Law for Business
Information Center
About the Authors
Book Preface
Table of Contents
Feature Summary
Sample Chapters

First Time Users
Student Edition
Instructor Edition
Law for Business, 11/e

James A. Barnes, Indiana University – Bloomington
Terry M. Dworkin, Indiana University – Bloomington
Eric Richards, Indiana University – Bloomington

ISBN: 0073377716
Copyright year: 2012

Book Preface

For more than 30 years, Law for Business has set the standard as an easy-to-read textbook that provides students with the tools for understanding the legal environment of business. This, the 11th edition, has not strayed from that winning formula. The text goes well beyond merely identifying the current legal rules and regulations affecting business by offering insights into new developments and trends that promise to greatly affect the future of both domestic and international businesses. The result is a comprehensive, yet concise, treatment of the legal issues of fundamental importance to business students and the business profession.

We are extremely pleased with the number of institutions and instructors that continue to adopt Law for Business. They represent a wide range of programs in business in both two-year and four-year colleges and universities throughout the country and the world. Feedback from faculty and students alike confirms that they particularly like the clear exposition, the careful selection and editing of high-interest cases, and the text's attractive and readable design.

In preparing this latest edition of Law for Business, we have tried to maintain the strengths of the past editions while updating the material and cases. In this edition, there are many new cases, the text has been thoroughly updated, and a good number of problem cases have been replaced with new ones. The cases continue to include both hypothetical cases and real-life cases so that we can target particular issues that deserve emphasis. Simultaneously, we have made a conscious effort to slightly reduce each chapter's overall length in order to enhance its manageability as a teaching and learning device.

Other features—maintained from previous editions—that keep Law for Business on the cutting edge of business law/legal environment textbooks include the following:


We have employed a number of proven pedagogical devices to aid students in their comprehension and critical analysis of the often complex topics raised in any business law course.

Chapter Openers— Most chapters begin with high-interest vignettes that provide a context for the law in the upcoming chapter. They generally take the form of a real-life case and are followed by a list of questions or issues that introduce the reader to the concepts presented in the chapter.

Learning Objectives —Succinct, crisply written learning objectives follow the Chapter Openers at the beginning of each chapter. The numbered objectives describe what the students can expect to learn as a result of completing the chapter. Each objective is identified by a unique symbol in the margin where the material appears in the text.

Concept Summaries— Each chapter contains numerous outlines, figures, or drawings that reinforce important or complex legal rules, issues, or concepts.

Visual Illustrations— Flowcharts and other visual illustrations are inserted in each chapter to facilitate student comprehension of key topics.


Textual material is supplemented by recent, high-interest cases decided by state and federal courts. Cases have been selected to illustrate practical applications of the important legal concepts introduced in each chapter. Although the cases are brief, they provide sufficient facts and analysis to clearly explain the law in action. To enhance understanding of the material, each case is placed immediately after the textual point it discusses.


Most chapters contain one or more e-commerce boxes, cases, or sections that introduce important e-commerce and Internet law topics related to the chapter material. This key feature should enable students to more accurately identify future regulatory efforts and their implications for business.

Ethics in Action

Ethics in Action boxes are interspersed throughout each chapter. Appearing in the form of questions or commentaries, they should assist students in recognizing the ethical issues confronting business people on a daily basis. In many chapters, these features introduce and explore various features of the recently enacted Sarbanes-Oxley Act. These supplements to the regular textual material will permit students to more fully appreciate the complex and pervasive nature of ethical issues they will encounter in their professional lives. Finally, our increased focus on ethics is demonstrated by the continued inclusion of Chapter 3—“Business Ethics and Corporate Social Responsibility.” This chapter clearly explains the predominant theories of ethical reasoning and provides guidelines for making ethical decisions.

International Focus

Where relevant, the authors have inserted cases and textual material introducing the legal and business risks that often attend global operations. Through this global approach, students are taught that international issues are an integral part of business.

