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Canyon College

COURSE SYLLABUS: BU380 - Business Law

Course Title:	BU380 - Business Law
Department:	Business Administration
Instructor:	Don E. Peavy, Sr., J.D. E-Mail Vita
Prerequisites:	None

PURPOSE OF THE COURSE

This course is an introduction into business law. It inquires into the legal, ethical and global environments in which businesses carry out their activities. Specific attention will be given to acquainting the student with some of the legal and ethical issues confronting those engaged in business and to increase awareness among students of some of the forces with which they must contend as they attempt to negotiate the terrain of business. It is hoped that students will leave the course with a basic understanding of the tension that exists in business between profit and people and a willingness to maintain their concern for people slightly ahead of that for profit.

REQUIREMENTS

1. Readings. The required text is Henry R. Cheeseman’s: Essentials of Business Law, (Hardback) Prentice Hall, 2006. There will also be occasional court cases and other short readings. In addition, there will be a series of lectures that will be posted at the college web site. Students should read the appropriate chapter(s) of the book prior to reading the lectures.

2. Conferences. Students may schedule up to two Internet conferences between the student and the professor. Of course, students may ask questions of the professor at any time by sending an E-mail to the address at the link above.

3. Exams. There will be two exams. One exam will be given after the fourth lecture and a final exam will be given after the eighth lecture. The exams will cover the assigned readings, the lectures, and the conferences.

4. Discussion Questions. Each week students will answer Discussion Questions based on the readings and activities for that week. The questions should be answered and emailed to the instructor. Please copy and paste your answers into an email and do not send them as attachments. Be sure to include the course number and the week of the assignment.

Grades Course work will be weighted as follows:

Mid-term exam	30 points
Discussion Questions	30 points
Final exam	40 points

Grading Scale

90 - 100 points	A Excellent
80 - 89 points	B Above Average
70 - 79 points	C Average
60 - 69 points	D Below Average
59 points or below	F Failing Grade

A =	Clearly stands out as excellent performance. Has unusually sharp insight into material and initiates thoughtful questions. Sees many sides of an issue. Articulates well and writes logically and clearly. Integrates ideas previously learned from this and other disciplines. Anticipates next steps in progression of ideas.
B =	Grasps subject matter at a level considered to be good to very good. Is an active listener and participant in chats, message boards, e-mails and conferences. Speaks and writes well. Accomplishes more than the minimum requirements. Work is of high quality.
C =	Demonstrates a satisfactory comprehension of the subject matter. accomplishes only the minimum requirements, and displays little or no initiative. Communicates at an acceptable level for a college student. Has a generally acceptable understanding of all basic concepts.
D =	Quality and quantity of work is below average and barely acceptable.
F =	Quality and quantity of work is unacceptable.

WEEK 1 INTRODUCTION

Readings: Lecture 1.

During this first week, please become familiar with the virtual classroom and the resources offered there. In addition, you should order your textbook from the link at the virtual classroom so that you will receive the correct edition of our textbook.

Activity: Please send a brief bio to the instructor.

WEEK 2 THE CONSTITUTION & LEGAL TERMINOLOGY

Readings: Chapters 1 & 2 of Text and Lecture 2.

Activity: Go to findlaw.com and create an account.

Discussion Questions:

1. Has your company ever been involved in litigation? Please describe a recent lawsuit in which your company was involved.

2. What are some of the provisions of the U.S. Constitution which govern your organization or business?

3. What is a legal business issue that is currently in the news? What is your opinion of the issue and the proposed solution to it?

4. In our lecture for Week 1, we made reference to the U.S. Supreme Court case of Marbury v. Madison. Locate this case at findlaw.com and send me, via e-mail, the URL address where the case is found as well as a synopsis of what the dispute in the case is about.

5. What legal principle/doctrine is established in Marbury v. Madison?

WEEK 3 ALTERNATIVE DISPUTE RESOLUTION & TORTS

Readings: Chapters 3 & 4 of Text. Lecture 3.

Discussion Questions:

1. Name a recent dispute which arose within your organization or business, or between your organization or business and another organization and business. How was the dispute resolved?

2. If the dispute was resolved without a trial, explain how it was resolve and the benefits of the method of resolution as opposed to a trial.

3. May an employer read the email of its employees without incurring liability for doing so? Why or why not?

4. Answer 4.6 under the Critical Thinking cases.

WEEK 4 ETHICS AND SOCIAL RESPONSIBILITY

Readings: Chapter 6 of Text and Lecture 4.

Discussion Questions:

U.S. sleepwear manufacturers discover that the chemicals used to flame proof children’s pajamas might cause cancer if absorbed through a child’s skin. These pajamas were then banned from sale in the U.S. Some manufacturers sold the pajama material to distributors in other countries where there was no legal restriction against its use.

1. Although the foreign sales were legal, were they ethical?

2. Is dumping unsafe products ethical if it is not forbidden by the receiving nation?

3. You rearrange your travel schedule and flights to ensure maximum frequent flier miles on your personal account. The change results in a $100 increased airfare (the company is paying your travel expenses). Is this action reasonable? Is it ethical? Why or why not?

4. Does your business or organization have a code of ethics? How are employees made aware of the code of ethics? Please discuss a recent problem which was resolved using your organization’s code of ethics.

WEEK 5 MID-TERM EXAMINATION

Readings: None.

