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Questions and Answers of Business Law

You have an employee from another country who is very shy. After a time, you notice that the quality of her performance is deteriorating rapidly. You find an appropriate time to speak with her and
You receive a telephone call from a company you never do business with requesting a reference on one of your employees, Mary Sunshine. You believe that Mary is generally incompetent and would be
You have just received a report suggesting that a chemical your company uses in its manufacturing process is very dangerous. You have not read the report, but you are generally aware of its contents.
You and Joe Jones, your neighbor and friend, bought lottery tickets at the corner drugstore. While watching the lottery drawing on television with you that night, Joe leaps from the couch, waves his
Omega, Inc., a publicly held corporation, has assets of $100 million and annual earnings in the range of $13 to $15 million. Omega owns three aluminum plants, which are profitable, and one plastics
You are the sales manager of a two-year-old electronics firm. At times, the firm has seemed to be on the brink of failure but recently has begun to be profitable. In large part, the profitability is
Major Company subcontracted the development of part of a large technology system to Start-up Company, a small corporation specializing in custom computer systems. The contract, which was a major
A customer requests certain sophisticated tests on equipment he purchased from your factory. Such tests are very expensive and must be performed by a third party. The equipment meets all of the
(a) You are a project manager for a company making a major proposal to a Middle Eastern country. Your major competition is from Japan. Your local agent, who is closely tied to a very influential
On June 15, a newspaper columnist predicted that the coast of State X would be flooded on the following September 1. Relying on this pronouncement, Gullible quit his job and sold his property at a
State Senator Bowdler convinced the legislature of State Z to pass a law requiring all professors to submit their class notes and transparencies to a board of censors to be sure that no
While driving his car in Virginia, Carpe Diem, a resident of North Carolina, struck Butt, a resident of Alaska. As a result of the accident, Butt suffered more than $60,000 in medical expenses. Butt
Sam Simpleton, a resident of Kansas, and Nellie Naive, a resident of Missouri, each bought $85,000 in stock at local offices in their home States from Evil Stockbrokers, Inc. (‘‘Evil’’), a
The Supreme Court of State A ruled that, under the law of State A, pit bull owners must either keep their dogs fenced or pay damages to anyone bitten by the dogs. Assess the accuracy of the following
The Supreme Court of State G decided that the United States Constitution requires professors to warn students of their right to remain silent before questioning the students about cheating. This
Thomas Clements brought an action to recover damages for breach of warranty against defendant Signa Corporation. (A warranty is an obligation that the seller of goods assumes with respect to the
Mariana Deutsch worked as a knitwear mender and attended a school for beauticians. The sink in her apartment collapsed on her foot, fracturing her big toe and making it painful for her to stand. She
Vette sued Aetna under a fire insurance policy. Aetna moved for summary judgment on the basis that the pleadings and discovered evidence showed a lack of an insurable interest in Vette. (An
Mark Womer and Brian Perry were members of the U.S. Navy and were stationed in Newport, Rhode Island. On April 10, Womer allowed Perry to borrow his automobile so that Perry could visit his family in
Kenneth Thomas brought suit against his former employer, Kidder, Peabody & Company, and two of its employees, Barclay Perry and James Johnston, in a dispute over commissions on sales of securities.
