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iv Brief Contents
APPENDICES
A How to Brief Cases and Analyze Case Problems A–l
B The Constitution of the United States A–5
C Articles 2 and 2A of the Uniform Commercial Code A–13
D The Sarbanes-Oxley Act (Excerpts and Explanatory Comments) A–53
E Answers to the Issue Spotters A–61
F Sample Answers for Business Case Problems with Sample Answer A–67
GLOSSARY G–l
TABLE OF CASES TC–1
INDEX I–1
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Contents
Unit One Case Analysis Case 3.3 Lhotka

The Foundations 1 v. Geographic Expeditions, Inc. (2010) 68
The Integration of ADR and
Formal Court Procedures 72
Chapter 1 ADR Forums and Services 73
Law and Legal Reasoning 2 International Dispute Resolution 74
Business Activities and the Legal Environment 2
Sources of American Law 3
The Common Law Tradition 6 Chapter 4
Schools of Legal Thought 11 Business Ethics 78
Classifications of Law 12 Business Ethics 78
How to Find Primary Sources of Law 13 Case 4.1 Johnson Construction Co.
How to Read and Understand Case Law 15 v. Shaffer (2012) 80
Case 4.2 May v. Chrysler Group, LLC (2012) 82
Business Ethics and Social Media 83
Chapter 2 Ethical Principles and Philosophies 84
The Court System 28 Making Ethical Business Decisions 87
The Judiciary’s Role in American Government 28 Case Analysis Case 4.3 Moseley v.
Basic Judicial Requirements 29 Pepco Energy Services, Inc. (2011) 88
Case Analysis Case 2.1 Mala v. Crown Bay Global Business Ethics 90
Marina, Inc. (2013) 31 Unit One Focus on Ethics: Ethics and the Legal
Spotlight on Gucci Environment of Business 96
Case 2.2 Gucci America, Inc. v.
Wang Huoqing (2011) 35
Unit Two
The State and Federal Court Systems 37
Judicial Procedures: Following a Case through the
The Public and International
Courts 41
Environment 99
Case 2.3 Espresso Disposition Corp. 1 v. Santana
Sales & Marketing Group, Inc. (2013) 47 Chapter 5
Business and the Constitution 100
Chapter 3 The Constitutional Powers of Government 100
Case Analysis Case 5.1 Family Winemakers of
Alternative and
California v. Jenkins (2010) 103
Online Dispute Resolution 60 Business and the Bill of Rights 105
Negotiation and Mediation 60 Case 5.2 Doe v. Prosecutor, Marion County,
Arbitration 62 Indiana (2013) 108
Case 3.1 Cleveland Construction, Inc. Spotlight on Beer Labels
v. Levco Construction, Inc. (2012)  63 Case 5.3 Bad Frog Brewery, Inc. v.
Case 3.2 NCR Corp. v. Korala Associates, Ltd. New York State Liquor Authority (1998) 110
(2008) 66 Due Process and Equal Protection 114
Privacy Rights 116
vi Contents
Chapter 6 Unit Two Focus on Ethics:

Administrative Agencies 121 Ethics and the Public and
International Environment 184
The Practical Significance of Administrative Law 121
Agency Creation and Powers 122
The Administrative Procedure Act 125 Unit Three
Case Analysis Case 6.1 Federal Communications the Commercial
Commission v. Fox Television Stations, Inc. Environment 187
(2009) 126
Judicial Deference to Agency Decisions 129
Chapter 9
Case 6.2 Mayo Foundation for Medical Education
and Research v. United States (2011) 130
Formation of Traditional
Enforcement and Adjudication 132 and E-Contracts 188
Case 6.3 Craker v. Drug Enforcement An Overview of Contract Law 188
Administration (2013) 134 Case 9.1 Pan Handle Realty, LLC
Public Accountability 136 v. Olins (2013) 189
Types of Contracts 191
Agreement 195
Chapter 7 Spotlight on A mazon.com
Criminal Law and Cyber Crime 140 Case 9.2 Basis Technology Corp.
v. Amazon.com, Inc. (2008) 197
Civil Law and Criminal Law 140 E-Contracts 203
Criminal Liability 142 Consideration 207
Types of Crimes 144 Case 9.3 Baugh v. Columbia Heart Clinic, P.A.
Case Analysis Case 7.1 People (2013) 209
v. Whitmer (2013) 146 Contractual Capacity 210
Defenses to Criminal Liability 150 Legality 211
Criminal Procedures 153 Form: The Writing Requirement
Case 7.2 Messerschmidt v. Millender (2012) 154 and Electronic Records 214
Classic Case 7.3 Miranda v. Arizona (1966) 155 Third Party Rights 214
Cyber Crime 158
C h a p t e r 10
Chapter 8
Contract Performance,
International Law
Breach, and Remedies 219
in a Global Economy 166
Voluntary Consent 219
International Law 166 Performance and Discharge 223
Case Analysis Case 8.1 Linde Classic Case 10.1 Jacob & Youngs v.
v. Arab Bank, PLC (2013) 170 Kent (1921) 224
Doing Business Internationally 172 Case Analysis Case 10.2 Kohel v.
Regulation of Specific Business Activities 173 Bergen Auto Enterprises, L.L.C. (2013) 226
International Dispute Resolution 176 Damages for Breach of Contract 230
Case 8.2 S & T Oil Equipment & Machinery, Ltd. Case 10.3 Hallmark Cards, Inc.
v. Juridica Investments, Ltd. (2012) 176 v. Murley (2013) 231
U.S. Laws in a Global Context 178 Equitable Remedies 235
Spotlight on International Torts
Waiver of Breach 237
Case 8.3 Kiobel v.
Contract Provisions Limiting Remedies 237
Royal Dutch Petroleum Co. (2013) 179
Appendix to Chapter 10:
Reading and Analyzing Contracts 242
Contents vii
C h a p t e r 11 C h a p t e r 14
Sales and Lease Contracts 248 Intellectual Property Rights 320
The Scope of Articles 2 (Sales) and 2A (Leases) 248 Trademarks and Related Property 320
The Formation of Sales and Lease Contracts 251 Classic Case 14.1 The Coca-Cola Co.
Case 11.1 WPS, Inc. v. The Koke Co. of America (1920) 320
v. Expro Americas, LLC (2012) 254 Patents 325
Title and Risk of Loss 258 Copyrights 328
Case Analysis Case 11.2 Person v. Case Analysis Case 14.2 Winstead
Bowman (2013) 259 v. Jackson (2013) 329
Performance of Sales and Lease Contracts 263 Trade Secrets 333
Remedies for Breach of Sales and Lease Contracts 266 International Protection for Intellectual Property 334
Spotlight on Baseball Cards Case 14.3 Golan v. Holder (2012) 335
Case 11.3 Fitl v. Strek (2005) 269
Sales and Lease Warranties 271
Contracts for the International Sale of Goods 273 C h a p t e r 15
Appendix to Chapter 11: An Example of a Contract for Internet Law,
the International Sale of Coffee 278
Social Media, and Privacy 341
Internet Law 341
C h a p t e r 12 Spotlight on Internet Porn
Torts 282 Case 15.1 Hasbro, Inc. v. Internet
Entertainment Group, Ltd. (1996) 344
The Basis of Tort Law 282 Copyrights in Digital Information 345
Intentional Torts against Persons 284 Case 15.2 Maverick Recording Co.
Case Analysis Case 12.1 McKee v. Harper (2010) 347
v. Laurion (2013) 287 Social Media 348
Business Torts 291 Case Analysis Case 15.3 In re O’Brien (2013) 349
Intentional Torts against Property 292 Online Defamation 352
Unintentional Torts (Negligence) 294 Privacy 353
Classic Case 12.2 Palsgraf
v. Long Island Railroad Co. (1928) 297
Defenses to Negligence 299 C h a p t e r 16
Spotlight on the Seattle Mariners Creditor-Debtor Relations
Case 12.3 Taylor v. Baseball Club of Seattle,
LP (2006) 299 and Bankruptcy 358
Laws Assisting Creditors 358
Mortgages 360
C h a p t e r 13 Case 16.1 McLean v.
Strict Liability and Product Liability 305 JPMorgan Chase Bank, N.A. (2012) 362
Suretyship and Guaranty 364
Strict Liability 305
Spotlight on Personal Guaranties
Product Liability 306 Case 16.2 Wilson Court Limited Partnership
Strict Product Liability 307 v. Tony Maroni’s, Inc. (1998) 365
Spotlight on Injuries from Vaccines Protection for Debtors 367
Case 13.1 Bruesewitz v. Wyeth, LLC (2011) 307
Bankruptcy Law 368
Case Analysis Case 13.2 Wilson Sporting Goods
Liquidation Proceedings 369
Co. v. Hickox (2013) 310
Reorganizations 378
Case 13.3 Johnson v. Medtronic, Inc. (2012) 312
Bankruptcy Relief under Chapter 13
Defenses to Product Liability 315
and Chapter 12 380
viii Contents
Case Analysis Case 16.3 In re Welsh (2013) 381 Major Business Forms Compared 457
Unit Three Focus on Ethics: Ethics and the Unit Four Focus on Ethics:
Commercial Environment 388 Ethics and the Business Environment 463
Unit Four Unit Five

the Business Environment 393 The Employment
Environment 465
C h a p t e r 17
Small Business Organizations 394 Chapter 20
Sole Proprietorships 394 Agency 466
Case 17.1 Quality Car & Truck Leasing, Inc. Agency Relationships 466
v. Sark (2013) 395 Case 20.1 Coker v. Pershad (2013) 468
Partnerships 396 Formation of the Agency Relationship 470
Case Analysis Case 17.2 Estate of Webster Duties of Agents and Principals 472
v. Thomas (2013) 405 Scope of Agent’s Authority 474
Franchises 406 Spotlight on Apparent Authority
Spotlight on Holiday Inns Case 20.2 Lundberg v. Church Farm, Inc.
Case 17.3 Holiday Inn Franchising, Inc. (1986) 476
v. Hotel Associates, Inc. (2011) 411 Liability for Contracts 478
Liability for Torts and Crimes 480
Case Analysis Case 20.3 Auer
C h a p t e r 18 v. Paliath (2013) 482
Limited Liability Business Forms 416 Termination of an Agency 484
The Limited Liability Company 416

Case Analysis Case 18.1 ORX Resources, Inc.
C h a p t e r 21
v. MBW Exploration, LLC (2010) 417
LLC Management and Operation 420 Employment Relationships 490
Case 18.2 Polk v. Polk (2011) 420 Employment at Will 490
Dissociation and Dissolution of an LLC 422 Case Analysis Case 21.1 Ellis v. BlueSky Charter
Case 18.3 Venture Sales, LLC School (2010) 491
v. Perkins (2012) 423 Case 21.2 Waddell v. Boyce Thompson Institute
Limited Liability Partnerships 424 for Plant Research, Inc. (2012) 492
Limited Partnerships 425 Wages, Hours, and Layoffs 493
Family and Medical Leave 495
Worker Health and Safety 496
C h a p t e r 19 Income Security 497
Corporations 431 Employee Privacy Rights 499
Case 21.3 National Aeronautics and
The Nature and Classification of Corporations 431
Space Administration v. Nelson (2011) 501
Case Analysis Case 19.1 Belmont
v. MB Investment Partners, Inc. (2013) 432
Corporate Formation 437
Chapter 22
Corporate Powers 440
Piercing the Corporate Veil 441 Employment Discrimination 505
Case 19.2 Brennan’s, Inc. v. Colbert (2012) 442 Title VII of the Civil Rights Act of 1964 505
Directors and Officers 443 Case Analysis Case 22.1 Dees v. United Rentals
Classic Case 19.3 Guth v. Loft, Inc. (1939) 448 North America, Inc. (2013) 506
Shareholders 451
Contents ix
Case 22.2 Morales-Cruz Case Analysis Case 24.3 Jerman v. Carlisle,

