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QUANTIFYING AN ASSOCIATION TO PREDICT FUTURE
EVENTS
Chapter 12
Regression Analysis
Regression AnalysisA statistical technique to
quantify associations and
begin the process of
predicting future events
Linear Regression
Used to identify a relationship between a single independent
variable (x axis) and a single dependent variable (y axis) at the
interval or ratio level
If there is a linear relationship when these variables are graphed
you can use the slope of the line to tell you how much the
predicted value of the dependent variable changes when there is
a one unit change in the independent variable.
Linear Regression
Chart1151031264
Fetal weight at various levels of daily cigarette consumption
8.5
7.9
7
8.2
6.6
7.1
7.8
Sheet1number of cigarettesFetal weight at various levels of
daily cigarette consumption18.557.910738.2126.667.147.8
ResidualThe difference between where the data actually falls
and where the linear regression line predicts they will fall Also
called prediction errorLower residuals mean a better fit of the
prediction line and the data
*
Multiple Regression
Used when you wish to examine the relationship between
multiple independent variables (X1 , X2….) and an outcome of
interest (Y) at the interval or ratio level
Yi=a- b1 X1+ b2X2+e
a=constant, value when x=0
b= beta value
e=error term
X1 =number of cigarettes smoked each day
X2=diabetic status (yes/no)
Beta Values in Multiple RegressionBeta values are the rate of
change in the outcome variable (Y) for every one unit increase
in the independent variable holding the other independent
variables constantWhen beta value is positive there is an
increase in the outcome variable when this independent variable
is increasedWhen beta value is negative an
increase in the level of the independent
variable decreases the level of the
outcome variable.
Looking at Computer Output
R2
R Square tells you the percent of the variance in the dependent
or outcome variable that is explained in your regression model.
If R Square is 0.74 that means the variables you have included
in your regression model explain 74% of the variance in the
outcome you are studying. R Square always increases when
additional independent variables are included in the model even
if the added independent variables are not significant.
The adjusted R square is a more conservative estimate of the R
square and is a better option when a large number of
independent variables are included.
Standard Error of the EstimateTells you the average amount of
error there will be in the predicted outcome using your specific
regression model.
You would like to minimize this to make your prediction as
accurate as possible so the closer the standard error of the
estimate is to zero the better.
Determining Significance
It is a little trickier than previous tests but still has the same
underlying principals.
Look at your R Square and find the corresponding p value- is
that significant (<alpha)?
Then look at each of the independent variables for significance
as well. You can have a significant R Square with an
independent variable included that doesn’t add anything to your
model. Is the R Square change significant for each added
independent variable? If not, it means when you controll ed for
the other independent variables the insignificant variable no
longer added to the ability to predict the outcome.
The Beta value for each independent variable
Look at the column in SPSS for unstandardized coefficients and
you will see the beta coefficients for the independent variables
in the regression equation.
A one unit change in variable X1 will produce a change equal to
the beta for variable in the outcome variable. For example, a
beta for independent variable X1 is 2.3. That means for every
one unit increase in variable A that occurs, you would predict a
2.3 unit increase in your outcome variable when controlling
your other independent variables.
Logistic Regression
Examines the relationship
between multiple independent
variables with a dependent variable
that is binary (nominal or ordinal
with only two categories) such as yes/no, alive/dead.
Generates an odds ratio (OR) which is frequently helpful for
explaining results to the public. (It is just the probability of the
outcome occurring divided by the probability of the outcome
not occurring). We will discuss the OR further in the next
chapter.
Tests that Control for the Impact of More than One Independent
Variable on a Single Dependent Variable
*Multiple and logistic regression allow the researcher to
examine the effect of multiple independent variables on a single
dependent variable. For example, if the researcher believes that
maternal age and smoking both impact infant birth weight the
relationship between maternal age and infant birth weight can
be seen while controlling for the impact of smoking on infant
birth weight. Dependent VariableTestExampleYes/NoLogistic
RegressionAmong adolescents who attempt to commit suicide,
what is the relationship between alcohol consumption, age,
gender and risk of death? (independent variables alcohol
consumption, age, gender, dependent variable- death
(yes/no)Continuous VariableMultiple RegressionHow do parents
education level, income level and school district rank impact
fourth grade reading scores among impoverished children?
(independent variables- parents education level, income level,
and school district rank, dependent variable reading score at the
interval/ratio level)
AssignmentComplete chapter 12 exercises.Complete Research
application exercise
NANCY K.
KUBASEK
M. NEIL
BROWNE
BARTLEY A.
BRENNAN
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E I G H T H E D I T I O N
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Library of Congress Cataloging-in-Publication Data
Kubasek, Nancy K., author.
The legal environment of business : a critical thinking
approach / Nancy K. Kubasek,
Bartley A. Brennan, M. Neil Browne. — Eight edition.
pages cm
ISBN 978-0-13-407403-0 (alk. paper)
1. Industrial laws and legislation—United States. 2. Trade
regulation—United States.
3. Commercial law—United States. 4. Critical thinking. I.
Brennan, Bartley A., author.
II. Browne, M. Neil, author. III. Title.
KF1600.K83 2015a
346.7307—dc23
2015036209
10 9 8 7 6 5 4 3 2 1
ISBN 10: 0-13-407403-3
ISBN 13: 978-0-13-407403-0
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http://www.pearsoned.com/permissions/
To the numerous students who appreciate the importance of
developing their critical thinking skills for their personal
growth
and development.
NANCY K. KUBASEK AND M. NEIL BROWNE
To Sandra for everything.
BARTLEY A. BRENNAN
A01_KUBA4030_08_SE_FM.indd 3 19/11/15 2:58 pm
iv
Brief Contents
P A R T O N E
Introduction to the Law and the Legal Environment
of Business 1
1 Critical Thinking and Legal Reasoning 2
2 Introduction to Law and the Legal Environment of Business
17
3 The American Legal System 35
4 Alternative Tools of Dispute Resolution 76
5 Constitutional Principles 105
6 White-Collar Crime and the Business Community 145
7 Ethics, Social Responsibility, and the Business Manager 188
8 The International Legal Environment of Business 213
P A R T T W O
Private Law and the Legal Environment of Business 249
9 The Law of Contracts and Sales—I 250
10 The Law of Contracts and Sales—II 279
11 The Law of Torts 299
12 Product and Service Liability Law 332
13 Law of Property: Real and Personal 360
14 Intellectual Property 385
15 Agency Law 408
16 Law and Business Associations—I 432
17 Law and Business Associations—II 453
P A R T T H R E E
Public Law and the Legal Environment of Business 481
18 The Law of Administrative Agencies 482
19 The Employment Relationship and Immigration Laws 503
20 Laws Governing Labor–Management Relations 538
21 Employment Discrimination 569
22 Environmental Law 617
23 Rules Governing the Issuance and Trading of Securities 647
24 Antitrust Laws 699
25 Laws of Debtor–Creditor Relations and Consumer
Protection 741
APPENDIX A The Constitution of the United States 788
GLOSSARY 794
INDEX 808
A01_KUBA4030_08_SE_FM.indd 4 19/11/15 2:58 pm
v
Contents
v
PREFACE xvii
ACKNOWLEDGMENTS xxi
ABOUT THE AUTHORS xxiii
P A R T O N E
Introduction to the Law and the
Legal Environment of Business 1
1 Critical Thinking and Legal
Reasoning 2
The Importance of Critical Thinking 2
A Critical Thinking Model 4
United States of America v. Martha Stewart
and Peter Bacanovic 5
The Critical Thinking Steps 7
Facts 7
Issue 7
Reasons and Conclusion 7
Rules of Law 8
Ambiguity 8
Ethical Norms 9
Analogies 10
Missing Information 10
Using Critical Thinking to Make Legal
Reasoning Come Alive 11
Legal Reasoning 11
Applying the Critical Thinking
Approach 15
Assignment on the Internet 16
On the Internet 16
For Future Reading 16
2 Introduction to Law and the Legal
Environment of Business 17
Definition of the Legal Environment of
Business 18
Definition of Law and Jurisprudence 19
Natural Law School 20
Positivist School 21
Sociological School 21
American Realist School 22
Critical Legal Studies School 22
Feminist School 22
Law and Economics School 23
Sources of Law 23
The Legislature as a Source of Statutory
Law 23
The Judicial Branch as a Source of Case
Law 25
The Executive Branch as a Source of
Law 27
Administrative Agencies as a Source of
Law 27
Classifications of Law 27
Criminal Law and Civil Law 28
Public and Private Law 28
Substantive and Procedural Law 29
Cyberlaw 29
Global Dimensions of the Legal
Environment of Business 30
Summary 30
Review Questions 30
Review Problems 31
Case Problems 31
Thinking Critically about Relevant Legal
Issues 33
Assignment on the Internet 33
On the Internet 34
For Future Reading 34
3 The American Legal System 35
Jurisdiction 35
Original versus Appellate
Jurisdiction 35
Jurisdiction over Persons and
Property 36
World-Wide Volkswagen Corp. v. Woodson,
District Judge of Cook County 37
Subject Matter Jurisdiction 40
Hertz Corporation v. Friend 41
Venue 44
The Structure of the Court System 46
The Federal Court System 46
State Court Systems 46
The Actors in the Legal System and
Their Relationship to the Business
Community 49
The Attorney 49
The Jury 52
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The Adversary Process 52
Criticisms of the Adversary System 53
Steps in Civil Litigation and the Role of
Businesspersons 53
The Pretrial Stage 53
The Trial 59
J.E.B. v. Alabama, ex rel. T.B. 60
Appellate Procedure 64
Class Actions 66
Wal-Mart Stores Inc. v. Dukes 67
Global Dimensions of the American Legal
System 69
Summary 71
Review Questions 71
Review Problems 71
Case Problems 72
Thinking Critically about Relevant Legal
Issues 73
Assignment on the Internet 74
On the Internet 74
For Future Reading 75
4 Alternative Tools of Dispute
Resolution 76
Negotiation and Settlement 78
Mediation 78
Selection of a Mediator 78
Common Uses of Mediation 79
Advantages of Mediation 79
Criticisms of Mediation 80
Arbitration 80
Hall Street Associates, L.L.C. v. Mattel, Inc. 82
Methods of Securing Arbitration 83
Ignazio v. Clear Channel Broadcasting, Inc.
