KUBASEK M. NEIL
BROWNE BARTLEY A.
BRENNAN
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Library of Congress Cataloging-in-Publication Data Kubasek, Nancy K., author. The legal environment of business : a critical thinking approach / Nancy K. Kubasek, Bartley A. Brennan, M. Neil Browne. Eight edition.
pages cm ISBN 978-0-13-407403-0 (alk. paper)
1. Industrial laws and legislationUnited States. 2. Trade regulationUnited States. 3. Commercial lawUnited States. 4. Critical thinking. I. Brennan, Bartley A., author. II. Browne, M. Neil, author. III. Title. KF1600.K83 2015a 346.7307dc23
2015036209
10 9 8 7 6 5 4 3 2 1 ISBN 10: 0-13-407403-3 ISBN 13: 978-0-13-407403-0
A01_KUBA4030_08_SE_FM.indd 2 19/11/15 2:58 pm
http://www.pearsoned.com/permissions/
To the numerous students who appreciate the importance of developing their critical thinking skills for their personal growth
and development.
NANCY K. KUBASEK AND M. NEIL BROWNE
To Sandra for everything.
BARTLEY A. BRENNAN
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iv
Brief Contents
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 17
3 The American Legal System 35
4 Alternative Tools of Dispute Resolution 76
5 Constitutional Principles 105
6 White-Collar Crime and the Business Community 145
7 Ethics, Social Responsibility, and the Business Manager 188
8 The International Legal Environment of Business 213
P A R T T W O
Private Law and the Legal Environment of Business 249 9 The Law of Contracts and SalesI 250
10 The Law of Contracts and SalesII 279
11 The Law of Torts 299
12 Product and Service Liability Law 332
13 Law of Property: Real and Personal 360
14 Intellectual Property 385
15 Agency Law 408
16 Law and Business AssociationsI 432
17 Law and Business AssociationsII 453
P A R T T H R E E
Public Law and the Legal Environment of Business 481 18 The Law of Administrative Agencies 482
19 The Employment Relationship and Immigration Laws 503
20 Laws Governing LaborManagement Relations 538
21 Employment Discrimination 569
22 Environmental Law 617
23 Rules Governing the Issuance and Trading of Securities 647
24 Antitrust Laws 699
25 Laws of DebtorCreditor Relations and Consumer Protection 741
APPENDIX A The Constitution of the United States 788
GLOSSARY 794
INDEX 808
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v
Contents
v
PREFACE xvii
ACKNOWLEDGMENTS xxi
ABOUT THE AUTHORS xxiii
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 The Importance of Critical Thinking 2
A Critical Thinking Model 4
United States of America v. Martha Stewart and Peter Bacanovic 5
The Critical Thinking Steps 7 Facts 7 Issue 7 Reasons and Conclusion 7 Rules of Law 8 Ambiguity 8 Ethical Norms 9 Analogies 10 Missing Information 10
Using Critical Thinking to Make Legal Reasoning Come Alive 11
Legal Reasoning 11
Applying the Critical Thinking Approach 15
Assignment on the Internet 16
On the Internet 16
For Future Reading 16
2 Introduction to Law and the Legal Environment of Business 17 Definition of the Legal Environment of Business 18
Definition of Law and Jurisprudence 19 Natural Law School 20 Positivist School 21 Sociological School 21 American Realist School 22 Critical Legal Studies School 22 Feminist School 22
Law and Economics School 23
Sources of Law 23 The Legislature as a Source of Statutory Law 23 The Judicial Branch as a Source of Case Law 25 The Executive Branch as a Source of Law 27 Administrative Agencies as a Source of Law 27
Classifications of Law 27 Criminal Law and Civil Law 28 Public and Private Law 28 Substantive and Procedural Law 29 Cyberlaw 29
Global Dimensions of the Legal Environment of Business 30
Summary 30
Review Questions 30
Review Problems 31
Case Problems 31
