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Contents
PART ¢ñ THE LEGAL ENVIRONMENT OF BUSINESS
Chapter 1 Nature and Sources of Law3
Chapter 2 Court Systems, Jurisdiction, and Functions8
Chapter 3 Dispute Resolutions16
Chapter 4 Common and Statutory Law31
Chapter 5 Constitutional Law44
Chapter 6 Lawmaking by Administrative Agencies64
Chapter 7 Torts80
Chapter 8 Business Torts and Crimes105

PART ¢ò PRINCIPLES OF CONTRACT LAW
Chapter 9 Nature and Classification of Contracts123
Chapter 10 The Agreement130
Chapter 11 Consideration137
Chapter 12 Illegality142
Chapter 13 Voidable Contracts146
Chapter 14 Contracts in Writing152
Chapter 15 Rights of Third Parties156
Chapter 16 Discharge of Contracts159

PART ¢ó AGENCY
Chapter 17 Agency: Nature, Creation, Duties, and Termination167
Chapter 18 Agency: Liability of the Parties174

PART ¢ô COMMERCIAL TRANSACTIONS
Chapter 19 Sales: Introduction to the Law of Sales183
Chapter 20 Sales: Title, Risk of Loss, and Insurable Interest186
Chapter 21 Sales: Warranties and Products Liability191
Chapter 22 Sales: Performance and Remedies194
Chapter 23 Commercial Paper: Negotiability and Transfer200
Chapter 24 Commercial Paper: Holders in Due Course and Defenses204
Chapter 25 Commercial Paper: Liability of the Parties210
Chapter 26 Commercial Paper: Checks and the Bankª²Depositor
Relationship214

PART ¢õ SECURED TRANSACTION AND BANKRUPTCY
Chapter 27 Secured Transactions221
Chapter 28 Bankruptcy227

PART ¢ö BUSINESS ORGANIZATIONS
Chapter 29 Partnerships: Nature, Formation, and Property235
Chapter 30 Partnerships: Operating the Business239
Chapter 31 Partnerships: Termination244
Chapter 32 Limited Partnerships249
Chapter 33 Corporations: Nature and Formation256
Chapter 34 Corporations: Corporate Powers and Management260
Chapter 35 Corporations: Rights and Liabilities of Shareholders and
Managers267
Chapter 36Corporations: Merger, Consolidation, and Termination273
Chapter 37Legal Liability of Accountants279

PART ¢÷ PROPERTY: OWNERSHIP, CONTROL, AND PROTECTION
Chapter 38 Real Property285
Chapter 39 Landlord and Tenant292
Chapter 40 Personal Property and Bailments298
Chapter 41 Wills, Trusts, and Estate Planning302
Chapter 42 Insurance and Risk Management306
Chapter 43 Antitrust Law: The Sherman Act313
Chapter 44 Antitrust Law: The Clayton and Robinsonª²Patman Acts319
Chapter 45 Employment Law324
Chapter 46 Securities Regulation327
Chapter 47 Consumer Transactions and the Law331
Chapter 48 The Legal Aspect of International Business335