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6 th E D I T I O N
6 th E D I T I O N
Business Law
Introduction To
Introduction To
Business Law Introduction To
Business
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INTRODUCTION TO
Business
Law
6 th E D I T I O N
Jeffrey F. Beatty
Boston University
Susan S. Samuelson
Boston University
Patricia Sánchez Abril
University of Miami
Australia • Brazil • Mexico • Singapore • United Kingdom • United States
04341_fm_hr_i-xxii.indd 1 10/6/17 11:39 AM

Introduction to Business Law, 6th Edition © 2019, 2016 Cengage Learning, Inc.®
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Printed in the United States of America

Print Number: 01 Print Year: 2017

C ontent s : Ov erv ie w
Preface xv U nit 5
The Lifecycle of a Business 377
20 Starting a Business: LLCs and Other Options 378
UNIT 1 21 Corporations 398
The Legal Environment 1 22 Bankruptcy 420
1 Introduction to Law 2
2 Ethics and Corporate Social Responsibility 15
3 International Law 39 UNIT 6
4 Constitutional, Statutory, Administrative,
and Common Law 58 Government Regulation 439
5 Dispute Resolution 79
23 Securities and Antitrust 440
6 Crime 101
24 Consumer Protection 460
25 Environmental Law 482
26 Accountants’ Liability 501
U nit 2
Torts121
UNIT 7
7 Intentional Torts and Business Torts 122
8 Negligence, Strict Liability, and Product Property519
Liability137
9 Privacy and Internet Law 156 27 Intellectual Property 520
28 Real Property and Landlord–Tenant Law 538
29 Personal Property and Bailment 560
30 Estate Planning 576
UNIT 3 31 Insurance 593
Contracts and the UCC 177 Appendix A
The Constitution of the United States A1
10 Forming a Contract 178
11 Requirements for a Contract 198 Appendix B
12 Performance of a Contract 220 Uniform Commercial Code B1
13 Practical Contracts 242
14 Sales 261 Appendix C
15 Negotiable Instruments 278 Answers to Selected End-of-Chapter Questions C1
16 Secured Transactions 295
GlossaryG1
Table of Cases T1
U nit 4 Index I1
Agency and Employment Law 315
17 Agency 316
18 Employment and Labor Law 336
19 Employment Discrimination 356
iii


C ontent s
Preface xv 2-3i Euphemisms and Reframing 24

2-3j Lost in a Crowd 24
2-3k Short-Term Perspective 25
2-3l Blind Spots 25
UNIT 1 2-3m Lying: A Special Case 25
The Legal Environment 1 2-3n Ethics Case: Truth (?) in Borrowing 25
2-3o Avoiding Ethics Traps 26
Chapter 1 Introduction to Law2 2-3p Reacting to Unethical Behavior 27
1-1 Exploring the Law 3 2-4 Applying the Principles 27
1-1a Sources of Contemporary Law 3 2-4a Personal Ethics in the Workplace 27
1-1b Classifications of Law 6 2-4b Ethics Case: Weird Wierdsma 27
1-2 Working with the Book’s Features 7 2-4c The Organization’s Responsibility
1-2a Analyzing a Case 7 to Society 28
1-2b Analysis 8 2-4d Ethics Case: Up in Smoke 28
1-2c Exam Strategy 9 2-4e The Organization’s Responsibility to
1-2d You Be the Judge 9 Its Employees29
2-4f Ethics Case: The Storm after the Storm 29
Chapter Conclusion 10 2-4g The Organization’s Responsibility
Exam Review 11 to Its Customers 30
Matching Questions 12 2-4h Ethics Case: Mickey Weighs In 30
True/False Questions 12 2-4i The Organization’s Responsibility
Multiple-Choice Questions 12 to Overseas Workers 31
Case Questions 13 2-4j Ethics Case: A Worm in the Apple 31
Discussion Questions 14 2-4k Corporate Social Responsibility (CSR) 32
2-4l Ethics Case: The Beauty of a
Well-Fed Child 32
Chapter 2 Ethics and Corporate
Social Responsibility15 Chapter Conclusion 32
2-1 Why Study Ethics? 16 Exam Review 32
2-1a Ethics in Business 17 Matching Questions 34
2-1b Why Be Ethical? 17 True/False Questions 34
2-2 Theories of Ethics 18 Multiple-Choice Questions 35
2-2a Utilitarian Ethics 19 Case Questions 35
2-2b Deontological Ethics 19 Discussion Questions 37
2-2c Rawlsian Justice 20
2-2d Front Page Test 20 Chapter 3 International Law39
2-2e Moral Universalism and Relativism 20 3-1 International Law: Public versus Private 40
2-3 Ethics Traps 21 3-2 Actors in International Law 40
2-3a Money 21 3-2a The United Nations 40
2-3b Competition 22 3-2b The International Court of Justice 41
2-3c Rationalization 22 3-2c International Chamber of Commerce 41
2-3d We Can’t Be Objective about Ourselves 23 3-2d Sovereign Nations 41
2-3e Moral Licensing 23 3-3 The World’s Legal Systems 42
2-3f Conflicts of Interest 23 3-3a Common Law 42
2-3g Conformity 23 3-3b Civil Law 42
2-3h Following Orders 24 3-3c Islamic Law 43
v

vi C ontent s
3-4 Sources and Applicability 5-3 Trial 90

of International Law 44 5-3a Right to Jury Trial 91
3-4a Sources of International Law 44 5-3b Opening Statements 91
3-4b Interaction of Foreign and 5-3c Burden of Proof 91
Domestic Laws 49 5-3d Plaintiff’s Case 92
5-3e Defendant’s Case 92
Chapter Conclusion 52 5-3f Closing Argument 92
Exam Review 52 5-3g Verdict 93
Matching Questions 54 5-4 Appeals 93
True/False Questions 54 5-4a Appeal Court Options 93
Multiple-Choice Questions 55 5-5 Alternative Dispute Resolution 94
Case Questions 56 5-5a Mediation 94
Discussion Questions 56 5-5b Arbitration 94
Chapter Conclusion 95
Chapter 4 Constitutional, Statutory, Exam Review 95
Administrative, and Common Law58 Matching Questions 97
4-1 Constitutional Law 59 True/False Questions 97
4-1a Government Power 59 Multiple-Choice Questions 98
4-1b Power Granted 60 Case Questions 99
4-1c Protected Rights 63 Discussion Questions 100
4-1d Fifth Amendment: Due Process
and the Takings Clause64
4-1e Fourteenth Amendment: Equal
Chapter 6 Crime101
Protection Clause66 6-1 Criminal Procedure 102
4-2 Statutory Law 66 6-1a A Civil versus a Criminal Case 102
4-2a Committee Work 67 6-1b State of Mind 103
4-3 Common Law 68 6-1c Gathering Evidence:
4-3a Stare Decisis68 The Fourth Amendment 104
4-3b Bystander Cases 68 6-1d After Arrest 106
4-4 Administrative Law 70 6-2 Crimes That Harm Businesses
4-4a Rule Making 70 (and Their Customers) 109
4-4b Investigation 71 6-2a Larceny 109
4-4c Adjudication 71 6-2b Embezzlement 109
6-2c Fraud 109
Chapter Conclusion 73 6-2d Arson 111
Exam Review 73 6-2e Hacking 111
Matching Questions 75 6-3 Crimes Committed by Business 111
True/False Questions 75 6-3a Making False Statements 111
Multiple-Choice Questions 76 6-3b RICO 112
Case Questions 77 6-3c Money Laundering 112
Discussion Questions 77 6-3d Hiring Illegal Workers 113
6-3e Foreign Corrupt Practices Act 113
6-3f Punishing a Corporation 113
Chapter 5 Dispute Resolution79
5-1 Court Systems 80 Chapter Conclusion 114
5-1a State Courts 80 Exam Review 114
5-1b Federal Courts 83 Matching Questions 117
5-2 Litigation 84 True/False Questions 117
5-2a Pleadings 84 Multiple-Choice Questions 117
5-2b The Discovery Process 87 Case Questions 118
5-2c Summary Judgment 89 Discussion Questions 119

C ontent s vii
U nit 2 Chapter 9 Privacy and Internet Law 156

Torts121 9-1 Privacy in a Digital World 157
9-1a How We Lose Our Privacy
Chapter 7 Intentional Torts in the Digital World 157
and Business Torts122 9-2 The Law of Privacy 159
7-1 Intentional Torts 124 9-2a Constitutional Law:
7-1a Defamation 124 The Fourth Amendment 159
7-1b False Imprisonment 125 9-2b Common Law: Privacy Torts 161
7-1c Battery and Assault 125 9-2c Privacy Statutes 163
7-1d Fraud 126 9-3 Regulation in the Digital World 166
7-1e Intentional Infliction of Emotional 9-3a Regulation of User-Generated
Distress126 Content167
7-2 Damages 127 9-3b Online Speech 167
7-2a Compensatory Damages 127 9-3c Liability of Internet Service
7-2b Punitive Damages 129 Providers169
7-2c Tort Reform and the Exxon Valdez130 9-3d Consumer Protection 170
7-2d Business Torts 130
Chapter Conclusion 131 Exam Review 171
Exam Review 131 Multiple-Choice Questions 174
Matching Questions 133 Case Questions 175
True/False Questions 133 Discussion Questions 176
Multiple-Choice Questions 133
Case Questions 134
Discussion Questions 135
UNIT 3
Contracts and the UCC 177
Chapter 8 Negligence, Strict Liability,
and Product Liability137 Chapter 10 Forming a Contract 178
8-1 Negligence 138 10-1 Contracts 179
8-1a Duty of Due Care 139 10-1a Elements of a Contract 179
8-1b Special Duty: Landowners 140 10-1b Types of Contracts 180
8-1c Special Duty: Professionals 140 10-1c Sources of Contract Law 182
8-1d Breach of Duty 141 10-2 Enforcing Non-Contracts 183
8-1e Causation 141 10-2a Promissory Estoppel 184
8-1f Damages 144 10-2b Quasi-Contract 185
8-1g Defenses 145 10-3 Agreement 186
8-2 Strict Liability and Product Liability 146 10-3a Making an Offer 186
8-2a Strict Liability 146 10-3b Termination of Offers 188
8-2b Product Liability 147 10-3c Acceptance 190
8-2c Contemporary Trends 149 10-3d Communication of Acceptance 191
Chapter Conclusion 150 Chapter Conclusion 192

Exam Review 150 Exam Review 192
Matching Questions 152 Matching Questions 194
True/False Questions 152 True/False Questions 194
Multiple-Choice Questions 153 Multiple-Choice Questions 195
Case Questions 154 Case Questions 196
Discussion Questions 154 Discussion Questions 197

viii C ontent s
Chapter 11 Requirements for a Contract198 Matching Questions 237

11-1 Consideration 199 True/False Questions 237
11-1a What Is Value? 199 Multiple-Choice Questions 238
11-1b What Constitutes Exchange? 200 Case Questions 239
11-2 Legality 201 Discussion Questions 240
11-2a Non-compete Agreements: Sale of
a Business 201
11-2b Non-compete Agreements: Chapter 13 Practical Contracts242
Employment Contracts202 13-1 Creating a Contract 243
11-2c Exculpatory Clauses 203 13-1a The Lawyer 243
11-3 Capacity 205 13-1b Who Drafts the Contract? 244
11-3a Minors 205 13-1c Mistakes 244
11-3b Mentally Impaired Persons 206 13-2 The Structure of a Contract 249
11-3c Intoxication 206 13-2a Terms That Vary by Contract 249
11-4 Reality of Consent 206 13-2b Boilerplate 252
11-4a Fraud 206
11-4b Mistake 208 Chapter Conclusion 255
11-5 Contracts in Writing 209 Exam Review 256
11-5a Contracts That Must Be in Writing 210 Matching Questions 257
11-5b What the Writing Must Contain 212 True/False Questions 258
11-5c Sale of Goods 213 Multiple-Choice Questions 258
Case Questions 259
Chapter Conclusion 213 Discussion Questions 260
Exam Review 214
Matching Questions 215
True/False Questions 216 Chapter 14 Sales261
Multiple-Choice Questions 216 14-1 Sales 262
Case Questions 217 14-1a Development of the UCC 262
Discussion Questions 218 14-1b Contract Formation 263
14-1c Performance and Remedies 267
14-2 Warranties 268
Chapter 12 Performance of a Contract220 14-2a Express Warranties 268
12-1 Third Party Beneficiaries 221 14-2b Implied Warranties 269
12-1a Types of Beneficiaries 221
12-2 Assignment and Delegation 223 Chapter Conclusion 272
12-2a Assignment 223 Exam Review 272
12-2b Delegation of Duties 224 Matching Questions 274
12-3 Performance and Discharge 225 True/False Questions 274
12-3a Performance 225 Multiple-Choice Questions 275
12-3b Good Faith 227 Case Questions 276
12-3c Breach 228 Discussion Questions 277
12-3d Impossibility 228
12-4 Remedies 229
12-4a Expectation Interest 229 Chapter 15 Negotiable Instruments278
12-4b Reliance Interest 233 15-1 Negotiable Instruments 279
12-4c Restitution Interest 233 15-1a Commercial Paper 279
12-4d Other Equitable Interests 234 15-1b Types of Negotiable Instruments 279
12-4e Mitigation of Damages 235 15-1c Negotiation 280
15-2 Holder in Due Course 285
Chapter Conclusion 235 15-2a Requirements for Being a
Exam Review 235 Holder in Due Course 285

C ontent s ix
15-2b Defenses against a Holder in 17-1c Duties of Principals to Agents 320

Due Course 287 17-1d Terminating an Agency Relationship 321
15-2c Consumer Exception 288 17-2 Liability to Third Parties 321
17-2a Principal’s Liability for Contracts 321
Chapter Conclusion 289 17-2b Agent’s Liability for Contracts 322
Exam Review 289 17-2c Principal’s Liability for
Matching Questions 291 Negligent Physical Torts 324
True/False Questions 291 17-2d Principal’s Liability for Intentional
Multiple-Choice Questions 291 Physical Torts 328
Case Questions 292 17-2e Principal’s Liability for
Discussion Questions 293 Nonphysical Torts 328
17-2f Agent’s Liability for Torts 329
Chapter 16 Secured Transactions295 Chapter Conclusion 329

16-1 Article 9: Terms and Scope 296 Exam Review 329
16-1a Scope of Article 9 298 Matching Questions 332
16-2 Attachment of a Security Interest 298 True/False Questions 332
16-2a Agreement 298 Multiple-Choice Questions 332
16-2b Possession 299 Case Questions 334
16-2c Value 299 Discussion Questions 334
16-2d Debtor Rights in the Collateral 299
16-2e Attachment to Future Property 300
16-3 Perfection 300
Chapter 18 Employment and
16-3a Perfection by Filing 300
16-3b Perfection by Possession 302
Labor Law336
16-3c Perfection of Consumer Goods 302 18-1 Employment at Will 337
16-4 Protection of Buyers 304 18-2 Employment Security 337
16-4a Buyers in Ordinary Course 18-2a Common Law Protections 337
of Business 304 18-2b Family and Medical Leave Act 341
16-5 Priorities among Creditors 306 18-2c Whistleblowing 341
16-6 Default and Termination 307 18-3 Workplace Freedom and Safety 342
16-6a Default 307 18-3a Off-Duty Activities 342
16-6b Termination 309 18-3b The Right to Free Speech 343
18-3c Lie Detector Tests 344
Chapter Conclusion 310 18-3d OSHA 345
Exam Review 310 18-3e Employee Data 345
Matching Questions 311 18-3f Guns 345
True/False Questions 312 18-4 Financial Protection 346
Multiple-Choice Questions 312 18-4a Fair Labor Standards Act 346
Case Questions 313 18-4b Workers’ Compensation 346
Discussion Questions 314 18-4c Health Insurance 346
18-4d Social Security 346
18-5 Labor Unions 347
18-5a Organizing a Union 347
U nit 4 18-5b Collective Bargaining 348
Agency and Employment Law 315 18-5c Concerted Action 348
Chapter 17 Agency316 Chapter Conclusion 350

