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In each case that follows, you be the judge.25. Preferred TreatmentAfter being hired to build homes, the Centex-Winston Corporation contracted to purchaselumber, for resale, from Edward Hines Lumber Company. Hines consistently failed to deliverorders on time due to its preferential treatment of several Centex-Winston competitors. Centex-Winston sued Hines, claiming the preferential delivery violated the Robinson-Patman Act. IsCentex-Winston correct? Why or why not?Centex-Winston v. Edward Hines Lumber Co., 447 F.2d 585 (7th Circuit).26. True IntentIrwin Lampert, Leonard Levy, and Paul Scuderi purchased more than 12 percent of GeneralAircraft’s stock. Because the purchase exceeded 5 percent, they filed the SEC form requiredby the Williams Act, stating that the purchase was for investment purposes only. For the nextyear, Lampert, Levy, and Scuderi caused a great deal of trouble for General Aircraft’s management.They eventually engineered a change on the board of directors, giving themselvesmore influence on corporate decision making. They then entered a proxy solicitation contest,challenging management for total corporate control. Management filed a complaint, claimingthat the Williams Act filing had been fraudulent; the stock purchase had not been for investmentpurposes. The complaint asked the court to order Lampert, Levy, and Scuderi to amendtheir filing and to stop buying shares or soliciting proxies until the amendments had beenproperly processed. Should the court order be granted? Why or why not?General Aircraft Corporation v. Lampert, 556 F.2d 90 (1st Circuit).Another Crash?On October 12, 1987, the Dow Jones IndustrialAverage plunged 508 points. When the closing bellrang, the market was worth 22 percent less than ithad been that morning. It was the worst crash since1929 and the Great Depression.ConnectUsing a variety of search engines:27. Research the days leading up to October 12.28. Develop a timeline of events that you thinkhelped cause this event.Then present to the class the reasons why youbelieve this stock market crash did not cause amajor depression in the United States.29. Predict Do you think the growth andexpansion of a business could actuallyreduce competition? Explain your answer.30. Connect Can you think of a company thathas not been able to expand because of theantitrust laws that are in place?31. Question Is it the government’s responsibilityto protect the environment frompollution? Why or why not?32. Respond When a corporation ends,why must you report the event to thegovernment?Chapter 30: Corporate Regulation and Expansion 665
UNITLaw Workshop:Using Legal ToolsDo You Have an Idea for aBusiness?Owning your own business can befinancially and personally rewarding,but it demands a lot of work and dedication.Starting a business, whether it’sa sole proprietorship, partnership, orcorporation, also requires knowledge ofbusiness law.Step A: PreparationProblem: How would you organize a corporation and convince others toinvest in it?Objectives: In this workshop, you will work with partners to write thearticles of incorporation for a business. You will also try to convince theclass to buy your company’s stock.l Research and create a product idea.l Use technology to prepare the articles of incorporation for yourbusiness.llInvestigate how to finance a corporation by selling stocks.Present your ideas, and try to persuade other members of your classto invest in your company.666 Unit 6: Starting a Business
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interactive student edition
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Program ComponentsYour Understandin
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Studying Case LawApplying What You
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UNIT 1 Law Workshop: Using Legal To
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UNIT 3Understanding Consumer Law 26
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CHAPTER 21Employment Protection and
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CHAPTER 29Operating a Corporation 6
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Exploring the UnitUnderstanding Bus
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Exploring the SectionChapters of th
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Exploring Chapter AssessmentChapter
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Exploring the Law WorkshopsLaw Work
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FeaturesYour Understanding Business
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A Global Perspective: Laws Around t
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Law & AcademicsThe law is related t
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Legal BriefsThese short features di
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GORDON W. BROWN studied lawto becom
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UNITUNIT OVERVIEWLaws generally ref
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CHAPTEREthics and the LawUnderstand
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Defining Ethicsl How ethical decisi
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GhanaA law can be a decree, a prohi
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People want to be treated with resp
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decisions. Compassionate people try
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Sources of Lawl How to recognize th
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Language ArtsThe legal profession h
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Limits of Free SpeechThe First Amen
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Adopt a PetAre you consideringadopt
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CHAPTERASSESSMENTSection 1.1 Defini
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CHAPTERASSESSMENTConnect with Scien
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CHAPTERThe Court SystemUnderstandin
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A Dual Court Systeml How to determi
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Supreme CourtThe U.S. Supreme Court
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whether to transfer the case, the c
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Trial Proceduresl How to seek alter
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Another new form of ADR is known as
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AN ANSWERAn answer is the defendant
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predict whether a juror will be fai
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Execution of JudgmentAfter a trial
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SEARCH WARRANTThe scope of a search
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Forensic ScientistIf you’re a fan
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Figure 2.7CAWAORNVAge Limits For Ju
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CHAPTERASSESSMENTSection 2.1 Dual C
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CHAPTERASSESSMENTConnect with Langu
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CHAPTERCriminal LawUnderstanding Bu
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What Is a Crime?l How to tell the d
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Congress to regulate commerce among
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InsanityAmerican law recognizes tha
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Particular Crimesl How to define ma
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a captive. Kidnapping usually inclu
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Figure 3.4Violent Crime Rates by Ra
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68 Unit 1: Knowing About the LawLar
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DRAG RACING AND LIABILITYMany state
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COMPUTER CRIMEBoth the state and th
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CHAPTERASSESSMENTSection 3.1 What I
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CHAPTERASSESSMENTAcquiring and Eval
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CHAPTERThe Law of TortsUnderstandin
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Intentional Tortsl How to tell the
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attery involves the unlawful, unpri
