Cengage Advantage Books: Law for Business » (17th Edition)

John Ashcroft is currently a distinguished professor of law and government at the Regent University School of Law. He previously served as Attorney General of the United States for four years. Prior to that he served one term in the United States Senate from 1995 to 2001, and had served as Governor of Missouri for two terms. As Governor, Ashcroft balanced eight consecutive budgets during his terms, and Fortune magazine rated him one of the top 10 education governors. Ashcroft was elected to two terms as attorney general of Missouri prior to serving as governor.

In the Senate, Ashcroft took a leading role on key issues such as welfare reform, juvenile crime, and reform of the civil justice system, while authoring significant changes to federal law. He served on the Judiciary; the Commerce, Science, and Transportation; and the Foreign Relations committees and was also the chairman of subcommittees on the Constitution, consumer affairs, and Africa, respectively.

Ashcroft, widely recognized for his innovative use of technology and the Internet, has taught students about using the Internet and on-line information as a tool of citizenship.

Prior to entering public service, Ashcroft taught business law at then Southwest Missouri State University (now Missouri State University) in Springfield, Missouri. He graduated with honors from Yale University in 1964, met his wife, Janet, at the Law School of the University of Chicago where they each received law degrees, and later co-authored two college textbooks together.

Janet Ashcroft has been a full-time faculty member at Howard University, teaching business law, taxation, and accounting, and serving on the Judiciary Committee at the university. She is a member of the Board of Trustees of Patrick Henry College and has served on the Visiting Committee of the University of Chicago, chair of the Alzheimer's disease Task Force for the State of Missouri and as state liaison for the National Alzheimer's Association.

Practical and accessible, LAW FOR BUSINESS provides a concise yet complete overview of all key topics in business law, allowing for maximum breadth of coverage for courses with tight time constraints.

Booknews

The latest edition of this overview of the law of commercial transactions adds a number of significant recent cases from the business world. The emphasis is on practical coverage of law pertaining to business, in areas such as contracts, partnerships, property, employer/employee relations, and insurance. Co-author John Ashcroft is currently the Bush administration's attorney general; Janet Ashcroft has taught at Howard U. and Central Bible College, Springfield, MO. Annotation c. Book News, Inc., Portland, OR (booknews.com)

