LAW 201 Business Law

Cheeseman, Henry Business Law, 9th Edition (Pearson, 2016).
ISBN-10: 0-13-400400-0
ISBN-13: 978-0-13-400400-6

Students can obtain this text book from the following source:

http://www.mypearsonstore.com/bookstore/business-law-legal-environment-online-commerce-business-9780134004006?xid=PSED

All reading and (optional) homework assignments referenced in this syllabus refer to this text

1) In addition, it is recommended that students have access to MyLawLab®, by Pearson. This can be accessed here:
http://www.mypearsonstore.com/bookstore/mybusinesslawlab-with-pearson-etext-instant-access-0134447328

2) The following study guide will be made available upon enrollment:
Cheeseman, Henry PowerPoint Presentation for Business Law, 9th Edition (Pearson, 2016)

Lesson Overview

Lesson 1: Legal Environment of Business and Online Commerce
Read Chapters 1-4

In this lesson, the students learn about the legal heritage with respect to the digital age. The students look at courts and jurisdiction with respect to judicial, alternative, and e-dispute resolution. The students describe the pretrial litigation process and learn about how a case proceeds through trial. The students look at the use of arbitration and other non-judicial methods of alternative dispute resolution. The students look at e-courts and e-dispute resolution. The students learn the concept of federalism and the doctrine of separation of powers. The students examine the Supremacy Clause of the U.S. Constitution and explain the federal government’s authority to regulate interstate commerce and foreign commerce. The students look at the freedoms of speech, assembly, religion, and the press which are protected by the First Amendment and how commercial speech may be limited. The students explain the doctrines of equal protection and due process.

Lesson 2: Torts, Crimes, and Intellectual Property
Read Chapters 5-8

In this lesson, the students learn about intentional torts and negligence. The students list and explain the elements necessary to prove negligence. The students learn about the business-related torts of disparagement and fraud. The students look at special negligence doctrines and apply the doctrine of strict liability. The students look at product and strict liability. The students identify and describe defects in manufacture and design and identify and describe defects of failure to warn and in packaging. The students learn about the damages recoverable in a product liability lawsuit. The students learn about the concept of intellectual property and define trademark and service mark and describe the penalties for trademark infringement. The students define cyber piracy and describe the penalties for engaging in cyber infringement of intellectual property rights. The students examine criminal law List and describe the essential elements of a crime. The students describe criminal procedure, including arrest, indictment, arraignment, and the criminal trial. The students list and describe cyber crimes and explain the constitutional safeguards provided by the Fourth, Fifth, Sixth, and Eighth Amendments to the U.S. Constitution.

Lesson 3: Contracts and E-Commerce
Read Chapters 9-17

In this lesson, the students differentiate between traditional contracts and e-contracts. The students learn about the concept of agreement. The students look at consideration and promissory estoppels. The students look at capacity and legality. The students learn about the genuineness of assent and undue influence. The students look at the statute of frauds and equitable exceptions. The students look at third party rights and discharge. The students learn about breach of contract and its remedies. The students learn about digital law with respect to e-commerce.

Lesson 4 – Sales and Lease Contracts and Warranties
Read Chapters 18-21

In this lesson, the students learn about the formation of sales and lease contracts. The students describe sales and lease contracts governed by Article 2 and Article 2A of the Uniform Commercial Code (UCC). The students examine Revised Article 2 (Sales) and Article 2A (Leases) as it relates to electronic contracting. The students learn about the title to goods and the risk of loss. The students identify when title to goods passes in shipment and destination contracts. The students examine shipment and delivery terms and describe who bears the risk of loss when goods are lost or damaged in shipment. The students look at who bears the risk of loss when goods are stolen and resold. The students define good faith purchaser for value and buyer in the ordinary course of business. The students learn about remedies for breach of sales and lease contracts. The students identify and describe express warranties. The students learn about the concept of implied warranty of merchantability and implied warranty of fitness for a particular purpose. The students identify warranty disclaimers and determine when they are unlawful. The students examine warranties of good title and no infringements.