Activity: Review. This is a good time to catch your breath and review what you have learned thus far in the course. Do you have any questions? Is there anything we have covered that is still not clear to you? If so, you may email your questions and concerns to the instructor or you may request an Internet conference.

PLEASE TAKE THE MID-TERM EXAMINATION BY THE END OF THIS WEEK.

WEEK 6 CONTRACTS

Readings: Chapters 7,8,9 of Text. Lecture 6.

Discussion Questions:

1. Britney Spears is in Las Vegas with a group of friends and after a night of partying and drinking she and a male friend go to a local Wedding Chapel and get married. The day after, Britney realizes what she has done and petitions a court of competent jurisdiction to annul her marriage. If the judge finds that Britney Spears was under the influence of alcohol at the time of her marriage, will the judge declare that her marriage is valid, void, or voidable? Why?

2. Robert Markus lives in Arizona. Gambling is illegal in Arizona. Robert wants to purchase a new BMW. He goes to a dealership where his friend John Chance is the sales manager. John shows Robert several cars and Robert decides he wants to buy a convertible but after several heated discussions, he and John cannot agree on a price. Finally, John says, “Okay, I tell you what. Let’s not destroy our friendship over a car. We will flip for it. Heads you pay the sticker price and tails you get the car free of charge.” Robert agrees. John flips a coin and it is tails. He gives Robert the keys to the car and Robert drives off in it wrapped in a warm blanket of happiness. A few days later, John telephones Robert and says he was just joking and that Robert needs to either pay for the car or return it. When Robert refuses, John’s dealership files a lawsuit in a court of competent jurisdiction. John answers that he and Robert had a legally enforceable contract. Will the judge agree with John? What will the judge’s decision be? Will Robert get the BMW back?

3. Facts: Brumfield, a promoter of rap singers discovered Kurupt, produced demos for him, booked him jobs, bought clothes for him, paid his personal and living expenses, and let him live him. Kurupt signed an exclusive record agreement and management agreement with Brumfield and his brother. Young invited the three to a picnic where Kurupt was to perform. They were introduced to Knight, the owner of Death Row Records. It was made clear that Kurupt had signed an exclusive contract with the Brumfields. Young convinced Kurupt to record songs on his next album. The album was released and Kurupt was asked by Young to tour with him. Kurupt told the Brumfields that he was going to visit family, but actually went on the tour. He later recorded more songs for Death Row. Death Row paid nothing to the Brumsfields, despite the contract the Kurupt had with the brothers. When moving Kurupt from their apartment to a house, they uncovered paperwork showing that Death Row had paid Kurupt advances for his work. They sued. Issue: Did Death Row Records engage in the tort of intentional interference with the contracts that the plaintiffs had with Kurupt? Who will win the lawsuit?

WEEK 7 SALES AND LEASES CONTRACTS

Readings: Chapters 10 & 11 of Text. Lecture 7.

Discussion Questions:

1. What is the Statute of Frauds and what is its relevance to the sale of goods and the entering into lease agreements?

2. What does “unconscionability” mean within the context of contracts?

3. Answer questions one and two under Problems.

WEEK 8 BUSINESS ENTITIES

Readings: Chapters 16 & 17 of Text. Lecture 8.

Discussion Questions:

1. Sherry, Julien, and Barbara are going to open a beauty salon. What type of business entity would you recommend that they form and why?

2. Johnny Appleseed is in the business of planting apple trees. He operates his business as a sole proprietorship. Johnny has lots of assets as his business has been quite successful. One day, while digging a hole to plant an apple tree, Johnny ruptures a gas line which causes an explosion that destroys Mom & Pop’s Corner Store. Johnny, while distressed over the accident, is not worried about his assets since he has about $100,000.00 invested in the business and he is willing to allow Mom and Pop and the gas line company to go after that amount. Damages from the explosion and fire exceed $500,000.00. Is Johnny correct that he does not face liability beyond $100,000.00? Why or why not?

3. Does the nature of the business one plans to engage in affect the type of business entity one ought to form? Explain and provide an example.

WEEK 9 AGENCY AND EMPLOYMENT

Readings: Chapters 19 & 20 of Text. Lecture 9.

Discussion Questions:

1. O.J. Simpson learns that some property stolen from him is being sold at a private sale. He sends two of his friends to the sale and tells them to take the property and deliver it to him. The friends carry guns and during the resulting scuffle one of the sellers is shot. Can O.J. be held liable for the conduct of his two friends? Why or why not?

2. Is a business usually liable for the torts of its employees? What is a recognized exception to the rule?

3. Tom Brokaw wants to take a leave of absence from his job as a television news anchor to spend time with his wife who is having a baby. His network objects citing the fact that the network is entering the May sweeps during which advertising rates for the nest year will be established. Does Brokaw have a legal remedy?

4. You own an apartment complex. One of your tenants on the second floor experiences a bout of muscular dystrophy which confines her to a wheelchair. You have no elevator in the building. Although she has nine months remaining on her lease, the tenant decides to move out and asks you to refund her deposit. You refuse. She files a complaint with the E.E.O.C. What will the agency decide? What will be the legal basis of the agency’s decision?

WEEK 10 FINAL EXAMINATION

Readings: Chapter 22 of Text. Lecture 10.

PLEASE TAKE THE FINAL EXAMINATION BY THE END OF THIS WEEK.