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Open Posted By: highheaven1 Date: 08/01/2021 High School Case Study Writing

  

Q. Week 1 Article News (20 points)

· Individual student specific submissions of articles relative to the assigned chapter reading for the week assigned. (Chapter 1,2,3 and 7)

· Proper application of the article chosen to the weekly chapter reading relative to one or all of the chapters assigned.

· Student support for the article and specific application to chapter reading citing the textbook sections relative to the article.

Reading

Chapter 1: Critical Thinking and Legal Reasoning

Chapter 2: Introduction to Law and the Legal Environment of Business

Chapter 3: The American Legal System

Chapter 7: Ethics, Social Responsibility, and the Business Manager

Smeltzer, L. R., & Jennings, M. M. (1998). Why an international code of business ethics would be good for business. Journal of Business Ethics, 17(1), 57–66. 

Q.2 Course Project (30 points)

You are responsible for picking a corporation and doing research on a published article referencing a legal, ethical, or political issue that the corporation has been alleged or found responsible for based on the article. You will need to upload your submissions, with reasoning to support how the article is relative to the chapters in your textbook.

Category: Accounting & Finance Subjects: Behavioral Finance Deadline: 24 Hours Budget: $80 - $120 Pages: 2-3 Pages (Short Assignment)

Attachment 1

NANCY K.

KUBASEK M. NEIL

BROWNE BARTLEY A.

BRENNAN

Boston Columbus Indianapolis New York San Francisco Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto

Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

The LEGAL ENVIRONMENT

of BUSINESS

EIGHTH EDITION

A CRITICAL THINKING APPROACH

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Vice President, Business Publishing: Donna Battista Editor-in-Chief: Stephanie Wall Senior Sponsoring Editor: Neeraj Bhalla Editorial Assistant: Eric Santucci Vice President, Product Marketing: Maggie Moylan Director of Marketing, Digital Services and Products: Jeanette Koskinas Executive Field Marketing Manager: Adam Goldstein Field Marketing Manager: Lenny Ann Raper Product Marketing Assistant: Jessica Quazza Team Lead, Program Management: Ashley Santora Team Lead, Project Management: Jeff Holcomb Project Manager: Ilene Kahn Operations Specialist: Carol Melville Creative Director: Blair Brown Art Director: Janet Slowik Vice President, Director of Digital Strategy and Assessment: Paul Gentile Manager of Learning Applications: Paul DeLuca Full-Service Project Management and Composition: Cenveo® Publisher Services Interior Designer: Cenveo Publisher Services Cover Designer: Cenveo Publisher Services Cover Photo: Maksym Yemelyanov/Fotolia Printer/Binder: RR Donnelley/Willard Cover Printer: Phoenix Color/Hagerstown

Copyright © 2017, 2015, 2012 by Pearson Education, Inc. or its affiliates. All Rights Reserved. Manufactured in the United States of America. This publication is protected by copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise. For information regarding permissions, request forms, and the appropriate contacts within the Pearson Education Global Rights and Permissions department, please visit www.pearsoned.com/permissions/.

Acknowledgments of third-party content appear on the appropriate page within the text.

PEARSON, ALWAYS LEARNING, are exclusive trademarks owned by Pearson Education, Inc. or its affiliates in the U.S. and/or other countries.

Unless otherwise indicated herein, any third-party trademarks, logos, or icons that may appear in this work are the property of their respective owners, and any references to third-party trademarks, logos, icons, or other trade dress are for demonstrative or descriptive purposes only. Such references are not intended to imply any sponsor- ship, endorsement, authorization, or promotion of Pearson’s products by the owners of such marks, or any rela- tionship between the owner and Pearson Education, Inc., or its affiliates, authors, licensees, or distributors.

