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
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7. E I G H T H E D I T I O N
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1. Industrial laws and legislation—United States. 2. Trade
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3. Commercial law—United States. 4. Critical thinking. I.
Brennan, Bartley A., author.
II. Browne, M. Neil, author. III. Title.
KF1600.K83 2015a
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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
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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
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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
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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
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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
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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
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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
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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
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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.)