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 Busi n e ss L aw
Te x t a nd C a se s

Fifteenth Edition

Kenneth W. Clarkson
University of Miami

Roger LeRoy Miller

Institute for University Studies
Arlington, Texas

Australia • Brazil • Mexico • Singapore • United Kingdom • United States

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 Business Law: Text and Cases, © 2021, 2018 Cengage Learning, Inc.
Fifteenth Edition
Kenneth W. Clarkson Unless otherwise noted, all content is © Cengage.
Roger LeRoy Miller ALL RIGHTS RESERVED. No part of this work covered by the copyright
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 Brief Contents

Unit One The Legal Environment of Business 1

Chapter 1 Law and Legal Reasoning 2
Chapter 2 Business and the Constitution 26
Chapter 3 Ethics in Business 44
Chapter 4 Courts and Alternative Dispute Resolution 65
Chapter 5 Court Procedures 86

Unit Two Torts and Crimes 111

Chapter 6 Tort Law 112
Chapter 7 Strict Liability and Product Liability 134
Chapter 8 Intellectual Property Rights 150
Chapter 9 Internet Law, Social Media, and Privacy 170
Chapter 10 Criminal Law and Cyber Crime 187

Unit Three Contracts and E-Contracts 215

Chapter 11 Nature and Terminology 216
Chapter 12 Agreement 231
Chapter 13 Consideration 250
Chapter 14 Capacity and Legality 263
Chapter 15 Mistakes, Fraud, and Voluntary Consent 280
Chapter 16 The Writing Requirement 294
Chapter 17 Third Party Rights 309
Chapter 18 Performance and Discharge 324
Chapter 19 Breach of Contract and Remedies 339

Unit Four Domestic and International Sales and Lease Contracts 359
Chapter 20 Sales and Lease Contracts 360
Chapter 21 Title, Risk, and Insurable Interest 386
Chapter 22 Performance and Breach of Sales and Lease Contracts 403
Chapter 23 Warranties 424
Chapter 24 International and Space Law 437

Unit Five Negotiable Instruments 461

Chapter 25 Negotiable Instruments 462
Chapter 26 Transferability and Holder in Due Course 478
Chapter 27 Liability, Defenses, and Discharge 496
Chapter 28 Banking 514

iii
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iv Br ief Con t ent s

Unit Six Creditors’ Rights and Bankruptcy 537

Chapter 29 Creditors’ Rights and Remedies 538
Chapter 30 Secured Transactions 554
Chapter 31 Bankruptcy Law 577

Unit Seven Agency and Employment 603

Chapter 32 Agency Formation and Duties 604
Chapter 33 Agency Liability and Termination 620
Chapter 34 Employment, Immigration, and Labor Law 639
Chapter 35 Employment Discrimination 662

Unit Eight Business Organizations 687

Chapter 36 Small Businesses and Franchises 688
Chapter 37 All Forms of Partnerships 703
Chapter 38 Limited Liability Companies and Special Business Forms 723
Chapter 39 Corporate Formation and Financing 739
Chapter 40 Corporate Directors, Off icers, and Shareholders 759
Chapter 41 Mergers and Takeovers 778
Chapter 42 Investor Protection, Insider Trading, and Corporate Governance 794

Unit Nine Government Regulation 821

Chapter 43 Administrative Agencies 822
Chapter 44 Consumer Law 839
Chapter 45 Environmental Protection 856
Chapter 46 Antitrust Law 871
Chapter 47 Professional Liability and Accountability 890

Unit Ten Property and Its Protection 915

Chapter 48 Personal Property and Bailments 916
Chapter 49 Real Property and Landlord-Tenant Law 935
Chapter 50 Insurance 957
Chapter 51 Wills and Trusts 973

Appendices
A How to Brief Cases and Analyze Case Problems A–1
B Answers to the Issue Spotters A–4
C Sample Answers for Business Case Problems with Sample Answer A–13

Glossary G–1
Table of Cases TC–1
Index I–1

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 Contents

Unit One Chapter 4

The Legal Environment of Business 1 Courts and Alternative Dispute Resolution 65
The Judiciary’s Role in American Government 65
Chapter 1 Basic Judicial Requirements 66
Case Analysis 4.1 Mala v. Crown Bay Marina, Inc. 68
Law and Legal Reasoning 2 Spotlight on Gucci
Business Activities and the Legal Environment 2 Case 4.2 Gucci America, Inc. v. Wang Huoqing 70
Sources of American Law 3 The State and Federal Court Systems 73
The Common Law Tradition 6 Case 4.3 Johnson v. Oxy USA, Inc. 74
■ Ethics Today: Stare Decisis versus Spider-Man 9 ■ Managerial Strategy: Should You Consent to Have Your
Schools of Legal Thought 11 Business Case Decided by a U.S. Magistrate Judge? 76
Classifications of Law 12 Alternative Dispute Resolution 79
How to Find Primary Sources of Law 13 International Dispute Resolution 82
How to Read and Understand Case Law 16
Chapter 5
Chapter 2 Court Procedures 86
Business and the Constitution 26 Procedural Rules 86
The Constitutional Powers of Government 26 Pretrial Procedures 88
Classic Case 2.1 Heart of Atlanta Motel v. United States 28 ■ Digital Update: Using Social Media for Service of
Business and the Bill of Rights 30 Process 90
■ Digital Update: Does Everyone Have a Constitutional Right Case Analysis 5.1 Espresso Disposition Corp. 1 v. Santana Sales
to Use Social Media? 32 & Marketing Group, Inc. 91
Case 2.2 Animal Legal Defense Fund v. Wasden 33 Case 5.2 Lewis v. Twenty-First Century Bean Processing 93
Spotlight on Beer Labels Case 5.3 Klipsch Group, Inc. v. ePRO E-Commerce Limited 96
Case 2.3 Bad Frog Brewery, Inc. v. New York State The Trial 99
Liquor Authority 35 Posttrial Motions 101
Due Process and Equal Protection 39 The Appeal 102
Privacy Rights 40 Enforcing the Judgment 103
Unit One Task-Based Simulation 107
Unit One Application and Ethics:
Chapter 3
“Arbitration, No Class Actions” 108
Ethics in Business 44
Ethics and the Role of Business 44 Unit Two
■ Digital Update: Should Employees Have a “Right of
Disconnecting”? 47 Torts and Crimes 111
Case 3.1 Al-Dabagh v. Case Western Reserve University 48
Ethical Principles and Philosophies 49 Chapter 6
Sources of Ethical Issues in Business Decisions 52
Tort Law 112
Case 3.2 Watson Laboratories, Inc. v. State of Mississippi 53
Making Ethical Business Decisions 55 The Basis of Tort Law 112
Business Ethics on a Global Level 58 Intentional Torts against Persons 113
■ Ethics Today: Applying the IDDR Framework 59 Case Analysis 6.1 Blake v. Giustibelli 115
Appendix to Chapter 3: The Costco Code of Ethics 64 ■ Digital Update: Revenge Porn and Invasion of Privacy 119