Lesson 5 – Negotiable Instruments, Banking, and Electronic Financial Transactions
Read Chapters 22-25

In this lesson, the students look at the creation of negotiable instruments. The students describe drafts and checks and identify the parties to these instruments. The students look at promissory notes and certificates of deposit and identify the parties to these instruments. The students distinguish between instruments payable to order and instruments payable to bearer. The students learn about the idea of a holder in due course and transferability. The students distinguish between blank, special, qualified, and restrictive endorsements. The students define holder and holder in due course and identify and apply the requirements for becoming a holder in due course. The students look at liability, defenses, and discharge and identify universal (real) defenses that can be asserted against a holder in due course. The students describe the Federal Trade Commission rule that limits holder in due course status in consumer transactions. The students describe how parties are discharged from liability on negotiable instruments. The students learn about the banking system and electronic financial transactions. The students describe the difference between certified and cashier’s checks. The students look at the system of processing and collecting checks through the banking system. The students define commercial wire transfer and describe the use of wire transfers in commerce. The students examine the banking reform provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Lesson 6 – Credit, Secured Transactions, and Bankruptcy
Read Chapters 26-28

In this lesson, the students learn about credit and distinguish between unsecured and secured credit. The students describe security interests in real property, such as mortgages and deeds of trust. The students look at the role of the Bureau of Consumer Financial Protection. The students look at secured transactions and bankruptcy and learn about the scope of Revised Article 9 of the UCC. The students look at how a security interest in personal property is created and describe the perfection of a security interest through the filing of a financing statement. The students look at the electronic filing of financing statements and records. The students look at secured transactions and reorganization after bankruptcy and identify and describe the major changes to federal bankruptcy law made by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The students describe how a bankruptcy estate is determined. The students look at Chapter 7 liquidation bankruptcy and how the median and means tests are met for filing for Chapter 7 bankruptcy. The students describe a Chapter 13 adjustment of debts of an individual with regular income. And look at how businesses are reorganized in Chapter 11 bankruptcy.

Lesson 7: Managing Change and Innovation
Read Chapters 29-33

In this lesson, the students learn about agency formation and termination. The students describe how express and implied agencies are created. The students learn about apparent agency and describe how an agency is terminated. The students look at the liability of principals, agents, and independent contractors. The students identify and describe the principal’s liability for the tortious conduct of an agent. The students look at the principal’s and agent’s liability on third-party contracts and describe how independent contractor status is created. The students deal with the issues of employment, worker protection, and immigration law. The students explain how state workers’ compensation programs work and describe the benefits available. The students look at the minimum wage and overtime pay rules of the Fair Labor Standards Act as well as the protections afforded by the Family and Medical Leave Act. The students describe immigration laws and how they apply to the employment relationship. The students also examine labor law and describe how a union is organized and the students explain the consequences of an employer’s illegal interference with a union election. The students describe the process of collective bargaining and the employees’ rights to strike and picket. The students look at labor’s bill of rights and learn about equal opportunity in employment. The students identify and describe gender discrimination, sexual harassment, and genetic information discrimination. The students look at the scope of coverage of the Age Discrimination in Employment Act and describe the protections afforded by the Americans with Disabilities Act.

Lesson 8: Business Organizations, Corporate Governance, Investor Protection, and Business Ethics
Read Chapters 34-42
Written Assignment: Insider Trading

In this lesson, the students look at small business, entrepreneurship, and general partnerships. The students learn about limited partnerships and special partnerships. The students examine corporate formation and financing as well as corporate governance. The students look at the Sarbanes-Oxley Act with respect to corporate acquisitions and multinational corporations. The students learn about limited liability companies and limited liability partnerships as well as franchise and special forms of business. The students look at the issue of investor protection and e-securities transactions and deal with the issues associated with ethics and social responsibility of business.

