Bonus A – Working Within the Legal Environment
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Working within the
Legal Environment
bonus
c h a p t e r
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what’s new in this edition A.3
brief chapter outline and learning goals A.3
lecture outline and lecture notes A.Error! Bookmark not defined.
PowerPoint slide notes A.43
lecture links A.58
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Bonus A – Working Within the Legal Environment
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what’s new in
this edition
additions to the 10th edition:
• Getting to Know Kenneth C. Frazier, CEO of Merck
• Name That Company: Toyota
• Credit Card Act of 2009 was added to Figure A.4 Consumer Protection Laws
• Video case
revisions to the 10th edition:
• Text was revised to eliminate redundancy and tighten discussions.
• Statistical data and examples throughout the chapter were updated to reflect current information.
deletions from the 9th edition:
• Getting to Know David Boies, Corporate Attorney
• Name That Company: McDonald’s
• Figure: Major Product Liability Cases
Bonus A – Working Within the Legal Environment
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brief chapter outline
and learning goals
bonus c h a p t e r A
Working within
the Legal Environment
Getting To Know KENNETH C. FRAZIER, MERCK
learning goal 1
Define business law, distinguish between statutory and common law, and explain the role of
administrative agencies.
I. THE CASE FOR LAWS
A. Statutory and Common Law
B. Administrative Agencies
learning goal 2
Define tort law and explain the role of product liability in tort law.
II. TORT LAW
A. Product Liability
learning goal 3
Identify the purposes and conditions of patents, copyrights, and trademarks.
III. LEGALLY PROTECTING IDEAS: PATENTS, COPYRIGHTS, AND
TRADEMARKS
learning goal 4
Describe warranties and negotiable instruments as covered in the Uniform Commercial Code.
IV. SALES LAW: THE UNIFORM COMMERCIAL CODE
A. Warranties
B. Negotiable Instruments
Bonus A – Working Within the Legal Environment
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learning goal 5
List and describe the conditions necessary to make a legally enforce-able contract, and de-
scribe the possible consequences if such a contract is violated.
V. CONTRACT LAW
A. Breach of Contract
learning goal 6
Summarize several laws that regulate competition and protect consumers in the United States.
VI. PROMOTING FAIR AND COMPETITIVE BUSINESS PRACTICES
A. The History of Antitrust Legislation
VII. LAWS TO PROTECT CONSUMERS
learning goal 7
Explain the role of tax laws in generating income for the government and as a method of dis-
couraging or encouraging certain behaviors among taxpayers.
VIII. TAX LAWS
learning goal 8
Distinguish among the various types of bankruptcy as outlined by the Bankruptcy Code.
IX. BANKRUPTCY LAWS
learning goal 9
Explain the role of deregulation as a tool to encourage competition.
X. DEREGULATION VERSUS REGULATION
XI. SUMMARY
Bonus A – Working Within the Legal Environment
Getting to Know KENNETH C. FRAZIER, MERCK
Before rising to the CEO position at Merck, Frazier was general counsel for the pharmaceu-
2. The JUDICIARY is the branch of government
chosen to oversee the legal system through the
court system.
3. The COURT SYSTEM in the U.S. is organized at
the federal, state, and local levels.
Bonus A – Working Within the Legal Environment
(See complete PowerPoint slide notes on page A.43.)
(See complete PowerPoint slide notes on page A.43.)
(See complete PowerPoint slide notes on page A.44.)
(See complete PowerPoint slide notes on page A.44.)
(See complete PowerPoint slide notes on page A.44.)
(See complete PowerPoint slide notes on page A.45.)
Bonus A – Working Within the Legal Environment
d. Both federal and state systems have APPEL-
4. The judiciary also governs the activities and op-
1. STATUTORY LAW includes state and federal
constitutions, legislative enactments, treaties of
the federal government, and ordinances—in
of new cases.
Bonus A – Working Within the Legal Environment
(See complete PowerPoint slide notes on page A.45.)