17-1 The Agency Relationship 317 Exam Review 350
17-1a Creating an Agency Relationship 317 Matching Questions 352
17-1b Duties of Agents to Principals 318 True/False Questions 352

x C ontent s
Multiple-Choice Questions 353 20-3 Limited Liability Companies 383

Case Questions 354 20-3a Limited Liability 383
Discussion Questions 355 20-3b Formation 384
20-3c Flexibility 385
Chapter 19 Employment 20-3d Transferability of Interests 385
20-3e Duration 385
Discrimination356
20-3f Going Public 386
19-1 Equal Pay Act of 1963 357 20-3g Piercing the Company Veil 386
19-2 The Civil Rights Act of 1964 357 20-3h Legal Uncertainty 387
19-2a Prohibited Activities 357 20-3i Choices: LLC versus Corporation 387
19-2b Religion 362 20-4 Social Enterprises 388
19-2c Family Responsibility 20-5 General Partnerships 388
Discrimination362 20-5a Tax Status 388
19-2d Sexual Orientation 362 20-5b Liability 388
19-2e Gender Identity and Expression 362 20-5c Formation 388
19-2f Immigration 363 20-5d Raising Capital 389
19-2g Reverse Discrimination 363 20-5e Management 389
19-2h Defenses to Charges of 20-5f Transfer of Ownership 389
Discrimination364 20-5g Terminating a Partnership:
19-3 Pregnancy Discrimination Act 365 Dissociation389
19-4 Age Discrimination 365 20-6 Limited Liability Partnerships 390
19-5 The Americans with Disabilities Act 366 20-7 Professional Corporations 390
19-5a The Hiring Process 367 20-8 Franchises 391
19-5b Relationship with a Disabled Person 367
19-5c Obesity 367 Chapter Conclusion 392
19-5d Mental Disabilities 367 Exam Review 392
19-6 Genetic Information Nondiscrimination Act 367 Matching Questions 393
19-7 Hiring Practices 368 True/False Questions 394
19-7a Interviews 368 Multiple-Choice Questions 394
19-7b Social Media 368 Case Questions 395
19-8 Enforcement 369 Discussion Questions 397
Exam Review 370 Chapter 21 Corporations398
21-1 Promoter’s Liability 399
True/False Questions 372
21-2 Incorporation Process 399
21-2a Where to Incorporate? 399
Case Questions 374
21-2b The Charter 400
21-3 After Incorporation 401
21-4 Death of the Corporation 402
21-4a Voluntary Termination by
the Shareholders 402
U nit 5 21-4b Termination by the State 403
The Lifecycle of a Business 377 21-4c Piercing the Corporate Veil 404
21-5 Management Duties 404
Chapter 20 Starting a Business: LLCs 21-5a The Business Judgment Rule 404
and Other Options378 21-5b Applications of the Business
20-1 Sole Proprietorships 379 Judgment Rule 406
20-2 Corporations 379 21-6 Shareholder Rights 408
20-2a Corporations in General 380 21-6a The Relationship between
20-2b Special Types of Corporations 382 Shareholders and Managers 408

C ontent s xi
21-6b Right to Information 408 23-1a What Is a Security? 441

21-6c Right to Vote 408 23-1b Securities Act of 1933 441
23-1c Securities Exchange Act of 1934 443
Chapter Conclusion 413 23-1d Insider Trading 445
Exam Review 413 23-1e Blue Sky Laws 448
Matching Questions 416 23-2 Antitrust 449
True/False Questions 417 23-2a The Sherman Act 449
Multiple-Choice Questions 417 23-2b The Clayton Act 452
Case Questions 418 23-2c The Robinson-Patman Act 453
Exam Review 453
Chapter 22 Bankruptcy420 Matching Questions 456
22-1 Overview of the Bankruptcy Code 421 True/False Questions 456
22-2 Chapter 7 Liquidation 422 Multiple-Choice Questions 457
22-2a Filing a Petition 422 Case Questions 458
22-2b Trustee 423 Discussion Questions 459
22-2c Creditors 423
22-2d Automatic Stay 423
Chapter 24 Consumer Protection460
22-2e Bankruptcy Estate 424
22-2f Payment of Claims 425 24-1 Introduction 461
22-2g Discharge 426 24-2 Sales 461
22-3 Chapter 11 Reorganization 429 24-2a Deceptive Acts or Practices 461
22-3a Debtor in Possession 430 24-2b Unfair Practices 462
22-3b Creditors’ Committee 430 24-2c Abusive Acts 462
22-3c Plan of Reorganization 430 24-2d Bait-and-Switch 462
22-3d Confirmation of the Plan 430 24-2e Merchandise Bought by
22-3e Discharge 430 Mail, by Telephone, or Online 463
22-3f Small-Business Bankruptcy 431 24-2f Telemarketing 463
22-4 Chapter 13 Consumer Reorganizations 431 24-2g Unordered Merchandise 464
22-4a Beginning a Chapter 13 Case 432 24-2h Door-to-Door Sales 464
22-4b Plan of Payment 432 24-3 Consumer Credit 464
22-4c Discharge 432 24-3a Payday Loans 465
24-3b Truth in Lending Act 465
Chapter Conclusion 432 24-3c Home Mortgage Loans 465
Exam Review 433 24-3d Plastic: Credit, Debit, and ATM Cards 466
Matching Questions 434 24-3e Electronic Fund Transfers 468
True/False Questions 434 24-3f Credit Reports 469
Multiple-Choice Questions 435 24-3g Debt Collection 470
Case Questions 436 24-3h Equal Credit Opportunity Act 472
Discussion Questions 437 24-4 Magnuson-Moss Warranty Act 473
24-5 Consumer Product Safety 473

Exam Review 474
UNIT 6 Matching Questions 478
Government Regulation 439 True/False Questions 478
Chapter 23 Securities and Antitrust440 Case Questions 479
23-1 Securities Laws 441 Discussion Questions 480

xii C ontent s
Chapter 25 Environmental Law482 Matching Questions 515

25-1 Introduction 483 True/False Questions 515
25-2 Air Pollution 483 Multiple-Choice Questions 515
25-2a Clean Air Act 484 Case Questions 517
25-2b Climate Change 485 Discussion Questions 518
25-2c Automobile Pollution 487
25-3 Water Pollution: The Clean Water Act 487
25-3a Coverage 488 UNIT 7
25-3b Major Provisions 488
25-4 Waste Disposal 489
Property519
25-4a Resource Conservation and
Chapter 27 Intellectual Property520
Recovery Act 490
25-4b Superfund 490 27-1 Patents 521
25-5 Chemicals 491 27-1a Types of Patents 521
25-6 Natural Resources 492 27-1b Requirements for a Utility Patent 522
25-6a National Environmental Policy Act 492 27-1c Patent Application and Issuance 524
25-6b Endangered Species Act 493 27-1d Patent Infringement 525
27-1e International Patent Treaties 525
Chapter Conclusion 494 27-2 Copyrights 525
Exam Review 495 27-2a Copyright Term 527
Matching Questions 496 27-2b Copyright Infringement and
True/False Questions 497 Fair Use 527
Multiple-Choice Questions 497 27-2c The Digital Millennium
Case Questions 498 Copyright Act 528
Discussion Questions 499 27-3 Trademarks 528
27-3a Ownership and Registration 529
27-3b Valid Trademarks 529
27-3c Trademark Infringement 530
Chapter 26 Accountants’ Liability501
27-4 Trade Secrets 531
26-1 Introduction 502
26-1a Sarbanes-Oxley 502 Chapter Conclusion 533
26-1b Consolidation in the Accounting Exam Review 533
Profession503 Matching Questions 533
26-1c Audits 503 True/False Questions 533
26-2 Liability to Clients 505 Multiple-Choice Questions 534
26-2a Contract 505 Case Questions 535
26-2b Negligence 505 Discussion Questions 536
26-2c Common Law Fraud 506
26-2d Breach of Trust 506
26-3 Liability to Third Parties 506
26-3a Negligence 507 Chapter 28 Real Property
26-3b Fraud 508 and Landlord–Tenant Law538
26-3c Securities Act of 1933 508 28-1 Nature of Real Property 539
26-3d Securities Exchange Act of 1934 508 28-2 Concurrent Estates 539
26-4 Criminal Liability 510 28-2a Tenancy in Common 540
26-5 Other Accountant-Client Issues 511 28-2b Joint Tenancy 540
26-5a The Accountant-Client Relationship 511 28-3 Adverse Possession 541
26-5b Accountant-Client Privilege 511 28-3a Entry and Exclusive Possession 541
28-3b Open and Notorious Possession 541
Chapter Conclusion 512 28-3c A Claim Adverse or Hostile
Exam Review 512 to the Owner 541

C ontent s xiii
28-3d Continuous Possession Chapter 30 Estate Planning576

for the Statutory Period 541 30-1 Introduction 577
28-4 Land Use Regulation 543 30-1a Definitions 577
28-4a Nuisance Law 543 30-1b Purpose 577
28-4b Zoning 543 30-1c Probate Law 577
28-4c Eminent Domain 543 30-2 Wills 578
28-5 Landlord–Tenant Law 544 30-2a Requirements for a Valid Will 578
28-5a Types of Tenancy 545 30-2b Spouse’s Share 580
28-5b Landlord’s Duties 546 30-2c Children’s Share 580
28-5c Tenant’s Duties 548 30-2d Digital Assets 582
28-6 Change in the Parties 549 30-2e Amending a Will 583
28-6a Sale of the Property 550 30-2f Intestacy 583
28-6b Assignment and Sublease 550 30-2g Power of Attorney 583
28-7 Liability of Landlords and Tenants 550 30-2h Probate 583
28-7a Tenant’s Liability 550 30-2i Property Not Transferred by Will 584
28-7b Landlord’s Liability 551 30-2j Anatomical Gifts 584
28-7c Crime 551 30-2k End of Life Health Issues 584
30-3 Trusts 585
Chapter Conclusion 552 30-3a Advantages and Disadvantages 585
Exam Review 552 30-3b Types of Trusts 586
Matching Questions 555 30-3c Trust Administration 586
True/False Questions 555 30-3d A Trust’s Term 587
Case Questions 557 Chapter Conclusion 588
Discussion Questions 558 Exam Review 588
True/False Questions 590
Chapter 29 Personal Property Multiple-Choice Questions 590
and Bailment560 Case Questions 591
29-1 Acquiring Personal Property 561 Discussion Questions 592
29-1a Gifts 561
29-1b Found Property 564
29-2 Bailment 565 Chapter 31 Insurance593
29-2a Control 566 31-1 Introduction 594
29-2b Rights of the Bailee 567 31-2 Insurance Contract 595
29-2c Duties of the Bailee 567 31-2a Offer and Acceptance 595
29-2d Rights and Duties of 31-2b Limiting Claims by the Insured 595
the Bailor 568 31-2c Bad Faith by the Insurer 597
29-2e Liability for Defects 569 31-3 Types of Insurance 600
29-2f Common Carriers and 31-3a Property Insurance 600
Contract Carriers 569 31-3b Life Insurance 600
29-2g Innkeepers 569 31-3c Health Insurance 601
31-3d Disability Insurance 602
Chapter Conclusion 570 31-3e Liability Insurance 602
Exam Review 570 31-3f Automobile Insurance 603
True/False Questions 572 Chapter Conclusion 603
Multiple-Choice Questions 572 Exam Review 603
Case Questions 574 Matching Questions 605
Discussion Questions 575 True/False Questions 605

xiv C ontent s
Multiple-Choice Questions 605 Appendix C

Case Questions 607 Answers to Selected End-of-Chapter Questions C1
GlossaryG1
Appendix A
The Constitution of the United States A1 Table of Cases T1
Appendix B Index I1
Uniform Commercial Code B1

P re fa ce
NOTE FROM THE AUTHORS

Enhanced Digital Content—MindTap™
Our goal—and yours—is for the students to learn the material. With that singular goal in
mind, Cengage has created an extremely useful tool for both instructors and students.
MindTap™ is a fully online, highly personalized learning experience combining readings,
multimedia, activities, and assessments into a singular Learning Path. It integrates seamlessly
with Learning Management Systems. MindTap guides students through their course with
ease and engagement. Instructors can personalize the Learning Path by customizing Cengage
resources and adding their own content via apps that integrate with MindTap.
Our students who use MindTap are better prepared for, and earn better grades on, our
exams. We recognize that the online experience is as important to the students—and you—as
the book itself. Thus, unlike other texts, we (the authors) have reviewed every question in
the MindTap product to ensure that it meets the high standards of our book.
We have heard that business law instructors want to help students Prepare for class,
Engage with the course concepts to reinforce learning, Apply these concepts in real-world
scenarios, use legal reasoning and critical thinking to Analyze business law content, and
Evaluate real business scenarios and their legal implications.
Accordingly, our MindTap product provides a five-step Learning Path designed to meet
these critical needs while also allowing instructors to measure skills and outcomes with ease.
• Prepare—Interactive worksheets are designed to prepare students for classroom dis-
cussion by ensuring that they have read and understood the reading.
• Engage—Real-world videos with related questions help engage students by display-
ing the relevance of business law in everyday life.
• Apply—Brief hypothetical case scenarios help students practice spotting issues and
applying the law in the context of short factual scenarios.
• Analyze—Case-problem analysis promotes deeper critical thinking and legal rea-
soning by building on acquired knowledge. These exercises guide students step
by step through a case problem and then add in a critical thinking section based on
“What If the Facts Were Different?” In a new third section, a writing component
requires students to demonstrate their ability to forecast the legal implications of
real-world business scenarios.
• Evaluate—New business case activities develop students’ skills to apply critical
thinking and legal reasoning through relevant real-world business scenarios. These
exercises give students the opportunity to advocate, evaluate, and make a decision
through a variety of flexible assessment options including Discussion Questions,
Multiple-Choice Questions, Short-Answer Essays, Group Work, and Ethical Dilem-
mas. Whether you have a large class, small class, teach online or in a traditional class-
room setting, promote group work, or individual assignments, the MindTap Business
Cases offer a variety of activity types to complement and enhance how YOU teach.
xv

xvi P re face
Each and every item in the Learning Path is assignable and gradable. Thus instructors
have up-to-the-minute information on the class’ general understanding of concepts as well as
data on the performance of each individual student. Students also know where they stand—
both individually and compared to the highest performers in the class. Thus, both faculty
and students are less likely to face unpleasant surprises on exams.
MindTap also includes:
• Case Collection where instructors can find over 1,600 additional cases that were
included in several previous editions of all of the Cengage Business Law or Legal
Environment texts. These cases are searchable by name, year, state, and subject
matter.
• Adaptive Test Prep for students, where they can generate their own practice quizzes
with questions similar to those found on most exams.
To view a demo video and learn more about MindTap, please visit www.cengage.com/
mindtap.
The Beatty/Samuelson/Abril Difference

Our goal in writing this book was to capture the passion and excitement, the sheer enjoy-
ment, of the law. Business law is notoriously complex, and, as authors, we are obsessed
with accuracy. Yet this intriguing subject also abounds with human conflict and hard-earned
wisdom, forces that we wanted to use to make this book sparkle. Look, for example, at
Chapter 21 on corporations. A robust discussion of the nitty gritty of corporate governance is
enlivened by court cases featuring intense personal conflict.
Once we have the students’ attention, our goal is to provide the information they will
need as business people and as informed citizens. Of course, we present the theory of how
laws work, but we also explain when reality is different. To take some examples, traditionally
business law textbooks have simply taught students that shareholders elect the directors of
public companies. Even Executive MBA students rarely understand the reality of corporate
elections. But our book explains the complexity of corporate power. The practical contracts
chapter focuses not on the theory of contract law but on the real-life issues involved in mak-
ing an agreement: Do I need a lawyer? Should the contract be in writing? What happens if
the contract has an unclear provision or an important typo? What does all that boilerplate
mean anyway?
Nobel Laureate Paul Samuelson famously said, “Let those who will write the
nation’s laws, if I can write its textbooks.” As authors, we never forget the privilege—and
responsibility—of educating a generation of business law students. Our goal is to write a busi-
ness law text like no other—a book that is authoritative, realistic, and yet a pleasure to read.
Strong Narrative. The law is full of great stories, and we use them. It is easier to teach
students when they come to class curious and excited. Every chapter begins with a story
that is based in fact, to illustrate important issues. We also include stories in the body of the
chapters. Look at Chapter 5 on dispute resolution. No tedious list of next steps in litigation,
this chapter teaches the subject by tracking a double-indemnity lawsuit. An executive is
dead. Did he drown accidentally, obligating the insurance company to pay? Or did the busi-
nessman commit suicide, voiding the policy? Students follow the action from the discovery
of the body, through each step of the lawsuit, to the final appeal.
Student Reaction. Students have responded enthusiastically to our approach. One pro-
fessor asked a student to compare our book with the one that the class was then using. This
was the student’s reaction: “I really enjoy reading the [Beatty] textbook, and I have decided
that I will give you this memo ASAP, but I am keeping the book until Wednesday so that I
may continue reading. Thanks! :-)”

