For more information
Call 1-800-351-0222
Call 1-800-351-0222
"BUSINESS LAW: PRINCIPLES, CASES & ENVIRONMENT" (RONALD ANDERSON, IVAN FOX & DAVID TWOMEY).
Term Paper ID:19057
Essay Subject:
Chapter-by-chapter summary of work on legal & regulatory context in which business operates & social forces behind rules & principles. Contracts, sales, govt., creditors, estates.... More...
31 Pages / 6975 Words
2 sources, 21 Citations,
APA Format
$100.00
More Papers on This Topic
Paper Abstract:
Chapter-by-chapter summary of work on legal & regulatory context in which business operates & social forces behind rules & principles. Contracts, sales, govt., creditors, estates.
Paper Introduction:
Business Law: Principles, Cases and Environment, by Ronald Anderson, Ivan Fox and David Twomey, provides an indepth examination of the principles of private law and cases. In addition, the authors have taken care to include information on the legal and regulatory environment in which business operates, as well as the social forces behind the creation and evolution of specific principles and rules.
The text is divided into 11 parts: legal rights and social forces; contracts; personal property and bailments; sales; commercial paper; government, business and society; secured transactions, creditors' rights and insurance; agency and employment; business organizations; real property; and, estates.
Text of the Paper:
The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper.
Another way in which third parties become involved is throughassignments. Discharge in the case of commercial papermeans that one or both of the parties involved is relieved of the liabilityimposed by the paper. Letters of credit provide yet another form of security device, and isan agreement that the issuer of the letter will pay drafts drawn by thecreditor. Chapter 16, "Bailments," concerns what happens when personal propertyis entrusted to another person. Ordinary contractdefenses are used when the original parties are involved. Bankruptcies are discharged typically when theassets have been collected and distributed, and the debtor is relieved ofhis obligations. In this case, the carrier is the one who transports the goods, theconsignor is the person who delivers the goods for shipment, and theconsignee is the person to whom the goods are shipped. 12 ). West Chicago: Southwestern PublishingCompany. In Chapter 48, "Management of Corporations," the reader learns thatcorporations are managed directly or indirectly, by shareholders, the boardof directors, and the officers. Personal property may also be acquired through accession, gifts,finding lost property, transfers by nonowners, and occupation. Similarly,if the fact is not as believed, and the contract states that this rendersthe agreement void, then the contract is voided by the mistake. Taken in tandem, the textbook and its accompanying study guideprovide a good understanding of the fundamentals of business law. Intestacy is what occurs ifthere is no valid will or if there is property not addressed in the will.Intestate succession passes the property in question to certain relativesof the decedent and is based on the state's legislation. Chapter 2 addresses the "Obligations and Performance" associatedwith sales contracts. In the last chapter in the commercial paper section, Anderson, Foxand Twomey discuss the "Checks and Customer-Bank Relationship." Checks havebecome the most common method for settling obligations in Americanbusiness, which is why they are accorded a position of prominence withinthe text. In Chapter 3, Anderson, Fox and Twomey move to a discussion of crimesand torts, both of which, along with contract law, are key to business law. Such discharge may occur individually or by someevent which discharges all parties at the same time. For example, filing in a public office is not requiredfor consumer goods since the amount involved is generally not enough towarrant the filing expense. Proper conduct is allowedwhile improper conduct is prohibited. Fire insurance covers a loss from a hostile firewhich was the proximate cause of the loss. Contracts are prevalent in personal businessactivity as well as in business-to-business activities. In some cases, the individualrights are upheld, while in others, courts decide in favor of groupwelfare. Generally, securedinventory transactions follow the same regulations as secured credit salesof consumer goods. When two or more corporations are combinedto form a larger enterprise, it may be the result of a consolidation, amerger, or the formation of a conglomerate. The person for whom the trust is held is called the beneficiary;the person who holds the property is called the trustee. Shares of stockmay be obtained by subscriptions or by transfer of existing shares. Chapter 44, "Powers and Duties of Partners," asserts that the powersand duties of partners are generally governed by a partnership agreement;where situations are not covered by the partnership agreement, partnershiplaw applies. The injured person may seek remedy by common law, the UCC,or by case law. As in many legal documents, the text uses numbered aswell as captioned paragraphs to enhance its organization, and good use ismade of layout conventions such as color and type to enhance thereadability of the book. (1983). The study guide is divided into the same 11 parts as the main text,and each chapter is given brief review. When both parties make the same mistake of fact (a bilateralmistake), the agreement is void. Commercial paper can also be discharged, which Anderson, Fox andTwomey address in Chapter 27. Anderson, Fox and Twomey begin thischapter with a discussion of the difference between real and personalproperty. Twomey. Owners of thesefractional parts are called shareholders or stockholders. Arbitration, which is legally binding, can beused in place of courts in private cases. Cases are included in thetext near the principles they illustrate, and questions at the end of casesgive the reader insight into key aspects of the case. To recover for a tort, the defendant must be guilty of a voluntaryact or omission and the plaintiff must show injury as a result. Cancellation and renunciation are two other ways in whichindividual discharge may occur. Collision insurance, one type of auto insurance,compensates the insured driver