Paul Barton owned a small property-management company, doing business as Brighton Homes. In October, Barton went on a spending spree.

Comprehensive Edition Text & Cases

Roger LeRoy Miller Institute for University Studies

Arlington, Texas

Australia • Brazil • Mexico • Singapore • United Kingdom • United States

Business Law

Today

12th Edition

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Business Law Today, Comprehensive Edition Text & Cases 12th Edition Roger LeRoy Miller

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Printed in the United States of America Print Number: 01 Print Year: 2018

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Unit 1 The Legal Environment of Business 1 1 Law and Legal Reasoning 2 2 Constitutional Law 31 3 Ethics in Business 57 4 Courts and Alternative Dispute Resolution 86 5 Tort Law 123 6 Product Liability 151 7 Intellectual Property Rights 172 8 Internet Law, Social Media, and Privacy 200 9 Criminal Law and Cyber Crime 224

Unit 2 Contracts and E-Contracts 257 10 Nature and Classification 258 11 Agreement 277 12 Consideration 302 13 Capacity and Legality 316 14 Voluntary Consent 335 15 The Statute of Frauds—Writing Requirement 350 16 Performance and Discharge 366 17 Breach and Remedies 382 18 Third Party Rights 402

Unit 3 Commercial Transactions 419 19 The Formation of Sales and Lease Contracts 420 20 Title and Risk of Loss 448 21 Performance and Breach of Sales and Lease Contracts 464 22 Negotiable Instruments 496 23 International and Space Law 532 24 Banking in the Digital Age 554 25 Security Interests and Creditors’ Rights 577 26 Bankruptcy 607

Unit 4 Agency and Employment Law 637 27 Agency Relationships in Business 638 28 Employment, Immigration, and Labor Law 666 29 Employment Discrimination 694

Unit 5 Business Organizations 725 30 Sole Proprietorships and Franchises 726 31 All Forms of Partnership 743 32 Limited Liability Companies and Special Business Forms 767 33 Corporate Formation and Financing 785 34 Corporate Directors, Officers, and Shareholders 807 35 Corporate Mergers, Takeovers, and Termination 826 36 Investor Protection, Insider Trading, and Corporate

Governance 841

Unit 6 Government Regulation 871 37 Administrative Law 872 38 Antitrust Law and Promoting Competition 893 39 Consumer and Environmental Law 918 40 Liability of Accountants and Other Professionals 948

Unit 7 Property and Its Protection 971 41 Personal Property and Bailments 972 42 Real Property and Landlord-Tenant Law 994 43 Insurance, Wills, and Trusts 1017

APPENDICES A How to Brief Cases and Analyze Case Problems A–1 B The Constitution of the United States A–3 C The Uniform Commercial Code A–3 D Answers to the Issue Spotters A–4 E Sample Answers for Business Case Problems with Sample

Answer A–13

Glossary G–1 Table of Cases TC–1

Index I–1

Contents in Brief

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Contents

Unit 1 The Legal Environment of Business 1

Chapter 1

Law and Legal Reasoning 2 Business Activities and the Legal Environment 3

Sources of American Law 4

The Common Law 7 ■ Landmark in the Law: Equitable Maxims 12

Classifications of Law 13 ■ Beyond Our Borders: National Law Systems 14

Appendix to Chapter 1: Finding and Analyzing the Law 19 ■ Business Law Analysis: Case Briefing and IRAC Legal Reasoning 30

Chapter 2

Constitutional Law 31 The Constitutional Powers of Government 32

■ Managerial Strategy: Marriage Equality and the Constitution 33

■ Landmark in the Law: Gibbons v. Ogden (1824) 35

Classic Case 2.1: Heart of Atlanta Motel v. United States (1964) 36

Business and the Bill of Rights 38 ■ Beyond Our Borders: The Impact of Foreign Law

on the United States Supreme Court 40

■ Adapting the Law to the Online Environment: Does Everyone Have a Constitutional Right to Use Social Media? 41

