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vi CONTENTS

Kelo v. City of New London, Connecticut 122 Burden of Proof 165


Fourteenth Amendment: Equal Protection Right to a Jury 165
Clause 123 Felony/Misdemeanor 165
Criminal Procedure 165
Chapter Conclusion 126 Conduct Outlawed 165
Exam Review 126 State of Mind 166
Multiple-Choice Questions 128 Gathering Evidence: The Fourth
Essay Questions 129 Amendment 166
Discussion Questions 130 You Be the Judge: Ohio v. Smith 168
The Case Begins 170
Landmark Case: Miranda v. Arizona 171
Chapter 6 Torts 132 Right to a Lawyer 172
Intentional Torts 134 After Arrest 172
Defamation 134 Ewing v. California 174
False Imprisonment 136 Crimes that Harm Business 175
Jane Doe and Nancy Roe v. Lynn Mills 137 Larceny 175
Intentional Infliction of Emotional Distress 137 Fraud 176
Additional Intentional Torts 138 Skilling v. United States 177
Damages 138 Arson 179
Compensatory Damages 138 Embezzlement 179
Punitive Damages 140 Crimes Committed by Business 179
Landmark Case: State Farm v. Campbell 141 Commonwealth v. Angelo Todesca Corp. 180
Business Torts 142 Selected Crimes Committed by Business 180
Tortious Interference with Business Punishing a Corporation 183
Relations 142
Privacy and Publicity 144 Chapter Conclusion 184
Negligence 144 Exam Review 185
Duty of Due Care 145 Multiple-Choice Questions 187
Hernandez v. Arizona Board of Regents 146 Essay Questions 188
Breach of Duty 148 Discussion Questions 189
Causation 148
Damages 150
Defenses 151 Chapter 8 International Law 190
Contributory and Comparative Negligence 151 Trade Regulation: The Big Picture 191
Assumption of the Risk 152 Export Controls 191
Truong v. Nguyen 153 You Be the Judge: Totes-Isotoner Co. v.
Strict Liability 154 United States 192
Ultrahazardous Activity 154 Import Controls 192
Product Liability 154 Treaties 193
United States—Import Prohibition
Chapter Conclusion 156 of Certain Shrimp and Shrimp
Exam Review 156 Products 194
Multiple-Choice Questions 159 International Sales Agreements 197
Essay Questions 160 The Sales Contract 197
Discussion Questions 162 Centrifugal Casting Machine Co., Inc. v.
American Bank & Trust Co. 200
International Trade Issues 201
Chapter 7 Crime 163 Repatriation of Profits 201
The Differences between a Civil and Criminal Expropriation 202
Case 164 Foreign Corrupt Practices Act 203
Prosecution 164 United States v. King 204

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CONTENTS vii

Extraterritoriality 205 Chapter 10 Legality, Consent, and Writing 238


You Be the Judge: Carnero v. Boston Legality 239
Scientific Corporation 206 Noncompete Agreements 239
King v. Head Start Family Hair Salons, Inc. 240
Chapter Conclusion 207 Sales of a Business 241
Exam Review 207 Exculpatory Clauses 242
Multiple-Choice Questions 210 Unconscionable Contracts 243
Essay Questions 211 You Be the Judge: Ransburg v. Richards 243
Discussion Questions 212 Voidable Contracts: Capacity and Consent 244
Capacity 245
Reality of Consent 246
Mistake 248
UNIT 2 Duress 249
Contracts & the UCC 213 Written Contracts 250
Common Law Statute of Frauds: Contracts
Chapter 9 Introduction to Contracts 214 That Must Be in Writing 251
Contracts 215 The Common Law Statute of Frauds: What
Elements of a Contract 215 the Writing Must Contain 253
Other Important Issues 216 The UCC’s Statute of Frauds 254
Types of Contracts 216 Parol Evidence 254
Bilateral and Unilateral Contracts 216 Mayo v. North Carolina State University 255
Executory and Executed Contracts 216
MR. W FIREWORKS, Chapter Conclusion 256
INC. v. OZUNA 217 Exam Review 256
Valid, Unenforceable, Voidable, and Void Multiple-Choice Questions 259
Agreements 217 Essay Questions 260
Express and Implied Contracts 218 Discussion Questions 261
You Be the Judge: Demasse v. ITT corporation 219
Promissory Estoppel and Quasi-Contracts 220
Sources of Contract Law 221 Chapter 11 Performance, Discharge, and
Common Law 221 Remedies 263
Uniform Commercial Code 221 Performance and Discharge 264
The Agreement 222 Performance 264
Meeting of the Minds 222 Brunswick Hills Racquet Club Inc. v. Route
Offer 223 18 Shopping Center Associates 266
Landmark Case: Carlill v. Carbolic Smoke Breach 268
Ball Company 224 O’Brien v. Ohio State University 268
Termination of Offers 225 Impossibility 270
Nadel v. Tom Cat Bakery 226 Remedies 271
Acceptance 227 Expectation Interest 272
Consideration 229 Landmark Case: Hawkins v. McGee 272
Landmark Case: Hamer v. Sidway 230 You Be the Judge: Bi-Economy Market, Inc.
v. Harleysville Ins. Co. of New York 274
Chapter Conclusion 231 Reliance Interest 275
Exam Review 231 Restitution Interest 276
Multiple-Choice Questions 235 Other Remedies 276
Essay Questions 236 Milicic v. Basketball Marketing Company, Inc. 278
Discussion Questions 237 Special Issues 279

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viii CONTENTS

Chapter Conclusion 280 Implied Warranties 323


Exam Review 280 Goodman v. Wenco Foods, Inc. 324
Multiple-Choice Questions 283 Secured Transactions 325
Essay Questions 284 Article 9: Terms and Scope 325
Discussion Questions 286 Article 9 Vocabulary 325
Attachment of a Security Interest 326
Agreement 327
Chapter 12 Practical Contracts 287 Control and Possession 327
The Lawyer 288 Value 327
Lawyers and Clients 289 Debtor Rights in the Collateral 327
Hiring a Lawyer 289 Perfection 328
The Contract 290 Nothing Less than Perfection 328
Who Drafts It? 290 Perfection by Filing 328
How to Read a Contract 290 Corona Fruits & Veggies, Inc. v. Frozsun
Mistakes 290 Foods, Inc. 329
Quake Construction v. American Airlines 291 Perfection by Possession or Control 331
Cipriano v. Patrons Mutual Insurance Perfection of Consumer Goods 331
Company of Connecticut 293 Protection of Buyers 332
You Be the Judge: Heritage Technologies v. You Be the Judge: Conseco Finance Servicing
Phibro-Tech 295 Corp. v. Lee 333
The Structure of a Contract 297 Priorities among Creditors 334
LeMond Cycling, Inc. v. PTI Holding, Inc. 300 Default and Termination 335
Default 335
Chapter Conclusion 306 Termination 335
Exam Review 306
Multiple-Choice Questions 308 Chapter Conclusion 335
Essay Questions 309 Exam Review 336
Discussion Questions 310 Multiple-Choice Questions 339
Essay Questions 341
Discussion Questions 342
Chapter 13 The UCC: Sales and Secured
Transactions 311
Development of the UCC 312 Chapter 14 Negotiable Instruments 343
Harold and Maude, Revisited 312 Commercial Paper 344
Scope of Article 2 313 Types of Negotiable Instruments 344
Mixed Contracts 313 The Fundamental “Rule” of Commercial Paper 345
Merchants 314 Negotiable 345
Contract Formation 314 You Be the Judge: Blasco v. Money Services
Formation Basics: Section 2-204 314 Center 348
Statute of Frauds 314 Negotiated 348
Delta Star, Inc. v.. Michael’s Carpet World 316 Holder in Due Course 349
Added Terms: Section 2-207 317 Buckeye Check Cashing, Inc. v. Camp 350
Modification 319 Defenses against a Holder in Due Course 351
Hessler v. Crystal Lake Chrysler-Plymouth, Consumer Exception 352
Inc. 320 Antuna v. Nescor, Inc. 352
Performance and Remedies 320 Liability for Negotiable Instruments 353
Buyer’s Remedies 320 Primary versus Secondary Liability 353
Seller’s Remedies 322 Signature Liability 353
Warranties 322 Maker 354
Express Warranties 322 Drawer 354

Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has
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CONTENTS ix

Drawee 354 Chapter 13 Consumer Reorganizations 387


Indorser 355 You Be the Judge: Marrama v. Citizens Bank
Accommodation Party 356 of Massachusetts 388
Warranty Liability 356 Beginning a Chapter 13 Case 389
Basic Rules of Warranty Liability 356 Plan of Payment 389
Transfer Warranties 357 Discharge 389
You Be the Judge: Quimby v. Bank
of America 358 Chapter Conclusion 390
Comparison of Signature Liability and Exam Review 390
Transfer Warranties 359 Multiple-Choice Questions 391
Presentment Warranties 359 Essay Questions 392
Other Liability Rules 360 Discussion Questions 393
Conversion Liability 360
Impostor Rule 361
Fictitious Payee Rule 361
Employee Indorsement Rule 361 UNIT 3
Negligence 362 Agency & Employment 395
Chapter Conclusion 363 Chapter 16 Agency Law 396
Exam Review 363 Creating an Agency Relationship 397
Multiple-Choice Questions 367 Consent 397
Essay Questions 367 Control 398
Discussion Questions 369 Fiduciary Relationship 398
Elements Not Required for an Agency
Relationship 398
Chapter 15 Bankruptcy 370 Duties of Agents to Principals 399
Overview of the Bankruptcy Code 371 Duty of Loyalty 399
Rehabilitation 371 Otsuka v. Polo Ralph Lauren Corporation 399
Liquidation 372 Abkco Music, Inc. v. Harrisongs Music, Ltd. 400
Chapter Description 372 Other Duties of an Agent 402
Goals 372 Principal’s Remedies when the Agent
Chapter 7 Liquidation 372 Breaches a Duty 403
Filing a Petition 373 Duties of Principals to Agents 404
Trustee 374 Duty to Cooperate 405
Creditors 374 Terminating an Agency Relationship 405
Automatic Stay 375 Termination by Agent or Principal 405
Jackson v. Holiday Furniture 375 Principal or Agent Can No Longer Perform
Bankruptcy Estate 376 Required Duties 406
Payment of Claims 378 Change in Circumstances 407
Discharge 380 Effect of Termination 407
In Re Stern 381 Liability 408
In Re Grisham 383 Principal’s Liability for Contracts 408
Chapter 11 Reorganization 384 Authority 408
Debtor in Possession 385 Ratification 409
Creditors’ Committee 385 Subagents 410
Plan of Reorganization 385 Agent’s Liability for Contracts 410
Confirmation of the Plan 385 Fully Disclosed Principal 410
Discharge 386 Unidentified Principal 411
In Re Fox 386 Undisclosed Principal 411
Small-Business Bankruptcy 387 Unauthorized Agent 412

Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). 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.
x CONTENTS

Principal’s Liability for Torts 413 Chapter 18 Employment Discrimination 453


Employee 413 Introduction 454
Scope of Employment 414 The United States Constitution 454
You Be the Judge: Zankel v. United States of Civil Rights Act of 1866 455
America 415 Title VII of the Civil Rights Act of 1964 455
Intentional Torts 416 Prohibited Activities 455
Doe v. Liberatore 416 You Be the Judge: Jespersen v. Harrah’s 456
Physical or Nonphysical Harm 417 Landmark Case: Griggs v. Duke Power Co. 457
Agent’s Liability for Torts 418 Teresa Harris v. Forklift Systems, Inc. 459
Religion 461
Chapter Conclusion 418 Sex 462
Exam Review 419 Family Responsibility Discrimination 462
Multiple-Choice Questions 421 Sexual Orientation 463
Essay Questions 423 Gender Identity 463
Discussion Questions 423 Defenses to Charges of Discrimination 463
Equal Pay Act of 1963 465
Pregnancy Discrimination Act 465
Chapter 17 Employment and Labor Law 425 Age Discrimination in Employment Act 466
Introduction 426 Disparate Treatment 466
Employment Security 427 Reid v. Google, Inc. 467
Family and Medical Leave Act 427 Disparate Impact 468
Peterson v. Exide Technologies 427 Hostile Work Environment 468
Health Insurance 428 Bona Fide Occupational Qualification 468
Common-Law Protections 428 Discrimination on the Basis of Disability 469
Kozloski v. American Tissue Services The Rehabilitation Act of 1973 469
Foundation 430 Americans with Disabilities Act 469
Whistleblowing 433 Allen v. SouthCrest Hospital 470
Privacy in the Workplace 435 Genetic Information Nondiscrimination Act 473
Lifestyle Laws 435 Enforcement 473
You Be the Judge: Rodrigues v. Scotts Constitutional Claims 474
Lawnservice 436 The Civil Rights Act of 1866 474
Workplace Safety 439 The Rehabilitation Act of 1973 474
Financial Protection 439 Other Statutory Claims 474
Fair Labor Standards Act: Minimum Wage,
Overtime, and Child Labor 440 Chapter Conclusion 476
Workers’ Compensation 440 Exam Review 476
Social Security 440 Multiple-Choice Questions 479
Pension Benefits 441 Essay Questions 480
Labor Law and Collective Bargaining 441 Discussion Questions 481
Key Pro-Union Statutes 441
Labor Unions Today 442
Organizing a Union 442 UNIT 4
Collective Bargaining 444
Concerted Action 445 Business Organizations 483
Landmark Case: NLRB v. Truitt
Manufacturing Co. 445 Chapter 19 Starting a Business: LLCs and
Other Options 484
Chapter Conclusion 447 Sole Proprietorships 485
Exam Review 447 Corporations 486
Multiple-Choice Questions 450 Corporations in General 486
Essay Questions 451 S Corporations 488
Discussion Questions 452 Close Corporations 489

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CONTENTS xi

Limited Liability Companies 490 Chapter Conclusion 537


You Be the Judge: Ridgaway v. Silk 491 Exam Review 537
Wyoming.Com, LLC v. Lieberman 492 Multiple-Choice Questions 540
BLD Products, LTD. v. Technical Plastics of Essay Questions 541
Oregon, LLC 493 Discussion Questions 542
Tzolis v. Wolff 494
Socially Conscious Organizations 496
General Partnerships 497 Chapter 21 Securities Regulation 544
Marsh v. Gentry 498 Introduction 545
Limited Liability Partnerships 500 The Securities and Exchange Commission 545
Limited Partnerships and Limited Liability What Is a Security? 546
Limited Partnerships 500 Securities Act of 1933 546
Professional Corporations 502 General Exemption 547
Joint Ventures 502 Exempt Securities 547
Franchises 503 Exempt Transactions 547
National Franchisee Association v. Burger Public Offerings 552
King Corporation 504 Sales of Restricted Securities 553
You Be the Judge: EBC I, Inc. v. Goldman
Chapter Conclusion 505 Sachs & CO. 553
Exam Review 506 Liability under the 1933 Act 554
Multiple-Choice Questions 507 Securities Exchange Act of 1934 555
Essay Questions 508 General Provisions of the 1934 Act 556
Discussion Questions 509 Liability under the 1934 Act 557
Matrixx Initiatives, Inc. v. Siracusano 559
Stoneridge Investment Partners, LLC
Chapter 20 Corporations 511 v. Scientific-Atlanta, Inc. 561
Promoter’s Liability 512 Insider Trading 562
Incorporation Process 512 Securities and Exchange Commission v. Steffes 564
Where to Incorporate? 512 Sarbanes-Oxley 566
The Charter 513 Dodd-Frank 566
After Incorporation 516 Blue Sky Laws 566
Directors and Officers 516 Exemption from State Regulation 566
Bylaws 517 State Regulation 567
Issuing Debt 517 Facilitating State Regulation 567
Death of the Corporation 517
Piercing the Corporate Veil 518 Chapter Conclusion 568
Brooks v. Becker 518 Exam Review 568
Termination 519 Multiple-Choice Questions 571
The Role of Corporate Management 519 Essay Questions 572
The Business Judgment Rule 520 Discussion Questions 573
Duty of Loyalty 521
Anderson v. Bellino 522
Duty of Care 524
The Role of Shareholders 525 UNIT 5
Rights of Shareholders 526
Brehm v. Eisner (In re Walt Disney Co.
Government Regulation
Derivative Litig.) 534 and Property 575
You Be the Judge: eBay Domestic Holdings,
Inc. v. Newmark 535 Chapter 22 Antitrust 576
Enforcing Shareholder Rights 536 In the Beginning 577
Derivative Lawsuits 536 Antitrust Legislation 578
Direct Lawsuits 537 Chicago School 578

Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). 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.
xii CONTENTS

Overview of Antitrust Laws 579 Chapter 24 Intellectual Property 627


Cooperative Strategies 580 Introduction 628
Horizontal Cooperative Strategies 580 Patents 628
Landmark Case: United States v. Trenton Types of Patents 628
Potteries Company 581 Requirements for a Patent 630
Fears v. Wilhelmina Model Agency, Inc. 583 Patent Application and Issuance 631
Vertical Cooperative Strategies 584 Copyrights 634
You Be the Judge: Feesers, Inc. v. Michael Lapine v. Seinfeld 635
Foods, Inc. 586 Copyright Term 636
Mergers and Joint Ventures 587 Infringement 636
Landmark Case: United States v. Waste First Sale Doctrine 636
Management, Inc. 587 Fair Use 636
Aggressive Strategies 588 Digital Music and Movies 638
Monopolization 588 Metro-Goldwyn-Mayer Studios, Inc.
Predatory Pricing 591 v. Grokster, Ltd. 639
Tying Arrangements 592 International Copyright Treaties 641
Controlling Distributors and Retailers 593 Trademarks 641
Resale Price Maintenance 594 Types of Marks 642
Leegin Creative Leather Products, Inc. Ownership and Registration 642
v. PSKS, Inc. 595 Valid Trademarks 642
Infringement 644
Chapter Conclusion 596 You Be the Judge: Network Automation, Inc.
Exam Review 596 v. Advanced Systems Concepts, Inc. 645
Multiple-Choice Questions 599 Federal Trademark Dilution Act of 1995 646
Essay Questions 600 Domain Names 646
Discussion Questions 600 International Trademark Treaties 647
Trade Secrets 648
Pollack v. Skinsmart Dermatology and
Chapter 23 Cyberlaw 602 Aesthetic Center P.C. 649
Privacy 604
Tracking Tools 604 Chapter Conclusion 650
Regulation of Online Privacy 605 Exam Review 650
You Be the Judge: Juzwiak v. John/Jane Doe 606 Multiple-Choice Questions 651
United States of America v. Angevine 607 Essay Questions 652
United States of America v. Warshak 608 Discussion Questions 654
You Be the Judge: Scott v. Beth Israel
Medical Center Inc. 611
Spam 612 Chapter 25 Property 655
Internet Service Providers and Web Hosts: Nature of Real Property 656
Communications Decency Act of 1996 614 Estates in Real Property 657
Carafano v. Metrosplash.com, Inc. 614 Freeman v. Barrs 657
Crime on the Internet 616 Concurrent Estates 658
Hacking 616 Jackson v. Estate of Green 659
Fraud 617 Nonpossessory Interests 660
Easements 661
Chapter Conclusion 620 Profit 661
Exam Review 620 License 661
Multiple-Choice Questions 623 Mortgage 661
Essay Questions 624 Land Use Regulation 662
Discussion Questions 625 Nuisance Law 662

Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). 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.
CONTENTS xiii