v. University of Puerto Rico (2012) 513 McNellie, Rini, Kramer & Ulrich, LPA
Discrimination Based on Age 515 (2010) 558
Case 22.3 Mora v. Jackson Memorial Foundation,
Inc. (2010) 515
Discrimination Based on Disability 517 Chapter 25
Defenses to Employment Discrimination 519 Environmental Law 563
Affirmative Action 520
Common Law Actions 563
Federal, State, and Local Regulations 564
Chapter 23 Air Pollution 565
Water Pollution 567
Immigration and Labor Law 525 Case 25.1 Entergy Corp. v. Riverkeeper, Inc.
Immigration Law 525 (2009) 568
Case 23.1 Trollinger v. Tyson Foods, Inc. Case Analysis Case 25.2 United States
(2008) 526 v. Lucas (2008) 569
Federal Labor Laws 529 Case 25.3 Sackett v. Environmental Protection
Case Analysis Case 23.2 Services Employees Agency (2012) 571
International Union v. National Union of Toxic Chemicals 572
Healthcare Workers (2013) 531 Hazardous Wastes 573
Union Organization 532
Case 23.3 Local Joint Executive Board of Chapter 26
Las Vegas v. National Labor Relations Board Real Property and Land-Use Control 578
(2008) 534
The Nature of Real Property 578
Collective Bargaining 535
Ownership and Other Interests in Real Property 579
Strikes and Lockouts 536
Transfer of Ownership 584
Unfair Labor Practices 537
Spotlight on Sales of Haunted Houses
Unit Five Focus on Ethics: Ethics and the Case 26.1 Stambovsky v. Ackley (1991) 585
Employment Environment 542 Case 26.2 Scarborough v. Rollins (2010) 588
Limitations on the Rights of Property Owners 590
Unit Six Case Analysis Case 26.3 Town of Midland
The Regulatory v. Morris (2011) 590
Environment 545 Land-Use Control and Zoning 593
Chapter 24 Chapter 27
Consumer Protection 546 Antitrust Law 599
Deceptive Advertising 546 The Sherman Antitrust Act 599
Case 24.1 Hypertouch, Inc. v. ValueClick, Inc. Section 1 of the Sherman Act 600
(2011) 548 Case Analysis Case 27.1 Leegin Creative Leather
Labeling and Packaging Laws 551 Products, Inc. v. PSKS, Inc. (2007) 603
Spotlight on Honda Section 2 of the Sherman Act 604
Case 24.2 Paduano v. American Honda Case 27.2 E.I. DuPont de Nemours and Co.
Motor Co. (2009) 551
v. Kolon Industries (2011) 605
Sales 553
The Clayton Act 608
Protection of Health and Safety 553
Enforcement and Exemptions 611
Credit Protection 555
U.S. Antitrust Laws in the Global Context 611
Case 27.3 Carrier Corp. v. Outokumpu Oyj
(2012) 613
x Contents
Chapter 28 Appendices
Investor Protection A How to Brief Cases and Analyze Case Problems A–l
and Corporate Governance 618 B The Constitution of the United States A–5
The Securities and Exchange Commission 618 C Articles 2 and 2A of the
The Securities Act of 1933 619 Uniform Commercial Code A–13
Case 28.1 Litwin v. Blackstone Group, LP
D The Sarbanes-Oxley Act
(2011) 624
(Excerpts and Explanatory Comments) A–53
The Securities Exchange Act of 1934 625
Classic Case 28.2 SEC v. Texas Gulf Sulphur Co. E Answers to the Issue Spotters A–61
(1968) 626 F Sample Answers for Business Case Problems with
Case Analysis Case 28.3 City of Livonia Sample Answer A–67
Employees’ Retirement System and Local 295/
Local 851 v. Boeing Co. (2013) 630
State Securities Laws 632 Glossary G–l
Corporate Governance 632 Table of Cases TC–1
Online Securities Fraud 634
Unit Six Focus on Ethics: Ethics and the
Index I–1
Regulatory Environment 640
Concept Summaries
1.1 Sources of American Law 6 12.1 Intentional Torts against Persons 291
1.2 The Common Law Tradition 10 12.2 Intentional Torts against Property 294
1.3 Schools of Jurisprudential Thought 13 16.1 Remedies Available to Creditors 363
2.1 Jurisdiction 34 16.2 Forms of Bankruptcy Relief Compared 384
2.2 Types of Courts 42 19.1 Roles of Directors and Officers 446
2.3 Pretrial Procedures 52 20.1 Formation of the Agency Relationship 471
2.4 Trial Procedures 54 20.2 Authority of an Agent to Bind the Principal
7.1 Types of Crimes 151 and a Third Party 478
9.1 Types of Contracts 195 20.3 Termination of an Agency 486
9.2 Methods by Which an Offer Can 26.1 Interests in Real Property 583
Be Terminated 201
xi
Exhibits
1–1 Areas of the Law That May Affect Business 10–1 Mistakes of Fact 220
Decision Making 4 10–2 Contract Discharge 231
1–2 Equitable Maxims 7 10–3 Measurement of Damages—
1–3 Procedural Differences between an Breach of Construction Contracts 233
Action at Law and an Action in Equity 8 10–4 Remedies for Breach of Contract 236
1–4 National Reporter System—Regional/Federal 16 11–1 The Law Governing Contracts 249
1–5 How to Read Citations 17 11–2 Major Differences between Contract Law
1–6 A Sample Court Case 22 and Sales Law 257
2–1 Exclusive and Concurrent Jurisdiction 33 11–3 Contract Terms—Definitions 261
2–2 The State and Federal Court Systems 37 14–1 Forms of Intellectual Property 334
2–3 Geographic Boundaries of the U.S. Courts of 15–1 The Proposed Consumer Privacy Bill
Appeals and U.S. District Courts 40 of Rights 354
2–4 Stages in a Typical Lawsuit 43 16–1 Suretyship and Guaranty Parties 364
2–5 A Typical Complaint 45 16–2 Collection and Distribution of Property
2–6 Pretrial Motions 48 in Most Voluntary Bankruptcies 376
3–1 Basic Differences in the 17–1 Common Terms Included in a
Traditional Forms of ADR 62 Partnership Agreement 399
3–2 Sample Submission Form 65 18–1 A Comparison of General Partnerships
5–1 Protections Guaranteed by the Bill of Rights 106 and Limited Partnerships 426
6–1 Executive Departments and 19–1 Directors’ Management Responsibilities 444
Important Subagencies 123 19–2 Results of Cumulative Voting 453
6–2 Selected Independent Regulatory Agencies 124 19–3 Major Forms of Business Compared 457
6–3 The Process of Formal Administrative 23–1 Unfair Labor Practice Complaint Form 533
Adjudication 133
23–2 Basic Unfair Labor Practices 537
7–1 Key Differences between Civil Law
24–1 Selected Areas of Consumer Law Regulated
and Criminal Law 141
by Statutes 547
7–2 Civil (Tort) Lawsuit and Criminal Prosecution
25–1 Major Federal Environmental Statutes 565
for the Same Act 142
27–1 Exemptions to Antitrust Enforcement 612
7–3 Major Procedural Steps in a Criminal Case 157
28–1 Exemptions for Securities Offerings under
8–1 The Legal Systems of Selected Nations 168
the 1933 Securities Act 622
9–1 Classifications Based on Contract Formation 191
28–2 Comparison of Coverage, Application,
9–2 Enforceable, Voidable, Unenforceable, and Liability under SEC Rule 10b-5 and
and Void Contracts 194 Section 16(b) 629
9–3 A Sample Click-On Agreement 204 28–3 Some Key Provisions of the Sarbanes-Oxley Act
9–4 The E-SIGN Act and the UETA 207 Relating to Corporate Accountability 635
xii
Preface
The study of the legal environment of business tent and learning tools. MindTap offers instruc-
has universal applicability. A student entering any tors the ability to add their own content in the
field of business must have at least a passing under- Learning Path with apps that integrate into the
standing of business law in order to function in MindTap framework seamlessly with Learning
the real world. Management Systems (LMS).
Additionally, students preparing for a career
in accounting, government and political science,
economics, and even medicine can use much of CengageNOW for The Legal
the information that they learn in a legal environ- Environment of Business:
ment of business course. In fact, every individual
throughout his or her lifetime can benefit from a Interactive Assignment System
knowledge of contracts, employment relationships, CengageNOW™ is a powerful course management
real property law, land-use control, and other legal tool that provides control and customization to
topics. Consequently, we have fashioned this text optimize the student learning experience and pro-
as a useful “tool for living” for all of your students duce desired outcomes. The application features a
(including those taking the CPA exam). variety of question types to test simple reading com-
For the Ninth Edition, we have spent a great prehension, complex critical thinking, legal reason-
deal of effort making this book more contempo- ing, and case analysis skills. CengageNOW includes:
rary, exciting, and visually appealing than ever
• An Interactive Book.
before. We have also added many new features and
special pedagogical devices that focus on legal, • Auto-graded Homework with the follow-
ethical, global, and corporate issues, while addressing consistent question types:
ing core curriculum requirements. ° Worksheets—Interactive worksheets
prepare students for class by ensuring
reading and comprehension.
Unique New Digital ° Video Activities—Real-world video exer-
cises make business law engaging and
Learning Systems relevant.
° Brief Hypotheticals—These applications
Before we discuss the many new aspects of this provide students practice in spotting the
text, however, we wish to point out the exciting issue and applying the law in the context
new digital products offered in conjunction with of a short, factual scenario.
the text. Case Problem Blueprints—Promote
°
deeper critical thinking and legal
reasoning by guiding students step-by-
MindTap step through a case problem, building on
New for The Legal Environment of Business, Ninth acquired knowledge to truly assess their
Edition, MindTap is a fully online, highly per- understanding of legal principles.
sonalized learning experience built on Cengage • Personalized Student Plan with multime-
Learning content. MindTap combines student dia study tools and videos.
learning tools—such as readings, multimedia, • Test Bank.
activities, and assessments from CengageNOW™—
into a singular Learning Path that guides students • Reporting and Assessment options.
through their course. By using the optional CengageNOW system,
Instructors can personalize the experience by students can complete the assignments online
customizing authoritative Cengage Learning con- and can receive instant feedback on their answers.
xiii
xiv Preface
Instructors can utilize CengageNOW to upload Multi-language support, an equation editor,

their course syllabi, create and customize home- and unlimited metadata help ensure your
work assignments, and keep track of their students’ tests are complete and compliant.
progress. Instructors can also communicate with • Cross-compatible capability. Import and
their students about assignments and due dates, export content into other systems.
and create reports summarizing the data for an
individual student or for the whole class.
What Is New in
CourseMate the Ninth Edition
CourseMate for The Legal Environment of Business
brings business law concepts to life with interactive Instructors have come to rely on the coverage,
learning, study, and exam preparation tools that accuracy, and applicability of The Legal Environment
support the printed textbook. Built-in engagement of Business. To make sure that our text engages your
tracking tools allow you to assess the study activi- students, solidifies their understanding of legal con-
ties of your students. cepts, and provides the best teaching tools avail-
Additionally, The Legal Environment of Business able, we now offer the following items in the text.
CourseMate includes an interactive online text-
book, which contains the complete content of the
print textbook enhanced by the many advantages New Chapter on Internet Law,
of a digital environment. Social Media, and Privacy
For the Ninth Edition, we have included an entirely
new chapter (Chapter 15) entitled Internet Law,
Cengage Learning Testing Social Media, and Privacy. Social media have
Powered by Cognero entered the mainstream and become a part of every-
Cengage Learning Testing Powered by Cognero is a flexi- day life for many businesspersons. Throughout the
ble, online system that allows you to do the following: text, we recognize this trend by incorporating the
Internet and social media as they relate to the topics
• Author, edit, and manage Test Bank content under discussion.
from multiple Cengage Learning solutions. We also give the legal issues surrounding the
• Create multiple test versions in an instant. Internet, social media, and privacy special empha-
• Deliver tests from your LMS, your classroom, sis in this new chapter. This chapter examines some
or wherever you want. of the laws pertaining to the Internet, intellectual
property, and privacy. It also discusses recent legal
developments concerning the protection of social
Start Right Away! Cengage Learning Testing Powered
media passwords and the use of social media by
by Cognero works on any operating system or browser.
employers and law enforcement.
• No special installs or downloads are needed.
• Create tests from school, home, the coffee
shop—anywhere with Internet access.
New Managerial Strategy Features
For the Ninth Edition, we have created a new fea-
What Will You Find ture entitled Managerial Strategy that focuses
on the management aspects of business law. Special
• Simplicity at every step. A desktop-inspired emphasis is given to sustainability, ethical trends,
interface features drop-down menus and and changing managerial responsibilities.
familiar intuitive tools that take you through Each feature includes a short section entitled
content creation and management with ease. Managerial Implications that provides con-
• Full-featured test generator. Create ideal crete information for managers and connects the
assessments with your choice of fifteen ques- topic under discussion to operating a business.
tion types—including true/false, multiple Each feature also concludes with two Business
choice, opinion scale/Likert, and essay. Questions that prompt students to further exam-
Preface xv
ine the issues discussed. Suggested answers ing cases. Spotlight Cases and Spotlight Case
to all the Business Questions are included Problems are labeled either by the name of one of
in both the Instructor’s Manual and the the parties or by the subject involved. Some examples
Answers Manual for this text. include Spotlight on Amazon.com, Spotlight on Apple,
Topics examined in these features include: Spotlight on Beer Labels, Spotlight on Macy’s, Spotlight
on the Seattle Mariners, and Spotlight on Verizon.
• Budget Cuts for State Courts Can Affect
Instructors will find these Spotlight Cases use-
Businesses (Chapter 2).
ful to illustrate the legal concepts under discus-
• Many Companies Have to Revise Their Social sion. Students will enjoy studying these cases
Media Policies (Chapter 23). because the parties are often familiar and the
cases involve interesting and memorable facts.
Suggested answers to all case-ending ques-
New Appendix to Chapter 10
tions and case problems are included in
Focuses on Reading and both the Instructor’s Manual and the
Analyzing Contracts Answers Manual for this text.
Because reading and analyzing contracts is such
a crucial skill for businesspersons, a special new
Appendix to Chapter 10 has been added. This New ExamPrep Section
appendix follows the second contracts chapter and with Two Issue Spotters
explains how to read and analyze a contract. Then,
For this edition, we have added a new section called
it presents an example of an employee noncom-
ExamPrep at the conclusion of each chapter. The sec-
petition and nondisclosure agreement. The sample
tion includes two new Issue Spotters related to
contract is annotated so that students can quickly
the chapter’s topics that facilitate student learning
see what each contract provision means.
and review of the materials. Suggested answers to
the Issue Spotters in every chapter are pro-
New Highlighted and vided in Appendix E at the end of the text.
Numbered Examples and
Case in Point Illustrations New Legal Reasoning
Many instructors use cases and examples to illustrate Group Activities
how the law applies to business. For this edition, we
have expanded both our in-text examples and our dis- For instructors who want their students to engage
cussion of case law by adding highlighted numbered in group projects, each chapter of the Ninth Edition
Examples and Cases in Point in every chapter. includes a special new Legal Reasoning Group
These two features are uniquely designed and Activity. Each activity begins by describing a
consecutively numbered throughout each chapter business scenario and then requires each group
for easy reference. Examples illustrate how the law of students to answer a specific question pertain-
applies in a specific situation. Cases in Point pre- ing to the scenario based on the information that
sent the facts and issues of an actual case and then they learned in the chapter. These projects may be
describe the court’s decision and rationale. The used in class to spur discussion or as homework
numbered Examples and Cases in Point features are assignments. Suggested answers to the Legal
integrated throughout the text to help students Reasoning Group Activities are included
better understand how courts apply the principles in both the Instructor’s Manual and the
in the real world. Answers Manual for this text.
New Spotlight Cases and New Insight Features