Library of Congress Cataloging-in-Publication Data Kubasek, Nancy K., author. The legal environment of business : a critical thinking approach / Nancy K. Kubasek, Bartley A. Brennan, M. Neil Browne. — Eight edition.

pages cm ISBN 978-0-13-407403-0 (alk. paper)

1. Industrial laws and legislation—United States. 2. Trade regulation—United States. 3. Commercial law—United States. 4. Critical thinking. I. Brennan, Bartley A., author. II. Browne, M. Neil, author. III. Title. KF1600.K83 2015a 346.7307—dc23

2015036209

10 9 8 7 6 5 4 3 2 1 ISBN 10: 0-13-407403-3 ISBN 13: 978-0-13-407403-0

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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

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iv

Brief Contents

P A R T O N E

Introduction to the Law and the Legal Environment of Business 1

1 Critical Thinking and Legal Reasoning 2

2 Introduction to Law and the Legal Environment of Business 17

3 The American Legal System 35

4 Alternative Tools of Dispute Resolution 76

5 Constitutional Principles 105

6 White-Collar Crime and the Business Community 145

7 Ethics, Social Responsibility, and the Business Manager 188

8 The International Legal Environment of Business 213

P A R T T W O

Private Law and the Legal Environment of Business 249 9 The Law of Contracts and Sales—I 250

10 The Law of Contracts and Sales—II 279

11 The Law of Torts 299

12 Product and Service Liability Law 332

13 Law of Property: Real and Personal 360

14 Intellectual Property 385

15 Agency Law 408

16 Law and Business Associations—I 432

17 Law and Business Associations—II 453

P A R T T H R E E

Public Law and the Legal Environment of Business 481 18 The Law of Administrative Agencies 482

19 The Employment Relationship and Immigration Laws 503

20 Laws Governing Labor–Management Relations 538

21 Employment Discrimination 569

22 Environmental Law 617

23 Rules Governing the Issuance and Trading of Securities 647

24 Antitrust Laws 699

25 Laws of Debtor–Creditor Relations and Consumer Protection 741

APPENDIX A The Constitution of the United States 788

GLOSSARY 794

INDEX 808

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v

Contents

v

PREFACE xvii

ACKNOWLEDGMENTS xxi

ABOUT THE AUTHORS xxiii

P A R T O N E

Introduction to the Law and the Legal Environment of Business 1

1 Critical Thinking and Legal Reasoning 2 The Importance of Critical Thinking 2

A Critical Thinking Model 4

United States of America v. Martha Stewart and Peter Bacanovic 5

The Critical Thinking Steps 7 Facts 7 Issue 7 Reasons and Conclusion 7 Rules of Law 8 Ambiguity 8 Ethical Norms 9 Analogies 10 Missing Information 10

Using Critical Thinking to Make Legal Reasoning Come Alive 11

Legal Reasoning 11

Applying the Critical Thinking Approach 15

Assignment on the Internet 16

On the Internet 16

For Future Reading 16

2 Introduction to Law and the Legal Environment of Business 17 Definition of the Legal Environment of Business 18

Definition of Law and Jurisprudence 19 Natural Law School 20 Positivist School 21 Sociological School 21 American Realist School 22 Critical Legal Studies School 22 Feminist School 22

Law and Economics School 23

Sources of Law 23 The Legislature as a Source of Statutory Law 23 The Judicial Branch as a Source of Case Law 25 The Executive Branch as a Source of Law 27 Administrative Agencies as a Source of Law 27

Classifications of Law 27 Criminal Law and Civil Law 28 Public and Private Law 28 Substantive and Procedural Law 29 Cyberlaw 29

Global Dimensions of the Legal Environment of Business 30

Summary 30

Review Questions 30

Review Problems 31

Case Problems 31

Thinking Critically about Relevant Legal Issues 33

Assignment on the Internet 33

On the Internet 34

For Future Reading 34

3 The American Legal System 35 Jurisdiction 35

Original versus Appellate Jurisdiction 35 Jurisdiction over Persons and Property 36