P re face xvii
This text has been used in courses for undergraduates, MBAs, and Executive MBAs,
with students ranging in age from 18 to 65. This book works, as some unsolicited comments
indicate:
From verified purchasers on Amazon:
• “If you have this textbook for your business law class, then you are in luck! This
is one of the best and most helpful textbooks that I have ever had the pleasure of
using. (I mostly just use my textbooks as a pillow.) I actually did enjoy reading this
and learning the material. The author breaks down the concepts so they are easy to
understand. Even if you hate law, if you put forth the effort to learn this, you should
have no trouble at all learning and understanding the concepts.”
• “I enjoyed this book so much that I will not be selling it back to the bookstore
(or anyone) because I know that I will use the book for years.”
From undergraduates:
• “This is the best textbook I have had in college, on any subject.”
• “The textbook is awesome. A lot of the time I read more than what is assigned—I
just don’t want to stop.”
• “I had no idea business law could be so interesting.”
From MBA students:
• “Actually enjoyed reading the text book, which is a rarity for me.”
• “The law textbook was excellent through and through.”
From a Fortune 500 vice president, enrolled in an Executive MBA program:
• “I really liked the chapters. They were crisp, organized, and current. The informa-
tion was easy to understand and enjoyable.”
From business law professors:
• “The clarity of presentation is superlative. I have never seen the complexity of con-
tract law made this readable.”
• “Until I read your book I never really understood UCC 2-207.”
• “With your book, we have great class discussions.”
From a state supreme court justice:
• “This book is a valuable blend of rich scholarship and easy readability. Students and
professors should rejoice with this publication.”
Current. This 6th edition contains more than 25 new cases. Most were reported within the
last two or three years, and many within the last 12 months. The law evolves continually, and
our willingness to toss out old cases and add important new ones ensures that this book—and
its readers—remain on the frontier of legal developments.
Authoritative. We insist, as you do, on a law book that is indisputably accurate. To highlight
the most important rules, we use bold print, and then follow with vivid examples written in
clear, forceful English. We cheerfully venture into contentious areas, relying on very recent
decisions. Can a Delaware court order the sale of a successful business? Is discrimination
based on sexual orientation legal? Is the list of names in a LinkedIn group a trade secret?
What are the limits to free speech on social media? Where there is doubt about the current
(or future) status of a doctrine, we say so. In areas of particularly heated debate, we footnote
our work. We want you to have absolute trust in this book.

xviii P re face
Humor. Throughout the text we use humor—judiciously—to lighten and enlighten. We

revere the law for its ancient traditions, its dazzling intricacy, and its relentless, though imper-
fect, attempt to give order and decency to our world. But because we are confident of our
respect for the law, we are not afraid to employ some levity, for the simple reason that humor
helps retention. Research shows that the funnier or more original the example, the longer
students will remember it. They are more likely to recall an intellectual property rule involv-
ing the copyrightability of yoga than a plain-vanilla example about a common widget.
Features
Each feature in this book is designed to meet an essential pedagogical goal. Here are some
of those goals and the matching feature.
Exam Strategy
GOAL: To help students learn more effectively and to prepare for exams. In developing this
feature, we asked ourselves: What do students want? The short answer is—a good grade in the
course. How many times a semester does a student ask you, “What can I do to study for the
exam?” We are happy to help them study and earn a good grade because that means that
they will also be learning.
About four times per chapter, we stop the action and give students a two-minute quiz. In
the body of the text, again in the end-of-chapter review, and also in the Instructor’s Manual,
we present a typical exam question. Here lies the innovation: We guide the student in analyz-
ing the issue. We teach the reader—over and over—how to approach a question: to start with
the overarching principle, examine the fine point raised in the question, apply the analysis
that courts use, and deduce the right answer. This skill is second nature to lawyers and teach-
ers, but not to students. Without practice, too many students panic, jumping at a convenient
answer, and leaving aside the tools they have spent the course acquiring. Let’s change that.
Students love the Exam Strategy feature.
You Be the Judge Cases

GOAL: Get them thinking independently. When reading case opinions, students tend to
accept the court’s “answer.” But we strive to challenge them beyond that. We want students
to think through problems and reach their own answers guided by sound logic and legal
knowledge. The You Be the Judge features are cases that provide the facts of the case and
conflicting appellate arguments. But the court’s decision appears only in the Instructor’s Man-
ual. Because students do not know the result, class discussions are more complex and lively.
Ethics
GOAL: Make ethics real. We include the latest research on ethical decision-making, such as
ethics traps (why people make decisions they know to be wrong).
End-of-Chapter Exam Review and Questions

GOAL: Encourage students to practice! At the end of the chapters, we provide a list of review
points and several additional Exam Strategy exercises. We also challenge the students with
20 or more problems—Matching, True or False, Multiple-Choice Questions, Case Questions,
and Discussion Questions. The questions include the following:
• You Be the Judge Writing Problem. Students are given appellate arguments on both
sides of the question and then must prepare a written opinion.
• Ethics. This question highlights the ethics issues of a dispute and calls upon the stu-
dent to formulate a specific, reasoned response.

P re face xix
• CPA Questions. For topics covered by the CPA exam, administered by the American
Institute of Certified Public Accountants, the Exam Review includes questions
from previous CPA exams.
Answers to the odd-numbered Matching, True or False, Multiple-Choice, and Case
Questions are available in Appendix C of the book.
Cases
GOAL: Bring case law alive. Each case begins with a summary of the facts and a state-
ment of the issue. Next comes a summary of the court’s opinion. We have written this
summary ourselves to make the judges’ reasoning accessible to all readers while retain-
ing the court’s focus and the decision’s impact. In the principal cases in each chapter, we
provide the state or federal citation, unless it is not available, in which case we use the
LEXIS and Westlaw citations.
Teaching Materials
For more information about any of these ancillaries, contact your Cengage Consultant, or visit
the Beatty Samuelson Abril Business Law website at www.cengagebrain.com.
MindTap. MindTap is a fully online, highly personalized learning experience combining

readings, multimedia, activities, and assessments into a singular Learning Path. Instructors
can personalize the Learning Path by customizing Cengage resources and adding their
own content via apps that integrate into the MindTap framework seamlessly with Learn-
ing Management Systems. To view a demo video and learn more about MindTap, please
visit www.cengage.com/mindtap.
Instructor’s Manual. The Instructor’s Manual, available on the Instructor’s Support Site
at www.cengagebrain.com, includes special features to enhance class discussion and student
progress:
• Answers to the You Be the Judge cases from the main part of the chapter and to the
Exam Review questions found at the end of each chapter.
• Current Focus. This feature offers updates of text material.
• Additional cases and examples.
• Exam Strategy Problems. If your students would like more of these problems, there
is an additional section of Exam Strategy problems in the Instructor’s Manual.
• Dialogues. These are a series of questions-and-answers on pivotal cases and topics.
The questions provide enough material to teach a full session. In a pinch, you
could walk into class with nothing but the manual and use the Dialogues to con-
duct an effective class.
• Action learning ideas. Interviews, quick research projects, drafting exercises, class-
room activities, and other suggested assignments get students out of their chairs and
into the diverse settings of business law.
Cengage Testing Powered by Cognero. Cognero is a flexible online system that allows
you to author, edit, and manage test bank content from multiple Cengage solutions; create
multiple test versions in an instant; and deliver tests from your LMS, your classroom, or
wherever you want.

xx P re face
PowerPoint Lecture Review Slides. PowerPoint slides are available for use by instruc-
tors for enhancing their lectures and to aid students in note taking. Download these slides
at www.cengagebrain.com.
Interaction with the Authors. This is our standard: Every professor who adopts this book
must have a superior experience. We are available to help in any way we can. Adopters of this
text often call or email us to ask questions, offer suggestions, share pedagogical concerns, or
inquire about ancillaries. One of the pleasures of writing this book has been this link to so
many colleagues around the country. We value those connections, are eager to respond, and
would be happy to hear from you.
Jeffrey F. Beatty
Susan S. Samuelson
Phone: (617) 353-2033
Email: ssamuels@bu.edu
Patricia Sánchez Abril
Phone: (305) 284-6999
Email: pabril@miami.edu
Acknowledgments
The list of people who have contributed helpful comments and suggestions for this book
is long. We are grateful to all of the reviewers and instructors from around the country who
have helped us refine this book through all of its editions.
ABOUT THE AUTHORS

Jeffrey F. Beatty (1948–2009) was an Associate Professor of Business Law at the Boston
University Questrom School of Business. After receiving his B.A. from Sarah Lawrence
and his J.D. from Boston University, he practiced with the Greater Boston Legal Services
representing indigent clients. At Boston University, he won the Metcalf Cup and Prize, the
university’s highest teaching award. Professor Beatty also wrote plays and television scripts
that were performed in Boston, London, and Amsterdam.
Susan S. Samuelson is a Professor of Business Law at the Boston University Questrom School
of Business. After earning her A.B. at Harvard University and her J.D. at Harvard Law School,
Professor Samuelson practiced with the firm of Choate, Hall and Stewart. She has written
many articles on legal issues for scholarly and popular journals, including the American Busi-
ness Law Journal, Ohio State Law Journal, Boston University Law Review, Harvard Journal on
Legislation, National Law Journal, Sloan Management Review, Inc. Magazine, and Boston Maga-
zine. At Boston University she won the Broderick Prize for excellence in teaching.

P re face xxi
Patricia Sánchez Abril is a Professor of Business Law and Vice Dean for Graduate Business
Programs and Executive Education at the University of Miami School of Business Adminis-
tration. Professor Abril’s research has appeared in the American Business Law Journal, Harvard
Journal of Law & Technology, Florida Law Review, Houston Law Review, Wake Forest Law Review,
and Columbia Business Law Journal, among other journals. In 2011, the American Business
Law Journal honored her with its Distinguished Junior Faculty Award, in recognition of
exceptional early career achievement. Her research has won the Outstanding Proceedings
competition at the annual conference of the Academy of Legal Studies in Business and has
twice earned the Hoeber Memorial Award for Excellence in Research. Professor Abril has
won awards for her teaching in both the undergraduate and graduate programs at the Uni-
versity of Miami.

To w.f.s., “the fountain from the
which my current runs”
s.s.s.
To a.f.a., with gratitude and love

p.s.a.

The Legal
Environment UNIT
04341_ch01_hr_001-014.indd 1 10/6/17 11:41 AM

1
CHAPTER
INTRODUCTION
TO LAW
The Pagans were a motorcycle gang with a reputation for violence. Two of its rougher
members, Rhino and Backdraft, entered a tavern called the Pub Zone, shoving their way
past the bouncer. The pair wore gang insignia, in violation of the bar’s rules. For a while,
all was quiet, as the two sipped drinks at the bar. Then they followed an innocent patron
toward the men’s room, and things happened fast.
“Wait a moment,” you may be thinking, “are we reading a chapter on business law or
one about biker crimes in a roadside tavern?” Both.
Law is powerful, essential, and fasci-
nating. We hope this book will persuade
you of all three ideas. Law can also be
Should a pub owner
surprising. Later in the chapter, we will pay money damages to the
return to the Pub Zone (with armed victim of gang violence?
guards) and follow Rhino and Backdraft
to the back of the pub. Yes, the pair
engaged in street crime, which is hardly a focus of this text. However, their criminal
acts will enable us to explore one of the law’s basic principles, negligence. Should a pub
owner pay money damages to the victim of gang violence? The owner herself did noth-
ing aggressive. Should she have prevented the harm? Does her failure to stop the assault
make her liable?
We place great demands on our courts, asking them to make our large, complex,
and sometimes violent society into a safer, fairer, more orderly place. The Pub Zone
case is a good example of how judges reason their way through the convoluted issues
involved. What began as a gang incident ends up as a matter of commercial liability. We
will traipse after Rhino and Backdraft because they have a lesson to teach anyone who
enters the world of business.
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Chapter 1 Introduction to Law 3
1-1 EXPLORING THE LAW

A driver is seriously injured in an automobile accident, and the jury concludes that the car
had a design defect. The jurors award her $29 million. A senior vice president congratulates
himself on a cagey stock purchase but is horrified to receive, not profits, but a prison sen-
tence. A homeless person, ordered by local police to stop panhandling, ambles into court and
walks out with an order permitting him to beg on the city’s streets. The strong hand of the
law touches us all. To understand something that powerful is itself power.
Suppose, some years after graduation, you are a mid-level manager at Sublime Corp.,
which manufactures and distributes video games. You are delighted with this important posi-
tion in an excellent company—and especially glad that you bring legal knowledge to the job.
Sarah, an expert at computer-generated imagery, complains that Rob, her boss, is constantly
touching her and making lewd comments. That is sexual harassment, and your knowledge
of employment law helps you respond promptly and carefully.
You have dinner with Jake, who has his own software company. Jake wants to manu-
facture an exciting new video game in cooperation with Sublime, but you are careful not
to create a binding deal (contract law). Jake mentions that a similar game is already on the
market. Do you have the right to market one like it? That answer you already know (intel-
lectual property law).
LuYu, your personnel manager, reports that a silicon chip worker often seems drowsy;
she suspects drug use. Does she have the right to test him (constitutional law and employment
law)? On the other hand, if she fails to test him, could Sublime Corp. be liable for any harm
the worker does (tort law and agency law)?
In a mere week, you might use your legal knowledge a dozen times, helping Sublime
to steer clear of countless dangers. During the coming year, you encounter many other legal
issues, and you and your corporation benefit from your skills.
It is not only as a corporate manager that you will confront the law. As a voter, investor,
juror, entrepreneur, and community member, you will influence and be affected by the law.
Whenever you take a stance about a legal issue, whether in the corporate office, the voting
booth, or as part of local community groups, you help to create the social fabric of our nation.
Your views are vital. This book will offer you knowledge and ideas from which to form and
continually reassess your legal opinions and values.
Law is also essential. Every society of which we have any historical record has had some
system of laws. Societies depend upon laws for safe communities, functioning economies,
and personal liberties. An easy way to gauge the importance of law is to glance through any
newspaper and read about nations that lack a strong system of justice. Notice that these coun-
tries cannot ensure physical safety and personal liberties. They also fail to offer economic
opportunity for most citizens. We may not always like the way our legal system works, but
we depend on it to keep our society functioning.
Law is intriguing. When the jury awarded $29 million against an auto manufacturer for
a defective car design, it certainly demonstrated the law’s power. But was the jury’s decision
right? Should a company have to pay that much for one car accident? Maybe the jury was
reacting emotionally. Or perhaps the anger caused by terrible trauma should be part of a court
case. These are not abstract speculations for philosophers. Verdicts such as this may cause
each of us to pay more for our next automobile. Then again, we may be driving safer cars.
1-1a Sources of Contemporary Law

It would be nice if we could look up “the law” in one book, memorize it, and then apply it.
But the law is not that simple. Principles and rules of law come from many different sources.
Why is this so?
04341_ch01_hr_001-014.indd 3 10/6/17 11:41 AM

4 Unit 1 The Legal Environment
We inherited a complex structure of laws from England. Additionally, ours is a nation born
in revolution and created, in large part, to protect the rights of its people from the government.
Our country’s Founders created a national government but insisted that the individual states
maintain control in many areas. As a result, each state has its own government with exclusive
Federalism power over many important areas of our lives. What the Founders created was federalism: a
A double-layered system of double-layered system of government, with the national government and state governments
government, with the national each exercising important but limited powers. To top it off, the Founders guaranteed many
and state governments each
rights to the people alone, ordering national and state governments to keep clear. They
exercising important but limited
powers
achieved all of this in one remarkable document: the United States Constitution.
United States Constitution

United States America’s greatest legal achievement was the writing of the United States Constitution in
Constitution 1787. It is the supreme law of the land, and any law that conflicts with it is void. This federal
The supreme law of the Constitution does three basic things. First, it establishes the national government of the
United States United States, with its three branches. Second, it creates a system of checks and balances
among the branches. And, third, the Constitution guarantees many basic rights to the Ameri-
can people.
Branches of Government. The Founders sought a division of government power. They
did not want all power centralized in a monarch or anyone else. And so the Constitution
divides legal authority into three pieces: legislative, executive, and judicial power.
Legislative power gives the ability to create new laws. In Article I, the Constitution gives
this power to the Congress, which is comprised of two chambers—a Senate and a House of
Representatives.
The House of Representatives has 435 voting members. A state’s voting power is based
on its population. States with large populations (Texas, California, Florida) send dozens of
representatives to the House, while sparsely populated states (Wyoming, North Dakota,
Delaware) send only one. The Senate has 100 voting members—two from each state.
Executive power is the authority to enforce laws. Article II of the Constitution establishes
the president as commander-in-chief of the armed forces and the head of the executive
branch of the federal government.
Judicial power gives the right to interpret laws and determine their validity. Article III places
the Supreme Court at the head of the judicial branch of the federal government. Interpretive
power is often underrated, but it is often as important at the ability to create laws in the first
place. For instance, the Supreme Court ruled that privacy provisions of the Constitution protect
a woman’s right to abortion, although neither the word “privacy” nor “abortion” appears in the
text of the Constitution.1 And at times, courts void laws altogether. For example, in 2016, the
Supreme Court struck down a Texas law regulating abortion clinics and the doctors who worked
in them. The Court found that those rules created an undue burden for Texas women by caus-
ing many clinics to close and making abortions unreasonably difficult to obtain.2
Checks and Balances. The authors of the Constitution were not content to divide gov-
ernment power three ways. They also wanted to give each part of the government the power
over the other two branches. Many people complain about “gridlock” in Washington, but the
government is sluggish by design. The Founders wanted to create a system that, without
broad agreement, would tend towards inaction. The president can veto congressional leg-
islation. Congress can impeach the president. The Supreme Court can void laws passed by
Congress. The president appoints judges to the federal courts, but these nominees do not
serve unless approved by the Senate.
Many of these checks and balances will be examined in more detail later in the text.
1Roe v. Wade, 410 U.S. 113 (1973).