Spotlight Case Problems For the Ninth Edition, we have created new
For the Ninth Edition of The Legal Environment Insight into [E-Commerce, Ethics, the Global
of Business, certain cases and case problems have Environment, or Social Media] features that
been carefully chosen as exceptionally good teach- appear in selected chapters. These features provide
xvi Preface
valuable insights into how the courts and the The emphasis on ethics is reiterated in mate-
law are dealing with specific issues. Each of these rials throughout the text, particularly the Insight
features ends with a Legal Critical Thinking into Ethics features, the Focus on Ethics features that
question that explores some cultural, environmen- conclude every unit, and the pedagogy that accom-
tal, or technological aspect of the issue. The fol- panies selected cases and features. We also dis-
lowing are some of the topics explored in these cuss corporate governance issues in Chapter
features: 28 and in the Focus on Ethics feature concluding
• Insight into E-Commerce—Do Computers Unit Four on the business environment. Finally,
Have Free Speech Rights? (Chapter 5). each chapter in the text includes A Question of
Ethics case problem that provides a modern-day
• Insight into Social Media—“Catfishing”:
example of the kinds of ethical issues faced by
Is That Online “Friend” Who You Think It Is?
businesspersons and explores the ways that courts
(Chapter 10).
can resolve them.
• Insight into Ethics—Warning Labels for
Video Games (Chapter 13).
• Insight into the Global Environment—
Is It Legal to Resell Textbooks Purchased Additional Features
Abroad? (Chapter 14). of This Text
Suggested answers to the Legal Critical
Thinking questions are included in both the The Legal Environment of Business, Ninth Edition,
Instructor’s Manual and the Answers Manual includes a number of pedagogical devices and spe-
for this text. cial features, including those discussed here.
New Case Analysis Cases with Emphasis on Business and

Four Legal Reasoning Questions on Critical Thinking
In every chapter of the Ninth Edition of The Legal For the Ninth Edition, we have focused on mak-
Environment of Business, we have included one lon- ing the text more business related. To that end, we
ger case excerpt—labeled Case Analysis Case— have carefully chosen cases, features, and prob-
followed by four Legal Reasoning Questions. lems that are relevant to operating a business.
The questions are designed to guide students’ In addition, we recognize that today’s busi-
analysis of the case and build their legal reason- ness leaders must often think “outside the box”
ing skills. when making business decisions. For this reason,
These Case Analysis Cases may be used for case- we have included numerous critical thinking and
briefing assignments and are also tied to the Special legal reasoning elements in this text. Almost all of
Case Analysis questions found in nearly every unit the features and cases presented in the text con-
of the text (one per unit). Suggested answers to clude with some type of critical thinking question.
the Legal Reasoning Questions are included Cases may include one or more of the follow-
in both the Instructor’s Manual and the ing critical thinking questions:
Answers Manual for this text.
• What If the Facts Were Different?
• The Ethical Dimension
Improved Ethics Coverage • The E-Commerce Dimension
For the Ninth Edition of The Legal Environment of • The Global Dimension
Business, we have significantly revised and updated • The Legal Environment Dimension
the chapter on ethics and business decision making
• The Social Dimension
(Chapter 4). The chapter now presents a more practi-
cal, realistic, case-study approach to business ethics Suggested answers to all questions following
and the dilemmas facing businesspersons today. It cases can be found in both the Instructor’s
also provides step-by-step guidance for making ethi- Manual and the Answers Manual for this
cal business decisions. text.
Preface xvii
Managerial Implications them for self-study prior to completing homework

in Selected Cases assignments. Suggested answers to the ques-
tions posed in the Reviewing features can
In addition to the critical thinking questions, we be found in both the Instructor’s Manual
have included special case pedagogy at the end of and the Answers Manual for this text.
selected cases that have particular importance for
business managers. This section, called Managerial
Implications, points out the significance of the
court’s ruling in the case for business owners and Concept Summaries
managers. When key areas of the law need additional empha-
sis, we provide a Concept Summary. These summa-
ries have always been a popular pedagogical tool
Special Case Analysis Questions in this text. It now includes nineteen of these sum-
For nearly every unit in the text, we also provide maries, many of which have been expanded or
a Special Case Analysis question that is based on revised.
the Case Analysis Case excerpt in that chapter. The
Special Case Analysis questions are designed to build
students’ analytical skills and appear in the Business Exhibits
Case Problems at the end of selected chapters.
The Special Case Analysis questions test stu- When appropriate, we also illustrate important
dents’ ability to perform IRAC (which stands for aspects of the law in graphic form in exhibits. In all,
Issue, Rule, Application, and Conclusion) case fifty exhibits are featured in The Legal Environment
analysis. Students must identify the legal issue of Business, Ninth Edition. Several of these exhibits
presented in the chapter’s Case Analysis Case, are new, and we have modified existing exhibits to
understand the rule of law, determine how the achieve better clarity.
rule applies to the facts of the case, and describe
the court’s conclusion. Instructors can assign these
questions as homework or use them in class to Case Problems
elicit student participation and teach case analy-
sis. Suggested answers to the Special Case Every chapter includes a 2012 or 2013 case prob-
Analysis questions can be found in both lem in the Business Case Problems that appear at the
the Instructor’s Manual and the Answers end of the chapter. These problems are designed to
Manual for this text. clarify how modern courts deal with the business
issues discussed in the chapter.
At the request of instructors, we have given
Reviewing Features every business scenario and case problem a label
that identifies the chapter topic to which the ques-
in Every Chapter tion relates. These labels make it easier for instruc-
In the Ninth Edition of The Legal Environment of tors who wish to assign only certain questions to
Business, we continue to offer a Reviewing feature at their students. In addition, for this edition, we
the end of every chapter to help solidify students’ have added page references to the text where the
understanding of the chapter materials. Each problem’s answer can be found.
Reviewing feature presents a hypothetical scenario We have also included two special prob-
and then asks a series of questions that require stu- lems—the Spotlight Case Problems (in selected
dents to identify the issues and apply the legal con- chapters, as mentioned earlier), which are based
cepts discussed in the chapter. on good teaching cases with interesting facts, and
These features are designed to help students the Business Case Problem with Sample Answer (dis-
review the chapter topics in a simple and interest- cussed next).
ing way and see how the legal principles discussed Suggested answers to all chapter-ending
in the chapter affect the world in which they live. business scenarios and case problems are
An instructor can use these features as the basis included in both the Instructor’s Manual
for in-class discussion or encourage students to use and the Answers Manual for this text.
xviii Preface
Business Case Problem with protected portion of the Instructor’s Companion

Sample Answer in Each Chapter Web Site.
The complete teaching/learning package
In response to those instructors who would like stu- for the Ninth Edition includes the supplements
dents to have sample answers available for some listed next. For further information on The Legal
of the questions and case problems, we include a Environment of Business teaching/learning pack-
Business Case Problem with Sample Answer in each age, contact your local sales representative or visit
chapter. The Business Case Problem with Sample The Legal Environment of Business Web site.
Answer is based on an actual case, and students
can access a sample answer in Appendix F at the
end of the text. Instructor’s Companion Web Site
The Instructor’s Companion Web Site contains the
following supplements:
The Legal Environment • Instructor’s Manual. Includes sections

entitled “Additional Cases Addressing This
of Business on the Web Issue” at the end of selected case synopses.
• Answers Manual. Provides answers to all
The Web site for the Ninth Edition of The Legal questions presented in the text, including the
Environment of Business can be found by going questions in each case, feature, and unit-ending
to www.cengagebrain.com and entering ISBN feature.
9781285428949. The Web site offers a broad array • Test Bank. A comprehensive test bank that
of teaching/learning resources, including the contains multiple choice, true/false, and short
following: essay questions.
• Practice quizzes for every chapter in this text. • Case-Problem Cases.
• Flashcards and a Glossary for every • Case Printouts.
chapter in this text. • PowerPoint slides.
• Appendix A: How to Brief Cases and • Instructor’s Manual for the Drama of the
Analyze Case Problems that appears in the Law video series.
book is also posted on the Web site.
• Legal reference materials including a
“Statutes” page that offers links to the full Software, Video, and
text of selected statutes referenced in the text, Multimedia Supplements
a Spanish glossary, and other important legal
resources. • Business Law Digital Video Library—
• CourseMate, which students can purchase Provides access to ninety videos, including
access to, provides additional study tools, the Drama of the Law videos and video clips
including an e-book, additional quizzes, flash- from actual Hollywood movies. Access to
cards, key terms, and PowerPoint slides. our Digital Library is available in an optional
package with each new text at no additional
cost. You can access the Business Law Digital
Video Library, along with corresponding Video
The Most Complete Questions that are related to specific chapters in
the text, at www.cengagebrain.com.
Supplements Package • CengageNow (described on the first page of
Available Today this preface).
• MindTap (described on the first page of this
This edition of The Legal Environment of Business preface).
is accompanied by many teaching and learning • CourseMate (described on the second page
supplements, which are available on the password- of this preface).
Preface xix
• Westlaw® (ten free hours for qualified tions. Other major changes and additions for this
adopters). edition include the following:
• Chapter 4 (Business Ethics)—This
chapter has been thoroughly revised with
all new cases, business scenarios, and many
For Users of the new case problems. It includes a new sec-
Eighth Edition tion on business ethics and social media, as
well as an in-depth discussion of stakehold-
ers and corporate social responsibility. The
First of all, we want to thank you for helping chapter also provides step-by-step guidance
make The Legal Environment of Business the best- on making ethical business decisions and
selling legal environment text in America today. includes materials on global business ethics.
Second, we want to make you aware of the numer- An Insight into the Global Environment feature
ous additions and changes that we have made in examines bribery and the Foreign Corrupt
this edition—many in response to comments from Practices Act.
reviewers. • Chapter 5 (Business and the
Constitution)—The chapter has been
revised and updated to be more business
New Chapter and oriented. It has numerous new Examples and
Special Pedagogy Cases in Point, many of which are based on
United States Supreme Court decisions.
For this edition, we have added more material on
• Chapter 8 (International Law in a
Internet law and social media throughout the text.
Global Economy)—This chapter has been
We have also created an entire chapter (Chapter
thoroughly revised and updated. It now dis-
15) on Internet law, social media, and privacy.
cusses international dispute resolution and
We have also added the following entirely new
includes a feature on border searches of
elements for the Ninth Edition:
electronic devices. All three cases presented
• New highlighted and numbered Examples and in Chapter 8 are new, and an important
Cases in Point. 2013 United States Supreme Court deci-
• New Managerial Strategy features. sion has been selected as a Spotlight on
• New Insight into Social Media features. International Torts.
• New Spotlight Cases and Spotlight Case Problems. • Chapters 9 through 10 (the contracts
materials)—We have added many high-
• Classic Cases.
lighted and numbered Examples, Cases in
• Four Legal Reasoning Questions at the conclu- Point, and updates to clarify and enhance our
sion of Case Analysis Cases. already superb contract law coverage. The dis-
• Appendix to Chapter 10: Reading and Analyzing cussion of online contracting and electronic
Contracts. signatures has been merged with the coverage
• Issue Spotters in every chapter. of traditional contracts. Chapter 9 presents a
• Legal Reasoning Group Activities in every Spotlight on Amazon.com case and includes a
chapter. Spotlight on Taco Bell case problem.
• Appendix E (Answers to the Issue Spotters), • Chapter 11 (Sales and Lease Contracts)—
Appendix F (Sample Answers for Business Case We have streamlined and simplified our cover-
Problems with Sample Answer). age of the Uniform Commercial Code. We
have added numerous new Examples and Cases
in Point throughout the chapter to increase
student comprehension. The chapter includes
Significantly Revised Chapters an Insight into E-Commerce on Taxing Web
Every chapter of the Ninth Edition has been Purchases and a Spotlight on Apple case prob-
revised as necessary to incorporate new develop- lem. It also contains a classic case and a 2013
ments in the law or to streamline the presenta- Case Analysis Case.
xx Preface
• Chapter 12 (Torts) and Chapter 13 and partnerships—as well as issues affecting