et al. 84
American Express Co. vs. Italian Colors
Restaurant 89
Selection of an Arbitrator 91
Common Uses of Arbitration 92
Problems with Arbitration 92
Minitrials 93
Early Neutral Case Evaluation 94
Private Trials 95
Summary Jury Trials 95
Court-Annexed Alternative Dispute
Resolution 95
Use of Court-Annexed ADR in the State
and Federal Systems 95
Differences between Court-Annexed and
Voluntary ADR 97
The Future of Alternative Dispute
Resolution 98
Global Dimensions of Alternative Dispute
Resolution 98
Mitsubishi Motors Corp. v. Soler
Chrysler-Plymouth 99
Summary 100
Review Questions 100
Review Problems 100
Case Problems 101
Thinking Critically about Relevant Legal
Issues 102
Assignment on the Internet 103
On the Internet 103
For Future Reading 104
5 Constitutional Principles 105
The Constitution 105
Federalism 105
Supremacy Clause 106
Federal Preemption 106
Separation of Powers 107
William Jefferson Clinton v. Paula Corbin
Jones 107
The Impact of the Commerce Clause on
Business 110
The Commerce Clause as a Source of
Federal Authority 110
Gonzales v. Raich 112
The Commerce Clause as a Restriction
on State Authority 116
Nat’l Ass’n of Optometrists & Opticians v.
Brown 116
The Taxing and Spending Powers of the
Federal Government 119
Taxation of the Internet? 120
The Impact of the Amendments on
Business 121
The First Amendment 121
Central Hudson Gas & Electric Corp. v.
Public Service Commission of New
York 123
The Fourth Amendment 128
Florida v. Jardines 129
The Fifth Amendment 132
United States v. Windsor 134
The Fourteenth Amendment 139
Summary 140
Review Questions 140
Review Problems 140
vi C O N T E N T S
A01_KUBA4030_08_SE_FM.indd 6 19/11/15 2:58 pm
C O N T E N T S vii
Case Problems 141
Thinking Critically about Relevant Legal
Issues 143
Assignment on the Internet 143
On the Internet 144
For Future Reading 144
6 White-Collar Crime and the
Business Community 145
Crime and Criminal Procedure 148
Crime 148
Criminal Procedure 149
Distinguishing Features of White-Collar
Crime 154
The Corporation as a Criminal 154
Arguments in Support of Corporate
Liability 155
Arguments in Opposition to Corporate
Liability 156
Imposition of Liability on Corporate
Executives 157
United States v. Park 157
Imposition of Liability on Lower-Level
Corporate Criminals 160
Factors Encouraging the Commission of
White-Collar Crime 160
Sentencing of White-Collar
Criminals 162
Common White-Collar Crimes 164
Sekhar v. United States 164
Bribery 165
Violations of Federal Regulations 166
Criminal Fraud 167
United States v. Gray 167
Larceny 169
Embezzlement 170
Computer Crimes 170
Prevention of White-Collar Crime 173
Federal Laws Used in the Fight against
White-Collar Crime 175
The Racketeer Influenced and Corrupt
Organizations Act (RICO) 175
False Claims Act 177
Sarbanes-Oxley Act 178
Whistleblower Protection Act 179
State Laws Used in the Fight against White-
Collar Crime 180
Global Dimensions of White-Collar
Crime 181
Summary 182
Review Questions 182
Review Problems 182
Case Problems 183
Thinking Critically about Relevant Legal
Issues 186
Assignment on the Internet 186
On the Internet 187
For Future Reading 187
7 Ethics, Social Responsibility, and
the Business Manager 188
Definition of Business Ethics and the Social
Responsibility of Business 190
Business Ethics 190
The Social Responsibility of
Business 191
In re Exxon Valdez 191
Theories of Ethical Thought 193
Consequential Theories 193
Deontological Theories 194
Humanist Theories 195
Codes of Ethics 195
Individual Codes of Ethics 195
Corporate Codes of Ethics 197
Industry Codes of Ethics 198
Professional Codes of Ethics 198
Schools of Social Responsibility 201
Profit-Oriented School 201
Managerial School 204
Institutional School 204
Cooper Industries v. Leatherman Tool
Group, Inc. 205
Professional Obligation School 205
Regulation School 206
Johnson Construction Co. v. Shaffer 206
Global Dimensions of Ethics and Social
Responsibility 207
Code of Conduct for Transnational
Corporations 207
Summary 207
Review Questions 208
Review Problems 208
Case Problems 209
Thinking Critically about Relevant Legal
Issues 210
Assignment on the Internet 211
On the Internet 211
For Future Reading 211
A01_KUBA4030_08_SE_FM.indd 7 19/11/15 2:58 pm
8 The International Legal
Environment of Business 213
Dimensions of the International
Environment of Business 214
Political Dimensions 214
Economic Dimensions 215
Cultural Dimensions 215
Corruption and Trade 216
United States v. Kay 216
Legal Dimensions 219
Selected National Legal Systems 221
Crosby v. National Foreign Trade Council 222
Methods of Engaging in International
Business 223
Trade 223
International Licensing and
Franchising 224
Russian Entertainment Wholesale, Inc. v.
Close-Up International, Inc. 225
Foreign Direct Investment 226
In re Union Carbide Corp. Gas Plant Disaster
v. Union Carbide Corp. 227
Risks of Engaging in International
Business 229
Expropriation of Private Property 229
Sovereign Immunity Doctrine 230
Keller v. Central Bank of Nigeria 230
Act-of-State Doctrine 231
Linde v. Arab Bank, PLC 231
Export and Import Controls 232
Legal and Economic Integration as a Means
of Encouraging International Business
Activity 233
The World Trade Organization 233
The European Union 236
North American Free Trade
Agreement 240
Global Dispute Resolution 242
Arbitration 243
Litigation 243
Globalization: Hurts or Helps 243
Summary 244
Review Questions 244
Review Problems 245
Case Problems 245
Thinking Critically about Relevant Legal
Issues 246
Assignment on the Internet 246
On the Internet 247
For Future Reading 247
P A R T T W O
Private Law and the Legal
Environment of Business 249
9 The Law of Contracts and
Sales—I 250
Definition, Sources, and Classifications of
Contract Law 251
Definition 251
Sources of Contract Law 251
Paramount Contracting Co. v. DPS
Industries, Inc. 252
Classifications of Contracts 253
Pan Handle Realty, LLC v. Olins 254
Audito v. City of Providence 255
Elements of a Legal Contract 257
Legal Offer 257
Beer v. Chase 258
Legal Acceptance 260
The Private Movie Company, Inc. v. Pamela
Lee Anderson et al. 260
Consideration 263
Genuine Assent 264
Stambovsky v. Ackley and Ellis Realty 265
Competent Parties 267
Legal Object 269
Brown & Brown, Inc. v. Johnson 270
Contracts That Must Be in Writing 271
Contracts for the Sale of an Interest in
Land 271
Contracts to Pay the Debts of Another 271
Contracts Not Performable in One
Year 271
Sale of Goods of $500 or More 272
Iacono v. Lyons 272
Nonbusiness Contracts 273
Parol Evidence Rule 273
Third-Party Beneficiary Contracts and
Assignment of Rights 274
Types of Third-Party Beneficiary
Contracts 274
Assignment of Rights 274
Summary 275
Review Questions 276
Review Problems 276
Case Problems 277
Thinking Critically about Relevant Legal
Issues 278
On the Internet 278
For Future Reading 278
viii C O N T E N T S
A01_KUBA4030_08_SE_FM.indd 8 19/11/15 2:58 pm
10 The Law of Contracts and
Sales—II 279
Methods of Discharging a Contract 280
Discharge by Performance 280
Kohel v. Bergen Auto Enterprises, L.L.C. 280
Performance to Satisfaction of Another 281
Material Breach of Contract 281
Discharge by Mutual Agreement 282
Discharge by Conditions Precedent and
Subsequent 282
Architectural Systems, Inc. v. Gilbane
Building Co. 283
Discharge by Impossibility of
Performance 283
Discharge by Commercial
Impracticability 284
Contracts with the Government and the
Sovereign Acts Doctrine 284
Facto v. Pantagis 285
Remedies for a Breach of Contract 286
Monetary Damages (“Legal”
Remedies) 286
Hallmark Cards, Inc. v. Murley 287
Arrowhead School District No. 75, Park
County, Montana v. James A. Klyap, Jr. 288
Equitable Remedies 289
Remedies for Breach of a Sales Contract
(Goods) 290
Fitl v. Strek 290
E-Contracts 291
E-Signatures 292
The Uniform Computer Information
Transaction Act 292
Global Dimensions of Contract and Sales
Law 293
Summary 294
Review Questions 295
Review Problems 295
Case Problems 296
Thinking Critically about Relevant Legal
Issues 297
Assignment on the Internet 297
On the Internet 297
For Future Reading 298
11 The Law of Torts 299
The Goals of Tort Law 299
Damages Available in Tort Cases 300
Compensatory Damages 300
Nominal Damages 301
Punitive Damages 301
Young v. Becker & Poliakoff 303
Classifications of Torts 307
Intentional Torts 307
Intentional Torts against Persons 307
Nemet Chevrolet, Ltd. v. Consumeraffairs
.com, Inc. 310
Intentional Torts against Property 317
Intentional Torts against Economic
Interests 318
Negligent Torts 319
Elements of Negligence 319
Defenses to Negligence 322
Coomer v. Kansas City Royals 323
Venkateswarlu Thota and North Texas
Cardiology Center v. Margaret
Young 324
Strict Liability Torts 326
Global Dimensions of Tort Law 326
Summary 327
Review Questions 327
Review Problems 328
Case Problems 328
Thinking Critically about Relevant Legal
Issues 330
Assignment on the Internet 331
On the Internet 331
For Future Reading 331
12 Product and Service Liability
Law 332
Theories of Recovery in Product Liability
Cases 333
Negligence 333
Mutual Pharmaceutical Company, Inc. v.