World-Wide Volkswagen Corp. v. Woodson, District Judge of Cook County 37

Subject Matter Jurisdiction 40

Hertz Corporation v. Friend 41

Venue 44

The Structure of the Court System 46 The Federal Court System 46 State Court Systems 46

The Actors in the Legal System and Their Relationship to the Business Community 49

The Attorney 49 The Jury 52

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The Adversary Process 52 Criticisms of the Adversary System 53

Steps in Civil Litigation and the Role of Businesspersons 53

The Pretrial Stage 53 The Trial 59

J.E.B. v. Alabama, ex rel. T.B. 60 Appellate Procedure 64 Class Actions 66

Wal-Mart Stores Inc. v. Dukes 67

Global Dimensions of the American Legal System 69

Summary 71

Review Questions 71

Review Problems 71

Case Problems 72

Thinking Critically about Relevant Legal Issues 73

Assignment on the Internet 74

On the Internet 74

For Future Reading 75

4 Alternative Tools of Dispute Resolution 76 Negotiation and Settlement 78

Mediation 78 Selection of a Mediator 78 Common Uses of Mediation 79 Advantages of Mediation 79 Criticisms of Mediation 80

Arbitration 80

Hall Street Associates, L.L.C. v. Mattel, Inc. 82 Methods of Securing Arbitration 83

Ignazio v. Clear Channel Broadcasting, Inc. et al. 84

American Express Co. vs. Italian Colors Restaurant 89

Selection of an Arbitrator 91 Common Uses of Arbitration 92 Problems with Arbitration 92

Minitrials 93

Early Neutral Case Evaluation 94

Private Trials 95

Summary Jury Trials 95

Court-Annexed Alternative Dispute Resolution 95

Use of Court-Annexed ADR in the State and Federal Systems 95 Differences between Court-Annexed and Voluntary ADR 97

The Future of Alternative Dispute Resolution 98

Global Dimensions of Alternative Dispute Resolution 98

Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth 99

Summary 100

Review Questions 100

Review Problems 100

Case Problems 101

Thinking Critically about Relevant Legal Issues 102

Assignment on the Internet 103

On the Internet 103

For Future Reading 104

5 Constitutional Principles 105 The Constitution 105

Federalism 105 Supremacy Clause 106 Federal Preemption 106

Separation of Powers 107

William Jefferson Clinton v. Paula Corbin Jones 107

The Impact of the Commerce Clause on Business 110

The Commerce Clause as a Source of Federal Authority 110

Gonzales v. Raich 112 The Commerce Clause as a Restriction on State Authority 116

Nat’l Ass’n of Optometrists & Opticians v. Brown 116

The Taxing and Spending Powers of the Federal Government 119

Taxation of the Internet? 120

The Impact of the Amendments on Business 121

The First Amendment 121

Central Hudson Gas & Electric Corp. v. Public Service Commission of New York 123

The Fourth Amendment 128

Florida v. Jardines 129 The Fifth Amendment 132

United States v. Windsor 134 The Fourteenth Amendment 139

Summary 140

Review Questions 140

Review Problems 140

vi C O N T E N T S

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C O N T E N T S vii

Case Problems 141

Thinking Critically about Relevant Legal Issues 143

Assignment on the Internet 143

On the Internet 144

For Future Reading 144

6 White-Collar Crime and the Business Community 145 Crime and Criminal Procedure 148

Crime 148 Criminal Procedure 149

Distinguishing Features of White-Collar Crime 154

The Corporation as a Criminal 154 Arguments in Support of Corporate Liability 155 Arguments in Opposition to Corporate Liability 156 Imposition of Liability on Corporate Executives 157

United States v. Park 157 Imposition of Liability on Lower-Level Corporate Criminals 160 Factors Encouraging the Commission of White-Collar Crime 160 Sentencing of White-Collar Criminals 162

