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Questions and Answers of
Business Law
a. Aren't banks liable if they pay forged checks? b. Was the PGA negligent in this case? c. wasn't the bank negligent, too? After all, it violated its own policy by cashing a $5,000 check without
a. What does "discharge" mean? b. According to the court, what is the intent requirement of discharge? c. Are Joe and Roberta liable to Evelyn on the notes? File this case under: What parents will do
a. How is an accountant's liability to third parties determined under the Restatement doctrine?b. How is an accountant's liability to third parties determined under the Ultramares doctrine?c. How is
a. What did Andersen do that upset government prosecutors? b. Why did it destroy documents? c. Did it know that the government would prosecute it or Enron? d. How did Andersen decide which documents
a. What is the purpose of the accountant client privilege? b. Does the accountant client privilege mean that an accountant cannot disclose anything her client tells her? c. To which of the questions
a. What is the duty of loyalty? b. In this case, is an express contractual relationship necessary for a duty of loyalty to arise? c. Besides the duty of loyalty, what additional area of the law
a. Who signed the contract? b. Did Van Damme know that Gelber owned the painting? c. If Van Damme knew that Gelber was the owner of the painting, then why does the d. But Van De Weghe knows that
a. Why would Kashin care if Kent was acting within his scope of employment? b. Was Kent driving to or from work when the accident happened? c. Was he involved in any diplomatic activity at the time
a. What did Klein do wrong? b. Klein felt he had been unfairly fired by the Beatles. What if he had simply told Bright Tunes information about "My Sweet Lord" out of spite, not to benefit him? c.
a. Did KPMG do anything wrong? b. What is a fiduciary duty? c. If KPMG wanted to start a consulting business, what should it have done? While serving as outside auditors for the consulting firm of
a. Kline showed how not to move from one job to another. What did he do wrong?b. What should he have done?c. Kline knew that Fink and Ulrich were good at their jobs. Why couldn't he hire them to work
a. Was Waitemeyer violating his duty of loyalty when he solicited clients after leaving Merrill Lynch? b. Some brokerage houses offer clients a reduced commission rate if they will stay with their
a. What is a power of attorney? b. When does it expire? c. Francis never told Joan that he revoked her power of attorney. If Joan did not know, how could her authority be revoked? d. But even after
a. Who owned the house that the Dickinsons lived in? b. Did Hal have actual authority to make decisions on landscaping? c. Did Carol tell Charter Oaks that Hal had authority? d. Did Carol give
Kevin was the manager of a radio station, WABC. A competing station lured him away. In his last month on the job at WABC, he notified two key on-air personalities that if they were to leave the
a. What does the Court mean when it states "the burden shifts?" b. Can you recall an instance, covered in tort law, where the burden shifts from Plaintiff to Defendant? c. What is the non retaliatory
a. Can a plaintiff bring a disparate impact claim under the ADEA? b. Is the scope of a disparate impact claim under the ADEA as broad as it is under Title VII? c. Did the City of Jackson base its
a. What are the two issues the Board said were in dispute? b. How did the Board define "concerted activity?" c. What were the two reasons the Board gave for rejecting the argument that Agency was
a. If a hospital or clinic refused to hire male OB GYNs, would it be in violation of Title VII? b. Would the hospital have a defense? c. Is this a legitimate defense? Increasingly, women prefer
a. Would Hardy's behavior offend a reasonable woman? b. So why did the lower court rule against Teresa Harris? c. Did the Supreme Court agree? d. How can you tell if you are committing sexual
a. There was some graphic conversation at the writers' table. How could the court not find it created a hostile work environment? b. Do you think it is meaningful that the writers warned Lyle in her
Despite its detailed dress code for employees, Starbucks stores permitted workers to wear multiple pins and buttons, some of which, but not all, were related to its employee-reward and
Catherine Wagon seller was a nurse at Scottsdale Memorial Hospital and an employee at will. While on a camping trip with other nurses, Wagon seller refused to join in a parody of the song, "Moon
a. What is a factor that the court looked at to determine if Duke Power had a discriminatory purpose? b. What does disparate impact mean? Before Title VII, Duke Power hired black employees only in
Teresa Harris was a manager at Forklift Systems; Charles Hardy was its president. Hardy frequently made inappropriate sexual comments to Harris and other women at the company. For example, he said to
Amaani Lyle was a comedy writers' assistant who worked on the production of the television show Friends. The show revolved around a group of young, sexually active adults, featured adult-oriented
a. If a hospital or clinic refused to hire male OB-GYNs, would it be in violation of Title VII? b. Would the hospital have a defense? c. Is this a legitimate defense? Increasingly, women prefer
a. How many employees must an employer have before the American with Disabilities Act (ADA) prohibits discrimination on the basis of disability?b. What is the definition of a disabled person under
More than 90 percent of employers conduct criminal background checks, and many of these automatically exclude any job applicant with a criminal record. Is this practice a violation of the law?
