(BQ) Part 1 book The legal environment of business has contents: Critical thinking and legal reasoning, the american legal system, alternative tools of dispute resolution, constitutional principles, cyberlaw and business, the international legal environment of business,...and other contents.
Trang 2THE LEGAL
ENVIRONMENT
BUSINESS OF
Trang 4A C r i t i c a l T h i n k i n g A p p r o a c h
S I X T H E D I T I O N
ENVIRONMENT
BUSINESS OF
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Trang 5Copyright © 2012, 2009, 2006, 2003, 1999 Pearson Education, Inc., Upper Saddle River, New Jersey
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Library of Congress Cataloging-in-Publication Data
Kubasek, Nancy.
The legal environment of business : a critical thinking approach / Nancy K.
Kubasek, Bartley A Brennan, M Neil Brown — 6th ed.
p cm.
ISBN-13: 978-0-13-266484-4
ISBN-10: 0-13-266484-4
1 Industrial laws and legislation—United States 2 Business law—United
States 3 Trade regulation—United States I Brennan, Bartley A II
Brown, M Neil III Title.
Trang 6NANCY K KUBASEK AND M NEIL BROWNE
In memory of Professor Thomas Dunfee
of the Wharton School of Finance
BARTLEY A BRENNAN
Trang 8P 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 15
3 The American Legal System 33
4 Alternative Tools of Dispute Resolution 70
5 Constitutional Principles 99
6 Cyberlaw and Business 134
7 White-Collar Crime and the Business Community 160
8 Ethics, Social Responsibility, and the Business Manager 202
9 The International Legal Environment of Business 228
P A R T T W O
Private Law and the Legal Environment of Business 261
10 The Law of Contracts and Sales—I 262
11 The Law of Contracts and Sales—II 289
12 The Law of Torts 309
13 Product and Service Liability Law 342
14 Law of Property: Real and Personal 372
15 Intellectual Property 394
16 Agency Law 413
17 Law and Business Associations—I 434
18 Law and Business Associations—II 453
P A R T T H R E E
Public Law and the Legal Environment of Business 477
19 The Law of Administrative Agencies 478
20 The Employment Relationship 499
21 Laws Governing Labor–Management Relations 527
22 Employment Discrimination 557
23 Environmental Law 600
24 Rules Governing the Issuance and Trading of Securities 629
25 Antitrust Laws 680
26 Laws of Debtor–Creditor Relations and Consumer Protection 721
APPENDIX A The Constitution Of the United States 763
APPENDIX B Uniform Commercial Code (2000 Official Text), Article 2 769
GLOSSARY 783
INDEX 797
vii
Trang 101 Critical Thinking and Legal Reasoning 2
The Importance of Critical Thinking 2
A Critical Thinking Model 3
The Critical Thinking Steps 5
Applying the Critical Thinking Approach 13
Assignment on the Internet 14
On the Internet 14
For Future Reading 14
2 Introduction to Law and the Legal Environment
of Business 15
Definition of the Legal Environment of Business 16
Definition of Law and Jurisprudence 17
Sources of Law 21
ix
Trang 11Classifications of Law 26
Global Dimensions of the Legal Environment of Business 28Summary 28
Review Questions 28Review Problems 29Case Problems 29Thinking Critically about Relevant Legal Issues 31Assignment on the Internet 31
On the Internet 32For Future Reading 32
3 The American Legal System 33Jurisdiction 33
World-Wide Volkswagen Corp v Woodson, District Judge
West Virginia University Board of Governors for and on Behalf
Venue 40The Structure of the Court System 42
The Actors in the Legal System and their Relationship
to the Business Community 45
The Adversary Process 49
Steps in Civil Litigation and the Role of Businesspersons 50
Trang 12On the Internet 69
For Future Reading 69
4 Alternative Tools of Dispute Resolution 70
Negotiation and Settlement 71
Minitrials 87
Early Neutral Case Evaluation 88
Private Trials 88
Summary Jury Trials 89
Court-Annexed Alternative Dispute Resolution 89
Use of Court-Annexed ADR in the State and Federal
The Future of Alternative Dispute Resolution 91
Global Dimensions of Alternative Dispute Resolution 92
Summary 93
Review Questions 94
Review Problems 94
Case Problems 94