Case 2.2: Animal Legal Defense Fund v. Wasden (2018) 42

■ Ethical Issue: Can a high school suspend teenagers from extracurricular activities because they posted suggestive photos of themselves online at social networking sites? 43

Spotlight on Beer Labels: Case 2.3: Bad Frog Brewery, Inc. v. New York State Liquor Authority (1998) 45

■ Business Law Analysis: Determining When Public Religious Displays Violate the Establishment Clause 48

Due Process and Equal Protection 49

Privacy Rights 51

Chapter 3

Ethics in Business 57 Ethics and the Role of Business 58

■ Business Web Log: Bogus Bank and Credit Card Accounts at Wells Fargo Bank 59

■ Adapting the Law to the Online Environment: Should Employees Have a “Right of Disconnecting”? 62

Case 3.1: Al-Dabagh v. Case Western Reserve University (2015) 63

Ethical Principles and Philosophies 65

Sources of Ethical Issues in Business Decisions 69

Case 3.2: Watson Laboratories, Inc. v. State of Mississippi (2018) 70

Making Ethical Business Decisions 73 ■ Business Law Analysis: Applying the IDDR Framework 77

Business Ethics on a Global Level 78

Appendix to Chapter 3: Costco Code of Ethics 85

Chapter 4

Courts and Alternative Dispute Resolution 86

■ Business Web Log: Samsung and Forced Arbitration 87

The Judiciary’s Role in American Government 87 ■ Landmark in the Law: Marbury v. Madison (1803) 88

Basic Judicial Requirements 89

Spotlight on Gucci: Case 4.1: Gucci America, Inc. v. Wang Huoqing (2011) 94

The State and Federal Court Systems 96 ■ Beyond Our Borders: Islamic Law Courts Abroad and at Home 97

Case 4.2: Johnson v. Oxy USA, Inc. (2016) 99

■ Managerial Strategy: Should You Consent to Have Your Business Case Decided by a U.S. Magistrate Judge? 101

■ Ethical Issue: Should Supreme Court justices follow the Code of Conduct for United States Judges? 103

Following a State Court Case 103

iv

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■ Adapting the Law to the Online Environment: Using Social Media for Service of Process 105

Case 4.3: Klipsch Group, Inc. v. ePRO E-Commerce Limited (2018) 109

Courts Online 113

Alternative Dispute Resolution 113

Chapter 5

Tort Law 123 The Basis of Tort Law 123

Intentional Torts against Persons 125 ■ Business Law Analysis: Analyzing Intentional Infliction

of Emotional Distress Claims 127

Case 5.1: Blake v. Giustibelli (2016) 129

■ Ethical Issue: When does an online criticism of a physician become defamation? 131

■ Adapting the Law to the Online Environment: Revenge Porn and Invasion of Privacy 132

Intentional Torts against Property 136

Negligence 138

Case 5.2: Bogenberger v. Pi Kappa Alpha Corporation, Inc. (2018) 139

■ Landmark in the Law: Palsgraf v. Long Island Railroad Co. (1928) 142

Spotlight on the Seattle Mariners: Case 5.3: Taylor v. Baseball Club of Seattle, L.P. (2006) 144

Strict Liability 145

Chapter 6

Product Liability 151 Product Liability Claims 151

■ Business Web Log: Johnson & Johnson Faces Continuing Lawsuits over Its Talcum Powder 152

■ Landmark in the Law: MacPherson v. Buick Motor Co. (1916) 153

Case 6.1: Schwarck v. Arctic Cat, Inc. (2016) 154

Strict Product Liability 155 ■ Linking Business Law to Corporate Management:

Quality Control 157

■ Business Law Analysis: How State Legislation Can Limit Recovery for Design Defects 159

■ Ethical Issue: Can a Taser be considered unreasonably dangerous as designed? 159

Case 6.2: Stange v. Janssen Pharmaceuticals, Inc. (2018) 161

■ Managerial Strategy: When Is a Warning Legally Bulletproof? 162

Defenses to Product Liability 164

Spotlight on Injuries from Vaccinations: Case 6.3: Bruesewitz v. Wyeth, LLC (2011) 165