(Strict Liability and Product owners of small businesses—are covered in
Liability)—Our torts coverage has been Chapter 17. Limited liability forms of business
substantially revised, reorganized, and are covered in Chapter 18, and corporations
streamlined. The materials are up to date and are discussed in Chapter 19. A new case and a
business oriented. Intentional torts and neg- new Case Analysis Case have been added in the
ligence are covered in one chapter, and strict corporate law chapter.
liability and product liability are covered in • Chapter 21 (Employment
the next. Each chapter includes a Spotlight Relationships)—This chapter discusses
Case, and Chapter 13 presents an Insight into many legal issues facing employers today and
Ethics feature discussing warning labels for includes updated minimum wage figures and
video games. Social Security and Medicare percentages.
• Chapter 14 (Intellectual Property We have also included a discussion of the
Rights)—The materials on intellectual prop- Affordable Care Act (Obamacare).
erty rights have been thoroughly revised and • Chapter 22 (Employment
updated to reflect the most current laws and Discrimination)—We have added Examples
trends. There is a discussion of the dispute and Cases in Point throughout this chapter,
between Apple, Inc., and Samsung Electronics as well as new numbered lists of elements,
Company over smartphones. A feature dis- and two new cases. A new Insight into Ethics
cusses a 2013 United States Supreme Court feature examines appearance-based discrimi-
decision on the resale on eBay of textbooks nation. We discuss relevant United States
purchased abroad. The case problems include Supreme Court decisions affecting employ-
a Spotlight on Macy’s. ment issues throughout both Chapter 21 and
• Chapter 15 (Internet Law, Social Media, this chapter.
and Privacy)—This chapter is all new and • Chapter 23 (Immigration and Labor
was created for the Ninth Edition to explore Law)—The materials on immigration law
timely topics. It discusses legal issues that are have been streamlined and updated and
unique to the Internet, such as spam, domain include a discussion of state immigration leg-
name disputes, cybersquatting, digital copy- islation and its constitutionality. A Managerial
right laws, and file-sharing. It also discusses Strategy feature covers changing social media
social media, company-wide social media policies, and there is a new Cases Analysis Case
networks, state legislation on social media, on labor law.
the Electronic Communications Privacy Act, • Chapter 24 (Consumer Protection)—This
and password protection. The chapter also chapter has been streamlined and updated.
covers online defamation, data collection and The chapter also includes a Spotlight on
cookies, and online privacy. Honda case and a Spotlight on McDonald’s case
• Chapter 16 (Creditor-Debtor Relations problem.
and Bankruptcy)—This chapter has been • Chapter 25 (Environmental Law)—The
revised to be more up to date and comprehen- materials on air pollution and water pollution
sible. We have streamlined the materials to have been updated, and a recent decision from
focus on those concepts that students need to the United States Supreme Court decision is
know, and included updated dollar amounts presented.
of various provisions of the Bankruptcy Code. • Chapter 26 (Real Property and Land-Use
An Insight into Social Media feature is included. Control)—Parts of this chapter have been
• Chapters 17 through 19 (the Business significantly revised. Several new terms were
Environment unit)—This unit has been added. The discussion of eminent domain
revised and updated to improve the flow and for economic development was updated. A
clarity. We provide more practical information Spotlight Case covers whether the buyer of an
and recent examples. Small-business organi- allegedly haunted house can seek rescission of
zational forms, including sole proprietorships the sale. The Case Analysis Case is on whether
Preface xxi
a town can use a condemnation action to coverage of leading cases, including a discus-
acquire rights-of-way for a natural gas pipeline sion of price fixing and e-books. Updated
that is not being built to furnish natural gas thresholds for interlocking directorates have
to the residents of that town. The discussion been incorporated.
of zoning laws has been reworked, and several • Chapter 28 (Investor Protection and
numbered lists explain permissible uses of land Corporate Governance)—This chapter
and requirements for variances. has been substantially revised, updated, and
• Chapter 27 (Antitrust Law)—We have simplified. It includes new numbered lists of
added several new examples and expanded elements, two new cases, and a Classic Case.
Acknowledgments for Previous Editions
Since we began this project many years ago, a sizable number of legal environment of business professors
and others have helped us in various phases of the undertaking. The following reviewers offered numer-
ous constructive criticisms, comments, and suggestions during the preparation of the previous editions.
Peter W. Allan David Cooper David Redle

Victor Valley College Fullerton College University of Akron
William Dennis Ames Steven R. Donley Larry A. Strate
Indiana University of Pennsylvania Cypress College University of Nevada–Las Vegas
Thomas M. Apke Paul F. Dwyer Dawn Swink
California State University, Fullerton Siena College Minnesota State University, Mankato
Linda Axelrod Joan Gabel Brian Terry
Metropolitan State University Florida State University Johnson and Wales University
Jane Bennett Gamewell Gant John Theis
Orange Coast College Idaho State University Mesa State College
Robert C. Bird Arlene M. Hibschweiler Michael G. Walsh
University of Connecticut SUNY Fredonia Villanova University
Dean Bredeson Barbara W. Kincaid Glynda White
University of Texas at Austin Southern Methodist University Community College
Sam Cassidy Marty P. Ludlum of Southern Nevada
University of Denver Oklahoma City Community LeVon E. Wilson
Thomas D. Cavenagh College Western Carolina University
North Central College– Marty Salley McGee John A. Wrieden
Naperville, Illinois South Carolina State University Florida International University
Angela Cerino Robert Mitchum Eric D. Yordy
Villanova University Arkansas State University, Beebe Northern Arizona University
Corey Ciocchetti Kathleen A. Phillips Mary-Kathryn Zachary
University of Denver University of Houston State University of West Georgia
xxii Preface
We would also like to give credit to the following reviewers for their useful input during development of
CengageNOW for The Legal Environment of Business: Interactive Assignment System:
Nena Ellison Melanie Morris William H. Volz

Florida Atlantic University Raritan Valley Community College Wayne State University
Jacqueline Hagerott
Franklin University
We also wish to extend special thanks to Diane May, Winona State University, for her contributions to the
Ninth Edition, specifically for preparing the Blueprint Cases that are included in both CengageNOW and
MindTap for this edition.
As in all past editions, we owe a debt of extreme proofreading services of Pat Lewis. We are grate-
gratitude to the numerous individuals who worked ful for the efforts of Vickie Reierson and Roxanna
directly with us or at Cengage Learning. In par- Lee for their proofreading and other assistance,
ticular, we wish to thank Vicky True-Baker, Rob which helped to ensure an error-free text. Finally,
Dewey, and Michael Worls for their helpful advice we thank Suzanne Jasin of K & M Consulting for
and guidance during all of the stages of this new her many special efforts on this project.
edition. We extend our thanks to Jan Lamar, our In addition, we would like to give special
longtime content developer, for her many useful thanks to all of the individuals who were instru-
suggestions and for her efforts in coordinating mental in developing and implementing the new
reviews and ensuring the timely and accurate pub- CengageNOW for The Legal Environment of Business:
lication of all supplemental materials. We are also Interactive Assignment System. These include Rob
indebted to Kristen Hurd for her excellent market- Dewey, Vicky True-Baker, Jan Lamar, Kristen Hurd,
ing advice and Mike Worls for his support. and Kristen Meere at Cengage, and Katherine
Our content project manager, Ann Borman, and Marie Silsbee, Roger Meiners, Lavina Leed Miller,
our art director, Michelle Kunkler, made sure that William Eric Hollowell, Kimberly Wallan, Kristi
we came out with an error-free, visually attractive Wiswell, and Joseph Zavaleta who helped develop
Ninth Edition. We appreciate their efforts. We are the content for this unique Web-based product.
also indebted to the staff at Parkwood Composition, Through the years, we have enjoyed an ongo-
our compositor. Their ability to generate the pages ing correspondence with many of you who have
for this text quickly and accurately made it possible found points on which you wish to comment. We
for us to meet our ambitious printing schedule. continue to welcome all comments and promise to
We especially wish to thank Katherine Marie respond promptly. By incorporating your ideas, we
Silsbee for her management of the entire project, can continue to write a business law text that is
as well as for the application of her superb research best for you and best for your students.
and editorial skills. We also wish to thank William
Eric Hollowell, who co-authored the Instructor’s
Manual and the Test Bank for his excellent research F.B.C.
efforts. We were fortunate enough to have the R.L.M.
Dedication
To my parents and sisters.
F.B.C.
To Julian Kreeger,
Your professionalism only

gets better with time.
Thanks,
R.L.M.
Unit One
The Foundations
Contents
1 Law and Legal Reasoning
2 The Court System
3 Alternative and Online Dispute Resolution
4 Business Ethics
Chapter 1
Law and
Legal Reasoning
O
ne of the important func- Although law has various defini- privileges that are consistent with the
tions of law in any society tions, they are all based on the general values and beliefs of their society or its
is to provide stability, observation that law consists of enforce- ruling group.
predictability, and continuity so that able rules governing relationships among In this introductory chapter, we first
people can know how to order their individuals and between individuals and look at an important question for any
affairs. If any society is to survive, its their society. These “enforceable rules” student reading this text: How does
citizens must be able to determine what may consist of unwritten principles of the legal environment affect business
is legally right and legally wrong. They behavior established by a nomadic tribe. decision making? We next describe
must know what sanctions will be im- They may be set forth in a law code, such the major sources of American law, the
posed on them if they commit wrongful as the Code of Hammurabi in ancient common law tradition, and some basic
acts. If they suffer harm as a result of Babylon (c. 1780 b.c.e.) or the law code of schools of legal thought. We conclude
others’ wrongful acts, they must know one of today’s European nations. They the chapter with sections offering
how they can seek compensation. By may consist of written laws and court practical guidance on several topics,
setting forth the rights, obligations, and decisions created by modern legislative including how to find the sources of law
privileges of citizens, the law enables and judicial bodies, as in the United discussed in this chapter (and referred
individuals to go about their business States. Regardless of how such rules are to throughout the text) and how to
with confidence and a certain degree of created, they all have one thing in com- read and understand court opinions.
predictability. mon: they establish rights, duties, and
SECTION 1 Many Different Laws May

Business Activities and Affect a Single Business Decision
the Legal Environment As you will note, each chapter in this text covers specific
areas of the law and shows how the legal rules in each
area affect business activities. Though compartmental-
Laws and government regulations affect almost all
izing the law in this fashion promotes conceptual clar-
business activities—from hiring and firing decisions
ity, it does not indicate the extent to which a number
to workplace safety, the manufacturing and market-
of different laws may apply to just one decision.
ing of products, business financing, and more. To
make good business decisions, a basic knowledge of
Lessons from Facebook When Mark Zuckerberg
the laws and regulations governing these activities is
started Facebook as a Harvard student, he probably
beneficial—if not essential.
did not imagine all the legal challenges his company
Realize also that in today’s business world, a
would face as a result of his business decisions.
knowledge of “black-letter” law is not enough.
Businesspersons are also pressured to make ethical • As you may know from the movie, The Social Net-
decisions. Thus, the study of business law necessarily work, shortly after Facebook was launched, others
involves an ethical dimension. claimed that Zuckerberg had stolen their ideas for
Chapter 1 Law and Legal Reasoning 3
a social networking site. Their claims involved al- Today, business decision makers need to con-
leged theft of intellectual property (see Chapter sider not just whether a decision is legal, but also
14), fraudulent misrepresentation (see Chapter 10), whether it is ethical. Often, as in several of the
partnership law (see Chapter 17), and securities law claims against Facebook discussed above, disputes
(see Chapter 28). Facebook ultimately paid a signifi- arise in business because one party feels that he or
cant amount ($65 million) to settle those claims out she has been treated unfairly. Thus, the underly-
of court (see Chapter 3). ing reason for bringing some lawsuits is a breach of
• Facebook has also been sued repeatedly for violat- ethical duties (such as when a partner or employee
ing users’ privacy (such as by disseminating private attempts to secretly take advantage of a business
information to third parties for commercial pur- opportunity).
poses—see Chapters 5 and 15). Throughout this text, you will learn about the
• In 2012, a class-action lawsuit was filed against relationship between the law and ethics, as well
Facebook that seeks damages of $15 billion for vio- as about some of the types of ethical questions
lating users’ privacy (and federal wiretapping law) that often arise in business. For example, the unit-
by tracking their Web site usage. ending Focus on Ethics features are devoted solely to
• Facebook’s business decisions have also come un- the exploration of ethical questions pertaining to
der scrutiny by federal regulators, such as the Fed- topics treated within the unit. We have also included
eral Trade Commission (FTC) and the Securities Ethical Dimension questions for selected cases that
and Exchange Commission (SEC). focus on ethical considerations in today’s business
• In 2011, the company settled a complaint filed climate and Insight into Ethics features that appear
by the FTC alleging that Facebook failed to keep in selected chapters. A Question of Ethics case prob-
“friends” lists and other user information private. lem is included at the conclusion of every chapter
• In 2012, Facebook conducted a much-anticipated to introduce you to the ethical aspects of specific
initial public offering (IPO) of its stock. The IPO cases involving real-life situations. Additionally,
did not go well, however, and many investors suf- Chapter 4 offers a detailed look at the importance of
fered losses. Facebook is facing dozens of lawsuits business ethics.
(including class actions) related to business deci-
sions made with regard to the IPO and alleged vio- SECTION 2
lations of securities laws (see Chapter 28).
• The SEC is also investigating whether Facebook Sources of American Law
engaged in any wrongdoing with regard to its IPO
and trading of stock (see Chapter 28). There are numerous sources of American law. Primary
sources of law, or sources that establish the law, include
Points to Consider A key to avoiding business dis-
the following:
putes is to think ahead when starting or running a
business or entering a contract. Learn what you can 1. The U.S. Constitution and the constitutions of the
about the laws pertaining to that specific enterprise various states.
or transaction. Have some idea of the legal ramifica- 2. Statutory law—including laws passed by Congress,
tions of your business decisions and seek the advice state legislatures, or local governing bodies.
of counsel when in doubt. Exhibit 1–1 on the follow- 3. Regulations created by administrative agencies,
ing page illustrates the various areas of law that may such as the Food and Drug Administration.
influence business decision making. 4. Case law and common law doctrines.
We describe each of these important sources of law in
Ethics and the following pages.
Secondary sources of law are books and articles that
Business Decision Making summarize and clarify the primary sources of law.
Merely knowing the areas of law that may affect a Examples include legal encyclopedias, treatises, arti-
business decision is not sufficient in today’s business cles in law reviews, and compilations of law, such as
world. Businesspersons must also take ethics into the Restatements of the Law (which will be discussed
account. As you will learn in Chapter 4, ethics gener- shortly). Courts often refer to secondary sources of law
ally is defined as the principles governing what con- for guidance in interpreting and applying the primary
stitutes right or wrong behavior. sources of law discussed here.
4 Unit One The Foundations
E x h i b i t 1–1 Areas of the Law That May Affect Business Decision Making
Contracts
Courts and
Court Procedures Sales
Environmental Negotiable
Law and Sustainability Instruments
Business Business
Creditors’
Organizations Decision
Rights
Making
Intellectual
Agency
Property
Internet Law,
Torts Social Media,
and Privacy
Product
Liability
Constitutional Law Statutory Law