v
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vi Con t ent s

Intentional Torts against Property 122 Chapter 10

Unintentional Torts—Negligence 124 Criminal Law and Cyber Crime 187
Case 6.2 Bogenberger v. Pi Kappa Alpha Corporation, Inc. 125
Defenses to Negligence 128 Civil Law and Criminal Law 187
Spotlight on the Seattle Mariners Criminal Liability 189
Case 6.3 Taylor v. Baseball Club of Seattle, LP 129 ■ Digital Update: Using Twitter to Cause Seizures—
A Crime? 189
Case 10.1 United States v. Crabtree 190
Chapter 7
■ Managerial Strategy: The Criminalization of American
Strict Liability and Product Liability 134 Business 192
Strict Liability 134 Types of Crimes 193
Product Liability 135 Spotlight on White-Collar Crime
Case Analysis 7.1 Schwarck v. Arctic Cat, Inc. 136 Case 10.2 People v. Sisuphan 195
Strict Product Liability 137 Defenses to Criminal Liability 199
Case 7.2 Stange v. Janssen Pharmaceuticals, Inc. 140 Criminal Procedures 201
■ Managerial Strategy: When Is a Warning Legally Cyber Crime 204
Bulletproof? 142 Case Analysis 10.3 United States v. Warner 205
Defenses to Product Liability 143 Unit Two Task-Based Simulation 211
Case 7.3 VeRost v. Mitsubishi Caterpillar Forklift America, Inc. 144 Unit Two Application and Ethics:
One of the Biggest Data Breaches Ever 212
Chapter 8
Intellectual Property Rights 150
Unit Three
Trademarks and Related Property 150 Contracts and E-Contracts 215
Classic Case 8.1 The Coca-Cola Co. v. The Koke
Co. of America 150
Case 8.2 Headspace International, LLC v. Podworks Corp. 152 Chapter 11
■ Global Insight: ALEVE versus FLANAX—Same Pain Killer, Nature and Terminology 216
But in Different Countries 154
Patents 157 An Overview of Contract Law 216
Copyrights 159 Elements of a Contract 217
Case Analysis 8.3 Winstead v. Jackson 161 Case Analysis 11.1 Weston v. Cornell University 218
Trade Secrets 164 Types of Contracts 219
International Protection for Intellectual Property 164 Case 11.2 Boswell v. Panera Bread Co. 220
Quasi Contracts 223
Interpretation of Contracts 225
Chapter 9
Spotlight on Columbia Pictures
Internet Law, Social Media, and Privacy 170 Case 11.3 Wagner v. Columbia Pictures Industries, Inc. 226
Internet Law 170
Spotlight on Internet Porn Chapter 12
Case 9.1 Hasbro, Inc. v. Internet Entertainment
Agreement 231
Group, Ltd. 173
Copyrights in Digital Information 174 Elements of Agreement 231
■ Digital Update: Riot Games, Inc., Protects Its Online Video Classic Case 12.1 Lucy v. Zehmer 232
Game Copyrights 175 Spotlight on Amazon.com
Case 9.2 BMG Rights Management (US), LLC v. Cox Case 12.2 Basis Technology Corp. v. Amazon.com, Inc. 234
Communications, Inc. 176 ■ Digital Update: Can Your E-Mails or Instant Messages
Social Media 178 Create a Valid Contract? 238
Online Defamation 180 Agreement in E-Contracts 240
Other Actions Involving Online Posts 181 Case 12.3 Bailey v. Kentucky Lottery Corp. 242
Case Analysis 9.3 David v. Textor 182 U.S. Laws Affecting E-Contracts 245
Privacy 183 International Treaties Affecting E-Contracts 247

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 C o n te n ts vii

Chapter 13 Chapter 17
Consideration 250 Third Party Rights 309
Elements of Consideration 250 Assignments and Delegations 309
Classic Case 13.1 Hamer v. Sidway 250 Case 17.1 Bass-Fineberg Leasing, Inc. v. Modern Auto Sales, Inc. 312
Case 13.2 Cincinnati Reds, LLC v. Testa 252 Case 17.2 Mirandette v. Nelnet, Inc. 314
Agreements That Lack Consideration 254 Third Party Beneficiaries 316
Settlement of Claims 256 Case Analysis 17.3 Bozzio v. EMI Group, Ltd. 317
Spotlight on Nike
Case 13.3 Already, LLC v. Nike, Inc. 257 Chapter 18
Exceptions to the Consideration Requirement 258 Performance and Discharge 324
Conditions 324
Chapter 14
Discharge by Performance 325
Capacity and Legality 263 Classic Case 18.1 Jacob & Youngs v. Kent 327
Contractual Capacity 263 Case Analysis 18.2 Kohel v. Bergen Auto Enterprises, L.L.C. 328
Case 14.1 PAK Foods Houston, LLC v. Garcia 264 Discharge by Agreement 330
Legality 268 Case 18.3 DWB, LLC v. D&T Pure Trust 332
Case 14.2 Kennedy v. Shave Barber Co. 270 Discharge by Operation of Law 333
Case Analysis 14.3 Holmes v. Multimedia KSDK, Inc. 273 ■ Ethics Today: When Is Impossibility of Performance a
■ Managerial Strategy: Creating Liability Waivers That Are Valid Defense? 334
Not Unconscionable 275
Chapter 19
Chapter 15 Breach of Contract and Remedies 339
Mistakes, Fraud, Damages 339
and Voluntary Consent 280 Case Analysis 19.1 Baird v. Owens Community College 340
Spotlight on Liquidated Damages
Mistakes 280
Case 19.2 Kent State University v. Ford 344
Fraudulent Misrepresentation 282
Case 15.1 McCullough v. Allstate Property and Casualty
Equitable Remedies 345
Case 19.3 Cipriano Square Plaza Corp. v. Munawar 346
Insurance Co. 282
Case Analysis 15.2 Cronkelton v. Guaranteed Construction
Recovery Based on Quasi Contract 349
Services, LLC 285
Waiver of Breach 350
■ Digital Update: “Catfishing” and Fraudulent
Contract Provisions Limiting Remedies 351
Unit Three Task-Based Simulation 355
Misrepresentation 287
Unit Three Application and Ethics:
Case 15.3 Fazio v. Cypress/GR Houston I, LP 288
Nondisclosure Agreements 356
Undue Influence 289
Duress 289
Adhesion Contracts and Unconscionability 290
Unit Four
Chapter 16 Domestic and International
The Writing Requirement 294 Sales and Lease Contracts 359
The Statute of Frauds 294
Contracts That Require a Writing 294 Chapter 20
Case Analysis 16.1 Sloop v. Kiker 295
Exceptions to the Writing Requirement 298
Sales and Lease Contracts 360
Sufficiency of the Writing 300 The Uniform Commercial Code 360
Case 16.2 Moore v. Bearkat Energy Partners, LLC 301 The Scope of Articles 2 (Sales) and 2A (Leases) 361
The Parol Evidence Rule 302 ■ Digital Update: Taxing Web Purchases 363
Case 16.3 Frewil, LLC v. Price 303 The Formation of Sales and Lease Contracts 365
The Statute of Frauds in the International Context 305 Case 20.1 Toll Processing Services, LLC v. Kastalon, Inc. 365

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viii Con t ent s

Case 20.2 C. Mahendra (N.Y.), LLC v. National Gold & Diamond Doing Business Internationally 442
Center, Inc. 369 ■ Ethics Today: Is It Ethical (and Legal) to Brew “Imported”
Classic Case 20.3 Jones v. Star Credit Corp. 375 Beer Brands Domestically? 443
Contracts for the International Sale of Goods 376 Regulation of Specific Business Activities 445
Appendix to Chapter 20 An Example of a Contract for the Case 24.2 Changzhou Trina Solar Energy Co., Ltd. v. United
International Sale of Coffee 382 States International Trade Commission 446
International Dispute Resolution 448
Chapter 21 U.S. Laws in a Global Context 449
Title, Risk, and Insurable Interest 386 Spotlight on International Torts
Case 24.3 Daimler AG v. Bauman 449
Identification 386 Space Law 451
Case Analysis 21.1 BMW Group, LLC v. Castle Oil Corp. 387 Unit Four Task-Based Simulation 456
When Title Passes 388 Unit Four Application and Ethics:
■ Managerial Strategy: Commercial Use of Drones 389 Success in Global Commerce 457
Case 21.2 Louisiana Department of Revenue v. Apeck
Construction, Inc. 389
Spotlight on Andy Warhol Case 21.3 Lindholm v. Brant 393 Unit Five
Risk of Loss 395 Negotiable Instruments 461
Insurable Interest 399