Thinking Critically about Relevant Legal Issues 97
Assignment on the Internet 97
The Impact of the Commerce Clause on Business 104
Trang 13Gonzales v Raich 106
United Haulers Association, Inc v Oneida-Herkimer Solid Waste
The Taxing and Spending Powers of the Federal Government 113The Impact of the Amendments on Business 114
Central Hudson Gas & Electric Corp v Public Service
Summary 128Review Questions 129Review Problems 129Case Problems 130Thinking Critically about Relevant Legal Issues 131Assignment on the Internet 132
On the Internet 132For Future Reading 133
6 Cyberlaw and Business 134Cyberlaw and Business: How Law Changes as Society Changes 135
Janet Reno, Attorney General of the United States, et al.,
Intellectual Property Issues in Cyberspace 141
Employment Law Issues in Cyberspace 149
Trang 14Summary 154
Review Questions 155
Review Problems 155
Case Problems 156
Thinking Critically about Relevant Legal Issues 157
Assignment on the Internet 158
On the Internet 159
For Future Reading 159
7 White-Collar Crime and the Business Community 160
Crime and Criminal Procedure 163
Distinguishing Features of White-Collar Crime 168
Common White-Collar Crimes 178
Prevention of White-Collar Crime 186
Federal Laws Used in the Fight Against White-Collar Crime 189
The Racketeer Influenced and Corrupt Organizations
State Laws Used in the Fight Against White-Collar Crime 194
Global Dimensions of White-Collar Crime 195
Summary 196
Review Questions 196
Review Problems 196
Case Problems 197
Thinking Critically about Relevant Legal Issues 199
Assignment on the Internet 200
On the Internet 200
For Future Reading 201
Trang 158 Ethics, Social Responsibility, and the Business Manager 202
Definition of Business Ethics and Social Responsibility 204
Schools of Social Responsibility 216
Global Dimensions of Ethics and Social Responsibility 222
Summary 223Review Questions 223Review Problems 223Case Problems 224Thinking Critically about Relevant Legal Issues 225Assignment on the Internet 226
On the Internet 227For Future Reading 227
9 The International Legal Environment of Business 228Dimensions of the International Environment of Business 229
Methods of Engaging in International Business 238
Trang 16In re Union Carbide Corp Gas Plant Disaster v.
Risks of Engaging in International Business 243
Legal and Economic Integration as a Means of Encouraging
International Business Activity 247
Global Dispute Resolution 256
Thinking Critically about Relevant Legal Issues 259
Assignment on the Internet 260
On the Internet 260
For Future Reading 260
P A R T T W O
10 The Law of Contracts and Sales—I 262
Definition, Sources, and Classifications of Contract Law 263
Elements of a Legal Contract 268
Trang 17Competent Parties 278
Contracts That Must Be in Writing 281
On the Internet 288For Future Reading 288
11 The Law of Contracts and Sales—II 289Methods of Discharging a Contract 290
Remedies for a Breach of Contract 296
Arrowhead School District No 75, Park County,
Trang 18Review Problems 305
Case Problems 306
Thinking Critically about Relevant Legal Issues 307
Assignment on the Internet 307
On the Internet 308
For Future Reading 308
12 The Law of Torts 309
The Goals of Tort Law 309
Damages Available in Tort Cases 310
Negligent Torts 331
Strict Liability Torts 336
Global Dimensions of Tort Law 336
Summary 336
Review Questions 337
Review Problems 337
Case Problems 338
Thinking Critically about Relevant Legal Issues 340
Assignment on the Internet 340
On the Internet 341
For Future Reading 341
13 Product and Service Liability Law 342
Theories of Recovery in Product Liability Cases 343
Market Share Liability 363
Trang 19On the Internet 371For Future Reading 371
14 Law of Property: Real and Personal 372Real Property 373
Interests in Real Property 374
Voluntary Transfer of Real Property 379
Global Dimensions of Property Law 389Summary 390
Review Questions 390Review Problems 391
Trang 20Case Problems 391
Thinking Critically about Relevant Legal Issues 392
Assignment on the Internet 393
Victor Moseley and Kathy Moseley et al., dba Victor’s Little Secret v.