or car owner for damages; liabilityinsurance protects the car owner or driver from the claims of others. Sometypes of defenses are considered to be universal against all types ofholders. Once acontract has been entered into, spoken words (parol evidence) are generallynot enough to modify the terms; this must be done in writing (p. 246). At the end of each section,practical exercise is presented which provides a real-world scenariorelevant to the entire part just covered. When negotiation is involved,the transferee may find his rights superseding those of the transferor.When assignment is used as the means of transfer, only those rights whichwere formerly possessed by the assignor can be transferred to the assignee. When theinstrument has passed to a holder in due course, the holder is free frommany types of claims. Leases are governed by the common law of property and havebeen modified by judicial decisions as well as by statutes. Operation of law refers to the discharge of a contract in cases suchas when the contract has been altered or destroyed by the obligee. In some cases, theprincipal is liable even for unauthorized contracts. A discharge of party primarily liable orthe primary party's reacquisition of the paper effectively discharges allparties. Most often, the conflict isone of individual versus group benefit, and there is not a clear-cut rulewhich identifies which takes precedence. The authors outline 15 objectives, includingprotection of the state, personal protection, protection of public healthand morals, protection of property and title protection, then move to thequestion of what happens when conflict arises. Each chapter for reviewbegins with a summary of the key points of the text chapter, then movesinto a number of questions. In some cases, a contract involving consumer purchasescan be rescinded by the purchaser during a short period intended to givethe purchaser the chance to think things over. Businesslaw: Principles, cases, environment. Chapter 19, "Risk and Property Rights," takes on the issue of whathappens when problems arise which are not specifically covered in the salecontract. 269). There are alsospecial venture organizations, such as limited partnerships, jointventures, cooperatives and unincorporated associations. 2 3). 471). Real property may be held in severalty(individually), or it may have multiple owners. Title may be acquired in several ways. References Anderson, Ronald A., Ivan Fox and David P. The act dictates howcreditors present their claims and how assets are distributed in answer tothose claims. Reorganizations and payment plans applyto businesses and to individuals who owe unsecured or secured debts ofunder $1 , or $35 , , respectively. Jurisdiction refers tothe power and right of a particular court to decide a specific controversy,and the Supreme Court is identified as the highest federal court. The storage andtransportation of goods, and the documentation necessary to accomplishthis, is of great interest to the general public welfare of Americans, andso merits special liability, generally more stringent than that imposed onordinary bailees. It is because commercial paper is negotiable similarly to moneythat it is popular as a means of exchange in commercial transactions. Condominium ownership is acombination of individual and co-ownership. Examples of such bailments includewarehousing and transportation by a carrier. Anderson, Fox and Twomey define agency as a relation based upon anagreement by which one person is authorized to act for another in makingcontracts with third persons (p. Consideration is necessary for a contract to be valid.The absence of a consideration makes a promise nonbinding, and mutualconsiderations, in which each party makes a promise to the other, arevalid. There are some exceptions tothis, however, including partial performance of a land contract. Dissolution ends the right of thepartnership and reduces the authority of the partners. The injured partymay bring an action for damages, rescind the contract, seek specificperformance, or seek relief from an administrative agency of thegovernment. Consumer protection tendencies in the courts have led to theimposition of contract law over real estate law in recent years (p. Here, an employer and employees contractwages, hours, working conditions and the duration of the employmentrelationship. West Chicago:Southwestern Publishing Company.----------------------- 1 In adeed, a grantor transfers ownership or an interest to the grantee. A corporation is a legal entity created bygovernmental action. Some commercial paper requires an endorsement; other types do not.If the transfer is made according to the UCC, it is considered anegotiation and the transferee becomes a holder. The goal of this act is toestablish safety and health standards and enforce those standards and otheremployer duties. Abreach of contract occurs when one or both parties fail to perform thecontract. Mistakes associated with assent may render the contract void, ormay have no effect whatsoever. So long as the directors behave within lawful bounds, theshareholders have no recourse as to the running of the corporation,although directors can be replaced periodically. The authors thencite several instances when consideration is not necessary, such ascharitable subscriptions. 881). Here, Anderson, Fox and Twomey state that anagreement is illegal when its formation or performance is a crime, a tort,or contrary to public policy. A partnership is a legalrelationship created by the voluntary association of two or more personswho agree to carry on a business for profit. Examples of such federal administrative agencies include theFederal Trade Commission, the Interstate Commerce Commission, the CivilAeronautics Board, the Federal Communications commission and the NationalLabor Relations Board. Such time limits are found in theUCC for sales except when suit is brought on a theory of tort. The authors then move to specifictypes of law, such as substantive and procedural. There are a number of different types ofcorporations, including public, private and special service, which may becreated. Criminalcourts hear offenses against the public while civil courts hear mattersinvolving private rights. Chapter 32, "Consumer Protection," begins with an illustration of howthe