Common White-Collar Crimes 164

Sekhar v. United States 164 Bribery 165 Violations of Federal Regulations 166 Criminal Fraud 167

United States v. Gray 167 Larceny 169 Embezzlement 170 Computer Crimes 170

Prevention of White-Collar Crime 173

Federal Laws Used in the Fight against White-Collar Crime 175

The Racketeer Influenced and Corrupt Organizations Act (RICO) 175 False Claims Act 177 Sarbanes-Oxley Act 178 Whistleblower Protection Act 179

State Laws Used in the Fight against White- Collar Crime 180

Global Dimensions of White-Collar Crime 181

Summary 182

Review Questions 182

Review Problems 182

Case Problems 183

Thinking Critically about Relevant Legal Issues 186

Assignment on the Internet 186

On the Internet 187

For Future Reading 187

7 Ethics, Social Responsibility, and the Business Manager 188 Definition of Business Ethics and the Social Responsibility of Business 190

Business Ethics 190 The Social Responsibility of Business 191

In re Exxon Valdez 191

Theories of Ethical Thought 193 Consequential Theories 193 Deontological Theories 194 Humanist Theories 195

Codes of Ethics 195 Individual Codes of Ethics 195 Corporate Codes of Ethics 197 Industry Codes of Ethics 198 Professional Codes of Ethics 198

Schools of Social Responsibility 201 Profit-Oriented School 201 Managerial School 204 Institutional School 204

Cooper Industries v. Leatherman Tool Group, Inc. 205

Professional Obligation School 205 Regulation School 206

Johnson Construction Co. v. Shaffer 206

Global Dimensions of Ethics and Social Responsibility 207

Code of Conduct for Transnational Corporations 207

Summary 207

Review Questions 208

Review Problems 208

Case Problems 209

Thinking Critically about Relevant Legal Issues 210

Assignment on the Internet 211

On the Internet 211

For Future Reading 211

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8 The International Legal Environment of Business 213 Dimensions of the International Environment of Business 214

Political Dimensions 214 Economic Dimensions 215 Cultural Dimensions 215 Corruption and Trade 216

United States v. Kay 216 Legal Dimensions 219 Selected National Legal Systems 221

Crosby v. National Foreign Trade Council 222

Methods of Engaging in International Business 223

Trade 223 International Licensing and Franchising 224

Russian Entertainment Wholesale, Inc. v. Close-Up International, Inc. 225

Foreign Direct Investment 226

In re Union Carbide Corp. Gas Plant Disaster v. Union Carbide Corp. 227

Risks of Engaging in International Business 229

Expropriation of Private Property 229 Sovereign Immunity Doctrine 230

Keller v. Central Bank of Nigeria 230

Act-of-State Doctrine 231

Linde v. Arab Bank, PLC 231 Export and Import Controls 232

Legal and Economic Integration as a Means of Encouraging International Business Activity 233

The World Trade Organization 233 The European Union 236 North American Free Trade Agreement 240

Global Dispute Resolution 242 Arbitration 243 Litigation 243 Globalization: Hurts or Helps 243

Summary 244

Review Questions 244

Review Problems 245

Case Problems 245

Thinking Critically about Relevant Legal Issues 246

Assignment on the Internet 246

On the Internet 247

For Future Reading 247

P A R T T W O

Private Law and the Legal Environment of Business 249

9 The Law of Contracts and Sales—I 250 Definition, Sources, and Classifications of Contract Law 251

Definition 251 Sources of Contract Law 251

Paramount Contracting Co. v. DPS Industries, Inc. 252

Classifications of Contracts 253

Pan Handle Realty, LLC v. Olins 254

Audito v. City of Providence 255

Elements of a Legal Contract 257 Legal Offer 257

Beer v. Chase 258 Legal Acceptance 260

The Private Movie Company, Inc. v. Pamela Lee Anderson et al. 260

Consideration 263 Genuine Assent 264

Stambovsky v. Ackley and Ellis Realty 265 Competent Parties 267 Legal Object 269

Brown & Brown, Inc. v. Johnson 270

Contracts That Must Be in Writing 271 Contracts for the Sale of an Interest in Land 271 Contracts to Pay the Debts of Another 271 Contracts Not Performable in One Year 271 Sale of Goods of $500 or More 272