Chapter 22 Chapter 25
Performance and Breach Negotiable Instruments 462
of Sales and Lease Contracts 403 Types of Negotiable Instruments 462
Case 25.1 Silicon Valley Bank v. Miracle Faith
Obligations of the Seller or Lessor 403
World Outreach, Inc. 465
Case 22.1 All the Way Towing, LLC v. Bucks County
International, Inc. 405
Requirements for Negotiability 466
Case Analysis 25.2 OneWest Bank, FSB v. Nunez 468
Obligations of the Buyer or Lessee 409
Remedies of the Seller or Lessor 411 Factors That Do Not Affect Negotiability 472
Case 25.3 Charles R. Tips Family Trust v.
Remedies of the Buyer or Lessee 413
PB Commercial, LLC 473
Case Analysis 22.2 Genesis Health Clubs, Inc. v. LED Solar &
Light Co. 416
Spotlight on Baseball Cards Chapter 26
Case 22.3 Fitl v. Strek 418 Transferability and
Additional Provisions Affecting Remedies 419 Holder in Due Course 478
Dealing with International Contracts 420
Negotiation 478
Chapter 23 Indorsements 479
Case 26.1 In re Bass 479
Warranties 424 Case Analysis 26.2 AS Peleus, LLC v. Success, Inc. 481
Warranties of Title 424 Holder in Due Course (HDC) 486
Express Warranties 425 Case 26.3 Jarrell v. Conerly 488
Implied Warranties 427 Holder through an HDC 491
Classic Case 23.1 Webster v. Blue Ship Tea Room, Inc. 429
Overlapping Warranties 431 Chapter 27
Warranty Disclaimers and Limitations on Liability 432 Liability, Defenses, and Discharge 496
Case Analysis 23.2 Roberts v. Lanigan Auto Sales 432
Signature Liability 496
Chapter 24 Case Analysis 27.1 Envision Printing, LLC v. Evans 499
Warranty Liability 502
International and Space Law 437 Defenses and Limitations 505
International Law 437 Case 27.2 Mills v. Chauvin 507
Case 24.1 Rubin v. Islamic Republic of Iran 441 Discharge 510

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 C o n te n t s ix

Chapter 28 Chapter 31
Banking 514 Bankruptcy Law 577
Checks 514 The Bankruptcy Code 577
The Bank-Customer Relationship 516 Liquidation Proceedings 578
The Bank’s Duty to Honor Checks 517 Case 31.1 In re Anderson 584
Case Analysis 28.1 Legg v. West Bank 517 ■ Ethics Today: Should There Be More Relief for Student
Case 28.2 Horton v. JPMorgan Chase Bank, N.A. 521 Loan Defaults? 587
The Bank’s Duty to Accept Deposits 523 Case 31.2 In re Cummings 588
Case 28.3 Shahin v. Delaware Federal Credit Union 525 Reorganizations 589
Electronic Fund Transfers 528 Bankruptcy Relief under Chapter 12 and Chapter 13 591
Online Banking and E-Money 529 Case 31.3 In re Chamberlain 593
■ Digital Update: Electronic Payment Systems Are Reducing Unit Six Task-Based Simulation 599
the Use of Checks 530 Unit Six Application and Ethics:
Unit Five Task-Based Simulation 533 Federal Student Loans—Default and Discharge 600
Unit Five Application and Ethics:
Virtual Currency—Is It Safe? 534
Unit Seven
Agency and Employment 603
Unit Six
Creditors’ Rights and Bankruptcy 537 Chapter 32
Agency Formation and Duties 604
Agency Relationships 604
Chapter 29
■ Ethics Today: Is It Fair to Classify Uber and Lyft Drivers as
Creditors’ Rights and Remedies 538 Independent Contractors? 606
Laws Assisting Creditors 538 Formation of the Agency Relationship 607
Case Analysis 29.1 Picerne Construction Corp. v. Villas 539 Case 32.1 Riedel v. Akron General Health System 608
Mortgages 542 Duties of Agents and Principals 610
■ Ethics Today: Creditors’ Rights When Debtors Move to Spotlight on Taser International
Another State 543 Case 32.2 Taser International, Inc. v. Ward 611
Case 29.2 Banc of California, N.A. v. Madhok 545 Case Analysis 32.3 NRT New England, LLC v. Jones 614
Suretyship and Guaranty 547 Rights and Remedies of Agents and Principals 616
Case 29.3 HSBC Realty Credit Corp. (USA) v. O’Neill 548
Protection for Debtors 550 Chapter 33
Agency Liability and Termination 620
Chapter 30 Scope of Agent’s Authority 620
Spotlight on Apparent Authority of Managers
Secured Transactions 554 Case 33.1 Lundberg v. Church Farm, Inc. 622
The Terminology of Secured Transactions 554 Case 33.2 Dearborn West Village Condominium
Creation of a Security Interest 554 Association v. Makki 623
Case 30.1 Royal Jewelers, Inc. v. Light 555 Liability for Contracts 625
■ Digital Update: Secured Transactions—Escrow Services Liability for Torts and Crimes 627
Online 557 ■ Global Insight: Islamic Law and Respondeat Superior 629
Perfection of a Security Interest 557 Case Analysis 33.3 M.J. v. Wisan 631
The Scope of a Security Interest 562 Termination of an Agency 633
Case 30.2 In re Tusa–Expo Holdings, Inc. 563
Priorities 566 Chapter 34
Rights and Duties of Debtors and Creditors 569 Employment, Immigration, and Labor Law 639
Default 569
Case 30.3 SunTrust Bank v. Monroe 571 Employment at Will 639
Case 34.1 Caterpillar, Inc. v. Sudlow 640

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x C on t ent s

Wages, Hours, and Layoffs 642 Chapter 37

■ Ethics Today: Is It Fair to Dock Employees’ Pay for All Forms of Partnerships 703
Bathroom Breaks? 643
Case 34.2 Encino Motorcars, LLC v. Navarro 643 Basic Partnership Concepts 703
Family and Medical Leave 645 Case 37.1 Harun v. Rashid 704
Health, Safety, and Income Security 646 Formation and Operation 706
Employee Privacy Rights 649 Classic Case 37.2 Meinhard v. Salmon 708
Immigration Law 650 Dissociation and Termination 711
Labor Unions 652 Case Analysis 37.3 Shamburger v. Shamburger 714
■ Managerial Strategy: Union Organizing Using a Company’s Limited Liability Partnerships 715
E-Mail System 655 Limited Partnerships 716
Case Analysis 34.3 Contemporary Cars, Inc. v. National ■ Ethics Today: Should an Innocent General Partner Be Jointly
Labor Relations Board 655 Liable for Fraud? 719