emphasis of American law has shifted in this century from protection offair competition among businesses to protection of consumers frombusinesses engaged in questionable practices. This arises mostoften from more than one geographic area being represented in the contract(such as more than one state or one state and a foreign country). If there is no will, distribution isdetermined by the appropriate state laws. Liability of real property is typically based uponoccupancy. Chapter 4 , "Third Persons in Agency," addresses the rights andliabilities which the third person (the one who deals with the agent) facesas a result of the agency. In chapter 41, Anderson, Fox and Twomey address employment, which isstructured on contract law. The principal mayalso be liable to the third person for torts or crimes of the agent.Transactions with sales personnel typically do not result in a contractwith the third person because the salesperson's authority is limited totransmitting offers to the principal for acceptance or rejection. Both contain a promise to beresponsible for the default of another person. For an offer to be accepted, the offeree must agree to be bound bythe offer. Bailment leases occurred when the buyer rented the property andgained title after paying sufficient rentals to equal the purchase price.Chattel mortgages were when the buyer gave the seller a mortgage on theproperty for the amount of the purchase price. The beneficiary of a life policy may be athird person or the insured's estate, and the insured typically has theright to change the beneficiary. Most states hold that contracts which arenot in line with this statute are voidable. Automobile insurance is generally required in most states to thepoint that drivers involved in accidents must be able to show proof offinancial responsibility. There are certain rights and duties which accede to both parties of abailment. Chapter 52, "Trusts," ends the section on estates. Here, Anderson, Fox andTwomey state that the law of sales is the result of combining the lawmerchant, the common law of England, and former statutes as modified by theUniform Commercial Code (UCC). The security interest is then given to this third person (bank or financecompany, for example) rather than to the seller. Chapter 25 examines the "Rights of Holders and Defenses" with regardto commercial paper. Insurance, or the contract by which a promise is made to pay anothera sum of money if the latter sustains a specified loss, is discussed inChapter 36. Once the listener acts on the statementand is actually harmed, fraud results. honest but financially overburdened debtors can pay into court whatever property the debtor possesses, be relieved of most obligations, and start economic life anew. 536). Chapter 37, "Kinds of Insurance," details the various types ofinsurance available. Othermethods for transferring real property include eminent domain and adversepossession. Secured credit sales of equipment are treated in thesame manner as secured transaction to inventory with the exception that thebuyer does not intend to resell the equipment, but to use it for his ownpurposes. In cases wherenegotiation is lacking, the transferee is an assignee. In some instances, the buyer and seller may agree thatthere is to be no warranty, though such an agreement is limited by publicpolicy or consumer-protection guidelines. Contractual capacity, which the authorsdefine as the "ability to understand that a contract is being made and tounderstand its general nature" (p. Some contracts may also impose specificterms upon either the buyer, the seller, or both. An offer, and the contract which results from that offer, mustbe definite in nature as opposed to vague, with some exceptions having beenrecently recognized by courts. All states have general laws which govern the creation ofcorporations. While oral contracts are considered valid, somecontracts must be in writing while, as a practical matter, it is wise forall important contracts to be in writing. Commercial paper is generally more easily transferred thanordinary contract rights, and the transferee of commercial paper may gaingreater rights than ordinary transferees. Under Article 9, a creditorwho meets the requirements of the article may create a security interest toprotect against default by recovering the goods in the debtor's possession. This is apromise dependent upon an act of some type. States may also appoint administrative agencieswhich deal with fair employment, workers' compensation and housing.Administrators can inspect premises with a search warrant and subpoenapersons to testify and produce records. Of course, there are other types of secured transactions, whichAnderson, Fox and Twomey discuss in Chapter 34, "Other Security Devices."Secured loan transactions may be used to protect someone who lends oncredit apart from a sale. In this chapter, the authors discuss the basicprinciples of personal property, how title to property is acquired and thelaw concerning multiple owners of personal property. A trust isdefined as a "legal device by which property is held by one person for thebenefit of another" (p. Shareholders have indirect control over the corporation, ascontrasted with partners or sole proprietors who generally have directcontrol. Malpractice liability, involving such professionals asdoctors and accountants, is also included in this section. Chapter 46, "Corporate Powers" begins by specifying that corporationshave certain powers by common law and by virtue of the statutes which applyin the state where incorporation took place. Loss from a friendly fire isgenerally not covered by fire insurance unless expressly stated in thepolicy. Personal property includes all otherproperty (p. The promisor is the insurer or underwriter; theinsured is the person to whom the promise is made. Administrative agency decisions may imposeregulations on contracts which are in addition to Congressional law and thecourts. Such an interest exists wheneverthe loss of the property would cause a money loss to that person. Such a precaution ensures thatboth parties know what they are agreeing to at the time of the agreement,prevents disagreements later on as to the nature of the agreement, and,most fundamentally, renders it most difficult for either party toeffectively and convincingly