McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. LE-1 NickelsMcHughMcHugh Nickels Cover

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. LE-2 Legal Appendix Working Within The Legal Environment of Business 1-2

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. LE-3  Trial Courts  Criminal vs. Civil  Appellate Courts  Supreme Court U. S. Court System

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. LE-4 Categories of Business Law BusinessLaw BankruptcyLaw TortLaw ContractLaw SalesLaw Law of Agency PropertyLaw

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. LE-5 Sources of U.S. Law Common Law Statutory Law Administrative Law Federal State Local Court Decisions FTC OSHAEPA SEC FPC FCC FDAITC

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. LE-6 Tort Law Wrongful Act Causing InjuryWrongful Act Causing Injury CompensationCompensation NegligenceNegligence Product Liability- Strict LiabilityProduct Liability- Strict Liability

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. LE-7 Intellectual Property  Patent - Rights to Invention  Copyright - Rights to Literary Work and Art Work (including sound, visual, and performing arts)  Trademark - Protects Name, Symbol or Design (identifies goods or services of a seller)

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. LE-8 Patents Awarded in the U.S. (2002) Source: USA Today

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. LE-9 SchoolInvention U. of California New almond tree named “Winters” to help pollination M.I.T. Method to track motion of body Caltech Golf putter with “raised center of gravity U. of Texas New compound to grow human hair Johns Hopkins Thermal-control apparatus for body armor Unusual U.S. Patents Awarded to Universities Source: Forbes, March 31, 2003

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. LE-10 Origin of U.S. Patents Granted (2000) Source: USA Today

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. LE-11 IBM Average Patents Per Week Source: World Features Syndicate

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. LE-12 $ Uniform Commercial Code $ Warranties  Express  Implied  Full  Limited $ Negotiable Instruments Sales Law

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. LE-13 Contract Law  Contract  Legally Binding  Offer  Acceptance  Consideration  Competence  Legal  Proper Form  Breach  Consequences  Specific Performance  Payment of Damages  Discharge of Obligation

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. LE-14 Criteria for a Valid Contract 1. Lawful 2. Voluntary Acceptance 3. Consideration 4. Competence 5. Proper Form

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. LE-15 Business Law/Legislation  Sherman Antitrust Act  Clayton Act  FTC Act  Robinson- Patman Act  Consumer Protection  Tax  Bankruptcy  Chapter 7  Chapter 11  Chapter 13  Deregulation