Chapter 35 Chapter 38
Employment Discrimination 662 Limited Liability Companies
Title VII of the Civil Rights Act 662
and Special Business Forms 723
■ Digital Update: Hiring Discrimination Based on Social The Limited Liability Company 723
Media Posts 666 Case 38.1 Hodge v. Strong Built International, LLC 725
Case Analysis 35.1 Bauer v. Lynch 667 LLC Management and Operation 727
Case 35.2 Young v. United Parcel Service, Inc. 668 ■ Managerial Strategy: Can a Person Who Is Not a Member
Case 35.3 Franchina v. City of Providence 672 of a Protected Class Sue for Discrimination? 728
Discrimination Based on Age 673 Case 38.2 Schaefer v. Orth 729
Discrimination Based on Disability 675 Dissociation and Dissolution of an LLC 730
Discrimination Based on Military Status 677 Case Analysis 38.3 Reese v. Newman 731
Defenses to Employment Discrimination 678 Special Business Forms 733
Affirmative Action 679
Unit Seven Task-Based Simulation 683
Chapter 39
Unit Seven Application and Ethics:
Health Insurance and Small Business 684 Corporate Formation and Financing 739
The Nature and Classification of Corporations 739
■ Digital Update: Programs That Predict Employee
Unit Eight
Misconduct 741
Business Organizations 687 Case 39.1 Drake Manufacturing Co. v. Polyflow, Inc. 741
Case Analysis 39.2 Pantano v. Newark Museum 743
Case 39.3 Greenfield v. Mandalay Shores
Chapter 36
Community Association 746
Small Businesses and Franchises 688 Corporate Formation and Powers 748
General Considerations for Small Businesses 688 ■ Global Insight: Does Cloud Computing Have a
Sole Proprietorships 689 Nationality? 751
Case Analysis 36.1 A. Gadley Enterprises, Inc. v. Department of Piercing the Corporate Veil 751
Labor and Industry Office of Unemployment Compensation Corporate Financing 753
Tax Services 690
■ Digital Update: A Sole Proprietorship, Facebook Poker, and Chapter 40
Bankruptcy 692 Corporate Directors, Off icers, and
Franchises 693
Shareholders 759
Franchise Termination 696
Case 36.2 S&P Brake Supply, Inc. v. Daimler Trucks North Role of Directors and Officers 759
America, LLC 696 Duties and Liabilities of Directors and Off icers 762
Spotlight on Holiday Inns Case 40.1 Oliveira v. Sugarman 764
Case 36.3 Holiday Inn Franchising, Inc. v. Hotel Classic Case 40.2 Guth v. Loft, Inc. 765
Associates, Inc. 698 The Role of Shareholders 767

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 C o n te n t s xi

Rights of Shareholders 770 Chapter 44

Case 40.3 Hammoud v. Advent Home Medical, Inc. 772 Consumer Law 839
Duties and Liabilities of Shareholders 774
Advertising, Marketing, and Sales 839
Case 44.1 POM Wonderful, LLC v. Federal
Chapter 41
Trade Commission 840
Mergers and Takeovers 778 ■ Digital Update: Regulating “Native” Ads on the
Merger, Consolidation, and Share Exchange 778 Internet 843
Case Analysis 41.1 In re Trulia, Inc. Stockholder Case 44.2 Haywood v. Massage Envy Franchising, LLC 844
Litigation 780 Labeling and Packaging Laws 846
Purchase of Assets 782 Protection of Health and Safety 847
Case 41.2 Heavenly Hana, LLC v. Hotel Union & Hotel Credit Protection 848
Industry of Hawaii Pension Plan 784 Case Analysis 44.3 Santangelo v. Comcast Corp. 850
Purchase of Stock 785
Corporate Termination 787 Chapter 45
Major Business Forms Compared 788 Environmental Protection 856
Chapter 42 Common Law Actions 856
Federal, State, and Local Regulations 857
Investor Protection, Insider Trading, and
Case Analysis 45.1 Friends of Animals v. Clay 857
Corporate Governance 794 ■ Global Insight: Can a River Be a Legal Person? 860
The Securities Act of 1933 794 Air Pollution 860
■ Managerial Strategy: The SEC’s Pay-Ratio Disclosure Case 45.2 United States v. O’Malley 862
Rule 796 Water Pollution 864
■ Digital Update: Investment Crowdfunding—Regulations Toxic Chemicals and Hazardous Waste 866
and Restrictions 798
Case 42.1 Omnicare, Inc. v. Laborers District Council Chapter 46
Construction Industry Pension Fund 800
Antitrust Law 871
The Securities Exchange Act of 1934 802
Classic Case 42.2 SEC v. Texas Gulf Sulphur Co. 803 The Sherman Antitrust Act 871
Case 42.3 Singer v. Reali 807 Section 1 of the Sherman Act 872
State Securities Laws 809 Section 2 of the Sherman Act 875
Corporate Governance 810 Case Analysis 46.1 McWane, Inc. v. Federal
Unit Eight Task-Based Simulation 816 Trade Commission 877
Unit Eight Application and Ethics: The Clayton Act 878
Business Start-Ups Online 817 Case 46.2 Candelore v. Tinder, Inc. 879
Enforcement and Exemptions 882
Case 46.3 TransWeb, LLC v. 3M Innovative Properties Co. 883
Unit Nine U.S. Antitrust Laws in the Global Context 884
Government Regulation 821 ■ Digital Update: The European Union Issues Record Fines
Against Google in Antitrust Case 886

Chapter 43
Administrative Agencies 822 Chapter 47
Professional Liability and
The Practical Significance of Administrative Law 822
Accountability 890
Agency Creation and Powers 823
Case 43.1 Simmons v. Smith 826 Potential Liability to Clients 890
The Administrative Process 828 ■ Ethics Today: What Are an Attorney’s Responsibilities for
Case 43.2 Craker v. Drug Enforcement Administration 831 Protecting Data Stored in the Cloud? 891
Judicial Deference to Agency Decisions 832 Potential Liability to Third Parties 894
Case Analysis 43.3 Olivares v. Transportation Case Analysis 47.1 Perez v. Stern 896
Security Administration 833 The Sarbanes-Oxley Act 897
Public Accountability 835 Case 47.2 Laccetti v. Securities and Exchange Commission 898

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xii Cont en t s

Potential Liability of Accountants under ■ Ethics Today: Should Eminent Domain Be Used to Promote
Securities Laws 901 Private Development? 949
Confidentiality and Privilege 904 Zoning and Government Regulations 950
Case 47.3 Commonwealth of Pennsylvania v. Landlord-Tenant Relationships 952
Schultz 905
Unit Nine Task-Based Simulation 910 Chapter 50
Unit Nine Application and Ethics: Insurance 957
Climate Change 911
Insurance Terminology and Concepts 957
Case 50.1 Breeden v. Buchanan 959
Unit Ten The Insurance Contract 960
Property and Its Protection 915 Case 50.2 Cannon v. Farm Bureau Insurance Company 964
Types of Insurance 966
Chapter 48
Chapter 51
Personal Property and Bailments 916 Wills and Trusts 973
Personal Property versus Real Property 916
Wills 973
Acquiring Ownership of Personal Property 917
Case 51.1 In re Navarra 976
■ Digital Update: The Exploding World of Digital
Case Analysis 51.2 Peterson v. Harrell 978
Property 917
■ Digital Update: Social Media Estate Planning 981
Classic Case 48.1 In re Estate of Piper 919
Intestacy Laws 981
Mislaid, Lost, and Abandoned Property 920
Trusts 984
Case 48.2 State of Washington v. Preston 923
Case 51.3 Dowdy v. Dowdy 985
Bailments 924
Other Estate-Planning Issues 989
Ordinary Bailments 925
Unit Ten Task-Based Simulation 994
Case Analysis 48.3 Zissu v. IH2 Property Illinois, L.P. 928
Unit Ten Application and Ethics:
Special Types of Bailments 930
Business Planning for Divorce 995

Chapter 49
Appendices
Real Property and Landlord-Tenant Law 935 A How to Brief Cases and Analyze Case Problems A–1
The Nature of Real Property 935 B Answers to the Issue Spotters A–4
Ownership and Other Interests in Real Property 937 C Sample Answers for Business Case Problems with
Case 49.1 In the Matter of the Estate of Nelson 938 Sample Answer A–13
Transfer of Ownership 942
Spotlight on Sales of Haunted Houses
Case 49.2 Stambovsky v. Ackley 943 Glossary G–1
Case Analysis 49.3 Montgomery County v. Bhatt 946 Table of Cases TC–1
Limitations on the Rights of Property Owners 948 Index I–1

