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Questions and Answers of Business Law

Beverly Tull had worked for Atchison Leather Products, Inc., in Kansas for ten years when, in 1999, she began to complain of hand, wrist, and shoulder pain. Atchison recommended that she contact a
Go to this text’s Web site at academic. cengage.com/blaw/clarkson and select “Chapter 33.” Click on “Video Questions” and view the video titled Employment at Will. Then answer the following
Why might telecommuting employees sometimes accept being wrongly classified as “executives” or “professionals” under the overtime-pay requirements and thus be exempt from overtime pay?
If more class-action lawsuits claiming overtime pay for telecommuters are successful, what do you think will be the effect on telecommuting? Why?
What If the Facts Were Different? Suppose that the lower court had determined that the Moonlight’s drivers and owners qualified as employees for Title VII purposes. How might the course of this
The Global Dimension Equal employment opportunity is not a universal policy, and some countries restrict the role of women in employment. Should a U.S. firm doing business is those countries respect
Why did the Court evaluate the language of Title VII’s “antidiscrimination” and “antiretaliation” provisions in this case?
What was the Court’s interpretation of those provisions?
What If the Facts Were Different? If Neely had admitted that he had committed all of the “wrongful” acts attributed to him by Cash, would the outcome of this case have been different? Why or why
The Legal Environment Dimension Why is discrimination presumed under the ADEA when a plaintiff establishes a prima facie case, unless the employer provides a nondiscriminatory explanation for the
Would Lyle’s claim of racial discrimination be for intentional (disparate-treatment) or unintentional (disparate-impact) discrimination? Explain. Amaani Lyle, an African American woman, was
Can Lyle establish a prima facie case of racial discrimination? Why or why not? Amaani Lyle, an African American woman, was hired by Warner Brothers Television Productions to be a
When Lyle was hired, she was told that typing speed was extremely important to the position. At the time, she maintained that she could type eighty words per minute, so she was not given a typing
Lyle’s sexual-harassment claim is based on the hostile work environment created by the writers’ sexually offensive conduct at meetings that she was required to attend. The writers, however, argue
Discuss fully whether either of the following actions would constitute a violation of Title VII of the 1964 Civil Rights Act, as amended:(a) Tennington, Inc., is a consulting firm and has ten
Chinawa, a major processor of cheese sold throughout the United States, employs one hundred workers at its principal processing plant. The plant is located in Heartland Corners, which has a
PGA Tour, Inc., sponsors professional golf tournaments. A player may enter in several ways, but the most common method is to compete successfully in a three-stage qualifying tournament known as the
The United Auto Workers (UAW) is the union that represents the employees of General Dynamics Land Systems, Inc. In 1997, a collective bargaining agreement between UAW and General Dynamics eliminated
Kimberly Cloutier began working at the Costco store in West Springfield, Massachusetts, in July 1997. Cloutier had multiple earrings and four tattoos, but no facial piercings. In June 1998, Costco
For twenty years, Darlene Jespersen worked as a bartender at Harrah’s Casino in Reno, Nevada. In 2000, Harrah’s implemented a “Personal Best” program that included new grooming standards.
Cerebral palsy limits Steven Bradley’s use of his legs. He uses forearm crutches for short-distance walks and a wheelchair for longer distances. Standing for more than ten or fifteen minutes is
Titan Distribution, Inc., employed Quintak, Inc., to run its tire mounting and distribution operation in Des Moines, Iowa. Robert Chalfant worked for Quintak as a second shift supervisor at Titan. He
Go to Case 34.2, Burlington Northern and Santa Fe Railway Co. v. White, __ U.S.__,126 S.Ct.2405, 165 L.Ed.2d 345 (2006), on pages 703 and 704. Read the excerpt and answer the following questions. (a)
Go to this text’s Web site at academic. cengage.com/blaw/clarkson and select “Chapter 34.” Click on “Video Questions” and view the video titled Parenthood. Then answer the following
Suppose that an employee writes a message to like-minded persons concerning religious beliefs or political views. Can the employee be fired in that situation? Who decides what is acceptable Internet
How might an employee avoid the possibility that his or her employer will discover objectionable items on the employee’s computer?