Iacono v. Lyons 272 Nonbusiness Contracts 273

Parol Evidence Rule 273

Third-Party Beneficiary Contracts and Assignment of Rights 274

Types of Third-Party Beneficiary Contracts 274 Assignment of Rights 274

Summary 275

Review Questions 276

Review Problems 276

Case Problems 277

Thinking Critically about Relevant Legal Issues 278

On the Internet 278

For Future Reading 278

viii C O N T E N T S

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10 The Law of Contracts and Sales—II 279 Methods of Discharging a Contract 280

Discharge by Performance 280

Kohel v. Bergen Auto Enterprises, L.L.C. 280

Performance to Satisfaction of Another 281 Material Breach of Contract 281 Discharge by Mutual Agreement 282 Discharge by Conditions Precedent and Subsequent 282

Architectural Systems, Inc. v. Gilbane Building Co. 283

Discharge by Impossibility of Performance 283 Discharge by Commercial Impracticability 284 Contracts with the Government and the Sovereign Acts Doctrine 284

Facto v. Pantagis 285

Remedies for a Breach of Contract 286 Monetary Damages (“Legal” Remedies) 286

Hallmark Cards, Inc. v. Murley 287

Arrowhead School District No. 75, Park County, Montana v. James A. Klyap, Jr. 288

Equitable Remedies 289 Remedies for Breach of a Sales Contract (Goods) 290

Fitl v. Strek 290

E-Contracts 291 E-Signatures 292 The Uniform Computer Information Transaction Act 292

Global Dimensions of Contract and Sales Law 293

Summary 294

Review Questions 295

Review Problems 295

Case Problems 296

Thinking Critically about Relevant Legal Issues 297

Assignment on the Internet 297

On the Internet 297

For Future Reading 298

11 The Law of Torts 299 The Goals of Tort Law 299

Damages Available in Tort Cases 300 Compensatory Damages 300 Nominal Damages 301 Punitive Damages 301

Young v. Becker & Poliakoff 303

Classifications of Torts 307

Intentional Torts 307 Intentional Torts against Persons 307

Nemet Chevrolet, Ltd. v. Consumeraffairs .com, Inc. 310

Intentional Torts against Property 317 Intentional Torts against Economic Interests 318

Negligent Torts 319 Elements of Negligence 319 Defenses to Negligence 322

Coomer v. Kansas City Royals 323

Venkateswarlu Thota and North Texas Cardiology Center v. Margaret Young 324

Strict Liability Torts 326

Global Dimensions of Tort Law 326

Summary 327

Review Questions 327

Review Problems 328

Case Problems 328

Thinking Critically about Relevant Legal Issues 330

Assignment on the Internet 331

On the Internet 331

For Future Reading 331

12 Product and Service Liability Law 332 Theories of Recovery in Product Liability Cases 333

Negligence 333

Mutual Pharmaceutical Company, Inc. v. Bartlett 340

Strict Liability in Contract for Breach of Warranty 341

Williams v. Braum Ice Cream Store, Inc. 343 Strict Liability in Tort 346

Welge v. Planters Lifesavers Co. 347 Liability to Bystanders 351

Market Share Liability 351

Service Liability 352 Accountants’ Liability 353

Global Dimensions of Product Liability Law 353

Summary 355

Review Questions 355

Review Problems 356

Case Problems 356

C O N T E N T S ix

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Thinking Critically about Relevant Legal Issues 357