Thinking Critically about Relevant Legal Issues 33
Assignment on the Internet 33
On the Internet 34
For Future Reading 34
3 The American Legal System 35 Jurisdiction 35
Original versus Appellate Jurisdiction 35 Jurisdiction over Persons and Property 36
World-Wide Volkswagen Corp. v. Woodson, District Judge of Cook County 37
Subject Matter Jurisdiction 40
Hertz Corporation v. Friend 41
Venue 44
The Structure of the Court System 46 The Federal Court System 46 State Court Systems 46
The Actors in the Legal System and Their Relationship to the Business Community 49
The Attorney 49 The Jury 52
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The Adversary Process 52 Criticisms of the Adversary System 53
Steps in Civil Litigation and the Role of Businesspersons 53
The Pretrial Stage 53 The Trial 59
J.E.B. v. Alabama, ex rel. T.B. 60 Appellate Procedure 64 Class Actions 66
Wal-Mart Stores Inc. v. Dukes 67
Global Dimensions of the American Legal System 69
Summary 71
Review Questions 71
Review Problems 71
Case Problems 72
Thinking Critically about Relevant Legal Issues 73
Assignment on the Internet 74
On the Internet 74
For Future Reading 75
4 Alternative Tools of Dispute Resolution 76 Negotiation and Settlement 78
Mediation 78 Selection of a Mediator 78 Common Uses of Mediation 79 Advantages of Mediation 79 Criticisms of Mediation 80
Arbitration 80
Hall Street Associates, L.L.C. v. Mattel, Inc. 82 Methods of Securing Arbitration 83
Ignazio v. Clear Channel Broadcasting, Inc. et al. 84
American Express Co. vs. Italian Colors Restaurant 89
Selection of an Arbitrator 91 Common Uses of Arbitration 92 Problems with Arbitration 92
Minitrials 93
Early Neutral Case Evaluation 94
Private Trials 95
Summary Jury Trials 95
Court-Annexed Alternative Dispute Resolution 95
Use of Court-Annexed ADR in the State and Federal Systems 95 Differences between Court-Annexed and Voluntary ADR 97
The Future of Alternative Dispute Resolution 98
Global Dimensions of Alternative Dispute Resolution 98
Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth 99
Summary 100
Review Questions 100
Review Problems 100
Case Problems 101
Thinking Critically about Relevant Legal Issues 102
Assignment on the Internet 103
On the Internet 103
For Future Reading 104
5 Constitutional Principles 105 The Constitution 105
Federalism 105 Supremacy Clause 106 Federal Preemption 106
Separation of Powers 107
William Jefferson Clinton v. Paula Corbin Jones 107
The Impact of the Commerce Clause on Business 110
The Commerce Clause as a Source of Federal Authority 110
Gonzales v. Raich 112 The Commerce Clause as a Restriction on State Authority 116
Natl Assn of Optometrists & Opticians v. Brown 116
The Taxing and Spending Powers of the Federal Government 119
Taxation of the Internet? 120
The Impact of the Amendments on Business 121
The First Amendment 121
Central Hudson Gas & Electric Corp. v. Public Service Commission of New York 123
The Fourth Amendment 128
Florida v. Jardines 129 The Fifth Amendment 132
United States v. Windsor 134 The Fourteenth Amendment 139
Summary 140
Review Questions 140
Review Problems 140
vi C O N T E N T S
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C O N T E N T S vii
Case Problems 141
Thinking Critically about Relevant Legal Issues 143
Assignment on the Internet 143
On the Internet 144
For Future Reading 144
6 White-Collar Crime and the Business Community 145 Crime and Criminal Procedure 148
Crime 148 Criminal Procedure 149
Distinguishing Features of White-Collar Crime 154
The Corporation as a Criminal 154 Arguments in Support of Corporate Liability 155 Arguments in Opposition to Corporate Liability 156 Imposition of Liability on Corporate Executives 157
