Business Law: Principles, Cases, and Policy, Fifth Edition

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9780130915603: Business Law: Principles, Cases, and Policy, Fifth Edition

This classic book spans all topics covered in a legal environment course or a traditional business law course. It is extremely clear and well written, and contains numerous cases that illustrate legal principles in actual practice. The facts of the cases are summarized in the author's words followed by a significant excerpt from the court's opinion. Other key content in this edition includes: an exciting new chapter on technology law, an expanded discussion of requirements and output contracts of the Uniform Commercial Code, added coverage of government regulation of credit, a complete revision of the secured transactions material, new coverage of Uniform Prudent Investor Act, updated principal and income allocation material, expanded coverage of limited liability partnerships, updated corporations and securities regulation coverage, increased coverage of the rule of reason under the Sherman Act, and coverage of the new auditor independence rules.

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Business Law: Principles, Cases, and Policy, Fifth Edition, is a comprehensive introduction to the legal principles governing business, the legal system within which business operates, and the role of government in regulating business conduct.

Key Features

1. The text is designed to provide complete substantive business law coverage, coupled with the flexibility to adapt to the needs of many different educational institutions, their teachers, and students. Specifically, this text is written and organized not only to reinforce and supplement principles developed in the classroom, but also to permit teachers with limited lecture or class discussion time to cover topics through readings assigned from the text.

2. The organization of the book (59 chapters organized into 9 parts) leads the reader logically through each subject by starting with basic definitions, concepts, and principles. This approach minimizes confusion, allows the teacher to choose the level of coverage, and permits efficient coverage of detailed topics.

3. To enhance student understanding of complex topics, hypothetical examples and textual discussion of actual cases are used throughout the text to illustrate legal principles. In addition, the text explains not only the substance and derivation of legal rules, but also the rationale or policy behind them. The text also carefully defines and explains legal terminology. This approach promotes student understanding and retention of the legal concepts and principles.

4. The text also allows the teacher to pick and choose among a variety of topics to design a course, or courses, tailored to a particular curriculum and the needs of particular students.

New to This Edition

Since the publication of the fourth edition, significant changes have been made in many of the legal subjects covered in the text. This fifth edition incorporates those changes while retaining coverage of the fundamental rules and principles of business law. Specifically, this edition retains the overall organization, chapter format, and pedagogical features of the first four editions, and incorporates a number of important revisions and additions:

1. A new chapter has been added, entitled "Technology Law" (Chapter 59). This chapter includes revised and expanded intellectual property coverage (formerly in Chapter 34); and coverage of the following topics: computers and the law, and the Internet and E-commerce.

2. To reflect changes in the law since the fourth edition was written, many new topics are covered and many existing substantive law discussions have been revised and updated. Listed below are some of the important changes and additions:

  • Expanded discussion of requirements and output contracts under S2-306 of the Uniform Commercial Code (Chapter 16).
  • Expanded coverage of government regulation of credit (Chapter 28).
  • Expanded coverage of the Fair Debt Collection Practices Act (Chapter 29).
  • Complete revision of the secured transactions material to reflect changes made by the 2000 revision of Article 9 of the Uniform Commercial Code (Chapters 31-32).
  • New coverage of Uniform Prudent Investor Act (Chapter 39).
  • Rewritten principal and income allocation material based upon the Revised Uniform Principal and Income Act (1997)(Chapter 39).
  • Expanded coverage of limited liability partnerships based on the 1997 Limited Liability Partnership Amendments to the Revised Uniform Partnership Act (Chapter 43).
  • Updated corporations material reflecting recent amendments to the Revised Model Business Corporation Act (Chapters 45-48).
  • Revised and updated securities regulation coverage including discussion of: the relationship between federal and state securities regulation; amendments to the Foreign Corrupt Practices Act; the 1999 Organization for Economic Cooperation and Development Convention; new Rules l0b5-1 and l0b5S-2, adopted in 2000; and new Regulation FD, adopted in 2000 (Chapter 49).
  • Expanded coverage of the rule of reason under the Sherman Act (Chapter 51).
  • Expanded coverage of Employee Retirement Income Security Act (ERISA) (Chapter 53).
  • Expanded coverage of federal equal employment opportunity laws (Chapter 54).
  • Coverage of the new auditor independence rules, adopted by the Securities and Exchange Commission in 2001 (Chapter 56).

3. New cases—forty-nine new cases have been added to improve and update the case coverage. As a result, over one-fourth of the cases in the text are new to this edition.

4. Glossary—The glossary has been updated, revised and expanded to include new terms and additional cross references to definitions of related terms.

5. Statutory appendices—The statutory appendices have been thoroughly revised to include amendments to the Uniform Commercial Code through 2000, the Revised Uniform Partnership Act as amended in 1997, and amendments to the Revised Model Business Corporation Act (1984) through May 2001.

