Ethical Principles and Philosophies
ENGAGEMENT EXERCISE 2 1. In a word document, answer the following questions found in your book: 19-1, 19-5 and 19-6 and upload your responses in the dropbox on D2L by September 26, 2021. a. Graduate level writing is expected. Punctuation, grammar, spelling and complete sentences are a part of your grade. 2. POST to the Pandemic & Ethics discussion board your answer to the following: from an ethical perspective, should employers charge employees higher premiums for their health insurance if they are unvaccinated for Covid (why or why not), AND READ your peers’ posts. (D2L allows me to see what students have read on discussion boards.) a. Post your answer by September 26, 2021 at 5:00pm CST, BUT DON’T wait until the last minute so that you can post AND read. b. There are many different examples and discussions on the internet on this issue. For example: https://www.cnbc.com/2021/08/25/delta-air-lines-unvaccinatedemployees-will-face-200-fees-if-they-dont-get-covid-vaccine.html . c. As always, be respectful, thoughtful and kind. 3. Instructions for creating a post: Select Start a New Thread. Type something in the subject line, then add your response in the Post field. Click the Camera Icon to insert an image. Select Post when you want to share your response. 4. Instructions for replying to someone’s post: Select Reply to Thread. Type something in the subject line, then add your response in the Post field. Select Post when you want to share your reply. Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 T he l eg a l e n v i ron m e n t of b usi n e s s Te x t a nd C a se s Eleventh Edition Frank B. Cross Herbert D. Kelleher Centennial Professor in Business Law University of Texas at Austin Roger LeRoy Miller Institute for University Studies Arlington, Texas Australia • Brazil • Mexico • Singapore • United Kingdom • United States Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 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. 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The Legal Environment of Business Text and Cases, Eleventh Edition Frank B. Cross Roger LeRoy Miller © 2021, 2018 Cengage Learning, Inc. Senior Vice President, Higher Education Product Management: Erin Joyner herein may be reproduced or distributed in any form or by any means, Vice President, Product Management: Mike Schenk permission of the copyright owner. Unless otherwise noted, all content is © Cengage. ALL RIGHTS RESERVED. No part of this work covered by the copyright except as permitted by U.S. copyright law, without the prior written Senior Product Team Manager: Joe Sabatino For product information and technology assistance, contact us at Senior Product Managers: Vicky True-Baker, Michael Giffen Cengage Customer & Sales Support, 1-800-354-9706 or support.cengage.com. Senior Content Managers: Martha Conway, Julia Chase For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions. 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Find your local representative at: www.cengage.com. Cengage products are represented in Canada by Nelson Education, Ltd. To learn more about Cengage platforms and services, register or access your online learning solution, or purchase materials for your course, visit www.cengage.com. Design Elements: Linen texture: Lisa-Blue/iStockphoto; justice scales: imagedb.com/Shutterstock Printed in the United States of America Print Number: 01 Print Year: 2019 Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Brief Contents Unit One The Foundations 1 Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Law and Legal Reasoning 2 Business and the Constitution 26 Ethics in Business 44 Courts and Alternative Dispute Resolution Court Procedures 86 Unit Two The Public and International Environment 111 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Tort Law 112 Strict Liability and Product Liability 134 Intellectual Property Rights 150 Internet Law, Social Media, and Privacy 170 Criminal Law and Cyber Crime 187 International and Space Law 211 Unit Three The Commercial Environment 235 Chapter 12 Chapter 13 Chapter 14 Chapter 15 Formation of Traditional and E-Contracts 236 Contract Performance, Breach, and Remedies 265 Sales and Lease Contracts 287 Creditor-Debtor Relations and Bankruptcy 322 Unit Four The Business and Employment Environment 353 Chapter 16 Chapter 17 Chapter 18 Chapter 19 Chapter 20 Chapter 21 Chapter 22 Small Businesses and Franchises 354 Limited Liability Business Forms 375 Corporations 392 Agency Relationships 420 Employment Law 442 Employment Discrimination 457 Immigration and Labor Law 478 Unit Five The Regulatory Environment 