Chapter 7

Intellectual Property Rights 172 Trademarks 173

■ Linking Business Law to Marketing: Trademarks and Service Marks 173

Classic Case 7.1: Coca-Cola Co. v. Koke Co. of America (1920) 174

■ Ethical Issue: Should the law allow offensive trademark names? 176

■ Beyond Our Borders: ALEVE versus FLANAx— Same Pain Killer, But in Different Countries 177

Case 7.2: LFP IP, LLC v. Hustler Cincinnati, Inc. (2016) 178

■ Business Web Log: Amazon Faces Fake Products 182

Patents 183

Copyrights 186 ■ Business Law Analysis: Licensing Is a Defense to

Copyright Infringement 189

■ Adapting the Law to the Online Environment: Beyoncé, Sampling, and a $20 Million Lawsuit 190

Case 7.3: Oracle USA, Inc. v. Rimini Street, Inc. (2018) 192

Trade Secrets 193

International Protections 193

Chapter 8

Internet Law, Social Media, and Privacy 200 Internet Law 201

Spotlight on Internet Porn: Case 8.1: Hasbro, Inc. v. Internet Entertainment Group, Ltd. (1996) 205

Copyrights in Digital Information 206 ■ Landmark In the Law: The Digital Millennium Copyright Act 207

■ Adapting the Law to the Online Environment: Riot Games, Inc., Protects Its Online Video Game Copyrights 208

Case 8.2: BMG Rights Management (US), LLC v. Cox Communications, Inc. (2018) 209

Social Media 210

Online Defamation 214 ■ Business Law Analysis: Immunity of ISPs under

the Communications Decency Act 215

Case 8.3: David v. Textor (2016) 216

Privacy 217 ■ Beyond Our Borders: “The Right to Be Forgotten”

in the European Union 218

■ Ethical Issue: Should smart-TV manufacturers collect consumer-use data? 219

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Chapter 9

Criminal Law and Cyber Crime 224 Civil Law and Criminal Law 224

Criminal Liability 227 ■ Adapting the Law to the Online Environment:

Using Twitter to Cause Seizures—A Crime? 227

Case 9.1: United States v. Crabtree (2018) 228

■ Managerial Strategy: The Criminalization of American Business 230

Types of Crimes 231

■ Business Law Analysis: Proof of Credit-Card Theft 233

Spotlight on White-Collar Crime: Case 9.2: People v. Sisuphan (2010) 235

Defenses to Criminal Liability 239

Constitutional Safeguards and Criminal Procedures 241 ■ Ethical Issue: Should police be able to force you to unlock

your mobile phone? 243

■ Landmark in the Law: Miranda v. Arizona (1966) 244

Cyber Crime 247

Case 9.3: United States v. Warner (2016) 248

Unit One: Task-Based Simulation 256

Unit 2 Contracts and E-Contracts 257 Chapter 10

Nature and Classification 258 An Overview of Contract Law 258

Elements of a Contract 260

Case 10.1: Weston v. Cornell University (2016) 261

Types of Contracts 262 ■ Ethical Issue: Does a “You break it, you buy it” sign

create a unilateral contract? 263

Case 10.2: Boswell v. Panera Bread Co. (2018) 264

Quasi Contracts 267 ■ Business Law Analysis: Deciding If a Court Would Impose

a Quasi Contract 268

Interpretation of Contracts 269

Spotlight on Columbia Pictures: Case 10.3: Wagner v. Columbia Pictures Industries, Inc. (2007) 270

Chapter 11

Agreement 277 Offer 277

Classic Case 11.1: Lucy v. Zehmer (1954) 278

Spotlight on Amazon.com: Case 11.2: Basis Technology Corp. v. Amazon.com, Inc. (2008) 281

