The Legal Environment of Business
BA 491Spring 2007
Instructor: David Scalise, JD Office: Malloy #240, 422-6823
Professor of Law in Business Office Hours: M,W 12:00-1:00
Member, State Bar of California and by appointment
E-mail scalised@usfca.edu, Fax # 422-2502
Teaching Assistant--Tiffany Vail 422-6823
Office Hours 12:00-1:00 M,W Malloy #240 and by appointment
Business Law, The Legal, Ethical
and International Environment,
6th edition (Cheeseman)
Tenants Rights, Nolo Press, latest edition (used, earlier editions may work as well)
http://www.usfca.edu/fac-staff/scalised ........BA 491 Course Materials
M,W 9:40-11:25, Malloy 129
❒ To learn to brief legal cases and sharpen presentation skills.
❒ To experience the mediation process as a means to resolve legal disputes.
❒ To gain a cursory notion of the State and Federal court systems, Constitutional Law, Law of Torts, Product Liability, Crimes and Intellectual, Personal and Real Property.
❒ To develop a practical understanding of California Tenants Rights.
❒ To achieve a functional awareness of the Law of Contracts and contract drafting
❒ To cultivate and refine legal reasoning and writing skills.
❒ To engage ethical issues in the law and begin to develop critical thinking skills.
❒ To gain an appreciation of the law and its application in the business world.
|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
1. Jan. 22 |
Legal Heritage
Court Systems
Litigation & ADR |
Chapt. 1
Chapt. 2
Chapt. 3 |
B-Law Case: 1.1, p. 18
B-Law Cases: 2.1-2.3, pps. 31-32 Issues in Ethics: 2.4, p. 32 B-Law Cases 3.1-3.6 Review case briefing protocol (See PGA v. Martin), pps. 13-17 in text and follow these guidelines for your in-class, case brief. Case of the Day Gnazzo v. G.D. Searle & Co. p. 1040 William Woo Print: Rush to Judgement Print: Collections Print: Collection Methods |
|
2. Jan. 24 |
Constitutional Law
FindLaw.com Presentation |
Chapter 4
laptops welcome, but not mandatory |
B-Law Cases: 4.1-4.8, pps. 60-62 Anheuser-Busch v. Schmoke, p. 1040 Case Appendix Issues in Ethics: 4.9-4.10, p. 62 Print: Streisand v. Adelman Case of the Day Lee v. Weisman P. 1041 Laura Molinari |

|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
3. Jan. 29 |
Torts Reel Justice #1 Easy Money |
Chapter 5 |
Print: Law of Torts Print: Reel Justice #1 Shin v. Ahn California Court of Appeals decision in 46 Cal.Rptr.3rd 271 (2006) |
|
4. Jan. 31 |
Torts
|
Chapter 5
|
B-Law Cases: 5.1-5.10 Issues in Ethics: 5.11-5.12 Case of the Day Braun v. Soldier of Fortune Magazine, Inc. (p. 1041) Alfred Zollar |
|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
5. Feb. 5 |
Crimes |
Chapter 8 |
B- Law Cases: 8.1-8.8 Issues in Ethics: 8.9-8.10 Print: Law of Crimes Case of the Day Schalk v. Texas (P. 1044) Lily Tang |
A lady walks into a drug store and tells the pharmacist she needs some cyanide.The pharmacist said, ÒWhy in the world do you need cyanide?Ó The lady then explained she needed it to poison her husband.The pharmacist's eyes got big and he said, ÒLord, have mercy ÑI can't give you cyanide to kill your husband! That's against the law! I'll lose my license, they'll throw both of us in jail and all kinds of bad things will happen! Absolutely not, you can NOT have any cyanide!Ó The lady reached into her purse and pulled out a picture of her husband out on a date with the pharmacist's wife. The pharmacist looked at the picture and replied, ÒWell, now. You didn't tell me you had a prescription.Ó
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Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
6. Feb. 7 |
Legal Field Trip Federal Court San Francisco |
None |
Details toward end of syllabus. Call clerk to see if there any material in the public domain on the cases to be heard. |
