Debate 1

Comprehensive Edition
Text & Cases

Roger LeRoy Miller
Institute for University Studies

Arlington, Texas

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12th Edition

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12th Edition
Roger LeRoy Miller

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Unit 1 The Legal Environment of 1
1 and Legal Reasoning 2
2 Constitutional 31
3 Ethics in 57
4 Courts and Alternative Dispute Resolution 86
5 Tort 123
6 Product Liability 151
7 Intellectual Property Rights 172
8 Internet , Social Media, and Privacy 200
9 Criminal and Cyber Crime 224

Unit 2 Contracts and E-Contracts 257
10 Nature and Classification 258
11 Agreement 277
12 Consideration 302
13 Capacity and Legality 316
14 Voluntary Consent 335
15 The Statute of Frauds—Writing Requirement 350
16 Performance and Discharge 366
17 Breach and Remedies 382
18 Third Party Rights 402

Unit 3 Commercial Transactions 419
19 The Formation of Sales and Lease Contracts 420
20 Title and Risk of Loss 448
21 Performance and Breach of Sales and Lease Contracts 464
22 Negotiable Instruments 496
23 International and Space 532
24 Banking in the Digital Age 554
25 Security Interests and Creditors’ Rights 577
26 Bankruptcy 607

Unit 4 Agency and Employment 637
27 Agency Relationships in 638
28 Employment, Immigration, and Labor 666
29 Employment Discrimination 694

Unit 5 Organizations 725
30 Sole Proprietorships and Franchises 726
31 All Forms of Partnership 743
32 Limited Liability Companies and Special Forms 767
33 Corporate Formation and Financing 785
34 Corporate Directors, Officers, and Shareholders 807
35 Corporate Mergers, Takeovers, and Termination 826
36 Investor Protection, Insider Trading, and Corporate

Governance 841

Unit 6 Government Regulation 871
37 Administrative 872
38 Antitrust and Promoting Competition 893
39 Consumer and Environmental 918
40 Liability of Accountants and Other Professionals 948

Unit 7 Property and Its Protection 971
41 Personal Property and Bailments 972
42 Real Property and Landlord-Tenant 994
43 Insurance, Wills, and Trusts 1017

APPENDICES
A How to Brief Cases and Analyze Case Problems A–1
B The Constitution of the United States A–3
C The Uniform Commercial Code A–3
D Answers to the Issue Spotters A–4
E Sample Answers for Case Problems with Sample

Answer A–13

Glossary G–1
Table of Cases TC–1

Index I–1

Contents in Brief

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Contents

Unit 1 The Legal Environment of 1

Chapter 1

and Legal Reasoning 2
Activities and the Legal Environment 3

Sources of American 4

The Common 7
■ Landmark in the : Equitable Maxims 12

Classifications of 13
■ Beyond Our Borders: National Systems 14

Appendix to Chapter 1: Finding and Analyzing the 19
■ Analysis: Case Briefing and IRAC Legal Reasoning 30

Chapter 2

Constitutional 31
The Constitutional Powers of Government 32

■ Managerial Strategy: Marriage Equality and the Constitution 33

■ Landmark in the : Gibbons v. Ogden (1824) 35

Classic Case 2.1: Heart of Atlanta Motel v. United States (1964) 36

and the Bill of Rights 38
■ Beyond Our Borders: The Impact of Foreign

on the United States Supreme Court 40

■ Adapting the to the Online Environment:
Does Everyone Have a Constitutional Right to Use
Social Media? 41

Case 2.2: Animal Legal Defense Fund v. Wasden (2018) 42

■ Ethical Issue: Can a high school suspend teenagers from
extracurricular activities because they posted suggestive
photos of themselves online at social networking sites? 43

Spotlight on Beer Labels: Case 2.3: Bad Frog Brewery, Inc. v.
New York State Liquor Authority (1998) 45

■ Analysis: Determining When Public
Religious Displays Violate the Establishment Clause 48