499 Chapter 23 Chapter 24 Chapter 25 Chapter 26 Chapter 27 Chapter 28 Administrative Agencies 500 Consumer Protection 517 Environmental Law 534 Real Property and Land-Use Control 550 Antitrust Law 571 Investor Protection and Corporate Governance 65 590 iii Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. iv Brief Conten ts Appendices A B C How to Brief Cases and Analyze Case Problems A–1 Answers to the Issue Spotters A–4 Sample Answers for Business Case Problems with Sample Answer A–10 Glossary G–1 Table of Cases Tc–1 Index I–1 Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Contents Unit One Chapter 4 The Foundations Courts and Alternative Dispute Resolution 65 1 e Judiciary’s Role in American Government 65 Th Basic Judicial Requirements 66 Chapter 1 Law and Legal Reasoning 2 Business Activities and the Legal Environment 2 Sources of American Law 3 The Common Law Tradition 6 ■ Ethics Today: Stare Decisis versus Spider-Man 9 Case Analysis 4.1 Mala v. Crown Bay Marina, Inc. 68 Spotlight on Gucci Case 4.2 Gucci America, Inc. v. Wang Huoqing 70 The State and Federal Court Systems 73 Case 4.3 Johnson v. Oxy USA, Inc. 74 ■ Managerial Strategy: Should You Consent to Have Your Business Case Decided by a U.S. Magistrate Judge? 76 Schools of Legal Thought 11 Classifications of Law 12 How to Find Primary Sources of Law 13 How to Read and Understand Case Law 16 Alternative Dispute Resolution 79 International Dispute Resolution 82 Chapter 2 Chapter 5 Business and the Constitution 26 The Constitutional Powers of Government 26 Classic Case 2.1 Heart of Atlanta Motel v. United States 28 Business and the Bill of Rights 30 ■ Digital Update: Does Everyone Have a Constitutional Right to Use Social Media? 32 Case 2.2 Animal Legal Defense Fund v. Wasden 33 Spotlight on Beer Labels Case 2.3 Bad Frog Brewery, Inc. v. New York State Liquor Authority 35 Due Process and Equal Protection 39 Privacy Rights 40 Chapter 3 Ethics in Business 44 Court Procedures 86 Procedural Rules 86 Pretrial Procedures 88 ■ Digital Update: Using Social Media for Service of Process 90 Case Analysis 5.1 Espresso Disposition Corp. 1 v. Santana Sales & Marketing Group, Inc. 91 Case 5.2 Lewis v. Twenty-First Century Bean Processing 93 Case 5.3 Klipsch Group, Inc. v. ePRO E-Commerce Limited 96 The Trial 99 Posttrial Motions 101 The Appeal 102 Enforcing the Judgment 103 Unit One Task-Based Simulation 107 Unit One Application and Ethics: “Arbitration, No Class Actions” 108 Ethics and the Role of Business 44 ■ Digital Update: Should Employees Have a “Right of Disconnecting”? 47 Case 3.1 Al-Dabagh v. Case Western Reserve University 48 Ethical Principles and Philosophies 49 Sources of Ethical Issues in Business Decisions 52 Case 3.2 Watson Laboratories, Inc. v. State of Mississippi 53 Making Ethical Business Decisions 55 Business Ethics on a Global Level 58 ■ Ethics Today: Applying the IDDR Framework 59 Appendix to Chapter 3: Costco Code of Ethics 64 Unit Two The Public and International Environment 111 Chapter 6 Tort Law 112 The Basis of Tort Law 112 Intentional Torts against Persons 113 v Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. vi CONTEN TS Case Analysis 6.1 Blake v. Giustibelli 115 ■ Digital Update: Revenge Porn and Invasion of Privacy 119 Intentional Torts against Property 122 Unintentional Torts—Negligence 124 Case 6.2 Bogenberger v. Pi Kappa Alpha Corporation, Inc. 125 Defenses to Negligence 128 Spotlight on the Seattle Mariners Case 6.3 Taylor v. Baseball Club of Seattle, LP 129 Chapter 7 Strict Liability and Product Liability 134 Strict Liability 134 Product Liability 135 Criminal Law and Cyber Crime 187 Civil Law and Criminal Law 187 Criminal Liability 189 ■ Digital Update: Using Twitter to Cause Seizures— A Crime? 189 Case 10.1 United States v. Crabtree 190 ■ Managerial Strategy: The Criminalization of American Business 192 Types of Crimes 193 Spotlight on White-Collar Crime Case 10.2 People v. Sisuphan 195 Defenses to Criminal Liability 199 Criminal Procedures 201 Cyber Crime 204 Case Analysis 7.1 Schwarck v. Arctic Cat, Inc. 136 Strict Product Liability 137 Case 7.2 Stange v. Janssen Pharmaceuticals, Inc. 140 ■ Managerial Strategy: When Is a Warning Legally Bulletproof? 