2Whole Woman’s Health v. Hellerstedt, 136 S. Ct. 2292 (2016).
04341_ch01_hr_001-014.indd 4 10/6/17 11:41 AM

Fundamental Rights. The Constitution also grants many of our most basic liberties. For
the most part, those liberties are found in the amendments to the Constitution. The First
Amendment guarantees the rights of free speech, free press, and the free exercise of reli-
gion. The Fourth, Fifth, and Sixth Amendments protect the rights of any person accused of
a crime. Other amendments ensure that the government treats all people equally and that it
pays for any property it takes from a citizen.
By creating a limited government of three branches and guaranteeing basic liberties to
all citizens, the Constitution has become one of the most important documents ever written.
Statutes
The second important source of law is statutory law. The Constitution gave to the U.S. Congress
the power to pass laws on various subjects. These laws are called statutes, and they can cover Statute
absolutely any topic at all, so long as they do not violate the Constitution. A law passed by Congress
Almost all statutes are created by the same method. An idea for a new law—on taxes, or by a state legislature
health care, texting while driving, or anything else—is first proposed in the Congress. This
idea is called a bill. The House and Senate then independently vote on the bill. To pass
Congress, the bill must get approval from a simple majority of each of these chambers.
If Congress passes a bill, it goes to the White House. If the president signs it, a new stat-
ute is created. It is no longer a mere idea; it is the law of the land. If a president vetoes a bill,
it does not become a statute unless Congress overrides the veto. To do that, both the House
and the Senate must approve the bill by a two-thirds majority. At this point, it becomes a
statute without the president’s signature.
Common Law
Binding legal ideas often come from the courts. Judges generally follow precedent. When
courts decide a case, they tend to apply the same legal rules that other courts have used in
similar cases. The principle that precedent is binding on later cases is stare decisis, which means Stare decisis
“let the decision stand.” Stare decisis makes the law predictable, and this in turn enables busi- The principle that precedent
nesses and private citizens to plan intelligently. is binding on later cases
It is important to note that precedent is only binding on lower courts. If the Supreme
Court, for example, decided a case in one way in 1965, it is under no obligation to follow
precedent if the same issue arises in 2020.
Sometimes, this is quite beneficial. In 1896, the Supreme Court decided (unbelievably)
that segregation—separating people by race in schools, hotels, public transportation, and so
on—was legal. In 1954, on the exact same issue, the Court changed its mind.
In other circumstances, it is more difficult to see the value in breaking with an established rule.
Court Orders
Judges have the authority to issue court orders that place binding obligations on specific
people or companies. A court can both compel a party to and prohibit it from doing something.
An injunction is an example of court order. Injunctions can require people to do things, like
perform on a contract or remove a nuisance. A judge might also issue an injunction to stop a
salesperson from using his former company’s client list or prevent a counterfeiter from sell-
ing fake goods. Courts have the authority to imprison or fine those who violate their orders.
Administrative Law
In a society as large and complex as ours, the executive and legislative branches of
government cannot oversee all aspects of commerce. Congress passes statutes about
air safety, but U.S. senators do not stand around air traffic towers, serving coffee to
keep everyone awake. The executive branch establishes rules concerning how foreign
04341_ch01_hr_001-014.indd 5 10/6/17 11:41 AM

Senators do not stand nationals enter the United States, but presidents are reluctant to
sit on the dock of the bay, watching the ships come in. Adminis-
around air traffic towers, trative agencies do this day-to-day work.
Most government agencies are created by Congress. Familiar
serving coffee to keep examples include the Environmental Protection Agency (EPA), the
Securities and Exchange Commission (SEC), and the Internal Revenue
everyone awake. Service (IRS), whose feelings are hurt if it does not hear from you every
April 15. Agencies have the power to create laws called regulations.
1-1b Classifications of Law

We have seen where laws come from. Now we need to classify them. First, we will distin-
guish between criminal and civil law. Then we will take a look at the intersection between
law and morality.
Criminal and Civil Law

Criminal law It is a crime to embezzle money from an employer, to steal a car, and to sell cocaine. Criminal
Concerns behavior so threaten- law concerns behavior so threatening that society outlaws it altogether. Most criminal laws are
ing that society prohibits it
statutes, passed by Congress or a state legislature. The government itself prosecutes the
wrongdoer, regardless of what the bank president or car owner wants. A district attorney, paid
by the government, brings the case to court. The injured party, for example the owner of the
stolen car, is not in charge of the case, although she may appear as a witness. The government
will seek to punish the defendant with a prison sentence, a fine, or both. If there is a fine,
the money goes to the state, not to the injured party.
Civil law Civil law is different, and most of this book is about civil law. Civil law regulates the rights
Regulates the rights and duties and duties between parties. Tracy agrees in writing to lease you a 30,000-square-foot store in her
between parties shopping mall. She now has a legal duty to make the space available. But then another tenant
offers her more money, and she refuses to let you move in. Tracy has violated her duty, but she
has not committed a crime. The government will not prosecute the case. It is up to you to file a
civil lawsuit. Your case will be based on the common law of contracts. You will also seek equitable
relief—namely, an injunction ordering Tracy not to lease to anyone else. You should win the suit,
and you will get your injunction and some money damages. But Tracy will not go to jail.
Some conduct involves both civil and criminal law. Suppose Tracy is so upset over losing the
court case that she becomes drunk and causes a serious car accident. She has committed the crime
of driving while intoxicated, and the state will prosecute. Tracy may be fined or imprisoned. She
has also committed negligence, and the injured party will file a lawsuit against her, seeking money.
Law and Morality

Law is different from morality, yet the two are obviously linked. There are many instances
when the law duplicates what all of us would regard as a moral position. It is negligence to
text while driving, and few would dispute the moral value of that law. And similarly with con-
tract law: If the owner of land agrees in writing to sell property to a buyer at a stated price, the
seller must go through with the deal, and the legal outcome matches our moral expectations.
On the other hand, we have had laws that we now clearly regard as immoral. Seventy-
five years ago, a factory owner could legally fire a worker for any reason at all—including, for
example, her religion. It is immoral to fire a worker because she is Jewish—and today, the law
prohibits it. Finally, there are legal issues where the morality is not so clear. Suppose you serve
alcohol to a guest who becomes intoxicated and then causes an automobile accident, seriously
injuring a pedestrian. Should you, the social host, be liable? This is an issue of tort liability,
which we examine in Chapter 9. As with many topics in this book, the problem has no easy
answer. As you learn the law, you will have an opportunity to re-examine your own moral beliefs.
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One of the goals of Chapter 2, on ethics, is to offer you new tools for that task. But our ethics
discussion does not end there. Throughout the text, you will find ethics questions and features,
like the one that follows, which ask you to grapple with the moral dimensions of legal questions.
Ethics
The Colombian flower industry supplies 75 percent of all cut flowers sold in the United States
between Valentine’s Day and Mother’s Day.
Leo owns a flower company near Bogotá, Colombia. He pays his workers less than $1
per hour, a rate consistent with Colombian minimum wage laws. Colombian law does not
allow employees to work more than 56 hours per week, with various daily breaks. Employers
must give minimum wage employees one rest day per week or face penalties.
Leo’s employees anxiously await the busy season because it means overtime pay, which
is 25 percent over the base rate. Many count on this extra money for survival. Iris is one of
Leo’s most loyal and efficient employees. This year, Iris has a serious problem: Her daughter
needs a complicated surgery that will cost more than $300, which is more than Iris’s monthly
salary. If she does not pay for the surgery in advance, the girl will likely die. To raise this large
amount of money, Iris asks that Leo allow her to work 140 hours a week during high sea-
son—that is, 20-hour days, 7 days a week. She is willing to work through her breaks and give
up her rest day, working through her exhaustion.
What are Leo’s legal and moral obligations? What would you do?
1-2 orking with the Book’s

W
Features
In this section, we introduce a few of the book’s features and discuss how you can use them
effectively. We will start with cases.
1-2a Analyzing a Case

A law case is the decision a court has made in a civil lawsuit or criminal prosecution. Cases
are the heart of the law and an important part of this book. Reading them effectively takes
practice. This chapter’s opening scenario is fictional, but the following real case involves a
similar situation. Who can be held liable for the assault? Let’s see.
Kuehn v. Pub Zone

364 N.J. Super. 301
Superior Court of New Jersey, 2003
CASE SUMMARY
Facts: Maria Kerkoulas owned the Pub Zone bar. She any motorcycle gangs from entering the bar while wearing
knew that several motorcycle gangs frequented the tavern. “colors”; that is, insignia of their gangs. She believed that
From her own experience tending bar and conversations gangs without their colors were less prone to violence, and
with city police, she knew that some of the gangs, includ- experience proved her right.
ing the Pagans, were dangerous and prone to attack cus- Rhino, Backdraft, and several other Pagans, all wear-
tomers for no reason. Kerkoulas posted a sign prohibiting ing colors, pushed their way past the tavern’s bouncer and
04341_ch01_hr_001-014.indd 7 10/6/17 11:41 AM

approached the bar. Although Kerkoulas saw their colors, Decision: Yes, the Pub Zone had a duty to protect
she allowed them to stay for one drink. They later moved Kuehn. The decision is reversed, and the jury’s verdict
towards the back of the pub, and Kerkoulas believed they is reinstated.
were departing. In fact, they followed a customer named
Karl Kuehn to the men’s room, where, without any provo-
Reasoning: Whether a duty exists depends on the fore-
cation, they savagely beat him. Kuehn was knocked uncon-
seeability of the harm, its potential severity, and the defen-
scious and suffered brain hemorrhaging, disc herniation,
dant’s ability to prevent the injury. A court should also
and numerous fractures of facial bones. He was forced to
evaluate society’s interest in the dispute.
undergo various surgeries, including eye reconstruction.
A business owner generally has no duty to protect a
Although the government prosecuted Rhino and Back-
customer from acts of a third party unless experience sug-
draft for their vicious assault, our case does not concern that
gests that there is danger. However, if the owner could,
prosecution. Kuehn sued the Pub Zone, and that is the case
in fact, foresee injury, she is obligated to take reasonable
we will read. The jury awarded him $300,000 in damages.
safety precautions.
However, the trial court judge overruled the jury’s verdict.
Kerkoulas knew that the Pagans engaged in random
He granted a judgment for the Pub Zone, meaning that the
violence. She realized that when gang members entered
tavern owed nothing. The judge ruled that the pub’s owner
the pub, they endangered her customers. That is why she
could not have foreseen the attack on Kuehn and had no
prohibited bikers from wearing their colors—a reasonable
duty to protect him from an outlaw motorcycle gang. Kuehn
rule. Regrettably, the pub failed to enforce the rule. Pagans
appealed, and the appeals court’s decision follows.
were allowed to enter wearing their colors, and the pub did
Issue: Did the Pub Zone have a duty to protect Kuehn not call the police. The pub’s behavior was unreasonable,
from the Pagans’ attack? and it is liable to Kuehn.
1-2b Analysis
Plaintiff Let’s take it from the top. The case is called Kuehn v. Pub Zone. Karl Kuehn is the plaintiff, the
The person who is suing person who is suing. The Pub Zone is being sued and is called the defendant. In this example,
the plaintiff’s name happens to appear first, but that is not always true. When a defendant loses
Defendant
a trial and files an appeal, some courts reverse the names of the parties for the appeal case.
The person being sued
The next lines give the legal citation, which indicates where to find the case in a law
library or online.
The Facts section provides a background to the lawsuit, written by the authors of this
text. The court’s own explanation of the facts is often many pages long and may involve
complex matters irrelevant to the subject covered in this book, so we relate only what is
necessary. This section will usually include some mention of what happened at the trial court.
Lawsuits always begin in a trial court. The losing party often appeals to a court of appeals,
and it is usually an appeals court decision that we are reading. The trial judge ruled in favor
of Pub Zone, but in the appellate decision we are reading, Kuehn won.
The Issue section is very important. It tells you what the court had to decide—and why
you are reading the case.
The Decision section describes the court’s answer to the issue posed. A court’s decision
Holding is often referred to as its holding. The court rules that the Pub Zone did have a duty to
A court’s decision Kuehn. The court reverses the trial court’s decision, meaning it declares the lower court’s
ruling wrong and void. The judges reinstate the jury’s verdict. In other cases, an appellate
Reverse
To declare the lower court’s rul-
court may remand the case; that is, send it back down to the lower court for a new trial or
ing wrong and void some other action. If this court had agreed with the trial court’s decision, the judges would
have affirmed the lower court’s ruling, meaning to uphold it.
Remand The Reasoning section explains why the court reached its decision. The actual written
To send a case back down to a decision may be 3 paragraphs or 75 pages. Some judges offer us lucid prose, while others
lower court
seem intent on torturing the reader. Judges frequently digress and often discuss matters that
Affirm are irrelevant to the issue on which this text is focusing. For those reasons, we have taken
To uphold a lower court’s ruling the court’s explanation and cast it in our own words. If you are curious about the full opinion,
you can always look it up using the legal citation.
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Let us examine the reasoning. The court points out that a defendant is liable only if
he has a duty to the plaintiff. Whether there is such a duty depends on the foreseeability of
the injury and other factors. The judges are emphasizing that courts do not reach decisions
arbitrarily. They attempt to make thoughtful choices, consistent with earlier rulings, which
make good sense for the general public.
The court also points out what it is not deciding. The court is not declaring that all businesses
must guarantee the safety of their patrons against acts by third parties. If an owner had no reason
to foresee injury from a third party, the owner is probably not liable for such harm. However,
if experience indicated that the third party presented serious danger, the owner was obligated
to act reasonably. The judges note that Kerkoulas knew the Pagans could be violent and had
taken reasonable precautions by prohibiting gang colors. However, the pub failed to enforce its
sensible rule and failed even to telephone the police. By the very standard the pub had created,
its conduct was unreasonable. The court therefore concludes that the Pub Zone was liable for
the Pagans’ injury to Kuehn, and the judges reinstate the jury’s verdict for the injured man.
1-2c Exam Strategy

This feature gives you practice analyzing cases the way lawyers do—and the way you must
on tests. Law exams are different from most others because you must determine the issue
from the facts provided. Too frequently, students faced with a law exam forget that the ques-
tions relate to the issues in the text and those discussed in class. Understandably, students
new to law may focus on the wrong information in the problem or rely on material learned
elsewhere. The Exam Strategy feature teaches you to figure out exactly what issue is at stake,
and then analyze it in a logical, consistent manner. Here is an example relating to the element
of “duty,” which the court discussed in the Pub Zone case.
EXAMStrategy
Question: The Big Red Traveling (BRT) Carnival is in town. Tony arrives at 8:00 p.m.,
parks in the lot, and is robbed at gunpoint by a man who beats him and escapes with
his money. There are several police officers on the carnival grounds, but no officer is
in the parking lot at the time of the robbery. Tony sues, claiming that brighter lighting
and more police in the lot would have prevented the robbery. There has never before
been any violent crime—robbery, beating, or other incident—at any BRT Carnival. BRT
claims it had no duty to protect Tony from this harm. Who is likely to win?
Strategy: Begin by isolating the legal issue. What are the parties disputing? They are
debating whether BRT had a duty to protect Tony from an armed robbery committed
by a stranger. Now ask yourself: How do courts decide whether a business has a duty to
prevent this kind of harm? The Pub Zone case provides our answer. A business owner is
not an insurer of the visitor’s safety. The owner generally has no duty to protect a cus-
tomer from the criminal act of a third party unless the owner could foresee it is about to
happen. (In the Pub Zone case, the business owner knew of the gang’s violent history and
could have foreseen the assault.) Now apply that rule to the facts of this case.
Result: There has never been a violent attack of any kind at a BRT Carnival. BRT
cannot foresee this robbery, and has no duty to protect against it. The carnival wins.
1-2d You Be the Judge