Due Process and Equal Protection 49

Privacy Rights 51

Chapter 3

Ethics in 57
Ethics and the Role of 58

■ Web Log: Bogus Bank and Credit Card
Accounts at Wells Fargo Bank 59

■ Adapting the to the Online Environment:
Should Employees Have a “Right of Disconnecting”? 62

Case 3.1: Al-Dabagh v. Case Western Reserve University (2015) 63

Ethical Principles and Philosophies 65

Sources of Ethical Issues in Decisions 69

Case 3.2: Watson Laboratories, Inc. v. State of Mississippi (2018) 70

Making Ethical Decisions 73
■ Analysis: Applying the IDDR Framework 77

Ethics on a Global Level 78

Appendix to Chapter 3: Costco Code of Ethics 85

Chapter 4

Courts and
Alternative Dispute Resolution 86

■ Web Log: Samsung and Forced Arbitration 87

The Judiciary’s Role in American Government 87
■ Landmark in the : Marbury v. Madison (1803) 88

Basic Judicial Requirements 89

Spotlight on Gucci: Case 4.1: Gucci America, Inc. v. Wang Huoqing (2011) 94

The State and Federal Court Systems 96
■ Beyond Our Borders: Islamic Courts Abroad and at Home 97

Case 4.2: Johnson v. Oxy USA, Inc. (2016) 99

■ Managerial Strategy: Should You Consent to Have Your
Case Decided by a U.S. Magistrate Judge? 101

■ Ethical Issue: Should Supreme Court justices follow the
Code of Conduct for United States Judges? 103

Following a State Court Case 103

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■ Adapting the to the Online Environment:
Using Social Media for Service of Process 105

Case 4.3: Klipsch Group, Inc. v. ePRO E-Commerce Limited (2018) 109

Courts Online 113

Alternative Dispute Resolution 113

Chapter 5

Tort 123
The Basis of Tort 123

Intentional Torts against Persons 125
■ Analysis: Analyzing Intentional Infliction

of Emotional Distress Claims 127

Case 5.1: Blake v. Giustibelli (2016) 129

■ Ethical Issue: When does an online criticism of a physician
become defamation? 131

■ Adapting the to the Online Environment:
Revenge Porn and Invasion of Privacy 132

Intentional Torts against Property 136

Negligence 138

Case 5.2: Bogenberger v. Pi Kappa Alpha Corporation, Inc. (2018) 139

■ Landmark in the : Palsgraf v. Long Island Railroad Co. (1928) 142

Spotlight on the Seattle Mariners: Case 5.3: Taylor v. Baseball
Club of Seattle, L.P. (2006) 144

Strict Liability 145

Chapter 6

Product Liability 151
Product Liability Claims 151

■ Web Log: Johnson & Johnson Faces Continuing
suits over Its Talcum Powder 152

■ Landmark in the : MacPherson v. Buick Motor Co. (1916) 153

Case 6.1: Schwarck v. Arctic Cat, Inc. (2016) 154

Strict Product Liability 155
■ Linking to Corporate Management:

Quality Control 157

■ Analysis: How State Legislation Can Limit
Recovery for Design Defects 159

■ Ethical Issue: Can a Taser be considered unreasonably
dangerous as designed? 159

Case 6.2: Stange v. Janssen Pharmaceuticals, Inc. (2018) 161

■ Managerial Strategy: When Is a Warning Legally Bulletproof? 162

Defenses to Product Liability 164

Spotlight on Injuries from Vaccinations: Case 6.3:
Bruesewitz v. Wyeth, LLC (2011) 165

Chapter 7

Intellectual Property Rights 172
Trademarks 173

■ Linking to Marketing: Trademarks
and Service Marks 173

Classic Case 7.1: Coca-Cola Co. v. Koke Co. of America (1920) 174

■ Ethical Issue: Should the law allow offensive trademark names? 176

■ Beyond Our Borders: ALEVE versus FLANAx—
Same Pain Killer, But in Different Countries 177