later deny entering into the agreement. The study guide which accompanies the text was written by the sameauthors as the text and uses a variety of techniques to make sure thereader gains the maximum amount of knowledge. The maker is liable topay the amount specified in the note on the date indicated, or on demand.There are specific procedures for presenting a note for payment, which alsoapply to drafts and checks. When the contractis broken by the seller, the buyer similarly has a number of optionsavailable for remedy. Recognizing thecomplexity of the material they present, the authors include an answer keyfor all questions in the study guide, including cases and practicalexercises. When one person becomes responsible forthe debt of another person, the relationship may be one of suretyship (inwhich case the third person is called a surety), or guaranty (in which casethe third person is called a guarantor) . There are no cases in thislargely introductory chapter. In most states, minors up to age 18 are not considered tohave contractual capacity although they may well be mentally capable ofunderstanding contracts. Whenemployees are without work through no fault of their own, they are eligiblefor unemployment compensation which is provided typically through afederal/state system. The four-chapter Part 6, entitled, "Government, Business andSociety," begins with a chapter on "Government Regulation." Here, theauthors identify that the problems of government regulation today relate to"what to regulate and how to do it" (p. Secured credit sales of inventory, or goods which are purchased forresale, may involve a third person who provides credit for the transaction. In cases where the nature of a bailmentis the movement, not the storage of goods, a common carrier may be thebailee. Typically, thelandlord is not liable for harm unless there is a specific covenant in thelease. Distribution under the will is what occurs after all debts and taxeshave been paid and a valid will is in place. The price may be monetary, an exchange of property,or the performance of services. According toAnderson, Fox and Twomey, an agreement is formed when an offer is accepted(p. It is a plan of security against risk which charges lossesagainst a premium fund. A right in anobject is property without regard to the fairness of that right. Unilateral mistakes generally do not affect the contract unless themistake is known or should have been known by the other party. In an auctionsale, title passes when the buyer's offer is accepted by the auctioneer.Sellers may keep a security interest in their goods to secure the paymentof the price. Anderson, Fox andTwomey suggest that the law is not an end unto itself, but is a means forobtaining social justice. There is an extensive glossary,and an index of cases as well as a subject index. Since shareholders elect the directors,the shareholders indirectly control the corporation. Or, it may be used to protect sellers and otherfinanciers on the sale of goods. The remedies are dependent on the nature of the actual breach.Trusts may be implied, or they may be created for charitable purposes. Chapter 8 focuses on consideration, which Anderson, Fox and Twomeydefine as "what a promisor demands and receives as the price for thepromise" (p. The liability of the agent to the third person depends on the mannerin which the transaction was conducted and the nature of the agent's acts.Third parties may be liable to the agent because of the manner in which thetransaction was conducted, or because of acts which caused harm to theagent. However, readers who also purchase thestudy guide will find those summaries adequate. This relationship is also subject to labor legislation whichdeals with problems not adequately addressed in the contract. In addition, Anderson, Fox and Twomey cover tort liability to thirdpersons for breach, which may arise from either nonperformance or improperperformance. A trust may encompass either real orpersonal property, and problems which arise in regard to trusts require adetermination as to the nature of the relationship which the trust hascreated. Such problems typically involve risk and property rights inrelation to damage, creditors' claims or insurance coverage. Some sales contracts must be in writing to beconsidered valid. Workers' compensation statutes provide that injuredemployees are entitled to compensation for accidents which occur as aresult of employment. Fixtures, which are personal property attached to the earth or placedin a building in a particular manner, enable personal property to change toreal property which may enable third persons and creditors to obtain rightsto the real property. A contract may be dischargedby "performance, mutual agreement of the parties, impossibility ofperformance, operation of law, or acceptance of breach" (p. Sellers and lenders who engage in wrongful consumer practices maybe held either civilly or criminally liable, depending on the situation athand. Another requirement of the offer is that itbe communicated to the offeree by the offeror or under the offeror'sdirection. Generally, these are contractual in nature, buttort and criminal liability can also arise with regard to the agent and,sometimes, with regard to the principal, as well. Offerors must intend to enterinto this legal obligation; this requirement is called contractualintention. Temporary impossibility typically has no effect on theobligation to perform the contract. Chapter 2, "Law as an Expression of Social Forces," turns thereader's attention to the role of law within society. In addition, the authors have takencare to include information on the legal and regulatory environment inwhich business operates, as well as the social forces behind the creationand evolution of specific principles and rules. Another type of special bailee is ahotelkeeper, who has a bailee's liability with regard to property entrustedto the hotelkeeper's care. Whenlooking at the specific elements of a contract, the authors identify sixpotential elements: there must exist an agreement; it must be between oramong competent parties; there must be mutual willingness to enter into theagreements; it must be supported by consideration; it must be undertakenfor lawful purposes; and, it must be undertaken in the form required by lawwhen applicable (p. In Chapter 11, Anderson, Fox and Twomey focus on interpretingcontracts, and begin by suggesting that carefully drafting contracts canhelp avoid conflict later on. Sales are consideredcontracts, and in keeping with contract law, the sale contract may beeither oral or written. In Part 9, Anderson, Fox and Twomey take on "Business Organizations,"and begin this seven-chapter section with a definition of the "Forms ofBusiness Organizations." There are three types of business organizations:sole proprietorships; partnerships; and corporations. Chapter 15, "Personal Property," begins a three-chapter section onPersonal Property and Bailments. 