■ Business Law Analysis: Offers of a Reward 283

Acceptance 285 ■ Adapting the Law to the Online Environment: Can Your

E-Mails or Instant Messages Create a Valid Contract? 286

E-Contracts 289 ■ Linking Business Law to Marketing: Customer

Relationship Management 290

Case 11.3: Bailey v. Kentucky Lottery Corp. (2018) 293

■ Ethical Issue: How enforceable are click-on agreements to donate funds to a charity? 294

The Uniform Electronic Transactions Act 296

Chapter 12

Consideration 302 Elements of Consideration 302

■ Landmark in the Law: Hamer v. Sidway (1891) 303

Case 12.1: USS–POSCO Industries v. Case (2016) 304

Agreements That Lack Consideration 306

Case 12.2: Baugh v. Columbia Heart Clinic, P.A. (2013) 307

Settlement of Claims 309

Spotlight on Nike: Case 12.3: Already, LLC v. Nike, Inc. (2013) 310

Promissory Estoppel 311

Chapter 13

Capacity and Legality 316 Contractual Capacity 316

Spotlight on KFC: Case 13.1: PAK Foods Houston, LLC v. Garcia (2014) 317

Legality 321 ■ Business Law Analysis: Determining If a Contract with

an Unlicensed Party Is Enforceable 322

Case 13.2: Woischke v. Stursberg & Fine, Inc. (2018) 322

■ Ethical Issue: Are expansive noncompete agreements reducing worker mobility? 324

■ Managerial Strategy: Creating Liability Waivers that are not Unconscionable 327

Case 13.3: Holmes v. Multimedia KSDK, Inc. (2013) 328

The Effect of Illegality 329

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Chapter 14

Voluntary Consent 335 Mistakes 335

■ Ethical Issue: Should a surviving member of Lynyrd Skynyrd abide by a thirty-year-old consent decree? 337

Fraudulent Misrepresentation 338

Case 14.1: McCullough v. Allstate Property and Casualty Insurance Co. (2018) 339

Case 14.2: Cronkelton v. Guaranteed Construction Services, LLC (2013) 342

■ Adapting the Law to the Online Environment: “Catfishing”: Is That Online “Friend” for Real? 343

Case 14.3: Fazio v. Cypress/GR Houston I, LP (2013) 344

Undue Influence and Duress 346

Chapter 15

The Statute of Frauds— Writing Requirement 350 The Writing Requirement 350

Case 15.1: Sloop v. Kiker (2016) 351

Exceptions to the Statute of Frauds 355 ■ Beyond Our Borders: The Statute of Frauds and International

Sales Contracts 355

Sufficiency of the Writing or Electronic Record 357

Case 15.2: Moore v. Bearkat Energy Partners, LLC (2018) 358

The Parol Evidence Rule 359

Case 15.3: Frewil, LLC v. Price (2015) 361

Chapter 16

Performance and Discharge 366 Conditions of Performance 366

Discharge by Performance 368 ■ Business Law Analysis: Determining When a Breach Is Material 370

Case 16.1: Kohel v. Bergen Auto Enterprises, LLC (2013) 371

■ Ethical Issue: Is it a material breach of contract for a hospital to accept a donation and then refuse to honor part of its commitment? 372

Discharge by Agreement 373

Case 16.2: DWB, LLC v. D&T Pure Trust (2018) 374

Discharge by Operation of Law 375

Case 16.3: Hampton Road Bankshares, Inc. v. Harvard (2016) 376

■ Beyond Our Borders: Impossibility or Impracticability of Performance in Germany 378

Chapter 17

Breach and Remedies 382 Damages 383

Case 17.1: Baird v. Owens Community College (2016) 384

■ Landmark in the Law: Hadley v. Baxendale (1854) 387

Spotlight on Liquidated Damages: Case 17.2: Kent State University v. Ford (2015) 389