The federal government and the states have separate Laws enacted by legislative bodies at any level of gov-
written constitutions that set forth the general organi- ernment, such as statutes passed by Congress or by
zation, powers, and limits of their respective govern- state legislatures, make up the body of law known as
ments. Constitutional law is the law as expressed statutory law. When a legislature passes a statute,
in these constitutions. that statute ultimately is included in the federal code
According to Article VI of the U.S. Constitution, the of laws or the relevant state code of laws (discussed
Constitution is the supreme law of the land. As such, later in this chapter).
it is the basis of all law in the United States. A law in Statutory law also includes local ordinances—
violation of the Constitution, if challenged, will be statutes (laws, rules, or orders) passed by municipal or
declared unconstitutional and will not be enforced, county governing units to govern matters not covered
no matter what its source. Because of its importance by federal or state law. Ordinances commonly have to
in the American legal system, we present the com- do with city or county land use (zoning ordinances),
plete text of the U.S. Constitution in Appendix B and building and safety codes, and other matters affecting
discuss it in depth in Chapter 5. the local community.
The Tenth Amendment to the U.S. Constitution A federal statute, of course, applies to all states. A
reserves to the states all powers not granted to the state statute, in contrast, applies only within the state’s
federal government. Each state in the union has its borders. State laws thus may vary from state to state.
own constitution. Unless it conflicts with the U.S. No federal statute may violate the U.S. Constitution,
Constitution or a federal law, a state constitution is and no state statute or local ordinance may violate the
supreme within the state’s borders. U.S. Constitution or the relevant state constitution.
Uniform laws During the 1800s, the differences orders, and decisions of administrative agencies. An
among state laws frequently created difficulties for administrative agency is a federal, state, or local
businesspersons conducting trade and commerce government agency established to perform a specific
among the states. To counter these problems, a group function. Administrative law and procedures consti-
of legal scholars and lawyers formed the National tute a dominant element in the regulatory environ-
Conference of Commissioners on Uniform State Laws ment of business.
(NCCUSL, www.uniformlaws.org) in 1892 to draft Rules issued by various administrative agencies
uniform laws (model statutes) for the states to con- now affect almost every aspect of a business’s opera-
sider adopting. The NCCUSL still exists today and tions. Regulations govern a business’s capital struc-
continues to issue uniform laws. ture and financing, its hiring and firing procedures,
Each state has the option of adopting or rejecting a its relations with employees and unions, and the way
uniform law. Only if a state legislature adopts a uniform it manufactures and markets its products. Regulations
law does that law become part of the statutory law of that enacted to protect the environment also often play a
state. Note that a state legislature may adopt all or part significant role in business operations.
of a uniform law as it is written, or the legislature may
rewrite the law however the legislature wishes. Hence, Federal Agencies At the national level, the cabinet
even though many states may have adopted a uniform departments of the executive branch include numer-
law, those states’ laws may not be entirely “uniform.” ous executive agencies. The U.S. Food and Drug
The earliest uniform law, the Uniform Negotiable Administration, for example, is an agency within
Instruments Law, was completed by 1896 and adopted the U.S. Department of Health and Human Services.
in every state by the 1920s (although not all states Executive agencies are subject to the authority of the
used exactly the same wording). Over the following president, who has the power to appoint and remove
decades, other acts were drawn up in a similar man- their officers.
ner. In all, more than two hundred uniform acts have There are also major independent regulatory
been issued by the NCCUSL since its inception. The agencies at the federal level, such as the Federal Trade
most ambitious uniform act of all, however, is the Commission, the Securities and Exchange Commission,
Uniform Commercial Code. and the Federal Communications Commission. The
president’s power is less pronounced in regard to inde-
The Uniform Commercial Code One of the most pendent agencies, whose officers serve for fixed terms
important uniform acts is the Uniform Commercial and cannot be removed without just cause.
Code (UCC), which was created through the joint
efforts of the NCCUSL and the American Law State and Local Agencies There are administrative
Institute.1 The UCC was first issued in 1952 and agencies at the state and local levels as well. Commonly,
has been adopted in all fifty states,2 the District of a state agency (such as a state pollution-control agency)
Columbia, and the Virgin Islands. is created as a parallel to a federal agency (such as the
The UCC facilitates commerce among the states by Environmental Protection Agency). Just as federal stat-
providing a uniform, yet flexible, set of rules govern- utes take precedence over conflicting state statutes,
ing commercial transactions. Because of its impor- federal agency regulations take precedence over con-
tance in the area of commercial law, we cite the UCC flicting state regulations.
frequently in this text. We also present Article 2 of the
UCC in Appendix C. From time to time, the NCCUSL
revises the articles contained in the UCC and submits Case Law and
the revised versions to the states for adoption. Common Law Doctrines
The rules of law announced in court decisions consti-
Administrative Law tute another basic source of American law. These rules
Another important source of American law is include interpretations of constitutional provisions,
administrative law, which consists of the rules, of statutes enacted by legislatures, and of regulations
created by administrative agencies.
1. This institute was formed in the 1920s and consists of practicing Today, this body of judge-made law is referred to
attorneys, legal scholars, and judges.
2. Louisiana has not adopted Articles 2 and 2A (covering contracts for
as case law. Case law—the doctrines and principles
the sale and lease of goods), however. announced in cases—governs all areas not covered by
6 Unit One The Foundations
statutory law or administrative law and is part of our of general rules that applied throughout the entire
common law tradition. We look at the origins and English realm. Eventually, the common law tradition
characteristics of the common law tradition in some became part of the heritage of all nations that were
detail in the pages that follow. once British colonies, including the United States.
See Concept Summary 1.1 below for a review of the
sources of American law. Courts of law and remedies at law The early
English king’s courts could grant only very limited
kinds of remedies (the legal means to enforce a right
SECTION 3 or redress a wrong). If one person wronged another in
The Common Law Tradition some way, the king’s courts could award as compensa-
tion one or more of the following: (1) land, (2) items
of value, or (3) money.
Because of our colonial heritage, much of American law The courts that awarded this compensation became
is based on the English legal system, which originated known as courts of law, and the three remedies
in medieval England and continued to evolve in the were called remedies at law. (Today, the remedy at
following centuries. Knowledge of this system is neces- law normally takes the form of monetary damages—
sary to understanding the American legal system today. an amount given to a party whose legal interests have
been injured.) This system made the procedure for
settling disputes more uniform. When a complaining
Early English Courts party wanted a remedy other than economic compen-
The origins of the English legal system—and thus the sation, however, the courts of law could do nothing,
U.S. legal system as well—date back to 1066, when the so “no remedy, no right.”
Normans conquered England. William the Conqueror
and his successors began the process of unifying the Courts of equity Equity is a branch of law—
country under their rule. One of the means they used founded on notions of justice and fair dealing—that
to do this was the establishment of the king’s courts, seeks to supply a remedy when no adequate remedy at
or curiae regis. law is available. When individuals could not obtain an
Before the Norman Conquest, disputes had been adequate remedy in a court of law, they petitioned the
settled according to the local legal customs and tra- king for relief. Most of these petitions were decided
ditions in various regions of the country. The king’s by an adviser to the king, called a chancellor, who
courts sought to establish a uniform set of customs for had the power to grant new and unique remedies.
the country as a whole. What evolved in these courts Eventually, formal chancery courts, or courts of
was the beginning of the common law—a body equity, were established.
Concept
Concept Summary 8.1
Summary 1.1
Sources of American Law
Source Description
Constitutional Law The law as expressed in the U.S. Constitution and the state constitutions. The U.S. Constitution is
the supreme law of the land. State constitutions are supreme within state borders to the extent
that they do not violate a clause of the U.S. Constitution or a federal law.
Statutory Law Laws (statutes and ordinances) enacted by federal, state, and local legislatures and governing bod-
ies. None of these laws can violate the U.S. Constitution or the relevant state constitution. Uniform
laws, when adopted by a state, become statutory law in that state.
Administrative Law The rules, orders, and decisions of federal, state, and local government administrative agencies.
Case Law and Judge-made law, including interpretations of constitutional provisions, of statutes enacted by
Common Law Doctrines legislatures, and of regulations created by administrative agencies.
remedies in equity The remedies granted by the equitable doctrine of laches (a term derived from
equity courts became known as remedies in equity, the Latin laxus, meaning “lax” or “negligent”), and it
or equitable remedies. These remedies include specific can be used as a defense. A defense is an argument
performance, an injunction, and rescission. Specific raised by the defendant (the party being sued) indi-
performance involves ordering a party to perform an cating why the plaintiff (the suing party) should
agreement as promised. An injunction is an order to not obtain the remedy sought. (Note that in equity
a party to cease engaging in a specific activity or to proceedings, the party bringing a lawsuit is called the
undo some wrong or injury. Rescission is the cancella- petitioner, and the party being sued is referred to as
tion of a contractual obligation. We will discuss these the respondent.)
and other equitable remedies in more detail at appro- The doctrine of laches arose to encourage peo-
priate points in the chapters that follow, particularly ple to bring lawsuits while the evidence was fresh.
in Chapter 10. What constitutes a reasonable time, of course, varies
As a general rule, today’s courts, like the early according to the circumstances of the case. Time peri-
English courts, will not grant equitable remedies ods for different types of cases are now usually fixed
unless the remedy at law—monetary damages—is by statutes of limitations. After the time allowed
inadequate. ▶ Example 1.1 Ted forms a contract under a statute of limitations has expired, no action
(a legally binding agreement—see Chapter 9) to pur- (lawsuit) can be brought, no matter how strong the
chase a parcel of land that he thinks will be perfect case was originally.
for his future home. The seller breaches, or fails to
fulfill, this agreement. Ted could sue the seller for the Legal and
return of any deposits or down payment he might
have made on the land, but this is not the remedy he Equitable Remedies Today
really seeks. What Ted wants is to have the court order The establishment of courts of equity in medieval
the seller to perform the contract. In other words, England resulted in two distinct court systems: courts
Ted wants the court to grant the equitable remedy of of law and courts of equity. The courts had different
specific performance because monetary damages are sets of judges and granted different types of remedies.
inadequate in this situation. ◀ During the nineteenth century, however, most states
in the United States adopted rules of procedure that
Equitable Maxims In fashioning appropriate reme- resulted in the combining of courts of law and equity.
dies, judges often were (and continue to be) guided by A party now may request both legal and equitable
so-called equitable maxims—propositions or gen- remedies in the same action, and the trial court judge
eral statements of equitable rules. Exhibit 1–2 below may grant either or both forms of relief.
lists some important equitable maxims. The distinction between legal and equitable rem-
The last maxim listed in that exhibit—“Equity aids edies remains relevant to students of business law,
the vigilant, not those who rest on their rights”— however, because these remedies differ. To seek the
merits special attention. It has become known as the proper remedy for a wrong, one must know what
EXHIBIT 1–2 Equitable Maxims

1. Whoever seeks equity must do equity. (Anyone who wishes to be treated fairly must treat others fairly.)
2. Where there is equal equity, the law must prevail. (The law will determine the outcome of a controversy in which
the merits of both sides are equal.)
3. One seeking the aid of an equity court must come to the court with clean hands. (The plaintiff must have acted fairly
and honestly.)
4. Equity will not suffer a wrong to be without a remedy. (Equitable relief will be awarded when there is a right to relief
and there is no adequate remedy at law.)
5. Equity regards substance rather than form. (Equity is more concerned with fairness and justice than with legal
technicalities.)
6. Equity aids the vigilant, not those who rest on their rights. (Equity will not help those who neglect their rights for an
unreasonable period of time.)
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DANCE ON STILTS AT THE GIRLS’ UNYAGO, NIUCHI
Newala, too, suffers from the distance of its water-supply—at least

the Newala of to-day does; there was once another Newala in a lovely
valley at the foot of the plateau. I visited it and found scarcely a trace
of houses, only a Christian cemetery, with the graves of several
missionaries and their converts, remaining as a monument of its
former glories. But the surroundings are wonderfully beautiful. A
thick grove of splendid mango-trees closes in the weather-worn
crosses and headstones; behind them, combining the useful and the
agreeable, is a whole plantation of lemon-trees covered with ripe
fruit; not the small African kind, but a much larger and also juicier
imported variety, which drops into the hands of the passing traveller,
without calling for any exertion on his part. Old Newala is now under
the jurisdiction of the native pastor, Daudi, at Chingulungulu, who,
as I am on very friendly terms with him, allows me, as a matter of
course, the use of this lemon-grove during my stay at Newala.
FEET MUTILATED BY THE RAVAGES OF THE “JIGGER”
(Sarcopsylla penetrans)
The water-supply of New Newala is in the bottom of the valley,