Assignment on the Internet 358

On the Internet 358

For Future Reading 359

13 Law of Property: Real and Personal 360 Real Property 361

Definition of Real Property 362 Extent of Ownership 362

Interests in Real Property 362 Fee Simple Absolute 362 Conditional Estate 362 Life Estate 363 Future Interest 363 Leasehold Estates 364 Easements 364 License 364 Co-Ownership 364 Condominiums and Cooperatives 365

Plum Creek C.A. v. Oleg Borman 365

Voluntary Transfer of Real Property 368 Execution 368 Delivery 370 Acceptance 370 Recording 370

Involuntary Transfer of Real Property 370 Adverse Possession 370 Condemnation 371

Susette Kelo et al. Petitioners, v. City of New London, Connecticut et al. 372

Restrictions on Land Use 374 Restrictive Covenants 374 Zoning 374

Emine Bayram v. City of Binghamton and City of Binghamton Zoning Board of Appeals 375

Other Statutory Restrictions on Land Use 377

Personal Property 378 Voluntary Transfer of Personal Property 378 Involuntary Transfers of Personal Property 378 Bailments 379

Global Dimensions of Property Law 379

Summary 380

Review Questions 380

Review Problems 381

Case Problems 381

Thinking Critically about Relevant Legal Issues 382

Assignment on the Internet 383

On the Internet 383

For Future Reading 383

14 Intellectual Property 385 Introduction to Intellectual Property 385

Trademarks 385

Toys “R” Us, Inc. v. Canarsie Kiddie Shop, Inc. 386

Trade Dress 389 Federal Trademark Dilution Act of 1995 391

Victor Moseley and Cathy Moseley et al., dba Victor’s Little Secret v. V Secret Catalogue, Inc. et al. 391

Patents 393

Bilski v. Kappos 393

Trade Secrets 396 Economic Espionage Act 397

Copyrights 397 Fair Use Doctrine 398 Copyrights in the Digital Age 398

American Broadcasting Company, Inc. et. al. v. Aereo, Inc. 399

RealNetworks, Inc. v. DVD Control Copy Association, Inc. et al. 402

Global Dimensions of Intellectual Property Law 402

Summary 403

Review Questions 404

Review Problems 404

Case Problems 404

Thinking Critically about Relevant Legal Issues 406

Assignment on the Internet 407

On the Internet 407

For Future Reading 407

15 Agency Law 408 Definition and Types of Agency Relationships 409

Definition of Agency 409 Types of Agency Relationships 409

Coker v. Pershad 411

Creation of an Agency Relationship 412 Expressed Agency or Agency by Agreement 413 Agency by Implied Authority 413

x C O N T E N T S

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Penthouse International v. Barnes 414 Agency through Ratification by Principal 415 Agency by Estoppel or Apparent Authority 415

Motorsport Marketing, Inc. v. Wiedmaier, Inc. 416

Duties of Agents and Principals 416 Principal’s Duties to Agent 416 Agent’s Duties to Principal 417

Cousins v. Realty Ventures, Inc. 417

Gossels v. Fleet National Bank 419

Principal’s and Agent’s Liability to Third Parties 420

Contractual Liability 420

McBride v. Taxman Corp. 421 E-Commerce: Intelligent Agents 421 Liability of Disclosed, Partially Disclosed and Undisclosed Principals 422 Liability of Undisclosed Principal 422 Tort Liability 422 Tort Liability and Negligence 423

Auer v. Paliath 423 Criminal Liability 424

Termination of the Principal–Agent Relationship 424

Termination by Agreement 424 Termination by Operation of Law 425

Gaddy v. Douglass 425

Global Dimensions of Agency Law 426 Japan 427 European Union 427 U.S. Agents Abroad 427