The E-Commerce Dimension How might the Internet expedite formal rulemaking procedures such as those required by the U.S. Court of Appeals for the Ninth Circuit in this case? Discuss.
The Ethical Dimension Is it ethical for an administrative agency to reverse or otherwise alter its policy when the change increases the financial burden on the regulated parties? Explain.
Suppose that the SEC asserts that it has always had the statutory authority to pursue persons for insider trading regardless of whether they personally profited from the transaction. This is the only
Would a court be likely to give Chevron deference to the SEC’s interpretation of the law on insider trading? Why or why not? Assume that the Securities and Exchange Commission (SEC) has a rule
The Occupational Safety and Health Administration (OSHA) is part of the U.S. Department of Labor. OSHA issued a “Directive” under which each employer in selected industries was to be inspected
Riverdale Mills Corp. makes plastic-coated steel wire products in Northbridge, Massachusetts. Riverdale uses a water-based cleaning process that generates acidic and alkaline wastewater. To meet
The Investment Company Act of 1940 prohibits a mutual fund from engaging in certain transactions in which there may be a conflict of interest between the manager of the fund and its shareholders.
A well-documented rise in global temperatures has coincided with a significant increase in the concentration of carbon dioxide in the atmosphere. Some scientists believe that the two trends are
To ensure highway safety and protect driver health, Congress charged federal agencies with regulating the hours of service of commercial motor vehicle operators. Between 1940 and 2003, the
How might the defendants have avoided the charges against them in this case?
What organization has the authority to ban the sale of scooters based on safety concerns? Leota Sage saw a local motorcycle dealer’s newspaper advertisement for a MetroRider EZ electric
Andrew, a resident of California, received an advertising circular in the U.S. mail announcing a new line of regional cookbooks distributed by the Every-Kind Cookbook Co. Andrew didn’t want any
Maria Ochoa receives two new credit cards on May 1. She had solicited one of them from Midtown Department Store, and the other arrived unsolicited from High-Flying Airlines. During the month of May,
On June 28, a salesperson for Renowned Books called on the Gonchars at their home. After a very persuasive sales pitch by the agent, the Gonchars agreed in writing to purchase a twenty-volume set of
CrossCheck, Inc., provides check-authorization services to retail merchants. When a customer presents a check, the merchant contacts CrossCheck, which estimates the probability that the check will
One of the products that McDonald’s Corp. sells is the Happy MealR, which consists of a McDonald’s food entree, a small order of french fries, a small drink, and a toy. In the early 1990s,
55th Management Corp. in New York City owns residential property that it leases to various tenants. In June 2000, claiming that one of the tenants, Leslie Goldman, owed more than $13,000 in back
After graduating from law school—and serving time in prison for attempting to collect debts by posing as an FBI agent—Barry Sussman theorized that if a debt-collection business collected only
Go to this text’s Web site at academic. cengage.com/blaw/clarkson and select “Chapter 44.” Click on “Video Questions” and view the video titled Advertising Communication Law: Bait
Did the U.S. Court of Appeals for the Fourth Circuit’s attempt to equate the NSPS and PSD regulations implicitly—without analysis or discussion—invalidate those regulations? Explain.
The Global Dimension Should the Court have ruled differently if the discharge had been into international or foreign waters rather than into the waters of the United States? Explain.
The Legal Environment Dimension According to the Court’s interpretation, what is required for a state regulation or rule to be preempted under FIFRA? Why is this significant?