116). Breach of trustoccurs when the trustee fails to perform in a manner in accordance with thetrust. The bailormay have the right of compensation and is expected to provide propertywhich is in reasonable condition. Each of the 52chapters ends with a series of questions reviewing the material in the textand in the cases. Each party to a sales contract is typicallyresponsible for acting in good faith with regard to the sales contract.The seller is responsible to deliver the goods. Chapter 3 covers "Administrative Agencies," which carry out policiesspecified by Congress. The document whichcontains the written contract is called a policy. The Sherman Act prohibits restraint of trade ormonopolization of interstate commerce. The last section of the book, Part Eleven, is, appropriately enough,a two-chapter examination of estates. Substantive definesrights and liabilities while procedural law specifies the steps to befollowed in enforcing those rights and liabilities. Thefederal government imposes regulations regarding standards for food, drugsand cosmetics as well as regulations regarding false advertising andlabelling standards. Part 4, "Sales," begins with a discussion on the "Nature and Form ofSales," the first of this five-chapter section. Administration ofan estate may be performed by someone named within the will, or it may bedone by an administrator if the decedent was intestate. In Chapter 1 , Anderson, Fox and Twomey turn their attention to theform of a contract. Chapter 6, "Contractual Capacity," addresses who is actually able toenter into contractual agreements. In some cases, the partiesmay mutually agree to terminate the contract. In addition, a person may be held liable for a tortcommitted by another person such as a tort committed by an employee or achild. According to the authors, environmental lawsmay be enacted to prevent pollution. Consumer credit sales are treated differently than are sales ofinventory goods. The term, "property," is used in the legal sense to refer to therights that an individual possesses in some object or thing. In corporate stock, the fractionalpart of a corporation is called a share or a stock. There is no one accepted way for this to be done other thanthat the offeree clearly express agreement to the offeror. In the case of a consignment, the owner of the goodsretains the title but sends the goods to a dealer to sell. Therights and liabilities of those who acquire stock are different from theowners of proprietorships or partnerships since the corporation isconsidered a separate legal entity. Real property may betransferred by the transfer of a deed, which is a written instrument. Chapter 51 deals with "Decedents'Estates." A will, which is a document which provides for the distributionof property after the time of death (p. Somecourts also excuse performance on the grounds of economic or commercialfrustration. Chapter 45, "Nature, Creation and Termination of Corporations,"addresses the special characteristics of this most important form ofbusiness organizations. In addition, the whole contract must beconsidered when the issue of interpretation is raised, not just one orseveral parts of the contract. 863), goes into effect after alldebts of the decedent are paid. Such community planningmay be private (restrictive covenants) or public (zoning). The first bankruptcy act was passed by Congress in 1898,amended in 1938 and revised greatly in 1978. Nonetheless, the text andstudy guide serve their purpose well: they give a good overview of the mainpoints of business law. Part 5, "Commercial Paper," opens with a description of the "Kind ofPaper, Parties, and Negotiability," in Chapter 23. 5 7). Employee safety is covered by the OccupationalSafety and Health Act (OSHA) of A 197 s. Chapter 5 examines the agreement itself in detail. Shareholders are protected from the liability of the corporation byvirtue of the fact that the corporation is considered a separate legalentity. (p. Chapter 39, "Principal and Agent," explores the relationship betweenthe two parties of an agency agreement. Whenthere is partial illegality, those parts which are legal may be enforced.There is also a tendency to concentrate on good faith and fairness, thoughthis is a result of the evolution of law, not a result of the letter of thelaw. The last chapter in this section on sales takes on the issue of"Remedies for Breach of Sales Contracts." The law makes some remediesavailable which may not have been provided for in the contract; theseremedies may be limited by statutes of limitations, which impose a timelimit on injured parties to seek remedy. The rights andduties of the landlord and the tenant are based on real estate law andcontract law. Every rule has an objective, and laws are no different, each having aspecific objective. In Chapter 43, "Creation and Termination of Partnerships," Anderson,Fox and Twomey trace modern partnership law back to Roman Law, the lawmerchant and the common law of England. Generally, a life insurance policy may besurrendered for a cash value after it has been in force for some number ofyears. Chapter 17, "Special Bailments and Documents of Title," coversbailments which, due to circumstances or the nature of the property, have aspecial effect on the public interest. They differ in that asurety is primarily responsible for the debt, while the guarantor is onlysecondarily liable. Chapter 12, "Third Persons and Contracts," describes the way in whichthird parties can be involved in contracts between two other parties. Warehousing refers to long-term, large scale warehousing which maynot involve a physical building. Regardless of whether the transfer takes