some 1,600 feet lower down. The way is not only long and fatiguing,
but the water, when we get it, is thoroughly bad. We are suffering not
only from this, but from the fact that the arrangements at Newala are
nothing short of luxurious. We have a separate kitchen—a hut built
against the boma palisade on the right of the baraza, the interior of
which is not visible from our usual position. Our two cooks were not
long in finding this out, and they consequently do—or rather neglect
to do—what they please. In any case they do not seem to be very
particular about the boiling of our drinking-water—at least I can
attribute to no other cause certain attacks of a dysenteric nature,
from which both Knudsen and I have suffered for some time. If a
man like Omari has to be left unwatched for a moment, he is capable
of anything. Besides this complaint, we are inconvenienced by the
state of our nails, which have become as hard as glass, and crack on
the slightest provocation, and I have the additional infliction of
pimples all over me. As if all this were not enough, we have also, for
the last week been waging war against the jigger, who has found his
Eldorado in the hot sand of the Makonde plateau. Our men are seen
all day long—whenever their chronic colds and the dysentery likewise
raging among them permit—occupied in removing this scourge of
Africa from their feet and trying to prevent the disastrous
consequences of its presence. It is quite common to see natives of
this place with one or two toes missing; many have lost all their toes,
or even the whole front part of the foot, so that a well-formed leg
ends in a shapeless stump. These ravages are caused by the female of
Sarcopsylla penetrans, which bores its way under the skin and there
develops an egg-sac the size of a pea. In all books on the subject, it is
stated that one’s attention is called to the presence of this parasite by
an intolerable itching. This agrees very well with my experience, so
far as the softer parts of the sole, the spaces between and under the
toes, and the side of the foot are concerned, but if the creature
penetrates through the harder parts of the heel or ball of the foot, it
may escape even the most careful search till it has reached maturity.
Then there is no time to be lost, if the horrible ulceration, of which
we see cases by the dozen every day, is to be prevented. It is much
easier, by the way, to discover the insect on the white skin of a
European than on that of a native, on which the dark speck scarcely
shows. The four or five jiggers which, in spite of the fact that I
constantly wore high laced boots, chose my feet to settle in, were
taken out for me by the all-accomplished Knudsen, after which I
thought it advisable to wash out the cavities with corrosive
sublimate. The natives have a different sort of disinfectant—they fill
the hole with scraped roots. In a tiny Makua village on the slope of
the plateau south of Newala, we saw an old woman who had filled all
the spaces under her toe-nails with powdered roots by way of
prophylactic treatment. What will be the result, if any, who can say?
The rest of the many trifling ills which trouble our existence are
really more comic than serious. In the absence of anything else to
smoke, Knudsen and I at last opened a box of cigars procured from
the Indian store-keeper at Lindi, and tried them, with the most
distressing results. Whether they contain opium or some other
narcotic, neither of us can say, but after the tenth puff we were both
“off,” three-quarters stupefied and unspeakably wretched. Slowly we
recovered—and what happened next? Half-an-hour later we were
once more smoking these poisonous concoctions—so insatiable is the
craving for tobacco in the tropics.
Even my present attacks of fever scarcely deserve to be taken
seriously. I have had no less than three here at Newala, all of which
have run their course in an incredibly short time. In the early
afternoon, I am busy with my old natives, asking questions and
making notes. The strong midday coffee has stimulated my spirits to
an extraordinary degree, the brain is active and vigorous, and work
progresses rapidly, while a pleasant warmth pervades the whole
body. Suddenly this gives place to a violent chill, forcing me to put on
my overcoat, though it is only half-past three and the afternoon sun
is at its hottest. Now the brain no longer works with such acuteness
and logical precision; more especially does it fail me in trying to
establish the syntax of the difficult Makua language on which I have
ventured, as if I had not enough to do without it. Under the
circumstances it seems advisable to take my temperature, and I do
so, to save trouble, without leaving my seat, and while going on with
my work. On examination, I find it to be 101·48°. My tutors are
abruptly dismissed and my bed set up in the baraza; a few minutes
later I am in it and treating myself internally with hot water and
lemon-juice.
Three hours later, the thermometer marks nearly 104°, and I make
them carry me back into the tent, bed and all, as I am now perspiring
heavily, and exposure to the cold wind just beginning to blow might
mean a fatal chill. I lie still for a little while, and then find, to my
great relief, that the temperature is not rising, but rather falling. This
is about 7.30 p.m. At 8 p.m. I find, to my unbounded astonishment,
that it has fallen below 98·6°, and I feel perfectly well. I read for an
hour or two, and could very well enjoy a smoke, if I had the
wherewithal—Indian cigars being out of the question.
Having no medical training, I am at a loss to account for this state
of things. It is impossible that these transitory attacks of high fever
should be malarial; it seems more probable that they are due to a
kind of sunstroke. On consulting my note-book, I become more and
more inclined to think this is the case, for these attacks regularly
follow extreme fatigue and long exposure to strong sunshine. They at
least have the advantage of being only short interruptions to my
work, as on the following morning I am always quite fresh and fit.
My treasure of a cook is suffering from an enormous hydrocele which
makes it difficult for him to get up, and Moritz is obliged to keep in
the dark on account of his inflamed eyes. Knudsen’s cook, a raw boy
from somewhere in the bush, knows still less of cooking than Omari;
consequently Nils Knudsen himself has been promoted to the vacant
post. Finding that we had come to the end of our supplies, he began
by sending to Chingulungulu for the four sucking-pigs which we had
bought from Matola and temporarily left in his charge; and when
they came up, neatly packed in a large crate, he callously slaughtered
the biggest of them. The first joint we were thoughtless enough to
entrust for roasting to Knudsen’s mshenzi cook, and it was
consequently uneatable; but we made the rest of the animal into a
jelly which we ate with great relish after weeks of underfeeding,
consuming incredible helpings of it at both midday and evening
meals. The only drawback is a certain want of variety in the tinned
vegetables. Dr. Jäger, to whom the Geographical Commission
entrusted the provisioning of the expeditions—mine as well as his
own—because he had more time on his hands than the rest of us,
seems to have laid in a huge stock of Teltow turnips,[46] an article of
food which is all very well for occasional use, but which quickly palls
when set before one every day; and we seem to have no other tins
left. There is no help for it—we must put up with the turnips; but I
am certain that, once I am home again, I shall not touch them for ten
years to come.
Amid all these minor evils, which, after all, go to make up the
genuine flavour of Africa, there is at least one cheering touch:
Knudsen has, with the dexterity of a skilled mechanic, repaired my 9
× 12 cm. camera, at least so far that I can use it with a little care.
How, in the absence of finger-nails, he was able to accomplish such a
ticklish piece of work, having no tool but a clumsy screw-driver for
taking to pieces and putting together again the complicated
mechanism of the instantaneous shutter, is still a mystery to me; but
he did it successfully. The loss of his finger-nails shows him in a light
contrasting curiously enough with the intelligence evinced by the
above operation; though, after all, it is scarcely surprising after his
ten years’ residence in the bush. One day, at Lindi, he had occasion
to wash a dog, which must have been in need of very thorough
cleansing, for the bottle handed to our friend for the purpose had an
extremely strong smell. Having performed his task in the most
conscientious manner, he perceived with some surprise that the dog
did not appear much the better for it, and was further surprised by
finding his own nails ulcerating away in the course of the next few
days. “How was I to know that carbolic acid has to be diluted?” he
mutters indignantly, from time to time, with a troubled gaze at his
mutilated finger-tips.
Since we came to Newala we have been making excursions in all
directions through the surrounding country, in accordance with old
habit, and also because the akida Sefu did not get together the tribal
elders from whom I wanted information so speedily as he had
promised. There is, however, no harm done, as, even if seen only
from the outside, the country and people are interesting enough.
The Makonde plateau is like a large rectangular table rounded off
at the corners. Measured from the Indian Ocean to Newala, it is
about seventy-five miles long, and between the Rovuma and the
Lukuledi it averages fifty miles in breadth, so that its superficial area
is about two-thirds of that of the kingdom of Saxony. The surface,
however, is not level, but uniformly inclined from its south-western
edge to the ocean. From the upper edge, on which Newala lies, the
eye ranges for many miles east and north-east, without encountering
any obstacle, over the Makonde bush. It is a green sea, from which
here and there thick clouds of smoke rise, to show that it, too, is
inhabited by men who carry on their tillage like so many other
primitive peoples, by cutting down and burning the bush, and
manuring with the ashes. Even in the radiant light of a tropical day
such a fire is a grand sight.
Much less effective is the impression produced just now by the
great western plain as seen from the edge of the plateau. As often as
time permits, I stroll along this edge, sometimes in one direction,
sometimes in another, in the hope of finding the air clear enough to
let me enjoy the view; but I have always been disappointed.
Wherever one looks, clouds of smoke rise from the burning bush,
and the air is full of smoke and vapour. It is a pity, for under more
favourable circumstances the panorama of the whole country up to
the distant Majeje hills must be truly magnificent. It is of little use
taking photographs now, and an outline sketch gives a very poor idea
of the scenery. In one of these excursions I went out of my way to
make a personal attempt on the Makonde bush. The present edge of
the plateau is the result of a far-reaching process of destruction
through erosion and denudation. The Makonde strata are
everywhere cut into by ravines, which, though short, are hundreds of
yards in depth. In consequence of the loose stratification of these
beds, not only are the walls of these ravines nearly vertical, but their
upper end is closed by an equally steep escarpment, so that the
western edge of the Makonde plateau is hemmed in by a series of
deep, basin-like valleys. In order to get from one side of such a ravine
to the other, I cut my way through the bush with a dozen of my men.
It was a very open part, with more grass than scrub, but even so the
short stretch of less than two hundred yards was very hard work; at
the end of it the men’s calicoes were in rags and they themselves
bleeding from hundreds of scratches, while even our strong khaki
suits had not escaped scatheless.
NATIVE PATH THROUGH THE MAKONDE BUSH, NEAR