United States v. Park 157 Imposition of Liability on Lower-Level Corporate Criminals 160 Factors Encouraging the Commission of White-Collar Crime 160 Sentencing of White-Collar Criminals 162
Common White-Collar Crimes 164
Sekhar v. United States 164 Bribery 165 Violations of Federal Regulations 166 Criminal Fraud 167
United States v. Gray 167 Larceny 169 Embezzlement 170 Computer Crimes 170
Prevention of White-Collar Crime 173
Federal Laws Used in the Fight against White-Collar Crime 175
The Racketeer Influenced and Corrupt Organizations Act (RICO) 175 False Claims Act 177 Sarbanes-Oxley Act 178 Whistleblower Protection Act 179
State Laws Used in the Fight against White- Collar Crime 180
Global Dimensions of White-Collar Crime 181
Summary 182
Review Questions 182
Review Problems 182
Case Problems 183
Thinking Critically about Relevant Legal Issues 186
Assignment on the Internet 186
On the Internet 187
For Future Reading 187
7 Ethics, Social Responsibility, and the Business Manager 188 Definition of Business Ethics and the Social Responsibility of Business 190
Business Ethics 190 The Social Responsibility of Business 191
In re Exxon Valdez 191
Theories of Ethical Thought 193 Consequential Theories 193 Deontological Theories 194 Humanist Theories 195
Codes of Ethics 195 Individual Codes of Ethics 195 Corporate Codes of Ethics 197 Industry Codes of Ethics 198 Professional Codes of Ethics 198
Schools of Social Responsibility 201 Profit-Oriented School 201 Managerial School 204 Institutional School 204
Cooper Industries v. Leatherman Tool Group, Inc. 205
Professional Obligation School 205 Regulation School 206
Johnson Construction Co. v. Shaffer 206
Global Dimensions of Ethics and Social Responsibility 207
Code of Conduct for Transnational Corporations 207
Summary 207
Review Questions 208
Review Problems 208
Case Problems 209
Thinking Critically about Relevant Legal Issues 210
Assignment on the Internet 211
On the Internet 211
For Future Reading 211
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8 The International Legal Environment of Business 213 Dimensions of the International Environment of Business 214
Political Dimensions 214 Economic Dimensions 215 Cultural Dimensions 215 Corruption and Trade 216
United States v. Kay 216 Legal Dimensions 219 Selected National Legal Systems 221
Crosby v. National Foreign Trade Council 222
Methods of Engaging in International Business 223
Trade 223 International Licensing and Franchising 224
Russian Entertainment Wholesale, Inc. v. Close-Up International, Inc. 225
Foreign Direct Investment 226
In re Union Carbide Corp. Gas Plant Disaster v. Union Carbide Corp. 227
Risks of Engaging in International Business 229
Expropriation of Private Property 229 Sovereign Immunity Doctrine 230
Keller v. Central Bank of Nigeria 230
Act-of-State Doctrine 231
Linde v. Arab Bank, PLC 231 Export and Import Controls 232
Legal and Economic Integration as a Means of Encouraging International Business Activity 233
The World Trade Organization 233 The European Union 236 North American Free Trade Agreement 240
Global Dispute Resolution 242 Arbitration 243 Litigation 243 Globalization: Hurts or Helps 243
Summary 244
Review Questions 244
Review Problems 245
Case Problems 245
Thinking Critically about Relevant Legal Issues 246
Assignment on the Internet 246
On the Internet 247
For Future Reading 247
P A R T T W O
Private Law and the Legal Environment of Business 249
9 The Law of Contracts and SalesI 250 Definition, Sources, and Classifications of Contract Law 251
Definition 251 Sources of Contract Law 251
Paramount Contracting Co. v. DPS Industries, Inc. 252
Classifications of Contracts 253
