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Business Law
Today
Standard Edition
Text & Summarized Cases

Roger LeRoy Miller


Institute for University Studies
Arlington, Texas

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

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Business Law Today, Standard Edition, Text & © 2022, 2020 Cengage Learning, Inc.
Summarized Cases 13th Edition
WCN: 02-300
Roger LeRoy Miller
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Printed in the United States of America


Print Number: 01 Print Year: 2021

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Contents in Brief
Unit 1 The Legal Environment of Business 1 Unit 5 Business Organization 651
1 Law and Legal Reasoning 2 26 Sole Proprietorships and Franchises 652
2 Constitutional Law 31 27 All Forms of Partnership 668
3 Ethics in Business 56 28 Limited Liability Companies and Special Business Forms 691
4 Courts and Alternative Dispute Resolution 85 29 Corporation 708
5 Tort Law 119 30 Investor Protection, Insider Trading, and Corporate
6 Product Liability 146 Governance 743
7 Intellectual Property Rights 166
8 Internet Law, Social Media, and Privacy 192 Unit 6 Government Regulation 771
9 Criminal Law and Cyber Crime 214
31 Antitrust Law and Promoting Competition 772
32 Consumer and Environmental Law 794
Unit 2 Contracts and E-Contracts 243 33 Liability of Accountants and Other Professionals 822
10 Nature and Classification 244
11 Agreement 262 Unit 7 Property and Its Protection 845
12 Consideration, Capacity, and Legality 285
34 Personal Property and Bailments 846
13 Defenses to Contract Enforceability 310
35 Real Property and Landlord-Tenant Law 868
14 Third Party Rights and Discharge 333
36 Insurance, Wills, and Trusts 891
15 Breach and Remedies 357

APPENDICES
Unit 3 Commercial Transactions 377
A How to Brief Cases and Analyze Case Problems A–1
16 Sales and Lease Contracts 378
B The Constitution of the United States A–3
17 Performance and Breach of Sales and Lease Contracts 408
C The Uniform Commercial Code (Excerpts) A–3
18 Negotiable Instruments 438
D Answers to Issue Spotters A–4
19 International and Space Law 469
E Sample Answers for Business Case Problems
20 Banking 490 with Sample Answer A–10
21 Security Interests and Creditors’ Rights 512
22 Bankruptcy 540 Glossary G–1
Table of Cases TC–1
Unit 4 Agency and Employment Law 567 Index I–1
23 Agency Relationships in Business 568
24 Employment, Immigration, and Labor Law 596
25 Employment Discrimination 624

iii

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Contents

Unit 1 The Legal Environment of Business 1


Chapter 1 Privacy Rights 49
■■ Cybersecurity and the Law: Should Apple Help
Law and Legal Reasoning 2 Law Enforcement? 49

Business Activities and the Legal Environment 3


Sources of American Law 4
Chapter 3
The Common Law 8 Ethics in Business 56
■■ Managerial Strategy: The Power of Precedent 10
■■ Landmark in the Law: Equitable Maxims 15 Ethics and the Role of Business 57
■■ Business Web Log: Bogus Bank and Credit Card Accounts
Classifications of Law 15
at Wells Fargo Bank 58
Appendix to Chapter 1 21 ■■ Adapting the Law to the Online Environment: Should
Finding and Analyzing the Law 21 Employees Have a “Right of Disconnecting”? 60
Finding Statutory and Administrative Law 21 Case 3.1: Al-Dabagh v. Case Western Reserve University 62
Finding Case Law 22 Ethical Principles and Philosophies 63
Reading and Understanding Case Law 24 ■■ Managerial Strategy: The Stakeholder Capitalism Movement 68
Exhibit 1A–3 A Sample Court Case 28 Sources of Ethical Issues in Business Decisions 68
Adelman’s Truck Parts Corp. v. Jones Transport 28 Case 3.2: Watson Laboratories, Inc. v. State of Mississippi 69
■■ Business Law Analysis: Case Briefing and IRAC Legal Reasoning 29 Making Ethical Business Decisions 72
■■ Business Law Analysis: Applying the IDDR Framework 76
Chapter 2 Business Ethics on a Global Level 76
Appendix to Chapter 3: 84
Constitutional Law 31 Costco Code of Ethics 84
The Constitutional Powers of Government 32
Case 2.1: Classy Cycles, Inc. v. Panama City Beach 33 Chapter 4
■■ Landmark in the Law: Gibbons v. Ogden (1824) 35
Classic Case 2.2: Heart of Atlanta Motel v. United States 36 Courts and Alternative
Business and the Bill of Rights 38 Dispute Resolution 85
■■ Adapting the Law to the Online Environment:
The Judiciary’s Role in American Government 86
Social Media and the Constitution 40
■■ Landmark in the Law: Marbury v. Madison (1803) 86
Spotlight on Beer Labels: Case 2.3: Bad Frog Brewery, Inc. v.
New York State Liquor Authority 43 Basic Judicial Requirements 87
■■ Business Law Analysis: Determining When Public Spotlight on Gucci: Case 4.1: Gucci America, Inc. v. Wang Huoqing 92
Religious Displays Violate the Establishment Clause 45 The State and Federal Court Systems 93
Due Process and Equal Protection 47 Case 4.2: Oxford Tower Apartments, LP v. Frenchie’s Hair Boutique 95

iv

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Contents v

Following a State Court Case 98 Chapter 7


■■ Adapting the Law to the Online Environment:
Using Social Media for Service of Process 99 Intellectual Property Rights 166
Case 4.3: Klipsch Group, Inc. v. ePRO E-Commerce Limited 104
Trademarks 167
Courts Online 107 ■■ Managerial Strategy: Trademarks and Service Marks 167
Alternative Dispute Resolution 108 Classic Case 7.1: Coca-Cola Co. v. Koke Co. of America 168
■■ Business Web Log: Samsung and Forced Arbitration 111 ■■ Business Web Log: Amazon Faces Fake Products 173
Patents 175
Chapter 5 ■■ Business Law Analysis: The Impact of Patent Time Limits 175
Copyrights 178
Tort Law 119 Case 7.2: LEGO A/S v. ZURU Inc. 180
The Basis of Tort Law 119 ■■ Adapting the Law to the Online Environment: Beyoncé,

Intentional Torts against Persons 121 Sampling, and a $20 Million Lawsuit 183
■■ Business Law Analysis: Analyzing Intentional Infliction Case 7.3: Oracle USA, Inc. v. Rimini Street, Inc. 184
of Emotional Distress Claims 123 Trade Secrets 185
Case 5.1: Sky v. Van Der Westhuizen 125 International Protections 186
■■ Adapting the Law to the Online Environment:
Revenge Porn and Invasion of Privacy 128
Chapter 8
Intentional Torts against Property 132
Negligence 134 Internet Law, Social Media, and
Case 5.2: Bogenberger v. Pi Kappa Alpha Corporation, Inc. 135 Privacy 192
■■ Landmark in the Law: Palsgraf v. Long Island
Railroad Co. (1928) 138 Internet Law 193
Spotlight on the Seattle Mariners: Case 5.3: Taylor v. Spotlight on Internet Porn: Case 8.1: Hasbro, Inc. v. Internet
Baseball Club of Seattle, L.P. 140 Entertainment Group, Ltd. 196
Strict Liability 141 Copyrights in Digital Information 197
■■ Landmark in the Law: The Digital Millennium Copyright Act 198
■■ Adapting the Law to the Online Environment: Riot Games,
Chapter 6 Inc., Protects Its Online Video Game Copyrights 199
Product Liability 146 Case 8.2: BMG Rights Management (US), LLC v. Cox
Communications, Inc. 200
Product Liability Claims 146 Social Media 201
■■ Business Web Log: Johnson & Johnson Faces
Online Defamation 204
Continuing Lawsuits Over Its Talcum Powder 147
■■ Business Law Analysis: Immunity of ISPs under the
■■ Landmark in the Law: MacPherson v. Buick Motor Co.
Communications Decency Act 206
(1916) 148
Privacy 206
Case 6.1: Primal Vantage Co. v. O’Bryan 149
Case 8.3: Campbell v. Facebook, Inc. 207
Strict Product Liability 150
■■ Cybersecurity and the Law: The Internet of Things 151
■■ Business Law Analysis: How State Legislation Can Limit Chapter 9
Recovery for Design Defects 153
Case 6.2: Stange v. Janssen Pharmaceuticals, Inc. 155
Criminal Law and Cyber Crime 214
■■ Managerial Strategy: When Is a Warning Legally Bulletproof? 156 Civil Law and Criminal Law 214
Defenses to Product Liability 158 Criminal Liability 217
Spotlight on Injuries from Vaccinations: Case 6.3: Bruesewitz v. ■■ Adapting the Law to the Online Environment: Should
Wyeth, LLC 159 Bitcoin Be Illegal? 217