Many cases involve difficult decisions for juries and judges. Often both parties have legiti-
mate, opposing arguments. Most chapters in this book will have a feature called “You Be the
Judge,” in which we present the facts of a case but not the court’s holding.
We offer you two opposing arguments based on the kinds of claims the lawyers made in
court. We leave it up to you to debate and decide which position is stronger or to add your
own arguments to those given.
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The following case is another negligence lawsuit, with issues that overlap those of the
Pub Zone case. This time the court confronts a fight in a hotel bar that caused a young man
permanent brain damage. The victim sued the owner of the hotel, claiming that its employ-
ees were partly responsible for the injuries—even though they did not participate in the
brawl. Could the hotel be held legally responsible? You be the judge.
You Be the Judge

Del Lago Partners, Inc. v. Smith
307 S.W. 3D 762
Supreme Court of Texas, 2010
Facts: It was late night at the Del Lago hotel bar. Bradley did not create the danger. Smith was a grown man who
Smith and forty of his closest fraternity brothers had been drank voluntarily and joined the fight knowing that he
partying there for hours. Around midnight, guests from was at risk for injury. The hotel did not owe a duty to
a wedding party made a rowdy entrance. One of Smith’s someone who engages in such reckless behavior. And let’s
friends brashly hit on a young woman in the wedding party, face it: Accidents happen, especially at a bar late at night.
infuriating her date. Verbal confrontations ensued. For the Moreover, a bar owner cannot possibly monitor the words
next 90 minutes, the fraternity members and the wedding exchanged between patrons that may lead to a fight.
party exchanged escalating curses and threats, while the bar- The law has developed sensibly. People are left to
tender looked on and served drinks. Until . . . the inevitable decide for themselves whether to jump into a dangerous
occurred. Punches were thrown. Before Smith knew it, some- situation. Smith made his decision, and Del Lago should
one placed him in a headlock and threw him against a wall. not be held accountable for his poor choices.
As dozens fought, the bar manager fumbled to call Argument for the Defendant-Appellee (Smith): Your
hotel security, but realized he did not even have the phone honors, Del Lago had a moral and legal duty to protect its
number. When security eventually arrived, the free-for-all guests from this obvious and imminent assault. When a
had ended . . . and Smith had suffered a fractured skull, business has knowledge of something that poses an unrea-
among other serious injuries. sonable risk of harm to its patrons, it has a duty to take rea-
Smith sued Del Lago for negligence. He argued that sonable action to reduce or eliminate that risk. The hotel
the hotel was liable because it knew that the brawl was knew that a fight was going to break out, and should have
imminent and could have easily prevented it by calling taken the proper precautions to protect guests from that
security or ejecting the angry drunks. The lower court foreseeable danger.
agreed. The hotel appealed. During the 90 minutes of escalating tensions, the bar
You Be the Judge: Did the hotel have a duty to protect Smith staff continued to serve alcohol, ignored the blatant risks, and
from imminent assault? did not even call security. When the bar staff finally decided
to call for help, they did not even have the number. It was
Argument for the Plaintiff-Appellant (Hotel): Your too little, too late. The establishment had already breached
honors, my client did nothing wrong. The Del Lago staff its duty of care to protect its guests from foreseeable harm.
Chapter Conclusion
We depend upon the law to give us a stable nation and economy, a fair society, a safe place to
live and work. But while law is a vital tool for crafting the society we want, there are no easy
answers about how to create it. In a democracy, we all participate in the crafting. Legal rules
control us, yet we create them. A working knowledge of the law can help build a successful
career—and a solid democracy.
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EXAM REVIEW
1. FEDERALISM Our federal system of government means that law comes from a
national government in Washington, D.C., and from 50 state governments.
2. SOURCES OF LAW The primary sources of contemporary law are:

• United States Constitution;
• Statutes, which are drafted by legislatures;
• Common law, which is the body of cases decided by judges as they follow earlier
cases, known as precedent;
• Court orders, in which a judge which place binding obligations on specific people
or companies; and
• Administrative law, which are the rules and decisions made by federal and state
administrative agencies.
3. CRIMINAL AND CIVIL LAW Criminal law concerns behavior so threaten-

ing to society that it is outlawed altogether. Civil law deals with duties and dis-
putes between parties, not outlawed behavior.
EXAMStrategy
Question: Bill and Diane are hiking in the woods. Diane walks down a hill to
fetch fresh water. Bill meets a stranger who introduces herself as Katrina. Bill
sells a kilo of cocaine to Katrina who then flashes a badge and mentions how
much she enjoys her job at the Drug Enforcement Agency. Diane, heading back
to camp with the water, meets Freddy, a motorist whose car has overheated.
Freddy is late for a meeting where he expects to make a $30 million profit; he’s
desperate for water for his car. He promises to pay Diane $500 tomorrow if she
will give him the pail of water, which she does. The next day, Bill is in jail, and
Freddy refuses to pay for Diane’s water. Explain the criminal law/civil law dis-
tinction and what it means to Bill and Diane. Who will do what to whom, with
what results?
Strategy: You are asked to distinguish between criminal and civil law. What is the
difference? Criminal law concerns behavior that threatens society and is therefore
outlawed. The government prosecutes the defendant. Civil law deals with the
rights and duties between parties. One party files a suit against the other. Apply
those different standards to these facts. (See the “Result” at the end of this Exam
Review section.)
3. Result: The government will prosecute Bill for dealing in drugs. If convicted, he will go
RESULTS
to prison. The government will take no interest in Diane’s dispute. However, if she chooses,
she may sue Freddy for $500, the amount he promised her for the water. In that civil law-
suit, a court will decide whether Freddy must pay what he promised; however, even if
Freddy loses, he will not go to jail.
04341_ch01_hr_001-014.indd 11 10/6/17 11:41 AM

MATCHING QUESTIONS
Match the following terms with their definitions:
___ A. Statute 1. Law created by judges

___B. Administrative agencies 2. Let the decision stand
___C. Common law 3. A law passed by Congress or a state legislature
___D. Stare decisis 4. The supreme law of the land
___E. United States Constitution 5. The IRS, the EPA, the FCC, the SEC
TRUE/FALSE QUESTIONS
Circle T for true or F for false:
1. T F The idea that current cases must be decided based on earlier cases is called
legal positivism.
2. T F Civil lawsuits are brought to court by the injured party, but criminal cases must
be prosecuted by the government.
3. T F Congress established the federal government by passing a series of statutes.
4. T F The federal government has three branches: executive, legislative, and

administrative.
5. T F Law is different from morality, but the two are closely linked.
MULTIPLE-CHOICE QUESTIONS
1. More U.S. law originates from one country than from any other. Which country?
(a) France
(b) England
(c) Germany
(d) Spain
(e) Canada
2. Under the United States Constitution, power that is not expressly given to the
federal government is retained by:
(a) the courts.
(b) the Congress.
(c) the Founders.
(d) the states and the people.
(e) international treaty.
04341_ch01_hr_001-014.indd 12 10/6/17 11:41 AM

3. Judges use precedent to create what kind of law?

(a) Common law
(b) Statutes
(c) National law
(d) Local law
(e) Empirical law
4. If Congress creates a new statute with the president’s support, it must pass the
idea by a _______________ majority vote in the House and the Senate. If the
president vetoes a proposed statute and the Congress wishes to pass it without his
support, the idea must pass by a _______________ majority vote in the House and
Senate.
(a) simple; simple
(b) simple; two-thirds
(c) simple; three-fourths
(d) two-thirds; three-fourths
5. What part of the Constitution addresses most basic liberties?
(a) Article I
(b) Article II
(c) Article III
(d) The Amendments
CASE QUESTIONS
1. Union organizers at a hospital wanted to distribute leaflets to potential union
members, but hospital rules prohibited leafleting in areas of patient care, hallways,
cafeterias, and any areas open to the public. The National Labor Relations Board
(NLRB) ruled that these restrictions violated the law and ordered the hospital to
permit the activities in the cafeteria and coffee shop. The NLRB cannot create
common law or statutory law. What kind of law was it creating?
2. The stock market crash of 1929 and the Great Depression that followed were
caused in part because so many investors blindly put their money into stocks they
knew nothing about. During the 1920s, it was often impossible for an investor to
find out what a corporation was planning to do with its money, who was running
the corporation, and many other vital facts. Congress responded by passing the
Securities Act of 1933, which required a corporation to divulge more information
about itself before it could seek money for a new stock issue. What kind of law did
Congress create? Explain the relationship between voters, Congress, and the law.
3. ETHICS The greatest of all Chinese lawgivers, Confucius, did not esteem writ-
ten laws. He believed that good rulers were the best guarantee of justice. Does our
legal system rely primarily on the rule of law or the rule of people? Which do you
instinctively trust more?
4. Lance, a hacker, stole 15,000 credit card numbers and sold them on the black mar-
ket, making millions. Police caught Lance, and two legal actions followed, one civil
and one criminal. Who will be responsible for bringing the civil case? What will
04341_ch01_hr_001-014.indd 13 10/6/17 11:41 AM

be the outcome if the jury believes that Lance was responsible for identity thefts?
Who will be responsible for bringing the criminal case? What will be the outcome
if the jury believes that Lance stole the numbers?
5. The father of an American woman killed in terrorist attacks in Paris sued Twitter,
Facebook, and YouTube, alleging the sites knowingly allowed terrorists to recruit
members, raise money, and spread extremist propaganda. The sites defended
themselves by saying that their policies prohibit terrorist recruitment and that,
when alerted to it, they quickly remove offending videos. What type of lawsuit is
this—criminal or civil? What responsibilities, if any, should social media sites have
for the spread of terrorism?
DISCUSSION QUESTIONS
1. Do you believe that there are too many lawsuits in the United States? If so, do you place
more blame for the problem on lawyers or on individuals who go to court? Is there any-
thing that would help the problem, or will we always have large numbers of lawsuits?
2. In the 1980s, the Supreme Court ruled that it is legal for protesters to burn the
American flag. This activity counts as free speech under the Constitution. If the
Court hears a new flag-burning case in this decade, should it consider changing its
ruling or should it follow precedent? Is following past precedent something that
seems sensible to you: always, usually, sometimes, rarely, or never?
3. When should a business be held legally responsible for customer safety? Consider
the following statements, and circle your opinion.
a. A business should keep customers safe from its own employees.
strongly agree agree neutral disagree strongly disagree
b. A business should keep customers safe from other customers.
c. A business should keep customers safe from themselves. (Example: an intoxi-
cated customer who can no longer walk straight)
d. A business should keep people outside its own establishment safe if it is rea-
sonable to do so.
4. In his most famous novel, The Red and the Black, the French author Stendhal (1783–
1842) wrote: “Prior to laws, what is natural is only the strength of the lion, or the
need of the creature suffering from hunger or cold, in short, need.” Do you agree
with Stendhal? Without laws, would society quickly crumble?
5. Should judges ignore their life experiences, political leanings, and feelings when
making judicial decisions? Do you think it is possible?
04341_ch01_hr_001-014.indd 14 10/6/17 11:41 AM

2
CHAPTER
ETHICS AND
CORPORATE
SOCIAL
RESPONSIBILITY
Eating is one of life’s most fundamental needs and greatest pleasures. Yet all around the
world many people go to bed hungry. Food companies have played an important role in
reducing hunger by producing vast quantities of food cheaply. So much food, so cheaply
that, in America, one in three adults and one in five chil-
Many processed food dren are obese. Some critics argue that food companies
bear responsibility for this overeating because they make
products are harmful their products too alluring. Many processed food products
calorie bombs. are harmful calorie bombs of fat, sugar, and salt which, in
excess, are linked to heart disease, diabetes, and cancer.
What obligation do food producers and restaurants have to their customers? Do any
of the following examples cross the line into unethical behavior?
1. Increasing addiction. Food with high levels of fat, sugar, and salt not only taste bet-
ter, they are also more addictive. Food producers hire neuroscientists who perform
MRIs on consumers to gauge the precise level of these ingredients that will create
the most powerful cravings, the so-called bliss point. For example, in some Prego
tomato sauces, sugar is the second-most-important ingredient after tomatoes.1
2. Increasing quantity. Food companies also work hard to create new categories of
products that increase the number of times a day that people eat and the amount
of calories in each session. For example, they have created a new category of food
that is meant to be more than a snack but less than a meal, such as Hot Pockets.
1To find nutritional information on this or other products, search the internet for the name of the product with the
word “nutrition.”
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But some versions of this product have more than 700 calories, which
would be a lot for lunch, never mind for just a snack.
3. Increasing calories. Uno Chicago Grill serves a macaroni and cheese
dish that, by itself, provides more than two-thirds of the calories that
a moderately active man should eat in one day, and almost three
times the amount of saturated fat. Should restaurants serve items
such as these? If they do, what disclosure should they make?
4. Targeting poorer countries. Because of health concerns, consumption
of sweetened soft drinks in the United States and other developed
countries is declining. In response, soda companies have dramatically
increased their marketing budgets in lower income countries, such as
Brazil and China. Much of this marketing focuses on children. These
countries struggle to provide health care to their populations even
without the additional burden that soft drinks create.
5. Funding dubious science. Both the soft drink and sugar industries gener-
ously fund scientific research. But studies they finance are much more
likely to find that there is no connection between sodas and weight gain.
2-1 Why Study Ethics?

This text, for the most part, covers legal ideas. The law dictates how a person must behave. This
Ethics chapter examines ethics, or how people should behave. Any choice about how a person should
How people should behave behave that is based on a sense of right and wrong is an ethics decision. This chapter will
explore ethics dilemmas that commonly arise in workplaces, and present tools for making
Ethics decision decisions when the law does not require or prohibit any particular choice.
Any choice about how a person Laws represent society’s view of basic ethics rules. And most people agree that certain
should behave that is based on activities such as murder, assault, and fraud are wrong. However, laws may permit behavior that
a sense of right and wrong some feel is wrong, and it may criminalize acts that some feel are right. For example, assisted sui-
cide is legal in a few states. Some people believe that it is wrong under all circumstances, while
others think that it is the right thing to do for someone suffering horribly from a terminal illness.
Life principles One goal of this chapter is for you to develop your own Life Principles. These principles
The rules by which you live are the rules by which you live your life. As we will see, research shows that people who think
your life about the right rules for living are less likely to do wrong.
How do you go about preparing a list of Life Principles? Think first of important catego-
ries. A list of Life Principles should include your rules on:
• Lying
• Stealing
• Cheating
• Applying the same or different standards at home and at work
• Your responsibility as a bystander when you see other people doing wrong or being harmed
Specific is better than general. Many people say, for example, that they will maintain a
healthy work/life balance, but such a vow is not as effective as promising to set aside certain
04341_ch02_hr_015-038.indd 16 10/6/17 11:44 AM

Chapter 2 Ethics and Corporate Social Responsibility 17
times each week for family activities. Another common Life Principle is “I will always put my
family first.” But what does that mean? You are willing to engage in unethical behavior at work
to make sure that you keep your job? Or live your life so that you serve as a good example?
Some Life Principles focus not so much on right versus wrong but rather serve as a gen-
eral guide for living a happier, more engaged life: I will keep promises, forgive those who
harm me, say “I’m sorry,” appreciate my blessings every day, understand the other person’s
point of view, try to say “yes” when asked for a favor.
It is important to think through your Life Principles now, so that you will be prepared
when facing ethics dilemmas in the future.
2-1a Ethics in Business

Nobel Prize-winning economist Milton Friedman famously argued that a corporate manager’s
primary responsibility is to the owners of the organization, that is, to shareholders. Unless the
owners explicitly provide otherwise, managers should make the company as profitable as
possible while also complying with the law.
Others have argued that corporations should instead consider all company stakeholders,
not just the shareholders. Stakeholders include employees, customers, and the communities
and countries in which a company operates. This choice can create an obligation to such
broad categories as “society” or “the environment.”
After 20 first-graders and 6 educators were shot to death at the Sandy Hook Elemen-
tary School in Newtown, Connecticut, General Electric Co. (GE) stopped lending funds to
shops that sell guns. GE headquarters were near Newtown, many of its employees lived in
the area, and some had children in the Sandy Hook School. GE was putting its employees
ahead of its investors.
As we will see in this chapter, managers face many choices in which the most profitable
option is not the most ethical choice. When profitability increases and, with it, a company’s
stock price, managers benefit because their compensation is often tied to corporate results,
either explicitly or through ownership of stock and options. That connection creates an incen-
tive to do the wrong thing.
Conversely, making the ethical choice will sometimes lead to a loss of profits or even one’s
job. For example, Hugh Aaron worked for a company that sold plastic materials.2 One of the
firm’s major clients hired a new purchasing agent who refused to buy any product unless
he was provided with expensive gifts, paid vacations, and prostitutes. When Aaron refused
to comply with these requests, the man bought from someone else. And that was that—the
two companies never did business again. Aaron did not regret his choice. He believed that
his and his employees’ self-respect was as important as profits.
2-1b Why Be Ethical?