Written Assignment: Visit the United States Securities and Exchange Commission (SEC) website at www.sec.gov/answers/insider.htm and read the publication “Insider Trading.” Your essay should address the following: What is “insider trading?” What are five (5) examples of insider trading cases that have been brought by the SEC? Why does the SEC condemn insider trading? In your opinion, is insider trading unethical? Why or why not? In your opinion, should it be illegal? Why or why not?
Minimum: 750 words

Lesson 9: Government Regulation
Read Chapters 43-46

In this lesson, the students learn about administrative law and regulatory agency. The students describe the types of government regulation of business. The students list and explain the functions of administrative agencies and describe the provisions of the Administrative Procedure Act. The students explain the procedure for judicial review of administrative agency decision. The students look at consumer protection and describe government regulation of food and food additives. The students look at government regulation of drugs, cosmetics, and medicinal devices. And explain the coverage of Consumer Product Safety Acts. The students learn about environmental protection and describe an environmental impact statement and identify when one is needed. The students look at the Clean Air Act and the Clean Water Act to explain how environmental laws regulate the use of toxic substances and the disposal of hazardous wastes. The students look at the Endangered Species Act protects endangered and threatened species and their habitats. The students learn about antitrust law and learn about the issue of unfair trade practices as defined by the Sherman Act and the Clayton Act. The students learn about how the Federal Trade Commission Act is applied to antitrust cases.

Lesson 10: Personal Property, Real Property, and Insurance
Read Chapters 47-50

In this lesson, the students learn about personal property and bailment and describe the methods for acquiring and transferring ownership in personal property. The students learn about the rules regarding ownership rights in mislaid, lost, and abandoned property and list and describe the elements for creating a bailment. The students learn about real property and list and describe the different types of real property. The students describe the different types of freehold estates and future interests in real property. The students learn about how ownership interests in real property can be transferred and explain the zoning laws. The students look at landlord-tenant law and identify and describe the various types of tenancy and describe the government’s power of eminent domain. The students learn about the issues associated with insurance and list and describe the various types of life, health, and disability insurance. The students identify the risks covered by a standard fire insurance policy and a homeowners’ policy. The students learn about automobile insurance and explain no-fault insurance. The students also examine special forms of business insurance.

Lesson 11: Accounting Profession
Read Chapters 51

In this lesson, the students describe an accountant’s liability to his or her client for breach of contract and fraud. The students describe an accountant’s liability to third parties under the Ultramares doctrine and an accountant’s liability to third parties under the Restatement (Second) of Torts and the foreseeability standard. The students describe the accountant’s civil liability and criminal liability under federal securities laws. The students also describe the duties of accountants under the Sarbanes-Oxley Act.

Lesson 12: Personal Law
Read Chapter 52-53

In this lesson, the students learn about wills, trusts and estates. The students list and describe the requirements for making a valid will and describe the different types of testamentary gifts. The students identify how property is distributed under intestacy statutes if a person dies without a will. The students learn about living wills and health care directives. The students look at family law and learn about the legal requirements of marriage. The students explain adoption and describe how adoption proceedings work. The students define divorce and no-fault divorce and describe divorce proceedings. The students describe how assets are distributed upon the termination of marriage and explain the requirements for awarding spousal support. The students explain child custody, visitation rights, joint custody of children, and child support.

Lesson 13: Global Environment
Read Chapter 54

In this lesson, the students look at international and world trade law. The students describe the U.S. government’s power under the Foreign Commerce Clause and Treaty Clause of the U.S. Constitution. The students learn about a nation’s court jurisdiction over international disputes. The students examine the functions and governance of the United Nations. The students describe the North American Free Trade Agreement (NAFTA) and other regional economic organizations. The students look at the World Trade Organization (WTO) and explain how its dispute-resolution procedure works.

The student’s final grade will be based on a final examination. Examination questions will cover all topics covered in the readings. Students will have two hours to complete the final examination.  Students will be assigned a number grade from 0-100. A letter grade will also be issued in accordance with the following scale:

90-100 – A
80-89 – B
70-79 – C
0-69 – non passing