69 jurisdiction and, 69–70 presenting case of, 95–96 Plante v Jacobs, 303–304 Plato, 53 Plea bargaining, 178 Pleadings, 86 Pocket veto, 59 Point sources, 637 Poletown Neighborhood Council v City of Detroit and the Detroit Economic Development Corporation, 396, 397 Police power, 143, 145, 400, 402 Political dimensions of international environment of business, 241–242 Pollution alternative approaches to, 630–633 business aspects of voluntary prevention of, 650 regulation of air, 638–643 regulation of water, 637–638 Pollution Prevention Act of 1990, 649–650 Pollution, transnational nature of, 651–652 Z04_KUBA0156_07_GE_INDX.indd 839 Pollution-control devices, subsidies for, 632 Polygraph testing, 546 Portugal, 493 Positivist school of jurisprudence, 54, 55, 56 Possessory interest, 389 Posteffective period, in securities registration process, 675 Posttrial motions, 96 Potentially responsible parties for hazardous waste, 646 Power of attorney, 436 Precedents See Legal precedents Predatory conduct, 731 Predatory pricing, 731 Preemployment testing, 546 Preexisting duty rule, 286–287 Preferred stock, 478 Prefiling period, in securities registration process, 674 Pregnancy Discrimination Act (PDA), 604 Prejudicial error of law, 97 Premanufacturing notice (PMN), 648 Premerger notification requirement, 738 Preponderance of the evidence, 510 Prescription drugs, product liability cases and, 358, 359–360 Pretrial conference, 91 Pretrial diversion (PTD), 177–178 Pretrial motions, 89–90 Pretrial stage in civil litigation, 86–91 Price discrimination, 732–733 Price-fixing, 708, 716 horizontal, 717–719 as illegal, 722 vertical, 720–721 Prima facie case, building a, 590, 593 Primary ethical norms, 48 Primary-line injury, 732 Principal-agent relationship, 432, 448–449 see also Agency law Principles of Federal Prosecution, 177 Prison sentences, for white-collar crimes, 188 Privacy rights substantive due process and, 161 Privacy rights, employee, 540–546 Privacy torts, 337–339 Private international law, 249 Private law, 63 Private Movie Company, Inc v Pamela Lee Anderson et al., 283–285 Private party suits, deceptive advertising and, 769 Private placement exemption, from securities registration, 676–677 Private Securities Litigation Reform Act of 1995, 661, 662 Private trials, 124–125 Privilege, as defense to defamation, 335–336 Privity limitation, 356–357 Probable cause, 175 Procedural due process, 159–160 839 Procedural law, 63 Procedural rule, 501 Product liability law/cases, 328, 355 global dimensions of, 379–380 liability to bystanders, 376 market share liability, 376–377 negligence, theories of, 356–358, 361–365 prescription drugs leading to, 359–360 service liability, 377–378 strict liability in tort, 370–376 theories of recovery in, 356–376 Professional codes of ethics, 223–225 Professional corporations, 475, 476–477 Professional obligation school of social responsibility, 232 Professionals, defined, 232 Professionals, defined/ characteristics, 223 Profit-oriented school of social responsibility, 228–230 Progressive Electric, Inc v National Labor Relations Board, 564–565 Promissory estoppel, 286 Proof of claim, 754 Property bought in foreign countries, 404 as a bundle of rights, 386 defined, 385 intentional torts against, 330, 341 interpretation of, 160 land use restrictions, 398–402 Property Firsters, 162 Property law, global dimensions of, 404 see also Intellectual property; Personal property; Real property Property rights, 385 Prospectus, 673 Protected classes, 589, 590, 593, 599, 601–603 Proximate cause, 344 Proxy, 481–482 Proxy solicitations, 686–688 Public Company Accounting Oversight Board (PCAOB), 224, 670 Public corporations, 456 Public disclosure of private facts, 337 Public figure for a limited purpose, 336 Public figure