Bartlett 340
Strict Liability in Contract for Breach of
Warranty 341
Williams v. Braum Ice Cream Store, Inc. 343
Strict Liability in Tort 346
Welge v. Planters Lifesavers Co. 347
Liability to Bystanders 351
Market Share Liability 351
Service Liability 352
Accountants’ Liability 353
Global Dimensions of Product Liability
Law 353
Summary 355
Review Questions 355
Review Problems 356
Case Problems 356
C O N T E N T S ix
A01_KUBA4030_08_SE_FM.indd 9 19/11/15 2:58 pm
Thinking Critically about Relevant Legal
Issues 357
Assignment on the Internet 358
On the Internet 358
For Future Reading 359
13 Law of Property: Real and
Personal 360
Real Property 361
Definition of Real Property 362
Extent of Ownership 362
Interests in Real Property 362
Fee Simple Absolute 362
Conditional Estate 362
Life Estate 363
Future Interest 363
Leasehold Estates 364
Easements 364
License 364
Co-Ownership 364
Condominiums and Cooperatives 365
Plum Creek C.A. v. Oleg Borman 365
Voluntary Transfer of Real Property 368
Execution 368
Delivery 370
Acceptance 370
Recording 370
Involuntary Transfer of Real Property 370
Adverse Possession 370
Condemnation 371
Susette Kelo et al. Petitioners, v. City of New
London, Connecticut et al. 372
Restrictions on Land Use 374
Restrictive Covenants 374
Zoning 374
Emine Bayram v. City of Binghamton
and City of Binghamton Zoning Board of
Appeals 375
Other Statutory Restrictions on Land
Use 377
Personal Property 378
Voluntary Transfer of Personal
Property 378
Involuntary Transfers of Personal
Property 378
Bailments 379
Global Dimensions of Property
Law 379
Summary 380
Review Questions 380
Review Problems 381
Case Problems 381
Thinking Critically about Relevant Legal
Issues 382
Assignment on the Internet 383
On the Internet 383
For Future Reading 383
14 Intellectual Property 385
Introduction to Intellectual Property 385
Trademarks 385
Toys “R” Us, Inc. v. Canarsie Kiddie Shop,
Inc. 386
Trade Dress 389
Federal Trademark Dilution Act of
1995 391
Victor Moseley and Cathy Moseley et al.,
dba Victor’s Little Secret v. V Secret
Catalogue, Inc. et al. 391
Patents 393
Bilski v. Kappos 393
Trade Secrets 396
Economic Espionage Act 397
Copyrights 397
Fair Use Doctrine 398
Copyrights in the Digital Age 398
American Broadcasting Company, Inc.
et. al. v. Aereo, Inc. 399
RealNetworks, Inc. v. DVD Control Copy
Association, Inc. et al. 402
Global Dimensions of Intellectual Property
Law 402
Summary 403
Review Questions 404
Review Problems 404
Case Problems 404
Thinking Critically about Relevant Legal
Issues 406
Assignment on the Internet 407
On the Internet 407
For Future Reading 407
15 Agency Law 408
Definition and Types of Agency
Relationships 409
Definition of Agency 409
Types of Agency Relationships 409
Coker v. Pershad 411
Creation of an Agency Relationship 412
Expressed Agency or Agency by
Agreement 413
Agency by Implied Authority 413
x C O N T E N T S
A01_KUBA4030_08_SE_FM.indd 10 19/11/15 2:58 pm
Penthouse International v. Barnes 414
Agency through Ratification by
Principal 415
Agency by Estoppel or Apparent
Authority 415
Motorsport Marketing, Inc. v. Wiedmaier,
Inc. 416
Duties of Agents and Principals 416
Principal’s Duties to Agent 416
Agent’s Duties to Principal 417
Cousins v. Realty Ventures, Inc. 417
Gossels v. Fleet National Bank 419
Principal’s and Agent’s Liability to Third
Parties 420
Contractual Liability 420
McBride v. Taxman Corp. 421
E-Commerce: Intelligent Agents 421
Liability of Disclosed, Partially Disclosed
and Undisclosed Principals 422
Liability of Undisclosed Principal 422
Tort Liability 422
Tort Liability and Negligence 423
Auer v. Paliath 423
Criminal Liability 424
Termination of the Principal–Agent
Relationship 424
Termination by Agreement 424
Termination by Operation of Law 425
Gaddy v. Douglass 425
Global Dimensions of Agency Law 426
Japan 427
European Union 427
U.S. Agents Abroad 427
Summary 428
Review Questions 428
Review Problems 428
Case Problems 429
Thinking Critically about Relevant Legal
Issues 430
Assignment on the Internet 431
On the Internet 431
For Future Reading 431
16 Law and Business
Associations—I 432
Factors Influencing a Business Manager’s
Choice of Organizational Form 434
Some Common Forms of Business
Organization in the United States 434
Sole Proprietorships 434
Quality Car & Truck Leasing, Inc. v.
Sark 435
General Partnerships 436
In re KeyTronics 438
Enea v. Superior Court of Monterey
County 439
Limited Partnerships and Limited
Liability Limited Partnerships 443
Specialized Forms of Business
Associations 444
Joint Stock Company 444
Syndicate 445
Joint Venture 445
Franchising 445
Holiday Inn Franchising, Inc. v. Hotel
Associates, Inc. 446
Global Dimensions of Business
Associations 447
Outsourcing 448
Summary 449
Review Questions 449
Review Problems 449
Case Problems 450
Thinking Critically about Relevant Legal
Issues 451
Assignment on the Internet 451
On the Internet 452
For Future Reading 452
17 Law and Business Associations—
II 453
The Corporation 453
Classification of Corporations 454
Closely Held Corporation 454
Publicly Held Corporation 455
Multinational or Transnational
Corporation 455
Subchapter S Corporation 455
ROBS Corporation 455
Professional Corporation 455
Nonprofit Corporation 456
Creation of Corporations 456
Brennan’s Inc. v. Colbert 457
Financing of Corporations 458
Debt Financing 458
Equity Financing 459
Consideration 461
Operation of Corporations 462
The Role of the Shareholders 462
The Role of the Board of Directors 464
C O N T E N T S xi
A01_KUBA4030_08_SE_FM.indd 11 19/11/15 2:58 pm
In re Abbott Laboratories Derivative
Shareholders Litigation 465
The Role of the Officers and
Managers 466
Fiduciary Obligations of Directors,
Officers, and Managers 466
Beam v. Stewart 467
Smith v. Van Gorkom 469
Limited Liability Companies 473
The Uniform Limited Liability Act 473
LLC Characteristics 473
Creating a Limited Liability
Company 473
Duration of the LLC 474
Financing of the LLC 474
Control Considerations 474
Tax Ramifications 474
Gatz Properties, LLC v. Auriga Capital
Corporation 474
Global Dimensions of Corporations: A “Big Fat
Greek” Bailout II and III 476
Summary 476
Review Questions 477
Review Problems 477
Case Problems 478
Thinking Critically about Relevant Legal
Issues 478
Assignment on the Internet 479
On the Internet 479
For Future Reading 480
P A R T T H R E E
Public Law and the Legal
Environment of Business 481
18 The Law of Administrative
Agencies 482
Introduction to Administrative Law and
Administrative Agencies 483
Administrative Law 483
Administrative Agencies 484
Creation of Administrative Agencies 485
Functions of Administrative Agencies 486
Rulemaking 486
City of Arlington v. Federal Communications
Commission 488
Adjudication 489
Fox Television Stations, Inc. v. Federal
Communications Commission 493
Administrative Activities 494
Limitations on Administrative Agencies’
Powers 494
Statutory Limitations 494
Institutional Limitations 494
State and Local Administrative
Agencies 496
Vonage Holdings Corp. v. Minnesota Public
Utilities Commission 497
Global Dimensions of Administrative
Agencies 498
Summary 498
Review Questions 498
Review Problems 498
Case Problems 499
Thinking Critically about Relevant Legal
Issues 501
Assignment on the Internet 501
On the Internet 501
For Future Reading 502
19 The Employment Relationship and
Immigration Laws 503
Wage and Hour Laws 504
Unemployment Compensation 506
Cassandra Jenkins v. American Express
Financial Corp. 509
Consolidated Omnibus Budget
Reconciliation Act of 1985 510
Workers’ Compensation Laws 510
Coverage 510
Recoverable Benefits 512
The Claims Process 12
Benefits of the Workers’ Compensation
System 512
The Family and Medical Leave Act of
1993 513
Major Provisions 513
Jeffrey Bonkowski v. Oberg Industries,
Inc. 514
Remedies for Violations of the
FMLA 516
The Future of the FMLA 517
The Occupational Safety and Health Act of
1970 518
Occupational Safety and Health
Administration 518
Occupational Safety and Health Review
Commission 521
National Institute for Occupational
Safety and Health 521
Implementation of the OSH Act 523
xii C O N T E N T S
A01_KUBA4030_08_SE_FM.indd 12 19/11/15 2:58 pm
Employee Privacy Rights 523
Electronic Monitoring and
Communication 523
Brian Pietrylo and Doreen Marino,
Plaintiffs v. Hillstone Restaurant Group
d/b/a Houston’s, Defendant 524
Drug Testing 527
Other Testing 528
Immigration Law 529
Immigration Reform and Control Act of
1986 529
Authorized Noncitizen Workers 530
Global Dimensions of the Employment
Relationship 532
Summary 533
Review Questions 533
Review Problems 533
Case Problems 534
Thinking Critically about Relevant Legal
Issues 535
Assignment on the Internet 536
On the Internet 536
For Future Reading 537
20 Laws Governing Labor–
Management Relations 538
Structure of the Primary U.S. Labor
Legislation and the Mechanisms for Its