place bynegotiation or by assignment, some implied warranties are associated withthe paper. If injury is sustained by a third partyas a result of the bailment, liability may be imposed on either the baileeor the bailor depending on the circumstances. Orderpaper is payable only to the specific order of the person named on the faceof the paper; bearer paper is payable to whoever is in possession of thepaper. Shareholders elect directors, who control the corporationdirectly. The promise to perform something which is already legally obligedtypically is not recognized as consideration. Part Eight, "Agency and Employment," is a four-chapter section whichopens with Chapter 38, "Agency -- Creation and Termination." When agencyexists, one party can take the place of another and act on their behalf.Thus, one person can make contracts in many different places and with manydifferent parties that would be impossible to accomplish if he wererepresenting himself in all cases. Chapter 14, the last chapter in the contract part of the book, takeson the specific issue of contract breaches and remedies. An insurance agent is anagent for a specific insurance company; an insurance broker is anindependent contractor not beholden to any one company. Regulations developed by administrative agencies arenot binding until they are printed in the Federal Register. Basing a ruling on courtprecedent is known as stare decisis. Such remedies may include government agency action,action by the attorney general or action undertaken by the consumerhimself. Chapter 47, "Corporate Stock and Shareholders," goes into the detailsof how ownership of a corporation is divided among shareholders. Transfer may be made of certain rights with respect to the lease.This may occur as a result of voluntary transfer or involuntary transfer. In Chapter 24, Anderson, Fox and Twomey take on the various methodsassociated with "Transfer of Commercial Paper." Commercial paper may betransferred by negotiation or assignment. In some instances, factors may be brought into the picture. Typically, a contract is discharged by the performance of theagreement terms. A factoris a special type of bailee who sells goods consigned to him as though hewere the owner of the goods. Exercising undue influence over asusceptible person, or threatening harm (duress), can also call intoquestion the validity of a contract. The most common wayfor individual discharge to occur is for payment to be made to the properperson. An offer enables the offeror to bind the offeree contractually.However, this power can be terminated rendering the offeree unable torevive the offer without specific agreement by the offeror. (1983). Mortgages are agreements which create an interest in realproperty as security for an obligation. Propertyrights in trademarks, copyrights and patents are governed by federalstatutes. Some corporations maybe dissolved by court decree. Real property is defined as "land and things permanently affixedto land, such as trees or buildings. When the sales contract is breached by the buyer, the seller mayplace a lien on the goods, resell the goods, cancel the contract, sue fordamages, or bring action to recover the purchase price. Administrators maymake determinations with or without hearings, and may impose penaltieswhich are binding. Although letters of credit are most prominent in internationaltrade, they are gaining popularity in domestic trade, as well. 385). Checks eliminate the need for excess security when large sums ofmoney are involved, and the written record provided by the canceled checkand check register can be used later to show that payment was made. Banksmay be held liable for paying a check when a stop payment order has beenplaced, or in cases of forgery or alteration. In addition, the authors provide the texts for theUniform Commercial Code (UCC), the Uniform Partnership Act (UPA), and theUniform Limited Partnership Act (ULPA). Fraud requires a deliberate false statement by oneparty who knows that the statement is false and who intends for thelistener to believe the statement. 8 ). Generally, courts are notconcerned with whether the consideration is adequate for the promise athand, although that precept has undergone recent change. 55). Warranties may be either express or implied; both are treated asexpress guarantees, which is governed by the common law of contracts.Warranties are themselves governed by the UCC. Sometimes, externalconditions may conspire to render a contract impossible to fulfill. An offer means that one party, the offeror, is willing to enterinto a contractual agreement with regard to a specific issue. The five-chapter Part Seven, "Secured Transactions, Creditors' Rightsand Insurance," begins with Chapter 33, "Secured Transactions Under Article9." The article in question belongs to the UCC, and was an effort to bringall devices which gave lenders/sellers an interest in specific propertyinto one type of device called a secured transaction (p. When someone is injured on leased property, the question arises as towho, the tenant or the landlord, is liable for damages. It wouldhave been helpful had Anderson, Fox and Twomey included a summary at theend of each chapter, or if they had included the main points to be coveredat the beginning of each chapter. Although discharged, the defaulting party may be subject tolegal remedies sought by the injured party. There are some limitations to this exemption imposed by statutes. Part 2, "Contracts," is, at eleven chapters, the longest part of thebook, which is appropriate since contracts are central to businessoperations. In addition, courts do not typically uphold unconscionable oroppressive contracts, although they generally do not take intoconsideration whether a contract is fair or wise (p. Typically, salescontracts may be assigned by either the buyer or the seller with no effecton the contract by the assignment. In chapter 13, Anderson, Fox and Twomey turn to the "Discharge ofContracts," or how contracts come to an end. Prior to theUCC, conditional sales enabled the seller to retain title until payment infull. Existinggoods are defined as those which are physically in existence and owned bythe seller at the time of the agreement, while future goods are defined asnot yet owned by the seller or as not yet in existence. Negotiation, which