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(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.

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THE LEGAL

ENVIRONMENT

BUSINESS OF

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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

S I X T H E D I T I O N

ENVIRONMENT

BUSINESS OF

Boston Columbus Indianapolis New York San Francisco Upper Saddle River

Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal TorontoDelhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

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Copyright © 2012, 2009, 2006, 2003, 1999 Pearson Education, Inc., Upper Saddle River, New Jersey

04758 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 likewise To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department.

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10 9 8 7 6 5 4 3 2 1 ISBN 10: 0-13-266484-4 ISBN 13: 978-0-13-266484-4

Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text.

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.

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NANCY K KUBASEK AND M NEIL BROWNE

In memory of Professor Thomas Dunfee

of the Wharton School of Finance

BARTLEY A BRENNAN

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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 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

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1 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

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Classifications 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

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On 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

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Gonzales 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

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Summary 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

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8 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

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In 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

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Competent 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,

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Review 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

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On 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

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Case 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

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Cousins 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

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Review 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

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P 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.;

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The 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

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Thinking 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

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23 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

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24 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

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Legislation 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

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Assignment 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

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Global 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

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The 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

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• 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)

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• 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

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The 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

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Kimber 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

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NANCY 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

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University 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

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Introduction 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

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