The Legal Environment of Business

BA 491—Spring 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

    

Texts:

Business Law, The Legal, Ethical and International Environment,
6th edition (Cheeseman)

Tenants Rights, Nolo Press, latest edition (used, earlier editions may work as well)

Professor's Website:

http://www.usfca.edu/fac-staff/scalised ........BA 491 Course Materials

Class Meetings:

M,W 9:40-11:25, Malloy 129

Course Objectives:

❒ 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

 

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
Property

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
Licensing

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

Background Information

Case of the Day

Toys "R" Us, Inc., v. Abir
(p. 1052) Mai Hoang

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
(p. 1076)

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
(visit: findlaw.com)

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

Background Information

 

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
(p. 1048)

Chaneng Joe

 

Day/Date

Subject Matter

Class Coverage

Readings

Other

Assigned Cases Due in class

for Discussion

22. Apr. 16

Genuineness of
Assent

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.

Text Reading Assignments

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.

Note Taking/Study Groups

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.

Examinations

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:

Source

Percentage of exam questions (approx.)

Texts

55%

In-Class Lectures, Notes, Printouts, Handouts, on-line articles, cases, statutes

35%

Other (e.g. films, court visits, guest speakers, mediations, in class student briefs)

10%

❒ 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/Class Participation

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:

Applicable Law

Facts of the Case

Conclusion

 

EXAMPLE:

Applicable Law

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.

Facts of the Case

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?

Conclusion

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.

Grading

Graded Exercise

# of Points

Midterm Exam # 1

100

Midterm Exam # 2

100

Three Mediations

225

Contract Creation

100

Legal Field Trip

50

Class Participation

100

Final Exam

200

total

875

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.

Professor's Web Site/Course Calendar/Website Materials

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.

Case of the Day

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.

Legal Field Trip (paper due in class 2/21)

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.

Miscellaneous:

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 Awards

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.

The following are 2006 candidates:

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.