Pan Handle Realty, LLC v. Olins 254
Audito v. City of Providence 255
Elements of a Legal Contract 257 Legal Offer 257
Beer v. Chase 258 Legal Acceptance 260
The Private Movie Company, Inc. v. Pamela Lee Anderson et al. 260
Consideration 263 Genuine Assent 264
Stambovsky v. Ackley and Ellis Realty 265 Competent Parties 267 Legal Object 269
Brown & Brown, Inc. v. Johnson 270
Contracts That Must Be in Writing 271 Contracts for the Sale of an Interest in Land 271 Contracts to Pay the Debts of Another 271 Contracts Not Performable in One Year 271 Sale of Goods of $500 or More 272
Iacono v. Lyons 272 Nonbusiness Contracts 273
Parol Evidence Rule 273
Third-Party Beneficiary Contracts and Assignment of Rights 274
Types of Third-Party Beneficiary Contracts 274 Assignment of Rights 274
Summary 275
Review Questions 276
Review Problems 276
Case Problems 277
Thinking Critically about Relevant Legal Issues 278
On the Internet 278
For Future Reading 278
viii C O N T E N T S
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10 The Law of Contracts and SalesII 279 Methods of Discharging a Contract 280
Discharge by Performance 280
Kohel v. Bergen Auto Enterprises, L.L.C. 280
Performance to Satisfaction of Another 281 Material Breach of Contract 281 Discharge by Mutual Agreement 282 Discharge by Conditions Precedent and Subsequent 282
Architectural Systems, Inc. v. Gilbane Building Co. 283
Discharge by Impossibility of Performance 283 Discharge by Commercial Impracticability 284 Contracts with the Government and the Sovereign Acts Doctrine 284
Facto v. Pantagis 285
Remedies for a Breach of Contract 286 Monetary Damages (Legal Remedies) 286
Hallmark Cards, Inc. v. Murley 287
Arrowhead School District No. 75, Park County, Montana v. James A. Klyap, Jr. 288
Equitable Remedies 289 Remedies for Breach of a Sales Contract (Goods) 290
Fitl v. Strek 290
E-Contracts 291 E-Signatures 292 The Uniform Computer Information Transaction Act 292
Global Dimensions of Contract and Sales Law 293
Summary 294
Review Questions 295
Review Problems 295
Case Problems 296
Thinking Critically about Relevant Legal Issues 297
Assignment on the Internet 297
On the Internet 297
For Future Reading 298
11 The Law of Torts 299 The Goals of Tort Law 299
Damages Available in Tort Cases 300 Compensatory Damages 300 Nominal Damages 301 Punitive Damages 301
Young v. Becker & Poliakoff 303
Classifications of Torts 307
Intentional Torts 307 Intentional Torts against Persons 307
Nemet Chevrolet, Ltd. v. Consumeraffairs .com, Inc. 310
Intentional Torts against Property 317 Intentional Torts against Economic Interests 318
Negligent Torts 319 Elements of Negligence 319 Defenses to Negligence 322
Coomer v. Kansas City Royals 323
Venkateswarlu Thota and North Texas Cardiology Center v. Margaret Young 324
Strict Liability Torts 326
Global Dimensions of Tort Law 326
Summary 327
Review Questions 327
Review Problems 328
Case Problems 328
Thinking Critically about Relevant Legal Issues 330
Assignment on the Internet 331
On the Internet 331
For Future Reading 331
12 Product and Service Liability Law 332 Theories of Recovery in Product Liability Cases 333
Negligence 333
Mutual Pharmaceutical Company, Inc. v. Bartlett 340
Strict Liability in Contract for Breach of Warranty 341
Williams v. Braum Ice Cream Store, Inc. 343 Strict Liability in Tort 346
Welge v. Planters Lifesavers Co. 347 Liability to Bystanders 351
Market Share Liability 351
Service Liability 352 Accountants Liability 353
Global Dimensions of Product Liability Law 353
Summary 355
Review Questions 355
Review Problems 356
Case Problems 356
C O N T E N T S ix
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Thinking Critically about Relevant Legal Issues 357