Copyright 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
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vi Contents

Case 9.1: United States v. Crabtree 218 Defenses to Criminal Liability 228
■■ Managerial Strategy: The Criminalization of American Constitutional Safeguards 230
Business 220
Cyber Crime 233
Types of Crimes 221 ■■ Landmark in the Law: Miranda v. Arizona (1966) 234
Spotlight on White-Collar Crime: Case 9.2: People v. Sisuphan 224 ■■ Cybersecurity and the Law: Counter-Strike: Global Offensive 236

Unit 2 Contracts and E-Contracts 243


Chapter 10 ■■ Landmark in the Law: Hamer v. Sidway (1891) 286
Case 12.1: Cincinnati Reds, L.L.C. v. Testa 287
Nature and Classification 244 Spotlight on Nike: Case 12.2: Already, LLC v. Nike, Inc. 292
An Overview of Contract Law 244 Promissory Estoppel 293
Elements of a Contract 246 Contractual Capacity 294
Case 10.1: Credible Behavioral Health, Inc. v. Johnson 247 Legality 297
Types of Contracts 248 ■■ Business Law Analysis: Determining If a Contract with an
Unlicensed Party Is Enforceable 298
Case 10.2: Boswell v. Panera Bread Co. 250
Case 12.3: Kennedy v. Shave Barber Co. 300
Quasi Contracts 253
■■ Managerial Strategy: Creating Liability Waivers
■■ Business Law Analysis: Deciding If a Court Would Impose
That Are Not Unconscionable 303
a Quasi Contract 254
The Effect of Illegality 304
Interpretation of Contracts 255
Spotlight on Columbia Pictures: Case 10.3: Wagner v.
Columbia Pictures Industries, Inc. 256 Chapter 13

Chapter 11
Defenses to Contract Enforceability 310
Mistakes 310
Agreement 262 Fraudulent Misrepresentation 313
Offer 262 Case 13.1: McCullough v. Allstate Property and Casualty
Classic Case 11.1: Lucy v. Zehmer 263 Insurance Co. 314
■■ Adapting the Law to the Online Environment:
Spotlight on Amazon.com: Case 11.2: Basis Technology
Corp. v. Amazon.com, Inc. 265 The Problem of “Contract Cheating” 317
■■ Business Law Analysis: Offers of a Reward 267 Undue Influence and Duress 318
Acceptance 269 The Writing Requirement 319
■■ Adapting the Law to the Online Environment: Can Your E-Mails Case 13.2: Sloop v. Kiker 320
Create a Valid Contract? 270 The Parol Evidence Rule 325
E-Contracts 273 Case 13.3: Habel v. Estate of Capelli 326
Case 11.3: Bailey v. Kentucky Lottery Corp. 276
The Uniform Electronic Transactions Act 279
Chapter 14
Chapter 12 Third Party Rights and Discharge 333
Assignments
Consideration, Capacity, and 333
Delegations 337
Legality 285 Case 14.1: Mirandette v. Nelnet, Inc. 339
Consideration 285 Third Party Beneficiaries 339

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Contents vii

Case 14.2: Bozzio v. EMI Group, Ltd. 340 ■■ Landmark in the Law: Hadley v. Baxendale (1854) 362
Contract Discharge 343 Spotlight on Liquidated Damages: Case 15.2: Kent State
■■ Business Law Analysis: Determining When a Breach Is Material 347 University v. Ford 364
Case 14.3: Chalk Supply LLC v. Ribbe Real Estate LLC 348 Equitable Remedies 365
■■ Business Law Analysis: Enforceability of Liquidated
Damages Provisions 365
Chapter 15 Case 15.3: Cipriano Square Plaza Corp. v. Munawar 366
Breach and Remedies 357 Recovery Based on Quasi Contract 369
Contract Provisions Limiting Remedies 370
Damages 358
■■ Cybersecurity and the Law: Arby’s Restaurant Group, Inc. 359
Case 15.1: HDAV Outdoor, LLC v. Red Square Holdings, LLC 361

Unit 3 Commercial Transactions 377


Chapter 16 Warranties 425
Classic Case 17.3: Webster v. Blue Ship Tea Room, Inc. 428
Sales and Lease Contracts 378 ■■ Business Law Analysis: Implied Warranties 430
■■ Landmark in the Law: The Uniform Commercial Code 379
The Scope of Articles 2 and 2A 379 Chapter 18
■■ Adapting the Law to the Online Environment:
Taxing Web Purchases 381 Negotiable Instruments 438
The Formation of Sales and Lease Contracts 383
Formation of Negotiable Instruments 439
Case 16.1: Toll Processing Services, LLC v. Kastalon, Inc. 384
■■ Adapting the Law to the Online Environment: Pay with Your
■■ Business Law Analysis: Additional Terms between Merchants 388 Smartphone 441
Classic Case 16.2: Jones v. Star Credit Corp. 393 Case 18.1: OneWest Bank, FSB v. Nunez 445
Title and Risk of Loss 394 ■■ Business Law Analysis: Deciding If an Instrument Is
■■ Managerial Strategy: Commercial Use of Drones 396 Negotiable 446
Case 16.3: Total Quality Logistics, LLC v. Balance Case 18.2: Collins Asset Group, LLC v. Alialy 447
Transportation, LLC 398 Transfer of Instruments 450
Contracts for the International Sale of Goods 401 Holder in Due Course (HDC) 452
Case 18.3: Jarrell v. Conerly 454
Signature and Warranty Liability 456
Chapter 17
Defenses, Limitations, and Discharge 461
Performance and Breach of
Sales and Lease Contracts 408 Chapter 19
Obligations of the Seller or Lessor 409
Case 17.1: All the Way Towing, LLC v. Bucks County
International and Space Law 469
International, Inc. 411 International Law 469
Obligations of the Buyer or Lessee 414 Case 19.1: Rubin v. Islamic Republic of Iran 473
Remedies of the Seller or Lessor 416 ■■ Business Law Analysis: Sovereign Immunity Claims 474
Remedies of the Buyer or Lessee 419 Doing Business Internationally 475
Spotlight on Baseball Cards: Case 17.2: Fitl v. Strek 423 Regulation of Specific Business Activities 477