Enforcement 540
The Wagner Act of 1935 540
The Taft–Hartley Act of 1947 541
The Landrum–Griffin Act of 1959 542
The National Labor Relations
Board 542
Labor Organizing 548
Board Rules 548
Unfair Labor Practices by
Employers 549
Gaetano & Associates, Inc. v. National Labor
Relations Board 553
Unfair Labor Practices by Employees 554
Laborers’ International Union of North
America, Local 872, AFL–CIO, and
Stephanie Shelby 554
Organizing the Appropriate Unit 556
Specialty Healthcare and Rehabilitation
Center of Mobile and United Steelworkers,
District 9, Petitioner 557
The Collective Bargaining Process 559
Subjects of Bargaining 560
Strikes, Boycotts, and Picketing 560
Strikes 561
Boycotts 563
Picketing 563
Global Dimensions of Labor–Management
Relations 564
Summary 564
Review Questions 564
Review Problems 565
Case Problems 565
Thinking Critically about Relevant Legal
Issues 567
Assignment on the Internet 568
On the Internet 568
For Future Reading 568
21 Employment Discrimination 569
The Employment-at-Will Doctrine 570
Constitutional Provisions 572
The Civil Rights Acts of 1866 and 1871 572
Applicability of the Acts 572
The Equal Pay Act of 1963 573
Equal Work 574
Defenses 574
Remedies 575
The Civil Rights Act of 1964, as Amended (Title
VII), and the Civil Rights Act of 1991 575
Applicability of the Act 575
Proof in Employment Discrimination
Cases 576
Teresa Harris v. Forklift Systems, Inc. 580
Vance v. Ball State University 583
Retaliation 583
Reya C. Boyer-Liberto v. Fontainbleu
Corporation 584
Statutory Defenses 586
Protected Classes 588
Enforcement Procedures 592
Remedies 595
Lilly Ledbetter Fair Pay Act of 2009 595
The Age Discrimination in Employment Act
of 1967 596
Applicability of the Statute 597
Proving Age Discrimination 597
Jones v. National American University 598
Statutory Defenses 599
Enforcement Procedures 600
Remedies under ADEA 601
The Rehabilitation Act of 1973 601
The Americans with Disabilities Act of
1991 602
Covered Individuals 602
C O N T E N T S xiii
A01_KUBA4030_08_SE_FM.indd 13 19/11/15 2:58 pm
McMillan v. City of New York 604
Enforcement Procedures 606
Remedies 606
Affirmative Action 606
Global Dimensions of Employment
Discrimination Legislation 610
Summary 611
Review Questions 612
Review Problems 612
Case Problems 613
Thinking Critically about Relevant Legal
Issues 615
Assignment on the Internet 615
On the Internet 616
For Future Reading 616
22 Environmental Law 617
Alternative Approaches to Environmental
Protection 618
Tort Law 618
Boomer et al. v. Atlantic Cement Co. 618
Government Subsidies Approach 620
Emission Charges Approach 620
Marketable Discharge Permits
Approach 620
Direct Regulation Approach 621
The Environmental Protection Agency 621
The National Environmental Policy Act of
1970 623
Threshold Considerations 623
Content of the EIS 623
Brodsky v. United States Nuclear Regulatory
Commission 624
Effectiveness of the EIS Process 625
Regulating Water Quality 625
The Federal Water Pollution Control
Act …
Q.1 Make a presentation slide.Corporate Presentation
You are to present a power point and uploaded for week 8
viewing in class discussing the corporation, the issue at hand
and state either your support or opposition to the articles
position on the corporation and if you agree with the outcome.
Identify what changes or recommendations you would present to
your personal business if this matter occurred to your corporate
entity.Grading Rubrics
· A: Every point in this section is met.
· B: One point is missed, but the remainder of the requirements
is well met.
· C: More than one point is missed.
· D: The paper misses many of the requirements.
· F: The paper was turned in but does not demonstrate that much
work was done.
· 0: Nothing was submitted, or the material was in violation of
school policies such as plagiarism.
Q.2 What types of liability does Starbucks face from incidence
like this? (Write an answer by reading the below articles)
(Professor questions)
Within this week the choice which was taken within this group
is in line to the article: “Starbucks faces image crisis after
arrest of 2 black men.”
In the month of April, the year 2018, there was the arrest of
two black men namely Donte Robinson and radon nelson. These
two were arrested in the Starbucks platform after an employee
working within the organization made an inquiry of two men to
leave. The reason which made this to happen was the issues of
the two men has fled to order anything within the premises. The
employee the manger upon the two men the store manager and
they told the manager they were waiting for an associate in their
business dealing at the stall. In this case thus the two men failed
to leave the stall. Shannon Philip the store manager in this case
called the police to escort the two men out. This activity took
place and the two men were taken from the stall in handcuffs.
In my recent time I have been able to visit the Starbucks
corporate webpage a site often time and I have seen a lot of
messages in relation to the issues of inclusion of diversity.
There is a high level of concern in relation to the ideas of the
ethical surrounding within this case and the products as well as
the diversity issues here too. The concern within this case is
inclusive the issues in lien to the firms being concerned for the
ideology of being affected by the ethical surrounding in the
business platforms. There is need to understand the manner as
to how such activities have ability to take place in this case.
Starbucks is a larger brand and, in this case, there is more focus
into customer services and also treating the users and employees
in the-best manner. There is need for the-best in terms of the
consumer protection and debtor creditor relations need to be
upheld in the-best manner here too.
The messages from the Starbucks CEO are there they have
the mission to make for a reflection in terms of the fundamental
principles which all the affected person will be welcome into
the platforms. There is an aspiration for the place to have best
inclusion, diversity, equity and also getting to make of
accessibility. The presence of diversity will make the firms to
become stronger and also there will be better ability to create
for the issues and deeply inclusive culture which will allow the
space to have better ability at making do the presence of success
and growing as one in this case too. However, from the
multinational case more than 28000 store there is need to have
in place a better way and better intuition within all the day
affected within this case. The humans need to have better
chance at holding the entities in the wrong way. There is no
space in within the employee will have ability to not have
anything that is stupid happening. John Gordon who is a
specialist and analysis within the pacific management
consulting said. The occurrence led to the presence of a lot of
protest in the area of Philadelphia. There is need to understand
the importance attached to the issues of making for the concept
of getting an involvement of the affected within consumer and
buyer cases. In this case thus, to make to best environments.
Olsen, A. Starbucks faces image crisis after arrest of 2 black
men
References
https://www.chicagotribune.com/business/ct-biz-starbucks-
arrest-image-crisis-20180417-story.html (Links to an external
site.) (Links to an external site.)
Diversity & Inclusion at Starbucks
https://www.starbucks.com/responsibility/community/diversity-
and-inclusion
(Links to an external site.) (Links to an external site.)Retrieved
11/3/2019
Twitter
https://twitter.com/Starbucks/status/985200942030012416?ref_s
rc=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E98
5200942030012416%7Ctwgr%5E363937393b636f6e74726f6c&r
ef_url=https%3A%2F%2Fwww.nytimes.com%2F2018%2F04%2
F15%2Fus%2Fstarbucks-philadelphia-black-men-arrest.html
(Links to an external site.) (Links to an external site.)
https://www.nytimes.com/2018/04/17/business/starbucks-
arrests-racial-bias.html (Links to an external site.) (Links to an
external site.)
Abrams, R. Starbucks to Close 8,000 U.S. Stores for Racial-
Bias Training After Arrests, April 18, 2018.
https://www.nytimes.com/2018/04/17/business/starbucks-
arrests-racial-bias.html (Links to an external site.) (Links to an
external site.)
Stevens, M. April 13, 2018. Starbucks C.E.O. Apologizes After
Arrests of 2 Black Men
https://www.nytimes.com/2018/04/15/us/starbucks-philadelphia-
black-men-arrest.html?module=inline (Links to an external
site.) (Links to an external site.)
Former Starbucks employee sues company, alleges
discrimination after two black men were arrested in
Philadelphia store https://fox2now.com/2019/11/02/former -
starbucks-employee-sues-company-alleges-discrimination-after-
two-black-men-were-arrested-in-philadelphia-store/ (Links to an
external site.)