MAHUTA
I see increasing reason to believe that the view formed some time
back as to the origin of the Makonde bush is the correct one. I have
no doubt that it is not a natural product, but the result of human
occupation. Those parts of the high country where man—as a very
slight amount of practice enables the eye to perceive at once—has not
yet penetrated with axe and hoe, are still occupied by a splendid
timber forest quite able to sustain a comparison with our mixed
forests in Germany. But wherever man has once built his hut or tilled
his field, this horrible bush springs up. Every phase of this process
may be seen in the course of a couple of hours’ walk along the main
road. From the bush to right or left, one hears the sound of the axe—
not from one spot only, but from several directions at once. A few
steps further on, we can see what is taking place. The brush has been
cut down and piled up in heaps to the height of a yard or more,
between which the trunks of the large trees stand up like the last
pillars of a magnificent ruined building. These, too, present a
melancholy spectacle: the destructive Makonde have ringed them—
cut a broad strip of bark all round to ensure their dying off—and also
piled up pyramids of brush round them. Father and son, mother and
son-in-law, are chopping away perseveringly in the background—too
busy, almost, to look round at the white stranger, who usually excites
so much interest. If you pass by the same place a week later, the piles
of brushwood have disappeared and a thick layer of ashes has taken
the place of the green forest. The large trees stretch their
smouldering trunks and branches in dumb accusation to heaven—if
they have not already fallen and been more or less reduced to ashes,
perhaps only showing as a white stripe on the dark ground.
This work of destruction is carried out by the Makonde alike on the
virgin forest and on the bush which has sprung up on sites already
cultivated and deserted. In the second case they are saved the trouble
of burning the large trees, these being entirely absent in the
secondary bush.
After burning this piece of forest ground and loosening it with the
hoe, the native sows his corn and plants his vegetables. All over the
country, he goes in for bed-culture, which requires, and, in fact,
receives, the most careful attention. Weeds are nowhere tolerated in
the south of German East Africa. The crops may fail on the plains,
where droughts are frequent, but never on the plateau with its
abundant rains and heavy dews. Its fortunate inhabitants even have
the satisfaction of seeing the proud Wayao and Wamakua working
for them as labourers, driven by hunger to serve where they were
accustomed to rule.
But the light, sandy soil is soon exhausted, and would yield no
harvest the second year if cultivated twice running. This fact has
been familiar to the native for ages; consequently he provides in
time, and, while his crop is growing, prepares the next plot with axe
and firebrand. Next year he plants this with his various crops and
lets the first piece lie fallow. For a short time it remains waste and
desolate; then nature steps in to repair the destruction wrought by
man; a thousand new growths spring out of the exhausted soil, and
even the old stumps put forth fresh shoots. Next year the new growth
is up to one’s knees, and in a few years more it is that terrible,
impenetrable bush, which maintains its position till the black
occupier of the land has made the round of all the available sites and
come back to his starting point.
The Makonde are, body and soul, so to speak, one with this bush.
According to my Yao informants, indeed, their name means nothing
else but “bush people.” Their own tradition says that they have been
settled up here for a very long time, but to my surprise they laid great
stress on an original immigration. Their old homes were in the
south-east, near Mikindani and the mouth of the Rovuma, whence
their peaceful forefathers were driven by the continual raids of the
Sakalavas from Madagascar and the warlike Shirazis[47] of the coast,
to take refuge on the almost inaccessible plateau. I have studied
African ethnology for twenty years, but the fact that changes of
population in this apparently quiet and peaceable corner of the earth
could have been occasioned by outside enterprises taking place on
the high seas, was completely new to me. It is, no doubt, however,
correct.
The charming tribal legend of the Makonde—besides informing us
of other interesting matters—explains why they have to live in the
thickest of the bush and a long way from the edge of the plateau,
instead of making their permanent homes beside the purling brooks
and springs of the low country.
“The place where the tribe originated is Mahuta, on the southern
side of the plateau towards the Rovuma, where of old time there was
nothing but thick bush. Out of this bush came a man who never
washed himself or shaved his head, and who ate and drank but little.
He went out and made a human figure from the wood of a tree
growing in the open country, which he took home to his abode in the
bush and there set it upright. In the night this image came to life and
was a woman. The man and woman went down together to the
Rovuma to wash themselves. Here the woman gave birth to a still-
born child. They left that place and passed over the high land into the
valley of the Mbemkuru, where the woman had another child, which
was also born dead. Then they returned to the high bush country of
Mahuta, where the third child was born, which lived and grew up. In
course of time, the couple had many more children, and called
themselves Wamatanda. These were the ancestral stock of the
Makonde, also called Wamakonde,[48] i.e., aborigines. Their
forefather, the man from the bush, gave his children the command to
bury their dead upright, in memory of the mother of their race who
was cut out of wood and awoke to life when standing upright. He also
warned them against settling in the valleys and near large streams,
for sickness and death dwelt there. They were to make it a rule to
have their huts at least an hour’s walk from the nearest watering-
place; then their children would thrive and escape illness.”
The explanation of the name Makonde given by my informants is
somewhat different from that contained in the above legend, which I
extract from a little book (small, but packed with information), by
Pater Adams, entitled Lindi und sein Hinterland. Otherwise, my
results agree exactly with the statements of the legend. Washing?
Hapana—there is no such thing. Why should they do so? As it is, the
supply of water scarcely suffices for cooking and drinking; other
people do not wash, so why should the Makonde distinguish himself
by such needless eccentricity? As for shaving the head, the short,
woolly crop scarcely needs it,[49] so the second ancestral precept is
likewise easy enough to follow. Beyond this, however, there is
nothing ridiculous in the ancestor’s advice. I have obtained from
various local artists a fairly large number of figures carved in wood,
ranging from fifteen to twenty-three inches in height, and
representing women belonging to the great group of the Mavia,
Makonde, and Matambwe tribes. The carving is remarkably well
done and renders the female type with great accuracy, especially the
keloid ornamentation, to be described later on. As to the object and
meaning of their works the sculptors either could or (more probably)
would tell me nothing, and I was forced to content myself with the
scanty information vouchsafed by one man, who said that the figures
were merely intended to represent the nembo—the artificial
deformations of pelele, ear-discs, and keloids. The legend recorded
by Pater Adams places these figures in a new light. They must surely
be more than mere dolls; and we may even venture to assume that
they are—though the majority of present-day Makonde are probably
unaware of the fact—representations of the tribal ancestress.
The references in the legend to the descent from Mahuta to the
Rovuma, and to a journey across the highlands into the Mbekuru
valley, undoubtedly indicate the previous history of the tribe, the
travels of the ancestral pair typifying the migrations of their
descendants. The descent to the neighbouring Rovuma valley, with
its extraordinary fertility and great abundance of game, is intelligible
at a glance—but the crossing of the Lukuledi depression, the ascent
to the Rondo Plateau and the descent to the Mbemkuru, also lie
within the bounds of probability, for all these districts have exactly
the same character as the extreme south. Now, however, comes a
point of especial interest for our bacteriological age. The primitive
Makonde did not enjoy their lives in the marshy river-valleys.
Disease raged among them, and many died. It was only after they
had returned to their original home near Mahuta, that the health
conditions of these people improved. We are very apt to think of the
African as a stupid person whose ignorance of nature is only equalled
by his fear of it, and who looks on all mishaps as caused by evil
spirits and malignant natural powers. It is much more correct to
assume in this case that the people very early learnt to distinguish
districts infested with malaria from those where it is absent.
This knowledge is crystallized in the
ancestral warning against settling in the
valleys and near the great waters, the
dwelling-places of disease and death. At the
same time, for security against the hostile
Mavia south of the Rovuma, it was enacted
that every settlement must be not less than a
certain distance from the southern edge of the
plateau. Such in fact is their mode of life at the
present day. It is not such a bad one, and
certainly they are both safer and more
comfortable than the Makua, the recent
intruders from the south, who have made USUAL METHOD OF
good their footing on the western edge of the CLOSING HUT-DOOR
plateau, extending over a fairly wide belt of
country. Neither Makua nor Makonde show in their dwellings
anything of the size and comeliness of the Yao houses in the plain,
especially at Masasi, Chingulungulu and Zuza’s. Jumbe Chauro, a
Makonde hamlet not far from Newala, on the road to Mahuta, is the
most important settlement of the tribe I have yet seen, and has fairly
spacious huts. But how slovenly is their construction compared with
the palatial residences of the elephant-hunters living in the plain.
The roofs are still more untidy than in the general run of huts during
the dry season, the walls show here and there the scanty beginnings
or the lamentable remains of the mud plastering, and the interior is a
veritable dog-kennel; dirt, dust and disorder everywhere. A few huts
only show any attempt at division into rooms, and this consists
merely of very roughly-made bamboo partitions. In one point alone
have I noticed any indication of progress—in the method of fastening
the door. Houses all over the south are secured in a simple but
ingenious manner. The door consists of a set of stout pieces of wood
or bamboo, tied with bark-string to two cross-pieces, and moving in
two grooves round one of the door-posts, so as to open inwards. If
the owner wishes to leave home, he takes two logs as thick as a man’s
upper arm and about a yard long. One of these is placed obliquely
against the middle of the door from the inside, so as to form an angle
of from 60° to 75° with the ground. He then places the second piece
horizontally across the first, pressing it downward with all his might.
It is kept in place by two strong posts planted in the ground a few
inches inside the door. This fastening is absolutely safe, but of course
cannot be applied to both doors at once, otherwise how could the
owner leave or enter his house? I have not yet succeeded in finding
out how the back door is fastened.
MAKONDE LOCK AND KEY AT JUMBE CHAURO

This is the general way of closing a house. The Makonde at Jumbe
Chauro, however, have a much more complicated, solid and original
one. Here, too, the door is as already described, except that there is
only one post on the inside, standing by itself about six inches from
one side of the doorway. Opposite this post is a hole in the wall just
large enough to admit a man’s arm. The door is closed inside by a
large wooden bolt passing through a hole in this post and pressing
with its free end against the door. The other end has three holes into
which fit three pegs running in vertical grooves inside the post. The
door is opened with a wooden key about a foot long, somewhat
curved and sloped off at the butt; the other end has three pegs
corresponding to the holes, in the bolt, so that, when it is thrust
through the hole in the wall and inserted into the rectangular
opening in the post, the pegs can be lifted and the bolt drawn out.[50]
MODE OF INSERTING THE KEY
With no small pride first one householder and then a second

showed me on the spot the action of this greatest invention of the
Makonde Highlands. To both with an admiring exclamation of
“Vizuri sana!” (“Very fine!”). I expressed the wish to take back these
marvels with me to Ulaya, to show the Wazungu what clever fellows
the Makonde are. Scarcely five minutes after my return to camp at
Newala, the two men came up sweating under the weight of two
heavy logs which they laid down at my feet, handing over at the same
time the keys of the fallen fortress. Arguing, logically enough, that if
the key was wanted, the lock would be wanted with it, they had taken
their axes and chopped down the posts—as it never occurred to them
to dig them out of the ground and so bring them intact. Thus I have
two badly damaged specimens, and the owners, instead of praise,
come in for a blowing-up.
The Makua huts in the environs of Newala are especially
miserable; their more than slovenly construction reminds one of the
temporary erections of the Makua at Hatia’s, though the people here
have not been concerned in a war. It must therefore be due to
congenital idleness, or else to the absence of a powerful chief. Even
the baraza at Mlipa’s, a short hour’s walk south-east of Newala,
shares in this general neglect. While public buildings in this country
are usually looked after more or less carefully, this is in evident
danger of being blown over by the first strong easterly gale. The only
attractive object in this whole district is the grave of the late chief
Mlipa. I visited it in the morning, while the sun was still trying with
partial success to break through the rolling mists, and the circular
grove of tall euphorbias, which, with a broken pot, is all that marks
the old king’s resting-place, impressed one with a touch of pathos.
Even my very materially-minded carriers seemed to feel something
of the sort, for instead of their usual ribald songs, they chanted
solemnly, as we marched on through the dense green of the Makonde
bush:—
“We shall arrive with the great master; we stand in a row and have
no fear about getting our food and our money from the Serkali (the
Government). We are not afraid; we are going along with the great
master, the lion; we are going down to the coast and back.”
With regard to the characteristic features of the various tribes here
on the western edge of the plateau, I can arrive at no other
conclusion than the one already come to in the plain, viz., that it is
impossible for anyone but a trained anthropologist to assign any
given individual at once to his proper tribe. In fact, I think that even
an anthropological specialist, after the most careful examination,
might find it a difficult task to decide. The whole congeries of peoples
collected in the region bounded on the west by the great Central
African rift, Tanganyika and Nyasa, and on the east by the Indian
Ocean, are closely related to each other—some of their languages are
only distinguished from one another as dialects of the same speech,
and no doubt all the tribes present the same shape of skull and
structure of skeleton. Thus, surely, there can be no very striking
differences in outward appearance.
Even did such exist, I should have no time
to concern myself with them, for day after day,
I have to see or hear, as the case may be—in
any case to grasp and record—an
extraordinary number of ethnographic
phenomena. I am almost disposed to think it
fortunate that some departments of inquiry, at
least, are barred by external circumstances.
Chief among these is the subject of iron-
working. We are apt to think of Africa as a
country where iron ore is everywhere, so to
speak, to be picked up by the roadside, and
where it would be quite surprising if the
inhabitants had not learnt to smelt the
material ready to their hand. In fact, the
knowledge of this art ranges all over the
continent, from the Kabyles in the north to the
Kafirs in the south. Here between the Rovuma
and the Lukuledi the conditions are not so
favourable. According to the statements of the
Makonde, neither ironstone nor any other
form of iron ore is known to them. They have
not therefore advanced to the art of smelting
the metal, but have hitherto bought all their
THE ANCESTRESS OF
THE MAKONDE
iron implements from neighbouring tribes.
Even in the plain the inhabitants are not much
better off. Only one man now living is said to
understand the art of smelting iron. This old fundi lives close to
Huwe, that isolated, steep-sided block of granite which rises out of
the green solitude between Masasi and Chingulungulu, and whose
jagged and splintered top meets the traveller’s eye everywhere. While
still at Masasi I wished to see this man at work, but was told that,
frightened by the rising, he had retired across the Rovuma, though
he would soon return. All subsequent inquiries as to whether the
fundi had come back met with the genuine African answer, “Bado”
(“Not yet”).
BRAZIER
Some consolation was afforded me by a brassfounder, whom I

came across in the bush near Akundonde’s. This man is the favourite
of women, and therefore no doubt of the gods; he welds the glittering
brass rods purchased at the coast into those massive, heavy rings
which, on the wrists and ankles of the local fair ones, continually give
me fresh food for admiration. Like every decent master-craftsman he
had all his tools with him, consisting of a pair of bellows, three
crucibles and a hammer—nothing more, apparently. He was quite
willing to show his skill, and in a twinkling had fixed his bellows on
the ground. They are simply two goat-skins, taken off whole, the four
legs being closed by knots, while the upper opening, intended to
admit the air, is kept stretched by two pieces of wood. At the lower
end of the skin a smaller opening is left into which a wooden tube is
stuck. The fundi has quickly borrowed a heap of wood-embers from
the nearest hut; he then fixes the free ends of the two tubes into an
earthen pipe, and clamps them to the ground by means of a bent
piece of wood. Now he fills one of his small clay crucibles, the dross
on which shows that they have been long in use, with the yellow
material, places it in the midst of the embers, which, at present are
only faintly glimmering, and begins his work. In quick alternation
the smith’s two hands move up and down with the open ends of the
bellows; as he raises his hand he holds the slit wide open, so as to let
the air enter the skin bag unhindered. In pressing it down he closes
the bag, and the air puffs through the bamboo tube and clay pipe into
the fire, which quickly burns up. The smith, however, does not keep
on with this work, but beckons to another man, who relieves him at
the bellows, while he takes some more tools out of a large skin pouch
carried on his back. I look on in wonder as, with a smooth round
stick about the thickness of a finger, he bores a few vertical holes into
the clean sand of the soil. This should not be difficult, yet the man
seems to be taking great pains over it. Then he fastens down to the
ground, with a couple of wooden clamps, a neat little trough made by
splitting a joint of bamboo in half, so that the ends are closed by the
two knots. At last the yellow metal has attained the right consistency,
and the fundi lifts the crucible from the fire by means of two sticks
split at the end to serve as tongs. A short swift turn to the left—a
tilting of the crucible—and the molten brass, hissing and giving forth
clouds of smoke, flows first into the bamboo mould and then into the
holes in the ground.
The technique of this backwoods craftsman may not be very far
advanced, but it cannot be denied that he knows how to obtain an
adequate result by the simplest means. The ladies of highest rank in
this country—that is to say, those who can afford it, wear two kinds
of these massive brass rings, one cylindrical, the other semicircular
in section. The latter are cast in the most ingenious way in the
bamboo mould, the former in the circular hole in the sand. It is quite
a simple matter for the fundi to fit these bars to the limbs of his fair
customers; with a few light strokes of his hammer he bends the
pliable brass round arm or ankle without further inconvenience to
the wearer.
SHAPING THE POT
SMOOTHING WITH MAIZE-COB
CUTTING THE EDGE