Content Features

Some of the unique or distinctive features of this text's coverage include the following:

1. Constitutional Framework of Government Regulation of Business: Chapter 4, The Constitution and Business Regulation, explains the constitutional framework of government regulation of business. This chapter provides the background for the detailed coverage of securities regulation, antitrust law, employment and labor law, and environmental law contained in Part Eight of the text (Government Regulation of Business, Chapters 49-55).

2. Property and the UCC: Chapter 6, Introduction to Property and the Uniform Commercial Code, discusses property and the Uniform Commercial Code (UCC), topics important to a complete understanding of the comprehensive contracts, sales, negotiable instruments, debtor-creditor, and property coverage in Parts Two through Six of the text (Chapters 7-39).

3. Careful Integration of Sales Contract Material: Coverage of Article 2 of the Uniform Commercial Code, governing contracts for the sale of goods, is carefully integrated into the basic contracts material (Chapters 7-15). This approach minimizes needless duplication in coverage, and compares and contrasts Code and common-law contracts principles on a topic-by-topic basis.

4. Tort Law Focus: Four separate chapters, Chapter 5, Tort Law; Chapter 20, Products Liability; Chapter 41, Agency and Torts; and Chapter 56, Accountants' Liability, focus on this important topic.

5. Extensive Consumer Protection Coverage: The text includes discussion of unconscionability and contracts of adhesion, fraud, warranty (including the Magrfuson-Moss Warranty Act), Federal Trade Commission holier in due course rule, Consumer Credit Protection Act, consumer bankruptcy under Chapters 7 and 13 of the Bankruptcy Code, warranty of habitability in residential leases, and consumer protection under the Federal Trade Commission Act.

6. CPA Examination Coverage: All topics tested on the Uniform Certified Public Accountants Examination are covered, including accountants' liability, insurance law, and principal and income allocation.

7. International Legal Problems: Chapter 58 is devoted to this important topic, and cases and textual discussions involving international issues are integrated throughout the text.

Pedagogical Aids

Each chapter begins with a listing of major topics and concludes with a summary of the principles covered in the chapter. Legal case excerpts are integrated into the chapters and questions and problems follow each chapter. Additional pedagogical aids include:

1. Cases are chosen to illustrate and reinforce legal concepts discussed in the text. Some cases supplement textual material by explaining or developing the history or rationale for a legal principle. Cases have been edited to retain the court's reasoning and policy and the court's application of its holding to the facts of the case. The facts are summarized in sufficient detail to give the reader a clear understanding of the events underlying the controversy. These features facilitate using the cases for class discussion and promote student understanding. The cases represent a mix of classic and recent cases and are drawn from both the state and federal court systems.

2. Within chapters, key terms and concepts are boldfaced where defined or first discussed and compiled in a list at the end of the chapter. In addition, key terms are defined in the author-prepared glossary that contains 1,178 entries and hundreds of definitional and statutory cross-references.

3. At the end of each chapter are a series of questions and problems. Some of the questions review the concepts discussed in the text, while others expand the focus to address related subjects or issues not covered in the text. In many instances, the questions are based on actual court cases.

4. A guide to reading the legal case excerpts presented in the text follows the preface.

5. Statutory appendices, a glossary, a table of cases, and a subject index are included at the end of the text.

Ancillary Package

To enhance student learning and to facilitate instruction, an expanded ancillary package is available.

1. Instructor's Manual. Prepared by the author and Christie L. Roszkowski, the completely revised and updated instructor's manual contains teaching outlines, briefs of cases included in the text, and discussion of questions and problems appearing at the end of each chapter.

2. Study Guide. Prepared by Gregory J. Naples of Marquette University, this completely revised study guide includes chapter outlines, chapter review tests, as well as other activity-based material.

3. Test Bank. Prepared by Gregory J. Naples of Marquette University, the test bank contains over 1,500 true/false, multiple choice, fill-in, and short answer questions correlated to each chapter in Business Law.

4. Business Law for the CPA Candidate (7th ed. 2001) Prepared by Mark E. Roszkowski, this volume contains a selection of questions from the Uniform CPA Examinations from 1974 through 1999. To obtain a copy of Business Law for the CPA Candidate, contact your local bookstore or write Stipes Publishing L.L.C. at 204 W. University Avenue, Champaign, IL 61820. Alternatively, you can call Stipes Publishing at (217) 356-8391 or fax them at (217) 356-5753.

Acknowledgments

As in previous editions, I have been assisted in this revision by contributing author Christie L. Roszkowski, Associate Professor of Business Law at Eastern Illinois University, who selected and edited many of the cases and drafted many discussion questions and text discussions. I also would like to thank Gregory J. Naples, Marquette University, who wrote the study guide and test bank. Finally, I would like to thank Carol Nelson, who, since June 1983, has expertly typed every draft of the text and the instructor's manual.

Mark E. Roszkowski

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