Quantifying an association to predict future events chapt

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Quantifying an association to predict future events chapt

  • 1. QUANTIFYING AN ASSOCIATION TO PREDICT FUTURE EVENTS Chapter 12 Regression Analysis Regression AnalysisA statistical technique to quantify associations and begin the process of predicting future events Linear Regression Used to identify a relationship between a single independent variable (x axis) and a single dependent variable (y axis) at the interval or ratio level If there is a linear relationship when these variables are graphed you can use the slope of the line to tell you how much the predicted value of the dependent variable changes when there is a one unit change in the independent variable. Linear Regression Chart1151031264 Fetal weight at various levels of daily cigarette consumption
  • 2. 8.5 7.9 7 8.2 6.6 7.1 7.8 Sheet1number of cigarettesFetal weight at various levels of daily cigarette consumption18.557.910738.2126.667.147.8 ResidualThe difference between where the data actually falls and where the linear regression line predicts they will fall Also called prediction errorLower residuals mean a better fit of the prediction line and the data * Multiple Regression Used when you wish to examine the relationship between multiple independent variables (X1 , X2….) and an outcome of interest (Y) at the interval or ratio level Yi=a- b1 X1+ b2X2+e a=constant, value when x=0 b= beta value e=error term X1 =number of cigarettes smoked each day X2=diabetic status (yes/no)
  • 3. Beta Values in Multiple RegressionBeta values are the rate of change in the outcome variable (Y) for every one unit increase in the independent variable holding the other independent variables constantWhen beta value is positive there is an increase in the outcome variable when this independent variable is increasedWhen beta value is negative an increase in the level of the independent variable decreases the level of the outcome variable. Looking at Computer Output R2 R Square tells you the percent of the variance in the dependent or outcome variable that is explained in your regression model. If R Square is 0.74 that means the variables you have included in your regression model explain 74% of the variance in the outcome you are studying. R Square always increases when additional independent variables are included in the model even if the added independent variables are not significant. The adjusted R square is a more conservative estimate of the R square and is a better option when a large number of independent variables are included. Standard Error of the EstimateTells you the average amount of error there will be in the predicted outcome using your specific
  • 4. regression model. You would like to minimize this to make your prediction as accurate as possible so the closer the standard error of the estimate is to zero the better. Determining Significance It is a little trickier than previous tests but still has the same underlying principals. Look at your R Square and find the corresponding p value- is that significant (<alpha)? Then look at each of the independent variables for significance as well. You can have a significant R Square with an independent variable included that doesn’t add anything to your model. Is the R Square change significant for each added independent variable? If not, it means when you controll ed for the other independent variables the insignificant variable no longer added to the ability to predict the outcome. The Beta value for each independent variable Look at the column in SPSS for unstandardized coefficients and you will see the beta coefficients for the independent variables in the regression equation. A one unit change in variable X1 will produce a change equal to the beta for variable in the outcome variable. For example, a beta for independent variable X1 is 2.3. That means for every one unit increase in variable A that occurs, you would predict a 2.3 unit increase in your outcome variable when controlling your other independent variables. Logistic Regression
  • 5. Examines the relationship between multiple independent variables with a dependent variable that is binary (nominal or ordinal with only two categories) such as yes/no, alive/dead. Generates an odds ratio (OR) which is frequently helpful for explaining results to the public. (It is just the probability of the outcome occurring divided by the probability of the outcome not occurring). We will discuss the OR further in the next chapter. Tests that Control for the Impact of More than One Independent Variable on a Single Dependent Variable *Multiple and logistic regression allow the researcher to examine the effect of multiple independent variables on a single dependent variable. For example, if the researcher believes that maternal age and smoking both impact infant birth weight the relationship between maternal age and infant birth weight can be seen while controlling for the impact of smoking on infant birth weight. Dependent VariableTestExampleYes/NoLogistic RegressionAmong adolescents who attempt to commit suicide, what is the relationship between alcohol consumption, age, gender and risk of death? (independent variables alcohol consumption, age, gender, dependent variable- death (yes/no)Continuous VariableMultiple RegressionHow do parents education level, income level and school district rank impact fourth grade reading scores among impoverished children? (independent variables- parents education level, income level, and school district rank, dependent variable reading score at the interval/ratio level)
  • 6. AssignmentComplete chapter 12 exercises.Complete Research application exercise NANCY K. KUBASEK M. NEIL BROWNE BARTLEY A. BRENNAN Boston Columbus Indianapolis New York San Francisco Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo The L E G A L E N V I R O N M E N T of B U S I N E S S
  • 7. E I G H T H E D I T I O N A C R I T I C A L T H I N K I N G A P P R O A C H A01_KUBA4030_08_SE_FM.indd 1 19/11/15 2:58 pm Vice President, Business Publishing: Donna Battista Editor-in-Chief: Stephanie Wall Senior Sponsoring Editor: Neeraj Bhalla Editorial Assistant: Eric Santucci Vice President, Product Marketing: Maggie Moylan Director of Marketing, Digital Services and Products: Jeanette Koskinas Executive Field Marketing Manager: Adam Goldstein Field Marketing Manager: Lenny Ann Raper Product Marketing Assistant: Jessica Quazza Team Lead, Program Management: Ashley Santora Team Lead, Project Management: Jeff Holcomb Project Manager: Ilene Kahn Operations Specialist: Carol Melville Creative Director: Blair Brown Art Director: Janet Slowik Vice President, Director of Digital Strategy and Assessment: Paul Gentile Manager of Learning Applications: Paul DeLuca Full-Service Project Management and Composition: Cenveo® Publisher Services Interior Designer: Cenveo Publisher Services Cover Designer: Cenveo Publisher Services Cover Photo: Maksym Yemelyanov/Fotolia Printer/Binder: RR Donnelley/Willard Cover Printer: Phoenix Color/Hagerstown
  • 8. Copyright © 2017, 2015, 2012 by Pearson Education, Inc. or its affiliates. All Rights Reserved. Manufactured in the United States of America. This publication is protected by copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise. For information regarding permissions, request forms, and the appropriate contacts within the Pearson Education Global Rights and Permissions department, please visit www.pearsoned.com/permissions/. Acknowledgments of third-party content appear on the appropriate page within the text. PEARSON, ALWAYS LEARNING, are exclusive trademarks owned by Pearson Education, Inc. or its affiliates in the U.S. and/or other countries. Unless otherwise indicated herein, any third-party trademarks, logos, or icons that may appear in this work are the property of their respective owners, and any references to third-party trademarks, logos, icons, or other trade dress are for demonstrative or descriptive purposes only. Such references are not intended to imply any sponsor- ship, endorsement, authorization, or promotion of Pearson’s products by the owners of such marks, or any rela- tionship between the owner and Pearson Education, Inc., or its affiliates, authors, licensees, or distributors. Library of Congress Cataloging-in-Publication Data Kubasek, Nancy K., author. The legal environment of business : a critical thinking approach / Nancy K. Kubasek, Bartley A. Brennan, M. Neil Browne. — Eight edition.
  • 9. pages cm ISBN 978-0-13-407403-0 (alk. paper) 1. Industrial laws and legislation—United States. 2. Trade regulation—United States. 3. Commercial law—United States. 4. Critical thinking. I. Brennan, Bartley A., author. II. Browne, M. Neil, author. III. Title. KF1600.K83 2015a 346.7307—dc23 2015036209 10 9 8 7 6 5 4 3 2 1 ISBN 10: 0-13-407403-3 ISBN 13: 978-0-13-407403-0 A01_KUBA4030_08_SE_FM.indd 2 19/11/15 2:58 pm http://www.pearsoned.com/permissions/ To the numerous students who appreciate the importance of developing their critical thinking skills for their personal growth and development. NANCY K. KUBASEK AND M. NEIL BROWNE To Sandra for everything. BARTLEY A. BRENNAN A01_KUBA4030_08_SE_FM.indd 3 19/11/15 2:58 pm
  • 10. iv Brief Contents P A R T O N E Introduction to the Law and the Legal Environment of Business 1 1 Critical Thinking and Legal Reasoning 2 2 Introduction to Law and the Legal Environment of Business 17 3 The American Legal System 35 4 Alternative Tools of Dispute Resolution 76 5 Constitutional Principles 105 6 White-Collar Crime and the Business Community 145 7 Ethics, Social Responsibility, and the Business Manager 188 8 The International Legal Environment of Business 213 P A R T T W O Private Law and the Legal Environment of Business 249 9 The Law of Contracts and Sales—I 250 10 The Law of Contracts and Sales—II 279 11 The Law of Torts 299