Zoning 662 Federal Trade Commission v. Direct


Eminent Domain 663 Marketing Concepts, Inc. 687
Landlord-Tenant Law 663 Unfair Practices 688
Three Legal Areas Combined 664 Additional Sales Rules 689
Lease 664 Consumer Credit 691
Types of Tenancy 664 Truth in Lending Act—General Provisions 691
Tenancy for Years 664 Home Loans 692
Periodic Tenancy 664 Credit Cards 694
Tenancy at Will 665 Gray v. American Express Co. 697
Tenancy at Sufferance 665 Debit Cards 698
Landlord’s Duties 665 Credit Reports 699
Duty to Deliver Possession 665 Debt Collection 701
Quiet Enjoyment 665 Equal Credit Opportunity Act 702
Duty to Maintain Premises 666 You Be the Judge: Brown v. Card Service
Mishkin v. Young 667 Center 702
Tenant’s Duties 668 Treadway v. Gateway Chevrolet
Duty to Pay Rent 668 Oldsmobile Inc. 703
Duty to Use Premises for Proper Purpose 670 Consumer Leasing Act 704
Duty Not to Damage Premises 670 Magnuson-Moss Warranty Act 705
Duty Not to Disturb Other Tenants 670 Consumer Product Safety 705
Injuries 670
Tenant’s Liability 670 Chapter Conclusion 706
Landlord’s Liability 671 Exam Review 706
Personal Property 671 Multiple-Choice Questions 710
Gifts 671 Essay Questions 711
Intention to Transfer Ownership 672 Discussion Questions 712
Delivery 672
Inter Vivos Gifts and Gifts Causa Mortis 673
You Be the Judge: Albinger v. Harris 674
Acceptance 674 Chapter 27 Environmental Law 714
Bailment 675 Introduction 715
Control 676 Environmental Protection Agency 715
Rights of the Bailee 676 Air Pollution 716
Duties of the Bailee 677 Clean Air Act 716
You Be the Judge: Johnson v. Weedman 678 You Be the Judge: Central Arizona Water
Conservation District v. EPA 717
Chapter Conclusion 678 Greenhouse Gases and Global Warming 718
Exam Review 678 Soot Particles 720
Multiple-Choice Questions 681 Air Toxics 720
Essay Questions 682 Water Pollution 721
Discussion Questions 684 Clean Water Act 722
Entergy Corporation v. Riverkeeper, Inc. 722
Other Water Pollution Statutes 725
Chapter 26 Consumer Law 685 Waste Disposal 726
Introduction 686 Resource Conservation and Recovery Act 726
Federal Trade Commission 686 Superfund 728
Consumer Financial Protection Bureau 687 Chemicals 729
Sales 687 Federal Insecticide, Fungicide, and
Deceptive Acts or Practices 687 Rodenticide Act 729

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xiv CONTENTS

Federal Food, Drug, and Cosmetic Act 730 Essay Questions 739
Food Quality Protection Act of 1996 730 Discussion Questions 739
Toxic Substances Control Act 730
Natural Resources 730 Appendix A
National Environmental Policy Act 730 The Constitution of the United States A1
You Be the Judge: Winter v. Natural
Appendix B
Resources Defense Council, Inc. 731
Uniform Commercial Code (Selected Provisions) B1
Endangered Species Act 732
Gibbs v. Babbitt 733 Glossary G1
Chapter Conclusion 735 Table of Cases T1
Exam Review 735
Multiple-Choice Questions 738 Index I1

Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has
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PREFACE

Looking for more examples for class? Do you want the latest developments? Visit our blog at
Bizlawupdate.com. To be notified when we post updates, just “like” our Facebook page at
Beatty Business Law or follow us on Twitter @bizlawupdate.

NOTE FROM THE AUTHORS


New to This Edition
A New Chapter: Practical Contracts
In this textbook, as well as other business law texts, contracts chapters focus on the theory of
contract law. And that theory is important. But our students tell us that theory, by itself, is
not enough. They need to know how these abstract rules operate in practice. They want to
understand the structure and content of a standard agreement. They have questions such as:
• Do I need a written agreement?
• What do these legal terms really mean?
• Are any important provisions missing?
• What happens if a provision is unclear?
• Do I need to hire a lawyer? How can I use a lawyer most effectively?
We answer all these questions in Chapter 12, “Practical Contracts,” which is new to this
edition. As an illustration throughout the chapter, we use a real-life contract between a
movie studio and an actor.

A New Chapter: Employment Discrimination


We have heard from faculty and students alike that employment law plays an increasingly
important role in the life of a businessperson. At the same time, fewer and fewer workers belong
to labor unions. Therefore, we have rewritten the labor law and employment law chapters from
the previous edition. Instead of one chapter on labor law and one on employment law, we now
have a new Chapter 17, “Employment and Labor Law,” which covers both common law
employment issues and labor law. In addition, Chapter 18, “Employment Discrimination,”
focuses solely on employment discrimination and includes, among other things, an expanded
discussion of disparate impact cases, which have become increasingly common and important.

Landmark Cases
As a general rule, we want our cases to be as current as possible, reporting on the world as it is
now. However, sometimes students can benefit from reading vintage cases that are still good law
and provide a deep understanding of how and why the law has developed as it has. Thus, for
example, we have added a discussion about the famous Supreme Court case Miranda v. Arizona.
Reading this case provides students with a much better understanding of why the Supreme
Court created Miranda rights, and this context helps students follow the recent Supreme Court
rulings on Miranda. Other landmark cases include Hawkins v. McGee (the case of the hairy hand),
Griggs v. Duke Power Co., and International Shoe Co. v. State of Washington.

xv

Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). 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.
xvi PREFACE

Reorganized and Revised Material


To reflect requests from faculty, the product liability material is now covered in Chapter 6,
“Torts and Product Liability,” because most people like to teach these two subjects
together. The topics of sales and secured transactions are now in the same chapter,
Chapter 13, “Secured Transactions and Sales,” while bankruptcy has its own stand-alone
chapter devoted to it, Chapter 15.
The new CPA exam no longer includes questions about banks and their customers, and
much of that material (such as how long it takes checks to clear) is not very relevant to our
students. Therefore, in Chapter 14, “Negotiable Instruments,” we have replaced the bank-
ing material with information on liability for negotiable instruments.

The New Patent Law


This statute represents the most major change in patent law in our lifetime.

The JOBS Act


The Jumpstart Our Business Startups (JOBS) Act rewrote significant portions of the
securities laws. These changes are included in this edition.

End of Chapter Material


To facilitate class discussion and student learning, we have overhauled the study questions
at the end of the chapters. They are now divided into three parts:
1. Multiple-choice questions. Because many instructors use this format in their tests,
it seemed appropriate to provide practice questions. The answers to these multiple-
choice questions are available to students online at www.cengagebrain.com.
2. Essay questions. Students can use these as study questions, and professors can also
assign them as written homework problems.
3. Discussion questions. Instructors can use these questions to enhance class discussion.
If assigned in advance, students will have a chance to think about the answers
before class. This format follows one that students are used to from business cases,
which often pose discussion questions in advance.

Other New Material


We have, of course, added substantial new material, with a particular focus on the Internet
and social media. Chapter 17, “Employment and Labor Law,” includes a section on social
media. Chapter 20, “Corporations,” uses Facebook as an example of how to organize a
corporation. There are also new cases involving eBay and craigslist. In addition, Chapter 19,
“Starting a Business: LLCs and Other Options,” includes a new section about socially
conscious organizations.

Staying Current: Our Blog, Facebook, and Twitter


To find out about new developments in business law, visit our blog at Bizlawupdate.com.
If you “like” our Facebook page at Beatty Business Law or follow us on Twitter
@bizlawupdate, you will receive a notification automatically whenever we post to the blog.

The Beatty/Samuelson Difference


When we began work on the first edition of this textbook, our publisher warned us that our
undertaking was risky because there were already so many Legal Environment texts.
Despite these warnings, we were convinced that there was a market for a Legal Environment

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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.
PREFACE xvii

book that was different from all the others. Our goal was to capture the passion and
excitement—the sheer enjoyment—of the law. Business law is notoriously complex, and as
authors we are obsessed with accuracy. Yet this intriguing subject also abounds with human
conflict and hard-earned wisdom, forces that can make a law book sparkle.
Now, as this fifth edition goes to press, we look back over the intervening years and
are touched by the many unsolicited comments from students, such as these posted on
Amazon:
• “Glad I purchased this. It really helps put the law into perspective and allows me as a
leader to make intelligent decisions. Thanks.”
• “I enjoyed learning business law and was happy my college wanted this book.
THUMBS UP!”
We think of the students who have emailed us to say, “In terms of clarity, comprehen-
siveness, and vividness of style, I think it’s probably the best textbook I’ve ever used in any
subject,” and “I had no idea business law could be so interesting.” Or the faculty who have
told us, “Until I read your book, I never really understood UCC 2-207” and “With your
book, we have great class discussions.” Comments such as these never cease to thrill us and
to make us grateful that we persisted in writing a Legal Environment text like no other—a
book that is precise and authoritative, yet a pleasure to read.
Comprehensive. Staying comprehensive means staying current. This fifth edition
contains over 50 new cases. Almost all were reported within the last two or three years.
We never include a new court opinion merely because it is recent, but the law evolves
continually, and our willingness to toss out old cases and add important new ones ensures
that this book—and its readers—remain on the frontier of legal developments.
Look, for example, at the important field of corporate governance. All texts cover par
value, and so do we. Yet a future executive is far likelier to face conflicts over Sarbanes-
Oxley (SOX), executive compensation, and shareholder proposals. We present a clear path
through this thicket of new issues. In Chapter 20, for example, read the section about the
election and removal of directors. Typically, students (even those who are high-level
executives) have a basic misconception about the process of removing a director from office.
They think that it is easy. Once they understand the complexity of this process, their whole
view of corporate governance—and compensation—changes. We want tomorrow’s business
leaders to anticipate the challenges that await them and then use their knowledge to avert
problems.
Strong Narrative. The law is full of great stories, and we use them. Your students
and ours should come to class excited. Look at Chapter 3, “Dispute Resolution.” No
tedious list of next steps in litigation, this chapter teaches the subject by tracking a
double-indemnity lawsuit. An executive is dead. Did he drown accidentally, obligating
the insurance company to pay? Or did the businessman commit suicide, voiding the
policy? The student follows the action from the discovery of the body, through each step
of the lawsuit, to the final appeal.
Students read stories and remember them. Strong narratives provide a rich context for
the remarkable quantity of legal material presented. When students care about the material
they are reading, they persevere. We have been delighted to find that they also arrive in
class eager to question, discuss, and learn more about issues.
Precise. The great joy of using English accurately is the power it gives us to attack
and dissect difficult issues, rendering them comprehensible to any lay reader. This text
takes on the most complex legal topics of the day, yet it is appropriate for all college and
graduate-level students. Accessible prose goes hand in hand with legal precision. We take
great pride in walking our readers through the most serpentine mazes this tough subject
can offer.

Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). 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.
xviii PREFACE

As we explore this extraordinary discipline, we lure readers along with quirky anecdotes
and colorful diagrams. (Notice that the color display on page 525 clarifies the complex rules
of the duty of care in the business judgment rule.) However, before the trip is over, we insist
that students:
• Gauge policy and political considerations,
• Grapple with legal and social history,
• Spot the nexus between disparate doctrines, and
• Confront tough moral choices.

Authoritative. We insist, as you do, on a lawbook that is indisputably accurate. A


professor must teach with assurance, confident that every paragraph is the result of
exhaustive research and meticulous presentation. Dozens of tough-minded people spent
thousands of hours reviewing this book, and we are delighted with the stamp of approval
we have received from trial and appellate judges, working attorneys, scholars, and
teachers.
We reject the cloudy definitions and fuzzy explanations that can invade judicial
opinions and legal scholarship. To highlight the most important rules, we use bold print,
and then follow with vivacious examples written in clear, forceful English. (See, for
example, the discussion of factual cause on page 149.) We cheerfully venture into con-
tentious areas, relying on very recent appellate decisions. Can a creditor pierce the veil of an
LLC? What are the rights of an LLC member in the absence of an operating agreement?
(See pages 491–494.) Where there is doubt about the current (or future) status of a doctrine,
we say so. In areas of particularly heated debate, we footnote our work: we want you to have
absolute trust in this book.
A Book for Students. We have written this book as if we were speaking directly to
our students. We provide black letter law, but we also explain concepts in terms that hook
students. Over the years, we have learned how much more successfully we can teach when
our students are intrigued. No matter what kind of a show we put on in class, they are only
learning when they want to learn.
Every chapter begins with a story, either fictional or real, to illustrate the issues in the
chapter and provide context. Chapter 23, “Cyberlaw,” begins with the true story of a college
student who discovers nude pictures of himself online. These photos had been taken in the
locker room without his knowledge. What privacy rights do any of us have? Does the
Internet jeopardize them? Students want to know—right away.
Many of our students were not yet born when Bill Clinton was elected president. They
come to college with varying levels of preparation; many now arrive from other countries.
We have found that to teach business law most effectively, we must provide its context.
Chapter 21, “Securities Regulation,” begins with a brief but graphic description of the 1929
stock market crash and the Great Depression (page 544). Only with this background do
students grasp the importance and impact of our securities laws.
At the same time, we enjoy offering “nuts-and-bolts” information that grabs students.
For example, in Chapter 26, “Consumer Law,” we offer advice about how students can
obtain a free credit report (page 700).
Students respond enthusiastically to this approach. One professor asked a student to
compare our book with the one that the class was then using. This was the student’s
reaction: “I really enjoy reading the [Beatty & Samuelson] textbook and I have decided
that I will give you this memo ASAP, but I am keeping the book until Wednesday so that I
may continue reading. Thanks! :-)”

Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). 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.
PREFACE xix

Along with other professors, we have used this text in courses for undergraduates,
MBAs, and Executive MBAs, with the students ranging in age from 18 to 55. The book
works, as some unsolicited comments indicate:
• An undergraduate wrote, “This is the best textbook I have had in college, on any
subject.”
• A business law professor stated that the “clarity of presentation is superlative. I have
never seen the complexity of contract law made this readable.”
• An MBA student commented, “I think the textbook is great. The book is relevant,
easy to understand, and interesting.”
• A state supreme court justice wrote that the book is “a valuable blend of rich
scholarship and easy readability. Students and professors should rejoice with this
publication.”
• A Fortune 500 vice president, enrolled in an Executive MBA program, commented,
“I really liked the chapters. They were crisp, organized and current. The information
was easy to understand and enjoyable.”
• An undergraduate wrote, “The textbook is awesome. A lot of the time I read more
than what is assigned—I just don’t want to stop.”

Humor Throughout the text, we use humor—judiciously—to lighten and enlighten. Not
surprisingly, students have applauded—but is wit appropriate? How dare we employ levity
in this venerable discipline? We offer humor because we take the law seriously. We revere
the law for its ancient traditions; its dazzling intricacy; its relentless, though imperfect,
attempt to give order and decency to our world. Because we are confident of our respect
for the law, we are not afraid to employ some levity. Leaden prose masquerading as legal
scholarship does no honor to the field.
Humor also helps retention. Research shows that the funnier or more bizarre the
example, the longer students will remember it. Students are more likely to remember a
contract problem described in a fanciful setting, and from that setting recall the underlying
principle. By contrast, one widget is hard to distinguish from another.

Features
We chose the features for our book with great care. Each one supports an essential
pedagogical goal. Here are some of those goals and the matching feature.

Exam Strategy
GOAL: To help students learn more effectively and to prepare for exams. In preparing this
fifth edition, we asked ourselves: What do students want? The short answer is—a good
grade in the course. How many times a semester does a student ask you, “What can I do to
study for the exam?” We are happy to help them study and earn a good grade because that
means they should also be learning.
About six times per chapter, we stop the action and give students a two-minute quiz. In
the body of the text, again in the end-of-chapter review, and also in the Instructor’s Manual,
we present a typical exam question. Here lies the innovation: We guide the student in
analyzing the issue. We teach the reader—over and over—how to approach a question: to
start with the overarching principle, examine the fine point raised in the question, apply the
analysis that courts use, and deduce the right answer. This skill is second nature to lawyers,
but not to students. Without practice, too many students panic, jumping at a convenient
answer and leaving aside the tools that they have spent the course acquiring. Let’s change
that. Students who have tried the Exam Strategy feature love it.

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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.
xx PREFACE

You Be the Judge


GOAL: Get students to think independently. When reading case opinions, students tend
to accept the court’s “answer.” Judges, of course, try to reach decisions that appear
indisputable, when in reality they may be controversial—or wrong. From time to time we
want students to think through the problem and reach their own answer. Virtually every
chapter contains a You Be the Judge feature, providing the facts of the case and conflicting
appellate arguments. The court’s decision, however, appears only in the Instructor’s Manual.
Because students do not know the result, discussions are more complex and lively.

Ethics
GOAL: Make ethics real. We ask ethical questions about cases, legal issues, and commercial
practices. Is it fair for one party to void a contract by arguing, months after the fact, that
there was no consideration? What is a manager’s ethical obligation when asked to provide a
reference for a former employee? What is wrong with bribery? What is the ethical obligation
of developed nations to dispose of toxic waste from computers? We believe that asking the
questions and encouraging discussion reminds students that ethics is an essential element of
justice and of a satisfying life.

Cases
GOAL: Let the judges speak. Each case begins with a summary of the facts and a statement
of the issue. Next comes a tightly edited version of the decision, in the court’s own
language, so that students “hear” the law developing in the diverse voices of our many
judges. We cite cases using a modified bluebook form. In the principal cases in each
chapter, we provide the state or federal citation, the regional citation, and the LEXIS or
Westlaw citation. We also give students a brief description of the court. Because many of our
cases are so recent, some will have only a regional reporter and a LEXIS or Westlaw citation.

Exam Review
GOAL: Help students to remember and practice! At the end of every chapter, we provide a
list of review points and several additional Exam Strategy exercises in a Question/Strategy/
Result format. We also challenge the students with 15 or more problems—Multiple-Choice,
Essay Questions, and Discussion Questions. The questions include the following:
• You Be the Judge Writing Problem. The students are given appellate arguments on both
sides of the question and must prepare a written opinion.
• Ethics. This question highlights the ethical issues of a dispute and calls upon the
student to formulate a specific, reasoned response.
• CPA Questions. Where relevant, practice tests include questions from previous CPA
exams administered by the American Institute of Certified Public Accountants.
Answers to all the Multiple-Choice questions are available to students online through
www.cengagebrain.com.

Author Transition
Jeffrey Beatty fought an unremitting 10-year battle against a particularly aggressive form of
leukemia which, despite his great courage and determination, he ultimately lost. Jeffrey, a
gentleman to the core, was an immensely kind, funny and thoughtful human being, some-
one who sang and danced, and who earned the respect and affection of colleagues and
students alike. In writing these books, he wanted students to see and understand the impact

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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.
PREFACE xxi

of law in their everyday lives, as well as its role in supporting human dignity, and what’s
more, he wanted students to laugh.
Because of the length of Jeffrey’s illness, we had ample time to develop a transition
plan. Through a combination of new and old methods (social media and personal connec-
tions), we were able to identify a wonderfully talented group of applicants—graduates of
top law schools who had earned myriad teaching and writing prizes. We read two rounds of
blind submissions and met with finalists. In the end, we are thrilled to report that Dean
Bredeson has joined the Beatty/Samuelson team. A member of the faculty of the
McCombs School of Business at the University of Texas, Dean is a devoted teacher
who has received the school’s highest teaching award for the last five years. He is also
the author of the textbook, Applied Business Ethics (Cengage, 2011). Dean has a number of
qualities that are essential to a textbook writer—keen insight into explaining complex
material in an engaging manner, meticulous attention to detail, an ability to meet dead-
lines, and a wry sense of humor.