(See complete PowerPoint slide notes on page A.45.)
Bonus A – Working Within the Legal Environment
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b. Lower courts must abide by the precedents
1. ADMINISTRATIVE AGENCIES are federal or
state institutions and other government organi-
zations created by Congress or state legisla-
areas of tort law.
Bonus A – Working Within the Legal Environment
(See complete PowerPoint slide notes on page A.46.)
This text figure lists and describes the powers and functions
of several administrative agencies at the federal, state, and
local levels of government.
(See complete PowerPoint slide notes on page A.46.)
(See complete PowerPoint slide notes on page A.46.)
1. PRODUCT LIABILITY is the part of tort law that
holds businesses liable for harm that results
it markets.
2. At one time, the legal standard for liability was
a. Manufacturers of chemicals and drugs are
also susceptible to lawsuits.
b. Toyota recalled 3 million cars in 2010 and
2011; the company now faces years of litiga-
tion.
Bonus A – Working Within the Legal Environment
(See complete PowerPoint slide notes on page A.47.)
(See complete PowerPoint slide notes on page A.47.)
Bonus A – Working Within the Legal Environment
learning goal 3
Identify the purposes and conditions of patents, copyrights, and trademarks.
III. LEGALLY PROTECTING IDEAS: PATENTS,
COPYRIGHTS, AND TRADEMARKS
requests each year and grant more than
150,000.
b. Because of a huge backup, the Supreme
Court imposed stricter standards on the
process.
c. A patent cannot be granted for an invention
Bonus A – Working Within the Legal Environment
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(See complete PowerPoint slide notes on page A.47.)
Although patents, copyrights, and trademarks are similar
legal concepts, each has a very specific definition. (See the
complete lecture link on page A.58 in this manual.)
(See complete PowerPoint slide notes on page A.48.)
(See complete PowerPoint slide notes on page A.48.)
Bonus A – Working Within the Legal Environment
B. The AMERICAN INVENTION PROTECTION ACT
requires patent applications to be made public af-
ter 18 months.
1. It was passed in part in response to some in-
ventors intentionally dragging out the patent
application.
1. Copyrights are filed with the LIBRARY OF
CONGRESS.
2. They involve a minimum of paperwork and last
for the lifetime of the author or artist plus 70
years.
3. The Copyright Act of 1978 gives a special term
of 75 years for publication to works published
Bonus A – Working Within the Legal Environment
As Nortel Communications filed for bankruptcy, it hired a
company to help sell its powerful patent portfolio. (See the
complete lecture link on page A.59 in this manual.)
4. The holder of an EXCLUSIVE COPYRIGHT
may charge a fee to anyone who wishes to
use the material.
CODE
A. The UNIFORM COMMERCIAL CODE (UCC) is a
comprehensive commercial law, adopted by every
state in the United States, that covers sales laws
and other commercial laws.
Bonus A – Working Within the Legal Environment
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As online streaming has advanced, UFC has to work to
combat copyright infringement of its pay-per-view fights. (See
the complete lecture link on page A.60 in this manual.)
(See complete PowerPoint slide notes on page A.48.)
(See complete PowerPoint slide notes on page A.49.)
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cured transactions.
2. The text discusses two of these articles: ARTI-
CLE 2 (WARRANTIES) and ARTICLE 3 (NE-
B. WARRANTIES
1. A WARRANTY guarantees that the product
sold will be acceptable for the purpose for which
the buyer intends to use it.
of the UCC.
C. NEGOTIABLE INSTRUMENTS
1. NEGOTIABLE INSTRUMENTS are forms of
commercial paper (such as checks) that are
transferable among businesses and individuals
amount.
2. Article 3 of the UCC requires that NEGOTIA-
Bonus A – Working Within the Legal Environment
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PPT A-20
Understanding Warranties
(See complete PowerPoint slide notes on page A.49.)
PPT A-21
Negotiable Instruments
(See complete PowerPoint slide notes on page A.49.)