Case 7.2: LFP IP, LLC v. Hustler Cincinnati, Inc. (2016) 178

■ Web Log: Amazon Faces Fake Products 182

Patents 183

Copyrights 186
■ Analysis: Licensing Is a Defense to

Copyright Infringement 189

■ Adapting the to the Online Environment:
Beyoncé, Sampling, and a $20 Million suit 190

Case 7.3: Oracle USA, Inc. v. Rimini Street, Inc. (2018) 192

Trade Secrets 193

International Protections 193

Chapter 8

Internet ,
Social Media, and Privacy 200
Internet 201

Spotlight on Internet Porn: Case 8.1: Hasbro, Inc. v.
Internet Entertainment Group, Ltd. (1996) 205

Copyrights in Digital Information 206
■ Landmark In the : The Digital Millennium Copyright Act 207

■ Adapting the to the Online Environment:
Riot Games, Inc., Protects Its Online Video Game Copyrights 208

Case 8.2: BMG Rights Management (US), LLC v.
Cox Communications, Inc. (2018) 209

Social Media 210

Online Defamation 214
■ Analysis: Immunity of ISPs under

the Communications Decency Act 215

Case 8.3: David v. Textor (2016) 216

Privacy 217
■ Beyond Our Borders: “The Right to Be Forgotten”

in the European Union 218

■ Ethical Issue: Should smart-TV manufacturers collect
consumer-use data? 219

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Chapter 9

Criminal and Cyber Crime 224
Civil and Criminal 224

Criminal Liability 227
■ Adapting the to the Online Environment:

Using Twitter to Cause Seizures—A Crime? 227

Case 9.1: United States v. Crabtree (2018) 228

■ Managerial Strategy: The Criminalization of American 230

Types of Crimes 231

■ Analysis: Proof of Credit-Card Theft 233

Spotlight on White-Collar Crime: Case 9.2: People v. Sisuphan (2010) 235

Defenses to Criminal Liability 239

Constitutional Safeguards and Criminal Procedures 241
■ Ethical Issue: Should police be able to force you to unlock

your mobile phone? 243

■ Landmark in the : Miranda v. Arizona (1966) 244

Cyber Crime 247

Case 9.3: United States v. Warner (2016) 248

Unit One: Task-Based Simulation 256

Unit 2 Contracts and E-Contracts 257
Chapter 10

Nature and Classification 258
An Overview of Contract 258

Elements of a Contract 260

Case 10.1: Weston v. Cornell University (2016) 261

Types of Contracts 262
■ Ethical Issue: Does a “You break it, you buy it” sign

create a unilateral contract? 263

Case 10.2: Boswell v. Panera Bread Co. (2018) 264

Quasi Contracts 267
■ Analysis: Deciding If a Court Would Impose

a Quasi Contract 268

Interpretation of Contracts 269

Spotlight on Columbia Pictures: Case 10.3: Wagner v.
Columbia Pictures Industries, Inc. (2007) 270

Chapter 11

Agreement 277
Offer 277

Classic Case 11.1: Lucy v. Zehmer (1954) 278

Spotlight on Amazon.com: Case 11.2: Basis Technology Corp. v.
Amazon.com, Inc. (2008) 281

■ Analysis: Offers of a Reward 283

Acceptance 285
■ Adapting the to the Online Environment: Can Your

E-Mails or Instant Messages Create a Valid Contract? 286

E-Contracts 289
■ Linking to Marketing: Customer

Relationship Management 290

Case 11.3: Bailey v. Kentucky Lottery Corp. (2018) 293

■ Ethical Issue: How enforceable are click-on agreements
to donate funds to a charity? 294