Preface     ix
The Legal System and the Legal Environment of Business     1
Introduction to Law     2
Objectives of Law     3
Roots of Our Legal System     3
The Common Law     3
Equity     3
Sources of Law     4
Civil versus Criminal Law     6
Tort Law     7
Ethics     8
Questions     10
Courts and Court Procedure     11
Function of the Courts     11
Jurisdiction of Courts     12
Classification of Courts     12
Court Officers     17
Procedure in Courts of Record     18
Procedure in Small Claims Court     19
Questions     20
Business Torts and Crimes     21
Torts     21
Crimes     27
Types of Business Crimes     27
Questions     33
Case Problems     34
Government Regulation of Business     37
Purpose of Regulation     38
Administrative Agencies     38
Antitrust     40
Environmental Protection     41
Questions     44
Contracts     45
Nature and Classes of Contracts     46
Requirements for a Contract     47
Contracts Contrasted with Agreements     47
Classification of Contracts     48
Questions     52
Case Problems     53
Offer and Acceptance     55
Requirements of a Valid Offer     56
Invitations to Make Offers     57
Duration of the Offer     59
The Acceptance     60
Counteroffers     61
Inquiries Not Constituting Rejection     62
Manner of Acceptance     62
Questions     63
Case Problems     63
Capacity to Contract     65
Minors     66
Mentally Incompetent Persons     69
Intoxicated Persons     71
Convicts     71
Questions     71
Case Problems     72
Consideration     74
Nature of Consideration     74
Adequacy of Consideration     75
Exceptions to Requirement of Consideration     79
Questions     80
Case Problems     81
Defective Agreements      83
Mistakes     83
Mistakes That Invalidate Contracts     84
Mistakes That Do Not Invalidate Contracts     86
Fraud     88
Duress     90
Undue Influence     91
Remedies for Breach of Contract Because of Fraud, Duress, or Undue Influence     92
Questions     93
Case Problems     94
Illegal Agreements     96
Contracts Prohibited by Statute     97
Contracts Contrary to Public Policy     102
Questions     103
Case Problems     104
Written Contracts     106
Reasons for Written Contracts     106
Statute of Frauds     107
Note Or Memorandum     110
Other Written Contracts     111
Parol Evidence Rule     112
Questions     112
Case Problems     113
Third Parties and Contracts     115
Involving a Third Party     115
Technicalities of an Assignment     119
Joint, Several, and Joint and Several Contracts     121
Questions     123
Case Problems     123
Termination of Contracts     125
Methods by Which Contracts Are Terminated     125
Remedies for Breach of Contract     131
Malpractice     133
Questions     134
Case Problems     134
Summary Cases     137
Personal Property     141
Nature of Personal Property     142
Personal Property     142
Methods of Acquiring Personal Property     144
Bailments     147
The Bailment Agreement     148
Delivery and Acceptance     148
Return of the Bailed Property     149
Types of Bailments     149
Conversion of Bailed Property by the Bailee     151
Questions     152
Case Problems     152
Special Bailments     155
Carriers     155
Liability of Common Carriers of Goods     157
Hotelkeepers     163
Questions     166
Case Problems     166
Summary Cases     169
Sales     171
Sales of Personal Property     172
Property Subject to Sale     172
Sales and Contracts to Sell     173
Sales of Goods and Contracts for Services     174
Price      174
Existing Goods     175
Future Goods     175
Bill of Sale     176
Illegal Sales     177
International Sales Contracts     177
Questions     178
Case Problems     178
Formalities of a Sale     180
Multiple Purchases and the Statute of Frauds     181
When Proof of Oral Contract Is Permitted     181
Nature of the Writing Required     183
Questions     185
Case Problems     185
Transfer of Title and Risk in Sales Contracts     187
Potential Problems in Sales Transactions     188
Classification of Sales Transactions     188
Ownership, Insurable Interests, and Risk of Loss in Particular Transactions     189
Damage to Or Destruction of Goods     192
Sales on Approval and with Right to Return     193
Special Rules on Transfer of Title     194
Questions     197
Case Problems     198
Warranties, Product Liability, and Consumer Protection     200
Express Warranties     201
Implied Warranties     202
Full Or Limited Warranties     202
Warranties of All Sellers      202
Additional Warranties of Merchant     204
Warranties in Particular Sales     206
Exclusion and Surrender of Warranties     207
Product Liability     209
Identity of Parties     211
Nature and Cause of Harm     211
Consumer Protection     212
Questions     218
Case Problems     218
Summary Cases     221
Negotiable Instruments     223
Nature of Negotiable Instruments     224
History and Development     224
Negotiation     225
Order Paper and Bearer Paper     225
Classification of Commercial Paper     226
Parties to Negotiable Instruments     227
Negotiation and Assignment     229
Credit and Collection     230
Electronic Fund Transfers     230
Questions     231
Case Problems     232
Essentials of Negotiability     234
Requirements     234
Issue and Delivery     239
Delivery of an Incomplete Instrument     239
Dare and Place     240
Questions     241
Case Problems     241
Promissory Notes and Drafts     243
Notes     243
Drafts     245
Checks     248
Questions     253
Case Problems     254
Negotiation and Discharge     256
Place of Indorsement     257
Multiple Payees     258
Kinds of Indorsements     259
Liability of Indorser     261
Obligation of Negotiator of Bearer Paper     261
Discharge of the Obligation     262
Questions     262
Case Problems     263
Liabilities of Parties and Holders in Due Course     265
Liability for the Face of the Paper     267
Liability for Warranties     271
Holders in Due Course     272
Holder Through a Holder in Due Course     274
Holders of Consumer Paper     274
Questions     276
Case Problems     276
Defenses     279
Classification of Defenses     280
Miscellaneous Matters     284
Questions     284
Case Problems     285
Summary Cases     287
Agency and Employment     291
Nature and Creation of an Agency      292
Importance of Agency     293