|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
7. Feb. 12 |
Intellectual Property |
Chapter 7 The Blackberry Saga or Beware of Patent Trolls |
Print: Trade Secrets & I P Print: Court Deals Blow Print: Judge in RIM case Print: Blackberry Maker Print: Bye Bye Blackberry? Print: Blackberry Stay Print: U. S. Court Print: Imagine no Blackberry Print: Patent Dispute Case of the Day Feist Publishing, Inc., v. Rural Telephone Service (p. 1051) Daniel McCarty |
|
8. Feb. 14 |
Intellectual |
Chapter 7 |
B- Law Cases: 7.1-7.8 Issues in Ethics: 7.9-7.10
|
|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
9. Feb. 21 |
E--Contracts and Midterm Review Handout Observers Brief Handout
Torts Mediation |
Chapter 17
|
B-Law Cases: 17.1-17.8 Issues in Ethics: 17.9-17.10 Print: Mediation in Action Print: Torts Mediation Case of the Day Toys "R"
Us, Inc., v. Abir Legal Field Trip Paper due |
|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
10. Feb. 26 |
Mid-Term Examination |
Bring #2 pencil, pen, USF ID # |
Print: Practice Exam |
|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
11. Feb. 28 |
Consumer Law Mid-Term Exam Review
|
Chapter 44
Register your phone @ https://www.donotcall.gov/register/Reg.aspx
|
B-Law Cases: 44.1-44.9 Issues in Ethics: 44.10-44.11 Print: Cigarette Companies Print: Tobacco Firms Print: Direct TV Case of the Day X-Tra Art, Inc. vs. Consumer Product Safety Commission (p. 1073) Clarissa Parkinson Mediation Brief due in class |
|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
12. Mar. 5 |
Environmental Law Reel Justice #2 |
Chapter 45 |
B-Law Cases: 45.1-45.8 Print: Reel Justice #2 Print: Matamoros Update |
|
13. Mar. 7 |
Personal Property & Bailments
www.sco.ca.gov/col/ucp/lawregs/ucplaw.pdf sco.ca.gov (abandoned property) |
Chapter 47
None Read Headers Only None None |
B-Law Cases: 47.1-47.8 Issues in Ethics: 47.9-47.10 Case of the Day Michigan Mutual
Insurance Co. v. Marriott Corporation David Szajngarten |
|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
14. Mar. 19 |
Real Property Landlord/Tenant Law |
Chapter 48 Tenant's Rights Chapters 1-5 |
B-Law Cases: 48.1-48.8 Issues in Ethics: 48.9-48.10 Case of the Day Walker v. Quillen (p. 1076) Stephanie Trinh |
|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
15. Mar. 21 |
Landlord/Tenant Law |
Tenant's Rights Chapters 6-10 (Focus on cases and statutes.) |
Print: Green v. Superior Court Case of the Day Green v. Superior
Court Alex Lam |
|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
16. Mar. 26 |
Mid-Term Review Landlord/Tenant Mediation
|
None
|
None Print: Landlord/Tenant
Observers handout in class. |
|
17. Mar. 28 |
Midterm Exam |
Bring #2 pencil, pen, USF ID # |
Print: Practice exam |
|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
18. Apr. 2 |
Nature of Contracts Contract Creation and Analysis
Midterm Review |
Chapter 9 I-VII mandatory (VIII-XIII optional)
|
B-Law Cases: 9.1-9.4 Issues in Ethics: 9.3-9.4 Print: Dines v. Liberty Mutual Case of the Day Mark Realty, Inc. v. Rogness (p. 1045) Brett Klein Print: Contract Creation Sections I-IV answer questions. Contract Creation assignment (handout) discussed in class. Mediation Brief due in class. |
|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
19. Apr. 4 |
The Agreement |
Chapter 10 |
B-Law Cases: 10.1-10.8 Issues in Ethics: 10.9-10.10 Print: Reel Justice #3 Print: Sidewalk Contract Case of the Day Traco v. Arrow Glass (p. 1046) Micah Thompson |
|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
20. Apr. 9 |
Consideration |
Chapter 11 |
B-Law Cases: 11.1-11.6 Issues in Ethics: 11.7-11.8 Case of the Day Congregation Kadimah Toras-Moshe v. DeLeo (p. 1047) Anuchatibud Sahapoom |