The Uniform Electronic Transactions Act 296

Chapter 12

Consideration 302
Elements of Consideration 302

■ Landmark in the : Hamer v. Sidway (1891) 303

Case 12.1: USS–POSCO Industries v. Case (2016) 304

Agreements That Lack Consideration 306

Case 12.2: Baugh v. Columbia Heart Clinic, P.A. (2013) 307

Settlement of Claims 309

Spotlight on Nike: Case 12.3: Already, LLC v. Nike, Inc. (2013) 310

Promissory Estoppel 311

Chapter 13

Capacity and Legality 316
Contractual Capacity 316

Spotlight on KFC: Case 13.1: PAK Foods Houston, LLC v. Garcia (2014) 317

Legality 321
■ Analysis: Determining If a Contract with

an Unlicensed Party Is Enforceable 322

Case 13.2: Woischke v. Stursberg & Fine, Inc. (2018) 322

■ Ethical Issue: Are expansive noncompete agreements
reducing worker mobility? 324

■ Managerial Strategy: Creating Liability Waivers
that are not Unconscionable 327

Case 13.3: Holmes v. Multimedia KSDK, Inc. (2013) 328

The Effect of Illegality 329

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Chapter 14

Voluntary Consent 335
Mistakes 335

■ Ethical Issue: Should a surviving member of Lynyrd Skynyrd
abide by a thirty-year-old consent decree? 337

Fraudulent Misrepresentation 338

Case 14.1: McCullough v. Allstate Property and Casualty
Insurance Co. (2018) 339

Case 14.2: Cronkelton v. Guaranteed Construction Services, LLC (2013) 342

■ Adapting the to the Online Environment: “Catfishing”:
Is That Online “Friend” for Real? 343

Case 14.3: Fazio v. Cypress/GR Houston I, LP (2013) 344

Undue Influence and Duress 346

Chapter 15

The Statute of Frauds—
Writing Requirement 350
The Writing Requirement 350

Case 15.1: Sloop v. Kiker (2016) 351

Exceptions to the Statute of Frauds 355
■ Beyond Our Borders: The Statute of Frauds and International

Sales Contracts 355

Sufficiency of the Writing or Electronic Record 357

Case 15.2: Moore v. Bearkat Energy Partners, LLC (2018) 358

The Parol Evidence Rule 359

Case 15.3: Frewil, LLC v. Price (2015) 361

Chapter 16

Performance and Discharge 366
Conditions of Performance 366

Discharge by Performance 368
■ Analysis: Determining When a Breach Is Material 370

Case 16.1: Kohel v. Bergen Auto Enterprises, LLC (2013) 371

■ Ethical Issue: Is it a material breach of contract for a hospital
to accept a donation and then refuse to honor part of its
commitment? 372

Discharge by Agreement 373

Case 16.2: DWB, LLC v. D&T Pure Trust (2018) 374

Discharge by Operation of 375

Case 16.3: Hampton Road Bankshares, Inc. v. Harvard (2016) 376

■ Beyond Our Borders: Impossibility or Impracticability
of Performance in Germany 378

Chapter 17

Breach and Remedies 382
Damages 383

Case 17.1: Baird v. Owens Community College (2016) 384

■ Landmark in the : Hadley v. Baxendale (1854) 387

Spotlight on Liquidated Damages: Case 17.2:
Kent State University v. Ford (2015) 389

■ Analysis: Enforceability of Liquidated
Damages Provisions 390

Equitable Remedies 391

Case 17.3: Cipriano Square Plaza Corp. v. Munawar (2018) 391

Recovery Based on Quasi Contract 395

Contract Provisions Limiting Remedies 396
■ Ethical Issue: Can contracts for mixed martial arts

fighters limit a fighter’s right to stop fighting? 396

Chapter 18

Third Party Rights 402
Assignments 402

Case 18.1: Bass-Fineberg Leasing, Inc. v. Modern Auto Sales, Inc. (2015) 405

Delegations 407

Case 18.2: Mirandette v. Nelnet, Inc. (2018) 409

Third Party Beneficiaries 410

Case 18.3: Bozzio v. EMI Group, Ltd. (2016) 410

Unit Two: Task-Based Simulation 418

Unit 3 Commercial Transactions 419

Chapter 19

The Formation of Sales
and Lease Contracts 420

■ Landmark in the : The Uniform Commercial Code 421

The Scope of Articles 2 and 2A 421

■ Adapting the to the Online Environment:
Taxing Web Purchases 423

The Formation of Sales and Lease Contracts 425

Case 19.1: Toll Processing Services, LLC v. Kastalon, Inc. (2018) 426

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Case 19.2: C. Mahendra (N.Y.), LLC v. National Gold & Diamond
Center, Inc. (2015) 430