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 Concept Summaries

1.1 Sources of American Law 5 25.1 Requirements for Negotiability 474

1.2 The Common Law Tradition 11 26.1 Types of Indorsements and Their Effect 484
1.3 Schools of Jurisprudential Thought 13 26.2 Requirements for HDC Status 492
4.1 Jurisdiction 72 27.1 Signature Liability 503
4.2 Types of Courts 78 28.1 Basic Rules for Honoring Checks 524
5.1 Pretrial Procedures 98 29.1 Remedies Available to Creditors 546
5.2 Trial Procedure 101 30.1 Creating Security Interest 557
5.3 Posttrial Options 103 30.2 Perfecting a Security Interest 563
6.1 Intentional Torts against Persons 121 30.3 Remedies of the Secured Party on the
6.2 Intentional Torts against Property 124 Debtor’s Default 573
7.1 Defenses to Product Liability 147 31.1 Forms of Bankruptcy Relief Compared 595
10.1 Types of Crimes 199 32.1 Formation of the Agency Relationship 610
11.1 Types of Contracts 224 33.1 Authority of an Agent to Bind the Principal
and a Third Party 625
12.1 Methods by Which an Offer
Can Be Terminated 237 33.2 Agency Termination by Operation of Law 635
13.1 Consideration 254 35.1 Coverage of Employment Discrimination Laws 678
13.2 Settlement of Claims 259 38.1 Special Business Forms 735
14.1 Contracts by Minors 266 39.1 Classification of Corporations 747
14.2 Contracts by Intoxicated Persons 267 40.1 Roles of Directors and Officers 762
14.3 Contracts by Mentally Incompetent Persons 268 40.2 Duties and Liabilities of Directors and Officers 767
15.1 Factors That May Indicate a Lack of 40.3 Role, Rights, and Liability of Shareholders 775
Voluntary Consent 291 41.1 Merger, Consolidation, and Share Exchange 783
17.1 Assignment and Delegations 316 41.2 Purchases of Assets and Purchases of Stock 785
19.1 Equitable Remedies 350 47.1 Common Law Liability of Accountants and
20.1 Offer, Acceptance, and Consideration under Other Professionals 898
the UCC 372 47.2 Statutory Liability of Accountants and
20.2 The Parol Evidence Rule 375 Other Professionals 904
21.1 Delivery without Movement of the Goods 397 48.1 Acquisition of Personal Property 921
21.2 Risk of Loss When a Sales or Lease Contract 48.2 Mislaid, Lost, and Abandoned Property 921
Is Breached 399 48.3 Rights and Duties of the Bailee and the Bailor 931
22.1 Obligations of the Seller or Lessor 409 51.1 Wills 982
23.1 Warranties of Title and Express Warranties 426 51.2 Trusts 988

xiii
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Exhibits

1–1 Areas of the Law That Can Affect Business 18–1 Conditions of Performance 325
Decision Making 3 18–2 Discharge by Performance 330
1–2 Equitable Maxims 7 18–3 Contract Discharge 335
1–3 Procedural Differences between an Action at Law 19–1 Measure of Damages—Breach of
and an Action in Equity 7 Construction Contracts 342
1–4 National Reporter System—Regional/Federal 15 19–2 Remedies for Breach of Contract 349
1–5 How to Read Citations 17 20–1 The Law Governing Contracts 362
1–6 A Sample Court Case 20 20–2 Major Differences between Contract Law
2–1 Protections Guaranteed by the Bill of Rights 31 and Sales Law 373
2–2 Federal Legislation Relating to Privacy 41 21–1 Void and Voidable Titles 392
3–1 An Analysis of Ethical Approaches to the 21–2 Contract Terms—Definitions 396
Sample Dilemma 57 22–1 The Perfect Tender Rule and Its Exceptions 406
4–1 Exclusive and Concurrent Jurisdiction 70 22–2 Obligations of the Buyer or Lessee 410
4–2 The State and Federal Court Systems 73 22–3 A Letter-of-Credit Transaction 421
4–3 Geographic Boundaries of the U.S. Courts of Appeals 23–1 Types of Implied Warranties 427
and U.S. District Courts 77 24–1 The Legal Systems of Selected Nations 439
4–4 Basic Differences in the Traditional Forms of ADR 80 24–2 Examples of International Principles and
5–1 Stages in a Typical Lawsuit 87 Doctrines 442
5–2 A Typical Complaint 89 25–1 Basic Types of Negotiable Instruments 463
5–3 Pretrial Motions 91 25–2 A Typical Time Draft 464
8–1 Forms of Intellectual Property 165 25–3 A Typical Promissory Note 466
10–1 Key Differences between Civil Law and 25–4 A Sample Certificate of Deposit 467
Criminal Law 187 26–1 A Blank Indorsement 479
10–2 Civil (Tort) Lawsuit and Criminal Prosecution for the 26–2 A Special Indorsement 481
Same Act 188 26–3 A Qualified Indorsement 482
10–3 Major Procedural Steps in a Criminal Case 203 26–4 “For Deposit Only” and “For ­Collection
11–1 Classifications Based on Contract Formation 219 Only” Indorsements 483
11–2 Enforceable, Voidable, Unenforceable, and 26–5 Trust (Agency) Indorsements 484
Void Contracts 223 26–6 Converting an Order Instrument to a Bearer
11–3 Rules of Contract Interpretation 225 Instrument and Vice Versa 485
12–1 A Click-On Agreement Sample 242 26–7 Taking for Value 487
12–2 The E-SIGN Act and the UETA  246 27–1 Time for Proper Presentment 498
13–1 Consideration in Bilateral and 27–2 Transfer Warranty Liability for Transferors Who
Unilateral Contracts 252 Receive Consideration 504
13–2 Examples of Agreements That Lack 27–3 Defenses against Liability on Negotiable
Consideration 256 Instruments 505
14–1 Unconscionability 272 28–1 A Cashier’s Check 515
14–2 Contract Legality 276 28–2 An American Express Traveler’s Check 516
15–1 Mistakes of Fact 281 28–3 The Check-Collection Process 527
16–1 The One-Year Rule 297 29–1 Methods of Avoiding Foreclosure 544
16–2 Collateral Promises 298 29–2 Suretyship and Guaranty Parties 547
16–3 Business Contracts and the Writing Requirement 300 30–1 Secured Transactions—Concept and Terminology 555
16–4 The Parol Evidence Rule 305 30–2 A Sample Uniform Financing Statement Form 558
17–1 Assignment Relationships 310 30–3 Selected Types of Collateral and Methods
17–2 Delegation Relationships 313 of Perfection 562
17–3 Third Party Beneficiaries 320 30–4 Priority of Claims to a Debtor’s Collateral 568

xiv
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 E x h i b i ts xv

31–1 Collection and Distribution of Property in Most 42–3 Some Key Provisions of the Sarbanes-Oxley Act Relating
Voluntary Bankruptcies 586 to Corporate Accountability 812
32–1 Duties of the Agent 611 43–1 Executive Departments and Important
32–2 Duties of the Principal 613 Subagencies 824
33–1 A Sample General Power of Attorney 621 43–2 Selected Independent Regulatory Agencies 825
33–2 Termination by Act of the Parties 633 43–3 The Formal Administrative Agency
34–1 Good Faith versus Bad Faith in Adjudication ­Process 830
Collective Bargaining 657 44–1 Selected Areas of Consumer Law Regulated
36–1 The FTC’s Franchise Rule Requirements 694 by Statutes 840
37–1 Provisions Commonly Included in a 45–1 Major Federal Environmental Statutes 858
Partnership Agreement 706 45–2 Environmental Impact Statements 861
37–2 A Comparison of General Partnerships and 45–3 Pollution-Control Equipment Standards under the
Limited Partnerships 717 Clean Air Act and the Clean Water Act 865
38–1 Management of an LLC 727 46–1 Required Elements of a Sherman Act Violation 872
38–2 Provisions Commonly Included in an LLC 46–2 Exemptions to Antitrust Enforcement 885
Operating Agreement 729 47–1 Three Basic Rules of an Accountant’s Liability to
39–1 How Do Stocks and Bonds Differ? 753 Third Parties 896
39–2 Common and Preferred Stocks 754 47–2 Key Provisions of the Sarbanes-Oxley Act Relating to
40–1 Directors’ Management Responsibilities 760 Public Accounting Firms 900
40–2 Results of Cumulative Voting 770 48–1 Degree of Care Required of a Bailee 927
41–1 Merger 778 49–1 Interests in Real Property 942
41–2 Consolidation 779 50–1 Selected Insurance Classifications 958
41–3 The Terminology of Takeover Defenses 786 50–2 Insurance Contract Provisions and Clauses 961
41–4 Major Forms of Business Compared 789 50–3 Typical Fire Insurance Policies 967
42–1 Exempt Transactions under the 1933 51–1 Excerpts from Michael Jackson’s Will 974
Securities Act 797 51–2 Per Stirpes Distribution 983
42–2 Comparison of Coverage, Application, and Liability 51–3 Per Capita Distribution 984
under SEC Rule 10b-5 and Section 16(b) 805 51–4 A Revocable Living Trust Arrangement 985