  • 11. 12 Product and Service Liability Law 332 13 Law of Property: Real and Personal 360 14 Intellectual Property 385 15 Agency Law 408 16 Law and Business Associations—I 432 17 Law and Business Associations—II 453 P A R T T H R E E Public Law and the Legal Environment of Business 481 18 The Law of Administrative Agencies 482 19 The Employment Relationship and Immigration Laws 503 20 Laws Governing Labor–Management Relations 538 21 Employment Discrimination 569 22 Environmental Law 617 23 Rules Governing the Issuance and Trading of Securities 647 24 Antitrust Laws 699 25 Laws of Debtor–Creditor Relations and Consumer Protection 741 APPENDIX A The Constitution of the United States 788 GLOSSARY 794
  • 12. INDEX 808 A01_KUBA4030_08_SE_FM.indd 4 19/11/15 2:58 pm v Contents v PREFACE xvii ACKNOWLEDGMENTS xxi ABOUT THE AUTHORS xxiii P A R T O N E Introduction to the Law and the Legal Environment of Business 1 1 Critical Thinking and Legal Reasoning 2 The Importance of Critical Thinking 2 A Critical Thinking Model 4 United States of America v. Martha Stewart and Peter Bacanovic 5 The Critical Thinking Steps 7 Facts 7 Issue 7
  • 13. Reasons and Conclusion 7 Rules of Law 8 Ambiguity 8 Ethical Norms 9 Analogies 10 Missing Information 10 Using Critical Thinking to Make Legal Reasoning Come Alive 11 Legal Reasoning 11 Applying the Critical Thinking Approach 15 Assignment on the Internet 16 On the Internet 16 For Future Reading 16 2 Introduction to Law and the Legal Environment of Business 17 Definition of the Legal Environment of Business 18 Definition of Law and Jurisprudence 19 Natural Law School 20 Positivist School 21 Sociological School 21 American Realist School 22 Critical Legal Studies School 22 Feminist School 22 Law and Economics School 23
  • 14. Sources of Law 23 The Legislature as a Source of Statutory Law 23 The Judicial Branch as a Source of Case Law 25 The Executive Branch as a Source of Law 27 Administrative Agencies as a Source of Law 27 Classifications of Law 27 Criminal Law and Civil Law 28 Public and Private Law 28 Substantive and Procedural Law 29 Cyberlaw 29 Global Dimensions of the Legal Environment of Business 30 Summary 30 Review Questions 30 Review Problems 31 Case Problems 31 Thinking Critically about Relevant Legal Issues 33 Assignment on the Internet 33 On the Internet 34 For Future Reading 34
  • 15. 3 The American Legal System 35 Jurisdiction 35 Original versus Appellate Jurisdiction 35 Jurisdiction over Persons and Property 36 World-Wide Volkswagen Corp. v. Woodson, District Judge of Cook County 37 Subject Matter Jurisdiction 40 Hertz Corporation v. Friend 41 Venue 44 The Structure of the Court System 46 The Federal Court System 46 State Court Systems 46 The Actors in the Legal System and Their Relationship to the Business Community 49 The Attorney 49 The Jury 52 A01_KUBA4030_08_SE_FM.indd 5 19/11/15 2:58 pm The Adversary Process 52 Criticisms of the Adversary System 53 Steps in Civil Litigation and the Role of
  • 16. Businesspersons 53 The Pretrial Stage 53 The Trial 59 J.E.B. v. Alabama, ex rel. T.B. 60 Appellate Procedure 64 Class Actions 66 Wal-Mart Stores Inc. v. Dukes 67 Global Dimensions of the American Legal System 69 Summary 71 Review Questions 71 Review Problems 71 Case Problems 72 Thinking Critically about Relevant Legal Issues 73 Assignment on the Internet 74 On the Internet 74 For Future Reading 75 4 Alternative Tools of Dispute Resolution 76 Negotiation and Settlement 78 Mediation 78
  • 17. Selection of a Mediator 78 Common Uses of Mediation 79 Advantages of Mediation 79 Criticisms of Mediation 80 Arbitration 80 Hall Street Associates, L.L.C. v. Mattel, Inc. 82 Methods of Securing Arbitration 83 Ignazio v. Clear Channel Broadcasting, Inc. et al. 84 American Express Co. vs. Italian Colors Restaurant 89 Selection of an Arbitrator 91 Common Uses of Arbitration 92 Problems with Arbitration 92 Minitrials 93 Early Neutral Case Evaluation 94 Private Trials 95 Summary Jury Trials 95 Court-Annexed Alternative Dispute Resolution 95 Use of Court-Annexed ADR in the State and Federal Systems 95 Differences between Court-Annexed and Voluntary ADR 97
  • 18. The Future of Alternative Dispute Resolution 98 Global Dimensions of Alternative Dispute Resolution 98 Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth 99 Summary 100 Review Questions 100 Review Problems 100 Case Problems 101 Thinking Critically about Relevant Legal Issues 102 Assignment on the Internet 103 On the Internet 103 For Future Reading 104 5 Constitutional Principles 105 The Constitution 105 Federalism 105 Supremacy Clause 106 Federal Preemption 106 Separation of Powers 107 William Jefferson Clinton v. Paula Corbin
  • 19. Jones 107 The Impact of the Commerce Clause on Business 110 The Commerce Clause as a Source of Federal Authority 110 Gonzales v. Raich 112 The Commerce Clause as a Restriction on State Authority 116 Nat’l Ass’n of Optometrists & Opticians v. Brown 116 The Taxing and Spending Powers of the Federal Government 119 Taxation of the Internet? 120 The Impact of the Amendments on Business 121 The First Amendment 121 Central Hudson Gas & Electric Corp. v. Public Service Commission of New York 123 The Fourth Amendment 128 Florida v. Jardines 129 The Fifth Amendment 132 United States v. Windsor 134 The Fourteenth Amendment 139
  • 20. Summary 140 Review Questions 140 Review Problems 140 vi C O N T E N T S A01_KUBA4030_08_SE_FM.indd 6 19/11/15 2:58 pm C O N T E N T S vii Case Problems 141 Thinking Critically about Relevant Legal Issues 143 Assignment on the Internet 143 On the Internet 144 For Future Reading 144 6 White-Collar Crime and the Business Community 145 Crime and Criminal Procedure 148 Crime 148 Criminal Procedure 149 Distinguishing Features of White-Collar Crime 154
  • 21. The Corporation as a Criminal 154 Arguments in Support of Corporate Liability 155 Arguments in Opposition to Corporate Liability 156 Imposition of Liability on Corporate Executives 157 United States v. Park 157 Imposition of Liability on Lower-Level Corporate Criminals 160 Factors Encouraging the Commission of White-Collar Crime 160 Sentencing of White-Collar Criminals 162 Common White-Collar Crimes 164 Sekhar v. United States 164 Bribery 165 Violations of Federal Regulations 166 Criminal Fraud 167 United States v. Gray 167 Larceny 169 Embezzlement 170 Computer Crimes 170 Prevention of White-Collar Crime 173 Federal Laws Used in the Fight against White-Collar Crime 175 The Racketeer Influenced and Corrupt Organizations Act (RICO) 175 False Claims Act 177
  • 22. Sarbanes-Oxley Act 178 Whistleblower Protection Act 179 State Laws Used in the Fight against White- Collar Crime 180 Global Dimensions of White-Collar Crime 181 Summary 182 Review Questions 182 Review Problems 182 Case Problems 183 Thinking Critically about Relevant Legal Issues 186 Assignment on the Internet 186 On the Internet 187 For Future Reading 187 7 Ethics, Social Responsibility, and the Business Manager 188 Definition of Business Ethics and the Social Responsibility of Business 190 Business Ethics 190 The Social Responsibility of Business 191 In re Exxon Valdez 191
  • 23. Theories of Ethical Thought 193 Consequential Theories 193 Deontological Theories 194 Humanist Theories 195 Codes of Ethics 195 Individual Codes of Ethics 195 Corporate Codes of Ethics 197 Industry Codes of Ethics 198 Professional Codes of Ethics 198 Schools of Social Responsibility 201 Profit-Oriented School 201 Managerial School 204 Institutional School 204 Cooper Industries v. Leatherman Tool Group, Inc. 205 Professional Obligation School 205 Regulation School 206 Johnson Construction Co. v. Shaffer 206 Global Dimensions of Ethics and Social Responsibility 207 Code of Conduct for Transnational Corporations 207 Summary 207 Review Questions 208 Review Problems 208
  • 24. Case Problems 209 Thinking Critically about Relevant Legal Issues 210 Assignment on the Internet 211 On the Internet 211 For Future Reading 211 A01_KUBA4030_08_SE_FM.indd 7 19/11/15 2:58 pm 8 The International Legal Environment of Business 213 Dimensions of the International Environment of Business 214 Political Dimensions 214 Economic Dimensions 215 Cultural Dimensions 215 Corruption and Trade 216 United States v. Kay 216 Legal Dimensions 219 Selected National Legal Systems 221 Crosby v. National Foreign Trade Council 222 Methods of Engaging in International Business 223 Trade 223
  • 25. International Licensing and Franchising 224 Russian Entertainment Wholesale, Inc. v. Close-Up International, Inc. 225 Foreign Direct Investment 226 In re Union Carbide Corp. Gas Plant Disaster v. Union Carbide Corp. 227 Risks of Engaging in International Business 229 Expropriation of Private Property 229 Sovereign Immunity Doctrine 230 Keller v. Central Bank of Nigeria 230 Act-of-State Doctrine 231 Linde v. Arab Bank, PLC 231 Export and Import Controls 232 Legal and Economic Integration as a Means of Encouraging International Business Activity 233 The World Trade Organization 233 The European Union 236 North American Free Trade Agreement 240 Global Dispute Resolution 242 Arbitration 243 Litigation 243
  • 26. Globalization: Hurts or Helps 243 Summary 244 Review Questions 244 Review Problems 245 Case Problems 245 Thinking Critically about Relevant Legal Issues 246 Assignment on the Internet 246 On the Internet 247 For Future Reading 247 P A R T T W O Private Law and the Legal Environment of Business 249 9 The Law of Contracts and Sales—I 250 Definition, Sources, and Classifications of Contract Law 251 Definition 251 Sources of Contract Law 251 Paramount Contracting Co. v. DPS Industries, Inc. 252 Classifications of Contracts 253
  • 27. Pan Handle Realty, LLC v. Olins 254 Audito v. City of Providence 255 Elements of a Legal Contract 257 Legal Offer 257 Beer v. Chase 258 Legal Acceptance 260 The Private Movie Company, Inc. v. Pamela Lee Anderson et al. 260 Consideration 263 Genuine Assent 264 Stambovsky v. Ackley and Ellis Realty 265 Competent Parties 267 Legal Object 269 Brown & Brown, Inc. v. Johnson 270 Contracts That Must Be in Writing 271 Contracts for the Sale of an Interest in Land 271 Contracts to Pay the Debts of Another 271 Contracts Not Performable in One Year 271 Sale of Goods of $500 or More 272 Iacono v. Lyons 272 Nonbusiness Contracts 273 Parol Evidence Rule 273