for all purposes, 336 Public figure privilege, 335–336 Public Interest Disclosure Act (PIDA) (1998), 204 Public international law, 249 Public law, 62 Public policy exception, 585 Public Utility Holding Company Act of 1935, 660, 662 Public water supply system, 638 Publicly held corporations, 475, 476 Puffery, 767 Punitive damages, 310, 322, 323–329 Pure comparative negligence, 330, 346 Pure Food, Drug, and Cosmetics Act, 191 30/07/14 5:07 PM www.freebookslides.com 840 index Q Qualified privilege, 335 Quasi-contracts, 276, 279–280 Questions of fact, 91 “Qui tam” cases, 202 Quid pro quid cases, 593, 595 Quiet enjoyment, covenant for, 393 Quitclaim deed, 394 Quotas, 261, 622 R Race, Title VII protection and, 589 Rachael Schaar, Appellant v Lehigh Valley Health Services, Inc,; Lehigh Valley Physicians Business Services, Inc., 531–533 Racketeer Influenced and Corrupt Organizations Act (RICO), 199–201 Railroad Revitalization Act of 1976, 679 Random drug testing, 546 Ratification, agency by, 438 Rational basis test, 165 RCRA (Resource Conservation and Recovery Act), 644–646 Reagan, Ronald, 60 Real property, 386 defined, 386, 387 extent of ownership, 387 interests in, 387–392 involuntary transfer of, 395–398 land use restrictions, 398–402 voluntary transfer of, 392–395 RealNetworks, Inc v DVD Control Copy Association, Inc., et al., 425 Realty, trespass to, 341 Real-world problems, in legal environment of business, 53 Reasonable likelihood, 43 Reasonable person standard, 343 Reasonable-person test, 277 Reasonably foreseeable rule, 378 Reasoning See Legal reasoning Reasons supporting the conclusion, 42– 43, 46–47 Rebuttal, 96 Recognitional picketing, 576 Recording of a deed, 395 Recoverable benefits, 529 Red herring, 674 Redirect examination, 95 Reeves v Sanderson Plumbing Products, Inc., 610 Referee role of government for consumer law, 763–764 Referees, in private trials, 124 Reformation, 312 Regents of the University of California v Bakke, 619 Registration statement for securities, 673, 674, 675 failure to file, 681 misrepresentations in, 680 stop order to suspend, 682 Regulation Fair Disclosure (FD), 684–685 Z04_KUBA0156_07_GE_INDX.indd 840 Regulation school of social responsibility, 232 Regulation Z of Federal Reserve Board, 774 Regulatory crimes, 174 Regulatory takings, 161 Rehabilitation Act of 1973, 613 Reimbursement, duty of, 440 Rejection by the offeree, 282 Relationships see also Employment relationship franchising, 467, 769–770 between partners, 461–462, 464 principal-agent, 432, 448–449 Relevant product market mergers and, 734–735 monopolies, 726–728 Relief from a stay, 754 Religion, Title VII protection and, 589, 601–603 Remand (appellate court), 97 Remedies under Age Discrimination in Employment Act (ADEA), 613 for breach of contract, 309–316 consumer law, 771 under Exchange Act of 1934, 689 merger, 738–739 Truth-in-Lending Act (TILA), 773 Reno v Condon, 144 Reply, to counterclaim, 89 Reporters, 59 Republic of the Philippines v Ferdinand E Marcos, 257–258 Res ipsa loquitur, 345 Rescission, 312 Residential mortgages, 785 Resource Conservation and Recovery Act of 1976 (RCRA), 644–646 Respondent superior, 432 Restatement of the Law of Contracts, 276 Restatement (Second) of Torts, 370, 375, 378 Restatement (Third) of Torts: Product Liability, 375–376 Restatements of the law, 60 Restraint of trade, 716 Restraints of trade, 716–719 horizontal, 717–719 vertical, 720–721, 722–723 Restrictive covenants, 398–399 Retaliation, against employees, 597–598 Reverse discrimination, 618 Reversed (appellate court), 97 Revised Model Business Corporations Act (RMBCA), 477, 478, 479, 480, 483, 485 Revised Uniform Limited Partnership Act (RULPA), 465 Revised Uniform Partnership Act (RUPA), 458, 459, 462 Revocation by the offeror, 282 RICO (Racketeer Influenced and Corrupt Organizations Act), 199–201 Right of removal, 75–76 Right to convey, covenant of, 393 Rio Earth Summit, 652 R.J Reynolds, 228–229 RMBCA (Revised Model Business Corporations Act), 477, 478, 479, 480, 483, 485 Robinson-Patman Act, 731, 732 ROBS corporation, 476 Romano-Germanic civil law, 246, 247 Rome Treaty of 1957, 262 Rousso v State, 147 Rubin v Coors Brewing Co., 153 Rule 10(b)(5) of Securities Exchange Act of 1933, 681 Rule 10(b)(5) of Securities Exchange Act of 1934, 692, 693, 694, 696, 698 Rule 144, Securities Act of 1933, 679 Rule 144(a), Securities Act of 1933, 679 Rule 147, Securities Act of 1933, 679 Rule utilitarianism, 217–219 Rulemaking function of administrative agencies, 504–507 Rule-of-reason standard, 716 Rules of civil procedure, 86 Rules of law, as critical thinking step, 43, 47 RUPA See Revised Uniform Partnership Act (RUPA) S Safe Drinking Water Act (SDWA), 637, 638 Safeco Insurance Co v Burr, 779 Saint Francis College et al v Majid Ghaidan Al-Khazraji, 587 Salary arbitration, 121 Sales contract, remedies for breach of a, 312–314 Sales law, global dimensions of, 316–317 see also Contract law Same-sex harassment, 596 Sarbanes-Oxley Act (2002), 183, 202, 659, 661, 662, 670–671 corporate ethics and, 222 overview, 203 whistleblower protection under, 222 White-Collar Crime Penalty Act (2002), 191 Sastras, 248 Satisfying terms of the offer, 285 Schwarz Pharma Inc., 202 Scienter, 696 Scrushy, Richard, 173 Search warrants, 156–160 Seasoned issuer of securities, 674 SEC See Securities and Exchange Commission (SEC) SEC v Howey, 672 Secondary boycotts, 576 Secondary strikes, 575 Secondary-line injury, 732 Section 2(1) of Securities Act of 1933, 671–672 Section 2(2) of Securities Act of 1933, 675 Section of Securities Act of 1933, 677–678 30/07/14 5:07 PM www.freebookslides.com index Section 3(b) of Securities Act of 1933, 678 Section 4(2) of Securities Act of 1933, 676, 678–679 Section 4(3) of Securities Act of 1933, 679 Section 4(4) of Securities Act of 1933, 679 Section of Securities Act of 1933, 673, 676 Section 5(c) of Securities Act of 1933, 674 Section 6(b) of Securities Exchange Act of 1934, 686 Section of Securities Act of 1933, 675 Section 10(b) of Securities Exchange Act of 1934, 224, 692, 694, 696, 698, 699 Section 11 of Securities Act of 1933, 224, 678, 680 Section 11(a) of Securities Act of 1933, 680 Section 12 of Securities Exchange Act of 1934, 682 Section 12(1) of Securities Act of 1933, 675, 681 Section 12(2) of Securities Act of 1933, 224, 678, 681 Section 12(a) of Securities Act of 1933, 681 Section 12(g)(3) of Securities Exchange Act of 1934, 703 Section 13 of Securities Exchange Act of 1934, 688 Section 13(b) of Securities Exchange Act of 1934, 702 Section 13(d) of Securities Exchange Act of 1934, 689 Section 14 of Securities Act of 1933, 686–687 Section 14 of Securities Act of 1934, 688, 689, 691 Section 14 of the Securities Exchange Act of 1934, 686–687 Section 14(e) of Securities Act of 1934, 689 Section 15(b) of Securities Act of 1934, 684 Section 16 of Securities Act of 1933, 680, 700 Section 17(a) of Securities Act of 1933, 681 Section 18 of Securities Exchange Act (1934), 224 Section 22 of Securities Act of 1933, 683 Securities and Exchange Act of 1933, 659, 660, 662 defining security and, 671–673 on foreign securities, 703 liabilities, remedies, and defenses under, 680–682 registration of securities under, 673–675 resale restrictions under, 679 securities and transactions exempt from registration under, 676–679 Z04_KUBA0156_07_GE_INDX.indd 841 Securities and Exchange Act of 1934, 191, 659, 660, 662, 682–700 on disclosing compensation, 685 liabilities and remedies under, 698–699 market types and, 685–686 on proxy solicitations, 686–688 registration