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 Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
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 Preface

The study of business law and the legal environment of completely new framework for helping students (and
business has universal applicability. A student entering businesspersons) make ethical decisions. We present
any field of business must have at least a passing under- The IDDR Approach in Chapter 3 (Ethics in Busi-
standing of business law in order to function in the real ness). This s­ystematic approach provides students with a
world. Business Law, Fifteenth Edition, provides the clear step-by-step process to analyze the legal and ethical
information that students need in an interesting and implications of decisions that arise in everyday business
contemporary way. operations.
Additionally, students preparing for a career in The new IDDR Approach uses four logical steps:
accounting, government and political science, econom- • Step 1: Inquiry
ics, and even medicine can use much of the informa- • Step 2: Discussion
tion they learn in a business law and legal environment • Step 3: Decision
course. In fact, every individual throughout his or her • Step 4: Review
lifetime can benefit from knowledge of contracts, real Students can remember the first letter of each step easily
property law, landlord-tenant relationships, and other by using the phrase: “I Desire to Do Right.”
business law topics. Consequently, we have fashioned
this text as a useful “tool for living” for all of your stu- Completely Revised Chapter 3 on Ethics in
dents (including those taking the CPA exam). Business A newly revised Chapter 3 details each IDDR
The Fifteenth Edition of this best-selling text is more step’s goals and then provides a Sample Scenario to help
modern, exciting, and visually appealing than ever before. students apply this new approach to ethical decision mak-
We have added many new features, cases, concept sum- ing. In addition to introducing the IDDR Approach, we
maries, and exhibits. The text also contains h ­ undreds of have made Chapter 3 more current and more practical,
highlighted and numbered Cases in Point and E ­ xamples, and reduced the amount of theoretical ethical principles
as well as a number of new case problems and unit- it presents. The chapter now focuses on real-life applica-
ending Task-Based Simulations. Special pedagogical tion of ethical principles.
elements within the text focus on legal, ethical, global,
and corporate issues while addressing core curriculum New A Question of Ethics throughout Text
requirements. After Chapter 3, to reinforce the application of the
IDDR Approach, students are asked to use its various
steps when answering each chapter’s A Question of Ethics.
To challenge students in analyzing the ethical angles in
Highlights of the Fifteenth Edition today’s business legal environment, each of the A Question
of Ethics problems have been updated throughout the text
Instructors have come to rely on the coverage, accuracy, and are based on a 2017, 2018 or 2019 case.
and applicability of Business Law. To make sure that our
text engages your students, solidifies their understanding
of legal concepts, and provides the best teaching tools A Variety of Exciting Features
available, we offer the following. The Fifteenth Edition of Business Law is filled with
numerous features specifically designed to cover current
The IDDR Approach: legal topics of high interest.
Each feature is related to a topic discussed in the text
A New Emphasis on Ethics and ends with Critical Thinking or Business Questions.
The ability of businesspersons to reason through ethi- Suggested answers to all of the Critical Thinking and
cal issues is now more important than ever. For the Business Questions are included in the Answers Manual
Fifteenth Edition of Business Law, we have created a for this text.

xvii
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xviii P ref ace

1. Ethics Today. These features focus on the ethical Social media have entered the mainstream and become
aspects of a topic discussed in the text to empha- a part of everyday life for many businesspersons. In this
size that ethics is an integral part of a business law special chapter, we give particular emphasis to the legal
course. Examples include the following: issues surrounding the Internet, social media, and privacy.
• Applying the IDDR Framework (Chapter 3) We also recognize this trend throughout the text by incor-
• Is It Ethical (and Legal) to Brew “Imported” Beer porating the Internet and social media as they relate to the
Brands Domestically? (Chapter 24) topics under discussion.
• Should There Be More Relief for Student Loan
Defaults? (Chapter 31)
• Is It Fair to Classify Uber and Lyft Drivers as Coverage of Topics
Independent Contractors? (Chapter 32) on the Revised CPA Exam
2. Global Insight. These features illustrate how other
nations deal with specific legal concepts to give In 2016, the American Institute of CPAs (AICPA) issued
­students a sense of the global legal environment. its final report on “Maintaining the Relevance of the
Subjects include the following: Uniform CPA Exam.” In addition to more focus on criti-
• Aleve versus Flanax—Same Pain Killer, but in cal thinking, authentic applications, and problem solv-
Different Countries (Chapter 8) ing, the content of the exam will change to some extent.
• Islamic Law and Respondeat Superior (Chapter 33) The Fifteenth Edition of Business Law incorporates
• Does Cloud Computing Have a Nationality? information on the new topics on the CPA exam, specifi-
(Chapter 39) cally addressing the following:
• Can a River Be a Legal Person (Chapter 45) • Agency law (worker classification and duties of
3. Digital Update. These features are designed to principals and agents)
examine cutting-edge cyberlaw topics, such as the • Employment law (Affordable Care Act)
following: • Business organizations (corporate governance
• Does Everyone Have a Constitutional Right to issues, including Sarbanes-Oxley compliance
Use Social Media? (Chapter 2) and criminal liability for organizations and
• Should Employees Have a “Right of Disconnecting”? management)
(Chapter 3)
• Revenge Porn and Invasion of Privacy (Chapter 6) In addition, the Fifteenth Edition continues to cover top-
• Riot Games, Inc., Protects Its Online Video ics that are essential to new CPAs who are working with
Game Copyrights (Chapter 9) sophisticated business clients, regardless of whether the
• “Catfishing” and Fraudulent Misrepresentation CPA exam covers these topics.
(Chapter 15) We recognize that today’s business leaders must often
• Hiring Discrimination Based on Social Media think “outside the box” when making business decisions.
Posts (Chapter 35) For this reason, we strongly emphasize business and criti-
4. Managerial Strategy. These features emphasize cal thinking elements throughout the text. We have care-
the management aspects of business law and the fully chosen cases, features, and problems that are rel-
legal environment. Topics include the following: evant to business operations. Almost all of the features
• Should You Consent to Have Your Business Case and cases conclude with some type of critical thinking
Decided by a U.S. Magistrate Judge? (Chapter 4) question. For those teaching future CPAs, this is con-
• When Is a Warning Legally Bulletproof? sistent with the new CPA exam’s focus on higher-order
(Chapter 7) skills, such as critical thinking and problem solving.
• The Criminalization of American Business
(Chapter 10)
• Commercial Use of Drones (Chapter 21) Highlighted and Numbered Examples and
• The SEC’s Pay-Ratio Disclosure Rule (Chapter 42) Case in Point Illustrations
Many instructors use cases and examples to illustrate how
Entire Chapter on Internet Law, the law applies to business. Students understand legal
concepts better in the context of their real-world applica-
Social Media, and Privacy tion. Therefore, for this edition of Business Law, we have
The Fifteenth Edition again includes a whole chapter expanded the number of highlighted numbered Examples
(Chapter 9) on Internet Law, Social Media, and Privacy. and Cases in Point in every chapter.