Trade Secrets 401
Patents 401
Copyrights 402
Zomba Enterprises, Inc.; Zomba Songs, Inc., Plaintiffs-Appellees v.
RealNetworks, Inc v DVD Control Copy Association,
Thinking Critically about Relevant Legal Issues 411
Assignment on the Internet 412
Creation of an Agency Relationship 418
Duties of Agents and Principals 420
Trang 21Cousins v Realty Ventures, Inc. 421
Principal’s and Agent’s Liability to Third Parties 424
Liability of Disclosed, Partially Disclosed Principals,
On the Internet 433For Future Reading 433
17 Law and Business Associations—I 434Factors Influencing a Business Manager’s Choice of Organizational Form 436
Some Common Forms of Business Organization in the United States 436
Limited Partnerships and Limited Liability Limited
Specialized Forms of Business Associations 445
Trang 22Review Problems 450
Case Problems 450
Thinking Critically about Relevant Legal Issues 451
Assignment on the Internet 452
On the Internet 452
For Future Reading 452
18 Law and Business Associations—II 453
The Corporation 453
Classification of Corporations 454
Limited Liability Companies 469
Thinking Critically about Relevant Legal Issues 474
Assignment on the Internet 475
On the Internet 475
For Future Reading 476
Trang 23P A R T T H R E E
19 The Law of Administrative Agencies 478Introduction to Administrative Law and Administrative Agencies 479
State and Local Administrative Agencies 492
Vonage Holdings Corp v Minnesota Public Utilities
Global Dimensions of Administrative Agencies 494Summary 494
Review Questions 494Review Problems 495Case Problems 495Thinking Critically about Relevant Legal Issues 497Assignment on the Internet 497
On the Internet 498For Future Reading 498
20 The Employment Relationship 499Wage and Hour Laws 500
Unemployment Compensation 502
Consolidated Omnibus Budget Reconciliation Act of 1985 505Worker’s Compensation Laws 505
The Family and Medical Leave Act of 1993 508
Rachael Schaar, Appellant v Lehigh Valley Health Services, Inc.;
Trang 24The Occupational Safety and Health Act of 1970 511
Employee Privacy Rights 516
Thinking Critically about Relevant Legal Issues 525
Assignment on the Internet 525
On the Internet 526
For Future Reading 526
21 Laws Governing Labor–Management Relations 527
Structure of the Primary U.S Labor Legislation and the Mechanisms
for its Enforcement 529
Labor Organizing 536
Brown University and International Union, United Automobile,
Aerospace and Agricultural Implement Workers of America,
The Collective Bargaining Process 545
Trang 25Thinking Critically about Relevant Legal Issues 554Assignment on the Internet 555
On the Internet 555For Future Reading 556
22 Employment Discrimination 557The Employment-at-Will Doctrine 558Constitutional Provisions 560
The Civil Rights Acts of 1866 and 1871 560
The Equal Pay Act of 1963 561
The Age Discrimination in Employment Act of 1967 580
The Rehabilitation Act of 1973 585The Americans with Disabilities Act of 1991 586
Affirmative Action 588Global Dimensions of Employment Discrimination Legislation 593Summary 594
Review Questions 594Review Problems 595Case Problems 595Thinking Critically about Relevant Legal Issues 597Assignment on the Internet 598
On the Internet 598For Future Reading 598
Trang 2623 Environmental Law 600
Alternative Approaches to Environmental
Protection 601
The Environmental Protection Agency 604
The National Environmental Policy Act of 1970 606
Regulating Water Quality 609
Regulating Air Quality 610
Regulating Hazardous Waste and Toxic Substances 615
The Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, as Amended by the Superfund
The Federal Insecticide, Fungicide, and Rodenticide
The Pollution Prevention Act of 1990 620
Global Dimensions of Environmental Regulation 621
Summary 624
Review Questions 625
Review Problems 625
Case Problems 625
Thinking Critically about Relevant Legal Issues 627
Assignment on the Internet 628
On the Internet 628
For Future Reading 628