Ethical conduct may not always be the most profitable, but it does generate a range of ben-
efits for employees, companies, and society.
Society as a Whole Benefits from Ethical Behavior

John Akers, the former chairman of IBM, argued that without ethical behavior, a society could
not be economically competitive:
Ethics and competitiveness are inseparable. We compete as a society. No society
anywhere will compete very long or successfully with people stabbing each other
2Virtually all of the examples in this chapter are true events involving real people. Only their first names
are used unless the individual has consented or the events are a matter of public record.
04341_ch02_hr_015-038.indd 17 10/6/17 11:44 AM

in the back; with people trying to steal from each other; with everything requiring
notarized confirmation because you can’t trust the other fellow; with every little
squabble ending in litigation; and with government writing reams of regulatory
legislation, tying business hand and foot to keep it honest. That is a recipe not
only for headaches in running a company, but for a nation to become wasteful,
inefficient, and noncompetitive. There is no escaping this fact: The greater the
measure of mutual trust and confidence in the ethics of a society, the greater its
economic strength.
In short, ethical behavior builds trust, which is important in all of our relationships. It is
the ingredient that allows us to live and work together happily. On this metric, business is
not doing well. A Gallup poll found that only 21 percent of Americans have “a great deal” or
“quite a lot” of confidence in big business.
Ethical Behavior Makes People Happier

What makes people happy? Being rich and famous? Or having good friends? In 1938,
researchers in Boston set out to answer these questions by studying the lives of a large
group of people over 75 years. This study revealed that the secret to long-term happiness is
having good relationships with a spouse, family, and friends. Other research has confirmed
that people who focus on good relationships are happier than those who rely on external
goals, such as money or fame, for satisfaction.
It is difficult to maintain good relationships while behaving unethically. Every business-
person has many opportunities to be dishonest. But each of us must ask ourselves: What kind
of relationships do we want to have? In what kind of world do we want to live?
Ethical Behavior Provides Financial Benefits

A company with a good reputation can pay employees less and charge consumers more. 3
Indeed, consumers even believe that food made by a trustworthy company has fewer calo-
ries than the same product made by a disreputable competitor.
Conversely, unethical behavior causes financial harm: Companies that are caught engag-
ing in socially irresponsible or illegal activities typically suffer a significant decline in stock
price. Unethical behavior can also cause other, subtler damage. In one survey, a majority of
those questioned said that they had witnessed unethical behavior in their workplace and that
this behavior had reduced productivity, job stability, and profits.
Although there is no guarantee that ethical behavior pays in the short or long run, there
is evidence that the ethical company is more likely to win financially. Ethical companies tend
to have a better reputation, more creative employees, and higher returns than those that
engage in wrongdoing.4
Once we decide that we want to behave ethically, how do we know what ethical behavior is?
2-2 Theories of Ethics

When making ethics decisions, people sometimes focus on the reason for the decision—they
want to do what is right. Thus, if they think it is wrong to lie, then they will tell the truth
no matter what the consequence. In other cases, people think about the outcome of their
actions. They will do whatever it takes to achieve the right result, no matter what. This
3Remi Trudel and June Cotte, “Does It Pay to Be Good?” Sloan Management Review, January 8, 2009.
4For sources, see “Ethics: A Basic Framework,” Harvard Business School case 9-307-059.
04341_ch02_hr_015-038.indd 18 10/6/17 11:44 AM

Chapter 2 Ethics and Corporate Social Responsibility 19
choice—between doing right and getting the right result—has been the subject of much
philosophical debate.
2-2a Utilitarian Ethics

In 1863, Englishman John Stuart Mill wrote Utilitarianism. To Mill, a correct decision was one
that maximizes overall happiness and minimizes overall pain, thereby producing the greatest net
benefit. As he put it, his goal was to produce the greatest good for the greatest number of people.
Risk management and cost–benefit analysis are examples of utilitarian business practices.
Suppose that an automobile manufacturer could add a device to its cars that would
reduce air pollution. As a result, the incidence of strokes and lung cancer would decline
dramatically, saving society hundreds of millions of dollars over the life of the cars. But by
charging a higher price to cover the cost of the device, the company would sell fewer cars and
shareholders would earn lower returns. A utilitarian would argue that, despite the decline in
profits, the company should install the device.
Consider this example that a student told us:
During college, I used drugs—some cocaine, but mostly prescription painkillers.
Things got pretty bad. At one point, I would wait outside emergency rooms hoping
to buy drugs from people who were leaving. But that was three years ago. I went
into rehab and have been clean ever since. I don’t even drink. I’ve applied for a
job, but the application asks if I have ever used drugs illegally. I am afraid that if
I tell the truth, I will never get a job. What should I say on the application?
A utilitarian would ask: What harm will be caused if she tells the truth? She will be less
likely to get that job, or maybe any job—a large and immediate harm. What if she lies? She
might argue that no harm would result because she is now clean, and her past drug addiction
will not have an adverse impact on her new employer.
Critics of utilitarianism argue that it is very difficult to measure utility accurately, at least
in the way that one would measure distance or the passage of time. The car company does
not really know how many lives will be saved or how much its profits will decline if the air-
pollution device is installed. It is also difficult to predict benefit and harm accurately. The
recovered drug addict may relapse, or her employer may find out about her lie. And, let’s
face it, not all lives are of equal value to us. If forced to make a choice, a parent might decide
to sacrifice ten strangers in exchange for his own child’s life.
Furthermore, a focus on outcome can justify some really terrible behavior. Suppose that
wealthy old Ebenezer has several chronic illnesses that cause him great suffering and pre-
vent him from doing any of the activities that once gave meaning to his life. Also, he is such
a nasty piece of work that everyone hates him. If he were to die, all his heirs would benefit
tremendously from the money that they inherited from him, including a disabled grandchild
who then could afford medical care that would improve his life dramatically. Would it be
ethical to kill Ebenezer?
2-2b Deontological Ethics

Proponents of deontological ethics believe that utilitarians have it all wrong and that the results
of a decision are not as important as the reason for making it. To a deontological thinker, the Deontological
ends do not justify the means. Rather, it is important to do the right thing, no matter the result. The duty to do the right thing,
The best-known proponent of the deontological model was the eighteenth-century regardless of the result
German philosopher Immanuel Kant. He believed in what he called the categorical imperative. Categorical imperative
He argued that you should not do something unless you would be willing to have everyone An act is only ethical if it would
else do it too. Applying this idea, he concluded that one should always tell the truth because, be acceptable for everyone to
if everyone lied, the world would become an awful place. Thus, Kant would say that the drug do the same thing.
user should tell the truth on job applications, even if that meant she would never get hired.
04341_ch02_hr_015-038.indd 19 10/6/17 11:44 AM

Kant also believed that human beings possess a unique dignity, and it is wrong to treat
them as commodities, even if such a decision maximizes overall happiness. Thus, Kant would
argue against killing Ebenezer, no matter how beneficial the result.
The problem with Kant is that the ends do matter. Yes, it is wrong to kill, but a country
might not survive unless it is willing to fight wars. Although many people disagree with some
of Kant’s specific ideas, most people acknowledge that a utilitarian approach is incomplete
and that winning in the end does not automatically make a decision right.
2-2c Rawlsian Justice

How did you manage to get into college or graduate school? Presumably some combina-
tion of talent, hard work, and support from family and friends was critical. Imagine that you
had been born into different circumstances—say, a country where the literacy rate is only
25 percent and almost all of the population lives in desperate poverty. Would you be reading
this book now? Most likely not. People are born with wildly different talents into very dif-
ferent circumstances, all of which dramatically affect their outcomes.
John Rawls was an American philosopher who referred to these circumstances into which
Life prospects we are born as life prospects. In his view, hard work certainly matters, but so does luck. Rawls
The circumstances into which argued that we should think about what rules for society we would propose if we faced a veil of
we are born ignorance. In other words, suppose that there is going to be a lottery tomorrow that would deter-
mine all our attributes. We could be a winner, ending up a hugely talented, healthy person in a
Veil of ignorance loving family, or we could be poor and chronically ill from a broken, abusive family in a violent
The rules for society that we neighborhood with deplorable schools and social services.
would propose if we did not
What type of society would we establish now if we did not know our life prospects
know how lucky we would be in
life’s lottery
after tomorrow’s lottery? First, we would design some form of a democratic system that
provided equal liberty to all and important rights such as freedom of speech and reli-
Difference principle
gion. Second, we would apply the difference principle. Under this principle, we would
Rawls’ suggestion that society
not plan a system in which everyone received an equal income because society is better
should reward behavior that off if people have an incentive to work hard. But we would reward the type of work that
provides the most benefit to the provides the most benefit to the community as a whole. We might decide, for example, to
community as a whole pay doctors more than baseball players. But maybe not all doctors—perhaps just the ones
who research cancer cures or provide care for the poor, not cosmetic surgeons operating
on the affluent.
Rawls argues that everyone should have the opportunity to earn great wealth so long as
the tax system provides enough revenue to provide decent health, education, and welfare
for all. In thinking about ethics decisions, it is worth remembering that many of us have been
winners in life’s lottery—and that the unlucky also deserve opportunities.
2-2d Front Page Test

When faced with a difficult decision, think about how you would feel if your actions went
viral—on YouTube, Facebook, or the front page of a national newspaper. Would that help
you decide what to do?
The Front Page test is not completely foolproof—there are times you might have legiti-
mate reasons to do something private. If you had helped a terminally ill person die, you might
not want everyone to know that you had done so, especially if you lived in a state where
assisted suicide is illegal.
2-2e Moral Universalism and Relativism

Moral universalism For many ethics dilemmas, reasonable people may well disagree about what is right. How-
A belief that some acts are ever, many people believe that some types of behavior are always right or always wrong,
always right or always wrong regardless of what others may think. This approach is called moral universalism. Alternatively,
04341_ch02_hr_015-038.indd 20 10/6/17 11:44 AM

Another random document with
no related content on Scribd:
— Lyöty on! — huudahti Mitja. — Seitonen pee'lle!
Myös se tapettiin.
— Lakatkaa, — sanoi äkkiä Kalganov.
— Pee'lle, pee'lle, — huusi Mitja kohottaen panoksensa joka kerta

kaksinkertaisiksi, mutta kaikki panoksensa hän menetti. Vain ruplan
panokset voittivat.
— Pee'lle! — kirkaisi Mitja kiihkoissaan.
— Kaksisataa menetit, herra. Panetko vielä kaksisataa? —

tiedusteli sohvalla istuva herra.
— Kuinka, olenko jo menettänyt kaksisataa? Siis vielä kaksisataa!

Kaikki- kaksisataa pee'lle! — Ja siepaten taskustaan rahat Mitja oli
heittämäisillään kaksisataa ruplaa rouvan päälle, kun Kalganov äkkiä
peitti sen kädellään:
— Riittää! —- huudahti hän heleällä äänellään.
— Mitä te nyt? — kääntyi Mitja häneen.
— Riittää, minä en tahdo! Ette pelaa enää.
— Miksi?
— Siksi vain. Antakaa palttua ja menkää pois pelistä, siinä se. En

anna teidän enempää pelata!
Mitja katsoi häneen hämmästyneenä.

— Heitä pois, Mitja, kenties hän on oikeassa, muutenkin olet
paljon menettänyt, lausui Grušenjka omituinen sävy äänessään.
Molemmat herrat nousivat äkkiä paikoltaan hirveän loukkaantuneen
näköisinä.
— Lasketko leikkiä, herra? — lausui pieni herra katsellen ankarasti

Kalganovia.
— Kuinka te uskallatte semmoista tehdä, herra! — karjaisi

Kalganoville myös herra Vrublevski.
— Ei saa, ei saa huutaa! — huudahti Grušenjka. — Voi, te

kalkkunakukot!
Mitja katseli heitä jokaista vuoroonsa; mutta jokin hämmästytti

häntä äkkiä Grušenjkan kasvoissa, ja samassa välähti jotakin aivan
uutta hänen mielessään, — omituinen uusi ajatus!
— Rouva Agrippina! — alkoi pieni herra aivan punaisena kiukusta,

mutta silloin Mitja äkkiä meni hänen luokseen ja löi häntä olalle.
— Jalosukuinen herra, kaksi sanaa.
— Mitä tahdotte?
— Toiseen huoneeseen, tuohon kamariin, sanon sinulle kaksi

hyvää sanaa, aivan parhaita, tulet olemaan tyytyväinen.
Pieni herra hämmästyi ja katsahti pelokkaasti Mitjaan. Kuitenkin

hän suostui aivan heti, mutta sillä nimenomaisella ehdolla, että
hänen mukaansa tulisi myös herra Vrublevski.
— Henkivartijako? Tulkoon hänkin, häntäkin tarvitaan! Hän onkin
ehdottomasti tarpeen! — huudahti Mitja. — Mars, herrat!
— Minne te? — kysyi Grušenjka levottomana.
— Tulemme tuossa tuokiossa takaisin, — vastasit Mitja.

Jonkinmoinen rohkeus, jonkinmoinen odottamaton reippaus loisti
hänen kasvoistaan; aivan toisen näköisenä hän oli tunti takaperin
astunut tähän huoneeseen. Hän vei herrat oikealla olevaan
huoneeseen, ei siihen isoon, johon oli kokoontumassa tyttöjen kuoro
ja jonne katettiin pöytää, vaan makuuhuoneeseen, jossa oli arkkuja,
matkalaukkuja ja kaksi isoa vuodetta, joissa kummassakin oli kasa
karttuunipäällyksisiä tyynyjä. Pienellä lautapöydällä aivan nurkassa
paloi kynttilä. Herra ja Mitja asettuivat tämän pikku pöydän ääreen
vastapäätä toisiaan ja pitkä herra Vrublevski heidän sivulleen kädet
selän takana. Herrat katselivat ankarina, mutta ilmeisesti uteliaina.
— Kuinka voin olla palvelukseksenne? — lepersi pieni herra.
— Tällä tavoin, herra, en rupea puhumaan pitkään: tuossa on

sinulle rahat, — hän veti esille setelinsä, — jos tahdot kolmetuhatta,
niin ota ja mene matkaasi.
Herra katseli tutkivasti, silmät selällään, hänen katseensa

suorastaan tunkeutui Mitjan kasvoihin.
— Kolmetuhatta, herra? — Hän ja Vrublevski katsahtivat toisiinsa.
— Kolme, herrat, kolme! Kuule, herra, minä näen, että sinä olet
järkevä mies. Ota kolmetuhatta ja korjaa luusi hiiteen ja ota myös
Vrublevski mukaasi — kuuletko? Mutta heti paikalla, tällä hetkellä, ja
ainaiseksi, ymmärrätkö, herra, ainaiseksi menet ulos juuri tästä
ovesta. Mitä sinulla siellä on: päällystakki, turkki? Minä kannan ne
sinulle ulos. Tällä sekunnilla valjastetaan sinulle kolmivaljakko ja —
terve menoa, herra! Mitä!
Mitja odotti vastausta varmana. Hän ei epäillyt. Jotakin tavattoman

päättäväistä välähti herran kasvoissa.
— Entä ruplat, herra?
— Ruplat maksetaan tällä tavoin, herra: viisisataa ruplaa heti

paikalla sinulle ajuria varten ja ennakkomaksuna, ja kaksituhatta
viisisataa huomenna kaupungissa — vannon kunniani kautta, sinä
saat ne, hankin ne vaikka maan alta! — huudahti Mitja.
Puolalaiset katsahtivat taas toisiinsa. Herran kasvot alkoivat

muuttua epäsuotuisaan suuntaan.
— Seitsemänsataa, seitsemänsataa eikä viisisataa heti, tällä

hetkellä käteen! — koroitti Mitja tarjoustaan tuntien, että asiat eivät
ole aivan oikein, — Mitä sinä, herra? Etkö usko? Eihän voi antaa
sinulle kaikkia kolmeatuhatta yhdellä kertaa. Jos annan, niin sinä
palaat jo huomenna hänen luokseen… Eikä minulla nyt olekaan
koko summaa, rahat ovat kaupungissa kotonani, — leperteli Mitja
alkaen pelätä ja lannistuen sikäli kuin itse puhui, — jumalauta ne
ovat siellä, piilossa…
Silmänräpäyksessä alkoi tavaton oman arvon tunto loistaa pienen

herran kasvoista.
— Etkö vielä tahtoisi mitä? — kysyi hän ivallisesti. — Hyi häpeä!

— Ja hän sylkäisi.
Herra Vrublevski sylkäisi myös.