■ Analysis: Additional Terms between Merchants 432

Classic Case 19.3: Jones v. Star Credit Corp. (1969) 437

Contracts for the International Sale of Goods 437

Appendix to Chapter 19: An Example of a Contract for the
International Sale of Coffee 444

Chapter 20

Title and Risk of Loss 448
Identification 449

Case 20.1: BMW Group, LLC v. Castle Oil Corp. (2016) 450

Passage of Title 451
■ Managerial Strategy: Commercial Use of Drones 451

Case 20.2: Louisiana Department of Revenue v. Apeck
Construction, LLC (2018) 452

Spotlight on Andy Warhol: Case 20.3: Lindholm v. Brant (2007) 456

Risk of Loss 457

Insurable Interest 460

Chapter 21

Performance and Breach
of Sales and Lease Contracts 464
Obligations of the Seller or Lessor 465

Case 21.1: All the Way Towing, LLC v. Bucks County
International, Inc. (2018) 467

Obligations of the Buyer or Lessee 470

Remedies of the Seller or Lessor 472

Remedies of the Buyer or Lessee 475
■ Beyond Our Borders: The CISG’s Approach to

Revocation of Acceptance 479

Spotlight on Baseball Cards: Case 21.2: Fitl v. Strek (2005) 480

Warranties 482

Classic Case 21.3: Webster v. Blue Ship Tea Room, Inc. (1964) 485

■ Analysis: Implied Warranties 487

Chapter 22

Negotiable Instruments 496
Formation of Negotiable Instruments 497

■ Adapting the to the Online Environment:
Pay with Your Smartphone 499

Case 22.1: OneWest Bank, FSB v. Nunez (2016) 503

■ Analysis: Deciding If an Instrument
Is Negotiable 505

Case 22.2: Charles R. Tips Family Trust v. PB Commercial, LLC (2015) 508

Transfer of Instruments 509
■ Beyond Our Borders: Severe Restrictions on Check

Indorsements in France 510

Holder in Due Course (HDC) 513

Case 22.3: Jarrell v. Conerly (2018) 516

Signature and Warranty Liability 518

Defenses, Limitations, and Discharge 523
■ Landmark in the : Federal Trade Commission Rule 433 525

Chapter 23

International and Space 532
International 532

■ Beyond Our Borders: Border Searches of Your
Electronic Devices 533

Case 23.1: Rubin v. Islamic Republic of Iran (2018) 537

■ Analysis: Sovereign Immunity Claims 539

Doing Internationally 539
■ Ethical Issue: Is it ethical (and legal) to brew “imported”

beer brands domestically? 539

Regulation of Specific Activities 542

Case 23.2: Changzhou Trina Solar Energy Co., Ltd. v. International
Trade Commission (2018) 543

U.S. s in a Global Context 545

Spotlight on International Torts: Case 23.3: Daimler AG v.
Bauman (2014) 546

Space 548

Chapter 24

Banking in the Digital Age 554
Checks and the Bank-Customer Relationship 555

The Bank’s Duty to Honor Checks 558

Case 24.1: Legg v. West Bank (2016) 558

Case 24.2: Horton v. JPMorgan Chase Bank, N.A. (2018) 561

The Bank’s Duty to Accept Deposits 564

Case 24.3: Shahin v. Delaware Federal Credit Union (2015) 565

■ Landmark in the : Check Clearing for the 21st Century
Act (Check 21) 568

Electronic Fund Transfers 569

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Unit 4 Agency and Employment 637

