Table of Contents
To Eric, Abigail, Jonathan, and Rebecca, who endured my long nights of writing, and smiled the whole time.
Introduction
Business law is in many ways not a distinct area of law, but a compilation of many disciplines. First, you have to understand the framework of our unique form of government. Then youll need to understand the role that regulation plays in todays business environment. Dont forget about understanding the different ways a business can be set up with the laundry list of advantages and disadvantages. Then there are contracts, property, employment law the list could go on and on.
While each business law class is different in who teaches it and what that professor will emphasize, the general principles dont change. And thats what The Complete Idiots Guide to Business Law is designed to help you with. As we spend the next 300 or so pages exploring the law, the driving philosophy behind this book is to give you the tools you need to understand the vocabulary and basic principles. Ive used examples to help illustrate the principles, but I have not relied on case law. Each textbook picks different cases. Those cases are a helpful way to understand how courts apply the law, but there are thousands of them. Instead Ive focused on core principleswhat you have to know to understand this area of law.
Well have some fun along the way, too. I wouldnt teach this class if I didnt enjoy it!
How This Book Is Organized
This book is organized into seven parts. Each part is organized into chapters that expand on the core themes. You can read the parts in order or pick the part that relates to your current reading for your business law text. You may also find that looking at this book chapter-by-chapter works best. The table of contents can be very helpful in pinpointing which chapter and part address the area of business law you need.
Part 1, The Legal, Ethical, and Judicial Environments, looks at how the federal and state legal systems interrelate. We will also look at the sources of law as well as individual rights. Then well explore how disputes are resolved through the court system and which court should hear a case. Well also take a quick look at ethics and how they frame legal issues.
Part 2, The Regulatory Environment, discusses how regulations play a strong role in todays business environment. Governments use regulation to control businesses actions and to enforce laws. Well specifically look at how regulations impact price and monopolies and other anticompetitive behavior. Then well examine administrative agencies and the role they play in enforcing, overseeing, and prosecuting regulations. Finally, well take some snapshots of the federal agencies.
Part 3, Formation of a Business, explores the different ways a company can be formed. Well compare and contrast corporations and partnerships in their many iterations as well as the limited liability corporation hybrid. As we look at each, Ill highlight the advantages and disadvantages of both so that youll be able to determine which form works best in each situation.
Part 4, Contracts and Sales, explores the complex world of contracts. Well look at the key elements to a contract, with an eye on how offer and acceptance works. Then well examine the requirements for a contract, such as writing, consideration, capacity, and how to handle typical problems with contract formation. Next well examine the rules that apply when a contract is breached and the remedies available to the parties. Next, well consider how sales contracts under the Uniform Commercial Code are different from other contracts. Finally, well look at what happens with title and risk of loss as goods are transferred.
Part 5, Employment and Agency Law, is one of my favorite sections because it contains a lot of information that you can use right now. Well start with a look at agency law and then compare that to employment law. Well close the part with an examination of equal employment opportunity law.
Part 6, Property Law Basics, covers the unique rules that apply to property law. Well start by looking at real property and the rules that apply to the different forms of real property. Well also discuss how real property is owned and transferred. Then its on to personal property with a final chapter on intellectual property.
Part 7, Financial Law, starts by reviewing securities law. Then its off to explore negotiable instruments (dont worryjust think checks and mortgages and youre on the right track). Then well survey business crimes and torts.
Thats it! By the time youve read Chapter 25, you will have a good grasp of the basic principles of business law. Congratulations!
Extras
To help you even further, youll find small boxes with special items of interest in each chapter. Youll immediately see a clue to the subject matter of each box by the little cartoon at the top. Heres what youll find:
Consultation
Here youll find helpful hints that illuminate a subject.
definition
Check these boxes for definitions of legal terms and other words that may be unfamiliar to you.
Citations
These boxes share helpful information that expands on the topic at hand.
Stay Out of Jail
Check these tips regarding steps to avoid, when to be careful, and when to seek help.
Acknowledgments
Thanks to Paul Dinas, my acquisitions editor at Alpha Books, for the opportunity. It has been a true pleasure to work with you. Marilyn Allen, thanks for believing I was the right person to write this book. Ron Benrey, thanks for introducing me to Marilyn.
To the attorneys and staff at Bennett Boehning & Clary: it has been a pleasure to work and learn with you. I cant think of anywhere else Id rather practice the law. To the students in my Business Law classes at Krannert: I love teaching this class and helping you learn the law. To my professors and fellow students at George Mason University School of Law: there was no better place to get started. To Senior Judge Loren Smith for choosing me to clerk for himthat was an amazing year of watching the courts work from the inside.
Finally to my family: Eric, for supporting me in all my endeavors and believing I could do this; and to Abigail, Jonathan, and Rebecca, for being such troopers and good sports as I wrote three books at once.
Trademarks
All terms mentioned in this book that are known to be or are suspected of being trademarks or service marks have been appropriately capitalized. Alpha Books and Penguin Group (USA) Inc. cannot attest to the accuracy of this information. Use of a term in this book should not be regarded as affecting the validity of any trademark or service mark.
Part 1
The Legal, Ethical, and Judicial Environments
To understand business law, you need to understand the legal, ethical, and judicial backgrounds. This part will examine each area.