Summary 428

Review Questions 428

Review Problems 428

Case Problems 429

Thinking Critically about Relevant Legal Issues 430

Assignment on the Internet 431

On the Internet 431

For Future Reading 431

16 Law and Business Associations—I 432 Factors Influencing a Business Manager’s Choice of Organizational Form 434

Some Common Forms of Business Organization in the United States 434

Sole Proprietorships 434

Quality Car & Truck Leasing, Inc. v. Sark 435

General Partnerships 436

In re KeyTronics 438

Enea v. Superior Court of Monterey County 439

Limited Partnerships and Limited Liability Limited Partnerships 443

Specialized Forms of Business Associations 444

Joint Stock Company 444 Syndicate 445 Joint Venture 445 Franchising 445

Holiday Inn Franchising, Inc. v. Hotel Associates, Inc. 446

Global Dimensions of Business Associations 447

Outsourcing 448

Summary 449

Review Questions 449

Review Problems 449

Case Problems 450

Thinking Critically about Relevant Legal Issues 451

Assignment on the Internet 451

On the Internet 452

For Future Reading 452

17 Law and Business Associations— II 453 The Corporation 453

Classification of Corporations 454 Closely Held Corporation 454 Publicly Held Corporation 455 Multinational or Transnational Corporation 455 Subchapter S Corporation 455 ROBS Corporation 455 Professional Corporation 455 Nonprofit Corporation 456

Creation of Corporations 456

Brennan’s Inc. v. Colbert 457

Financing of Corporations 458 Debt Financing 458 Equity Financing 459 Consideration 461

Operation of Corporations 462 The Role of the Shareholders 462 The Role of the Board of Directors 464

C O N T E N T S xi

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In re Abbott Laboratories Derivative Shareholders Litigation 465

The Role of the Officers and Managers 466 Fiduciary Obligations of Directors, Officers, and Managers 466

Beam v. Stewart 467

Smith v. Van Gorkom 469

Limited Liability Companies 473 The Uniform Limited Liability Act 473 LLC Characteristics 473 Creating a Limited Liability Company 473 Duration of the LLC 474 Financing of the LLC 474 Control Considerations 474 Tax Ramifications 474

Gatz Properties, LLC v. Auriga Capital Corporation 474

Global Dimensions of Corporations: A “Big Fat Greek” Bailout II and III 476

Summary 476

Review Questions 477

Review Problems 477

Case Problems 478

Thinking Critically about Relevant Legal Issues 478

Assignment on the Internet 479

On the Internet 479

For Future Reading 480

P A R T T H R E E

Public Law and the Legal Environment of Business 481

18 The Law of Administrative Agencies 482 Introduction to Administrative Law and Administrative Agencies 483

Administrative Law 483 Administrative Agencies 484

Creation of Administrative Agencies 485

Functions of Administrative Agencies 486 Rulemaking 486

City of Arlington v. Federal Communications Commission 488

Adjudication 489

Fox Television Stations, Inc. v. Federal Communications Commission 493

Administrative Activities 494

Limitations on Administrative Agencies’ Powers 494

Statutory Limitations 494 Institutional Limitations 494

State and Local Administrative Agencies 496

Vonage Holdings Corp. v. Minnesota Public Utilities Commission 497

Global Dimensions of Administrative Agencies 498

Summary 498

Review Questions 498

Review Problems 498

Case Problems 499

Thinking Critically about Relevant Legal Issues 501

Assignment on the Internet 501

On the Internet 501

For Future Reading 502

19 The Employment Relationship and Immigration Laws 503 Wage and Hour Laws 504

Unemployment Compensation 506

Cassandra Jenkins v. American Express Financial Corp. 509

Consolidated Omnibus Budget Reconciliation Act of 1985 510

Workers’ Compensation Laws 510 Coverage 510 Recoverable Benefits 512 The Claims Process 12 Benefits of the Workers’ Compensation System 512

The Family and Medical Leave Act of 1993 513

Major Provisions 513

Jeffrey Bonkowski v. Oberg Industries, Inc. 514

Remedies for Violations of the FMLA 516 The Future of the FMLA 517

The Occupational Safety and Health Act of 1970 518

Occupational Safety and Health Administration 518 Occupational Safety and Health Review Commission 521 National Institute for Occupational Safety and Health 521 Implementation of the OSH Act 523

xii C O N T E N T S

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Employee Privacy Rights 523 Electronic Monitoring and Communication 523