■ Business Law Analysis: Enforceability of Liquidated Damages Provisions 390

Equitable Remedies 391

Case 17.3: Cipriano Square Plaza Corp. v. Munawar (2018) 391

Recovery Based on Quasi Contract 395

Contract Provisions Limiting Remedies 396 ■ Ethical Issue: Can contracts for mixed martial arts

fighters limit a fighter’s right to stop fighting? 396

Chapter 18

Third Party Rights 402 Assignments 402

Case 18.1: Bass-Fineberg Leasing, Inc. v. Modern Auto Sales, Inc. (2015) 405

Delegations 407

Case 18.2: Mirandette v. Nelnet, Inc. (2018) 409

Third Party Beneficiaries 410

Case 18.3: Bozzio v. EMI Group, Ltd. (2016) 410

Unit Two: Task-Based Simulation 418

Unit 3 Commercial Transactions 419

Chapter 19

The Formation of Sales and Lease Contracts 420

■ Landmark in the Law: The Uniform Commercial Code 421

The Scope of Articles 2 and 2A 421

■ Adapting the Law to the Online Environment: Taxing Web Purchases 423

The Formation of Sales and Lease Contracts 425

Case 19.1: Toll Processing Services, LLC v. Kastalon, Inc. (2018) 426

viiContents

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Case 19.2: C. Mahendra (N.Y.), LLC v. National Gold & Diamond Center, Inc. (2015) 430

■ Business Law Analysis: Additional Terms between Merchants 432

Classic Case 19.3: Jones v. Star Credit Corp. (1969) 437

Contracts for the International Sale of Goods 437

Appendix to Chapter 19: An Example of a Contract for the International Sale of Coffee 444

Chapter 20

Title and Risk of Loss 448 Identification 449

Case 20.1: BMW Group, LLC v. Castle Oil Corp. (2016) 450

Passage of Title 451 ■ Managerial Strategy: Commercial Use of Drones 451

Case 20.2: Louisiana Department of Revenue v. Apeck Construction, LLC (2018) 452

Spotlight on Andy Warhol: Case 20.3: Lindholm v. Brant (2007) 456

Risk of Loss 457

Insurable Interest 460

Chapter 21

Performance and Breach of Sales and Lease Contracts 464 Obligations of the Seller or Lessor 465

Case 21.1: All the Way Towing, LLC v. Bucks County International, Inc. (2018) 467

Obligations of the Buyer or Lessee 470

Remedies of the Seller or Lessor 472

Remedies of the Buyer or Lessee 475 ■ Beyond Our Borders: The CISG’s Approach to

Revocation of Acceptance 479

Spotlight on Baseball Cards: Case 21.2: Fitl v. Strek (2005) 480

Warranties 482

Classic Case 21.3: Webster v. Blue Ship Tea Room, Inc. (1964) 485

■ Business Law Analysis: Implied Warranties 487

Chapter 22

Negotiable Instruments 496 Formation of Negotiable Instruments 497

■ Adapting the Law to the Online Environment: Pay with Your Smartphone 499

Case 22.1: OneWest Bank, FSB v. Nunez (2016) 503

■ Business Law Analysis: Deciding If an Instrument Is Negotiable 505

Case 22.2: Charles R. Tips Family Trust v. PB Commercial, LLC (2015) 508

Transfer of Instruments 509 ■ Beyond Our Borders: Severe Restrictions on Check

Indorsements in France 510

Holder in Due Course (HDC) 513

Case 22.3: Jarrell v. Conerly (2018) 516

Signature and Warranty Liability 518

Defenses, Limitations, and Discharge 523 ■ Landmark in the Law: Federal Trade Commission Rule 433 525

Chapter 23

International and Space Law 532 International Law 532

■ Beyond Our Borders: Border Searches of Your Electronic Devices 533

Case 23.1: Rubin v. Islamic Republic of Iran (2018) 537

■ Business Law Analysis: Sovereign Immunity Claims 539

Doing Business Internationally 539 ■ Ethical Issue: Is it ethical (and legal) to brew “imported”

beer brands domestically? 539

Regulation of Specific Business Activities 542

Case 23.2: Changzhou Trina Solar Energy Co., Ltd. v. International Trade Commission (2018) 543