Trang 2724 Rules Governing the Issuance and Trading of Securities 629Introduction to the Regulation of Securities 630
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 637
Securities and Transactions Exempt from Registration under
The Securities Exchange Act of 1934 653
Stoneridge Investment Partners, LLC, et al v Scientific-Atlanta
The Wharf (Holdings) Limited v United International
Global Dimensions of Rules Governing the Issuance and Trading
of Securities 673
Trang 28Legislation Governing Foreign Securities Sold
Summary 675
Review Questions 676
Review Problems 676
Case Problems 677
Thinking Critically about Relevant Legal Issues 678
Assignment on the Internet 678
Enforcement of and Exemptions from the Antitrust Laws 684
The Sherman Act of 1890 687
Leegin Creative Leather Products, Inc v PSKS, Inc., dba Kay’s Kloset,
The Clayton Act of 1914 703
Section 3: Tying Arrangements and Exclusive-Dealing
Other Antitrust Statutes 712
Global Dimensions of Antitrust Statutes 714
Trang 29Assignment on the Internet 719
On the Internet 720For Future Reading 720
26 Laws of Debtor–Creditor Relations and Consumer Protection 721Debtor–Creditor Relations 722
The Federal Bankruptcy Code and the Incorporation of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 725
The Federal Trade Commission: Functions, Structure,
Federal Laws Regulating Consumer Credit and Business Debt-CollectionPractices 744
Credit Card Accountability, Responsibility and Disclosure Act of
Dodd-Frank Act and Consumer Protection 756State Consumer Legislation 757
Trang 30Global Dimensions of Consumer Protection Laws 758
Summary 758
Review Questions 759
Review Problems 759
Case Problems 760
Thinking Critically about Relevant Legal Issues 761
Assignment on the Internet 762
On the Internet 762
For Future Reading 762
APPENDIX A THE CONSTITUTION OF THE UNITED STATES 763
APPENDIX B UNIFORM COMMERCIAL CODE (2000 OFFICIAL TEXT),
ARTICLE 2 769GLOSSARY 783
INDEX 797
Trang 32The Legal Environment of Business: A Critical Thinking Approach, 6th
edition, is exactly what its name implies: a comprehensive textbook that not
only helps students develop a thorough understanding of the legal environment
of business, but also enhances their ability to engage in critical thinking and
ethical analysis Students thus develop the knowledge and skills necessary to
survive in an increasingly competitive global environment
The initial motivation for this book was the authors’ perceptions that there
was no legal environment book available that explicitly and adequately
facili-tated the development of students’ critical thinking skills Nor was there a book
that really integrated ethical analysis throughout the text
Some people may argue that the traditional method of case analysis allows
students to develop their critical thinking skills The problem with this approach,
however, is that it focuses only on the analytical skills, while ignoring the
eval-uative component that is really the essence of critical thinking; it also lacks an
ethics component To engage in critical thinking necessarily includes
considera-tion of the impact of values on the outcome being considered
The use of cases in the legal environment of business classroom, however,
can provide an excellent opportunity for the development of students’ critical
thinking abilities when the traditional case method is modified to emphasize
development of these critical thinking skills Additionally, as the students
enhance their critical thinking skills, their understanding of the substance of the
law also improves
The following components of The Legal Environment of Business: A Critical
Thinking Approach ensure that our goal of developing critically thinking
students who understand the important concepts of business law and the legal
environment of business is attained
• An explicit critical thinking model developed by the author of the
best-selling critical thinking textbook is set forth in the first chapter.