Are air-quality regulations typically overseen by federal, state, or local governments? In the late 1980s, residents of Lake Caliopa, Minnesota, began noticing an unusually high number of lung
What standard for limiting emissions into the air does Cotton Design’s pollution-control equipment have to meet? In the late 1980s, residents of Lake Caliopa, Minnesota, began noticing an
What information must the city send to every household that the city supplies with water? In the late 1980s, residents of Lake Caliopa, Minnesota, began noticing an unusually high number of lung
Some scientific knowledge indicates that there is no safe level of exposure to a cancer-causing agent. In theory, even one molecule of such a substance has the potential for causing cancer. Section
According to the court’s opinion in this case, is an administrative agency locked into its first interpretation of a statute? Why or why not?
Were the agency’s reasons for its actions rejected in this case because the court disagreed with those reasons? Explain.
What If the Facts Were Different? Suppose that the statutory definitions of THC and marijuana covered naturally occurring THC and non-psychoactive hemp. Would the result in this case have been
Is the SEC an executive agency or an independent regulatory agency? Does it matter to the outcome of this dispute? Explain. Assume that the Securities and Exchange Commission (SEC) has a rule
Now assume that a court finds that the new rule is merely “interpretive.” What effect would this determination have on whether the SEC had to follow the APA’s rulemaking procedures? Assume
For decades, the Federal Trade Commission (FTC) resolved fair trade and advertising disputes through individual adjudications. In the 1960s, the FTC began promulgating rules that defined fair and
Lion Raisins, Inc., is a family-owned, family-operated business that grows raisins and markets them to private enterprises. In the 1990s, Lion also successfully bid on more than fifteen contracts
Maureen Droge began working for United Air Lines, Inc. (UAL), as a flight attendant in 1990. In 1995, she was assigned to Paris, France, where she became pregnant. Because UAL does not allow its
Under federal law, when accepting bids on a contract, an agency must hold “discussions” with all offerors. An agency may ask a single offeror for “clarification” of its proposal, however,
As an administrative agency, what powers might the FTC use to determine more precisely the number of consumers who paid their phone bills but did not use, or authorize others to use, the
The Ethical Dimension The jury awarded Saunders only $1,000 in statutory damages, but in the circumstances, this was the maximum allowed under the FCRA. What does the fact that the jury felt
The E-Commerce Dimension Should the Internet make it easier or more difficult to ensure that the information provided to and by credit reporting agencies is accurate? Why?
The Global Dimension Should the court have ruled that as long as a drug has been approved for use in any country, terminally ill patients in the United States should be given access to it? Explain.
The Legal Environment Dimension In light of the analysis in this case, what option is left to those who believe that terminally ill patients—not the government—should make the decision about
Had the dealer engaged in deceptive advertising? Why or why not? Leota Sage saw a local motorcycle dealer’s newspaper advertisement for a MetroRider EZ electric scooter for $1,699. When she
Suppose that Sage had ordered the scooter through the dealer’s Web site but the dealer had been unable to deliver it by the date promised. What would the FTC have required the merchant to do in
Assuming that the clerk had required a cosigner based on Sage’s race or gender, what act prohibits such credit discrimination? Leota Sage saw a local motorcycle dealer’s newspaper advertisement
Source One Associates, Inc., is based in Poughquag, New York. Peter Easton, Source One’s president, is responsible for its daily operations. Between 1995 and 1997, Source One received requests from
Set Up & Ready to Make Money in Minutes Guaranteed! the ads claimed. “The Internet Treasure Chest (ITC) will give you everything you need to start your own exciting Internet business including your
What would support an argument that the Court should have given the term modification a definition that would be common to both regulations?
What If the Facts Were Different? Would the result in this case have been different if the quality of the water flowing through the turbines of Warren’s dams improved before returning to the river?
What If the Facts Were Different? Suppose that FIFRA required Strongarm’s label to include the word CAUTION, and the Texas peanut farmers filed their claims under a state regulation that required
Under the common law, what would each plaintiff be required to identify in order to be given relief by the court? In the late 1980s, residents of Lake Caliopa, Minnesota, began noticing an
What If the Facts Were Different? If Mundelein had identified itself as a residence when ordering the satellite system, how might the result in this case have been different?