of securities, 683–685 securities fraud, 692–698 on securities fraud, 692 on short-swing profits, 699–700 Securities and Exchange Commission (SEC), 61, 122, 500, 663, 664 consumer protection by, 765 creation of, 663 divisions of, 663 electronic media and, 666 Exchange Act of 1934 and, 686, 687, 688 FCPA and, 702 “fictional filings” with, 676 industry code of ethics and, 223 internal functions, 666 structure of, 663, 664 Securities and Exchange Commission v Edwards, 672–673 Securities and Exchange Commission v Texas Gulf Sulphur Co., 696–697 Securities, defined/explained, 671, 685 Securities Enforcement Remedies and Penny Stock Reform Act of 1990, 661, 662 Securities Enforcement Remedies and Penny Stock Reform Act of 1991, 662, 682 Securities, explained, 658, 659 Securities fraud, 692–698, 701 Securities Investment Protection Act (SIPA), 684 Securities Investor Protection Act (SIPA), 660, 662 Securities Investor Protection Corporation (SIPC), 660 Securities Litigation Uniform Standards Act of 1998, 661 Securities regulation Dodd-Frank Act of 2010, 666–670 global dimensions of, 701–704 history, 659–660 overview, 658–659 Sarbanes-Oxley Act of 2002, 670–671 Securities Act of 1933, 671–682 Securities Act of 1934, 682–700 Securities and Exchange Commission, 663, 664 state laws, 701 summary of federal regulation, 660–662 Seisin, covenant of, 393 Self-regulating organizations (SROs), 223 Seniority system, 599 Separation of powers, 136–139 September 11th terrorist attacks, 220 Service, defined, 69 Service Employees International union (SEIU), 562 841 Service liability, 377–378 Settlement, 91, 98–99, 108, 123 Severability, arbitration and, 115 Sex (gender), Title VII protection and, 589, 603 Sexual harassment, 593–596, 598, 603 Shadow jury, 95 Shareholders, 478 proxy solicitations and, 687 role of, 481–483 Sharkey, Helen, 172 Shelf registration, 675 Sherman Act of 1890, 708, 709 combinations and restraints of trade (Section 1), 715–726 explained, 715 monopolies (Section 2), 726–731 parties enforcing, 712 provisions, 712 text, 715, 726 Shopkeeper’s privilege, 330, 339 Shopkeeper’s tort, 339 Short-swing profits, 699–700 Similar working conditions, defined, 588 Sindell v Abbott Laboratories, 377 Single European Act (SEA), 262, 263, 265 Sixth Amendment, 188 Skilling, Jeffrey, 171, 202 Skilling v United States, 694 Slander, 331 Small business bankruptcy, 761 Small business exemptions, from securities registration, 678 Small business, preserving through antitrust statutes, 711 Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), 513 Small claims court, 81 Small public offerings, 678 Smith, Adam, 763 Smith v Van Gorkom, 488–490 Snowney v Harrah’s Entertainment, Inc., 72 Social media, employee privacy and, 542 Social responsibility defined, 215 global dimensions of, 234 public concern for, 215 schools of, 225, 227–232 theories of, 215–217 Socialist law, 246, 247, 248 Society of Chartered Property and Casualty Underwriters (CPCU), 225 Sociological school of jurisprudence, 54, 55–56 Software and Copyright Act (1976), 423 Sole proprietorship, 164–165, 455, 456–457 Solid Waste Agency of Northern Cook County v United States Army Corps of Engineers, 144 30/07/14 5:07 PM www.freebookslides.com 842 index South American Common Market, 259, 260 Southern Prestige Industries, Inc v Independence Plating Co., 72 Sovereign acts doctrine, 307–309 Sovereign immunity doctrine, 256, 257 Spain, 493 Special public directors (SPDs), 197 Special-hazards exception, 528 Specialty Healthcare and Rehabilitation Center of Mobile and United Steelworkers, District 9, Petitioner, 570–571 Specific performance, 312 Speech and Debate Clause of U.S Constitution, 335 Spending powers of federal government, 146, 148 St Patrick’s Day bailout, Bear Stearns, Inc., 665 