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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Another random document with
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on luja se liitto ja sauma —
pari kaunis kauan eläköön,
jalo nouskoon lapsien lauma!

Häälaulu on mun lauluni,

se uus, mi vanhat voittaa!
Olen haltioitu, mun sielussain
pyhät, korkeat tähdet koittaa —

tulitähdet tenhotut, hillittömät kuin tulvivat liekkilammet —

väen kumman tunnen ma itsessäni, käsin voisin taitella
tammet!
 Kotimaahan jalkani käytyä mun lumonesteet suonissa
soutaa — emon tapasi jättiläinen taas, hält' uusia voimia
noutaa.
II LUKU

Kun tyttönen lauloi ja liritti, min taisi, taivahan taikaa, niin

tulliherrat ne tutkivat mun arkkuni sillä aikaa.

Nenäliinat ja paidat ja housut muut,

joka nurkan ne nuuski ja kurkki;
jalokiviä, pitsejä, kirjoja
myös kielletyitä ne urkki.

Te tomppelit arkkujen tutkijat,

te tutkitte turhin vaivoin!
Salatavarat, joita ma kuljetan,
ne mull' on arkussa aivoin.

Siell' on mulla pitsit hienommat

kuin Brüsselin parhaat — ne jahka
ma näytän, niin neulasin neulotuiks
ne tunnette, tulessa nahka.

Jalokivet on, valtatimantit

ajan uuden otsalle mulla,
nuoren jumalan temppelikalleudet,
suuren tuntemattoman tulla.
 Ja kirjoja päässäni mulla myös,
sen sanon, on sangen monta!
Kuin laulava linnunpesä se pää
lukemista on luvatonta.

Sen sanon ma, Saatanan kirjastoss'

on tuskin niin turmiokkaita;
ei Hoffmann von Fallersleben ees
niin vaarallisia laitat —

Joku matkustaja se mainitsi,

ett' edessämme juuri
oli Preussin tulliliitto nyt,
tuo tullirengas suuri.

"On tulliliitto" — hän huomautti —

"perus kansallisuutemme vakaa,
isänmaalle eheän yhteyden
se pirstotulle takaa.

Meille ulkonaisen se yhteyden suo,

niin sanotun aineellisen;
suo sensuuri henkisen yhteyden,
tuon tosi-aatteellisen.

Meille tahtoo se sisäisen, mielien, ajatusten yhteyden taata;

yksimielinen Saksa me tarvitaan, sisält', ulkoa yhtä maata."
III LUKU

Tuoll' Aachenin tuomiokirkossa

Karolus Magnus maatuu, —
Karl Mayer, Svaabissa eläjä,
mies vallan toist' on laatuu.

Vähät maata Aachenin kirkossa

ma keisarivainaana soisin;
ennen Stukkertiss' äärellä Neckarjoen
runopiltti pieni ma oisin.

Kovin Aachenin koirill' on ikävä,

alamaisesti anoo ne suita:
"Meille potku suo, vähän virkistää
meit' ehkä se, vieras kulta.":

Tuossa kuivassa pesässä kulutin

ma saappaan korkoja tovin.
Sotaväkeä preussiläist' oli taas,
eip' ollut muuttunut kovin.

Sama vanha, harmaa mantteli

ja korkea punainen kaulus —
"Puna verta frankkien merkitsee",
soi muinen, Körner, sun laulusi

Nuo samat pedanttiset pökkelöt,

yhä vaan sama suora kulma
joka kääntehessä, ja kasvoilla
sama samea, puutunut pulma.

Yhä tuo sama jäykkä jäppäily,

sama asento seivässojo,
kuin kitaansa kepin he nielleet ois,
josta kyljiss' ol' ennen mojo.

Niin, sisäll' on heillä nyt pamppu, se

ole milloinkaan ihan laannut;
on sijaansa vaan tuo vanha "hän"
"sinän" tuttavallisen saanut.

Noina pitkinä viiksinä virkaan taas

sama vanha palmikko palas:
takapuolia se ennen puikkeli vaan,
nokan alta nyt riippuu alas.

Tuo uus univormu ratsuväen

mua miellytti melkoisesti,
teräspiikkinen kypäri semminkin, —
hyvä sillä on ollut lesti.

Sen ritarisuudessa kangastaa

kaikk' armahat romantiikit,
jalorotuiset rouva Montfauconit,
Fouquét, Uhlandit, Tieckit.
 Keskiaika kaunoinen kangastaa,
sen linnat ja ritarituvat,
asepojat, povissa uskollisuus,
takamuksissa vaakunakuvat.

Kaikki ristiretket ja turnaukset,

hovit lemmen ja kaihot kainot,
ajat aapisettoman uskon, jot' ei
vielä vienehet kirjapainot.

Jalo kypäri, kaikkein korkeimman

se sukkeluuden on väläys!
Se piikkiä, kärkeä puutu ei —
kuninkaallinen päähänpäläys!

Vain pelkään, ett' ukkosen noustessa

pian moinen piikki se johtaa
upo-uusimmat taivaan salamat
romanttista päätänne kohtaani

On köykäisemmät päähineet
sodan tullen tarvis ostaa;
kovin raskas on kesk'ajan kypäri,
jalat laukkaan kun saatte nostaa. — —

Ovell' Aachenin postitalon se taas

tuo lintu kilvessä liehui,
jota vihaan ma niin! Mua kohti sen
kähy musta silmissä kiehui.

Sa lintu-iljetys, maltas kun

sun käsiini saamaan osun,
mä kyllä sun kynin ja höyhennän
ja kyntes murskaksi hosun.

Sa maltas, ilmassa heilua saat

pian varressa pitkän luudan;
ma hauskahan haukan-ammuntaan
kytät, reiniläiset huudan.

Ken alas sun ampuu, se valtikan saa

sekä kruunun mult', uros oiva!
Torvet raikuvat, "kuningas eläköön!"
on riemuhuutomme soiva.
IV LUKU

Tulin Kölniin myöhään illalla, luo pauhuisen Reinin partaan,

mua hyväili ilmat jo isänmaan, niin minussa herätti hartaan

ne ruokahalun. Ma siellä söin munakakkua, kinkkua sian,

liha suolainen vaati suun kostukkeeks myös Reininviiniä pian.

Yhä vehreissä roomalaislaseissa

se vielä kultana hohtaa,
ja liikaa jos puolikon jonkun juot,
nokan päähän se nousee kohta.

Nokan päähän niin makea kutkutus,

että malta et maistamatt' olla; —
ulos lähteä katuja kaiuttamaan
piti öisellä kuutamolla.

Kivitalot ne katseli mua, kuin ois

ajan ammoisen tarinoita,
pyhän Kölnin kaupungin tahtoneet
mulle kertoa muisteloita.
 Niin, tääll' ovat nähneet elostavan
ne pappein, hurskasten sutten,
täällä "hämärät miehet" on häärineet,
kuten kertoo Ulrik von Hutten.

Täällä kesk'ajan nunnain ja munkkien

oli kankaani-maskeraati;
Hoogstraaten, Kölnin Menzel, tääll'
ilmiannot äkäiset laati.

Tääll' ihmisiä ja kirjoja

tulirovio tuhosi muinen;
soi kellot ja kyrie-eleison
nous ilmoille tuhatsuinen.