makes the transferee the holder of the paper, iscontrolled by whether the paper is order paper or bearer paper. Remedies range from rescissionto damages to reformation of the contract. Ordinary holders are subject to any discharge; a holder in duecourse may not be subject to prior discharges. The governmenthas also inserted itself into credit card transactions, methods of paymentsfor a transaction and ensuring that consumers do not waive any protectionprovided by law. Each person is called apartner. The bailee agrees to care and maintain the property and toreturn it to the bailor without indulging in unauthorized use. Life insurance policies may be straight life insurance, groupinsurance, insurance which provides for payment of double the amount of thepolicy, or disability insurance. Constitutionallaw (both state and national), statutory law and administrative regulationsare all cited as examples of type of law. 71). In Chapter 26, Anderson, Fox and Twomey take on the issue of"Presentment of Paper for Payment and Acceptance." Here, the authors focuson promissory notes, which are two-party in nature. The sale of goods is the transfer of title to moveable personalproperty for a price. Implied warranties aretermed that because they are implied by law, not by any action on theseller's part. A draft generally involves three original parties which requires theholder to preserve the liability of secondary parties. Recognizing that society is composedof individuals, the authors also recognize that what one person considersequitable justice, another may consider inequitable. Theduties of a partner are generally the same as those of an agent, and areinfluenced also by the standards of fair dealing necessary for the successof the partnership. . When the agency is terminated, the agent loses allrights to act on behalf of the principal. Complaints may be filed by anadministrator or by an injured individual; such complaints are then servedon the alleged wrongdoer, who then files an answer. The first part of the book, "Legal Rights and Social Forces,"provides the reader with an overview of law in society. There are specific guidelineswhich outline the agent's authority, including the scope of authority, theeffect of the authority, and the duty of third persons who deal with theagent to determine the exact extent of the agent's authority. Property may be purchased,which is covered by regulations and laws relating to sales. This section begins with a definition of contracts, whichAnderson, Fox and Twomey identify as "binding agreements" (p. In Chapter 1, Anderson, Fox andTwomey suggest that law consists of principles of conduct which areconstantly evolving and which can be enforced by courts. Criminal law is concerned with conduct that is considered harmful tosociety. Studyguide for business law: Principles, cases, environment. In Chapter 31, "Environmental Law and Community Planning," Anderson,Fox and Twomey bring up the body of law which tries to "prevent damage tothe environment" (p. There are four types of cotenancy: tenancy in common; jointtenancy; tenancy by entirety and; community property. In some cases, these are multiple choice ortrue/false; matching exercises and completion questions are also used.Brief cases (just a few sentences) are also included with the readerprompted to provide analysis. Local government, states andthe federal government all have the power to regulate business. This six-chapter sectionbegins by identifying the basic types of commercial paper. . Dissolution of a corporation may be by agreement,insolvency, reorganization or forfeiture of charter. The text is divided into 11 parts: legal rights and social forces;contracts; personal property and bailments; sales; commercial paper;government, business and society; secured transactions, creditors' rightsand insurance; agency and employment; business organizations; realproperty; and, estates. Mistake, fraud, undue influence andduress render contracts voidable (p. It also places certain duties on the debtor, such as filinga list of assets and liabilities, and exempts some of the debtor's assetsfrom creditors' claims. 91), is necessary to uphold the validityof any contract. Anexample of this is where party B promises A that B will make a payment toC. 139). Title to existinggoods identified at the time of the contract passes to the buyer at thetime of agreement. The buyer and seller may mutually agree to limit theremedies which are provided by law by stating so in their contract. Some powers held by acorporation are the same as those held by individuals. There is an agreement in these situations,whether express or implied, that the person to whom the property isentrusted will return the property to the owner or will dispose of it asagreed to by the owner. These exercises are more in-depth than the rest of the material in the study guide. It was originally designed to force fraudulent debtors intopaying off their creditors without hiding or masking their true assets.Today, bankruptcy can be brought by either the debtor (voluntary) or by thecreditors (involuntary), and seeks to achieve a balance between the demandsof the two. Businesstorts include intentional mental distress, false imprisonment, fraud andunfair competition. Chapter 35, "Bankruptcy," details how . The discharge typically releases the debtors from thedebts associated with the action. Part Ten, a two-chapter section on "Real Property," begins withChapter 49, a discussion on the "Nature and Ownership of Real Property."Here, Anderson, Fox and Twomey trace real property law to the days offeudalism, and find that the special characteristics of permanence anduniqueness have greatly influenced the rules that have evolved to resolvereal property disputes. Oneof the most common of these is a third party beneficiary contract. The principal may be liable to the third person for properlyauthorized and executed contracts issued by the agent. In theemployment contract, the employee undertakes to perform services or performwork under the direction and control of another, the employer. The person making theassignment is the assignor, and the person accepting the assignment is theassignee. In Chapter 21, "Warranties and Other Product Liabilities," Anderson,Fox and Twomey address what happens when goods are defective and causeinjury or loss. Impliedterms may be imposed by courts when a contract does not specificallyprovide for a situation, although if a contract is deemed to beintentionally silent on the issue, terms will not be implied.Interpretation also comes into play when laws conflict. At the same time, a listof key terms for each chapter, and an overview of the 11 major sectionswould have also increased the textbook's value. Thus a tenant may be held liable for the injury caused by someconditions of property. The result is a guide which proves itself indispensable to thereader. 