Assignment on the Internet 358
On the Internet 358
For Future Reading 359
13 Law of Property: Real and Personal 360 Real Property 361
Definition of Real Property 362 Extent of Ownership 362
Interests in Real Property 362 Fee Simple Absolute 362 Conditional Estate 362 Life Estate 363 Future Interest 363 Leasehold Estates 364 Easements 364 License 364 Co-Ownership 364 Condominiums and Cooperatives 365
Plum Creek C.A. v. Oleg Borman 365
Voluntary Transfer of Real Property 368 Execution 368 Delivery 370 Acceptance 370 Recording 370
Involuntary Transfer of Real Property 370 Adverse Possession 370 Condemnation 371
Susette Kelo et al. Petitioners, v. City of New London, Connecticut et al. 372
Restrictions on Land Use 374 Restrictive Covenants 374 Zoning 374
Emine Bayram v. City of Binghamton and City of Binghamton Zoning Board of Appeals 375
Other Statutory Restrictions on Land Use 377
Personal Property 378 Voluntary Transfer of Personal Property 378 Involuntary Transfers of Personal Property 378 Bailments 379
Global Dimensions of Property Law 379
Summary 380
Review Questions 380
Review Problems 381
Case Problems 381
Thinking Critically about Relevant Legal Issues 382
Assignment on the Internet 383
On the Internet 383
For Future Reading 383
14 Intellectual Property 385 Introduction to Intellectual Property 385
Trademarks 385
Toys R Us, Inc. v. Canarsie Kiddie Shop, Inc. 386
Trade Dress 389 Federal Trademark Dilution Act of 1995 391
Victor Moseley and Cathy Moseley et al., dba Victors Little Secret v. V Secret Catalogue, Inc. et al. 391
Patents 393
Bilski v. Kappos 393
Trade Secrets 396 Economic Espionage Act 397
Copyrights 397 Fair Use Doctrine 398 Copyrights in the Digital Age 398
American Broadcasting Company, Inc. et. al. v. Aereo, Inc. 399
RealNetworks, Inc. v. DVD Control Copy Association, Inc. et al. 402
Global Dimensions of Intellectual Property Law 402
Summary 403
Review Questions 404
Review Problems 404
Case Problems 404
Thinking Critically about Relevant Legal Issues 406
Assignment on the Internet 407
On the Internet 407
For Future Reading 407
15 Agency Law 408 Definition and Types of Agency Relationships 409
Definition of Agency 409 Types of Agency Relationships 409
Coker v. Pershad 411
Creation of an Agency Relationship 412 Expressed Agency or Agency by Agreement 413 Agency by Implied Authority 413
x C O N T E N T S
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Penthouse International v. Barnes 414 Agency through Ratification by Principal 415 Agency by Estoppel or Apparent Authority 415
Motorsport Marketing, Inc. v. Wiedmaier, Inc. 416
Duties of Agents and Principals 416 Principals Duties to Agent 416 Agents Duties to Principal 417
Cousins v. Realty Ventures, Inc. 417
Gossels v. Fleet National Bank 419
Principals and Agents Liability to Third Parties 420
Contractual Liability 420
McBride v. Taxman Corp. 421 E-Commerce: Intelligent Agents 421 Liability of Disclosed, Partially Disclosed and Undisclosed Principals 422 Liability of Undisclosed Principal 422 Tort Liability 422 Tort Liability and Negligence 423
Auer v. Paliath 423 Criminal Liability 424
Termination of the PrincipalAgent Relationship 424
Termination by Agreement 424 Termination by Operation of Law 425
Gaddy v. Douglass 425
Global Dimensions of Agency Law 426 Japan 427 European Union 427 U.S. Agents Abroad 427
Summary 428
Review Questions 428
Review Problems 428
Case Problems 429
Thinking Critically about Relevant Legal Issues 430
Assignment on the Internet 431
On the Internet 431
For Future Reading 431
16 Law and Business AssociationsI 432 Factors Influencing a Business Managers Choice of Organizational Form 434
