BUAD 403
THE LEGAL ENVIRONMENT OF BUSINESS
Spring Semester, 2006
Tuesday & Thursday 4:00 – 5:50pm
15025D
SLH 200
Professor Henry Cheeseman
Office: HOH 701A
Telephone: (213) 740-6536
henrycheeseman@yahoo.com
Office Hour: TuTh.: 1:00-1:45pm
BUAD 403 THE LEGAL ENVIRONMENT OF BUSINESS
BUAD 403 “The Legal Environment of Business” is an elective course of the Marshall
School of Business. The course covers the legal topics that a business person is likely to
encounter in a business career.
Required Text:
Business Law – The Legal, Ethical, and International Environment (Prentice Hall, 5th
Edition, 2004) by Henry Cheeseman.
Other materials may also be handed out periodically in class.
1
Guaranteeing a Space in the Class:
Registration in a class does not by itself guarantee a space in that class. An instructor
may replace any student who, without prior consent, does not attend these class sessions:
a)
b)
the first two class sessions, or
the first class session of the semester for once-a-week classes.
If an instructor replaces a student who does not attend the proper class session(s), it is the
student’s responsibility to withdraw officially from the course through the Registration
Department.
Faculty Assistants:
There are two Faculty Assistants (FAs) for this course who can both assist students with
questions concerning the materials presented in class. In addition to Professor Cheeseman, they
will be holding regular office hours, which students may find listed on the door of Professor
Cheeseman’s office. The FAs are: Vivi Wang and Tiffany Lee.
2
Learning Objectives:
The learning objectives for the course are the following:






























Learn the history of American law and the sources of law in the United States.
Compare the state and federal court systems and learn the jurisdiction of courts.
Study the trial and appellate process.
Learn alternative dispute resolution including arbitration.
Study how the U.S. Constitution affects business.
Study how the Commerce Clause allows the government to regulate business.
Study how the Bill of Rights and amendments to the Constitution affects business.
Study the law of negligence.
Study special business torts.
Learn the doctrine of strict liability and how product liability law applies to business.
Learn about trade secrets and the protection of intellectual property.
Study patent law and the misappropriation of patents.
Study copyright law and the misappropriation of copyrights.
Study trademark law and the misappropriation of trademarks.
Study domain names and the misappropriation of domain names.
Study information technology and Internet law.
Study business and white collar crimes.
Study corporate criminal liability.
Learn sources of international law.
Learn about the World Trade Organization (WTO) and economic organizations.
Learn how contracts are formed and enforced.
Study the elements of contracts, including agreement, consideration, and lawfulness.
Learn what contracts must be in writing to be enforceable.
Study how e-commerce contracts are formed and enforced.
Learn the remedies for breach of contracts.
Learn about employment contracts.
Study federal worker protection laws.
Study federal laws protecting workers against employment discrimination.
Learn the law of affirmative action.
Learn critical legal thinking.
3
Examinations:
There will be two examinations:
Midterm Examination
March 7 (Tuesday)
Final Examination
April 27 (Thursday)
Midterm and Final Examination:
There will be two equally-weighted examinations for the course. The object of these
examinations is to test your knowledge of the legal principles discussed in the textbook,
handouts, and in class. The materials discussed in class and the materials from the textbook and
handouts are all subject to be tested on examinations.
The midterm and final examinations are non-cumulative.
All examinations will consist of objective multiple-choice questions.
Availability of Practice Examinations:
Prior to each examination, tests from prior semesters (with answers) will be made
available to be used as practice examinations. These tests will be made available on Blackboard.
It is each student’s responsibility to obtain practice examinations.
Attendance
The professor will take attendance periodically throughout the semester. Students in
attendance on those days will receive 1 extra point each time attendance is taken.
Grading:
Grades will be assigned for the course based on students’ examination scores and Web
site assignment. The breakdown of the total points to be assigned for the course is as follows:
Midterm Examination
Final Examination
Attendance
(approximately)
Total points
(approximately)
4
50 points
50 points
6 points
106 points
Estimated Curve:
The class will be graded on a curve. The highest average grade permitted for this course
is a 3.15.
Procedure for Challenging Questions on the Exams
After each exam is given, the Professor will post the answers to the exam the day after
the exam is given. The answers will contain notes as to why an answer was marked correct and
other answers were not correct. Students have 24 hours to send the Professor e-mails
challenging any question on the exam. The Professor will consider these challenges prior to
grading the examination. This way, any questions that have been misleading can be thrown out
before the examination is graded. This is a strict liability provision: No grade challenges will be
considered after the 24-hour period for submission of grade challenges has expired.
Extra-Credit Assignments
The grade in the course will be determined by your performance on the two examinations
and the attendance points. In fairness to all other students, there will be no extra-credit
assignments. Requests for extra-credit to make up for a poor performance on an examination
will not be granted.
Class Participation:
The course is taught using text materials and actual legal cases. These cases will be
discussed in class to show how courts apply the law to actual business disputes. Class discussion
is welcomed and encouraged.
Administration and Policies:
Requests for incomplete grades, action for academic dishonesty, and other administrative
actions will be handled according to the policies established by the University of Southern
California and the Marshall School of Business.
Several policies on academic dishonesty, the assignment of incomplete grades, and such
are attached to this syllabus. Students are responsible for knowing all current policies of the
University and Marshall School of Business.
5
ASSIGNMENTS
The following assignment syllabus is only an estimate as to which chapters will be
presented during each week of the semester. It is possible that additional chapters will be
covered and that some chapters may be postponed until later dates. Since each exam is not
cumulative and covers materials presented during the weeks prior to the exam, it is each
student’s responsibility to prepare for the correct chapters. To avoid confusion, chapters to be
tested on will be announced in class the week before each exam and posted on Professor
Cheeseman’s office door. Make-up exams will not be given for students who study for the wrong
chapters.
Date
Subject
Assignment
Week 1
Jan. 10, Jan. 12