— Senkö tähden sinä syljet, herra, — lausui Mitja kuin
epätoivoissaan, sillä hän ymmärsi, että kaikki oli lopussa, — senkö
tähden, että aiot nylkäistä Grušenjkalta enemmän. Salvokukkoja te
olette kumpikin, siinä se!
— Jestem do žywego dotknetym! [Minua on syvästi loukattu!] —

sanoi pieni herra tullen äkkiä punaiseksi kuin rapu ja lähti nopeasti
ulos huoneesta hirveästi pahastuneena, aivan kuin ei tahtoisi kuulla
mitään enää. Häntä seurasi huojuen Vrublevski, ja heidän jäljessään
kulki Mitja nolona ja masentuneena. Hän pelkäsi Grušenjkaa, hän
aavisti, että herra heti nostaa melun. Niin tapahtuikin. Herra astui
saliin ja asettui teatterimaisesti Grušenjkan eteen seisomaan.
— Pani Agrippina, jestem do žywego dotknetym! — huudahti hän,

mutta Grušenjka näytti äkkiä kadottaneen kokonaan
kärsivällisyytensä, aivan kuin olisi koskettu hänen kipeimpään
kohtaansa.
— Venäjää, puhu venäjää, ei sanaakaan puolaa! — huudahti

Grušenjka hänelle, — puhuithan ennen venäjää, et kai ole unohtanut
sitä viidessä vuodessa! — Hän tuli tulipunaiseksi vihasta.
— Rouva Agrippina…
— Minä olen Agrafena, minä olen Grušenjka, puhu venäjää tai en

tahdo ollenkaan kuunnella!
Herra alkoi puhua oman arvonsa tunnossa, ja puhuen

murteellisesti venäjää hän lausui nopeasti ja kopeasti:
— Rouva Agrafena, minä tulin tänne unhottaakseni entisen ja

antaakseni anteeksi sen, unohtaakseni, mitä on ollut ennen tätä
päivää…
— Kuinka antamaan anteeksi? Minulleko sinä tulit antamaan

anteeksi? — keskeytti Grušenjka ja hypähti paikaltaan.
— Aivan niin, rouva, minä en ole matalamielinen, vaan

jalomielinen.
Mutta minä olin hyvin hämmästynyt, kun näin sinun rakastajasi.
Herra Mitja tarjosi minulle tuossa huoneessa kolmeatuhatta, jotta
matkustaisin pois. Minä sylkäisin herralle vasten naamaa.
— Kuinka? Olisiko hän antanut sinulle rahaa minusta? — huudahti

Grušenjka hysteerisesti. — Onko se totta, Mitja? Kuinka sinä
uskalsit?
Olenko minä kauppatavaraa?
— Herra, herra, — rääkäisi Mitja, — hän on puhdas ja tahraton,

minä en koskaan ole ollut hänen rakastajansa! Sen sinä valehtelit…
— Kuinka sinä uskallat puolustaa minua hänen edessään? —

karjui Grušenjka. — En minä ollut puhdas siksi, että rakastin hyvettä,
enkä siksi, että olisin pelännyt Kuzjmaa, vaan jotta voisin olla ylpeä
hänen edessään ja sanoa häntä konnaksi, kun tapaan. Eikö hän
todellakaan ottanut sinulta rahoja?
— Otti kuin ottikin! — huudahti Mitja. — Mutta hän tahtoi kaikki

kolmetuhatta yht'aikaa, kun taas minä tarjosin hänelle vain
seitsemänsataa käsirahaa.
— No, selväähän se on: hän on kuullut, että minulla on rahoja, ja

siksi hän on tullut mennäkseen kanssani naimisiin!
— Rouva Agrippina, — huudahti herra, — minä olen ritari, minä
olen aatelismies enkä mikään lurjus! Tulin ottamaan sinut
puolisokseni, mutta näen uuden naisen, en entistä, vaan oikuttelijan
ja häpeämättömän.
— Korjaakin luusi sinne, mistä olet tullut! Jos käsken ajamaan

sinut heti pois, niin sinut ajetaan! — huudahti Grušenjka raivoissaan.
— Tyhmä, tyhmä olin, kun kiusasin itseäni viisi vuotta! Ja kiusasin
itseäni aivan tyhjän takia, kidutin itseäni vihapäissäni! Eikä tämä ole
ensinkään sama mies. Oliko hän tämmöinen? Tämähän lienee
hänen isänsä! Mistä sinä olet tilannut itsellesi tekotukan? Se toinen
oli kuin kotka, mutta tämä on ankka. Se toinen nauroi ja lauloi
minulle lauluja… Ja minä, minä vuodatin viisi vuotta kyyneliä, senkin
kirottu hölmö, kuinka alhainen ja häpyä vailla olenkaan!
Hän vaipui nojatuoliinsa ja peitti kasvonsa kämmeniinsä. Silloin

alkoi viereisestä huoneesta vasemmalta äkkiä kaikua sinne
lopultakin kerääntyneitten Mokrojen tyttöjen laulu, — reipas
tanssilaulu.
— Tuo on räyhäämistä! — karjaisi äkkiä herra Vrublevski.
— Isäntä, aja pois nuo häpeämättömät!
Isäntä, joka jo pitkän aikaa oli uteliaana kurkistellut ovesta, ilmestyi

heti huudon kuultuaan huoneeseen, sillä hän aavisti vieraitten
riitaantuneen.
— Mitä sinä huudat, kitasi revit! — kääntyi hän Vrublevskin

puoleen käsittämättömän epäkohteliaasti.
— Nauta! — huusi herra Vrublevski.

— Nautako? Entä mitä kortteja sinä äsken käytit pelissä? Minä
annoin sinulle korttipakan, mutta sinä pistit minun antamani kortit
piiloon! Sinä pelasit väärillä korteilla! Minä voin toimittaa sinut
korttien väärentämisestä Siperiaan, tiedätkö sen, sillä korttien
väärentäminen on samaa kuin paperien väärentäminen…
— Ja astuen sohvan luo hän pisti sormensa sohvan selkämyksen

ja sohvatyynyn väliin ja veti sieltä esille avaamattoman korttipakan.
— Siinä on minun korttipakkani aivan avaamatta! — Hän kohotti

sen korkealle ja näytti koko seuralle. — Minä näin tuolta, miten hän
pisti minun korttipakkani rakoon ja vaihtoi sijalle omansa. —
Sipuliherra sinä olet etkä mikään oikea herra!
— Minä taas näin, kuinka tämä herra kaksi kertaa petkutti pelissä,
— huudahti Kalganov.
— Ah, mikä häpeä, ah, mikä häpeä! — huudahti Grušenjka lyöden

käsiään yhteen ja punastui todellakin häpeästä. — Hyvä Jumala,
millaiseksi, millaiseksi mies on mennyt!
— Sitä minäkin ajattelin, — huudahti Mitja. Mutta hän ei ollut

ennättänyt tätä sanoa, kun herra Vrublevski nolostuneena ja
vimmastuneena kääntyi Grušenjkaan päin ja huusi uhaten tätä
nyrkillään:
— Yleinen haaska!
Tuskin oli hän ennättänyt tämän huudahtaa, kun Mitja hyökkäsi

hänen kimppuunsa, kietoi molemmat kätensä hänen ympärilleen,
nosti hänet ilmaan ja vei silmänräpäyksessä hänet salista oikealla
olevaan huoneeseen, jossa hän äsken juuri oli käynyt heidän
molempien kanssa.
— Minä panin hänet sinne lattialle! — ilmoitti hän palaten heti

takaisin ja läähättäen kiihtymyksestä, — tappelee, senkin lurjus, ei
se nyt tule sieltä!…
Hän sulki oven toisen puolikkaan ja pitäen toista avoinna hän

huusi pienelle herralle:
— Jalosukuinen herra, ettekö tekin haluaisi sinne? Przepraszam!

[Olkaa hyvä!]
— Isäkulta, Mitrij Fjodorovitš, — lausui Trifon Borisytš, — ota heiltä

pois ne rahat, jotka menetit heille pelissä. Nehän on itse asiassa
varastettu sinulta.
— Minä en halua ottaa pois viittäkymmentä ruplaani, — sanoi

yhtäkkiä
Kalganov.
— Enkä minä kahtasataani, en minäkään taho! — huudahti Mitja.

— En ota pois missään nimessä, jääkööt hänen lohdutuksekseen.
— Oikein, Mitja! Olet oiva mies, Mitja! — huudahti Grušenjka, ja

hirveän vihainen oli sävy hänen huudahduksessaan. Pieni herra,
joka oli kiukusta tulipunainen, mutta ei vähääkään ollut menettänyt
mahtipontisuudestaan, oli menossa ovelle, mutta pysähtyi ja lausui
yhtäkkiä kääntyen Grušenjkan puoleen:
— Rouva, jos tahdot tulla kanssani, niin lähtekäämme, mutta jos

et, — niin hyvästi!
Ja arvokkaasti, paheksumisesta ja arvonsa tunnosta puhkuen hän
meni ulos ovesta. Sillä miehellä oli luonnetta: kaiken tapahtuneen
jälkeenkään hän ei vielä menettänyt toivoaan, että Grušenjka seuraa
häntä, — niin suuressa arvossa hän piti itseään. Mitja paiskasi oven
kiinni hänen jälkeensä.
— Lukitkaa heidät sinne, — sanoi Kalganov. Mutta lukko naksahti

heidän puolellaan, he olivat itse lukinneet oven.
— Oivallista! — huudahti Grušenjka taas vihaisesti ja

säälimättömästi.
— Oivallista! Menköön menojaan!
8.
Houre
Alkoivat miltei juomingit, kerrassaan komeat kekkerit. Grušenjka

huusi hermostuneena, että hänelle annettaisiin viiniä: »Tahdon
ryypätä, tahdon juoda itseni aivan juovuksiin, aivan niinkuin ennen,
muistatko, Mitja, muistatko, kuinka me täällä silloin teimme
tuttavuutta!» Mitja itse oli kuin kuumehoureissa ja aavisti
»onneansa». Grušenjka muuten lähetti hänet yhtä mittaa pois
läheisyydestään: »Mene, pidä hauskaa, sano heille, että tanssisivat,
että kaikki iloitsisivat, 'pyöri tupa, pyöri uuni', niinkuin silloin, niinkuin
silloin!» huuteli hän yhä. Hän oli hyvin innoissaan. Ja Mitja riensi
panemaan toimeen. Kuoro keräytyi viereiseen huoneeseen. Se
huone, jossa he olivat tähän saakka istuneet, oli kaiken lisäksi
ahdaskin, karttuuniverholla kahtia jaettu, ja täälläkin oli verhon
takana iso sänky paksuine höyhenpatjoineen ja
karttuunityynykasoineen. Kaikissa tämän talon neljässä »siistissä»
huoneessa oli sängyt. Grušenjka asettui aivan oven kohdalle. Mitja
siirsi hänelle siihen nojatuolin: aivan näin oli Grušenjka istunut myös
»silloin», sinä päivänä, jolloin he ensi kertaa pitivät täällä hauskaa, ja
tästä hän oli katsellut touhua ja tanssia. Samat tytöt olivat nyt
kerääntyneet kuin silloinkin. Juutalaiset viuluineen ja sitroineen olivat
myös saapuneet, ja lopulta saapui myös hartaasti odotettu viini- ja
herkkulähetys kolmivaljakolla. Mitja touhusi. Huoneeseen tuli
katselemaan syrjäisiäkin, talonpoikia ja eukkoja, jotka jo olivat olleet
makaamassa, mutta olivat heränneet ja vainusivat tavallisuudesta
poikkeavaa kestitystä, kuten kuukausi takaperin. Mitja tervehti ja
syleili tuttuja, tunnusteli ennen näkemiään kasvoja, availi pulloja ja
kaatoi kenelle vain sattui. Samppanjaa halusivat suuresti ainoastaan
tytöt, talonpojista oli mieluisampaa rommi ja konjakki ja varsinkin
kuuma toti. Mitja järjesti niin, että kaikille tytöille keitettiin suklaata, ja
määräsi, että kaiken yötä piti olla toiminnassa kolme teekeitintä, jotta
jokainen tulija saisi teetä ja totia: kestittäköön jokaista, joka sitä
haluaa. Sanalla sanoen, alkoi säädytön ja järjetön hummaus, mutta
Mitja oli kuin omassa elementissään, ja mitä päättömämmäksi kaikki
muuttui, sitä enemmän hän vilkastui. Jos niinä hetkinä joku
talonpoika olisi pyytänyt häneltä rahaa, niin hän heti olisi vetänyt
esille koko tukkunsa ja alkanut jaella oikealle ja vasemmalle aivan
laskematta. Tästäpä syystä, luultavasti hoidellakseen Mitjaa, hänen
ympärillään kieppui melkein myötäänsä isäntä, Trifon Borisytš, joka
nähtävästi oli jo päättänyt olla ensinkään käymättä makaamaan tänä
yönä, mutta joka kuitenkin joi vähän (hän nautti kaiken kaikkiaan
vain yhden lasin totia) ja valvoi valppaasti omalla tavallaan Mitjan
etuja. Niinä hetkinä, joina se oli tarpeellista, hän hillitsi häntä
ystävällisesti ja matelevasti ja sai hänet luopumaan aikeistaan, ei
sallinut hänen tarjoilla, niinkuin »silloin», moukille »sikareita ja
reiniläistä viiniä» eikä, Jumala siitä varjelkoon, rahoja, sekä paheksui
suuresti, kun tytöt joivat likööriä ja söivät konvehteja: »Täitä täynnä
ne vain ovat, Mitri Fjodorovitš», puhui hän, »minä töytäisen jokaista
heistä polvellani ja käsken heitä pitämään sitä vielä kunniana heille,
— sellaisia ne ovat!» Mitja mainitsi vielä kerran Andreista ja käski
lähettämään hänelle totia: »Minä loukkasin häntä äsken», toisti hän
heikontuneella ja liikutetulla äänellä. Kalganov ei ensin tahtonut
juoda, eikä tyttöjen kuoro häntä alussa kovinkaan miellyttänyt, mutta
juotuaan vielä kaksi pikaria samppanjaa hän tuli hirveän iloiseksi,
asteli huoneissa, nauroi ja kehui kaikkea ja kaikkia, sekä lauluja että
soittoa. Maksimov autuaana ja humalaisena pysytteli kaiken aikaa
hänen seurassaan. Grušenjka, joka myös oli alkanut humaltua,
osoitti Mitjalle Kalganovia: »Kuinka miellyttävä hän on, miten
ihastuttava poika!» Ja Mitja juoksi innoissaan suutelemaan
Kalganovia ja Maksimovia. Oi, hänellä oli paljon aavistuksia; ei
mitään sellaista ollut Grušenjka hänelle sanonut ja nähtävästi
tahallaan väittikin sanomasta, loi vain väliin häneen ystävällisen,
mutta tulisen silmäyksen. Viimein Grušenjka äkkiä tarttui lujasti
hänen käteensä ja veti hänet väkisin luokseen. Itse istui Grušenjka
silloin nojatuolissa oven luona.
— Kuinka sinä äsken astuitkaan tänne sisälle? Kuinka astuitkaan
sisälle!… Minä aivan pelästyin. Kuinka sinä tahdoit luovuttaa minut
hänelle, mitä? Tahdoitko todellakin?
— En tahtonut tuhota onneasi! — lepersi Mitja autuaana. Mutta

Grušenjka ei tarvinnut vastausta:
— No, mene… pidä hauskaa, — ajoi hän häntä taas luotaan, —

älä itke, kutsun sinua taas.
Ja Mitja riensi pois, mutta Grušenjka alkoi taas kuunnella lauluja ja

katsella tanssia seuraten katseellaan Mitjaa, missä tämä vain oli, ja
neljännestunnin kuluttua hän taas kutsui Mitjaa, joka heti riensi
hänen luokseen.
— No, istuudu nyt viereeni, kerro, kuinka sinä eilen sait tietää, että
minä olin tullut tänne; keneltä kuulit ensimmäiseksi?
Ja Mitja alkoi kertoa, katkonaisesti, sotkuisesti, kiihkeästi, mutta

hänen kertomuksensa oli kuitenkin omituinen, hän rypisti usein
yhtäkkiä kulmiaan ja katkaisi puheensa.
— Miksi sinä rypistät kulmakarvojasi? — kysyi Grušenjka.
— Ei se mitään… jätin sinne erään sairaan. Jos hän olisi tullut

terveeksi, jos tietäisin hänen tulevan terveeksi, niin antaisin heti
kymmenen vuotta elämästäni!
— No, mitäpä hänestä, jos hän on sairas. Aiotko sinä todellakin

huomenna ampua itsesi, kuinka tyhmä oletkaan, ja minkätähden?
Minä pidän semmoisista ajattelemattomista, niinkuin sinä olet, —
puhua lallatti Grušenjka hänelle jo hiukan kankealla kielellä, — sinä
olet siis valmis tekemään minun tähteni mitä tahansa? Eikö niin?
Aioitko sinä, tyhmyri, todellakin ampua itsesi huomenna! Ei,
odotahan vielä, huomenna minä kenties sanon sinulle yhden pikku
sanan… tänään en sano, vaan huomenna. Sinä kai tahtoisit tänään?
Ei, tänään minä en tahdo… No, mene, mene nyt, pidä hauskaa.
Kerran Grušenjka kuitenkin kutsui hänet luoksensa aivan kuin

ymmällä ollen ja huolestuneena.
— Minkätähden olet surullinen? Minä näen, että olet suruissasi…

