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ESSENTIALS OF
Business
Law
ION
ITD
Jeffrey F. Beatty
Boston University
th 6
Susan S. Samuelson
Boston University
Patricia Sánchez Abril
University of Miami
Australia • Brazil • Mexico • Singapore • United Kingdom • United States

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Essentials of Business Law, 6th Edition
© 2019, 2015 Cengage Learning, Inc.
Jeffrey F. Beatty, Susan S. Samuelson, and
Unless otherwise noted, all content is © Cengage
Patricia Sánchez Abril
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Printed in the United States of America
Print Number: 01
Print Year: 2017
C O N T E N T S : Ov E rv I E w
Preface xix
UNIT4
Sales 475
UNIT1
21 Introduction to Sales
476
The Legal Environment
22 Ownership, Risk, and Warranties
501
23 Performance and Remedies
529
1 Introduction to Law
2 Ethics and Corporate Social Responsibility
23
3 International Law
58
UNIT5
4 Common Law, Statutory Law,

Additional CPA Topics
553
and Administrative Law
83
5 Constitutional Law
108
24 Secured Transactions
554
6 Dispute Resolution
133
25 Creating a Negotiable Instrument
588
7 Crime
164
26 Liability for Negotiable Instruments
612
27 Accountants’ Liability
637
UNIT2
Torts 195
UNIT6
Agency and Employment Law 661
8 Intentional Torts and Business Torts
196
9 Negligence, Strict Liability,
28 Agency Law
662
and Product Liability
217
29 Employment and Labor Law
690
10 Privacy and Internet Law
240
30 Employment Discrimination
719
UNIT3
UNIT7
Contracts 265
Business Organizations
753
11 Introduction to Contracts
266
31 Starting a Business: LLCs
12 The Agreement: Offers and Acceptances
285
and Other Options
754
13 Consideration
307
32 Partnerships
776
14 Legality
327
33 Life and Death of a Corporation
802
15 Voidable Contracts: Capacity and Consent
347
34 Management Duties
827
16 Written Contracts
368
35 Shareholder Rights
848
17 Third Parties
388
36 Bankruptcy
875
18 Contract Termination
407
19 Remedies
427
20 Practical Contracts
449
iii
iv
C O N T E N T S : Ov E rv I E w
UNIT8
Appendix A
Government Regulation
901
The Constitution of the United States
A1
Appendix B
37 Securities Regulation
902
Uniform Commercial Code (Selected Provisions)
B1
38 Antitrust
931
39 Consumer Protection
954
Appendix C
40 Environmental Law
981
Answers to Selected End-of-Chapter Questions
C1
Glossary G1
UNIT9
Table of Cases
T1
Property 1007
Index I1
41 Intellectual Property
1008
42 Real Property and Landlord–Tenant Law
1033
43 Personal Property and Bailment
1060
44 Planning for the Future: Wills,
Trusts, and Insurance
1080
CONTENTS
Preface xix
2-2e Moral Universalism and Relativism

31
2-2f Ethics Case: Up in Smoke
32
2-3 Ethics Traps
33
UNIT1
2-3a Money
33
2-3b Competition
33
The Legal Environment
2-3c Rationalization
34
2-3d We Cannot Be Objective about Ourselves 35
Chapter 1 Introduction to Law 2
2-3e Moral Licensing
35
1-1 Exploring the Law
2-3f Conflicts of Interest

36
1-1a The Role of Law in Society
2-3g Conformity
36
1-1b Origins of Our Law
2-3h Ethics Case: Diamonds in the Rough
36
1-2 Sources of Contemporary Law
2-3i Following Orders
37
1-2a The United States Constitution
2-3j Euphemisms and Reframing
37
1-2b Statutes
2-3k Lost in a Crowd
38
1-2c Common Law
2-3l Ethics Case: Man Down
38
1-2d Court Orders
2-3m Short-Term Perspective
39
1-2e Administrative Law
10
2-3n Ethics Case: Wobbly Platform
39
1-2f Treaties
10
2-3o Blind Spots
40
1-3 Classifications
10
2-3p Avoiding Ethics Traps
40
1-3a Criminal and Civil Law

10
2-3q Lying: A Special Case
41
1-3b Law and Morality
11
2-3r Ethics Case: Truth (?) in Borrowing
41
1-4 Jurisprudence
12
2-4 Reacting to Unethical Behavior
42
1-4a Legal Positivism
12
2-4a Loyalty
42
1-4b Natural Law
12
2-4b Exit
42
1-4c Legal Realism
13
2-4c Voice
43
1-5 Working with the Book’s Features
13
2-4d Ethics Case: Truth or Consequences
43
1-5a Analyzing a Case
14
2-5 Applying the Principles
45
1-5b Exam Strategy
16
2-5a Personal Ethics in the Workplace
45
1-5c You Be the Judge
17
2-5b Ethics Case: Weird Wierdsma
45
2-5c The Organization’s Responsibility
Chapter Conclusion
18
to Society
46
Exam Review
18
2-5d Ethics Case: Breathing the Fumes
46
Multiple-Choice Questions
19
2-5e The Organization’s Responsibility
Case Questions
20
to Its Employees
46
Discussion Questions
21
2-5f Ethics Case: The Storm after the Storm
47
2-5g The Organization’s Responsibility
to Its Customers
47
Chapter 2 Ethics and Corporate