TEACHING MATERIALS
For more information about any of these ancillaries, contact your Cengage Learning/South-
Western Legal Studies Sales Representative for more details, or visit the Beatty & Samuelson
Legal Environment, 5th edition web page, accessed through www.cengagebrain.com.
Instructor’s Resource CD. The Instructor’s Resource CD (IRCD) contains the
ExamView testing software files, the test bank in Microsoft Word files, the Instructor’s
Manual in Word files, and Microsoft PowerPoint Lecture Review Slides.
Instructor’s Manual. Available both online at and on the IRCD, this manual
includes special features to enhance class discussion and student progress:
• Exam Strategy problems. If your students would like more Exam Strategy problems,
there is an additional section of these problems in the Instructor’s Manual.
• Dialogues. These are a series of questions and answers on pivotal cases and topics.The
questions provide enough material to teach a full session. In a pinch, you could walk
into class with nothing but the manual and use the Dialogues to conduct an exciting
class.
• Action Learning ideas. Interviews, quick research projects, drafting exercises, classroom
activities, commercial analyses, and other suggested assignments get students out of
their chairs and into the diverse settings of business law.
• Skits. Various chapters have lively skits that students can perform in class, with no
rehearsal, to put legal doctrine in a real-life context.
• Succinct introductions. Each chapter has a theme and a quote of the day.
• Current focus. This feature offers updates of text material.
• Additional cases and examples. For those topics that need more attention or coverage,
use the additional cases and examples provided in the Instructor’s Manual.
• Solutions. Answers to You Be the Judge cases from the text and to the Exam Review
questions found at the end of each chapter.

Test Bank. The test bank offers hundreds of essay, short-answer, and multiple-choice
problems and may be obtained online or on the IRCD.

Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). 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.
xxii PREFACE

ExamView Testing Software–Computerized Testing Software. This testing


software contains all of the questions in the test bank. This program is an easy-to-use test
creation software compatible with Microsoft Windows. Instructors can add or edit questions,
instructions, and answers; and select questions by previewing them on the screen, selecting
them randomly, or selecting them by number. Instructors can also create and administer
quizzes online. The ExamView testing software is available only on the IRCD.
PowerPoint Lecture Review Slides. PowerPoint slides are available for instructors
to use with their lectures. Download these slides online or from the IRCD.
CengageNOW. This robust, online course management system gives you more control
in less time and delivers better student outcomes—NOW. CengageNOW for Legal Envir-
onment 5e has been expanded to include six homework types that align with the six levels of
Bloom’s taxonomy: Knowledge: Chapter Review, Comprehension: Business Law Scenarios,
Application: Legal Reasoning, Analysis: IRAC, Synthesis: Exam Strategy, and Evaluation:
Business Wisdom. With all these elements used together, CengageNOW will ensure that
students develop the higher-level thinking skills they need to reach an advanced under-
standing of the material.
Aplia. Engage, prepare, and educate your students with this ideal online learning solu-
tion. Aplia’s™ business law solution ensures that students stay on top of their coursework
with regularly scheduled homework assignments and automatic grading with detailed,
immediate feedback on every question. Interactive teaching tools and content further
increase engagement and understanding. Aplia™ assignments match the language, style,
and structure of Legal Environment 5e, allowing your students to apply what they learn in the
text directly to their homework.
Business Law CourseMate. Cengage Learning’s Business Law CourseMate brings
course concepts to life with interactive learning, study, and exam preparation tools—
including an e-book—that supports the printed textbook. Designed to address a variety of
learning styles, students will have access to flashcards, Learning Objectives, and the Key
Terms for quick reviews. A set of auto-gradable, interactive quizzes will allow students to
instantly gauge their comprehension of the material. For instructors, all quiz scores and
student activity are mapped within Engagement Tracker, a set of intuitive student perfor-
mance analytical tools that help identify at-risk students. An interactive blog helps connect
book concepts to real-world situations happening now.
Business Law Digital Video Library. This dynamic online video library features
over 90 video clips that spark class discussion and clarify core legal principles. The library is
organized into four series:
• Legal Conflicts in Business includes specific modern business and e-commerce
scenarios.
• Ask the Instructor contains straightforward explanations of concepts for student review.
• Drama of the Law features classic business scenarios that spark classroom
participation.
• LawFlix contains clips related to the law from many popular films, including Field of
Dreams, Midnight Run, and Jaws.
• Real World Legal takes students out of the classroom and into real-life situations,
encouraging them to consider the legal aspects of decision making in the business
world.
• Business Ethics in Action challenges students to examine ethical dilemmas in the world
of business.

Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). 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.
PREFACE xxiii

Access to the Business Law Digital Video Library is available as an optional package with
each new student text at no additional charge. Students with used books can purchase
access to the video clips online. For more information about the Business Law Digital Video
Library, visit www.cengagebrain.com.
A Handbook of Basic Law Terms, Blacks Law Dictionary Series. This paper-
back dictionary, prepared by the editor of the popular Black’s Law Dictionary, can be packaged
for a small additional cost with any new South-Western Legal Studies in Business text.
Student Guide to the SOX. This brief overview for business students explains SOX,
what is required of whom, and how it might affect students in their business lives. Available
as an optional package with the text.
Interaction with the Authors. This is our standard: Every professor who adopts this
book must have a superior experience. We are available to help in any way we can. Adopters
of this text often call us or e-mail us to ask questions, obtain a syllabus, offer suggestions,
share pedagogical concerns, or inquire about ancillaries. One of the pleasures of working on
this project has been this link to so many colleagues around the country. We value those
connections, are eager to respond, and would be happy to hear from you.
Susan S. Samuelson
Phone: (617) 353-2033
Email: [email protected]
Dean A. Bredeson
Phone: (512) 471-5248
Email: [email protected]

ACKNOWLEDGMENTS
We appreciate the thoughtful insights of the reviewers for this fifth edition:
Martha Broderick Carol Nielsen
University of Maine Bemidji State University
Burke Christensen Margaret A. Parker
Eastern Kentucky University Owens Community College
Michael Costello Cheryl Staley
University of Missouri, St. Louis Lake Land College
Suzanne M. Gradisher Paulette L. Stenzel
University of Akron Michigan State University
Wendy Hind Kenneth Ray Taurman, Jr.
Doane College Indiana University Southeast
Ronald B. Kowalczyk Deborah Walsh
Elgin Community College Middlesex Community College
Colleen Arnott Less
Johnson & Wales University

