Description
THE LEGAL ENVIRONMENT OF BUSINESS provides a detailed practical introduction to the structure and function of the legal system from the perspective of the professional non-lawyer. Unlike other books it does not get bogged down in the complexities of the law, but tries to focus, in a very straightforward manner, on the core legal concepts most essential for business managers to know. Rather than conveying the material in the dry, serious manner of many other legal environment books, the text uses a reader-friendly style and frequent points of humor and levity to make it much easier for the key ideas to come across.
Sample questions asked in the 11th edition of The Legal Environment of Business:
A 4-year-old child used a Bic lighter to start a house fire that killed a 2-year-old child. The lighter had a warning: “KEEP OUT OF REACH OF CHILDREN.” The dead child’s parents sued Bic for strict liability based on inadequate warning and because the lighter was unreasonably dangerous. What was the result? [Todd v. SocieteBic, 21 F.3d 1402, 7th Cir. (1994)]
For ten years, a certified public accounting firm audited the books of an investment company to prepare disclosure documents required by the SEC. The head of the firm was stealing investors’ funds and rigging the books, and the accountants never found out. One day, the head of the firm disappeared, leaving behind a mess and many unhappy investors. The investors sued the accounting firm to recover the money they lost, claiming that the firm was liable for securities fraud. Who do you think prevailed? [Ernst and Ernst v. Hochfelder, 96 S.Ct. 1375 (1976)]
Mollinedo’s home was damaged by fire. Her insurance company, Sentry, recommended ServiceMaster as a repair company. An adjuster for Sentry visited the home with the home contractor from ServiceMaster and approved $30,000 worth of work, which ServiceMaster did with Mollinedo’s approval. Sentry gave the $30,000 to Mollinedo’s mortgage company. Mollinedo filed for bankruptcy. ServiceMaster, which got nothing, sued Sentry for breach of contract and unjust enrichment. Did ServiceMaster, which never filed a lien, have a claim? [Service-Master of St. Cloud v. GAB Business Services, 544 N.W.2d 302, Sup. Ct., Minn. (1996)]
Mary Lowe, in the presence of her son, David, and Allen Amdahl, wrote: “January 26, 1987. I, Mary Lowe, in the presence of David Lowe received from Allen Amdahl $1 00 in cash binding the sale of my farm (of 880 acres) for the amount of $210 000 with final payment due Nov. 1, 1989. Terms of Agreement have been mutually agreed to by both parties. Contract drawn up as soon as possible.” She signed this statement, and David Lowe witnessed it. Amdahl wrote on the back of the paper a payment schedule but did not sign the paper. When he returned with a formal contract, Lowe refused to sign. Amdahl sued. Was there an enforceable contract? [Amdahl v. Lowe, 471 N.W.2d 770, Sup. Ct., N.D. (1991)]
Roger Meiners is the Goolsby-Rosenthal Chair in the College of Business at the University of Texas at Arlington, where he teaches Legal Environment of Business.
Al Ringleb is Executive Director of the Consortium of Universities for International Studies, University of Iowa, Tippie College of Business.
Frances L. Edwards is an Associate Professor of Legal Studies in the College of Business and Behavioral Studies at Clemson University.
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