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Smashed Grapesand SlipperyFloorsYou
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Defamation is writtenor spoken inju
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l How to definenegligencel How to e
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Student PrivacyThe searching ofscho
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no longer follow this doctrine, how
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CHAPTERASSESSMENTSection 4.1 Intent
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CHAPTERASSESSMENTWorking with Techn
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UNITLaw Workshop:Using Legal ToolsH
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UNITLandmark CaseCipollone v. Ligge
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UNITUNIT OVERVIEWYou regularly take
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CHAPTERHow Contracts AriseUnderstan
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Contractsl Explain the elementsof l
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theory was called the will theory o
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Characteristics of a ContractContra
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for the other’s promise to do som
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l How to recognize therequirements
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Letting your officemanager know tha
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Student LoansThere are many waysto
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RevocationRevocation is the taking
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CHAPTERASSESSMENTSection 5.1 Contra
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CHAPTERASSESSMENTInterpret and Comm
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CHAPTERGenuine AgreementUnderstandi
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l How to identify theelements of fr
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creates a duty to reveal the hidden
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Resulting LossYou may choose to ent
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Figure 6.3Unilateral Mistake1. Mist
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the agreement can be performed when
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UNDUE INFLUENCEGenuine agreementsca
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CHAPTERASSESSMENTSection 6.1 Fraud
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CHAPTERASSESSMENTInterpreting and C
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CHAPTERContractual CapacityUndersta
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Contractual Capacityl How to explai
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their contracts. The court has esta
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PROVING MAJORITYSome states require
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Returning the Merchandise If a mino
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Ratification of Minors’ Contracts
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Draft RegistrationCelebrating your
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CHAPTERASSESSMENTSection 7.1 Contra
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CHAPTERConsiderationUnderstanding B
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Considerationl How to explain thele
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GiftsA gift is somethingthat is giv
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Common law judgesrarely entertainar
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Disputed AmountsIf the parties to a
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Consideration in Your Everyday Life
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Court ReporterSally Harmon provides
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Figure 8.2The Elements of Promissor
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PREEXISTING DUTIESPreexisting dutie
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CHAPTERASSESSMENTSection 8.1 Consid
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CHAPTERLegalityUnderstanding Busine
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l How to explain whatmakes a contra
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Winner Takes AllBecause she lives i
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At one time, most states prohibited
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THE GREAT SEAL OF THE STATE OF OHIO
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l How to explain thelegal doctrine
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llAgreements inducing fraud or a br
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Agreements to Obstruct JusticeAny c
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CHAPTERASSESSMENTSection 9.1 Legali
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CHAPTERASSESSMENTParticipate as a M
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CHAPTERForm of the ContractUndersta
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The Statute ofFraudsl How to explai
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Unions were formed tohelp protect t
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Civil Process ServerIt’s a good t
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MARRIAGE CONTRACTSAlthough the law
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An exception to the requirement tha
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The Best Evidence RuleThe courts us
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CHAPTERASSESSMENTSection 10.1 Statu
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CHAPTERHow ContractsCome to an EndU
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l How to identify whentime is impor
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Earth DayYour local museummay have
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would prevent such a drastic and un
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Mutual ReleaseJodi and Mark mutuall
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Money damages are themost common re
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long to seek payment. You may not
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CHAPTERASSESSMENTSection 11.1 Perfo
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CHAPTERASSESSMENTParticipate as a M
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CHAPTERTransfer of Contracts andRem
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The Transfer ofContractual Rightsan
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her neighbor, Helen Kane, were in w
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Keeping YourWordRachel agreed to ba
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do her printing job. He could not t
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l How to explain theconcept of anti
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Figure 12.3TypeActual DamagesCompen
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Corporate LawyerRichard Negrin is a
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CHAPTERASSESSMENTSection 12.1 The T
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UNITLaw Workshop:Using Legal ToolsH
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UNITLandmark CaseMastrobuono v. She
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UNITUNIT OVERVIEWThroughout yourlif
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CHAPTERContracts for theSale of Goo
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The Sale and Leaseof Goodsl When to
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A multimillion-dollarmasterpiece pa
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making the offer may request a part
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Buying MoreThan He CanAfford?Angelo
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Ownership andRisk of Loss inSales o
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Similarly, it is sometimes necessar
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When goods are not to be shipped by
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originally purchased the products.