Steven Gwin bought a lifetime Termite Protection Plan for his home from the local office of Allied-Bruce, a franchise of Terminix International Company. The plan provided that Allied-Bruce would
In May, Patricia Allen left her automobile on the shoulder of a road in the city of Erehwon after the car stopped running. A member of the Erehwon city police department came upon the car later that
In 1967, large oil reserves were discovered in the Prudhoe Bay area of Alaska. As a result, State revenues increased from $124 million in 1969 to $3.7 billion in 1981. In 1980, the State legislature
Maryland enacted a statute prohibiting any producer or refiner of petroleum products from operating retail service stations within the State. The statute also required that any producer or refiner
The Federal Aviation Act of 1958 provides that ‘‘the United States of America is declared to possess and exercise complete and exclusive national sovereignty in the airspace of the United
The Public Service Commission of State X issued a regulation completely banning all advertising that ‘‘promotes the use of electricity’’ by any electric utility company in State X. The
E–Z–Rest Motel is a motel with 216 rooms located in the center of a large city in State Y. It is readily accessible from two interstate highways and three major State highways. The motel solicits
State Z enacted a Private Pension Benefits Protection Act requiring private employers with one hundred or more employees to pay a pension funding charge upon terminating a pension plan or closing an
A State statute empowered public school principals to suspend students for up to ten days without any notice or hearing. A student who was suspended for ten days challenges the constitutionality of
Iowa enacted a statute prohibiting the use of sixty-five-foot double-trailer-truck combinations. All of the other Midwestern and western States permit such trucks to be used on their roads. Despite
Metropolitan Edison Company is a privately owned and operated Pennsylvania corporation subject to extensive regulation by the Pennsylvania Public Utility Commission. Under a provision of its general
Miss Horowitz was admitted as an advanced medical student at the University of Missouri–Kansas City. During the spring of her first year, several faculty members expressed dissatisfaction with Miss
The McClungs own Ollie’s Barbecue, a restaurant located a few blocks from the interstate highway in Birmingham, Alabama, with dining accommodations for whites only and a takeout service for blacks.
Alabama law imposes a fee of $97.60 per ton for hazardous wastes generated outside the state and disposed of at a commercial facility in Alabama. The fee for hazardous wastes generated within Alabama
In 1942, Congress passed the Emergency Price Control Act in the interest of national defense and security. The stated purpose of the Act was ‘‘to stabilize prices and to prevent speculative,
The Secretary of Commerce (Secretary) published notice in the Federal Register inviting comments regarding flammability standards for mattresses. Statistical data were compiled, consultant studies
Reagan National Airport in Washington, D.C., is one of the busiest and most crowded airports in the nation. Accordingly, the Federal Aviation Administration (FAA) has restricted the number of
Bachowski was defeated in a United Steelworkers of America union election. After exhausting his union remedies, Bachowski filed a complaint with Secretary of Labor Dunlop. Bachowski invoked the
The Federal Crop Insurance Corporation (FCIC) was created as a wholly government-owned corporation to insure wheat producers against unavoidable crop failure. As required by law, the FCIC published
The Department of Energy (DOE) issued a subpoena requesting information regarding purchases, sales, exchanges, and other transactions in crude oil from Phoenix Petroleum Company (Phoenix). The aim of
Under the Communications Act of 1934 the Federal Communications Commission may not impose common carrier obligations on cable operators. A common carrier is one that ‘‘makes a public offering to
Congress enacted the National Traffic and Motor Vehicle Safety Act of 1966 (the Act) for the purpose of reducing the number of traffic accidents that result in death or personal injury. The Act
David Diersen filed a complaint against the Chicago Car Exchange (CCE), an automobile dealership, alleging that the CCE fraudulently furnished him an inaccurate odometer reading when it sold him a
Section 7 (a)(2) of the Endangered Species Act of 1973 (ESA) provides (in relevant part) that ‘‘[e]ach Federal agency shall, in consultation with and with the assistance of the Secretary (of the
Sam said to Carol, ‘‘Kim is going to sell me a good used car next Monday, then I’ll deliver it to you in exchange for your microcomputer, but I’d like to have the computer now.’’ Relying
Sara, a lawyer, drew a deed for Robert by which Robert was to convey land to Rick. The deed was correct in every detail. Robert examined and verbally approved it but did not sign it. Sara erased
Ann took Bonnie’s watch before Bonnie was aware of the theft. Bonnie discovered her loss immediately and pursued Ann. Ann pointed a loaded pistol at Bonnie, who, in fear of being shot, allowed Ann
Jones and Wilson were on trial, separately, for larceny of a $1,000 bearer bond (payable to the holder of the bond, not a named individual) issued by Brown, Inc. The Commonwealth’s evidence showed
Truck drivers for a hauling company, while loading a desk, found a $100 bill that had fallen out of the desk. They agreed to get it exchanged for small bills and divide the proceeds. En route to a
Peter, an undercover police agent, was trying to locate a laboratory where it was believed that methamphetamine, or ‘‘speed’’—a controlled substance—was being manufactured illegally.