|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
21. Apr. 11 |
Capacity and Legality |
Chapter 12 |
B-Law Cases: 12.1-12.8 Issues in Ethics: 12.9-12.10 Find the California Statute that determines the age for contractual capacity. Case of the Day Carnival Leisure
v. Aubin Chaneng Joe |
|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
22. Apr. 16 |
Genuineness of |
Chapter 13 |
B-Law Cases: 13.1-13.8 Issues in Ethics: 13.9-13.10 Print: Mutuality of Assent Case of the Day Continental v. McDonnell (p. 1058) Kristine Arangcon |
|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
23. Apr. 18 |
no class |
None |
Contract Creation Workday |
|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
24. April 23
|
Pennzoil v. Texaco |
Pennzoil case on reserve in library |
Print: Reel Justice #4
|
|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
25. Apr. 25 |
Written Contracts |
Chapter 14 |
B-Law Cases: 14.1-14.8 Issues in Ethics: 14.9-14.10 Print: Statute of Frauds and PER Case of the Day Hampton v. Federal Express Corporation (p. 1048) Paul Johnson |
|
26. April 30 |
Third Party Rights and Discharge |
Chapter 15 |
B-Law Cases: 15.1-15.8 Issues in Ethics: 15.9-15.10 Print: Assignment and Delegation
Contract Creation due in class.
|
|
27. May 2 |
Remedies |
Chapter 16 |
B-Law Cases: 16.1-16.10. Issues in Ethics: 16.11-16.12. |
|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
28. May 7 |
Remedies |
Chapter 16 |
Print: Reel Justice #5 Case of the Day E.B. Harvey & Co. v. Protection Systems, Inc. (p. 1050) Professor Scalise |
|
Day/Date |
Subject Matter Class Coverage |
Readings Other |
Assigned Cases Due in class for Discussion |
|---|---|---|---|
|
29. May 9 |
Final Exam Review
Contracts Mediation |
None
|
Print: Practice Exam Print: Contracts Mediation Background Information Exam Review Handout Observers brief (due the day of the final exam) |
The information below forms the basis of a contract between student and instructor. Read it carefully before agreeing to all the terms and conditions set forth thereto.
Readings are to allow students a basic understanding of the subject matter and as preparation for class discussions. Focus upon terms and cases in the text and learn to develop an analytical approach to the subject matter. Be prepared to discuss in-chapter, text terms and cases, Business Law Cases at chapter end, and other cases provided by your instructor. As you "brief" a case use PGA v. Martin (p. 13, focus on items 2-4) as a guide. This is the Socratic Method used by most law school professors.
Students are urged to take detailed notes from class discusions. It is suggested that students draft an outline of the subject matter from the text and incorporate lecture notes therein. This methodology has proved to be the most successful approach for studying the law.
Create study groups of 3-4 students. The study groups should meet before each exam. Each student will be responsible for a section of the Exam Review. The responsible student should present cases, provide definitions for terms, review past exams.
Exams are both objective and short answer. Objective question-types will include multiple choice, and "fact situation--evaluations." Examples of the fact situation question-type will be provided. Questions are drawn from the following sources:
|
In-Class Lectures, Notes, Printouts, Handouts, on-line articles, cases, statutes |
|
|
Other (e.g. films, court visits, guest speakers, mediations, in class student briefs) |
❒ Bring a #2 penci, pen, and student ID# to each exam.
❒ Exam booklets and scantron forms will be provided.
❒ One 8.5 -5.5 inch "cheat sheet" (front /back) can be used as reference for the midterm exams.