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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
no related content on Scribd:
Lane was speaking in answer to some remarks just brought to a
conclusion by the valet with the neat, respectable appearance and
the low, deferential voice.
“And so you think of shifting. Well, it’s no use staying in a place
that doesn’t square with your ideas of comfort.”
“That’s just it, Mr. Cox.” The detective had assumed this name for
the purposes of the temporary friendship. “I knew after the first
fortnight it wouldn’t suit me at all. But I’ve stayed nine months for
reasons. It doesn’t do for a man with my record in good families to
go chopping and changing every five minutes, it gets him a bad
name.”
Lane signified his approval of this politic conduct, and noting that
the valet’s glass was empty, hastened to have it refilled, a
proceeding to which Mr. Simmons offered no objection. With his
shrewd knowledge of men, his habit of drawing conclusions from
small but infallible signs, the detective inclined to the belief that his
new friend was an acquisitive kind of fellow, a man who would take
all he could get and give as little as he could in return.
“Your health, Mr. Cox.” The man lifted his glass and looked
appreciatively at his host, while he gave utterance to further thoughts
of his master.
“I don’t say Sir George isn’t all right in the matter of family,
although of course we know they’ve come down through his old
father playing ducks and drakes with the property. But the truth is, a
poor place doesn’t suit a man at my time of life, forty-five last
birthday. Wages are nothing; it’s the pickings that enable a fellow to
put by and start a snug little place of his own to keep him in his old
age.”
A poor place, an absence of “pickings”! This confirmed the
banker’s report. As a matter of fact, Lane did not want the banker’s
report confirmed, he could rely on it as far as it went. He was on a
much deeper game, and with that object he had sought the society
of Mr. Simmons in the hope of finding him the sort of person who
would help him to play it.
“Now, that’s rather funny,” he said in assumed surprise. “I’ve heard
a good deal about Sir George, one way and another, and I was
always under the impression he was a wealthy man, had come into a
large fortune.”
Mr. Simmons gave a contemptuous sniff. “If he came into a large
fortune, and I think I’ve heard something of that tale myself, it was
before my time. I’ll bet he hasn’t got any of it left now. I tell you what
he does, Mr. Cox, he bluffs a lot, he makes out to most of his
acquaintances that he’s got tons of money, and, of course, several of
them take his word. I’ve heard him putting the pot on often myself
when he didn’t know I was listening.”
An eavesdropper, this quiet, respectable-looking man! If he had
the smaller infirmities, he would be pretty certain to have the bigger
ones. Such was the thought of the shrewd detective.
“But I’ve always heard he bets high, Mr. Simmons.”
The valet, warmed by his potations, gave another sniff of
contempt. “Not he; that’s where he bluffs again. I know it for a fact. I
overheard him one morning put a fiver on a horse over the
telephone; it won at six to one. That same evening, when I was
bringing in the whisky, he told a pal of his right before me he’d laid a
hundred. Of course, he didn’t know I’d heard him in the morning.
That’s how he got the reputation of wealth, by bluffing, gassing and
lying.”
It was clear that Simmons hated his employer with the deadly
rancour of a man deprived of his legitimate “pickings,” for he
proceeded to further disclosures, not at all redounding to Sir
George’s credit.
He emitted a sardonic chuckle. “I overheard a little conversation
between him and that precious nephew of his one day, and I soon
put the pieces together, though I wasn’t in at the beginning of it. It
seems Sir George had changed a cheque for thirty pounds at one of
his clubs, in the expectation of some money coming in the next day.
Well, the money hadn’t come in, and he was in a frightful stew. ‘If I
can’t pay-in the first thing to-morrow morning, I’m done, and I shall
be had up before the Committee. The bank won’t let me overdraw
five pounds; the manager refused me a week ago when I begged the
favour of him.’ That’s your wealthy man. Bah! I’m a poor chap
enough, but I believe I could buy him up if he was for sale.”
Lane shrugged his shoulders. “If you weren’t in the know you’d
hardly credit it, would you, Mr. Simmons?”
“By George, he was in a stew. I remember his words to his
nephew; he almost screamed them; ‘Archie, old boy, you must stand
by me, you must get me that money this afternoon, or it’s all up with
me.’ Queer sort of thing to say, wasn’t it, Mr. Cox.”
“Very queer,” agreed the detective. “Did you hear young Brookes’s
reply? I take it you were listening outside the door.”
“I was,” admitted Mr. Simmons, quite unabashed. It was evident he
was a very curious sort of person, and spent a considerable portion
of his time eavesdropping. “Young Archie was talking extremely low,
and I couldn’t catch very distinctly what he said. But there was a bit
of an argument between the two. I thought I caught the words, ‘it’s so
soon after the other,’ and then Sir George almost screamed out
again, ‘I can’t help that; I tell you it’s got to be done.’”
“An interesting couple,” remarked the supposed Mr. Cox. He was
quite sure now of the kind of man Mr. Simmons was. Should he
approach him at once or cultivate him a little further before he did
so? Being a cautious man and disinclined to do things in a hurry, he
chose the waiting policy. So he asked the valet when he would be
likely to meet him there again, at the same time proffering another
whisky.
“To tell the truth, Mr. Cox, I shall be here for the next three
evenings. A bit of luck has come my way. Sir George is going into
the country to-morrow morning, and won’t be back till Friday. He isn’t
taking me with him, and I don’t know where’s he’s going. No letters
or telegrams are to be forwarded.”
“A bit queer he doesn’t want his valet with him, isn’t it?”
“I think so,” replied Mr. Simmons with a knowing expression. “A
very dark horse is our respected and wealthy baronet! If he’s going
to a swagger country house he takes me fast enough. But it’s not the
first time by half a dozen that he’s sloped off like this by himself. He’s
after something that he doesn’t want anybody else to know about,
you bet. A very queer fish, Mr. Cox.”
So Sir George would be away for a few days; that would just suit
Lane’s plans. He must open the campaign with the not too
scrupulous valet as soon as possible, but not to-night.
“Look out for me to-morrow evening then, Mr. Simmons. I like this
little place, it’s very snug and quiet, and I have very much enjoyed
my chats with you. Good-night. Sure you won’t have another before
you go?” But the acquisitive valet had that delicacy in him that he
declined further hospitality; he had already done himself very well at
his companion’s expense, and was perhaps fearful of trespassing
too greatly on his good nature.
The next evening they were again in their quiet corner, and Lane
opened the ball a few minutes after they had exchanged greetings.
“Now, Mr. Simmons, I am going to be quite frank with you. I didn’t
come here by accident. I got to know—it doesn’t matter how—that
you were Sir George’s valet, that you frequented this place. If you
are so inclined, you are just the man to give me help in a little job I’m
after. I’m a detective by profession; here is my card with my name
and address. If you have any doubts about the truth of my assertion,
I will take you down to Shaftesbury Avenue now and convince you by
ocular proof.”
Mr. Simmons scrutinized the card carefully; he was a shrewd and
wary fellow, and not one to be easily taken in.
“To tell you the truth, Mr. Cox, or rather Mr. Lane, to give you your
true name, I had a sort of suspicion all along that you were a ’tec and
wanted something out of me. I’ve never seen you in this place
before, and you’ve given me a lot of drinks and wouldn’t take one
back. Now, sir, if I may speak without offence, a man who meets a
stranger doesn’t do all the paying without a motive. Well, sir, let’s
come to business. What can I do for you—of course, with safety to
myself, and if I do it, what do I get out of it?”
A business-like fellow, a bit of a rogue, in a noncriminal way no
doubt! But it was always easier to deal with a rogue than a fool in
matters of this kind. There would be no beating about the bush.
Lane briefly explained what he wanted. He wished to examine Sir
George’s pass-book; if that was not available, his paying-in slips. Did
the valet know where he kept them?
Yes, Mr. Simmons did know. Sir George was in the habit of getting
his book every month from the bank, and after examining it, returning
it in about three weeks to be made up for the following month. He
kept it with his cheque-book and the paying-in slips in one of the top
drawers of his writing-table. Sometimes the drawer was locked, more
frequently not, for in some matters where the vast majority of men
were cautious, the mysterious baronet was singularly careless. At
the present moment Mr. Simmons did not know whether it was
locked or not, but it would probably be locked before he went away.
“That doesn’t present much difficulty,” said Lane with a calmness
that took away his companion’s breath. “If it is not a very complicated
lock, and it’s not likely to be if the writing-table is an ordinary sort of
one; I can easily pick it.”
Mr. Simmons pursed his lips in perplexity. “But that’s burglary, isn’t
it, and spells quod if were caught?”
The detective smiled. “’Pon my soul, I’m not very sure. We have to
do this sort of thing sometimes, but we don’t run any very great risk,
because the people we do it to have so much to conceal that they
daren’t take action. I’m not proposing to take away anything, you
know.”
But Mr. Simmons evidently did not like the prospect. He was
perfectly unscrupulous in a small way, would not have objected to
certain petty pilferings sanctioned by custom and tradition amongst
certain members of his profession. One of his grievances against the
baronet was that he counted his cigars and his bottles of wine; there
was never a chance of getting a free smoke or drink.
But this looked a bigger thing than he expected. He thought very
deeply for a few seconds, while Lane cursed him in his heart for a
faint-hearted rogue, who let his inclination wait upon his fears.
“Look here,” he said at length. “We haven’t said anything yet about
terms. If I do it—and mind you, I’m not very gone on it—what’s the
price? It ought to be a good one.”
Lane named a liberal sum, and, truth to tell, it did make the valet’s
mouth water, but he was a greedy fellow, and he was determined to
try for a bit more. So for a few minutes they haggled till a
compromise was effected. But still Simmons was torn in two
between his greed and his fear of detection and would not say
positively that he would assist.
The detective was a man of resource, he saw that he must adopt
different tactics with this cowardly rogue and relieve him from his
apprehensions.
“Look here, my friend, I can see you are in a blue funk; you are
afraid of what I am certain won’t happen, that Sir George will return
unexpectedly, walk into his flat and find me at work. Of course, he
has got his key.”
Mr. Simmons wanted to get that money in his possession, and his
greed sharpened his wits.
“Yes, he has got his key; he always carries it with him. But I could
put the inside latch up, making some plausible excuse for doing so,
and while I was going to the door you could put things straight and
escape into my room, hide there and be smuggled out as soon as
we got a chance. What do you think of that?”
“Quite ingenious,” was the approving answer. No doubt the fellow
would have developed a very pretty talent in the domain of
“crookdom” if he had been properly trained by a qualified professor.
“Quite ingenious,” repeated Lane; “but I think I can manage it in a
way that will avert any danger from yourself if accidents should
happen. Now here is my plan. I will explain it as briefly as possible.
You won’t appear in the matter at all.”
Mr. Simmons heaved a sigh of relief. He looked at his new friend
with an air of admiration; he felt he was in the presence of a master
mind.
The detective lucidly explained his scheme. “You meet me at the
bottom of the street to-morrow evening at seven o’clock, and hand
me the key of the flat. You come on here, I join you in five minutes;
we have met here as usual for a chat. I’m in a hurry; I stay with you a
quarter of an hour, then hasten off on the plea of having to attend to
some urgent business. I go on to the flat, take care that nobody is
about, put the key in the door, enter Sir George’s room and do my
business. You will sit here for an hour with your pals, then you will
leave and meet me, say, in the buffet of Victoria Station, when I will
hand you back your key.”
“It sounds all right,” said Mr. Simmons, still speaking dubiously.
“But what happens if Sir George ‘cops’ you, and you can’t meet me
at Victoria?”
“I’m coming to that, although there’s not the smallest probability
that Sir George will ‘cop’ me. If he does, I think I shall have to say
something to him that will prevent him from giving me in charge. But
whatever happens, all that can be proved against you is indiscretion
—mind you, rather unpardonable in a man of your years, but still
only indiscretion. So you tumble to it now?”
“I think I’m getting an inkling; but you might explain it fully. You are
a clever chap, and you make things seem so clear.”
“You met a very plausible stranger in a certain pub. Give the name
to show good faith. Your friends can prove they have seen us talking
together. You got rather pals; he stood you a lot of drinks. On this
particular evening he gave you a little too much, perhaps put
something in it to make you stupid, and while you were losing your
wits, picked your pocket of the key and rushed round to the flat,
leaving you to recover yourself. So remember, after I leave you to-
morrow evening, to be a little foolish in your manner for half an hour
or so.”
“Excellent,” cried Mr. Simmons in genuine admiration. “By jingo,
you are a knock-out; you think of everything. To-morrow evening, just
at the bottom of the street; afterwards here. Now, what do you think
of something on account—say a ‘tenner.’”
“I don’t mind a ‘fiver,’” was Lane’s answer; he was not disposed to
trust the valet too much. If he got as much as ten pounds safely into
his hands he might back out at the last moment and leave the
detective in the lurch. “I won’t give it you before all these people; you
never know who’s looking. We’ll leave here in about half an hour,
and I’ll hand it over when we’re safe out of the street.”
About eleven o’clock the next morning he received a further
surprise in connection with this most puzzling case. A note was sent
round to him from Mr. Morrice:
“Dear Sir,—Another development! On opening my safe
this morning I found that the packet of papers abstracted
in the first robbery has been put back, also the bundle of
Swiss notes. I suppose the thief found they were of no use
to him and obligingly returned them. Come round as soon
as you can. I shall be in all day.
“Yours faithfully,
“Rupert Morrice.”
CHAPTER XIII
AUNT AND “NEPHEW”!