  • 28. Third-Party Beneficiary Contracts and Assignment of Rights 274 Types of Third-Party Beneficiary Contracts 274 Assignment of Rights 274 Summary 275 Review Questions 276 Review Problems 276 Case Problems 277 Thinking Critically about Relevant Legal Issues 278 On the Internet 278 For Future Reading 278 viii C O N T E N T S A01_KUBA4030_08_SE_FM.indd 8 19/11/15 2:58 pm 10 The Law of Contracts and Sales—II 279 Methods of Discharging a Contract 280 Discharge by Performance 280 Kohel v. Bergen Auto Enterprises, L.L.C. 280
  • 29. Performance to Satisfaction of Another 281 Material Breach of Contract 281 Discharge by Mutual Agreement 282 Discharge by Conditions Precedent and Subsequent 282 Architectural Systems, Inc. v. Gilbane Building Co. 283 Discharge by Impossibility of Performance 283 Discharge by Commercial Impracticability 284 Contracts with the Government and the Sovereign Acts Doctrine 284 Facto v. Pantagis 285 Remedies for a Breach of Contract 286 Monetary Damages (“Legal” Remedies) 286 Hallmark Cards, Inc. v. Murley 287 Arrowhead School District No. 75, Park County, Montana v. James A. Klyap, Jr. 288 Equitable Remedies 289 Remedies for Breach of a Sales Contract (Goods) 290 Fitl v. Strek 290 E-Contracts 291 E-Signatures 292 The Uniform Computer Information
  • 30. Transaction Act 292 Global Dimensions of Contract and Sales Law 293 Summary 294 Review Questions 295 Review Problems 295 Case Problems 296 Thinking Critically about Relevant Legal Issues 297 Assignment on the Internet 297 On the Internet 297 For Future Reading 298 11 The Law of Torts 299 The Goals of Tort Law 299 Damages Available in Tort Cases 300 Compensatory Damages 300 Nominal Damages 301 Punitive Damages 301 Young v. Becker & Poliakoff 303 Classifications of Torts 307 Intentional Torts 307 Intentional Torts against Persons 307
  • 31. Nemet Chevrolet, Ltd. v. Consumeraffairs .com, Inc. 310 Intentional Torts against Property 317 Intentional Torts against Economic Interests 318 Negligent Torts 319 Elements of Negligence 319 Defenses to Negligence 322 Coomer v. Kansas City Royals 323 Venkateswarlu Thota and North Texas Cardiology Center v. Margaret Young 324 Strict Liability Torts 326 Global Dimensions of Tort Law 326 Summary 327 Review Questions 327 Review Problems 328 Case Problems 328 Thinking Critically about Relevant Legal Issues 330 Assignment on the Internet 331 On the Internet 331
  • 32. For Future Reading 331 12 Product and Service Liability Law 332 Theories of Recovery in Product Liability Cases 333 Negligence 333 Mutual Pharmaceutical Company, Inc. v. Bartlett 340 Strict Liability in Contract for Breach of Warranty 341 Williams v. Braum Ice Cream Store, Inc. 343 Strict Liability in Tort 346 Welge v. Planters Lifesavers Co. 347 Liability to Bystanders 351 Market Share Liability 351 Service Liability 352 Accountants’ Liability 353 Global Dimensions of Product Liability Law 353 Summary 355 Review Questions 355 Review Problems 356
  • 33. Case Problems 356 C O N T E N T S ix A01_KUBA4030_08_SE_FM.indd 9 19/11/15 2:58 pm Thinking Critically about Relevant Legal Issues 357 Assignment on the Internet 358 On the Internet 358 For Future Reading 359 13 Law of Property: Real and Personal 360 Real Property 361 Definition of Real Property 362 Extent of Ownership 362 Interests in Real Property 362 Fee Simple Absolute 362 Conditional Estate 362 Life Estate 363 Future Interest 363 Leasehold Estates 364 Easements 364 License 364 Co-Ownership 364 Condominiums and Cooperatives 365 Plum Creek C.A. v. Oleg Borman 365
  • 34. Voluntary Transfer of Real Property 368 Execution 368 Delivery 370 Acceptance 370 Recording 370 Involuntary Transfer of Real Property 370 Adverse Possession 370 Condemnation 371 Susette Kelo et al. Petitioners, v. City of New London, Connecticut et al. 372 Restrictions on Land Use 374 Restrictive Covenants 374 Zoning 374 Emine Bayram v. City of Binghamton and City of Binghamton Zoning Board of Appeals 375 Other Statutory Restrictions on Land Use 377 Personal Property 378 Voluntary Transfer of Personal Property 378 Involuntary Transfers of Personal Property 378 Bailments 379 Global Dimensions of Property Law 379 Summary 380
  • 35. Review Questions 380 Review Problems 381 Case Problems 381 Thinking Critically about Relevant Legal Issues 382 Assignment on the Internet 383 On the Internet 383 For Future Reading 383 14 Intellectual Property 385 Introduction to Intellectual Property 385 Trademarks 385 Toys “R” Us, Inc. v. Canarsie Kiddie Shop, Inc. 386 Trade Dress 389 Federal Trademark Dilution Act of 1995 391 Victor Moseley and Cathy Moseley et al., dba Victor’s Little Secret v. V Secret Catalogue, Inc. et al. 391 Patents 393 Bilski v. Kappos 393
  • 36. Trade Secrets 396 Economic Espionage Act 397 Copyrights 397 Fair Use Doctrine 398 Copyrights in the Digital Age 398 American Broadcasting Company, Inc. et. al. v. Aereo, Inc. 399 RealNetworks, Inc. v. DVD Control Copy Association, Inc. et al. 402 Global Dimensions of Intellectual Property Law 402 Summary 403 Review Questions 404 Review Problems 404 Case Problems 404 Thinking Critically about Relevant Legal Issues 406 Assignment on the Internet 407 On the Internet 407 For Future Reading 407 15 Agency Law 408 Definition and Types of Agency Relationships 409
  • 37. Definition of Agency 409 Types of Agency Relationships 409 Coker v. Pershad 411 Creation of an Agency Relationship 412 Expressed Agency or Agency by Agreement 413 Agency by Implied Authority 413 x C O N T E N T S A01_KUBA4030_08_SE_FM.indd 10 19/11/15 2:58 pm Penthouse International v. Barnes 414 Agency through Ratification by Principal 415 Agency by Estoppel or Apparent Authority 415 Motorsport Marketing, Inc. v. Wiedmaier, Inc. 416 Duties of Agents and Principals 416 Principal’s Duties to Agent 416 Agent’s Duties to Principal 417 Cousins v. Realty Ventures, Inc. 417 Gossels v. Fleet National Bank 419 Principal’s and Agent’s Liability to Third Parties 420
  • 38. Contractual Liability 420 McBride v. Taxman Corp. 421 E-Commerce: Intelligent Agents 421 Liability of Disclosed, Partially Disclosed and Undisclosed Principals 422 Liability of Undisclosed Principal 422 Tort Liability 422 Tort Liability and Negligence 423 Auer v. Paliath 423 Criminal Liability 424 Termination of the Principal–Agent Relationship 424 Termination by Agreement 424 Termination by Operation of Law 425 Gaddy v. Douglass 425 Global Dimensions of Agency Law 426 Japan 427 European Union 427 U.S. Agents Abroad 427 Summary 428 Review Questions 428 Review Problems 428 Case Problems 429 Thinking Critically about Relevant Legal
  • 39. Issues 430 Assignment on the Internet 431 On the Internet 431 For Future Reading 431 16 Law and Business Associations—I 432 Factors Influencing a Business Manager’s Choice of Organizational Form 434 Some Common Forms of Business Organization in the United States 434 Sole Proprietorships 434 Quality Car & Truck Leasing, Inc. v. Sark 435 General Partnerships 436 In re KeyTronics 438 Enea v. Superior Court of Monterey County 439 Limited Partnerships and Limited Liability Limited Partnerships 443 Specialized Forms of Business Associations 444 Joint Stock Company 444 Syndicate 445
  • 40. Joint Venture 445 Franchising 445 Holiday Inn Franchising, Inc. v. Hotel Associates, Inc. 446 Global Dimensions of Business Associations 447 Outsourcing 448 Summary 449 Review Questions 449 Review Problems 449 Case Problems 450 Thinking Critically about Relevant Legal Issues 451 Assignment on the Internet 451 On the Internet 452 For Future Reading 452 17 Law and Business Associations— II 453 The Corporation 453 Classification of Corporations 454 Closely Held Corporation 454 Publicly Held Corporation 455 Multinational or Transnational
  • 41. Corporation 455 Subchapter S Corporation 455 ROBS Corporation 455 Professional Corporation 455 Nonprofit Corporation 456 Creation of Corporations 456 Brennan’s Inc. v. Colbert 457 Financing of Corporations 458 Debt Financing 458 Equity Financing 459 Consideration 461 Operation of Corporations 462 The Role of the Shareholders 462 The Role of the Board of Directors 464 C O N T E N T S xi A01_KUBA4030_08_SE_FM.indd 11 19/11/15 2:58 pm In re Abbott Laboratories Derivative Shareholders Litigation 465 The Role of the Officers and Managers 466 Fiduciary Obligations of Directors, Officers, and Managers 466 Beam v. Stewart 467 Smith v. Van Gorkom 469
  • 42. Limited Liability Companies 473 The Uniform Limited Liability Act 473 LLC Characteristics 473 Creating a Limited Liability Company 473 Duration of the LLC 474 Financing of the LLC 474 Control Considerations 474 Tax Ramifications 474 Gatz Properties, LLC v. Auriga Capital Corporation 474 Global Dimensions of Corporations: A “Big Fat Greek” Bailout II and III 476 Summary 476 Review Questions 477 Review Problems 477 Case Problems 478 Thinking Critically about Relevant Legal Issues 478 Assignment on the Internet 479 On the Internet 479 For Future Reading 480 P A R T T H R E E
  • 43. Public Law and the Legal Environment of Business 481 18 The Law of Administrative Agencies 482 Introduction to Administrative Law and Administrative Agencies 483 Administrative Law 483 Administrative Agencies 484 Creation of Administrative Agencies 485 Functions of Administrative Agencies 486 Rulemaking 486 City of Arlington v. Federal Communications Commission 488 Adjudication 489 Fox Television Stations, Inc. v. Federal Communications Commission 493 Administrative Activities 494 Limitations on Administrative Agencies’ Powers 494 Statutory Limitations 494 Institutional Limitations 494 State and Local Administrative Agencies 496 Vonage Holdings Corp. v. Minnesota Public
  • 44. Utilities Commission 497 Global Dimensions of Administrative Agencies 498 Summary 498 Review Questions 498 Review Problems 498 Case Problems 499 Thinking Critically about Relevant Legal Issues 501 Assignment on the Internet 501 On the Internet 501 For Future Reading 502 19 The Employment Relationship and Immigration Laws 503 Wage and Hour Laws 504 Unemployment Compensation 506 Cassandra Jenkins v. American Express Financial Corp. 509 Consolidated Omnibus Budget Reconciliation Act of 1985 510 Workers’ Compensation Laws 510 Coverage 510