❒ One 8.5-11 inch "cheat sheet" (front/back) is allowed for the final exam day and time,TBA.
.
Business Law Cases (at chapter end, hereafter referred to as "B-Law Cases") are assigned throughout the semester--consult the syllabus. Students should draft answers to the case questions and respond when called upon. The best response should follow this syllogistic formula when possible:
I. Under California Community Property Law, personal property, real property, or individual income (income broadly construed as money earned through the efforts of a spouse) of either spouse acquired during the marriage is a community property asset with both marital partners acquiring a vested legal interest thereto. This legal interest is defined as an "undivided, one-half ownership right in the property."
II. While any community property asset may be transformed into another asset, the asset retains its community property status.
III. Any income generated from community property is deemed community property.
Roberto and Lulu were married in July 2004. In October of 2004 Lulu was invited to participate on a nationaly televised quiz program named Name that Game, whereby sports-related questions are given to three contestants and the first to respond correctly wins a cash prize. Over a five-week period Lulu won $36,493 based upon her vast knowledge of cricket, lacrosse, and boxing. With her winnings Lulu bought a new D.B. Cooper automobile for $25,000 and invested the remainder in a CD with APR of 2.5%. In December 2004 the couple divorced and a dispute arose over ownership rights. Who gets the car, the CD and the interest?
Under California Law income is broadly interpreted. Thus, game show winnings would probably be considered as income " earned through the efforts of a spouse" and thus a community asset (See I). It is not an unreasonable inference, then, that any property acquired by a community asset (the car) would retain its community property status. To hold otherwise would allow a spouse to alter the character of a community asset by simply making a purchase with their income (See II). Thus the car is a community asset with each spouse holding an "undivided, one-half ownership right" in this asset.
According to Paragraph II of the law, transforming the community income to an investment (the CD) should not alter its Community Property status. Lastly, Paragraph III applies to the CD interest. The interest derived (or generated) from a community asset takes the status of that asset. Thus, the CD (and the interest earned) should also be considered community property and subject to the laws above. The practical solution is to sell the vehicle, cash in the CD and distribute all proceeds equally between the spouses.
Not all B-Law Cases will fit cleanly and precisely within the syllogistic formula but try to use your legal reasoning skills for every case. Moreover, adopt a habit of consistent and thorough preparation of the B-Law Cases throughout the semester.

|
Graded Exercise |
# of Points |
Case discusions and analysis (class participation) are an integral part of any law course. In my experience, it's particularly difficult to participate if you are not in class. An absence diminishes your learning experience, robs your classmates of your involvement, and lessens your instructor's ability to evaluate your analytical skills. Accordingly, a 25 point deduction will result for any absence excepts those related to job interview (internship) illness (documented), death (family), or marriage (yours). If one of these events occurs communicate to your instructor during the office hours immediately following the absence and hand in the late assignment (e.g., written answers to cases). Make it a policy to attend every class.

The website provides the syllabus and BA 491 on-line course materials. The course calendar reflect approximate dates for subject matter coverage. Please allow for flexibility. The Print: icon links to a pdf doc to be printed, reviewed, and brought to class.
Each student will have an opportunity to brief (and present) a legal case during the semester. We will utilize the Socratic Method familar to all law students whereby students will be expected to have read the case but the presenter will stand and recite their brief.
The briefing process involves a distillation of the Key Facts, Issue, Holding, and the Court's Reasoning. A good source-template can be found on page 13 of the text; PGA Tour v. Martin.
All the cases for Case of the Day can be found on-line in the Case Appendix. On the first day of class, William Woo will present Gnazzo v. G.D. Searle & Co. p. 1040. Each presenter (every student will have this opportunity-see syllabus) should spend no more than 3-4 minutes briefing the case. Be prepared to respond to questions from classmates and instructor.
Below is the court schedule for the Honorable Judge Maria-Elena James, Federal Court, 450 Golden Gate Ave, S. F. Travel in pairs, threes, or a group. Take the #5 Fulton bus. Be there promptly at 9:30. Show respect for the judge and her court. No food, drink, cell phones, newpapers. You are allowed to take notes. Maximum, two-page paper, double spaced.