The police obtained a search warrant based on an affidavit that contained the following allegations: (a) Donald was seen crossing a State line on four occasions during a five-day period and going to
A national bank was robbed by a man with a small strip of tape on each side of his face. An indictment was returned against David. David was then arrested, and counsel was appointed to represent him.
Waronek owned and operated a trucking rig, transporting goods for L.T.L. Perishables, Inc., of St. Paul, Minnesota. He accepted an offer to haul a trailer load of beef from Illini Beef Packers, Inc.,
Four separate cases involving similar fact situations were consolidated as they presented the same constitutional question. In each case, police officers, detectives, or prosecuting attorneys took a
The Racketeer Influenced and Corrupt Organizations Act (RICO) is directed at ‘‘racketeering activity’’—defined to encompass acts indictable under specific Federal criminal provisions,
Officer Cyril Rombach of the Burbank Police Department, an experienced and well-trained narcotics officer, applied for a warrant to search several residences and automobiles for cocaine,
Raymond Johnson snatched a purse that had been left in an unattended car at a gas station. The purse contained both money and a firearm. Johnson was convicted for the crimes of grand theft of
Olivo was in the hardware area of a department store. A security guard saw him look around, take a set of wrenches, and conceal it in his clothing. Olivo looked around once more and proceeded toward
The Penguin intentionally hits Batman with his umbrella. Batman, stunned by the blow, falls backwards, knocking Robin down. Robin’s leg is broken in the fall, and he cries out, ‘‘Holy broken
CEO was convinced by his employee, M. Ploy, that a coworker, A. Cused, had been stealing money from the company. At lunch that day in the company cafeteria, CEO discharges Cused from her employment,
Ralph kisses Edith while she is asleep but does not waken or harm her. Edith sues Ralph for battery. Has a battery been committed?
Claude, a creditor seeking to collect a debt, calls on Dianne and demands payment in a rude and insolent manner. When Dianne says that she cannot pay, Claude calls Dianne a deadbeat and says that he
Lana, a ten-year-old child, is run over by a car negligently driven by Mitchel. Lana, at the time of the accident, was acting reasonably and without negligence. Clark, a newspaper reporter,
In 1963 the Saturday Evening Post featured an article entitled ‘‘The Story of a College Football Fix,’’ characterized in the subtitle as ‘‘A Shocking Report of How Wally Butts and Bear
Joan, a patient confined in a hospital, has a rare disease that is of great interest to the public. Carol, a television reporter, requests Joan to consent to an interview. Joan refuses, but Carol,
Owner has a place on his land where he piles trash. The pile has been there for three months. John, a neighbor of Owner and without Owner’s consent or knowledge, throws trash onto the trash pile.
Chris leaves her car parked in front of a store. There are no signs that say Chris cannot park there. The store owner, however, needs the car moved to enable a delivery truck to unload. He releases
Carr borrowed John’s brand-new car for the purpose of going to the store. He told John he would be right back. Carr then decided, however, to go to the beach while he had the car. Can John recover
Marcia Samms claimed that David Eccles had repeatedly and persistently called her at various hours, including late at night, from May to December, soliciting her to have illicit sexual relations with
National Bond and Investment Company sent two of its employees to repossess Whithorn’s car after he failed to complete the payments. The two repossessors located Whithorn while he was driving his
In March, William Proxmire, a U.S. senator from Wisconsin, initiated the ‘‘Golden Fleece of the Month Award’’ to publicize what he believed to be wasteful government spending. The second of
Capune was attempting a trip from New York to Florida on an eighteen-foot-long paddleboard. The trip was being covered by various media to gain publicity for Capune and certain products he endorsed.