An eight-step model has as its base the traditional method of case analysis,
but adds crucial critical thinking questions that also incorporate ethical
analysis The steps are clearly explained, and students are encouraged to
ap-ply the steps to every case in the text
• Additional critical thinking and ethical analysis questions
incorpo-rated at the beginning of each chapter and after selected cases These
additional questions help to reinforce the skills emphasized in the model
• “Thinking Critically about Relevant Legal Issues” essays at the end of
each chapter, which give students additional opportunities to develop
their critical thinking skills These essays, found at the end of each
chap-ter, allow students to extend their use of their newly developed critical
think-ing skills beyond cases to the kinds of arguments they will encounter in their
daily lives
Other Points of Distinction
• Explicit links connecting the law to other disciplines This text is the
only legal environment book to respond to the call for more integration
among courses in colleges of business “Linking Law to Business” boxes
explicitly state how the law in an area directly affects or is affected by a
con-cept in one of the core areas of business, such as accounting, management,
and marketing These boxes appear in every chapter
Trang 33• A balanced mix of classic and current cases This book contains many
of the most significant classic and contemporary cases, including key U.S.Supreme Court decisions handed down as recently as 2008 Wheneverpossible, cases were chosen that not only demonstrated important conceptsbut also contained fact situations that would interest students
• Emphasis on the global environment Many of our students will be
working in countries other than the United States, and U.S companies willhave many dealings with foreign companies Thus, an understanding of theglobal environment is essential for today’s business student This textemphasizes the importance of the global environment by using both thestand-alone and infusion approaches Chapter 9 focuses explicitly on theglobal environment of business, and then we integrate global considerationsinto every chapter with our global dimensions sections and our “Compara-tive Law Corner,” which allows students to see how U.S law compares tothat of other nations around the world The feature can also sensitizestudents to the idea that if something is not working well in our country, itmight make sense to see how some other countries address similar issues.Examples include:
• Eminent domain in Germany
• The judicial system in Germany
• Corporate speech in Canada
• Unions in Sweden
• Pollution controls in Japan
• For Future Reading Feature We all want our students to become lifelong
learners, and we especially want them to continue learning about the law.But how do they know where to go? This feature, found at the end of eachchapter, provides a short list of books and articles related to the material ineach chapter that interested students may read to learn more about the newareas of law they have just discovered
New to This Edition
• Reorganized business organizations materials The coverage of forms ofbusiness organizations has been reorganized, and we have expanded ourcoverage of this area of law from one chapter into two
• Expanded coverage of intellectual property to allow greater discussion ofproperty issues This topic now appears in the new intellectual propertychapter
• Introduction of changes in the law, especially in the securities area, broughtabout by the 2010 Dodd-Frank Wall Street Reform and Consumer ProtectionAct incorporated into chapters 20, 21, 24, and 26
• Updated cases Cases in this edition have been significantly updated Wehave retained the classic cases from the previous edition, as well as thosethat students find especially interesting or that do an exceptional job of il-lustrating an important point of law All of the other cases have been re-placed by more current cases that will be of greater interest to our studentsand that capture the most current changes in the law Examples of new casesinclude:
• West Virginia University Board of Governors for and on behalf of West
Virginia University, Plaintiff v Richard Rodriguez (Chapter 3)
• Hall Street Associates, L.L.C v Mattel, Inc (Chapter 4)
• Centocore, Inc v Patricia Hamilton (Chapter 6)
Trang 34• Case problems Approximately one-third of the case problems from the fifth
edition have been replaced with more current case problems
• Revised “For Further Reading” sections Suggested readings at the end of
each chapter have been updated to emphasize more current legal issues
For Instructors
We offer a variety of both print and electronic supplements to meet the unique
teaching needs of each instructor Electronic versions of the supplements that
accompany this text are available for download by instructors only at our
Instructor Resource Center, at www.pearsonhighered.com/irc
• Instructor’s Manual
• Test Item File
• E-mail case updates Adopters of the book may subscribe to a list that will