Court will begin promptly at 9:30 am on the 15th floor in Courtroom B. If there are any questions the Judge's Deputy Clerks, Brenda or Alicia, can be reached at (415) 522- 4698. The Judge handles mostly law and motion judgments regarding federal criminal and civil matters. See if the judge's calendar is on line to learn more about the cases.
"Take advantage Judge James' unique personality. She is knowledgeable, honest, admirable, but most of all down to earth. She is unlike any other judge that I have met in Federal Court." (Tim Giuliani, TA, Spring 2005)
Your individual (not a group project) write-up should include:
❒ Name of the case and parties
❒ Nature of the proceeding (motion, hearing, criminal or civil matter)
❒ Summary of the case (briefly)
❒ Resolution of the case (How did the judge handle the matter?)
❒ Your personal reflection of the event (this should be a unique contution)
A resourseful student would also have found pertinent information on defendant and the case, researched the applicable federal law on the matter, and interviewed the judge or her law clerk. If you are unable to attend on the syllabus date, pick another. I encourage the entire class (or as many as possible) to attend on the same date as practical.

❒ Check your usfca.edu address early and often for information from your instructor. This is the only way we can communicate effectively.
❒ Grades are posted weekly on my bulletin board. Handouts, past assignments, and other important documents that you may have missed in class can be found in the plastic file on the bulletin board outside Malloy 240.
❒ I'm available by email scalised@usfca.edu for any issue related to grades, missed classes, and other academic issues.
❒ Don't hesitate to contact me

The Stella's are named after 81 year old Stella Liebeck who spilled coffee on herself and successfully sued McDonalds. That case inspired the Stella Awards for the most uniquely successful (or just bizzare) legal cases in the United States for the past year. Actually joint awards should be given to the plaintiffs, defendants, attorneys and the juries who were involved.
Kathleen Robertson of Austin, Texas was awarded $780,000 by a jury of her peers after breaking her ankle tripping over a toddler who was running inside a furniture store. The owners of the store were understandably surprised at the verdict considering the misbehaving little toddler was Ms. Robertson's son.
The chef at a hotel in Switzerland lost a finger in a meat-cutting machine and submitted a claim to his U.S. insurance company. The company expecting negligence sent out one of its men to have a look for himself. He tried the machine and he also lost a finger. The chef's claim was approved.
A man who shoveled snow for an hour to clear a space for his car during a blizzard in Chicago returned with his vehicle to find a woman had taken the space. Understandably, he shot her. Not convicted.
After stopping for drinks at an illegal bar, a Zimbabwean bus driver found that the 20 mental patients he was supposed to be transporting from Harare to Bulawayo had escaped. Not wanting to admit his incompetence, the driver went to a nearby bus stop and offered everyone waiting there a free ride. He then delivered the passengers to the mental hospital, telling the staff that the patients were very excitable and prone to bizarre fantasies. The deception wasn't discovered for 3 days. Not convicted.
An American teenager was in the hospital recovering from serious head wounds received from an oncoming train. When asked how he received the injuries, the lad told police that he was simply trying to see how close he could get his head to a moving train before he was hit. Received judgement.
Seems an Arkansas guy wanted some beer pretty badly. He decided that he'd just throw a cinderblock through a liquor store window, grab some booze, and run. So he lifted the cinderblock and heaved it over his head at the window. The cinderblock bounced back and hit the would-be thief on the head, knocking him unconscious. The liquor store window was made of Plexiglas. The whole event was caught on videotape. Not convicted.
As a female shopper exited a New York convenience store, a man grabbed her purse and ran. The clerk called 911 immediately, and the woman was able to give them a detailed description of the snatcher. Within minutes, the police apprehended the snatcher. They put him in the car and drove back to the store. The thief was then taken out of the car and told to stand there for a positive ID. To which he replied, "Yes, officer, that's her. That's the lady I stole the purse from." Not convicted.