T HERE was not very much to discuss when Lane did get to
Deanery Street. Certain inexplicable things had happened for
which, at present, there seemed no accounting. Somebody seemed
to be doing what he liked with this wonderful safe, abstracting and
replacing property when he chose, without hindrance, in a house full
of people. One novel feature on this occasion was the total absence
of finger-prints. They had been carefully rubbed out.
Morrice seemed greatly perturbed, as was quite natural under the
circumstances; but Lane noticed that there was a considerable
difference in his demeanour on this occasion from the last, when he
had insisted, with some display of temper, upon the certainty of
Croxton’s guilt.
Lane had been a little nettled at the time—at the cocksure attitude
of this hard-headed man of business who, however great his
success in his own particular line, did not seem to possess a very
great logical faculty, and could not forbear putting a rather pertinent
question.
“Are you quite as sure as you were, Mr. Morrice, that your late
secretary is the thief?”
Morrice shrugged his shoulders. It was easy to see that he was in
a subdued mood; there was no fear of further explosions to-day. “I
admit there are complications in this infernal business that perplex
one extremely. But I don’t think that, so far, I can see any particular
reasons for altering my previous opinion. You can’t get over the
insurmountable fact that Croxton and myself were the only two
persons who knew the secret of the mechanism. He may not be the
actual purloiner, I admit; he may have passed on his knowledge to a
confederate with whom he shares the spoil.”
Lane let fall only a few words in answer to these observations, but
they were very significant ones.
“Don’t forget, Mr. Morrice, that you lost the original key or
memorandum, as you call it, of the workings.”
But the financier was an obstinate person, as many strong-minded
men are. When he had once formed a theory, he did not give it up in
a hurry.
“Only mislaid, I expect,” he answered, but it was easy to see his
tone was not quite so confident as usual. “I shouldn’t be surprised if
it turned up at any moment.”
But Lane hastened to put on a damper at once. “And if it did, I
don’t see that it would help you so very much. You couldn’t possibly
know in what other hands it might have been during the interval.”
The financier had no wish to engage in further argument with this
calm, self-possessed man, whose merciless logic made such short
work of anything in the nature of a positive opinion.
“It doesn’t seem to matter much what I think,” he cried with a slight
return of his old petulance. “And perhaps it would be wiser to admit
at once that I don’t possess your capacity for weighing facts and
drawing deductions from them. I should like to know one thing, Mr.
Lane—does what has just happened convey any new suggestions to
you, throw any fresh light upon the situation?”
He did not gauge the detective as accurately as one might have
expected from a man with his wide knowledge of human nature, or
he would never have put this question in the hope of getting a
satisfactory answer. Whatever theory or theories might be forming in
his mind, and there could be no doubt that it was working at full-
speed all the time, and readjusting itself to every fresh turn of events,
Lane would make no disclosures till he judged the time was ripe.
He shook his head with great gravity: “We work very slowly, Mr.
Morrice; we come to conclusions with equal slowness, in our
profession. I dare say to a keen business man like yourself who plan
your coups with lightning rapidity, make and clinch a deal of many
thousands in a few minutes, we must seem dull, plodding fellows.
But you must remember that most of our time we are working
underground where very little light penetrates. What has happened
to-day may suggest a new line of thought to me, but I have not yet
had time to digest its significance. It will want a great deal of patient
thinking over before it bears any fruit.”
With this the rather impatient financier had to be content. He was
beginning to have a certain respect for the firm, self-reliant attitude of
the detective, who did not appear to be in the least overawed by
Morrice’s wealth and position. And he had a shrewd idea that, in his
own particular and less remunerative line, Lane had a brain not
greatly inferior to his own. They worked in different directions with a
vast disproportion between the rewards attending their efforts.
Morrice had the instinct of moneymaking, Lane the instinct of
unravelling criminal mysteries. Perhaps in the bare fact of intellectual
equipment there was not much to choose between them.
As the detective passed through the hall on his way out, he found
Rosabelle waiting for him. She was of course cognizant of what had
happened, and on Lane’s arrival her first idea had been to be
present at the interview between him and her uncle. But on second
thoughts she had decided to speak to the detective alone.
She still loved her uncle very dearly; she must always do that for
all the kindness and affection he had lavished on her. But it was
impossible there should not be a little secret antagonism between
the two in the circumstances. He appeared to be firmly convinced of
Richard Croxton’s guilt, she as firmly convinced of his innocence.
She was a fair-minded girl, and she was prepared to make every
allowance for Morrice’s attitude, but as there did not seem any
common ground on which they could meet when the matter was
under discussion, she judged it best to speak of it to him as little as
possible.
She put to him practically the same question that her uncle had
done: “Well, Mr. Lane, what do you think of the new development?
Does it reveal anything to you?”
That wary and cautious person shook his head. He had taken a
great liking to Rosabelle. Her staunch devotion to her lover had
appealed to the finer chords of his nature; for although he never
allowed sentiment to sway him unduly, he was by no means destitute
of that human quality. But not even for Rosabelle’s sake would he
depart greatly from that cautious attitude which was habitual to him.
“It is a strange development, Miss Sheldon, but I have not yet had
time to think it over. I am going back to my office to do so, and the
thinking over will take some time.”
Her charming face fell. “You cannot see in it even the remotest
thing that tells in favour of Richard Croxton?”
The eyes were very sad, the voice was very pleading. Should he
give the unhappy girl one little crumb of comfort? For a little time he
hesitated, then compassion got the better of prudence and of his iron
reserve.
“I will just say this, Miss Sheldon, and no more. It is becoming a
less impossible task to clear him than I at first thought; but please
don’t be too jubilant—there are still very formidable difficulties in the
way.”
A radiant light came into the charming face, although her eyes
filled with tears and she clasped her hands nervously together. Her
voice trembled as she spoke.
“You have put new life into me with those words, Mr. Lane. I know
you quite well by now, and I am sure that, coming from you, they
mean much.”
Poor Lane began to think he had made a bit of a mistake in
departing from his usual caution, in being moved by the pleading
attitude of the girl into giving her this small crumb of comfort. That
was the worst of women—they were so impressionable and
optimistic, or pessimistic, as the case might be. Their moods were
never equable: they were either at the height of elation or in the
depth of despair.
“Please do not let me excite false hopes, Miss Sheldon,” he
hastened to say. “Remember, I have told you there are great
difficulties in the way. Until we are on much firmer ground I would
beg that you do not repeat my words to Mr. Croxton.”
But she did not give any answer to this request, and he knew that
for all practical purposes he might have held his peace. Of course,
she would post off to her lover as soon as she could get away, and
infect him with her own optimism. Well, he was loath to confide too
much in the most hard-headed and sceptical man; he had only
himself to blame for having been over-confidential with a member of
the emotional sex.
Later on in the day Rosabelle carried out his prediction; she made
up her mind to pay a visit to Petersham, to hearten her lover with a
recital of those words which she was convinced meant so much,
coming from a man of Lane’s cautious temperament.
Morrice had left the house shortly after the detective’s departure.
The two women would have lunched alone together but for the
unexpected arrival of young Archie Brookes, who was pressed to
stay for the meal.
Rosabelle was very sensitive to impressions, and, for so young a
girl, particularly observant. It struck her that during the progress of
the luncheon the young man seemed rather distrait and preoccupied.
Two or three times he answered at random, and once Mrs. Morrice
called out to him sharply, “I don’t think you are listening to what I am
saying, Archie.” At that rebuke he seemed to pull himself together,
but the girl was sure his thoughts were far away from her aunt’s light
chatter.
Presently aunt and nephew, to call him what Rosabelle, ignorant of
Lane’s discoveries, still believed him to be, went up to Mrs. Morrice’s
boudoir. There was nothing unusual in this; it was a frequent custom
when the young man called or lunched at the house.
Rosabelle thought she would start for Petersham at once, making
her journey there as usual in a taxi. She always had plenty of money
for her needs, as Morrice supplemented her own little modest
income of a hundred a year with a very generous allowance.
As she went upstairs to her own room to make ready for her
expedition, she passed her aunt’s boudoir, the door of which stood
slightly ajar. It was a rather unusual circumstance, for when the two
were closeted together Rosabelle had noticed that it was nearly
always closed. This time it had evidently been forgotten by both.
She was not a girl who in ordinary circumstances would have
condescended to listen at doors, but she could not help hearing
words that startled and puzzled her.
Archie was speaking in a voice of great excitement and emotion.
“But if I don’t have it I am ruined. It means that I cannot face the
disgrace—there is only one alternative——” His voice had by now
sunk almost to a whisper, and she could not catch what followed.
She stood rooted to the spot. The young man’s preoccupied
manner at the lunch-table was accounted for. He was in some deep
trouble from which he was begging Mrs. Morrice to rescue him.
She heard her aunt reply in tones that were half angry, half tearful.
“How many times have you threatened me with that, and I have
yielded. I have half ruined myself for you; it cannot go on much
longer.”
Suddenly she felt that she was listening to a conversation not
intended for her ears, and resolutely turned away and went to her
own room. For the present she would say nothing, not even to Dick,
of what she had heard by the purest accident. But she thought over it
all the way on the long drive to Petersham. Was there yet another
tragedy going on in the Morrice household, and was her placid-
looking, dignified aunt the centre of it?
And what was that alternative which Archie Brookes had described
in a whisper she could not catch? Had he threatened to destroy
himself if his request were not acceded to? And what did Mrs.
Morrice mean by saying she had half ruined herself for him?
CHAPTER XIV
AN ALARMING INTERRUPTION