Ralph Nader, who has been a critic of General Motors Corp. for several years, claims that when General Motors learned that Nader was about to publish a book entitled Unsafe at Any Speed, criticizing
Bill Kinsey was charged with murdering his wife while working for the Peace Corps in Tanzania. After waiting six months in jail, he was acquitted at a trial that attracted wide publicity. Five years
The Brineys (defendants) owned a large farm on which was located an abandoned farmhouse. For a ten-year period the house had been the subject of several trespassings and housebreakings. In an attempt
Plaintiff, John W. Carson, was the host and star of The Tonight Show, a well-known television program broadcast by the National Broadcasting Company. Carson also appeared as an entertainer in
Susan Jungclaus Peterson was a twenty-one-year-old student at Moorhead State University who had lived most of her life on her family farm in Minnesota. Though Susan was a dean’s list student during
Debra Agis was a waitress in a restaurant owned by the Howard Johnson Company. On May 23, Roger Dionne, manager of the restaurant, called a meeting of all waitresses at which he informed them that
The plaintiff, Edith Mitchell, was forcibly stopped as she exited a Wal-Mart (defendant) store. The plaintiff, accompanied by her thirteen-year-old daughter, went through the checkout and purchased
On July 31, Amanda Vaughn and Jason Vaughn accompanied their mother, Emma Simpson Vaughn, to a Wal-Mart store. Amanda’s friend, Kimberly Dickerson, was also with them. Once they entered the store,
A statute requiring railroads to fence their tracks is construed as intended solely to prevent animals that stray onto the right-of-way from being hit by trains. B&A Railroad Company fails to fence
Martha invites John to come to lunch. Though she knows that her private road is dangerous to travel, having been heavily eroded by recent rains, Martha doesn’t warn John of the condition,
Nathan is run over by a car and left lying in the street. Sam, seeing Nathan’s helpless state, places him in his car for the purpose of taking him to the hospital. Sam drives negligently into a
Led Foot drives his car carelessly into another car. The second car contains dynamite, which Led had no way of knowing. The collision causes an explosion, which shatters a window of a building half a
A statute requires all vessels traveling on the Great Lakes to provide lifeboats. One of Winston Steamship Company’s boats is sent out of port without a lifeboat. Perry, a sailor, falls overboard
Lionel is negligently driving an automobile at excessive speed. Reginald’s negligently driven car crosses the centerline of the highway and scrapes the side of Lionel’s car, damaging its fenders.
Ellen, the owner of a baseball park, is under a duty to the entering public to provide a reasonably sufficient number of screened seats to protect those who desire such protection against the risk of
Negligent in failing to give warning of the approach of its train to a crossing, CC Railroad thereby endangers Larry, a blind man who is about to cross. Mildred, a bystander, in a reasonable effort
Vance was served liquor while he was an intoxicated patron of the Clear Air Force Station Non-Commissioned Officers’ Club. He later injured himself as a result of his intoxication. An Alaska State
Timothy keeps a pet chimpanzee, which is thoroughly tamed and accustomed to playing with its owner’s children. The chimpanzee escapes, despite every precaution to keep it upon its owner’s
Hawkins slipped and fell on a puddle of water just inside the automatic door to the H. E. Butt Grocery Company’s store. The water had been tracked into the store by customers and blown through the
Escola, a waitress, was injured when a bottle of Coca-Cola exploded in her hand while she was putting it into the restaurant’s cooler. The bottle came from a shipment that had remained under the
Hunn injured herself when she slipped and fell on a loose plank while walking down some steps. The night before, while entering the hotel, she had noticed that the steps were dangerous, and although
Fredericks, a hotel owner, had a dog named ‘‘Sport’’ that he had trained as a watchdog. When Vincent Zarek, a guest at the hotel, leaned over to pet the dog, it bit him. Although Sport had
Two thugs in an alley in Manhattan held up an unidentified man. When the thieves departed with his possessions, the man quickly gave chase. He had almost caught one when the thief managed to force
A foul ball struck Marie Uzdavines on the head while she was watching the Metropolitan Baseball Club (‘‘The Mets’’) play the Philadelphia Phillies at the Mets’ home stadium in New York. The
Two-year-old David Allen was bitten by Joseph Whitehead’s dog while he was playing on the porch at the Allen residence. Allen suffered facial cuts, a severed muscle in his left eye, a hole in his
Larry VanEgdom, in an intoxicated state, bought alcoholic beverages from the Hudson Municipal Liquor Store in Hudson, South Dakota. An hour later, VanEgdom, while driving a car, struck and killed Guy
The MacGilvray Shiras was a ship owned by the Kinsman Transit Company. During the winter months, when Lake Erie was frozen, the ship and others moored at docks on the Buffalo River. As oftentimes
Carolyn Falgout accompanied William Wardlaw as a social guest to Wardlaw’s brother’s camp. After both parties had consumed intoxicating beverages, Falgout walked onto a pier that was then only

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