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viii Contents

Case 19.2: Changzhou Trina Solar Energy Co. v. International Trade Spotlight on Wedding Rings: Case 21.1: Royal Jewelers, Inc. v. Light 514
Commission 479 ■■ Adapting the Law to the Online Environment: Secured
U.S. Laws in a Global Context 481 Transactions Online 515
Spotlight on International Torts: Case 19.3: Daimler AG v. Bauman 482 ■■ Business Law Analysis: Perfecting a Security Interest 517
Space Law 483 Scope of a Security Interest 521
■■ Cybersecurity and the Law: Safe Satellites 484 Priorities, Rights, and Duties 523
Case 21.2: Lewis v. Chris Carbine, Inc. 524
Chapter 20 Default 526
Case 21.3: SunTrust Bank v. Monroe 528
Banking 490 Other Laws Assisting Creditors 530
Checks and the Bank-Customer Relationship 491
The Bank’s Duty to Honor Checks 493 Chapter 22
Case 20.1: Legg v. West Bank 494
Case 20.2: Horton v. JPMorgan Chase Bank, N.A. 497
Bankruptcy 540
The Bank’s Duty to Accept Deposits 499 The Bankruptcy Code 540
■■ Landmark in the Law: Check Clearing for the 21st Century ■■ Business Web Log: Online Competition, Bankruptcy,
Act (Check 21) 500 and the “Retail Apocalypse” 541
Electronic Fund Transfers 502 ■■ Landmark in the Law: The Bankruptcy Abuse Prevention
and Consumer Protection Act 542
Case 20.3: Binns v. Truist Bank 504
Chapter 7—Liquidation 543
Banking in the Digital Age 505
■■ Business Law Analysis: Violations of the Automatic Stay 547
■■ Adapting the Law to the Online Environment: Open Banking 506
Case 22.1: In re Anderson 552
Case 22.2: In re Dykes 555
Chapter 21 Chapter 11—Reorganization 556
Security Interests and Creditors’ Rights Bankruptcy Relief under Chapter 13 and Chapter 12 559

512 Case 22.3: In re Chamberlain 561

Creating and Perfecting a Security Interest 512

Unit 4 Agency and Employment Law 567


Chapter 23 ■■ Business Law Analysis: Liability of Disclosed Principals 582
■■ Landmark in the Law: The Doctrine of
Agency Relationships in Business 568 Respondeat Superior 585
Case 23.3: Simon v. Farm Bureau Insurance Co. 587
Agency Law 569
Termination of an Agency 588
Formation of an Agency 572
Duties of Agents and Principals 574
Spotlight on Taser International: Case 23.1: Taser
International, Inc. v. Ward 576
Chapter 24
Agent’s Authority 578 Employment, Immigration, and
Case 23.2: Dearborn West Village Condominium
Association v. Makki 580
Labor Law 596
Liability in Agency Relationships 582 Employment at Will 597

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Contents ix

Wages, Hours, and Leave 598 Chapter 25


Case 24.1: Encino Motorcars, LLC v. Navarro 600
Health, Safety, Income Security, and Privacy 602 Employment Discrimination 624
Case 24.2: Packers Sanitation Services, Inc. v. Occupational Safety Title VII of the Civil Rights Act 625
and Health Review Commission 603 ■■ Adapting the Law to the Online Environment: Hiring
■■ Business Law Analysis: Workers’ Compensation Claims 605 Discrimination Based on Social Media Posts 629
■■ Adapting the Law to the Online Environment: Case 25.1: Young v. United Parcel Service, Inc. 630
Social Media in the Workplace Come of Age 609 ■■ Business Law Analysis: Retaliation Claims 634
Immigration Law 610 Case 25.2: Franchina v. City of Providence 635
Labor Law 612 Discrimination Based on Age,
■■ Managerial Strategy: Union Organizing Using a Company’s Disability, or Military Status 636
E-Mail System 615 Case 25.3: Kassa v. Synovus Financial Corp. 641
Case 24.3: Contemporary Cars, Inc. v. National Labor
Defenses to Employment Discrimination 643
Relations Board 616
Affirmative Action 645

Unit 5 Business Organizations 651


Chapter 26 Dissociation and Termination 678
Case 27.3: Guenther v. Ryerson 681
Sole Proprietorships and Limited Liability Partnerships 682
Franchises 652 Limited Partnerships 683
Sole Proprietorships 653
Case 26.1: Port Orchard Airport, Inc. v. Wagner 653 Chapter 28
■■ Adapting the Law to the Online Environment:
“Doing Business As” a Sole Proprietor 655 Limited Liability Companies and
Franchises 656 Special Business Forms 691
The Franchise Contract 658
The Limited Liability Company 691
■■ Cybersecurity and the Law: Brinker International, Inc. 660
■■ Landmark in the Law: Limited Liability Company
Franchise Termination 661 (LLC) Statutes 692
Case 26.2: S&P Brake Supply, Inc. v. Daimler Trucks Case 28.1: Nesset, Inc. v. Jones 695
North America, LLC 661
LLC Operation and Management 696
Spotlight on Holiday Inns: Case 26.3: Holiday Inn ■■ Managerial Strategy: Can a Person Who Is Not a
Franchising, Inc. v. Hotel Associates, Inc. 663 Member of a Protected Class Sue for Discrimination? 697
Case 28.2: Schaefer v. Orth 698
Chapter 27 Dissociation and Dissolution of an LLC 699
Case 28.3: Reese v. Newman 700
All Forms of Partnership 668 ■■ Business Law Analysis: When Will a Court Order the
Basic Partnership Concepts 669 Dissolution of an LLC? 701
Case 27.1: Harun v. Rashid 670 Special Business Forms 702
Formation and Operation 672
Classic Case 27.2: Meinhard v. Salmon 675

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x Contents

Chapter 29 Chapter 30
Corporations 708 Investor Protection, Insider Trading,
Nature and Classification 708 and Corporate Governance 743
Case 29.1: Wulf v. Bravo Brio Restaurant Group, Inc. 710 Securities Act of 1933 744
Case 29.2: Greenfield v. Mandalay Shores Community Case 30.1: Securities and Exchange Commission v. Scoville 744
Association 714
■■ Adapting the Law to the Online Environment: Investment
Formation and Powers 715 Crowdfunding—Regulations and Restrictions 748
■■ Cybersecurity and the Law: The CLOUD Act 720 ■■ Landmark in the Law: Changes to Regulation A: “Reg A+” 749
■■ Business Law Analysis: Piercing the Corporate Veil 722 Securities Exchange Act of 1934 752
Directors and Officers 722 Classic Case 30.2: Securities and Exchange Commission v. Texas Gulf
Classic Case 29.3: Guth v. Loft, Inc. 727 Sulphur Co. 754
Shareholders 728 Case 30.3: Singer v. Reali 758
Major Business Forms Compared 735 State Securities Laws 760
Corporate Governance 761

Unit 6 Government Regulation 771


Chapter 31 Case 32.2: Haywood v. Massage Envy Franchising, LLC 798
Protection of Health and Safety 802
Antitrust Law Credit Protection 805
and Promoting Competition 772 Case 32.3: Manuel v. Merchants and Professional Bureau, Inc. 808

The Sherman Antitrust Act 773 Protecting the Environment 809


■■ Landmark in the Law: The Sherman Antitrust Act 773 Air and Water Pollution 811
Case 31.1: United States v. Vega-Martínez 775 Toxic Chemicals and Hazardous Waste 814
Section 1 of the Sherman Act 775
Section 2 of the Sherman Act 779 Chapter 33
The Clayton Act 782
■■ Adapting the Law to the Online Environment:
Liability of Accountants
Big Tech’s Monopoly Problem 782 and Other Professionals 822
Case 31.2: Candelore v. Tinder, Inc. 784
Potential Liability to Clients 823
Enforcement and Exemptions 786
Case 33.1: Suarez v. Fernandez 827
Case 31.3: TransWeb, LLC v. 3M Innovative Properties Co. 787
Potential Liability to Third Parties 828
U.S. Antitrust Laws in the Global Context 788
Liability of Accountants under Federal Laws 830
Case 33.2: Laccetti v. Securities and Exchange Commission 832
Chapter 32 Potential Criminal Liability 836

Consumer and Environmental Law 794 Confidentiality and Privilege 837


Case 33.3: Commonwealth of Pennsylvania v. Schultz 838
Advertising, Marketing, Sales, and Labeling 795
Spotlight Case 32.1: POM Wonderful, LLC v. Federal Trade Commission 796