U.S. Laws in a Global Context 545

Spotlight on International Torts: Case 23.3: Daimler AG v. Bauman (2014) 546

Space Law 548

Chapter 24

Banking in the Digital Age 554 Checks and the Bank-Customer Relationship 555

The Bank’s Duty to Honor Checks 558

Case 24.1: Legg v. West Bank (2016) 558

Case 24.2: Horton v. JPMorgan Chase Bank, N.A. (2018) 561

The Bank’s Duty to Accept Deposits 564

Case 24.3: Shahin v. Delaware Federal Credit Union (2015) 565

■ Landmark in the Law: Check Clearing for the 21st Century Act (Check 21) 568

Electronic Fund Transfers 569

viii Contents

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Unit 4 Agency and Employment Law 637

Chapter 27

Agency Relationships in Business 638 Agency Law 639

■ Ethical Issue: Is it fair to classify Uber and Lyft drivers as independent contractors? 640

Formation of an Agency 642

Case 27.1: Reidel v. Akron General Health System (2018) 643

Duties of Agents and Principals 644

Spotlight on Taser International: Case 27.2: Taser International, Inc. v. Ward (2010) 646

Agent’s Authority 649

Liability in Agency Relationships 651 ■ Business Law Analysis: Liability of Disclosed Principals 652

■ Landmark in the Law: The Doctrine of Respondeat Superior 655

■ Beyond Our Borders: Islamic Law and Respondeat Superior 657

Case 27.3: M.J. v. Wisan (2016) 657

Termination of an Agency 659

Chapter 28

Employment, Immigration, and Labor Law 666 Employment at Will 667

Case 28.1: Caterpillar, Inc. v. Sudlow (2016) 668

Wages, Hours, and Leave 669 ■ Ethical Issue: Are employees entitled to receive wages

for all the time they spend at work, including times when they are taking a personal break? 670

■ Beyond Our Borders: Brazil Requires Employers to Pay Overtime for Use of Smartphones after Work Hours 671

Case 28.2: Encino Motorcars, LLC v. Navarro (2018) 671

Health, Safety, Income Security, and Privacy 674 ■ Business Law Analysis: Workers’ Compensation Claims 675

■ Adapting the Law to the Online Environment: Social Media in the Workplace Come of Age 679

Immigration Law 680

Online Banking and E-Money 571 ■ Adapting the Law to the Online Environment:

Electronic Payment Systems and the Use of Checks 571

Chapter 25

Security Interests and Creditors’ Rights 577 Creating and Perfecting a Security Interest 577

Spotlight on Wedding Rings: Case 25.1: Royal Jewelers, Inc. v. Light (2015) 579

■ Adapting the Law to the Online Environment: Secured Transactions Online 581

■ Business Law Analysis: Perfecting a Security Interest 583

Scope of a Security Interest 586

Case 25.2: In re T usa–Expo Holdings, Inc. (2016) 587

Priorities, Rights, and Duties 590

Default 592

Case 25.3: SunTrust Bank v. Monroe (2018) 594

■ Ethical Issue: How long should a secured party have to seek a deficiency judgment? 596

Other Laws Assisting Creditors 596

Chapter 26

Bankruptcy 607 The Bankruptcy Code 607

■ Business Web Log: Online Retail Competition Causes Yet Another Brick-and-Mortar Retailer to File for Bankruptcy 608

■ Landmark in the Law: The Bankruptcy Abuse Prevention and Consumer Protection Act 609

Chapter 7—Liquidation 610 ■ Business Law Analysis: Violations of the Automatic Stay 614

Case 26.1: In re Anderson (2016) 619

■ Ethical Issue: Should there be more relief for student loan defaults? 621

Case 26.2: In re Cummings (2015) 622

Chapter 11—Reorganization 624 ■ Linking Business Law to Corporate Management:

What Can You Do to Prepare for a Chapter 11 Reorganization? 625

Bankruptcy Relief under Chapter 13 and Chapter 12 627

Case 26.3: In re Chamberlain (2018) 629

Unit Three: Task-Based Simulation 635

ixContents

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Labor Law 683

■ Managerial Strategy: Union Organizing Using a Company’s E-Mail System 686

Case 28.3: Contemporary Cars, Inc. v. National Labor Relations Board (2016) 687

Chapter 29

Employment Discrimination 694 Title VII of the Civil Rights Act 695

■ Linking Business Law to Corporate Management: Human Resource Management 696

■ Adapting the Law to the Online Environment: Hiring Discrimination Based on Social Media Posts 700

Case 29.1: Bauer v. Lynch (2016) 701

Case 29.2: Young v. United Parcel Service, Inc. (2015) 703

■ Ethical Issue: Should corporations be forced to publicize the ratio of CEO-to-worker pay? 704

■ Business Law Analysis: Retaliation Claims 707

Case 29.3: Franchina v. City of Providence (2018) 708

■ Beyond Our Borders: Sexual Harassment in Other Nations 709

Discrimination Based on Age, Disability, or Military Status 710

Defenses to Employment Discrimination 716

Affirmative Action 717

Unit Four: Task-Based Simulation 723

Unit 5 Business Organizations 725

Chapter 30

Sole Proprietorships and Franchises 726 Sole Proprietorships 727

Case 30.1: A. Gadley Enterprises, Inc. v. Department of Labor and Industry Office of Unemployment Compensation Tax Services (2016) 727

■ Ethical Issue: Can the religious beliefs of a small business owner justify the business refusing to provide services to members of the LGBT community? 728

■ Adapting the Law to the Online Environment: A Sole Proprietorship, Facebook Poker, and Bankruptcy 730

Franchises 730 ■ Beyond Our Borders: Franchising in Foreign Nations 731

The Franchise Contract 734

Franchise Termination 735

Case 30.2: S&P Brake Supply, Inc. v. Daimler Trucks North America, LLC (2018) 736

Spotlight on Holiday Inns: Case 30.3: Holiday Inn Franchising, Inc. v. Hotel Associates, Inc. (2011) 738

Chapter 31

All Forms of Partnership 743 Basic Partnership Concepts 744

Case 31.1: Harun v. Rashid (2018) 745

Formation and Operation 747 ■ Beyond Our Borders: Doing Business with

Foreign Partners 748

Classic Case 31.2: Meinhard v. Salmon (1928) 751

Dissociation and Termination 753

Limited Liability Partnerships 757

Limited Partnerships 758

Case 31.3: DeWine v. Valley View Enterprises, Inc. (2015) 759

■ Ethical Issue: Should an innocent general partner be jointly liable for fraud? 761

Chapter 32

Limited Liability Companies and Special Business Forms 767 The Limited Liability Company 767

■ Landmark in the Law: Limited Liability Company (LLC) Statutes 768

Case 32.1: Hodge v. Strong Built International, LLC (2015) 771

■ Beyond Our Borders: Limited Liability Companies in Other Nations 772

LLC Operation and Management 773 ■ Managerial Strategy: Can a Person Who Is Not a Member

of a Protected Class Sue for Discrimination? 774

Case 32.2: Schaefer v. Orth (2018) 775

Dissociation and Dissolution of an LLC 776

x Contents

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Chapter 37

Administrative Law 872 Practical Significance 872

■ Linking Business Law to Corporate Management: Dealing with Administrative Law 875

Agency Creation and Powers 875

Case 37.1: Simmons v. Smith (2018) 877

The Administrative Process 879 ■ Ethical Issue: Do administrative agencies exercise

too much authority? 880

Case 37.2: Craker v. Drug Enforcement Administration (2013) 884

Case 32.3: Reese v. Newman (2016) 777

■ Business Law Analysis: When Will a Court Order the Dissolution of an LLC? 778

Special Business Forms 779

Chapter 33

Corporate Formation and Financing 785 Nature and Classification 785

■ Adapting the Law to the Online Environment: Programs That Predict Employee Misconduct 787

Case 33.1: Drake Manufacturing Co. v. Polyflow, Inc. (2015) 788

Case 33.2: Pantano v. Newark Museum (201

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