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E-Commerceand the Lawl Tips for saf
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and temporarily withhold payment wh
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CHAPTERASSESSMENTSection 1 The Sale
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CHAPTERThe Importance ofWarrantiesU
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l How to describe thethree ways an
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warranties close to the product or
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FULL WARRANTYA full warranty is one
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Description of the GoodsAny descrip
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Susan it would be perfect for that
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President Kennedyspoke of four basi
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Charitable GiftsGiving to charities
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lAlternative C gives sellers’ war
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CHAPTERASSESSMENTSection 14.1 Expre
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CHAPTERConsumer Protectionand Produ
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Consumer Protectionl How to explain
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COMPLAINT LETTERA complaint letterd
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unlawful and unethical for a realto
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Credit identity theftoccurs when so
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Blowing SmokeThere is no doubt that
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Figure 15.4Dear Customer:See Figure
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Health HazardFor many people,smokin
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WARNINGSWarning labels mustbe place
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CHAPTERASSESSMENTSection 15.1 Consu
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CHAPTEROwning a VehicleUnderstandin
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Acquiring a Vehiclel How to identif
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Parole OfficerAs a parole officer f
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Purchasing a defectiveautomobile ha
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on the other hand, often sell used
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Buying from a Private PartyYou migh
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in cases in which you are led to be
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When an odometer is repaired and ca
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VEHICLEINSURANCEThe insurance types
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Maintenance OnlineAutomakers are be
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CHAPTERASSESSMENTSection 16.1 Ownin
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CHAPTERPersonal Propertyand Bailmen
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Personal Propertyl How to identifyt
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CanadaAt the University of Montreal
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Figure 17.1Intellectual Property an
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Bailmentsl How to define abailmentl
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Return to Sender, or Not?When you r
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Many courts today apply the reasona
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RIGHT OF PRIVACYHotel keepers mustr
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Guests are permitted to keep in the
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Under Article 1,Section 8 of the U.
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CHAPTERASSESSMENTSection 17.1 Perso
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UNITLaw Workshop:Using Legal ToolsD
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UNITDenny v. Ford Motor Co.New York
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UNITUNIT OVERVIEWMost of us must pl
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CHAPTERCreation of an AgencyUnderst
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l How to explain thenature of an ag
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voluntarily agreed upon by both par
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In the early developmentof agency l
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llllllllDoes the hiring person supp
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Talent AgentTo get a job in televis
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l How to recognize thecreation of a
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Coagents If the principal hires two
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AGENCY BY ESTOPPELOften agency rela
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CHAPTERASSESSMENTSection 18.1 Agenc
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CHAPTERAgency Relationshipsand Thei
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Authority and Dutiesl How to define
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Consequently, the key to determinin
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Good FaithAn agency relationship is
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In seventeenth centuryEurope, most
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he or she has the option of holding
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l How to recognizewhen an agencyrel
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ACTUAL NOTICE OFTERMINATIONThe law
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CHAPTERASSESSMENTSection 19.1 Autho
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CHAPTEREmployment LawUnderstanding
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l How to defineemployment-at-willl
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employ more than 100 workers are bo
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Harrington’s case clearly fits wi
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PUBLIC POLICY TORTIf an employee is
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l How to recognizethose areas ofemp
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Using E-Mail at WorkA large company
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Figure 20.1Child Labor LawsThis cha
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CHAPTERASSESSMENTSection 20.1 Emplo
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CHAPTEREmployment Protectionand Equ
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l How to recognize therole that OSH
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Wages, Hours, and BenefitsThe gover
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Family and Medical Leave ActUnder t
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Recent studies suggestthat it is in
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had programs in place. Workers’ c