AACSB Standards

McGraw-Hill Companies is a proud corporate member of AACSB International. Understanding the importance and value of AACSB accreditation, the authors of Law for Business have sought to recognize the curricula guidelines detailed in the AACSB standards for business accreditation by connecting selected questions in the Test Bank to the general knowledge and skill guidelines found in the AACSB standards.

The statements contained in Law for Business are provided only as a guide for the users of this text. The AACSB leaves content coverage and assessment clearly within the realm and control of the individual school, the mission of the school, and the faculty. The AACSB does charge schools with the obligation of doing assessment against their own content and learning goals. While Law for Business and the teaching package make no claim of any specific AACSB qualification or evaluation, we have, within the book, labeled selected questions according to the six general knowledge and skill areas. The labels or tags within Law for Business are as indicated. There are, of course, many more within each Test Bank, the text, and the teaching package that may be used as a standard for your course.

Online Learning Center at

  • The Online Learning Center (OLC) is a website that follows the text chapter by chapter. The 11th edition OLC contains resources for both Instructors and Students:
  • PowerPoint Slides. PowerPoint slide sets for every chapter, updated by Chuck Bowles, Professor Emeritus of Pikes Peak Community College, are for use in the classroom or for studying. These slides refer back to figures and concept summaries from the text as well as introduce original material not found anywhere else.
  • Student Study Guide. A printed Student Study Guide, updated by Bridget Petzold of Fayetteville Tech Community College, provides students with additional practice reviewing the major concepts in each chapter so they may be better prepared for exams. It includes learning objectives, learning hints, and true/false, multiple choice, and short essay questions.
  • You Be the Judge Online ( You Be the Judge Online video segments include 18 hypothetical business law cases. All of the cases are based on real cases from our Business Law texts. Each case allows you to watch interviews of the plaintiff and defendant before the courtroom argument, see the courtroom proceedings, view relevant evidence, read other actual cases relating to the issues in the case, and then create your own ruling. After your verdict is generated, view what an actual judge ruled (unscripted) in the case and then get the chance to defend or change your ruling.
  • Instructor's Manual. The authors of Law for Business have prepared an instructor's manual providing insights into the major topics introduced in each chapter. Each case is briefly summarized and accompanied by a “Points for Discussion” section that poses ideas for stimulating classroom dialogue. This manual also includes the answers to all of the Questions and Problem Cases that appear in the text, as well as references to appropriate places within the chapter to discuss particular end-of chapter cases.
  • Test Bank. The Test Bank consists of true/false, multiple choice, and short essay questions in each chapter. We've aligned our Test Bank with new AACSB guidelines, tagging each question according to its learning objective, knowledge, and skill areas.
  • EZ Test Online. McGraw-Hill's EZ Test Online is a flexible and easy-to-use electronic testing program. The program allows instructors to create tests from book-specific items, accommodates a wide range of question types, and enables instructors to add their own questions. Multiple versions of the test can be created, and any test can be exported for use with course management systems such as WebCT, Blackboard, or any other course management system. EZ Test Online is accessible to busy instructors virtually anywhere via the Web, and the program eliminates the need for them to install test software. Utilizing EZ Test Online also allows instructors to create and deliver multiple-choice or true/false quiz questions using iQuiz for iPod. For more information about EZ Test Online, please see the website at
  • The Business Law Newsletter, Proceedings. We have developed this resource to help keep your classes interesting and current. One electronic newsletter is e-mailed to you per month. Instructors across the country have told us they are looking for ways to include current examples and cases, and we hope this newsletter provides you with just that. It is meant to be an easy and effective place to turn for some new discussion topics for your business law courses. Each edition includes:
    • Article abstracts with critical thinking questions,
    • Video links with discussion questions and answers,
    • Case hypotheticals and ethical dilemmas (with answers),
    • Teaching tips to help you incorporate this newsletter into your class, and
    • A chapter key that integrates all of the above with each of our McGraw-Hill Business Law texts.

To obtain an instructor login for this Online Learning Center, ask your local sales representative. If you're an instructor thinking about adopting this textbook, request a free copy for review.