Stability, as ethical norm, 43–44, 48 Stambovsky v Ackley and Ellis Realty, 288–289 Standard(s) accounting, 378 reasonable person, 343 technology-driven, 633 technology-forcing, 633 Stanford, Allen, 172 Starbucks, 523 State administrative agencies, 514–515 State authority, Commerce Clause as restriction on, 143, 145–146 State consumer legislation, 785–786 State court jurisdiction, 73 State court system courts of last resort, 81 intermediate courts of appeal, 81 trial courts, 81 State Farm v Campbell, 324 State implementation plan (SIP), 640 State laws securities, 701 white-collar crime and, 205 State v Heckel, 772 State-of-the-art defense, 363 Statute of frauds, 293, 294–295, 298 Statutes, 58 Statutes of limitations, 362 Statutes of repose, 362–363 Statutory law legal object and, 291–292 legislature as source of, 58–59 as source of contract law, 275 Statutory limitations on administrative agencies, 512–514 Stay (bankruptcy proceeding), 754 Stewart, Martha, 40–41 Stock, 474 common, 478 convertible, 479 issued in return for consideration, 480–481 preferred, 478 Stock options, 479–480 Stock warrants, 479 Z04_KUBA0156_07_GE_INDX.indd 842 Stone, Christopher, 197 Stoneridge Investment Partners, LLC, et al v Scientific-Atlanta Inc et al., 692–694 Stop orders, 675, 682 Stored Communications Act (SCA), 542 Straight bankruptcy, 752, 756 Strict liability in contract for breach of warranty, 365–369 Strict liability in tort, 370–376 Strict liability offenses, 180–181 Strict liability torts, 329, 330, 349 Strict scrutiny, 165 Strikes (labor), 573–575 Student loans, Chapter bankruptcy and, 757 Student speech, 149–150 Subchapter C corporations, 476 Subchapter S corporation, 456, 475, 476 Subject matter jurisdiction, 73–76 Subsidies approach to pollution, 632 Substantial performance (terms of a contract), 303 Substantial performance doctrine, 303, 305 Substantive due process, 160–161 Substantive law, 63 Substantive rule, 501 Sulfur dioxide emissions, 641–642 Sullivan, Scott, 173 Summary jury trials, 125 Summons, 69 Superfund, 646–647 Superfund Amendment and Reauthorization Act of 1986 (SARA), 646–647 Superior courts, state, 81 Supremacy Clause applied to state regulation, 136 explained, 135 Supreme Court See U.S Supreme Court Suretyship, 750 Surface Mining and Reclamation Act, 162 Surveillance cameras, employee privacy and, 543–545 Susette Kelo et al., Petitioners, v City of New London, Connecticut, et al., 397–398 Sustainability, 650, 651 Sustainable development, 650 Sutherland, Edwin, 179 Swartz, Mark, 173 Sweden, unions in, 574 Swiss banks, 703 Syndicate, 467 T Taft-Hartley Act of 1947, 556 Takeover bids, 688 Takeovers, statutes regulating, 691 Takings Clause, 161–162, 163 Tangible property, 402 Targeted Training Program (OSHA), 539 Task Force on Civil RICO, 200 Tax preparers, code of ethics for, 224 Taxation of the Internet, 148–149 limited liability companies (LLCs), 492 Taxing powers, of federal government, 146, 148 Taxman v Board of Education, 618, 619 Technology antispam legislation, 772 consumer protection and, 784 copyrights in digital age, 423–425 cybercrime, 198 electronic monitoring of employees, 541–545 electronic service of process, 70 federal court’s use of, 69 fighting cybercrime, 198 Internet as a public accommodation and, 618 online gambling ban, 267 in personam jurisdiction and, 77 trademarks and domain names, 414 Technology disputes, arbitration in, 122 Technology-driven standards, 633 Technology-forcing standards, 633 Telemarketing and Consumer Fraud and Abuse Prevention Act of 1994, 764, 771 Telemarketing legislation, 771–772 Telemarketing Sales Rule of 1995, 771 Telephone Consumer Protection Act of 1991, 771 Temporary employees, 435 Tenancy by the entirety, 390 Tenancy in common, 390 Tender offers, 688–689 Teresa