provide regular case updates via e-mail, consisting of edited versions of
newly decided cases, as well as suggestions for where they would fit in the
text To subscribe, just send an e-mail to Nancy Kubasek at nkubase@bgsu
.edu and ask to be added to the CTLEB list
• PowerPoints
Trang 36The author would like to acknowledge, with thanks, the following reviewers of
this text:
Robert Aalberts, University of Nevada, Las Vegas
Victor Alicea, Normandale Community College
Carlos Alsua, University of Alaska, Anchorage
S Catherine Anderson, Queens University of Charlotte
Teddy Jack Armstrong, Carl Albert State College
Janie Blankenship, Del Mar College
William Bockanic, John Carroll University
Heidi Bulich, College of Business, Michigan State University
Kimble Byrd, Rowan University
Glenn Chappell, Coker College
William Christian, College of Santa Fe
Linda Christiansen, Indiana University Southeast
Patrick Cihon, Whitman School of Management, Syracuse University
Michael Costello, University of Missouri–St Louis
Robert Cox, Salt Lake Community College
Jamey Darnell, Barton College
Regina Davenport, Pearl River Community College
Julia Derrick, Brevard Community College
Joseph Dworak, San Jose State University
Bruce Elder, University of Nebraska, Kearney
Gail Evans, University of Houston, Downtown
David Forsyth, ASU Polytechnic
Lucky Franks, Bellevue University
Samuel B Garber, DePaul University
Rosario Girasa, Pace University
Van Graham, Gardner-Webb University
John Gray, Loyola College in Maryland
David Griffis, University of San Francisco
Jason Harris, Augustana College
Norman Hawker, Haworth College of Business, Western Michigan University
Richard Hunter, Seton Hall University
Marilyn Johnson, Mississippi Delta Community College
Nancy Johnson, Mt San Jacinto Community College
Catherine Jones-Rikkers, Grand Valley State University
James Kelley, Notre Dame de Namur University
Lara Kessler, Grand Valley State University
Ernest King, University of Southern Mississippi
Audrey Wolfson Latourette, Richard Stockton College of New Jersey
Larry Laurent, McCoy College of Business, Texas State University
Marty Ludlum, Oklahoma City Community College
Vicki Luoma, Minnesota State University
Daniel Lykins, Oregon State University
Bryan Jon Maciewski, Fond du Lac Tribal and Community College
Maurice McCann, Southern Illinois University
George McNary, College of Business Administration, Creighton University
Don Miller-Kermani, Brevard Community College
David Missirian, Bentley College
Odell Moon, Victor Valley College
Henry Moore, University of Pittsburgh, Greensburg
Mark Muhich, Mesabi Range Community & Technical College
xxxv
Trang 37Kimber Palmer, Texas A&M International UniversitySteve Palmer, Eastern New Mexico UniversityDarka Powers, Northeastern Illinois UniversityCharles Radeline, St Petersburg CollegeLinda Reid, University of Wisconsin–WhitewaterBruce Rockwood, College of Business, Bloomsburg UniversityRobert Rowlands, Harrisburg Area Community College
Ira Selkowitz, University of Colorado at Denver and Health Sciences CenterMary Sessom, Cuyamaca College
James Smith, Bellevue UniversityCraig Stilwell, Michigan State UniversityPamela Stokes, Texas A&M–Corpus ChristiKeith Swim, Jr., Mays Business School, Texas A&M UniversityHarold Tepool, Vincennes University
Daphyne Saunders Thomas, James Madison UniversityDavid Torres, Angelo State University
Kyle Usre, Whitworth CollegeDeborah Walsh, Middlesex Community CollegeJoe Walsh, Lees-McRae College
Dalph Watson, Madonna UniversityMary Ellen Wells, Alvernia CollegeJohn Whitehead, Kilgore CollegeJohn Williams, Northwestern State UniversityLevon Wilson, Georgia Southern UniversityRob Wilson, Whitworth College
Andrew Yee, University of San Francisco
Trang 38NANCY KUBASEK is a Professor of Legal Studies at Bowling Green State
University, where she teaches the Legal Environment of Business, Environmental
Law, and an Honors Seminar on Moral Principles For eight years she team-taught
a freshman honors seminar on critical thinking and values analysis She has
published another undergraduate textbook with Prentice Hall, Environmental
Law (7th ed 2010) and more than 75 articles Professor Kubasek’s articles
have appeared in such journals as the American Business Law Journal, the
Journal of Legal Studies Education, the Harvard Women’s Law Journal, the
Georgetown Journal of Legal Ethics, and the Harvard Journal on Legislation She
received her J.D from the University of Toledo College of Law and her B.A from
Bowling Green State University
Active in her professional associations, Professor Kubasek has served as
president of the TriState Regional Academy of Legal Studies in Business, and
president of the national professional association, the Academy of Legal Studies
in Business (ALSB) Committed to helping students become excited about legal
research, she organized the first Undergraduate Student Paper Competition of
the ALSB’s Annual Meeting, an event that now provides an annual opportunity
for students to present their original legal research at a national convention She