  • 45. Recoverable Benefits 512 The Claims Process 12 Benefits of the Workers’ Compensation System 512 The Family and Medical Leave Act of 1993 513 Major Provisions 513 Jeffrey Bonkowski v. Oberg Industries, Inc. 514 Remedies for Violations of the FMLA 516 The Future of the FMLA 517 The Occupational Safety and Health Act of 1970 518 Occupational Safety and Health Administration 518 Occupational Safety and Health Review Commission 521 National Institute for Occupational Safety and Health 521 Implementation of the OSH Act 523 xii C O N T E N T S A01_KUBA4030_08_SE_FM.indd 12 19/11/15 2:58 pm Employee Privacy Rights 523 Electronic Monitoring and
  • 46. Communication 523 Brian Pietrylo and Doreen Marino, Plaintiffs v. Hillstone Restaurant Group d/b/a Houston’s, Defendant 524 Drug Testing 527 Other Testing 528 Immigration Law 529 Immigration Reform and Control Act of 1986 529 Authorized Noncitizen Workers 530 Global Dimensions of the Employment Relationship 532 Summary 533 Review Questions 533 Review Problems 533 Case Problems 534 Thinking Critically about Relevant Legal Issues 535 Assignment on the Internet 536 On the Internet 536 For Future Reading 537 20 Laws Governing Labor– Management Relations 538
  • 47. Structure of the Primary U.S. Labor Legislation and the Mechanisms for Its Enforcement 540 The Wagner Act of 1935 540 The Taft–Hartley Act of 1947 541 The Landrum–Griffin Act of 1959 542 The National Labor Relations Board 542 Labor Organizing 548 Board Rules 548 Unfair Labor Practices by Employers 549 Gaetano & Associates, Inc. v. National Labor Relations Board 553 Unfair Labor Practices by Employees 554 Laborers’ International Union of North America, Local 872, AFL–CIO, and Stephanie Shelby 554 Organizing the Appropriate Unit 556 Specialty Healthcare and Rehabilitation Center of Mobile and United Steelworkers, District 9, Petitioner 557 The Collective Bargaining Process 559 Subjects of Bargaining 560 Strikes, Boycotts, and Picketing 560 Strikes 561
  • 48. Boycotts 563 Picketing 563 Global Dimensions of Labor–Management Relations 564 Summary 564 Review Questions 564 Review Problems 565 Case Problems 565 Thinking Critically about Relevant Legal Issues 567 Assignment on the Internet 568 On the Internet 568 For Future Reading 568 21 Employment Discrimination 569 The Employment-at-Will Doctrine 570 Constitutional Provisions 572 The Civil Rights Acts of 1866 and 1871 572 Applicability of the Acts 572 The Equal Pay Act of 1963 573 Equal Work 574 Defenses 574 Remedies 575
  • 49. The Civil Rights Act of 1964, as Amended (Title VII), and the Civil Rights Act of 1991 575 Applicability of the Act 575 Proof in Employment Discrimination Cases 576 Teresa Harris v. Forklift Systems, Inc. 580 Vance v. Ball State University 583 Retaliation 583 Reya C. Boyer-Liberto v. Fontainbleu Corporation 584 Statutory Defenses 586 Protected Classes 588 Enforcement Procedures 592 Remedies 595 Lilly Ledbetter Fair Pay Act of 2009 595 The Age Discrimination in Employment Act of 1967 596 Applicability of the Statute 597 Proving Age Discrimination 597 Jones v. National American University 598 Statutory Defenses 599 Enforcement Procedures 600 Remedies under ADEA 601 The Rehabilitation Act of 1973 601 The Americans with Disabilities Act of 1991 602
  • 50. Covered Individuals 602 C O N T E N T S xiii A01_KUBA4030_08_SE_FM.indd 13 19/11/15 2:58 pm McMillan v. City of New York 604 Enforcement Procedures 606 Remedies 606 Affirmative Action 606 Global Dimensions of Employment Discrimination Legislation 610 Summary 611 Review Questions 612 Review Problems 612 Case Problems 613 Thinking Critically about Relevant Legal Issues 615 Assignment on the Internet 615 On the Internet 616 For Future Reading 616 22 Environmental Law 617
  • 51. Alternative Approaches to Environmental Protection 618 Tort Law 618 Boomer et al. v. Atlantic Cement Co. 618 Government Subsidies Approach 620 Emission Charges Approach 620 Marketable Discharge Permits Approach 620 Direct Regulation Approach 621 The Environmental Protection Agency 621 The National Environmental Policy Act of 1970 623 Threshold Considerations 623 Content of the EIS 623 Brodsky v. United States Nuclear Regulatory Commission 624 Effectiveness of the EIS Process 625 Regulating Water Quality 625 The Federal Water Pollution Control Act … Q.1 Make a presentation slide.Corporate Presentation You are to present a power point and uploaded for week 8 viewing in class discussing the corporation, the issue at hand and state either your support or opposition to the articles position on the corporation and if you agree with the outcome. Identify what changes or recommendations you would present to your personal business if this matter occurred to your corporate entity.Grading Rubrics
  • 52. · A: Every point in this section is met. · B: One point is missed, but the remainder of the requirements is well met. · C: More than one point is missed. · D: The paper misses many of the requirements. · F: The paper was turned in but does not demonstrate that much work was done. · 0: Nothing was submitted, or the material was in violation of school policies such as plagiarism. Q.2 What types of liability does Starbucks face from incidence like this? (Write an answer by reading the below articles) (Professor questions) Within this week the choice which was taken within this group is in line to the article: “Starbucks faces image crisis after arrest of 2 black men.” In the month of April, the year 2018, there was the arrest of two black men namely Donte Robinson and radon nelson. These two were arrested in the Starbucks platform after an employee working within the organization made an inquiry of two men to leave. The reason which made this to happen was the issues of the two men has fled to order anything within the premises. The employee the manger upon the two men the store manager and they told the manager they were waiting for an associate in their business dealing at the stall. In this case thus the two men failed to leave the stall. Shannon Philip the store manager in this case called the police to escort the two men out. This activity took place and the two men were taken from the stall in handcuffs. In my recent time I have been able to visit the Starbucks corporate webpage a site often time and I have seen a lot of messages in relation to the issues of inclusion of diversity. There is a high level of concern in relation to the ideas of the ethical surrounding within this case and the products as well as the diversity issues here too. The concern within this case is inclusive the issues in lien to the firms being concerned for the ideology of being affected by the ethical surrounding in the business platforms. There is need to understand the manner as
  • 53. to how such activities have ability to take place in this case. Starbucks is a larger brand and, in this case, there is more focus into customer services and also treating the users and employees in the-best manner. There is need for the-best in terms of the consumer protection and debtor creditor relations need to be upheld in the-best manner here too. The messages from the Starbucks CEO are there they have the mission to make for a reflection in terms of the fundamental principles which all the affected person will be welcome into the platforms. There is an aspiration for the place to have best inclusion, diversity, equity and also getting to make of accessibility. The presence of diversity will make the firms to become stronger and also there will be better ability to create for the issues and deeply inclusive culture which will allow the space to have better ability at making do the presence of success and growing as one in this case too. However, from the multinational case more than 28000 store there is need to have in place a better way and better intuition within all the day affected within this case. The humans need to have better chance at holding the entities in the wrong way. There is no space in within the employee will have ability to not have anything that is stupid happening. John Gordon who is a specialist and analysis within the pacific management consulting said. The occurrence led to the presence of a lot of protest in the area of Philadelphia. There is need to understand the importance attached to the issues of making for the concept of getting an involvement of the affected within consumer and buyer cases. In this case thus, to make to best environments. Olsen, A. Starbucks faces image crisis after arrest of 2 black men References https://www.chicagotribune.com/business/ct-biz-starbucks- arrest-image-crisis-20180417-story.html (Links to an external site.) (Links to an external site.) Diversity & Inclusion at Starbucks https://www.starbucks.com/responsibility/community/diversity-
  • 54. and-inclusion (Links to an external site.) (Links to an external site.)Retrieved 11/3/2019 Twitter https://twitter.com/Starbucks/status/985200942030012416?ref_s rc=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E98 5200942030012416%7Ctwgr%5E363937393b636f6e74726f6c&r ef_url=https%3A%2F%2Fwww.nytimes.com%2F2018%2F04%2 F15%2Fus%2Fstarbucks-philadelphia-black-men-arrest.html (Links to an external site.) (Links to an external site.) https://www.nytimes.com/2018/04/17/business/starbucks- arrests-racial-bias.html (Links to an external site.) (Links to an external site.) Abrams, R. Starbucks to Close 8,000 U.S. Stores for Racial- Bias Training After Arrests, April 18, 2018. https://www.nytimes.com/2018/04/17/business/starbucks- arrests-racial-bias.html (Links to an external site.) (Links to an external site.) Stevens, M. April 13, 2018. Starbucks C.E.O. Apologizes After Arrests of 2 Black Men https://www.nytimes.com/2018/04/15/us/starbucks-philadelphia- black-men-arrest.html?module=inline (Links to an external site.) (Links to an external site.) Former Starbucks employee sues company, alleges discrimination after two black men were arrested in Philadelphia store https://fox2now.com/2019/11/02/former - starbucks-employee-sues-company-alleges-discrimination-after- two-black-men-were-arrested-in-philadelphia-store/ (Links to an external site.)