Legal , Business and E-Commerce Environment
Chapter 1
Week 2
Jan. 17, Jan. 19

Judicial and Alternative Dispute Resolution
Chapter 2
Week 3
Jan. 24, Jan. 26

Constitutional Authority to Regulate Business
Chapter 3
Week 4
Jan. 31, Feb. 2

Intentional Torts and Negligence
Chapter 4
Week 5
Feb. 7, Feb.9

Product and Strict Liability
Chapter 5
Week 6
Feb. 14, Feb.16

Intellectual Property and Information Technology
Chapter 17
Week 7
Feb. 21, Feb. 23

Business and Online Crimes
Chapter 6
6
Week 8
Feb. 28, Mar.2


Employment and Worker Protection Law
Equal Opportunity in Employment
Week 9
Mar.7, Mar. 9


Examination (March 7, Tuesday)
No Class (March 9, Thursday)
Week 10
Mar.14, Mar. 16

Spring Break (No Class )
Week 11
Mar. 21, Mar. 23


Nature of Traditional and E-Commerce Contracts
Agreement
Chapter 9
Chapter 10
Week 12
Mar. 28, Mar.30


Consideration
Capacity and Legality
Chapter 11
Chapter 12
Week 13
Apr. 4, Apr.6


Genuineness of Assent
Writing and E-Commerce Signature Law
Chapter 13
Chapter 14
Week 14
Apr. 11, Apr. 13


Third Party Rights and Discharge
Remedies for Beach of Traditional and Online
Contracts
Chapter 15
Chapter 16
Week 15
Apr.18, Apr. 20