has also published several articles with students and has received her university’s
highest award for faculty–student research She states:
The most important thing that a teacher can do is to help his or her
stu-dents develop the skills and attitudes necessary to become lifelong
learn-ers Professors should help their students learn the types of questions to
ask to analyze complex legal issues, and to develop a set of criteria to
apply when evaluating reasons If we are successful, students will leave
our legal environment of business classroom with a basic understanding
of important legal concepts, a set of evaluative criteria to apply when
evaluating arguments that includes an ethical component, and a desire
to continue learning
To attain these goals, the classroom must be an interactive one,
where students learn to ask important questions, define contexts,
gen-erate sound reasons, point out the flaws in erroneous reasoning,
recog-nize alternative perspectives, and consider the impacts that their
decisions (both now and in the future) have on the broader community
beyond themselves
BARTLEY A BRENNAN is an Emeritus Professor of Legal Studies at Bowling
Green State University He is a graduate of the School of Foreign Service,
Georgetown University (B.S International Economics); the College of Law, State
University of New York at Buffalo (J.D.); and Memphis State University (M.A
Economics) He was a volunteer in the United States Peace Corps, was employed
by the Office of Opinions and Review of the Federal Communications
Commis-sion, and worked in the general counsel’s office of a private international
cor-poration Professor Brennan has received appointments as a visiting associate
professor at the Wharton School, University of Pennsylvania, and as a Research
Fellow at the Ethics Resource Center, Washington, D.C He is the author of
arti-cles dealing with the Foreign Corrupt Practices Act of 1977, as amended; the
business judgment rule; law and economics; and business ethics He has
pub-lished numerous articles in such journals as the American Business Law Journal,
University of North Carolina Journal of International Law, and the Notre Dame
Trang 39University Journal of Legislation He is a coauthor of Modern Business Law
(3d ed.) He has testified on amending the Foreign Corrupt Practices Act beforethe Sub-Committee on International Economics and Finance of the House Com-merce, Energy, and Telecommunications Committee
M NEIL BROWNE is a Distinguished Teaching Professor of Economics anddirector of IMPACT, an Honors Residential Learning Community CenteredAround the Principles of Intellectual Discovery and Moral Commitment, at BowlingGreen State University He received a J.D from the University of Toledo and aPh.D from the University of Texas He is the coauthor of seven books and morethan a hundred research articles in professional journals One of his books,
Asking the Right Questions: A Guide to Critical Thinking (6th ed.), is a leading
text in the field of critical thinking His most recent book, Striving for Excellence
in College: Tips for Active Learning, provides learners with practical ideas for
expanding the power and effectiveness of their thinking Professor Browne hasbeen asked by dozens of colleges and universities to aid their faculty in devel-oping critical thinking skills on their respective campuses He also serves on the
editorial board of the Korean Journal of Critical Thinking In 1989, he was a
silver medalist for the Council for the Advancement and Support of Education’sNational Professor of the Year award Also, in 1989, he was named the OhioProfessor of the Year He has won numerous teaching awards on both local andnational levels He states:
When students come into contact with conflicting claims, they can react
in several fashions; my task is to enable them to evaluate these sive attempts I try to provide them with a broad range of criteria and at-titudes that reasonable people tend to use as they think their waythrough a conversation In addition, I urge them to use productive ques-tions as a stimulus to deep discussion, a looking below the surface of anargument for the assumptions underlying the visible component of thereasoning The eventual objectives are to enable them to be highly se-lective in their choice of beliefs and to provide them with the greatersense of meaning that stems from knowing that they have used their ownminds to separate sense from relative nonsense
Trang 40Introduction to the
Law and the Legal
Environment of Business
Part One introduces the concept of critical thinking that provides the
framework for our study of the legal environment of business In
addition, we provide an overview of how the American legal system
works This overview requires us to understand alternative
philosophies of law, alternative philosophies of ethics, how the
constitutional foundations of our legal system work to resolve both
criminal and civil disputes, and alternative methods of resolving
disputes Part One concludes with a discussion of white-collar crime,
a major problem in the legal environment of business