The Global Dimension Because the Internet has made it possible for sole proprietorships to do business worldwide without greatly increasing their costs, should they be considered, for some purposes,
Should a franchisor be allowed to control the operation of its franchisee without liability for the franchisee’s conduct? Explain your answer.
What would constitute the “right to control” under a franchise contract?
What If the Facts Were Different? Suppose that in March 2004, Chic Miller’s had placed one newspaper ad promoting its services and had sold one car. Would the result have been different?
The Global Dimension Should General Motors Corporation, or any domestic franchisor, be allowed to impose different contract terms on franchisees in foreign countries than it does on franchisees in
What type of franchise was Del Rey’s La Grande Enchilada restaurant? Carlos Del Rey decided to open a Mexican fast-food restaurant and signed a franchise contract with a national chain called
If Del Rey operates the restaurant as a sole proprietorship, who bears the loss for the damaged kitchen? Explain. Carlos Del Rey decided to open a Mexican fast-food restaurant and signed a
Assume that Del Rey files a lawsuit against La Grande Enchilada, claiming that his franchise was wrongfully terminated. What is the main factor that a court would consider in determining whether the
Would a court be likely to rule that La Grande Enchilada had good cause to terminate Del Rey’s franchise in this situation? Why or why not? Carlos Del Rey decided to open a Mexican fast-food
Maria, Pablo, and Vicky are recent college graduates who would like to go into business for themselves. They are considering purchasing a franchise. If they enter into a franchising arrangement, they
National Foods, Inc., sells franchises to its fast-food restaurants, known as Chicky-D’s. Under the franchise agreement, franchisees agree to hire and train employees strictly according to
Otmar has secured a particular high-quality ice cream franchise. The franchise agreement calls for Otmar to sell the ice cream only at a specific location; to buy all the ice cream from the
Omega Computers, Inc., is a franchisor that grants exclusive geographic territories to its franchisees with retail locations, including Pete’s Digital Products. After selling more than two hundred
In 1985, Bruce Byrne, with his sons Scott and Gordon, opened Lone Star R.V. Sales, Inc., a motor home dealership in Houston, Texas. In 1994, Lone Star became a franchised dealer for Winnebago
In the automobile industry, luxury-car customers are considered the most demanding segment of the market with respect to customer service. Jaguar Cars, a division of Ford Motor Co., is the exclusive
Walik Elkhatib, a Palestinian Arab, emigrated to the United States in 1971 and became an American citizen. Eight years later, Elkhatib bought a Dunkin’ Donuts, Inc., franchise in Bellwood,
On August 23, 1995, Climaco Guzman entered into a commercial janitorial services franchise agreement with Jan-Pro Cleaning Systems, Inc., in Rhode Island for a franchise fee of $3,285. In the
James Ferguson operates “Jim’s 11-E Auto Sales” in Jonesborough, Tennessee, as a sole proprietorship. In 1999, Consumers Insurance Co. issued a policy to “Jim Ferguson, Jim’s 11E Auto
August 2004, Ralph Vilardo contacted Travel Center, Inc., in Cincinnati, Ohio, to buy a trip to Florida in December for his family to celebrate his fiftieth wedding anniversary. Vilardo paid $6,900
What If the Facts Were Different? Suppose that Moren’s predominant motive in bringing her son to the restaurant had been to benefit herself by feeding him free pizza. Would the result have been
The Legal Environment Dimension What seems to have occurred in this case that might have served as an alternative basis for imposing liability on the partnership?
The Ethical Dimension Was it unethical for Randall to file a suit against his parents to obtain what he regarded as a fair price for his interest? Why or why not?
The Legal Environment Dimension How and why might the value of a partnership interest in a going concern differ from the value of the same interest as a result of a liquidation?
Why did the court hold that a forced sale of the property of the limited partnership was not appropriate in this case?

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