Harris v Forklift Systems, Inc., 594 Termination of a legal offer, 282 Termination, of principal-agent relationship, 448–449 Tertiary-line injury, 732 Testimonials, deceptive advertising and, 768 Third-party beneficiary contracts, 296–297 Tinker v Des Moines Independent School District, 149 Title, 402 Title VII, Civil Rights Act of 1964, 589–607 enforcement of, 604–605, 606 proof in discrimination cases and, 590–597 protected classes under, 601–604 remedies, 605, 607 retaliation and, 597–598 statutory defenses under, 598–601 Titles (personal property), 402 Tort(s) defined, 321 against economic interests, 341–343 negligent, 343–347 against persons, 329–341 against property, 341 strict liability, 349 Tort law 30/07/14 5:07 PM www.freebookslides.com index damages and, 322–329 in environmental protection, 630–632 global dimensions of, 349 goals of, 321–322 Tort liability, 445–447 Tortfeasor, 322, 323 Toxic assets, 667 Toxic Substances Control Act of 1979 (TSCA), 648 Toxic substances, regulation of, 648–649 Toys “R” Us, Inc v Canarsie Kiddie Shop, Inc, 410–412 Trade corruption and, 243–246 international, 243–244, 250–251 Sherman Act and, 715–726 Trade dress, 413 Trade fixtures, 387 Trade Related Aspects of International Property Rights (TRIPS), 425–426, 429 Trade secrets, 416–417 Trademarks, 409–412 Transfer of deed/real property, 395 Transnational corporations, 476 code of conduct for, 234 Transportation v Moriel, 326 Treason, 174–175 Treaties, for environmental protection, 652–653 Treaty making, 60 Treaty of Maastricht, 263–264, 265 Trespass to personalty, 341 Trespass to realty (trespass to real property), 341 Trial courts, 68 federal, 78 judge, 82 location, 76–79 state, 81 Trial stage in civil litigation, 91–96 TRIPS (Trade Related Aspects of International Property Rights), 425–426, 429 Troubled Asset Relief Program (TARP), 668 Truman, Harry S., 61 Trust Indenture Act of 1939, 660, 662 Trusts, 709 Truth-in-Lending Act of 1969 (TILA), 773–776 24-hour rule, 563 Two Pesos v Taco Cabana, 413 Tyco International, 173 Tying arrangements, 418, 419, 724–725, 733 Tylenol tampering, 231 Tyson Foods, 523 U UCC See Uniform Commercial Code (UCC) Ultramares Doctrine, 378 Z04_KUBA0156_07_GE_INDX.indd 843 Underwriters, 674 Undue influence, 290 Unemployment compensation, 526–527 Unenforceable contracts, 276 Unfair advertising, 769 Unfair competition, 342–343 Unfair labor practice charges, 560–561 Unfair labor practice strikes, 575 Unfair labor practices see also Collective bargaining case procedures, 560–562 by employees, 568–569 by employers, 563–568 good-faith bargaining and, 572 NLRB and, 558 in Taft-Hartley Act of 1947, 556 in Wagner Act of 1935, 555, 556 Unfair practices statutes, 786 Uniform Commercial Code (UCC), 275 on breach of warranties, 366 common law compared with, 298 Convention on the International Sale of Goods and, 316 on Internet/e-contracts, 285 on legal offer, 280 on liquidated damages, 310 on mirroring terms of an offer, 285 preexisting duty rule and, 286, 287 remedies for breach of contract under, 312–313 on sale of goods of $500 or more, 294 as source of contract law, 275, 276 substantial performance doctrine and, 305 on termination of a legal offer, 282 text, 798–812 on written contracts, 293, 295 Uniform Computer Information Transaction Act (UCITA), 315 Uniform Consumer Credit Code (UCCC), 785 Uniform Electronic Transcription Act (UETA), 315 Uniform Franchise Offering Circular (UFOC), 468 Uniform Guidelines on Employee Selection Procedures of 1978 (UGESP), 546, 598–599 Uniform Limited Liability Company Acts (ULLCA), 491 Uniform Partnership Act (UPA), 458 Uniform Securities Act, 701 Unilateral contracts, 276, 278 Unilateral mistake, 290 Union Carbide, Inc., 213, 227, 253–255 Union Carbide India Ltd., 213, 227, 