(Formerly Law 242) This course is an introduction to the basic legal rules and principles governing the relations between managers, investors, and creditors in the business enterprise. The course is the foundation for advanced business courses. We focus on problems that arise because a firm's managers and owners have conflicting interests. We examine the costs associated with this conflict and how markets, legal rules and contracts might reduce them. Elements used in grading: Attendance, Class Participation, Exam.