Chapter 27

Agency Relationships in 638
Agency 639

■ Ethical Issue: Is it fair to classify Uber and Lyft drivers
as independent contractors? 640

Formation of an Agency 642

Case 27.1: Reidel v. Akron General Health System (2018) 643

Duties of Agents and Principals 644

Spotlight on Taser International: Case 27.2: Taser International,
Inc. v. Ward (2010) 646

Agent’s Authority 649

Liability in Agency Relationships 651
■ Analysis: Liability of Disclosed Principals 652

■ Landmark in the : The Doctrine of Respondeat Superior 655

■ Beyond Our Borders: Islamic and Respondeat Superior 657

Case 27.3: M.J. v. Wisan (2016) 657

Termination of an Agency 659

Chapter 28

Employment, Immigration,
and Labor 666
Employment at Will 667

Case 28.1: Caterpillar, Inc. v. Sudlow (2016) 668

Wages, Hours, and Leave 669
■ Ethical Issue: Are employees entitled to receive wages

for all the time they spend at work, including times when
they are taking a personal break? 670

■ Beyond Our Borders: Brazil Requires Employers to Pay
Overtime for Use of Smartphones after Work Hours 671

Case 28.2: Encino Motorcars, LLC v. Navarro (2018) 671

Health, Safety, Income Security, and Privacy 674
■ Analysis: Workers’ Compensation Claims 675

■ Adapting the to the Online Environment:
Social Media in the Workplace Come of Age 679

Immigration 680

Online Banking and E-Money 571
■ Adapting the to the Online Environment:

Electronic Payment Systems and the Use of Checks 571

Chapter 25

Security Interests and
Creditors’ Rights 577
Creating and Perfecting a Security Interest 577

Spotlight on Wedding Rings: Case 25.1: Royal Jewelers,
Inc. v. Light (2015) 579

■ Adapting the to the Online Environment:
Secured Transactions Online 581

■ Analysis: Perfecting a Security Interest 583

Scope of a Security Interest 586

Case 25.2: In re T usa–Expo Holdings, Inc. (2016) 587

Priorities, Rights, and Duties 590

Default 592

Case 25.3: SunTrust Bank v. Monroe (2018) 594

■ Ethical Issue: How long should a secured party have to
seek a deficiency judgment? 596

Other s Assisting Creditors 596

Chapter 26

Bankruptcy 607
The Bankruptcy Code 607

■ Web Log: Online Retail Competition
Causes Yet Another Brick-and-Mortar Retailer
to File for Bankruptcy 608

■ Landmark in the : The Bankruptcy Abuse Prevention
and Consumer Protection Act 609

Chapter 7—Liquidation 610
■ Analysis: Violations of the Automatic Stay 614

Case 26.1: In re Anderson (2016) 619

■ Ethical Issue: Should there be more relief for student
loan defaults? 621

Case 26.2: In re Cummings (2015) 622

Chapter 11—Reorganization 624
■ Linking to Corporate Management:

What Can You Do to Prepare for a Chapter 11
Reorganization? 625

Bankruptcy Relief under Chapter 13
and Chapter 12 627

Case 26.3: In re Chamberlain (2018) 629

Unit Three: Task-Based Simulation 635

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Labor 683

■ Managerial Strategy: Union Organizing Using a Company’s
E-Mail System 686

Case 28.3: Contemporary Cars, Inc. v. National Labor
Relations Board (2016) 687

Chapter 29

Employment Discrimination 694
Title VII of the Civil Rights Act 695

■ Linking to Corporate Management:
Human Resource Management 696

■ Adapting the to the Online Environment:
Hiring Discrimination Based on Social Media Posts 700

Case 29.1: Bauer v. Lynch (2016) 701

Case 29.2: Young v. United Parcel Service, Inc. (2015) 703

■ Ethical Issue: Should corporations be forced
to publicize the ratio of CEO-to-worker pay? 704