FINISHING THE BOTTOM
LAST SMOOTHING BEFORE

BURNING
FIRING THE BRUSH-PILE

LIGHTING THE FARTHER SIDE OF
THE PILE
TURNING THE RED-HOT VESSEL
NYASA WOMAN MAKING POTS AT MASASI

Pottery is an art which must always and everywhere excite the
interest of the student, just because it is so intimately connected with
the development of human culture, and because its relics are one of
the principal factors in the reconstruction of our own condition in
prehistoric times. I shall always remember with pleasure the two or
three afternoons at Masasi when Salim Matola’s mother, a slightly-
built, graceful, pleasant-looking woman, explained to me with
touching patience, by means of concrete illustrations, the ceramic art
of her people. The only implements for this primitive process were a
lump of clay in her left hand, and in the right a calabash containing
the following valuables: the fragment of a maize-cob stripped of all
its grains, a smooth, oval pebble, about the size of a pigeon’s egg, a
few chips of gourd-shell, a bamboo splinter about the length of one’s
hand, a small shell, and a bunch of some herb resembling spinach.
Nothing more. The woman scraped with the
shell a round, shallow hole in the soft, fine
sand of the soil, and, when an active young
girl had filled the calabash with water for her,
she began to knead the clay. As if by magic it
gradually assumed the shape of a rough but
already well-shaped vessel, which only wanted
a little touching up with the instruments
before mentioned. I looked out with the
MAKUA WOMAN closest attention for any indication of the use
MAKING A POT. of the potter’s wheel, in however rudimentary
SHOWS THE a form, but no—hapana (there is none). The
BEGINNINGS OF THE embryo pot stood firmly in its little
POTTER’S WHEEL
depression, and the woman walked round it in
a stooping posture, whether she was removing
small stones or similar foreign bodies with the maize-cob, smoothing
the inner or outer surface with the splinter of bamboo, or later, after
letting it dry for a day, pricking in the ornamentation with a pointed
bit of gourd-shell, or working out the bottom, or cutting the edge
with a sharp bamboo knife, or giving the last touches to the finished
vessel. This occupation of the women is infinitely toilsome, but it is
without doubt an accurate reproduction of the process in use among
our ancestors of the Neolithic and Bronze ages.
There is no doubt that the invention of pottery, an item in human
progress whose importance cannot be over-estimated, is due to
women. Rough, coarse and unfeeling, the men of the horde range
over the countryside. When the united cunning of the hunters has
succeeded in killing the game; not one of them thinks of carrying
home the spoil. A bright fire, kindled by a vigorous wielding of the
drill, is crackling beside them; the animal has been cleaned and cut
up secundum artem, and, after a slight singeing, will soon disappear
under their sharp teeth; no one all this time giving a single thought
to wife or child.
To what shifts, on the other hand, the primitive wife, and still more
the primitive mother, was put! Not even prehistoric stomachs could
endure an unvarying diet of raw food. Something or other suggested
the beneficial effect of hot water on the majority of approved but
indigestible dishes. Perhaps a neighbour had tried holding the hard
roots or tubers over the fire in a calabash filled with water—or maybe
an ostrich-egg-shell, or a hastily improvised vessel of bark. They
became much softer and more palatable than they had previously
been; but, unfortunately, the vessel could not stand the fire and got
charred on the outside. That can be remedied, thought our
ancestress, and plastered a layer of wet clay round a similar vessel.
This is an improvement; the cooking utensil remains uninjured, but
the heat of the fire has shrunk it, so that it is loose in its shell. The
next step is to detach it, so, with a firm grip and a jerk, shell and
kernel are separated, and pottery is invented. Perhaps, however, the
discovery which led to an intelligent use of the burnt-clay shell, was
made in a slightly different way. Ostrich-eggs and calabashes are not
to be found in every part of the world, but everywhere mankind has
arrived at the art of making baskets out of pliant materials, such as
bark, bast, strips of palm-leaf, supple twigs, etc. Our inventor has no
water-tight vessel provided by nature. “Never mind, let us line the
basket with clay.” This answers the purpose, but alas! the basket gets
burnt over the blazing fire, the woman watches the process of
cooking with increasing uneasiness, fearing a leak, but no leak
appears. The food, done to a turn, is eaten with peculiar relish; and
the cooking-vessel is examined, half in curiosity, half in satisfaction
at the result. The plastic clay is now hard as stone, and at the same
time looks exceedingly well, for the neat plaiting of the burnt basket
is traced all over it in a pretty pattern. Thus, simultaneously with
pottery, its ornamentation was invented.
Primitive woman has another claim to respect. It was the man,
roving abroad, who invented the art of producing fire at will, but the
woman, unable to imitate him in this, has been a Vestal from the
earliest times. Nothing gives so much trouble as the keeping alight of
the smouldering brand, and, above all, when all the men are absent
from the camp. Heavy rain-clouds gather, already the first large
drops are falling, the first gusts of the storm rage over the plain. The
little flame, a greater anxiety to the woman than her own children,
flickers unsteadily in the blast. What is to be done? A sudden thought
occurs to her, and in an instant she has constructed a primitive hut
out of strips of bark, to protect the flame against rain and wind.
This, or something very like it, was the way in which the principle
of the house was discovered; and even the most hardened misogynist
cannot fairly refuse a woman the credit of it. The protection of the
hearth-fire from the weather is the germ from which the human
dwelling was evolved. Men had little, if any share, in this forward
step, and that only at a late stage. Even at the present day, the
plastering of the housewall with clay and the manufacture of pottery
are exclusively the women’s business. These are two very significant
survivals. Our European kitchen-garden, too, is originally a woman’s
invention, and the hoe, the primitive instrument of agriculture, is,
characteristically enough, still used in this department. But the
noblest achievement which we owe to the other sex is unquestionably
the art of cookery. Roasting alone—the oldest process—is one for
which men took the hint (a very obvious one) from nature. It must
have been suggested by the scorched carcase of some animal
overtaken by the destructive forest-fires. But boiling—the process of
improving organic substances by the help of water heated to boiling-
point—is a much later discovery. It is so recent that it has not even
yet penetrated to all parts of the world. The Polynesians understand
how to steam food, that is, to cook it, neatly wrapped in leaves, in a
hole in the earth between hot stones, the air being excluded, and
(sometimes) a few drops of water sprinkled on the stones; but they
do not understand boiling.
To come back from this digression, we find that the slender Nyasa
woman has, after once more carefully examining the finished pot,
put it aside in the shade to dry. On the following day she sends me
word by her son, Salim Matola, who is always on hand, that she is
going to do the burning, and, on coming out of my house, I find her
already hard at work. She has spread on the ground a layer of very
dry sticks, about as thick as one’s thumb, has laid the pot (now of a
yellowish-grey colour) on them, and is piling brushwood round it.
My faithful Pesa mbili, the mnyampara, who has been standing by,
most obligingly, with a lighted stick, now hands it to her. Both of
them, blowing steadily, light the pile on the lee side, and, when the
flame begins to catch, on the weather side also. Soon the whole is in a
blaze, but the dry fuel is quickly consumed and the fire dies down, so
that we see the red-hot vessel rising from the ashes. The woman
turns it continually with a long stick, sometimes one way and
sometimes another, so that it may be evenly heated all over. In
twenty minutes she rolls it out of the ash-heap, takes up the bundle
of spinach, which has been lying for two days in a jar of water, and
sprinkles the red-hot clay with it. The places where the drops fall are
marked by black spots on the uniform reddish-brown surface. With a
sigh of relief, and with visible satisfaction, the woman rises to an
erect position; she is standing just in a line between me and the fire,
from which a cloud of smoke is just rising: I press the ball of my
camera, the shutter clicks—the apotheosis is achieved! Like a
priestess, representative of her inventive sex, the graceful woman
stands: at her feet the hearth-fire she has given us beside her the
invention she has devised for us, in the background the home she has
built for us.
At Newala, also, I have had the manufacture of pottery carried on
in my presence. Technically the process is better than that already
described, for here we find the beginnings of the potter’s wheel,
which does not seem to exist in the plains; at least I have seen
nothing of the sort. The artist, a frightfully stupid Makua woman, did
not make a depression in the ground to receive the pot she was about
to shape, but used instead a large potsherd. Otherwise, she went to
work in much the same way as Salim’s mother, except that she saved
herself the trouble of walking round and round her work by squatting
at her ease and letting the pot and potsherd rotate round her; this is
surely the first step towards a machine. But it does not follow that
the pot was improved by the process. It is true that it was beautifully
rounded and presented a very creditable appearance when finished,
but the numerous large and small vessels which I have seen, and, in
part, collected, in the “less advanced” districts, are no less so. We
moderns imagine that instruments of precision are necessary to
produce excellent results. Go to the prehistoric collections of our
museums and look at the pots, urns and bowls of our ancestors in the
dim ages of the past, and you will at once perceive your error.
MAKING LONGITUDINAL CUT IN
BARK
DRAWING THE BARK OFF THE LOG
REMOVING THE OUTER BARK

BEATING THE BARK
WORKING THE BARK-CLOTH AFTER BEATING, TO MAKE IT

SOFT
MANUFACTURE OF BARK-CLOTH AT NEWALA

To-day, nearly the whole population of German East Africa is
clothed in imported calico. This was not always the case; even now in
some parts of the north dressed skins are still the prevailing wear,
and in the north-western districts—east and north of Lake
Tanganyika—lies a zone where bark-cloth has not yet been
superseded. Probably not many generations have passed since such
bark fabrics and kilts of skins were the only clothing even in the
south. Even to-day, large quantities of this bright-red or drab
material are still to be found; but if we wish to see it, we must look in
the granaries and on the drying stages inside the native huts, where
it serves less ambitious uses as wrappings for those seeds and fruits
which require to be packed with special care. The salt produced at
Masasi, too, is packed for transport to a distance in large sheets of
bark-cloth. Wherever I found it in any degree possible, I studied the
process of making this cloth. The native requisitioned for the
purpose arrived, carrying a log between two and three yards long and
as thick as his thigh, and nothing else except a curiously-shaped
mallet and the usual long, sharp and pointed knife which all men and
boys wear in a belt at their backs without a sheath—horribile dictu!
[51]
Silently he squats down before me, and with two rapid cuts has
drawn a couple of circles round the log some two yards apart, and
slits the bark lengthwise between them with the point of his knife.
With evident care, he then scrapes off the outer rind all round the
log, so that in a quarter of an hour the inner red layer of the bark
shows up brightly-coloured between the two untouched ends. With
some trouble and much caution, he now loosens the bark at one end,
and opens the cylinder. He then stands up, takes hold of the free
edge with both hands, and turning it inside out, slowly but steadily
pulls it off in one piece. Now comes the troublesome work of
scraping all superfluous particles of outer bark from the outside of
the long, narrow piece of material, while the inner side is carefully
scrutinised for defective spots. At last it is ready for beating. Having
signalled to a friend, who immediately places a bowl of water beside
him, the artificer damps his sheet of bark all over, seizes his mallet,
lays one end of the stuff on the smoothest spot of the log, and
hammers away slowly but continuously. “Very simple!” I think to
myself. “Why, I could do that, too!”—but I am forced to change my
opinions a little later on; for the beating is quite an art, if the fabric is
not to be beaten to pieces. To prevent the breaking of the fibres, the
stuff is several times folded across, so as to interpose several
thicknesses between the mallet and the block. At last the required
state is reached, and the fundi seizes the sheet, still folded, by both
ends, and wrings it out, or calls an assistant to take one end while he
holds the other. The cloth produced in this way is not nearly so fine
and uniform in texture as the famous Uganda bark-cloth, but it is
quite soft, and, above all, cheap.
Now, too, I examine the mallet. My craftsman has been using the
simpler but better form of this implement, a conical block of some
hard wood, its base—the striking surface—being scored across and
across with more or less deeply-cut grooves, and the handle stuck
into a hole in the middle. The other and earlier form of mallet is
shaped in the same way, but the head is fastened by an ingenious
network of bark strips into the split bamboo serving as a handle. The
observation so often made, that ancient customs persist longest in
connection with religious ceremonies and in the life of children, here
finds confirmation. As we shall soon see, bark-cloth is still worn
during the unyago,[52] having been prepared with special solemn
ceremonies; and many a mother, if she has no other garment handy,
will still put her little one into a kilt of bark-cloth, which, after all,
looks better, besides being more in keeping with its African
surroundings, than the ridiculous bit of print from Ulaya.
MAKUA WOMEN

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Text and Cases 9th Edition, (Ebook

Unit One Case Analysis Case 3.3 Lhotka

Chapter 6 Unit Two Focus on Ethics:

Unit Four Unit Five

The Limited Liability Company 416

Case 22.2 Morales-Cruz Case Analysis Case 24.3 Jerman v. Carlisle,

Instructors can utilize CengageNOW to upload Multi-language support, an equation editor,

New Spotlight Cases and New Insight Features

New Case Analysis Cases with Emphasis on Business and

Managerial Implications them for self-study prior to completing homework

Business Case Problem with protected portion of the Instructor’s Companion

The Legal Environment • Instructor’s Manual. Includes sections

• Chapter 12 (Torts) and Chapter 13 and partnerships—as well as issues affecting

Acknowledgments for Previous Editions

Peter W. Allan David Cooper David Redle

Nena Ellison Melanie Morris William H. Volz

Your professionalism only

SECTION 1 Many Different Laws May

Constitutional Law Statutory Law

EXHIBIT 1–2 Equitable Maxims

Newala, too, suffers from the distance of its water-supply—at least

The water-supply of New Newala is in the bottom of the valley,

NATIVE PATH THROUGH THE MAKONDE BUSH, NEAR

MAKONDE LOCK AND KEY AT JUMBE CHAURO

MODE OF INSERTING THE KEY

With no small pride first one householder and then a second

Some consolation was afforded me by a brassfounder, whom I

SMOOTHING WITH MAIZE-COB

CUTTING THE EDGE

LAST SMOOTHING BEFORE

FIRING THE BRUSH-PILE

TURNING THE RED-HOT VESSEL

NYASA WOMAN MAKING POTS AT MASASI

DRAWING THE BARK OFF THE LOG

REMOVING THE OUTER BARK

WORKING THE BARK-CLOTH AFTER BEATING, TO MAKE IT

MANUFACTURE OF BARK-CLOTH AT NEWALA

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