621). Chapter 7 takes on the "Genuineness of Assent," which holds thatmutual assent must be freely given without fraud, undue influence orduress. Agencies may be terminated by the act of one or both parties or byoperation of law. Litigation may result among the original partiesinvolved, or between the maker and a subsequent holder. Kinds of holders include ordinary and favored. Business Law: Principles, Cases and Environment, by RonaldAnderson, Ivan Fox and David Twomey, provides an indepth examination of theprinciples of private law and cases. In order for theinsurance to be valid, the insured party must have an insurable interest inthe property at the time the loss occurs. Partnerships may be dissolved by the acts of the partners, bycourt order, or by operation of law. Assignment may occur from mutual agreement by the parties involved,or by operation of law. Or, they may be enacted to providefor the orderly (planned) growth of communities. 567) Anderson, Fox and Twomey point out that originally, the law was notconcerned with benefitting the debtor as it was with giving benefit to thecreditors. 165). 2 ). Commercialpaper is itself defined by Anderson, Fox and Twomey as written promises ororders to pay money that may be transferred by the process of negotiation(p. In addition to the ability to understand the nature of acontract, there are some other factors necessary for contractual capacity,including age. These include cases whereassignment increases the burden of performance, where personal satisfactionis a condition of the contract, where personal services are involved, andwhere transactions are based on extending credit. Chapter 9, "Legality and Public Policy," focuses on contracts as theyrelate to society at large. Chapter 5 , "Leases," explains how the owner of real property maygive possession and benefit of real property to another person for someperiod of time. 55). The buyer is responsibleto accept and pay for the goods. Others are uniqueto corporations, such as the power to exist in perpetuity. Twomey. 845). Property may be owned by one party (severalty), or by several persons(cotenancy). Wages andworking conditions, including the 4 -hour work week, are covered by theFair Labor Standards Act, and the Fair Employment Practices Acts preventdiscrimination because of race, creed, sex or age. To help achieve this goal,statutes and administrative agencies oversee business activities such asadvertising (administered by the Federal Trade Commission). However, thedirectors and officers control the operation of the corporation on a day-to-day basis. A statute of frauds typically provides for which types of contractsmust be expressed in writing. There arealso duties which the agent must perform to the principal, and liabilitieswhich the agent accepts when acting on behalf of the principal. The person who turns over the property is thebailor; the person who accepts it is the bailee (p. Such mistakes may be either unilateral ormutual in nature. Ambiguous and contradictory terms also leadto the necessity of contract interpretation, most often by courts. Price fixing and pricediscrimination are also disallowed by government statutes. The scope of a partner's authority is determined by thepartnership agreement and the nature of the partnership relationship. A principal, or employer, can sometimesbe held liable in tort when an agent or employee injures a third personwhile performing business related tasks on behalf of the employer.Contract law and tort law can thus come into account when dealing withagency and employment. In the case of default, the secured party has specific rights toenforce the claim. Even so-called "free" goods have a price,and so are covered by the sale regulations. By definition,contracts create obligations or duties which are legally binding. Anderson, Foxand Twomey identify six ways in which offers can be terminated: revocationof the offer by the offeror; counteroffer by the offeree; rejection of theoffer by the offeree; expiration of the offer over time; death ordisability of either the offeror or the offeree; or subsequent illegality(p. Assignments are transfers of rights. States are able tolegislate general welfare, health and safety, but cannot enact laws whichconflict with the Constitution or federal law. Such illegal agreements are void. Tort law is a private injury resulting from other than voluntaryagreements, such as the violation of a private duty, as opposed to a crime,which is the violation of a public duty. Anderson, Ronald A., Ivan Fox and David P. The assignee may generally sue directly on the contract.Contracts may specifically prohibit the assigning of rights, and someassignations are ordinarily prohibited. Such mistakes may be with regard toexpectations, with regard to points of law, or collateral matters. Misrepresentation can lead to a contract being void if themisrepresentation led to the other party entering into the contract.Similarly, nondisclosure on the order of concealment can make a contractvoidable, as well. The agent is the person who is soauthorized and the principal is the person on whose behalf the agent acts.An agency may come about by appointment, conduct, ratification or operationof law. They state that the purpose of law is to"provide order, stability and justice" (p. This three-chaptersection examines law and law enforcement agencies, law as an expression ofsocial forces, and crimes and torts. Commercial paper may bepromissory notes, drafts (or bills) of exchange, checks or certificates ofdeposit. Drafts musttypically be presented for acceptance as well as payment.
If this paper is not what you are looking for, you can search again:
or
We can write a Custom Essay just for you.
Browse Essays by Subject