What Powers May be Delegated to an Agent?     293
Who May Appoint an Agent?     293
Who May Act as an Agent?     294
Classification of Agents     294
Additional Types of Agents     295
Extent of Authority     295
Creation of an Agency     297
Other Employment Relationships     299
Questions     300
Case Problems     300
Operation and Termination of an Agency     303
Agent's Duties to Principal     303
Principal's Duties to Agent     305
Agent's Liabilities to Third Parties     307
Principal's Duties and Liabilities to Third Parties     308
Termination of an Agency by Acts of the Parties     308
Termination by Operation of Law     309
Notice of Termination     310
Questions     311
Case Problems     311
Employer and Employee Relations     314
Creation of Employer and Employee Relationship     315
Duties and Liabilities of the Employer     316
Common-law Defenses of the Employer     317
Statutory Modification of Common Law     317
Liabilities of the Employer to Third Parties     319
Employee's Duties to the Employer     320
Federal Social Security Act     321
Questions     323
Case Problems     323
Employees' Rights     325
Discrimination     326
Testing     332
Protections     334
Other Sources of Rights     336
Questions     337
Case Problems     337
Labor Legislation     340
The Fair Labor Standards Act     341
The National Labor Relations Act and the Labor Management Relations Act     342
The Labor-Management Reporting and Disclosure Act     345
Questions     347
Case Problems     347
Summary Cases     350
Business Organization     353
Introduction to Business Organization     354
Sole Proprietorship     354
Partnership     357
Corporations     360
Questions     363
Case Problems     363
Creation and Operation of a Partnership     365
Partnership Agreements     365
Partnership Firm Name     367
Partner's Interest in Partnership Property     368
Duties of Partners     368
Rights of Partners     370
Liabilities of Partners     372
Nature of Partnership Liabilities     373
Authority of a Partner     374
Sharing of Profits and Losses     374
Questions     374
Case Problems     375
Dissolution of a Partnership     378
Dissolution by Acts of the Parties     379
Dissolution by Court Decree     380
Dissolution by Operation of Law     381
Effects of Dissolution     382
Notice of Dissolution     383
Distribution of Assets     383
Questions     384
Case Problems     384
Nature of a Corporation     387
Classification by Purpose     387
Classification by State of Incorporation     389
Formation of a Corporation     389
Liability on Promoter's Contracts and Expenses     389
Issuance of Stock     390
Articles of Incorporation     391
Powers of a Corporation     391
Ultra Vires Contracts     392
Questions     393
Case Problems      393
Ownership of a Corporation     395
Ownership     396
Stock Certificate     396
Transfer of Stock     396
Classes of Stock     397
Kinds of Stock     398
Stock Options     400
Dividends     400
Laws Regulating Stock Sales     401
Questions     403
Case Problems     403
Management and Dissolution of a Corporation     405
Stockholders' Meetings     406
Rights of Stockholders     409
Directors     410
Officers     411
Liabilities of Directors and Officers     412
Corporate Combinations     413
Dissolution     414
Questions     414
Case Problems     414
Summary Cases     417
Risk-Bearing Devices     421
Principles of Insurance     422
Terms Used in Insurance     423
Types of Insurance Companies     424
Who May be Insured     424
Some Legal Aspects of the Insurance Contract     426
Questions     429
Case Problems     430
Types of Insurance      432
Life Insurance     432
Property Insurance     436
Description of the Property     438
Coinsurance     438
Repairs and Replacements     439
Defense and Notice of Lawsuits     439
Automobile Insurance     440
Questions     444
Case Problems     444
Security Devices     446
Guaranty and Suretyship     446
Secured Credit Sales     451
Effect of Default     453
Questions     454
Case Problems     455
Bankruptcy     457
Who Can File a Petition of Bankruptcy?     458
Kinds of Debtors     458
Required Counselling     459
Procedure in a Chapter 7 Case     459
Nonliquidation Plans     459
Eligibility Restrictions for Chapter 7     460
Exempt Property     461
Included Property     461
Debtor's Duties During Bankruptcy     461
Proof of Claims     462
Reclamations     462
Types of Claims     462
Priority of Claims     463
Discharge of Indebtedness     463
Debts not Discharged      463
Questions     464
Case Problems     464
Summary Cases     466
Real Property     469
Nature of Real Property     470
Distinguishing Real Property     470
Multiple Ownership     472
Estates in Property     474
Other Interests in Real Property     475
Acquiring Real Property     477
Questions     478
Case Problems     478
Transfer of Real Property     480
Deeds     480
Provisions in a Deed     483
Delivery     485
Recording     485
Abstract of Title     486
Title Insurance     486
Questions     486
Case Problems     486
Real Estate Mortgages     489
The Mortgage Contract     490
Recording     490
Duties of the Mortgagor     492
Rights of the Mortgagor     493
Foreclosure     495
Assignment of the Mortgage     496
Deed of Trust     496
Mortgage Insurance     497
Questions     497
Case Problems      498
Landlord and Tenant     500
The Lease     503
Types of Tenancies     503
Rights of the Tenant     505
Duties of the Tenant     506
Rights of the Landlord     507
Duties of the Landlord     507
Termination of the Lease     508
Improvements     510
Discrimination     511
Questions     511
Case Problems     511
Wills, Inheritances, and Trusts     513
Limitations on Disposition of Property     514
Terms Common to Wills     515
Distinguishing Characteristics of a Will     515
Formalities     515
Special Types of Wills     516
The Wording of a Will     517
Revocation     517
Codicils     517
Abatement and Ademption     519
Probate of a Will     519
When Administration Is Unnecessary     520
Title by Descent     520
Per Capita and Per Stirpes Distribution     520
Administrators     522
Trusts     522
Questions     525
Case Problems     525
Summary Cases      528
Table of Cases     T1
Glossary     G1
Index     I1