142 Case Analysis 10.3 United States v. Warner 205 Chapter 11 Defenses to Product Liability 143 Case 7.3 VeRost v. Mitsubishi Caterpillar Forklift America, Inc. 144 International and Space Law 211 International Law 211 Chapter 8 Case 11.1 Rubin v. Islamic Republic of Iran 215 Intellectual Property Rights 150 Doing Business Internationally 217 Trademarks and Related Property 150 Classic Case 8.1 The Coca-Cola Co. v. The Koke Co. of America 150 Case 8.2 Headspace International, LLC v. Podworks Corp. 152 ■ Global Insight: ALEVE versus FLANAX—Same Pain Killer, But in Different Countries 154 Patents 157 Copyrights 159 170 Internet Law 170 Spotlight on Internet Porn Case 9.1 Hasbro, Inc. v. Internet Entertainment Group, Ltd. 173 Copyrights in Digital Information 174 ■ Digital Update: Riot Games, Inc., Protects Its Online Video Game Copyrights 175 Case 9.2 BMG Rights Management (US), LLC v. Cox Communications, Inc. 176 Case Analysis 9.3 David v. Textor 182 Case 11.2 Changzhou Trina Solar Energy Co., Ltd. v. United States International Trade Commission 220 International Dispute Resolution 222 U.S. Laws in a Global Context 223 Unit Two Task-Based Simulation 230 Unit Two Application and Ethics: One of the Biggest Data Breaches Ever 231 Chapter 9 Social Media 178 Online Defamation 180 Other Actions Involving Online Posts 181 Regulation of Specific Business Activities 219 Space Law 225 Trade Secrets 164 International Protection for Intellectual Property 164 Internet Law, Social Media, and Privacy ■ Ethics Today: Is It Ethical (and Legal) to Brew “Imported” Beer Brands Domestically? 217 Spotlight on International Torts Case 11.3 Daimler AG v. Bauman 223 Case Analysis 8.3 Winstead v. Jackson 161 Privacy 183 Chapter 10 Unit Three The Commercial Environment 235 Chapter 12 Formation of Traditional and E-Contracts 236 An Overview of Contract Law 236 Agreement 240 Classic Case 12.1 Lucy v. Zehmer 240 Case Analysis 12.2 Hinkal v. Pardoe 245 E-Contracts 247 Consideration 250 Spotlight on Nike Case 12.3 Already, LLC v. Nike, Inc. 253 Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. C ONT E NT S Contractual Capacity 254 Legality 256 vii Liquidation Proceedings 330 Case 12.4 Kennedy v. Shave Barber Co. 257 Form—The Writing Requirement 259 ■ Managerial Strategy: Creating Liability Waivers That Are Not Unconscionable 260 Third Party Rights 261 Chapter 13 Contract Performance, Breach, and Remedies 265 Voluntary Consent 265 Case 13.1 McCullough v. Allstate Property and Casualty Insurance Co. 267 Case 15.2 In re Anderson 336 ■ Ethics Today: Should There Be More Relief for Student Loan Defaults? 339 Reorganizations 340 Bankruptcy Relief under Chapter 12 and Chapter 13 341 Case 15.3 In re Chamberlain 343 Unit Three Task-Based Simulation 349 Unit Three Application and Ethics: Nondisclosure Agreements 350 Unit Four The Business and Employment Environment 353 Performance and Discharge 270 Classic Case 13.2 Jacob & Youngs v. Kent 271 ■ Ethics Today: When Is Impossibility of Performance a Valid Defense? 276 Damages 278 Spotlight on Liquidated Damages Case 13.3 Kent State University v. Ford 280 Equitable Remedies for Contract Breach 281 Contract Provisions Limiting Remedies 283 Chapter 14 Sales and Lease Contracts 287 The Scope of Articles 2 (Sales) and 2A (Leases) 287 ■ Digital Update: Taxing Web Purchases 289 The Formation of Sales and Lease Contracts 290 Case 14.1 Toll Processing Services, LLC v. Kastalon, Inc. 291 Classic Case 14.2 Jones v. Star Credit Corp. 296 Title, Risk, and Insurable Interest 297 ■ Managerial Strategy: Commercial Use of Drones 299 Chapter 16 Small Businesses and Franchises 354 General Considerations for Small Businesses 354 Sole Proprietorships 355 Case Analysis 16.1 A. Gadley Enterprises, Inc. v. Department of Labor and Industry, Office of Unemployment Compensation Tax Services 356 ■ Digital Update: A Sole Proprietorship, Facebook Poker, and Bankruptcy 358 Partnerships 359 Case 16.2 Harun v. Rashid 359 Franchises 367 Case 16.3 S&P Brake Supply, Inc. v. Daimler Trucks North America, LLC 370 Chapter 17 Limited Liability Business Forms 375 erformance Obligations in Sales and Lease Contracts 302 P Remedies for Breach of Sales and Lease Contracts 306 The Limited Liability Company 375 Spotlight on Baseball Cards Case 14.3 Fitl v. Strek 309 LLC Management and Operation 379 Warranties 311 Contracts for the International Sale of Goods 313 Appendix to Chapter 14: An Example of a Contract for the International Sale of Coffee 318 Chapter 15 Creditor-Debtor Relations and Bankruptcy 322 Laws Assisting Creditors 322 Mortgages 326 Case 15.1 Banc of California, N.A. v. Madhok 328 Protection for Debtors 329 The Bankruptcy Code 329 Case 17.1 Hodge v. Strong Built International, LLC 377 ■ Managerial Strategy: Can a Person Who Is Not a Member of a Protected Class Sue for Discrimination? 380 Case 17.2 Schaefer v. Orth 381 Dissociation and Dissolution of an LLC 382 Case Analysis 17.3 Reese v. Newman 383 Limited Liability Partnerships 385 Limited Partnerships 386 Chapter 18 Corporations 392 Nature and Classification 392 ■ Digital Update: Programs That ..