2-5h Ethics Case: Mickey Weighs In
48
Social Responsibility
23
2-5i The Organization’s Responsibility
2-1 Why Study Ethics?
25
to Overseas Workers
48
2-1a Ethics in Business
26
2-5j Ethics Case: A Worm in the Apple
49
2-1b Why Be Ethical?
27
2-5k Corporate Social Responsibility (CSR)
50
2-2 Theories of Ethics
29
2-5l Ethics Case: The Beauty of a
2-2a Utilitarian Ethics

29
Well-Fed Child
50
2-2b Deontological Ethics
30
2-2c Rawlsian Justice
30
Chapter Conclusion
51
2-2d Front Page Test
31
Exam Review
51
vi
CONTENTS
53
Chapter Conclusion
103
Case Questions
54
Exam Review
103
55
105
Case Questions
106
107
Chapter 3 International Law 58
3-1 International Law:
Public and Private
59
Chapter 5 Constitutional Law 108
3-2 Actors in International Law
59
5-1 Who Will Have Power?
109
3-2a The United Nations
59
5-1a Overview
109
3-2b The International Court of Justice
60
5-1b Creating the Constitution:
3-2c International Chamber of Commerce
62
Important Principles
109
3-2d Sovereign Nations
62
5-1c Powers Granted
110
3-3 The World’s Legal Systems

63
5-2 Protected Rights
116
3-3a Common Law
63
5-2a Incorporation
117
3-3b Civil Law
64
5-2b First Amendment: Free Speech
117
3-3c Islamic Law
65
5-2c Fifth Amendment: Due Process
3-4 Sources and Applicability of
and the Takings Clause
120
International Law
67
5-2d Fourteenth Amendment:
3-4a Sources of International Law

67
Equal Protection Clause
125
3-4b Interaction of Foreign
and Domestic Laws
73
Chapter Conclusion
127
3-4c Choosing the Applicable Law
Exam Review
127
and Jurisdiction
77
130
Case Questions
131
Chapter Conclusion
77
131
Exam Review
78
80
Case Questions
81
Chapter 6 Dispute Resolution 133
82
6-1 Court Systems
134
6-1a State Courts
134
6-1b Federal Courts
138
Chapter 4 Common Law, Statutory
6-2 Before Trial
141
Law, and Administrative Law 83
6-2a Pleadings
141
4-1 Common Law
84
6-2b Discovery
145
4-1a Stare Decisis
84
6-2c Summary Judgment
149
4-1b Bystander Cases
84
6-2d Final Preparation
151
4-2 Statutory Law
86
6-3 The Anatomy of a Trial and Appeal
151
4-2a Bills
87
6-3a The Trial
151
4-2b Discrimination: Congress and the Courts 88

6-3b Appeals
156
4-2c Debate
88
6-4 Alternative Dispute Resolution
157
4-2d Conference Committee
90
6-4a Negotiation
157
4-2e Statutory Interpretation
91
6-4b Mediation
157
4-2f Changing Times
93
6-4c Arbitration
158
4-2g Voters’ Role
93
4-2h Congressional Override

93
Chapter Conclusion
159
4-3 Administrative Law
94
Exam Review
159
4-3a Creation of Agencies
95
161
4-3b Power of Agencies
96
Case Questions
162
4-3c Limits on Agency Power
99
163
CONTENTS
vii
Chapter 7 Crime 164
8-3 Business Torts
208
7-1 Criminal Procedure
165
8-3a Tortious Interference with
7-1a A Civil versus a Criminal Case
165
Business Relations
208
7-1b Conduct Outlawed
166
8-3b Tortious Interference with a Contract
208
7-1c State of Mind

168
8-3c Tortious Interference with a Prospective
7-1d Gathering Evidence:
Advantage 209
The Fourth Amendment
169
8-3d The Lanham Act
210
7-1e After Arrest
174
7-2 Crimes That Harm Businesses
Chapter Conclusion
211
(and Their Customers)
177
Exam Review
211
7-2a Larceny
177
213
7-2b Embezzlement
178
Case Questions
214
7-2c Fraud
178
215
7-2d Arson
181
7-2e Hacking
181
7-3 Crimes Committed by Business
182
Chapter 9 Negligence, Strict Liability,
7-3a Making False Statements
183
and Product Liability 217
7-3b Workplace Crimes
183
9-1 Negligence
218
7-3c RICO
184
9-1a Duty of Due Care
219
7-3d Money Laundering
185
9-1b Breach of Duty
221
7-3e Hiring Illegal Workers
185
9-1c Causation
221
7-3f Foreign Corrupt Practices Act
185
9-1d Damages
225
7-3g Other Crimes
187
9-1e Defenses
225
7-3h Punishing a Corporation
187
9-2 Strict Liability and Product Liability
228
9-2a Strict Liability
228
Chapter Conclusion
188
9-2b Product Liability
230
Exam Review
188
9-2c Contemporary Trends
232
191
Case Questions
192
Chapter Conclusion
234
193
Exam Review
234
236
Case Questions
238
239
UNIT2
Torts 195
Chapter 10 Privacy and Internet Law 240
Chapter 8 Intentional Torts
10-1 Privacy in a Digital World
241
and Business Torts
196
10-1a How We Lose Our Privacy
8-1 Intentional Torts
198
in the Digital World

241
8-1a Defamation
198
10-2 The Law of Privacy
243
8-1b False Imprisonment
200
10-2a Constitutional Law: The Fourth
8-1c Intentional Infliction
Amendment 243
of Emotional Distress
200
10-2b Common Law: Privacy Torts
245
8-1d Battery and Assault
201
10-2c Privacy Statutes
247
8-1e Trespass, Conversion, and Fraud
202
10-2d European Privacy Law

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