International and Comparative Law
Chapter 8
Week 16
Apr.25, Apr.27


No Class (April. 25, Tuesday)
Examination (April. 27, Thursday)
7
Chapter 40
Chapter 41
EXAMINATION POLICY
1.
All exams are closed book, closed notes.
2.
It is your responsibility to check your exam to ensure that no pages are omitted. The
cover sheet to each exam will explain how many pages there are to the exam, how many
questions are included in the exam, and how many points are assigned to each question.
If your examination is missing a page, ask the professor or FAs for a new exam.
Requests for regrades because pages are claimed to have been missing from an
examination (e.g., the last page) will not be honored.
3.
You may be asked to change seats during an exam. This does not necessarily mean that
you are suspected of cheating.
4.
You may be asked to show proper identification before, during, or after an exam. You
are required to bring a proper University picture ID to each exam.
5.
If you have questions during an exam, raise your hand and ask the instructor or one of the
FAs your question. No discussion with other class members will be allowed.
6.
No hats or sunglasses may be worn during an exam. No beeper or cellular phones may
be used during the exam.
7.
You are required to follow all instructions given on the cover sheet of each exam. Failure
to do so may result in your not receiving credit for correct answers.
8.
No partial credit will be awarded for objective questions.
9.
The exams will be posted on Blackboard and handed back within two class periods
following the examination.
10.
If you have taken an exam, but do not receive a grade for the exam, it is your
responsibility to inform the professor or FAs of this problem within two class periods
after grades are distributed and posted. Any student not following this procedure will
receive a grade of 0 for the exam.
11.
Requests for grade changes for such reasons as “I’m only 2 points from a B” or “I need a
few more points to get the grade I need to get into law school” will not be considered.
12.
If you change your answer on the scantron sheet, it is your responsibility to properly
erase any other answers you had previously selected. Scantron sheets that are misgraded
because of poor erasure marks will not be regraded.
8
MISSED EXAM POLICY
1.
There will be no make-up exams for the final examination.
2.
A missed midterm exam will receive a grade of 0 unless the student demonstrates the
following: (1) the student gave notice to the professor or FAs prior to the exam that he or
she will be missing the exam (unless excused by a justifiable reason), and (2) a legitimate
and verified excuse is presented to the professor or FAs (e.g., doctor’s note) within one
week after the exam was administered.
3.
Students without a written, acceptable, verified excuse for missing either of the midterm
exams, or those who do not give prior notice even with an otherwise valid excuse will be
given a grade of 0 for the missed exam.
4.
Students with a written, acceptable, verified excuse for missing the midterm exam who
have given proper prior notice of the excuse may choose to either (1) take a make-up
essay examination, or (2) receive a surrogate grade for the missed midterm examination
equal to 85 percent of their final exam score (adjusted for the curve and the number of
points for the exam).
This surrogate grade will be calculated as follows: The final exam score will be
converted to an equivalent score for the missed midterm exam (if the student receives a
“B” on the final exam, we will use the equivalent number in the “B” range on the missed
midterm exam); this equivalent score will be multiplied by .85 to determine the surrogate
grade.
For example, assume a midterm exam is missed. The student takes the final exam and
receives a 228, which is a middle “B”. A middle “B” on the midterm exam was a 235.
The student’s surrogate grade on the midterm exam will be 235 x .85 = 200.
5.
Students who miss both midterm exams will automatically receive a grade of “F” for the
course if they have not withdrawn from the course.
6.
You are responsible for checking your final examination schedule to determine when
your other final examinations will be held. Students may not take the final examination
prior to the schedule time; therefore, make your airline reservations accordingly.
9
CHEATING POLICY
1.
Cheating refers to the use of unauthorized materials, communication with fellow students
during an exam, attempting to benefit from the work of another student, and similar
behavior that defeats the intent of the exam or other assignment.
2.
Any cheating on any part of an exam will result in a grade of 0 for that exam.
3.
Serious cases of cheating or repeated instances of cheating may be subject to more severe
penalties up to and including suspension from the Marshall School of Business or
suspension from the University.
4.
Any cheating may be appealed if you feel that the facts of the alleged violation were in
error or if you feel that the penalties were excessive, or for other reasons. The steps in
this process are as follows:
(a)
The student should first discuss the matter with the professor.
(b)
If such a discussion does not resolve the conflict, the student may appeal to the
department chairperson. The department chairperson may review the matter
personally or may refer it to an ad hoc or standing committee of the department
for review.
(c)
Either the student or the professor may appeal the department’s decision to the
Student Behavior Appeals Panel of the University. The ultimate decision of this
body is final and binding on all parties.
STATEMENT CONCERNING ACADEMIC DISHONESTY
“The use of unauthorized materials, communication with fellow students during an
examination, attempting to benefit from the work of another student, and similar behavior that
defeats the intent of an examination, or other class work is unacceptable to the University. It is
often difficult to distinguish between a culpable act and inadvertent behavior resulting from the
nervous tensions accompanying examinations. Where clear violation has occurred, however, the
instructor may disqualify the student’s work as unacceptable and assign a failing mark on the
paper.”
10
INCOMPLETE POLICY
1.
Do not ask for a grade of incomplete (IN) for the course merely because you are doing
poorly in the class. The University and the Marshall School of Business have established
clear-cut and highly restrictive limitations on when the grade of incomplete may be
granted, and what contractual obligations of the parties may entail.
2.
If you feel that you have a valid reason to request an incomplete, you must first establish
the legitimacy of your claim with the assistant dean for academic affairs in Bridge Hall.
PERSONAL LEGAL PROBLEMS POLICY
1.
The goal of this course is to study major principles and issues of law affecting business
and to discuss cases previously decided by the judicial system.
2.
The class textbook, handout materials, and class discussions do not constitute legal
advice regarding any personal legal problem that you may have. If you have a personal
legal problem, you should contact a licensed attorney for a personal consultation.
3.
It is a conflict of interest for a professor or FA to give personal legal advice to a student
in this class. No personal legal questions will be answered by the professor or FAs.
11