Brian Pietrylo and Doreen Marino, Plaintiffs v. Hillstone Restaurant Group d/b/a Houston’s, Defendant 524

Drug Testing 527 Other Testing 528

Immigration Law 529 Immigration Reform and Control Act of 1986 529 Authorized Noncitizen Workers 530

Global Dimensions of the Employment Relationship 532

Summary 533

Review Questions 533

Review Problems 533

Case Problems 534

Thinking Critically about Relevant Legal Issues 535

Assignment on the Internet 536

On the Internet 536

For Future Reading 537

20 Laws Governing Labor– Management Relations 538 Structure of the Primary U.S. Labor Legislation and the Mechanisms for Its Enforcement 540

The Wagner Act of 1935 540 The Taft–Hartley Act of 1947 541 The Landrum–Griffin Act of 1959 542 The National Labor Relations Board 542

Labor Organizing 548 Board Rules 548 Unfair Labor Practices by Employers 549

Gaetano & Associates, Inc. v. National Labor Relations Board 553

Unfair Labor Practices by Employees 554

Laborers’ International Union of North America, Local 872, AFL–CIO, and Stephanie Shelby 554

Organizing the Appropriate Unit 556

Specialty Healthcare and Rehabilitation Center of Mobile and United Steelworkers, District 9, Petitioner 557

The Collective Bargaining Process 559 Subjects of Bargaining 560

Strikes, Boycotts, and Picketing 560 Strikes 561

Boycotts 563 Picketing 563

Global Dimensions of Labor–Management Relations 564

Summary 564

Review Questions 564

Review Problems 565

Case Problems 565

Thinking Critically about Relevant Legal Issues 567

Assignment on the Internet 568

On the Internet 568

For Future Reading 568

21 Employment Discrimination 569 The Employment-at-Will Doctrine 570

Constitutional Provisions 572

The Civil Rights Acts of 1866 and 1871 572 Applicability of the Acts 572

The Equal Pay Act of 1963 573 Equal Work 574 Defenses 574 Remedies 575

The Civil Rights Act of 1964, as Amended (Title VII), and the Civil Rights Act of 1991 575

Applicability of the Act 575 Proof in Employment Discrimination Cases 576

Teresa Harris v. Forklift Systems, Inc. 580

Vance v. Ball State University 583 Retaliation 583

Reya C. Boyer-Liberto v. Fontainbleu Corporation 584

Statutory Defenses 586 Protected Classes 588 Enforcement Procedures 592 Remedies 595 Lilly Ledbetter Fair Pay Act of 2009 595

The Age Discrimination in Employment Act of 1967 596

Applicability of the Statute 597 Proving Age Discrimination 597

Jones v. National American University 598 Statutory Defenses 599 Enforcement Procedures 600 Remedies under ADEA 601

The Rehabilitation Act of 1973 601

The Americans with Disabilities Act of 1991 602

Covered Individuals 602

C O N T E N T S xiii

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McMillan v. City of New York 604 Enforcement Procedures 606 Remedies 606

Affirmative Action 606

Global Dimensions of Employment Discrimination Legislation 610

Summary 611

Review Questions 612

Review Problems 612

Case Problems 613

Thinking Critically about Relevant Legal Issues 615

Assignment on the Internet 615

On the Internet 616

For Future Reading 616

22 Environmental Law 617 Alternative Approaches to Environmental Protection 618

Tort Law 618

Boomer et al. v. Atlantic Cement Co. 618 Government Subsidies Approach 620 Emission Charges Approach 620 Marketable Discharge Permits Approach 620 Direct Regulation Approach 621

The Environmental Protection Agency 621

The National …