231 Unions See Labor unions United Food and Commercial Workers International Union (UFCW), 562 United Haulers Association, Inc v Oneida-Herkimer Solid Waste Management Authority, 144, 146 United Kingdom warranties and guarantees in, 366 whistleblowers in, 204 United Nations Commission on International Trade Law, 316 843 United Nations Conference on Environment and Development (1992), 652 United Nations Conference on the Human Environment (1972), 652 United Nations Convention on the International Sale of Goods (CISG), 305, 316–317 United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 127–128, 268 United States Department of Agriculture v United Foods, Inc., 155 United States of America v Martha Stewart and Peter Bacanovic, 40–41, 42 United States Trustee, 753 United States v American Library Association, 150 United States v Booker, 188 United States v Doe, 164 United States v Fanfan, 188 United States v Gray, 191–192 United States v James O’Hagan, 698 United States v Kay, 244–245 United States v Lake, 140 United States v Lopez, 143 United States v Microsoft Corporation, 729–730 United States v Morrison, 144 United States v Park, 183–184 United States v Patane, 176 United States v Wallach, 44–45 United Steel Workers of America, 562 United Steelworkers v Weber, 619 University of California v Bakke, 620–621 University of Texas Southwestern Medical Center v Nassar, 597–598 Unjust law, 54 Unlawful strikes, 575 Unliquidated debt, 287 Unreasonable search and seizure, 155–156 U.S Bankruptcy Code, 752 see also Bankruptcy Chapter 7, 756–758 Chapter 11, 760–761 Chapter 12, 761–762 Chapter 13, 759 estate exemptions, 755–756 exemptions provided under, 755–756 goals, 752 provisions, 752 U.S Circuit Court of Appeals, 96 U.S Code Congressional News and Administrative Reports, 59 U.S Department of Agriculture, 765 U.S Department of Labor, 765 U.S House of Representatives, 58 U.S legal frameworks in, 68–100 U.S Patent Office, 410, 419 U.S Postal Service, 765 U.S Soil Conservation Service (SCS), 653 30/07/14 5:07 PM www.freebookslides.com 844 index U.S Supreme Court appeal to, 97–98 binding arbitration clauses, 119 functions of, 80 judicial review, 59–60, 83–84 U.S v Tappen, 195–196 U.S v Warshak, 160 USA PATRIOT Act, 195 Usurious statutes, 291 Utilitarian school of thought, 217–218 Utility, principle of, 218 V Vacation time, 547 Valid contracts, 276, 279 Vance v Ball State University, 597 Variance, 400 Vedas, the, 248 Veggie libel, 342 Venkateswarlu Thota, and North Texas Cardiology Center, v Margaret YOUNG, 347–348 Venue, 76–78 Vertical mergers, 735–736 Vertical price-fixing, 720–721 Vertical restraints of trade, 720–721, 722–723 Vertical territorial restraints, 710, 722–723 Veterans’ Court of Appeals, 79 Victor Moseley and Kathy Moseley et al., dba Victor’s Little Secret v V Secret Catalogue, Inc et al., 415–416 Violence Against Women Act, 141 Virus (computer), 196 Void contracts, 276, 279 Voidable contracts, 276, 279 Voir dire, 91–92, 94 Voluntary alternative dispute resolution, 126–127 Voluntary bankruptcy petition, 753 Voluntary compliance, 508 Voluntary transfer of personal property, 402–403 Voluntary transfer of real property, 392 Vonage Holdings Corp v Minnesota Public Utilities Commission, 515 W Wage and Hour Division (WHD), 524 Wage laws, 522–525 Wagering agreements, 291–292 Wagner Act, 555–556 Waiting period, in securities registration process, 674 Wal-Mart, 523 Warn, negligent failure to, 343–344, 357–358, 361 Warning defects, 375, 376 Warrant, arrest, 175 Warranties breach of, 365–369 consumer law, 770 Z04_KUBA0156_07_GE_INDX.indd 844 express, 365 full, 770 implied, 365 limited, 770–7354 in the United Kingdom, 366 Warrantless searches, 155–159 Warrants, search, 156–160 Warranty defined, 365 Waste disposal, improper, 