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Contents xi

Unit 7 Property and Its Protection 845


Chapter 34 Transfer of Ownership 876
Spotlight on Sales of Haunted Houses: Case 35.2:
Personal Property and Bailments 846 Stambovsky v. Ackley 877
■■ Business Law Analysis: When Possession of Property Is
Personal Property versus Real Property 846
Not “Adverse” 880
Acquiring Ownership of Personal Property 848
Case 35.3: A2 Creative Group, LLC v. Anderson 881
■■ Adapting the Law to the Online Environment:
Landlord-Tenant Relationships 883
The Exploding World of Digital Property 848
■■ Business Law Analysis: Effective Gift of a Brokerage Account 850
Classic Case 34.1: In re Estate of Piper 851 Chapter 36
Mislaid, Lost, and Abandoned Property 853
Case 34.2: Zephier v. Agate 855
Insurance, Wills, and Trusts 891
Bailments 855 Insurance 891
Case 34.3: Zissu v. IH2 Property Illinois, L.P. 860 Case 36.1: Breeden v. Buchanan 894
Wills 899
Case 36.2: In the Matter of the Estate of Thorn 902
Chapter 35
■■ Adapting the Law to the Online Environment: Online
Real Property and Asset Estate Planning 905

Landlord-Tenant Law 868 Trusts 907


Case 36.3: Dowdy v. Dowdy 909
The Nature of Real Property 868
Ownership Interests and Leases 870
Case 35.1: In the Matter of the Estate of Nelson 871

Appendices
A How to Brief Cases and Analyze Case Problems A–1

B The Constitution of the United States A–3

C The Uniform Commercial Code (Excerpts) A–3

D Answers to Issue Spotters A–4

E Sample Answers for Business Case Problems


with Sample Answer A–10

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

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Preface

T he present world landscape poses numerous challenges for students planning careers
in the business world. It also offers limitless opportunities. To take advantage of those
opportunities, prospective entrepreneurs—whether they aspire to work on Wall Street
or Main Street—need to have a solid understanding of business law and the legal environ-
ment of corporate America. The most up-to-date text on the market, Business Law Today:
Standard Edition, Thirteenth Edition, provides the perfect platform to achieve this goal.
Instructors have come to rely on the coverage, accuracy, and applicability of Business
Law Today. This best-selling text engages your students, solidifies their understanding of
legal concepts, and provides the best teaching tools available. Working on this edition, my
objective was to make its pages more interesting, to the point, and visually compelling than
ever before. I put particular focus on pedagogical devices within the text that focus on legal,
ethical, and corporate issues, while never losing sight of the course’s core curriculum.
The Thirteenth Edition incorporates the latest legal developments, from United States
Supreme Court decisions to state-level legislation. It also includes nearly forty new and
updated features and more than thirty new cases from 2019 and 2020, over one hundred
new Examples and Case Examples, along with an extensive array of exhibits, Focus Questions,
margin definitions, and case problems.

New and Updated Features


The Thirteenth Edition of Business Law Today: Standard Edition is filled with stimulating new
and updated features designed to cover current high-interest legal topics.
1. Entirely new Cybersecurity and the Law features shed light on the risks that go with
the many rewards offered by technology in the global marketplace. These features
recount how some of the most important brands in corporate America are protecting
themselves and their customers from the threats lurking in cyberspace. Some topics
include:
• Should Apple Help Law Enforcement? (Chapter 2)
• Counter Strike: Global Offensive (Chapter 9)
• The CLOUD Act (Chapter 29)
2. Entirely new hypotheticals in selected chapter introductions provide a real-world
link that generates student interest and highlights specific legal concepts that will be
discussed in the chapter. These hypotheticals—often based on real cases or business
situations—help to introduce and illustrate legal issues facing managers, companies,
and even industries.
3. Business Web Log features underscore the importance of the text material to real-
world businesses. Each of these features discusses a major U.S. company that is
engaged in a dispute involving a topic covered in the chapter. Some topics include
• Samsung and Forced Arbitration (Chapter 4)
• Johnson & Johnson Faces Continuing Lawsuits over Its Talcum Powder (Chapter 6)
• Online Competition, Bankruptcy, and the “Retail Apocalypse” (Chapter 22)

xiii

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xiv Preface

4. Adapting the Law to the Online Environment features examine cutting-edge cyberlaw
topics, such as:
• The Problem of “Contract Cheating” (Chapter 13)
• Open Banking (Chapter 20)
• Big Tech’s Monopoly Problem (Chapter 31)
5. Business Law Analysis features appear in numerous chapters of the text. These
features are useful tools to help students master the legal analysis skills that they
will need to answer questions and case problems in the book, on exams, and in
everyday business situations. Topics include:
• The Impact of Patent Time Limits (Chapter 7)
• Deciding If a Court Would Impose a Quasi Contract (Chapter 10)
• Workers’ Compensation Claims (Chapter 24)
6. Ethical Issue features focus on the ethical aspects of a topic being discussed in order
to emphasize that ethics is an integral part of a business law course. Examples
include:
• Even Though Corporation Can Restrict the Speech of Their Employees, Should They
Do So? (Chapter 2)
• Does the Gig Economy Take Advantage of Independent Contractors? (Chapter 23)
• Does Corporate America Need Board Of Director Gender Quotas? (Chapter 30)
7. Managerial Strategy features emphasize the management aspects of business law
and the legal environment. Topics include:
• The Power of Precedents (Chapter 1)
• The Stakeholder Capitalism Movement (Chapter 3)
• Can a Person Who Is Not a Member of a Protected Class Sue for Discrimination?
­(Chapter 28)
8. Landmark in the Law features discuss a landmark case, statute, or development that
has significantly affected business law. Examples include:
• Palsgraf v. Long Island Railroad Co. (Chapter 5)
• The Digital Millennium Copyright Act (Chapter 8)
• Federal Trade Commission Rule 433 (Chapter 18)

Making Ethical Business Decisions—The IDDR Approach


The Thirteenth Edition of Business Law Today boasts its own framework for helping students
(and businesspersons) make ethical decisions—the IDDR Approach, which is presented in
Chapter 3. This systematic approach provides students with a clear step-by-step process to
analyze the legal and ethical implications of decisions that are in everyday business opera-
tions. The IDDR Approach uses four logical steps:
• Step 1: Inquiry
• Step 2: Discussion
• Step 3: Decision
• Step 4: Review
Students can remember the first letter of each step easily by using the phrase “I Desire to
Do Right.” Material in Chapter 3 (Ethics in Business) details the goals of each IDDR step
and then provides a Sample Scenario to show students how to apply this new approach to
ethical decision making. The text now focuses on real-life application of ethical principles.

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Preface xv

After Chapter 3, to reinforce the application of the IDDR Approach, students are asked
to use its various steps when answering each chapter’s A Question of Ethics. In addition, the
Thirteenth Edition retains the Ethical Issue feature in most chapters, several of which have
been refreshed with timely topics involving the ever-evolving technologies and trends in
business.

New Cases and Case Problems


The Thirteenth Edition of Business Law Today has new cases and case problems from 2019
and 2020 in nearly every chapter. The new cases have been carefully selected to illustrate
important points of law and to be of high interest to students and instructors. I have made it a
point to find recent cases that enhance learning and are straightforward enough for business
law students to understand. At the end of each chapter, additional scenarios are presented as
case problems that require students to apply concepts learned from the text.
Certain cases and case problems have been carefully chosen as good teaching cases and are
designated as Spotlight Cases and Spotlight Case Problems. Some examples include Spotlight
on Gucci, Spotlight on Beer Labels, Spotlight on Nike, and Spotlight on the Seattle Mariners.
Instructors will find these Spotlight decisions useful to illustrate the legal concepts under
discussion, and students will enjoy studying the cases because they involve interesting and
memorable facts. Other cases have been chosen as Classic Cases because they establish a
legal precedent in a particular area of law.
Each case concludes with a section, called Critical Thinking, which includes at least one
question. Each question is labeled Ethical, Economic, Legal Environment, Political, Social, or
What If the Facts Were Different? In addition, Classic Cases include an Impact of This Case on
Today’s Law section that clarifies how the case has affected the legal environment. Suggested
answers to all case-ending questions can be found in the Answers Manual for this text.