Some Common Forms of Business Organization in the United States 434
Sole Proprietorships 434
Quality Car & Truck Leasing, Inc. v. Sark 435
General Partnerships 436
In re KeyTronics 438
Enea v. Superior Court of Monterey County 439
Limited Partnerships and Limited Liability Limited Partnerships 443
Specialized Forms of Business Associations 444
Joint Stock Company 444 Syndicate 445 Joint Venture 445 Franchising 445
Holiday Inn Franchising, Inc. v. Hotel Associates, Inc. 446
Global Dimensions of Business Associations 447
Outsourcing 448
Summary 449
Review Questions 449
Review Problems 449
Case Problems 450
Thinking Critically about Relevant Legal Issues 451
Assignment on the Internet 451
On the Internet 452
For Future Reading 452
17 Law and Business Associations II 453 The Corporation 453
Classification of Corporations 454 Closely Held Corporation 454 Publicly Held Corporation 455 Multinational or Transnational Corporation 455 Subchapter S Corporation 455 ROBS Corporation 455 Professional Corporation 455 Nonprofit Corporation 456
Creation of Corporations 456
Brennans Inc. v. Colbert 457
Financing of Corporations 458 Debt Financing 458 Equity Financing 459 Consideration 461
Operation of Corporations 462 The Role of the Shareholders 462 The Role of the Board of Directors 464
C O N T E N T S xi
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In re Abbott Laboratories Derivative Shareholders Litigation 465
The Role of the Officers and Managers 466 Fiduciary Obligations of Directors, Officers, and Managers 466
Beam v. Stewart 467
Smith v. Van Gorkom 469
Limited Liability Companies 473 The Uniform Limited Liability Act 473 LLC Characteristics 473 Creating a Limited Liability Company 473 Duration of the LLC 474 Financing of the LLC 474 Control Considerations 474 Tax Ramifications 474
Gatz Properties, LLC v. Auriga Capital Corporation 474
Global Dimensions of Corporations: A Big Fat Greek Bailout II and III 476
Summary 476
Review Questions 477
Review Problems 477
Case Problems 478
Thinking Critically about Relevant Legal Issues 478
Assignment on the Internet 479
On the Internet 479
For Future Reading 480
P A R T T H R E E
Public Law and the Legal Environment of Business 481
18 The Law of Administrative Agencies 482 Introduction to Administrative Law and Administrative Agencies 483
Administrative Law 483 Administrative Agencies 484
Creation of Administrative Agencies 485
Functions of Administrative Agencies 486 Rulemaking 486
City of Arlington v. Federal Communications Commission 488
Adjudication 489
Fox Television Stations, Inc. v. Federal Communications Commission 493
Administrative Activities 494
Limitations on Administrative Agencies Powers 494
Statutory Limitations 494 Institutional Limitations 494
State and Local Administrative Agencies 496
Vonage Holdings Corp. v. Minnesota Public Utilities Commission 497
Global Dimensions of Administrative Agencies 498
Summary 498
Review Questions 498
Review Problems 498
Case Problems 499
Thinking Critically about Relevant Legal Issues 501
Assignment on the Internet 501
On the Internet 501
For Future Reading 502
19 The Employment Relationship and Immigration Laws 503 Wage and Hour Laws 504
Unemployment Compensation 506
Cassandra Jenkins v. American Express Financial Corp. 509
Consolidated Omnibus Budget Reconciliation Act of 1985 510
Workers Compensation Laws 510 Coverage 510 Recoverable Benefits 512 The Claims Process 12 Benefits of the Workers Compensation System 512
The Family and Medical Leave Act of 1993 513
Major Provisions 513
Jeffrey Bonkowski v. Oberg Industries, Inc. 514
Remedies for Violations of the FMLA 516 The Future of the FMLA 517
The Occupational Safety and Health Act of 1970 518