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children. This system, known as wel
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Figure 21.3LawCivil Rights Act (Tit
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Cesar ChavezUnions exist withinmany
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AMERICANS WITHDISABILITIES ACTThe f
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CHAPTERASSESSMENTSection 21.1 Laws
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UNITLaw Workshop:Using Legal ToolsW
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UNITLandmark CaseAutomobile Workers
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UNITUNIT OVERVIEWMost people usesom
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CHAPTERBorrowing Money andBuying on
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What Is Credit?l How to distinguish
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Example 2. When Jill bought the tru
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According to a recentstudy, the ave
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to erase the debt! He will pay $7,0
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CREDIT CARD BLOCKTo be sure you don
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EQUAL CREDITOPPORTUNITY ACTThe Equa
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Managing Your Debtsl How to recogni
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FAMILY FARMThe family farm is avani
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CHAPTERASSESSMENTSection 22.1 What
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CHAPTERASSESSMENTParticipating Effe
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CHAPTERNegotiable InstrumentsUnders
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l How to state thepurpose of negoti
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Social StudiesThe use of metal form
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An action to enforcethe obligation
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U.S. CompaniesOperating in Other Co
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Electronic ChecksA group of banks h
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CHAPTERASSESSMENTSection 23.1 Purpo
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CHAPTERWriting ChecksUnderstanding
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Checking Accountsl How to describe
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PERSONAL CHECKNever write a check i
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ecords accurate. Fill out the check
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MathematicsWhen you open a checking
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Canine Enforcement OfficerChristine
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Availability of FundsIn the past, b
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Figure 24.6MANAGE YOUR EFT CARD WIS
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CHAPTERASSESSMENTSection 24.1 Check
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CHAPTERASSESSMENTIn groups of two o
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CHAPTERTransferring NegotiableInstr
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TransferringInstrumentsl How to dis
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Example 1. Hanako Lin wrote a check
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Figure 25.1Check FaceChange ofFortu
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Figure 25.4INDORSE HEREDO NOT WRITE
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Safe DrivingAutomobile crashes aret
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E-SignaturesElectronic signatures n
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CHAPTERASSESSMENTSection 25.1 Trans
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CHAPTERASSESSMENTParticipating as a
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CHAPTERCollecting NegotiableInstrum
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l How to determine if aperson is a
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Paying Twice Is Not So NiceA mechan
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FRAUD IN THEINDUCEMENTWhen someone
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Kristina learned that the brakes ha
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Liabilities of Partiesl How to expl
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Figure 26.3DIRECT REDUCTIONMORTGAGE
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CHAPTERASSESSMENTSection 26.1 Holde
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UNITLaw Workshop:Using Legal ToolsC
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UNITBeach v. Ocwen Federal BankU.S.
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UNITUNIT OVERVIEWMost Americans are
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CHAPTERSole Proprietorshipand Partn
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Sole Proprietorshipl How to define
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Taxing the Sole ProprietorOne advan
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The Partnershipl How to define gene
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PARTNERSHIPFORMATIONA partnership c
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Independence DayAs a citizen of the
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Starting a soleproprietorship can b
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Because each partner is an agent of
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Social StudiesMost people areintere
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CHAPTERASSESSMENTSection 27.1 Sole
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CHAPTERForming and Financinga Corpo
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Corporationsl How to definecorporat
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Social StudiesImagine you have been
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STOCK CERTIFICATESCorporations issu
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CORPORATE NAMESA new corporation ca
Page 645 and 646: The InsideInformation onNonprofitsB
Page 647 and 648: LIMITED LIABILITY COMPANIESA new fo
Page 649 and 650: have incorporated. To deal with the
Page 651 and 652: CHAPTERASSESSMENTSection 28.1 Corpo
Page 653 and 654: CHAPTERASSESSMENTAcquiring and Eval
Page 655 and 656: CHAPTEROperating a CorporationUnder
Page 657 and 658: l How to definecorporate directorl
Page 659 and 660: Language ArtsAt one time, insidertr
Page 661 and 662: many large corporations rent halls
Page 663 and 664: October 24, 1929, called“Black Th
Page 665 and 666: Figure 29.3Duties of Corporate Mana
Page 667 and 668: Many antiliability statutes simply
Page 669 and 670: Shareholder SuitsA shareholder suit
Page 671 and 672: CHAPTERASSESSMENTSection 29.1 Manag
Page 673 and 674: CHAPTERASSESSMENTAcquiring and Eval
Page 675 and 676: CHAPTERCorporate Regulationand Expa
Page 677 and 678: l How to identify thesource of the
Page 679 and 680: Business BluesMany small corporatio
Page 681 and 682: y the U.S. Supreme Court held that