Many New Highlighted and Numbered Case Examples


Many instructors use cases and examples to illustrate how the law applies to business. This
edition of Business Law Today offers hundreds of new 2019 and 2020 highlighted and con-
secutively numbered Examples and Case Examples. Examples illustrate how the law applies
in a specific situation, and Case Examples present the facts and issues of an actual case and
then describe the court’s decision and rationale.
In addition, this edition presents Spotlight Case Examples, which deal with especially
high-interest cases, and Classic Case Examples, which discuss older, landmark decisions.
The numbered Examples and Case Examples features are integrated throughout the text to
help students better understand how courts apply legal principles in the real world.

Critical Thinking and Legal Reasoning Elements


For this edition of Business Law Today, I have included a discussion of legal reasoning in
Chapter 1. The Business Law Analysis features that can be found throughout the text empha-
size legal reasoning skills as well. Critical Thinking questions conclude most of the features
and cases in this text. At the end of each chapter, a Debate This question requires students
to think critically about the rationale underlying the law on a particular topic.
Answers to all Critical Thinking questions, as well as to the Business Scenarios and Case
Problems at the end of every chapter, are presented in the Thirteenth Edition’s Answers Man-
ual. In addition, the answers to one case problem in each chapter, called the Business Case
Problem with Sample Answer, appear in Appendix E.
The chapter-ending materials also include a separate section of questions that focus on
critical thinking and writing. This section always includes a Time-Limited Group Assignment
and may also include a Critical Legal Thinking question requiring students to think critically

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xvi Preface

about some aspect of the law discussed in the chapter or a Business Law Writing question
requiring students to compose a written response.

Other Pedagogical Devices within Each Chapter


• Focus Questions (questions listed at the beginning of each chapter and repeated
in the margins of the text provide a framework of main chapter concepts for the
student).
• Margin definitions of each boldfaced Key Term.
• Know This (margin features).
• Exhibits (in most chapters).
• Photographs (with critical-thinking questions).

Chapter-Ending Pedagogy
• Practice and Review (in every chapter).
• Debate This (a statement or question at the end of Practice and Review).
• Key Terms (with appropriate page references to their margin definitions).
• Chapter Summary (in table format).
• Issue Spotters (in every chapter with answers in Appendix D).
• Business Scenarios and Case Problems (including in every chapter, a Business
Case Problem with Sample Answer that is answered in Appendix E; in selected
chapters, a Spotlight Case Problem; and in every chapter, a A Question of Ethics
that applies this textbook’s unique IDDR Approach to business ethics).
• Critical Thinking and Writing Assignments (including a Time-Limited Group
Assignment in every chapter, and a Business Law Writing or a Critical Legal
Thinking question in selected chapters).

Unit-Ending Pedagogy
Each of the seven units in the Thirteenth Edition of Business Law Today concludes with a
Task-Based Simulation. This feature presents a hypothetical business situation and then
asks a series of questions about how the law applies to various actions taken by the firm.
To answer the questions, the student must apply the laws discussed throughout the unit.
(Answers are provided in the Answers Manual.)

Supplements
Business Law Today, Thirteenth Edition, provides a comprehensive supplements package
designed to make the tasks of teaching and learning more enjoyable and efficient. The fol-
lowing supplements are available for instructors.

MindTap Business Law for Business Law Today,


Thirteenth Edition
Today’s leading digital platform, MindTap, gives you complete control of your course—
equipping you to craft unique learning experiences that challenge students, build confidence
and elevate performance.

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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.
Preface xvii

Use MindTap as-is or customize it to meet your specific needs. You can even integrate it
easily into your institution’s Learning Management System (LMS).
A streamlined learning path and redesigned assessments minimize reader distraction,
while dual-pane assignments for students pair readings side-by-side with assessments. Mind-
Tap presents complex concepts using a blend of engaging narrative and media assets clearly
linked to assessments. So, students can start applying concepts to real-world situations from
the beginning of your course with content that progresses from understanding core concepts
to critical thinking and, ultimately, application.
Exclusive Instructor Tools allow you to customize course content to your needs and
tailor assessments to match the specific language and style of your course. New Instructor
Reports provide actionable insights into student performance and present opportunities for
just-in-time intervention.

Product Features
MindTap’s outcomes-based learning design propels students from memorization to mastery.
It’s the only platform today that gives you complete ownership of your course. With Mind-
Tap you can challenge every student, build confidence and empower today’s learners to be
unstoppable.

Anchor Learning With Improved Learning Path Design


MindTap helps students focus by dividing the Learning Path into groups of bite-size activi-
ties that are anchored to a single concept. MindTap presents concepts by pairing instructional
content with assessment in a visually captivating side-by-side format.

Provide Learning on the Go


Offer your students the flexibility they need to fit learning into their day—wherever they
are and using whatever approach works best for them. Bite-size content and activities that
students can complete on a smartphone or tablet keep learning engaging, even on the go.

Quick Lesson Videos Present Complex Topics Visually


MindTap contains a variety of new and existing Quick Lesson Videos, placed within Learn
It activities and in the Additional Resources, Quick Lessons folder in the MindTap, to reach
all types of learners.

Access Everything You Need in One Place


Cut down on prep with preloaded, organized course materials in MindTap. Teach more effi-
ciently with interactive multimedia, assignments, quizzes and focused resources all on one
screen. With MindTap you give your students the power to read, listen and study on their
phones—so they can learn on their own terms.

Empower Students to Reach Their Potentials


Gain actionable insights into student engagement with MindTap’s twelve distinct metrics.
Identify topics troubling your entire class and instantly communicate with struggling stu-
dents. You can track your class’ performance down to the learning objective and curate your
lectures in real-time to respond to distinct class-wide needs. Students can track their scores
and take the guesswork out of studying with performance reports and personalized study
materials that help them progress toward their goals.

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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.
xviii Preface

Control Your Course, Your Content


Only MindTap gives you complete control of your course. You have the flexibility to reorder
textbook chapters, add your own notes and embed a variety of content, including OER. Per-
sonalize course content to your students’ needs by editing question text or answer choices.
They can even read your notes, add their own and highlight key text to aid their progress.

Count on Our Dedicated Team, Whenever You Need Them


MindTap is not simply a comprehensive tool—it’s a network of support from a personalized
team eager to further your success. We’re ready to help—from setting up your course to
tailoring MindTap resources to meet your specific objectives. You’ll be ready to make an
impact from day one. And, we’ll be right here to help you and your students throughout the
semester—and beyond.

MindTap Table of Contents


Why Does [Topic] Matter to Me?
Immediately engage students with new activities that connect the upcoming chapter to an
authentic, real-world scenario designed to pique engagement and emphasize relevance. Use
these activities to ensure students read material before class and to trigger lively in-class
discussion.

Chapter-Level Ebook
Immediately engage students with a dynamic eBook that brings the value, concepts and
applications of the printed text to life. Students open an active learning experience as each
chapter provides opportunities to interact with content using the approach that’s best for
the individual learner.

Learn It Activities
Easily add multimedia instruction to your course to supplement textbook learning. Mind-
Tap’s Learn It activities offer small sections of instruction in the form of narrative, images,
and/or Quick Lesson Videos that highlight the most important concepts in each chapter.
Learn It activities reinforce the text’s instruction and even approach concepts in a different
way to promote student choice and autonomy with personalizing learning. You can assign
Learn It activities to ensure that students have read and understand key concepts before class.

Check Your Understanding—Chapter Quizzes


Use MindTap’s Check Your Understanding quizzes to assess student performance and imme-
diately identify class-wide learning needs.