Täällä tyhmyys ja kiukku ne kiimaili

kuin koirat raitteja pitkin;
vielä tuntea uskonvimmastaan
voi jälkeläiset ne nytkin. —

Vaan tuolla kuutamossa, kas,

tuota jylhää kummitusta!
Se Kölnin tuomiokirkko on
tuo pelätti peikko-musta.

Tuli olla sen hengen bastilji,

ketut Rooman ne tuumi: tänne,
tähän jättityrmään turtuva
on Saksan järjen jänne!

Tuli silloin Luther, luja mies,

seis-huutonsa kuului suuri —
sen koommin korkenematta jäi
tuon tuomiokirkon muuri.

Se kesken jäi — ja se hyvä on.

Juuri valmistumatta-jäänti
sen Saksan voiman ja tehtävän
protestanttisen merkiks säänti.

Te tomppelit tuomioneuvoston,
onko aikomus kättenne heikkoin
työ jäänyt päättää, valmistaa
pesä vanha se sorron peikkoin?

Voi mielettömyyttä! Te kalistakaa

ropopussia, juoskaa rahaa
kereteiltä ja juutalaisiltakin —
siit' apua ei pahan pahaa.

Suotta suuri Franz Liszt hän soitollaan

tuota tuomiokirkkoa tukee,
ja muuan lahjakas kuningas
suotta hyväks sen lausuu ja lukee!

Tule tuomiokirkko se valmiiks ei,

vaikka Svaabin narrit keksi
koko laivan kiviä lähettää
sen jaloksi jatkamiseksi.

Tule valmiiks ei, vaikka kirkuna

miten korppein ja pöllöin kiihtyy,
jotka vanhanaikaisin aatteineen
hyvin vanhoissa torneissa viihtyy.
 Niin, aika on saava, mi itseään
sen valmistelull' ei vaivaa,
päinvastoin suojat sen sisäiset
se hevostalliksi raivaa.

"Hevostalliksi tuomiokirkkomme!
Mut kuinkas silloin noiden
pyhän kolmen kuninkaamme käy,
tabernaklissa nukkujoiden?"

Niin kysytte multa, mut pakkoko

on kursailla tämän ajan?
Itämaan pyhät kolmet kuninkaat
saa muuttaa muualle majan.

Ma teitä neuvon, ne pistäkää

noihin kolmeen rautavakkaan,
jotka Münsterissä on ripustetut
Pyhän Lambertin tornin lakkaan.

Ja jos triumviraatti ei täys, joku muu mies lisäksi pankaa

vainen, sijast' itäisten maitten kuninkaan joku pankaa
länsimainen.
V LUKU

Ja tuonne kun Reinin sillalle tulin Satamavallin luoksi, näin isä

Reinin, kun valossa kuun se juhlallisna juoksi.

Ole tervehditty sä, isä Rein,

sa oletko voinut hyvin?
Sua olen monesti muistellut
ma kaipauksin syvin.

Noin virkoin, ja oli kuin veestä ois

niin outo urina soinut,
mies vanha kuin yskäisin, vapisevin
ois äänin vaikeroinut:

"Tervetullut, poikani, kiitos, kun

noin vuott' olet kolmetoista
mua muistanut, poissa ollessas
sain kokea monenmoista.

Biberichissä kiviä niellä sain,

ei kiittää kestä se kekker'!
Mut pahemmin lastasi laulullaan
mun vatsani Niklas Becker.
 Mua laulanut on hän, kuin oisin ma
mikä puhtahin impi ikään,
kenen kunniankukkaista riistämään
ei tulla saa mies mikään.

Tuon tuhman laulun kuullessain

ihan valkopartani voisin
pois reväistä, itseni hukuttaa
ihan omaan itseeni soisin.

Pojat Ranskan ne paremmin tietävät,

mi on impeydessäni perää;
ovat voittajavetensä sekoittaneet
mun vesiini monta jo erää.

Tuo tuhma laulu ja tuhma mies!

Mua herjasi suotta syyttä.
Tavallaan mulle hän tuotti myös
poliittista ikävyyttä.

Näet ranskalaiset jos palaa nyt,

saan hävetä niiden eessä,
joka taivaalta heit' olen takaisin
ain' anonut silmät veessä.

Pikku ranskalaisia rakastanut

olen aina — vieläkö siellä
vain leikkivät, laulavat, valkoiset
heill' onko housut vielä?

Ilo heit' ois tavata, elleivät

he irvisteleis mua nähden
tuon kirotun loilotuksen vuoks,
tuon häväistyksen tähden.

Alfred de Musset, katupoika tuo,

etupäässä päälleni käyden
ehkä rummunlyöjänä rummuttaa
mulle kompia korvan täyden."

Noin huoltaan päivitti isä Rein,

koko oloa onnetonta.
Koin häntä rohkaista, haastelin
hälle lohdun sanaa monta:

Ole huoleti ilkuista, isä Rein,

ei enää he moniin vuosiin
ole vanhoja ranskalaisia,
myös housut on uuteen kuosiin.

Ne on punaiset nyt, ei valkoiset,

napit toiset myös niitä sulkee.
Heiltä leikit ja laulut on lakanneet,
päät kuurussa miettein he kulkee.

He filosofeeraa nyt Kanteista

ja Fichteistä, Hegeleistä,
he piippua polttaa ja olutta juo,
lyö keilaakin moni heistä.

Poroporvareiksi kuin mekin he käy,

ja vimmatummiksi vielä;
Voltairen henki on heistä pois,
pian Hengstenberg herra on siellä.
 Alfred de Musset'llä tosiaan
vielä katupojan on eljet;
mut rauhaan jää, hänen kielelleen
kyllä teemme häijylle teljet.

Pahan komman sulle jos rummuttaa,

saa kuulla hän pahemmat kommat,
saa kuulla, kuin kävi kauniissa
hamekansassa häitä hommat.

Viis tuhmista lauluista, isä Rein,

pois huolet ja huonot tuulet!
Jää hyvästi, jälleen tapaamme —
pian paremman laulun kuulet.
VI LUKU

Paganinia seurasi alati oma spiritus familiaris, kuin koira

milloin, milloin kuin edesmennyt herra Georg Harrys.

Näki punaisen miehen Napoleon,

kun suurt' oli tapahtuva,
ja Sokrateell' oli daimoni,
ei ollut se hourekuva.

Minä itse, kun pöytäni ääressä

välin myöhään yöll' olin työssä,
olan takaa olennon kammokkaan
näin naamio kasvoilla yössä.

Salas jotain kummasti kiiluvaa

hänen vaippansa vaiheella hihan,
se kirveeltä, teloituskirveeltä
mun silmääni näytti ihan.

Oli olento vanttera varreltaan,

ja silmät kuin tähteä kaksi;
ei koskaan työtäni häirinnyt,
jäi tyynnä vaan taemmaksi.
 Ei vuosiin ollut näyttäynyt
tuo kumma kumppani luona,
kun äkisti Kölnissä tapasin taas
hänet kuutamoyönä tuona.

Ma miettien katuja mitatessain

hänen keksin takana käyvän,
kuin varjoni ois, ja kun pysähdin,
näin hänenkin pysähtäyvän.

Hän pysähti, kuin mit' ois odottanut,

kävi taas, kun käydä ma aloin.
Noin tuomiokirkon torille
oli tultu me jalka jaloin.

Sit' en sietänyt enää, ma käännähdin:

"Tee tili, mies, mikä sulia
jok' askel noin läpi aution yön
on tarvis takana tulla?

Sun aina tapaan, kun laineihin

saa maailmantunteet laajat
mun poveni, kun läpi aivojen
lyö hengen hehkuvat vaajat.

Sa minuun jäykästi tuijotat noin —

tee tili: sa mitä salaat,
joka vilkkuu ja välkkyy suu viitastas?
Ken olet ja mitä halaat?"

Mut toinen laiskan kuivasti

vain vastaa: "Salli nyt saattos,