Page 683 and 684: THE ENVIRONMENTALPROTECTION AGENCYT
Page 685 and 686: l How to distinguishamong a merger,
Page 687 and 688: Taking StockOnline investing hasall
Page 689 and 690: State LegislatorOliver Robinson got
Page 691 and 692: in two ways. The corporation can de
Page 693 and 694: CHAPTERASSESSMENTSection 30.1 Gover
Page 695: CHAPTERASSESSMENTAcquiring and Eval
Page 699 and 700: UNITVirginia Bankshares, Inc. v. Sa
Page 701 and 702: UNITUNIT OVERVIEWGetting married, p
Page 703 and 704: CHAPTERMarriageUnderstanding Busine
Page 705 and 706: l How to state when themarriage con
Page 707 and 708: Domestic ViolenceUnfortunately, dom
Page 709 and 710: Figure 31.1Premarital AgreementAgre
Page 711 and 712: Example 2. Gerard Ingels and Ramona
Page 713 and 714: Figure 31.3U.S. Marriage Laws Summa
Page 715 and 716: IndiaTo know India, you must unders
Page 717 and 718: Social StudiesArranged marriages ar
Page 719 and 720: CHAPTERASSESSMENTSection 31.1 Marri
Page 721 and 722: CHAPTERASSESSMENTInterpreting and C
Page 723 and 724: CHAPTERDivorce and ItsLegal Consequ
Page 725 and 726: Ending a Marriagel How to describe
Page 727 and 728: Figure 32.1Grounds for Divorce and
Page 729 and 730: Example 2. Elise Carruthers persist
Page 731 and 732: Fingerprint ExpertKevin Teddy is an
Page 733 and 734: Divorce Settlementl How to identify
Page 735 and 736: “Divorce.Com”The Internet is a
Page 737 and 738: CHAPTERASSESSMENTSection 32.1 Endin
Page 739 and 740: CHAPTERASSESSMENTInterpreting and C
Page 741 and 742: CHAPTERRenting a Place to LiveUnder
Page 743 and 744: The RentalAgreementl How to define
Page 745 and 746: Tenancy at WillA tenancy at will is
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necessary to keep the premises fit
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When renting, keep thevolume on you
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Failure to abide by the restriction
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RoomiesWhen two or more people sign
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CHAPTERASSESSMENTSection 33.1 The R
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CHAPTERBuying a HomeUnderstanding B
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l How to compare theadvantages andd
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Figure 34.2AFFORDING A MORTGAGEYour
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Criminal Court JudgeWhen Dianne Jon
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l How to identify somesuggestions t
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Example 2. Monica and James Dipirro
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Taking OwnershipOwnership of proper
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Eminent Domainand SidewalksJordan i
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Figure 34.7The Nature of Real Prope
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CHAPTERASSESSMENTSection 34.1 Evalu
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CHAPTERInsurance ProtectionUndersta
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l How to explain themeaning and pur
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INSURABLE INTERESTYou cannot take o
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Figure 35.2Life Expectancy Table, A
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When buying term life insurance, yo
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employees who have been laid off pa
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Property Insurancel How to identify
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The NetherlandsDo people who are in
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CHAPTERASSESSMENTSection 35.1 The I
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CHAPTERRetirement and WillsUndersta
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Retirement Incomel How to describe
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Death and TaxesMost people own life
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START EARLYTax-deferred investments
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In 1935, Lord Moynihanand R. Killic
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Figure 36.4LAST WILL AND TESTAMENTO
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Legal ColumnistWhen the topic is th
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Figure 36.5 Distribution of Intesta
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CHAPTERASSESSMENTSection 36.1 Retir
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UNITLaw Workshop:Using Legal Skills
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UNITJones v. Mayer Co.U.S. Supreme
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APPENDIXThe Constitution of theUnit
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APPENDIX ANo Person shall be a Sena
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APPENDIX ATo declare War, grant Let
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APPENDIX AIn Case of the Removal of
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APPENDIX ALegislatures of the State
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APPENDIX AAmendment IXThe enumerati
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APPENDIX AAmendment XVSection 1 ■
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APPENDIX ASection 2 ■ This articl
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APPENDIXThe Declaration ofIndepende
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APPENDIX BHe has made Judges depend
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Aabandoned When an emancipated mino
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ilateral mistake Occurs when both p
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cooling-off rule Provision that giv
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Equal Credit Opportunity Act Ensure
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holographic will Will written entir
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limited-payment life insurance Allo
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passenger People being legally tran
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ight-to-work laws State laws that p
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title The formal written right of o
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AAmerican Legal Aid, Inc.v. Legal A
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ailors, 368bait and switch advertis
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contracts, written, 205-221best evi
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education-industry cooperation, 447
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health maintenance organizations(HM
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limited lifetime of soleproprietors
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pension plans, 456. See also retire
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Securities and Exchange Commission(
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United Nations Commission onInterna
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