Apply It Activities
Assign any of MindTap’s carefully designed, practically focused application activities to
ensure your students know how to make business decisions through the lens of the law.
• Case Problem Analyses offer a multi-step activity that asks students to
identify the facts in a scenario through a series of questions that promote a

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Another random document with
no related content on Scribd:
the rumble of thunder is heard; the girls with their bonnets on begin
to look worried. The captain on his yacht is giving orders to reef
sails, and Farmer Jones and his boys are cocking and pitching hay
for their lives.
The little white-capped clouds of an hour ago have turned into a
black and threatening massed park of artillery. Every discharge
deepens and darkens the advancing column.
Just as the vessel’s sails are dropped and snugly reefed, just as the
farmer rushes his team, with load of hay or grain, into his barn, and
the picnic is almost under cover, the big drops of rain begin to patter.
Another flash and quick report; a scream from the girls, nearly as
sharp, and they rush for shelter, and down comes a torrent of rain.
A slight cessation, another flash, and, like shaking a tree of fruit,
every electrical explosion seems to shake down a fresh reserve of
rain drops. This is in keeping with the theory that after great battles
the cannonading produces a copious rainfall.
It is a method at times adopted by military garrisons when destitute
of water, when the atmosphere is in a favorable condition for rain, to
get out a battery of artillery and have a season of vigorous firing, and
generally with successful results.
And while all this grand and complete arrangement supplies
vegetation with its bathing and drinking, as said before, it has
nothing to do with the living and lasting supply of our springs, lakes
and rivers. They are fed from a never failing and almost unchanging
source—that is, by the immense supply taken in at the polar holes in
a river over 4,000 miles wide at each end of the Earth’s axis.
That the presumption of rainfall furnishing the supply for all of our
lakes, springs and wells has never been questioned seems almost
discreditable to the observing talent of our age. Whatever the
character of rainfall, either by protracted storm or sudden and
copious showers, it cannot escape our notice that the largest portion
of the water runs from the highlands to the lowlands into the gulches
and small streams, and thence to the rivers, into the ocean; so that
the percentage of water retained by the soil is much smaller than
that which runs away.
In our Western prairies, the country formerly called the Indian
Territory, the soil was covered with an almost waterproof matting of
grass roots, on which, when showers fell, the penetration was so
slight that in a very few days evaporation left them parched and
dried. Since the settling up of our territories, which were once termed
deserts, the soil has been broken by the farmer’s plow, thus
admitting the rainfall to be longer retained in the surface soil, which
fact has led to the development of lands once considered barren to
become some of the most fruitful grounds in our domain.
Another peculiar feature of climatic change may be mentioned here,
whereas until recent years thunder showers and storms were almost
unknown in many of our Western States and in the Pacific States
also, till now these storms and showers, with their electrical
disturbances, are nearly as common as in older States.
Another feature of weather which has seemed to develop in recent
years is that of milder winters in our Northern States and colder
freaks in the Southern; snows and frosts reaching States which
rarely ever had such experiences, and the burdens of snows
becoming much less in States which always expected a long season
of sleighing.
It is proposed to venture the following reasons as conducive to much
of this change in weather conditions of the country at large. First, the
general denuding of our forests, which evidently has much influence
on the water courses. Next, the settling up of the whole country, and
location of cities and towns from ocean to ocean, all quite evenly
distributed, and in a great portion of them large amounts of
machinery, composed of iron and steel, producing a great amount of
friction and electrical influence in their workings; besides the almost
innumerable fires from furnaces, factories and households,
discharging their heat into the upper air. Again, the railroad system,
with its millions of tons of steel rails, make a magnetic connection
between every State and almost every county in forming one grand
combination. The rush of thousands of trains all over the country,
with their friction by wheels on the tracks, and the rush through the
atmosphere, cannot fail to influence in largely equalizing the same.
Still another potent influence must exist in the almost unlimited
number of wires for telephone and telegraph purposes, which make
all the electrical combinations more complete than anything else. If
all these things combine, it does not seem strange that magnetic and
electric currents and conditions of our weather throughout the
country should be somewhat modified.
IX.
SPRINGS.
The person in full enjoyment of health rarely ever appreciates it to
the fullness that he will on being deprived of it and have its welcome
return.
The bounties of Nature are so great and common that they fail to
attract our attention to the extent of some trifles that come new into
our way from day to day. One of the greatest provisions of Nature, as
universal as air and Earth, is the millions of springs gushing up
through the pores of the Earth in every country and clime. To make
this provision of fresh water ample, needs very large reservoirs for
supplies. The amplitude of this reservoir, if the situation is as claimed
in this book, it is believed everybody will admit. To prove that this
supply comes from such a general source a class of witnesses must
be brought out. One of the most important must be the feeding of our
great lakes on high altitudes. These great bodies of fresh water are
universally credited with enormous depths of pure, clear water, such
as never could exist as the result of shed water. Many of them
practically have no streams feeding them, but, without regard to
weather conditions of seasons, pour forth enormous bodies of water
without change of volume. Lake Superior will be taken again as a
prominent witness. Here is an inland sea, on the highest ground
between the ocean and Rocky Mountains, so large that vessels can
sail on it for days out of sight of land. Not a river of any importance
flows into it, the country around it not admitting the formation of a
large stream.
The water during the hottest summer months sustains a uniform
temperature of forty-five degrees, and is as clear as crystal.
The outflow from this lake furnishes the great river passing through
the Sault Ste. Marie, through which passes a greater tonnage of
vessels than through the Suez canal, and most of them of very large
draft. This river with the combined waters of Lake Michigan and Lake
Huron passes on through the Detroit River and Lake Erie and over
Niagara Falls. It is also claimed that from Lake Superior a large
subterranean stream flows into Lake Ontario from which lake the
stream in junction with Niagara river forms the St. Lawrence, the
river so copious in its flow as to be immune from floods.
This question is in point: Where does this enormous supply of water
come from to supply Lake Superior?
Without taking single witnesses, we will call up groups. Take the
various great lakes of the world, Europe, Asia and Africa, where all
great rivers seem to have their sources in some lake.
As to rainfall if that originates these streams, and if so, how is their
flow kept so uniform, or is it from a steady, unfailing source, as would
come from the inside ocean of supply?
Lakes of enormous depth exist in the Sierra Nevada, and Rocky
Mountains, as Pyramid Lake, Donner, Tahoe and Crater Lakes. In
our Adirondacks are thousands of lakes, in Vermont and New
Hampshire, and in the White Mountain region, throughout the
mountain portions of Maine, in West Virginia, and the Carolinas, and
in other high and mountainous sections lakes abound. As we come
to the low country there are few witnesses to call, as the only body of
water worth mentioning is in Utah, that lake being salt and below the
level of the ocean.
While the subject of this chapter is introduced under the heading of
springs, it may seem out of place to bring in these great lakes,
assuming that they are of the same class. But there is no doubt
whatever of their being nothing more or less than mammoth springs.
Next to the great lake system of the world, may be called in evidence
the atolls so prevalent in the southern Pacific Ocean and growing
also in other places on the globe. These peculiar features appear to
have been built up from the tops of submarine mountains or old
craters that have been filled with fresh water, from which structures
of coral have grown till they reached the surface. The formation of
these atolls being generally elongated, or in chains like mountain
ranges, is suggestive of the same influence in their inception as the
upheaval of mountain chains on land surfaces by hydraulic pressure.
This may be a good place to ask where the fresh water supply
comes from to produce these atolls. That they are produced by fresh
water there can be no question, as the work of coral is never
performed without an abundance of this element to build through.
That the bottom of the ocean has many subterranean rivers nobody
will dispute. That nearly every island in the ocean has springs of
fresh water, none can deny. Where does it come from? Many of
these islands have thermal springs, like Iceland with its geysers of
many varieties. Some with common fresh water, and nearby springs
of mineral water. One familiar to this region is Block Island with both
fresh water and mineral springs, and little lakes on the high ground
alive with fresh water fish. Are they supplied with rain water?
Mount Desert is a very good witness to call. Here is an island
eighteen miles in diameter surrounded by salt water with an
elevation of 1,800 feet, and 1,200 feet above the ocean are three
fine lakes, Eagle Lake, Crooked Lake, and Echo Lake. In which
lakes are trout weighing eight or ten pounds. On this small island are
to be found thousands of springs pouring out from every crack and
crevice. The water is pure and clear as in all such cases. Where
does it come from? No more generous gift to man and all animated
nature, has been bestowed by Providence than the universal
distribution of springs all over the world.
Within twenty rods of the top of Mount Washington, the highest peak
in the New England States, flows out a copious spring of water. The
whole mountain system is full of springs and lakes. The entire
Adirondack region is in the same condition. It is safe to leave it to the
reader who has ever been out of sight of the smoke of his own
chimney to think of the abundance of instances where he has seen
lakes and springs on the tops of high hills, where no shed water to
any extent could reach them, and wonder how they came there.
To assume that rains sink into the ground and form water supplies,
seems incredible when the experience of any man who has ever dug
a well or sunk a shaft in a mountain, or tunneled under a hill ought to
disprove such an idea at once. As we dig down we always meet
water, and the deeper we get the more we find. Where does the
water from the surface turn around to come back? Some of the water
coming up is salt, some fresh, some hot, but mostly of a uniform
coolness of about fifty degrees.
X.
GLACIERS.
We hear a great deal said about the age of Glaciers. This is
assuming that the Earth has at some time been in a condition to be
almost uninhabitable, as evidences of this Glacial influence seem to
be reported from all parts of the globe.
As the theory of a warmer climate having existed in primeval times
and that the Earth is and has been for ages cooling off hardly leaves
a place for a universal period of Glaciers.
It hardly seems rational that the vast accumulation of flora to
produce the coal deposits and sustain the wonderful specimens of
animal and reptile growth could have been interrupted by a period of
ice. If so, the earth in its present condition shows evidence of
growing warmer instead of cooling off.
It is by the writer seriously doubted that the many evidences
attributed to glaciers can be charged to their influence.
Where large rocks are found foreign to anything in their immediate
surroundings and similar to formations at quite long distances away,
the explanation that the straggling specimens were carried there by
glaciers is not necessarily conclusive.
There may be many instances where such evidences are the work of
glaciers, but it does not seem as if an ice age were needful to
produce the changes of rock, or to show the markings on rocks
claimed to have been caused by glacial abrasions. Icebergs can
produce and explain every such feature as is claimed for the glacier,
and there seems to be little reason to doubt that similar evidences
such as are imputed to glaciers are constantly going on as much at
the present day as in any remote age in the past.
There can be no doubt that icebergs have existed in all time from the
earliest movement of the Earth’s machinery.
As explained in treating of icebergs, an area of extent equal to some
of our smaller States frozen to a depth of thousands of feet breaks
up and floats away from the polar oceans. Presuming an iceberg
large as the State of Rhode Island to start off, which is very likely a
small estimate of the size of many, such berg being exposed to
thawing winds and the sun’s rays until thousands of miles away from
its starting point, and after all these exposures is often a mass of 300
or more feet high and 2,000 feet deep. Imagine the weight and force
of such a body striking the peak of some submarine mountain, the
top of a hill with the momentum produced by wind and tide. There
tops could as easily be wiped off and carried long distances, as a
man can strike off the top of a measure of grain, and leave the same
marks attributed to glaciers.
These great masses of rock and soil supposed to be transferred
from their original deposit are carried long distances till melting has
loosened a hold, and they are dropped to the bottom of the ocean
and left for the wonderment and surmise of the future as to how they
got there. This process of wiping off high points of submarine lands
must be going on just as much at the present time as ever in the
past, and seems a very wise and cheap system of dredging
instituted by Providence.
With the reasoning to follow of how the Earth obtains and maintains
its warmth an ice age would seem an impossibility and absurdity.