Occupational Safety and Health Administration 518 Occupational Safety and Health Review Commission 521 National Institute for Occupational Safety and Health 521 Implementation of the OSH Act 523
xii C O N T E N T S
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Employee Privacy Rights 523 Electronic Monitoring and Communication 523
Brian Pietrylo and Doreen Marino, Plaintiffs v. Hillstone Restaurant Group d/b/a Houstons, Defendant 524
Drug Testing 527 Other Testing 528
Immigration Law 529 Immigration Reform and Control Act of 1986 529 Authorized Noncitizen Workers 530
Global Dimensions of the Employment Relationship 532
Summary 533
Review Questions 533
Review Problems 533
Case Problems 534
Thinking Critically about Relevant Legal Issues 535
Assignment on the Internet 536
On the Internet 536
For Future Reading 537
20 Laws Governing Labor Management Relations 538 Structure of the Primary U.S. Labor Legislation and the Mechanisms for Its Enforcement 540
The Wagner Act of 1935 540 The TaftHartley Act of 1947 541 The LandrumGriffin Act of 1959 542 The National Labor Relations Board 542
Labor Organizing 548 Board Rules 548 Unfair Labor Practices by Employers 549
Gaetano & Associates, Inc. v. National Labor Relations Board 553
Unfair Labor Practices by Employees 554
Laborers International Union of North America, Local 872, AFLCIO, and Stephanie Shelby 554
Organizing the Appropriate Unit 556
Specialty Healthcare and Rehabilitation Center of Mobile and United Steelworkers, District 9, Petitioner 557
The Collective Bargaining Process 559 Subjects of Bargaining 560
Strikes, Boycotts, and Picketing 560 Strikes 561
Boycotts 563 Picketing 563
Global Dimensions of LaborManagement Relations 564
Summary 564
Review Questions 564
Review Problems 565
Case Problems 565
Thinking Critically about Relevant Legal Issues 567
Assignment on the Internet 568
On the Internet 568
For Future Reading 568
21 Employment Discrimination 569 The Employment-at-Will Doctrine 570
Constitutional Provisions 572
The Civil Rights Acts of 1866 and 1871 572 Applicability of the Acts 572
The Equal Pay Act of 1963 573 Equal Work 574 Defenses 574 Remedies 575
The Civil Rights Act of 1964, as Amended (Title VII), and the Civil Rights Act of 1991 575
Applicability of the Act 575 Proof in Employment Discrimination Cases 576
Teresa Harris v. Forklift Systems, Inc. 580
Vance v. Ball State University 583 Retaliation 583
Reya C. Boyer-Liberto v. Fontainbleu Corporation 584
Statutory Defenses 586 Protected Classes 588 Enforcement Procedures 592 Remedies 595 Lilly Ledbetter Fair Pay Act of 2009 595
The Age Discrimination in Employment Act of 1967 596
Applicability of the Statute 597 Proving Age Discrimination 597
Jones v. National American University 598 Statutory Defenses 599 Enforcement Procedures 600 Remedies under ADEA 601
The Rehabilitation Act of 1973 601
The Americans with Disabilities Act of 1991 602
Covered Individuals 602
C O N T E N T S xiii
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McMillan v. City of New York 604 Enforcement Procedures 606 Remedies 606
Affirmative Action 606
Global Dimensions of Employment Discrimination Legislation 610
Summary 611
Review Questions 612
Review Problems 612
Case Problems 613
Thinking Critically about Relevant Legal Issues 615
Assignment on the Internet 615
On the Internet 616
For Future Reading 616
22 Environmental Law 617 Alternative Approaches to Environmental Protection 618
Tort Law 618
Boomer et al. v. Atlantic Cement Co. 618 Government Subsidies Approach 620 Emission Charges Approach 620 Marketable Discharge Permits Approach 620 Direct Regulation Approach 621
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