■ Analysis: Retaliation Claims 707

Case 29.3: Franchina v. City of Providence (2018) 708

■ Beyond Our Borders: Sexual Harassment in Other Nations 709

Discrimination Based on Age, Disability, or Military Status 710

Defenses to Employment Discrimination 716

Affirmative Action 717

Unit Four: Task-Based Simulation 723

Unit 5 Organizations 725

Chapter 30

Sole Proprietorships
and Franchises 726
Sole Proprietorships 727

Case 30.1: A. Gadley Enterprises, Inc. v. Department of Labor and
Industry Office of Unemployment Compensation
Tax Services (2016) 727

■ Ethical Issue: Can the religious beliefs of a small business
owner justify the business refusing to provide services
to members of the LGBT community? 728

■ Adapting the to the Online Environment:
A Sole Proprietorship, Facebook Poker, and Bankruptcy 730

Franchises 730
■ Beyond Our Borders: Franchising in Foreign Nations 731

The Franchise Contract 734

Franchise Termination 735

Case 30.2: S&P Brake Supply, Inc. v. Daimler Trucks
North America, LLC (2018) 736

Spotlight on Holiday Inns: Case 30.3: Holiday Inn Franchising,
Inc. v. Hotel Associates, Inc. (2011) 738

Chapter 31

All Forms of Partnership 743
Basic Partnership Concepts 744

Case 31.1: Harun v. Rashid (2018) 745

Formation and Operation 747
■ Beyond Our Borders: Doing with

Foreign Partners 748

Classic Case 31.2: Meinhard v. Salmon (1928) 751

Dissociation and Termination 753

Limited Liability Partnerships 757

Limited Partnerships 758

Case 31.3: DeWine v. Valley View Enterprises, Inc. (2015) 759

■ Ethical Issue: Should an innocent general partner be
jointly liable for fraud? 761

Chapter 32

Limited Liability Companies
and Special Forms 767
The Limited Liability Company 767

■ Landmark in the : Limited Liability Company
(LLC) Statutes 768

Case 32.1: Hodge v. Strong Built International, LLC (2015) 771

■ Beyond Our Borders: Limited Liability Companies in
Other Nations 772

LLC Operation and Management 773
■ Managerial Strategy: Can a Person Who Is Not a Member

of a Protected Class Sue for Discrimination? 774

Case 32.2: Schaefer v. Orth (2018) 775

Dissociation and Dissolution of an LLC 776

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Chapter 37

Administrative 872
Practical Significance 872

■ Linking to Corporate Management:
Dealing with Administrative 875

Agency Creation and Powers 875

Case 37.1: Simmons v. Smith (2018) 877

The Administrative Process 879
■ Ethical Issue: Do administrative agencies exercise

too much authority? 880

Case 37.2: Craker v. Drug Enforcement Administration (2013) 884

Case 32.3: Reese v. Newman (2016) 777

■ Analysis: When Will a Court Order the
Dissolution of an LLC? 778

Special Forms 779

Chapter 33

Corporate Formation and Financing 785
Nature and Classification 785

■ Adapting the to the Online Environment:
Programs That Predict Employee Misconduct 787

Case 33.1: Drake Manufacturing Co. v. Polyflow, Inc. (2015) 788

Case 33.2: Pantano v. Newark Museum (2016) 790

Case 33.3: Greenfield v. Mandalay Shores Community
Association (2018) 793

Formation and Powers 793
■ Beyond Our Borders: Does Cloud Computing

Have a Nationality? 797

Piercing the Corporate Veil 798
■ Analysis: Piercing the Corporate Veil 799

Corporate Financing 800

Chapter 34

Corporate Directors,
Officers, and Shareholders 807
Directors and Officers 807

Duties and Liabilities of Directors and Officers 810

Case 34.1: Oliveira v. Sugarman (2016) 811

Classic Case 34.2: Guth v. Loft, Inc. (1939) 813

Shareholders 815

Rights and Duties of Shareholders 818

Case 34.3: Hammoud v. Advent Home Medical, Inc. (2018) 820

Chapter 35

Corporate Mergers, …