WHAT PRODUCES A GLACIER?


Here again the influence of Springs is called into service. As all the
hills and mountains, it is here claimed, are the results of water aided
by centrifugal force, therefore the hills and mountains become the
reservoirs of supply for all the lower parts of the Earth. This
arrangement of Nature provided the means for producing a Glacier.
At high altitudes in the mountains, whether in the frigid zone or in the
temperate, break forth springs; coursing down the mountain side to
the valleys, the waters soon become aërated so as to freeze.
Springs from different ranges and neighboring heights contribute
their streams, all commingling in the deep cañons and freezing in a
mass. With the accumulations of snow and rain, this body grows until
in time, by the constant supply from the springs, rain and snow, the
mountain gorges are filled however wide and large they may be.
This monstrous aggregation of ice must of course seek a lower point
by its enormous weight and constant accumulation on top, and
naturally begins to crawl down the valley grade. The first inception of
a glacier is spring water, which with other contributions named
ultimately produces what may be called a river of ice.
Under the ice river is always flowing a stream of water, and many air
holes and openings are found upon the surface at different points, no
doubt produced by the influence of spring water coming in of
temperature above freezing or at the usual fifty-two degrees, about
the average of fresh water springs in all latitudes. This
conglomeration of influences to make a glacier shows the absurdity
of having such solid masses break off, as claimed to be seen by
Arctic explorers, large enough to remain intact well down into the
Atlantic Ocean. As these mountain ravines fill up, of course the
waters involve and cover with ice, every rock and tree, and all such
objects in the way must necessarily be carried to some lower point
and ultimately left. This faculty of a glacier has given it credit for
performing all such apparent transitions, while icebergs which
evidently do 1,000 times this amount of work are getting much the
smaller share of credit.
It has been reported by sailors in the region of icebergs that by
observations taken during a few months, they perceptibly grow many
feet higher, which goes to prove the claim that they are constantly
being added to from underneath. With change of season, these
monsters are floated away from their moorings, toward the Equator
to cool and freshen the main oceans, produce electric currents of air,
become the wonder and terror of ocean travel, and melting away
under tropical suns; or on the other hand, some may seek the
interior and contribute themselves to the cooling of the waters that
manifest themselves in refreshing springs all over the Earth.
There were newspaper reports of large masses of ice being thrown
out during the great eruption in the Island of Java, but such
statements may do better for newspaper items than to sustain an
argument in this work. How can this equable condition of spring
water, with its delicious coolness adjusted to all seasons and tastes,
be accounted for if it does not come practically from one common
source? Will some scientist answer?
XI.
CAVES.
These peculiar freaks in the Earth are nothing to excite much
curiosity or wonder. It is rare to find caves only in limestone
formations which by long contact with water gradually wash away
and leave monstrous chambers that have formerly been a solid
mass.
Sometimes a cave may be formed by a sinking of the floor, leaving
the arched top supporting itself, but whatever the cause and
wherever caves are found, I never read of any but lead to
subterranean rivers of great purity and coolness of water, nearly all
the waters of which are credited with blind fish. Where did the fish
originate? The stalagmites and stalactites tell of the copious
influence of water.
What is the source of these cave rivers? Are they from soakage of
rainfalls and do they have any dry season?
XII.
ARTESIAN WELLS.
Here is a subject that is worthy the attention of settlers in our arid
and apparently desert regions of country. We are told that the source
of an artesian well is from fountains of water gathered and stored in
higher lands that run through different strata of rocks till they reach
the valleys, and when the boring reaches down to these strata the
water naturally comes up toward the height of the fountain it started
from. Would it not be a sensible inquiry to make as to where the
supply came from to furnish the water in the higher lands? That the
accepted theory of supply to artesian wells comes from some higher
point is not correct can be demonstrated on the prairies, where no
higher land is in sight.
A very good test occurred some years ago at the Hamilton mine,
adjoining the great Chapin mine, in Wisconsin. It became almost
impossible to work the mine on account of the great influx of water.
Not much more than a half mile away was a lake that was charged
with producing this annoying flow.
At the time of a temporary abandonment, the writer disputed this
solution, and a survey was proposed to determine the level in the
lake and mine, which showed the water in the mine eleven feet the
lowest. To overcome this encroachment of water, an ingenious
device was adopted by building a chimney over the point of inflow to
the height of water level and stopping at the bottom; when completed
allowed to fill.
When its true level was reached the rest of the mine was dry some
distance above. It is doubtful if any place on the Earth will not
respond with a flow of water within a mile in depth and rarely half
that distance will need to be bored.
In the Mojave desert it is claimed a depth of 200 feet and often less
gets a good flow of water. What sends it up and whence its source?
In Michigan, Wisconsin, and many other adjacent States, a depth of
100 or 200 feet will produce large flowing wells. Where does this
universal supply come from and why unchanged by wet or dry
seasons? The flow from Lake Superior is frequently larger in the dry
season of August than in the wet season of spring.
If there is no unfailing supply of water in the Earth, where does the
influence come from to produce an Oasis in a desert?
If artesian wells are bored in our arid and now almost worthless
lands, wherever a fountain of water is tapped will be an Oasis
around which the settler can produce fabulous wealth of crops and
obtain forage for live stock. The expense of boring wells will be
largely compensated by cheapness of land and bountiful results in
vegetation.
XIII.
OASES.
These green spots in the great deserts are the counterparts of
Islands in the oceans.
If not thrown up and fed by water upheaval, how are they produced?
Are they volcanic? The Oasis of Ammonium, or Siwah, six miles long
and eight wide, contains the ruins of the famous temple and oracle of
Ammon, visited by Alexander the Great, and celebrated for the
fountain of the Sun, whose waters are warm at morning and evening,
and cold at noon.
There are several oases not long distances west of the Nile in the
Great Desert. The ancients considered them as Islands in a Sea of
Sand, but they are really elevated lakes, although not manifesting
themselves much at the surface, but underlying so closely as to
render the climate too unhealthy to live in during the summer and
autumn, being of a swampy character, and yet very productive in
winter and spring. Where do these waters soak in to produce such
spots in the deserts?
XIV.
THINGS THAT PUZZLE US.
It is frequently a query how the distribution of fish is so general even
in the most obscure lakes and springs rising and running from points
so isolated as to apparently preclude such specimens from getting
there. It seems strange that some species would exist at the head of
a stream and not inhabit it throughout. Seas and lakes may, and do