Ei, kyllä minä näen, — lisäsi hän katsoen terävästi Mitjaa silmiin. —
Vaikka sinä tuolla suuteletkin talonpoikia ja huudat, niin minä näen
kuitenkin jotakin. Ei, pidä sinä hauskaa, minä olen iloinen ja ole
sinäkin… Minä rakastan erästä täällä, arvaa ketä?… Ai, katso:
minun poikani on nukahtanut, päihtyi sydänkäpynen.
Hän puhui Kalganovista: tämä oli todellakin päihtynyt ja

nukahtanut hetkiseksi sohvalle istualleen. Eikä hän ollut nukkunut
ainoastaan päihtymyksen takia, vaan hänen mielensä oli jostakin
syystä äkkiä tullut surulliseksi tai, kuten hän sanoi, »ikäväksi». Kovin
hänen mieltään masensivat lopulta tyttöjen laulutkin, jotka alkoivat
muuttua, sitä mukaa kuin juominki kehittyi, kovin rivoiksi ja
hillittömiksi. Ja samoin heidän tanssinsakin: kaksi tyttöä pukeutui
karhuiksi, ja Stepanida, reipas tyttö keppi kädessä, oli olevinaan
karhunkuljettaja ja alkoi näitä »näyttää». »Iloisemmin, Marja», huusi
hän, »muuten saat kepistä!» Karhut kaatuivat lopulta maahan perin
rivoon asentoon, ja paikalle sankkana joukkona kerääntyneet
kaikenlaiset talonpojat ja akat nauraa hohottivat kovasti. »Antaa
heidän, antaa heidän teuhata», puhui Grušenjka toimessaan,
kasvoissa autuas ilme, »kun sattuu jonkin kerran ilon päivä, niin
eivätkö ihmiset pitäisi hauskaa?» Kalganov sensijaan oli sen
näköinen, kuin hän olisi saanut likaa päälleen: »Sikamaisuutta se
kaikki on, tämä kansanomainen homma», huomautti hän mennen
pois, »nämä ovat heidän kevätleikkejään, kun he tallettavat auringon
koko kesäyöksi». Mutta erikoisen epämiellyttävä hänestä oli eräs
»uusi» laulu, jota laulettiin reippaalla tanssisävelellä ja jossa
puhuttiin siitä, kuinka herra ajeli ja kyseli tytöiltä:
Herra tutki tytöiltä, lempivätkö nuo vai ei.
Mutta tytöistä tuntui siltä, että ei voi rakastaa herraa:
Herralta vain selkään saan, enkä lemmi ollenkaan.
Sitten tuli ajaen mustalainen (äännettiin mustilainen) ja tämäkin
kysyi myöskin tytöiltä, lempivätkö nuo vai ei.
Mutta ei mustalaistakaan voi rakastaa,
mustilainen varastaa, tuota surra tyttö saa.
Ja paljon ajoi ohi tällä tavoin väkeä, joka kyseli tytöiltä näin,
muiden muassa sotamies:
Kysyi solttu tytöiltä,

lempivätkö nuo vai ei.
Mutta sotamies hylättiin halveksien:
Selässä on reppu vain enkä…
Tässä seurasi erittäin rivo säe, joka laulettiin aivan

kainostelematta ja herätti suurta riemastusta kuuntelevassa
yleisössä. Juttu päättyi viimein kauppiaaseen:
Kysyi myöskin kauppias, lempivätkö nuo vai ei.
Ja selville kävi, että he suuresti lempivät kauppiasta, koska, näet,
hän kun tekee kauppojaan, minä hallita vain saan.
Kalganov ihan suuttui:
— Se on aivan eilispäivän laulu, — huomautti hän ääneen, — ja

kuka niitä heille sepustaneekin! Puuttuu vain, että rautatieläinen tai
juutalainen ajaisi ohi ja kysyisi tytöiltä: nämä veisivät voiton kaikista.
Ja miltei loukkaantuneena hän samassa selitti, että hänen on ikävä,
istahti sohvaan ja vaipui äkkiä uneen. Hänen kauniit kasvonsa
kalpenivat hiukan ja painuivat sohvatyynyä vastaan.
— Katso, miten kaunis hän on! — sanoi Grušenjka taluttaen Mitjan

hänen luokseen, — minä kampasin äsken hänen hiuksiaan, tukka on
pehmoinen kuin pellava ja sakea…
Ja kumartuen ihastuneena hänen ylitseen Grušenjka suuteli

hänen otsaansa. Kalganov avasi heti silmänsä, katsahti häneen,
nousi seisomaan ja kysyi huolestuneen näköisenä: missä Maksimov
on?
— Kas, mitä hän kaipaa, — alkoi Grušenjka nauraa, — istuhan

kanssani hetkinen. Mitja, käväise etsimässä hänen Maksimovinsa.
Selville kävi, että Maksimov ei enää poistunut tyttöjen parista,

juoksi vain silloin tällöin kaatamassa itselleen likööriä ja oli juonut
suklaata kaksi kuppia. Hänen kasvonsa olivat tulleet punaisiksi, nenä
punoitti, silmät olivat tulleet kosteiksi ja imelän näköisiksi. Hän juoksi
luo ja ilmoitti tahtovansa heti »erään sävelaiheen» mukaan tanssia
sabotière-tanssin.
— Minua näet on lapsena opetettu tanssimaan kaikkia noita
hienoja suuren maailman tansseja…
— No mene, mene hänen kanssaan, Mitja, minä katson täältä,

miten hän siellä tanssii.
— Ei, minäkin menen katsomaan, — huudahti Kalganov hyläten

perin naiivilla tavalla Grušenjkan ehdotuksen, että istuisi hänen
seurassaan. Ja kaikki lähtivät katsomaan. Maksimov tanssi
todellakin tanssinsa, mutta ei saanut erikoisesti ihastumaan juuri
muita kuin Mitjan. Koko tanssi oli vain jonkinmoista hyppelyä ja
jalkojen vääntämistä sivuille, jalkapohjat ylöspäin, ja joka
hyppäyksellä Maksimov löi kämmenellään jalkapohjiinsa. Kalganovia
se ei ollenkaan miellyttänyt, mutta Mitja suuteli tanssijaa.
— No, kiitoksia, olet ehkä väsynyt, mitä katselet tänne: tahdotko

konvehdin, vai mitä? Kenties tahdot sikarin?
— Savukkeen.
— Etkö tahdo ryypätä?
— Minä olen tässä juonut likööriä… Eikö teillä ole

suklaakonvehteja!
— Tuossa pöydällähän on kokonainen kuorma, valitse mieleisesi,

sinä kyyhkyssielu!
— Ei, minä tarkoitan sellaista, jossa olisi vaniljaa… vanhoille

ukoille… hihii!
— Ei, veliseni, aivan sellaisia ei ole.

— Kuulkaa! — sanoi ukko ja kumartui äkkiä aivan Mitjan korvan
luo. — Tuo tyttö tuossa, Marjuška, hihii! Kuinka minä voisin, jos se
käy päinsä, tutustua häneen, teidän hyvyytenne avulla…
— Kas vain, mitä mielesi tekee! Ei, veliseni, puhut joutavia.
— Enhän minä tee pahaa kenellekään, — kuiskasi Maksimov

alakuloisesti.
— No, hyvä on, hyvä on. Täällä, veliseni, vain juodaan ja

tanssitaan, mutta muuten, perhana vieköön! Odota… Syö aluksi,
Syö aluksi, syö, juo, riemuitse. Etkö tarvitse rahoja?
— Sitten myöhemmin ehkä, — hymyili Maksimov.
— Hyvä, hyvä…
Mitjan pää oli kuuma. Hän meni ulos eteisestä ylemmälle puiselle
parvekkeelle, joka pihan puolella reunusti osan koko rakennusta.
Raitis ilma virkisti häntä. Hän seisoi yksin pimeydessä, nurkassa, ja
tarttui äkkiä molemmin käsin päähänsä. Hänen eri suuntiin
hajaantuneet ajatuksensa yhtyivät äkkiä, eri tunteet sulivat yhteen, ja
kaikki oli selvää. Kauhea, peloittava selvyys! »Jos ampuu itsensä,
niin milloin sitten, jos ei nyt?» välähti hänen mielessään. »Kävisi
ottamassa pistolin, toisi sen tänne, ja tässä samassa likaisessa ja
pimeässä nurkassa tekisi lopun kaikesta.» Melkein minuutin hän
seisoi epäröiden. Äsken, kun hän kiiti tänne, seisoi hänen takanaan
häpeä, hänen tekemänsä, jo suoritettu varkaus ja tuo veri, veri!…
Mutta silloin oli helpompi, oi, helpompi! Silloinhan kaikki jo oli
lopussa: hän oli menettänyt Grušenjkan, luovuttanut hänet,
Grušenjka oli häneltä mennyttä, oli kadonnut, — oi, tuomio oli silloin
ollut hänelle helpompi, oli ainakin näyttänyt hänestä
välttämättömältä, ehdottomasti tarpeelliselta, sillä mikä syy hänellä
oli jäädä maailmaan? Mutta nyt? Oliko asia nyt sama kuin silloin?
Nyt oli ainakin yksi aave, hirvitys, hävinnyt: tuo Grušenjkan
»entinen», hänen kiistämätön, kohtalokas miehensä oli kadonnut
jäljettömiin. Peloittava aave oli äkkiä muuttunut niin pieneksi, niin
hullunkuriseksi; se oli kannettu käsillä makuuhuoneeseen ja pantu
lukon taakse. Se ei palaa koskaan. Grušenjkaa hävettää, ja hänen
silmistään hän jo näkee, ketä hän rakastaa. Mutta juuri nyt, kun voisi
elää… ei saakaan, ei saa elää, voi kirousta! »Jumala, herätä eloon
aidan luo kaadettu! Vie tämä kauhea kalkki pois minulta! Olethan
Sinä tehnyt ihmeitä, Jumala, samanlaisten syntisten takia kuin
minäkin! Mitäs, mitäs jos ukko onkin hengissä? Oi, silloin minä
poistan muun häpeän varjon, minä annan takaisin varastetut rahat,
minä toimitan ne takaisin, hankin vaikka maan alta… Häpeästä ei jää
jälkiä muualle kuin ainaiseksi minun sydämeeni! Mutta ei, ei, oi,
mahdottomia, halpamaisia haaveita! Voi kirousta!»
Mutta kuitenkin oli kuin jonkin valoisan toivon säde olisi välähtänyt
hänelle pimeydessä. Hän syöksyi paikaltaan ja riensi huoneisiin —
hänen luokseen, hänen luokseen taas, joka ainaiseksi oli hänen
kuningattarensa! »Eikö yksi tunti, yksi minuutti hänen rakkauttaan
maksa koko muuta elämää, vaikkapa häpeän tuskissa?» Tämä hurja
kysymys valtasi hänen sydämensä. »Hänen luokseen, vain hänen
luokseen, häntä tahdon nähdä ja kuulla ja olla mitään ajattelematta,
unohtaa kaikki, vaikkapa vain tämän yön ajaksi, tunniksi,
silmänräpäykseksi!» Aivan eteisen ovella, vielä parvekkeella, hän
töksähti isäntään Trifon Borisytšiin. Tämä näytti hänestä synkältä ja
huolestuneelta ja näytti olevan häntä etsimässä.
— Mitä sinä, Borisytš, etköhän etsinyt minua?

— En, en teitä, — sanoi isäntä aivan kuin olisi äkkiä ällistynyt. —
Mitäpä minä teitä etsisin? Entä te… missä te olitte?
— Miksi sinä olet niin ikävissäsi? Etköhän ole äkäinen? Odota,

kohta pääset nukkumaan… Paljonko kello on?
— Tulee jo kolme. Käynee neljättäkin.
— Me lopetamme, lopetamme.
— Hyvänen aika, ei se mitään. Miten paljon vain suvaitsette…
»Mikä häntä vaivaa?» ajatteli Mitja sivumennen ja juoksi

huoneeseen, missä tytöt tanssivat, mutta Grušenjka ei ollut siellä.
Sinisessä huoneessa hän ei myöskään ollut; Kalganov siellä
yksinään uinaili sohvalla. Mitja katsahti verhojen taakse — hän oli
siellä. Hän istui nurkassa, arkulla, ja nojaten käsiään ja päätään
vieressä seisovaan sänkyyn hän itki katkerasti, koetti kaikin voimin
pysyä lujana ja pidättää ääntään, ettei kuultaisi. Nähtyään Mitjan hän
viittasi tätä luokseen, ja kun tämä riensi luo, niin hän tarttui
voimakkaasti hänen käteensä.
— Mitja, Mitja, minähän rakastin häntä! — alkoi hän puhua hänelle

kuiskaten. — Rakastin häntä niin paljon, kaikki viisi vuotta, koko,
koko tämän ajan! Häntäkö minä rakastin vai ainoastaan vihaaniko?
Ei, häntä! Oh, häntä! Minähän valehtelen, että rakastin ainoastaan
vihaani enkä häntä! Mitja, minähän olin vain seitsemäntoistavuotias
silloin, hän oli silloin minulle niin ystävällinen, niin iloinen, lauloi
minulle lauluja… Tai ainakin näytti silloin minusta, tyttöhupakosta,
sellaiselta… Mutta nyt, hyvä Jumala, eihän tämä ole se sama, ei ole
ollenkaan hän. Eikä hän ole se kasvojensakaan puolesta, ei
ensinkään hän. Minä en tuntenutkaan häntä kasvoista. Tulin tänne

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

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Executive Product Director Business &

Senior Product Manager: Vicky True-Baker

Marketing Manager: Katie Jergens

Senior Content Project Manager: Kim Kusnerak

Senior Art Director: Bethany Bourgeois Student Edition:

Analyst: Jennifer Bowes Cengage

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Preface xv 2-3i Euphemisms and Reframing 24

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3-4 Sources and Applicability 5-3 Trial 90

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U nit 2 Chapter 9 Privacy and Internet Law 156

Chapter Conclusion 150 Chapter Conclusion 192

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Chapter 11 Requirements for a Contract198 Matching Questions 237

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15-2b Defenses against a Holder in 17-1c Duties of Principals to Agents 320

Chapter 16 Secured Transactions295 Chapter Conclusion 329

Chapter 17 Agency316 Chapter Conclusion 350

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Multiple-Choice Questions 353 20-3 Limited Liability Companies 383

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21-6b Right to Information 408 23-1a What Is a Security? 441

Chapter Conclusion 474

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Chapter 25 Environ­mental Law482 Matching Questions 515

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28-3d Continuous Possession Chapter 30 Estate Planning576

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Multiple-Choice Questions 605 Appendix C

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NOTE FROM THE AUTHORS

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The Beatty/Samuelson/Abril Difference

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Humor. Throughout the text we use humor—judiciously—to lighten and enlighten. We

You Be the Judge Cases

End-of-Chapter Exam Review and Questions

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MindTap. MindTap is a fully online, highly personalized learning experience combining

Executive Product Director Business &

Preface xv 2-3i Euphemisms and Reframing 24

3-4 Sources and Applicability 5-3 Trial 90

U nit 2 Chapter 9 Privacy and Internet Law 156

Chapter Conclusion 150 Chapter Conclusion 192

Chapter 11 Requirements for a Contract198 Matching Questions 237

15-2b Defenses against a Holder in 17-1c Duties of Principals to Agents 320

Chapter 16 Secured Transactions295 Chapter Conclusion 329

Chapter 17 Agency316 Chapter Conclusion 350

Multiple-Choice Questions 353 20-3 Limited Liability Companies 383

21-6b Right to Information 408 23-1a What Is a Security? 441

Chapter Conclusion 474

Chapter 25 Environmental Law482 Matching Questions 515

28-3d Continuous Possession Chapter 30 Estate Planning576

Multiple-Choice Questions 605 Appendix C

1-2 orking with the Book’s

4. T F The federal government has three branches: executive, legislative, and