644–646 Water Quality Act, 637 Water quality regulation, 637–638 Water rights, 387 Watkins, Sherron, 202 Webb-Pomerene Export Act, 741 Welge v Planters Lifesavers Co., 371–373 Well-known seasoned issuer of securities, 674 Wharf (Holdings) Limited v United International Holdings, Inc., 699 Wheeler-Lea Act, 765 Whistleblower Protection Act (WPA), 204–205 Whistleblowing Sarbanes-Oxley Act and, 202, 203 in the United Kingdom, 204 Whistleblower Protection Act (WPA), 204–205 White-collar crime bribery, 189–190 computer crime, 194–196 corporate liability, arguments in favor of, 181–182 corporate liability, arguments in opposition to, 182 criminal fraud, 191–193 criminal procedure, 175–179, 180 defined, 179 embezzlement, 194 factors encouraging the commission of, 186–187 federal laws used to fight, 199–205 global dimensions of, 205–206 larceny, 193–194 liability of corporate executives, 182–185 liability of lower and mid-level employees, 185–186 overview, 171–172, 174 prevention of, 197–199 prison camps, 185 recent major cases, 172–173 sentencing of criminals for, 187–189 state laws used in fight against, 205 strict liability offense and, 180–181 violations of federal regulations, 190–191 White-Collar Crime Penalty Act (2002), 191 Whitney Benefits, Inc v United States, 162 Wickard v Filburn, 140, 141, 142 William Jefferson Clinton v Paula Corbin Jones, 137–138 Williams Act, 686–687 Williamson Oil Co v Philip Morris, USA, 717–718 Wilson, Woodrow, 731 Winding-up partnership, 464 Winfrey, Oprah, 332, 342 Winterbottom v Wright, 357 Wire fraud, 671 Wool Products Labeling Act, 764 Work, discrimination at, 583 Age Discrimination in Employment Act of 1967 (ADEA), 608–613 Americans with Disabilities Act of 1991, 613–618, 620–622 Civil Rights Act of 1871 and, 586–587 Civil Rights Act of 1886 and, 586–587 constitutional provisions and, 586 employment-at-will doctrine and, 584–585 Equal Pay Act of 1963 and, 587–589 federal statutes prohibiting, 586 global dimensions of, 622–623 Lilly Ledbetter Fair Pay Act (2009), 607 major reverse discrimination cases, 619–620 Rehabilitation Act of 1973, 613 Worker’s compensation laws, 528–530 Work-product doctrine, 82 World Bank’s International Center for the Settlement of Investment Disputes (ICSID), 268 World Trade Organization (WTO), 51, 249 impact of, 261–262 members and purpose, 260 on online gambling ban, 267 purpose and terms, 261 WorldCom, 173 World-Wide Volkswagen Corp v Woodson, District Judge of Cook County, 70–72 Worms (computer), 196 Wozniak, Steve, 221 WPA (Whistleblower Protection Act), 204–205 Wright v Universal Maritime Service, 118 Writ of certiorari, 97–98 Writ of execution, 750 Y Yarborough v Alvarado, 176 Young v Becker & Poliakoff, 325–326 Z Zomba Enterprises, Inc.; Zomba Songs, Inc Plaintiffs-Appellees v Panorama Records, Inc., Defendant-Appellant, 420–422 Zoning, 399–400 Zoning board, 400 30/07/14 5:07 PM www.freebookslides.com Z04_KUBA0156_07_GE_INDX.indd 845 30/07/14 5:07 PM www.freebookslides.com Z04_KUBA0156_07_GE_INDX.indd 846 30/07/14 5:07 PM www.freebookslides.com Z04_KUBA0156_07_GE_INDX.indd 847 30/07/14 5:07 PM www.freebookslides.com Z04_KUBA0156_07_GE_INDX.indd 848 30/07/14 5:07 PM ... How appropriate are the legal analogies? Step 7: How Appropriate Are the Legal Analogies? A major difference between legal reasoning and other forms of analysis is the heavy reliance on analogies... valuable for legal reasoning Consistently applying this critical thinking approach will enable you to understand the reasoning in legal cases and increase your awareness of alternative approaches... task is to be aware that there are alternative forms of? ?each ethical norm Then a natural next step is to search for the form used by the legal reasoning so you can understand and later evaluate