P UNCTUALLY at five o’clock on the appointed evening Lane and


Simmons met. On the face of the valet was a triumphant
expression.
“We needn’t try this new scheme of yours, Mr. Cox—Mr. Lane, I
should say. I’ll come back to the flat with you; it’s all plain sailing. The
drawer is unlocked. The bank-book isn’t there, and he’s taken the
cheque-book with him; but he’s left the paying-in slips all right. You
said these would do.”
Not by any means for the first time was Gideon Lane impressed by
the inconsistencies of the human temperament. Here was a shrewd,
clever man like Sir George Clayton-Brookes, one who counted his
cigars and wine-bottles to prevent his valet helping himself to a
surreptitious smoke or drink! Surely he would be equally meticulous
in other and more important matters. And yet, he had gone away
leaving that drawer unlocked, its contents open to the prying eyes of
Simmons.
The detective himself would never have done such a thing, and he
was quite sure he had less to conceal than this mysterious baronet
who passed himself off as a wealthy man, while all the evidence that
had been gathered pointed to the contrary. Perhaps Sir George, like
many other persons of considerable mentality—for there was little
doubt that he had brains of a certain order—entertained a great
contempt for the intelligence of his inferiors, and thought that if
Simmons did pry about in his absence he would not be much the
wiser for his researches.
The baronet resided on the first floor of a block of service flats in
the Victoria direction, finding this mode of living very suitable to him.
Simmons slept out, coming early in the morning and leaving at all
sorts of times dependent upon his master’s convenience. In the
course of his communications to Lane, the detective had gathered
that, in many respects, it was a very easy place. Sir George did a
great deal for himself, so that the valet’s duties were not onerous,
and he had a lot of spare time. If his master went out for the evening,
and this happened on most evenings of the week, Simmons was
never required to await his return. His meals he occasionally took in
the restaurant attached to the flats, but more frequently he lunched
and dined at his clubs or the private houses of his acquaintances.
Breakfast, a Continental one of coffee and rolls, was served in his
own apartments.
“As a matter of fact, he doesn’t want a valet at all,” was Simmons’s
rather contemptuous comment on his master’s habits. “And if he
consulted his own inclinations, I don’t believe he would keep one, for
he’s that dirt mean that I know he begrudges me my wages every
time he pays me. What can you expect of a man who sells all his old
clothes to a second-hand dealer? Not a waistcoat or a pair of old
boots have I had since I was in his service. He’s obliged to keep one
to carry out his policy of ‘swank.’ He knows his friends would think it
deuced queer for one in his position to be without a man.”
It formed a handsome suite of apartments, with its two elegantly
furnished sitting-rooms, large airy bedroom and capacious bathroom.
Still, one would only put it down as the abode of a man comfortably
well-off, not one supposed to be actually wealthy.
“Here we are!” exclaimed Mr. Simmons, as he ushered the
detective into the smaller of the two sitting-rooms, which was used
as a smoking-room and study in which the owner wrote his letters
and attended to his business, whatever it was.
“And here’s the writing-table, and that top one on the left is the
drawer in which you want to look. I’m glad it’s turned out like this, Mr.
Lane; I feel a good bit easier in my mind. Nobody can call this
burglary, eh? No harm in taking a peep at things that be under your
hand, is there?”
By which it will be seen that Mr. Simmons, though perhaps not a
high authority on morals, had certain well-defined ethics of his own.
It was not stealing to abstract a cigar from the store of a master who
did not resort to the discreditable meanness of putting out a dozen in
a box at a time so that he would easily miss one; it was not wrong to
help yourself as often as you could to a glass of good wine; it was
not against the moral code to listen outside doors, or to read letters
and papers to which you could procure easy access through your
employer’s carelessness. But in some matters the valet was a purist,
more, it is to be feared, from terror of the legal consequences than
from the revolt of a tender conscience. He did draw the line at
picking locks or steaming open a letter.
Growing quite daring in his comfortable belief that they were
engaged in a comparatively innocent operation, he pulled the drawer
open with his own hands and pointed to the pale-coloured little book
which contained the paying-in slips.
“There it is; goes back for two months. Is that enough for you? I
hope so, for I don’t know where he puts the old ones; locks them up
in his safe, I expect.”
Lane intimated it would be quite sufficient for his purposes, and
got to work at once. He took careful notice of the exact position of
the little book which was lying at a slight angle on the top of a pile of
papers, so that he could replace it in the same position. Sir George,
careless as he appeared to be in some matters, might have a good
memory in certain things, and might notice on his return that the
contents of the drawer had been disturbed. Still, that did not matter
very much if he did suspect; his suspicions would naturally fall upon
Simmons as the guilty party, and, truth to tell, the detective was not
very much concerned about that individual. He had proved a useful
and adaptable instrument, but Lane could not help despising him for
a smooth-faced hypocrite and venal rogue.
It cannot be said that he enjoyed the situation very much himself.
He had taken this course because he could think of no other which
would serve his ends, and one has often to resort to dirty means in a
good cause. But even if Sir George was the scoundrel he was
beginning to believe him to be, the action he was now taking
savoured just a little too much of hitting below the belt to square with
his stolid English notions of fair play. If it had been possible he would
have preferred to come out more in the open. Still, all is fair in war;
he had comforted himself with that reflection many times in the
course of his active career.
It was not a very long task, for there seemed to be but few
payments, and those mostly for small sums. The name of Willis
occurred frequently in the margin of the counterfoils, evidently this
was the person who had paid the amounts to Sir George.
“Do you know anything of a man named Willis?” asked Lane of the
valet who was watching his proceedings with great interest. He was
a very curious fellow, and he would dearly have liked to know the
particular object of the present researches.
“Yes, that’s his bookmaker,” was the answer of Simmons.
Mr. Willis’s cheques were for trifling sums which seemed to prove
that the baronet did not bet so high as was generally supposed, as
he pretended to his friends, according to the valet’s account. But, of
course, it was not proof positive. Like most men who follow racing,
he would win one day and lose the next, so that at the end of the
week there might be a very trifling balance against him or in his
favour.
What, of course, Lane was looking for was an entry a little
subsequent to the first big burglary, when the diamonds and the big
bundle of foreign notes had been stolen. There was certainly the
biggest entry he had seen in the book about a week after the actual
date of the robbery, and against it was marked the word “cash.” But it
was only for seventy-five pounds.
Now the diamonds alone, according to Lane’s information, had
cost Mr. Morrice no less than eight thousand pounds, as the stones
were big ones, perfect in matching and colour. Granted that they had
been realized by the thief or thieves at a tremendous depreciation,
they should at least have brought in a fourth of that sum. It was
hardly possible that Sir George, even if he were a member of a gang
who shared the spoil, would engage in such a dangerous operation
for the sake of the paltry sum of seventy-five pounds.
Including that item the total payings-in for the two months were a
little over four hundred pounds. Assuming that this was a fair
average, the baronet’s income would be only slightly more than two
thousand a year. It was a small amount for a man who went about in
good society, and according to Simmons, spent about five hundred a
year at least on his clothes, and entertained his friends lavishly to
lunches and dinners at the most expensive restaurants.
“That’s what riles me about him,” observed the valet when he had
answered Lane’s direct questions on these points. “A month ago he
bought a new car that must have cost him every penny of a
thousand pounds. He thinks nothing of paying fifty pounds for a
dinner to his pals, I know that from one or two waiters who are
friends of mine. And yet he’s so devilish mean in some things, he
sells his old clothes, he begrudges me a cigar or a glass of wine, and
while he’s blueing all this money, his bank won’t let him overdraw five
pounds, according to his own statement which I overheard him make
to his nephew.”
“On the evidence of this book, one would say he was,
comparatively speaking, a poor man, that is to say a poor man for
his position,” said the detective in a musing tone, as he restored the
little pale-coloured book to its original position, and shut the drawer.
“And yet he spends any amount of money on clothes and
entertaining, and can plank down a thousand pounds for a new car.
You said yourself he was a poor man, pretending to be rich.”
“He seems to be wealthy one day and hard-up the next, now one
comes to go into it a bit closer,” remarked Mr. Simmons. “I expect I
was guided a bit too much to my opinion by the fact of his being in
such a blue funk about that cheque he had changed at the club.”
“That little book is a blind, Simmons; no wonder he is careless
about that drawer; he knows that whatever you can see there will not
disclose the true state of his affairs. And you say he bought that car
about a month ago.”
“Of course, he may owe for it, for anything we know to the
contrary,” was the valet’s comment, “only just paid a bit down and is
trying to raise the wind somewhere now. Perhaps that’s the object of
his present journey.”
The detective was thinking deeply, it was a puzzling situation. He
had been in hopes that he might have got some absolute results
from his visit to Sir George’s flat and the inspection of his paying-in
book. The outcome was quite negative. The one suspicious thing
was the purchase of that car, and as Simmons had truly remarked, it
might have been bought on credit. Still, supposing it had been, Sir
George must have expected to lay his hands upon a thousand
pounds pretty soon.
The drawer contained nothing to help him. He cast his eyes
longingly at the safe which stood in the corner of the room, a big
one, made by one of the best-known makers in London. He would
very much have liked to have a peep into that safe, it might have
yielded up some secrets. But he was not an expert safe-breaker like
Mr. “Tubby” Thomas now languishing in Dartmoor, or the hitherto
undiscovered thief who had practised his art in the big, old-fashioned
house in Deanery Street.
He lost himself in speculation for some little time, almost oblivious
of the valet’s presence. That gentleman thought it time that attention
should be paid to his own immediate affairs, and coughed gently to
raise Lane from his reverie.
“Haven’t you found what you wanted?” he asked, with an anxious
look in his cunning little eyes.
“To tell the truth, I haven’t. For all practical purposes I might as
well not have taken on the job.”
The anxious look grew more intense. Mr. Simmons had small faith
in his fellow-men. Perhaps the detective might try to get out of his
bargain, if not altogether, to a very considerable extent.
He spoke in an ingratiating tone. “Not my fault, is it? I’ve done all
you wanted, haven’t I?”
“Oh, certainly, there is no blame attached to you.” Lane
understood what he was driving at and extracted from a letter-case
several five-pound notes, the balance of the sum which he had

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