exist, without any visible outlets to the ocean, and yet are plentifully
supplied with varieties of fish. Now what may be a rational
explanation of how they got there. It cannot seem right to say that
they originally existed in an adjacent sea or the nearest approach to
the ocean, as they are not found in any adjacent waters and are
entirely peculiar to their locality, having no neighbors akin. It does not
seem as if such would be the case if they became isolated by some
remote upheaval and change of surrounding Earth’s surface, as this
would only divide up the family and spread the species like
immigration from the eastern to the western states.
As asked before, where do these blind fish come from in caves
where streams do not seem to have any connection with surface
waters? Where do the many specimens come from in the island
lakes all over the world? To all these questions there seems a simple
answer when we accept the idea that the center of the Earth is the
womb that is developing and sending out through every pore, seam,
crevice and crack some new seed and form of life to develop a new
and strange existence to us on the outside.
It is a Scriptural idea that “We are born of water.”
Creatures that have their inception in the bowels of the Earth cast
their eggs as the fish and reptile spawn in our rivers. These eggs or
spawn or seeds of life in whatever form are taken in the currents that
course through the different strata of the earth by centrifugal force
and pressure, taking almost any amount of time in their hermetically
sealed transit before they reach an atmosphere in which to develop
into a new existence. Any lake, spring, or fountain of water that is a
living stream fed by the inexhaustible sources within, may have from
that varied storehouse and laboratory of nature any specimen of fish,
scale, skin, shell or reptile of any form, that no adjoining or
neighboring water may develop.
The spawn or egg may be destroyed on its outward passage or held
back by influences preventing its maturity; or landed on the surface
under unfavorable conditions of climate, air, and properties in the
water.
Why do shad not exist anywhere in similar coast waters? Where do
they come from and is the Gulf Stream to be credited with their
origin? Where do the different schools of blue fish, mackerel, herring
and numerous other fish find their headquarters to breed, and why
after seeking other waters for a season, return to some place that
seems to be their “sweet home”?
Was Seth Green the pioneer in transportation of spawn to distant
waters for their incubation? It is more than likely that he was not; with
all credit due to the great service his genius has rendered.
What is said of the dissemination of fish, shells, and reptiles may be
consistently said of vegetation.
The earth is filled with the seed of every plant and tree and shrub
that ever sprang into life in any place, clime or time. Dig to whatever
depth you will, the substance you throw out, whether earth or stone,
when exposed to the air, will produce some growth of vegetation.
Frequently something entirely new and different from the
surrounding vegetation. To assume that streams, winds, and birds
carry and distribute all the seeds to their different localities where
found in an isolated condition, is too much for human credulity. On
the tops of mountains, where streams do not run uphill on the
surface, where the birds seldom fly, and on spaces impossible for
seeds to be carried by winds, you find species peculiar to their
altitude, atmosphere and soil.
Through the channels that eternally pour from never ending supplies,
and in which storehouse are mingled the seeds from every valley,
plain and mountain top of our Earth; from this source they can be
scattered and mixed in every inch of the soil which composes our
Earth from center to surface, and when brought into contact with our
atmosphere start into new and varied existences.
The question may be reasonably asked if many of the reptilian
specimens attributed to remote antiquity as belonging to our Earth’s
surface, may not be specimens from an interior world, and even now
have representatives of their existence there?
Certain plants and growths require specific treatment and conditions.
Wherever pond lilies, peppermint, cattails, flag-root, cresses, and
moss in wells are found is unfailing proof of living fountains of water.
The ocean furnishes every facility of transportation through the co-
operative system without and within. The millions of seed that
mature in different climes on the surface are dropped and carried by
floods and currents into the main ocean. Some sink and lie buried for
ages, retaining their germs of life, for the outer ocean has its regular
currents and motions to such an extent, it would not make a general
distribution of seed in countless years.
Through this avenue passing under the ice belt, every variety is
more or less drawn into this general receptacle which, in turn carries
them inward and outward, and in course of time filters them in their
course into every inch of the earth through which the water passes;
which is in this way the medium of transportation.
By this means every spoonful of earth is in time prepared to give
growth of new life to any plant or tree that has ever existed when
exposed to the influence of air and heat or even cold, to revive its
species.
In passing to the surface, like the spawn of fish, they may pass
through localities of such excessive heat as to destroy their life
germs, as is undoubtedly the case with the spawn that should travel
through waters like geysers of Iceland or the Yellowstone Park or
waters similar to these, whose streams that flow away always show
a dearth of fish.
With the Earth formed like this, the writer claims it to be on the
principle of a globe for a gas jet, open on both sides and presenting
as it turns inward a funnel shaped entrance, which is without doubt
over 1,500 miles across; this passage would be just as vast to the
eye as the size of, or distance to, the fixed stars, the eye losing all
conception of measure, and a thousand miles is just as much
beyond our scope of vision as a million.
In almost any position you can imagine the Earth to revolve around
the Sun, one of these sides or ends must be partially and at times
wholly exposed to the Sun’s rays, and the effect, it seems natural to
suppose, would make the interior horizons light as the exterior. The
water, it is believed, on any body acts as a reflector and is a giver of
light from every planetary body in some degree.
It is all gas, to talk about the gaseous condition and nature of the
Sun, and “other worlds than ours.” They would at best be a very poor
investment and not worth the labor and genius of a power able to
create; 160 acres of good land in any productive locality would be
worth more than 1,000 such whirling pyrotechnics of space.
It is altogether too presumptive to suppose that our little Earth with
all its boasted cities, and boroughs thrown in, can be the only
habitation for poor, vain and sinful man.
XV.
METEORS.
These are nothing more or less than dust particles thrown from
volcanic eruptions on some planet, and in countless numbers drifting
through time and space till sucked into the atmosphere of some
other orb.
Whoever doubts the influence of friction ought to be convinced by
watching these meteoric specks falling through our atmosphere of a
clear evening, although the process goes on as much in day as night
time.
While falling in space this dust must gain an inconceivable speed, as
a feather without resistance falls as rapidly as a ball of lead.
The contact with our atmosphere ignites and evidently consumes
them into gas before reaching the Earth. They used to be called
falling stars, but if they were of inferior magnitude it is quite probable
there would have been many a badly bumped head before this time,
from the numbers that have fallen.

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