a. If the purpose of the offering circular is to ensure that the franchisor discloses all relevant facts, was that purpose achieved with the Rocky Mountain offering circular? b. Why did Stanford
In examining a franchise circular, what factors should a potential purchaser look at most closely? If your students obtained a copy of a franchise offering circular, this would be a good time to
a. What could DiFebo and Green have done to make this a partnership?b. The court indicated that DiFebo and Green had used this document in lieu of a will. According to the court's interpretation,
a. Is there a problem with this decision? b. How could Sue enforce this award if she is not actually a partner? Jon Warren was an equal partner with his father and brother in J-W Foods, a grocery
a. Why did the father sue his wife's partnership? b. What would happen if the partnership did not have liability insurance? c. Why would the partnership be liable to Remington? Wasn't it his
a. Why did the trial court decide that the insurance policy protected Curle and the partnership, but not Shelley? b. Is it fair to hold Curle liable when he did not know the policy had been
a. What is the definition of a partnership pursuant to the Uniform Partnership Act (UPA)? b. What factors do courts consider in determining whether a partnership exists? Tina Raymer ran a cleaning
a. The court said that a partnership is an association of two or more persons to carry on as co-owners of a business for profit. Didn't Love and Wilson write songs together for a profit? b. What
a. Were these four lawyers, in fact, partners? b. Why would the three other lawyers be liable for the misdeeds of a non-partner? c. So what is the moral of this story? Four lawyers shared a suite of
a. Is a partnership liable for the promises that its partners make? b. In this case, five partners promised the associate that, as long as he committed no major blunders, he would make partner the
a. for Phillips: On what theory would the law firm be liable for Carson's misdeeds? b. Did Carson's misdeeds occur in the ordinary course of the partnership's business? c. Did Carson act with the
a. Who started Lako? b. Over the life of the partnership, who did the most work for Lako? c. In fairness, should Charles be entitled to payment for his extra work? d. Was there an agreement that the
Randy for the reproduction and distribution of his paintings Herbert was to receive 50 percent of the gross sales revenues. Randy was responsible for all losses and for management of the business.
a. What is corporation by estoppel? b. Did SGL believe in good faith that Transition Metal existed when it entered into the purchase and sale? c. Why does the court think this point is not
If students completed the assignments on selecting a state of incorporation, draw a chart on the board, listing the different states and the reasons for their selection. Do the results show any
a. Why did Loudeye include an exculpatory clause in its charter?b. Does this benefit anyone other than the director?c. Does cumulative voting favor management or shareholders?d. Why did Gulf Oil
a. If students completed this research project, ask them now what they found out about written consents. b. Why does this issue matter? Instead of holding a meeting to approve a decision, directors
a. Why did Tramontana call a directors meeting?b. Why did May and her faction refuse to attend the meeting?c. What were the quorum requirements for a directors meeting? d. Were five directors
a. What type of remedy is piercing the corporate veil? b. What is piercing the corporate veil designed to do? c. What were some of the corporate formalities that Steven ignored? Auto Collection, Inc.
Michael incorporated Erin Homes, Inc., to manufacture mobile homes. He issued himself a stock certificate for 100 shares for which he made no payment. He and his wife served as officers and directors
The Resolution Trust Corp. (RTC) sued the directors of the Commonwealth Savings Association seeking to recover from them personally $200 million that the bank lost in bad real estate loans. The
a. What was the purpose of the Unocal "selective stock repurchase"?b. Why did the board care if Mesa took over the company?c. According to the court, what is the board's obligation in this
a. What is the duty of loyalty? b. How was the duty of loyalty violated given that a Special Committee was formed to evaluate the merger? Grupo Mexico was the controlling stockholder of Southern Peru
a. What business was LaVista Lottery in? b. What is keno? c. Was this a profitable business? d. So what was the problem? e. Did Bellino discuss his concerns with Anderson? f. What did he do? g. Is
a. Did Harris compete with the golf course? b. To what damages would the club be entitled? c. Is that what the club wants? Nancy Harris was the president of the Northeast Harbor Golf Club in Maine
a. The board members of RSL Plc and RSL Ltd overlapped. RSL Plc claims that because of this overlap, both boards were aware of what was going on with RSL Plc. Shouldn't that makes a difference when
a. What premium did Moore offer Wallace shareholders over the existing market price?b. What percent of the shareholders voted to accept Moore's offer?c. Why did the board say "No"?d. Why did Moore
James owned Despatch Industries. When his son, Wade, and son-in-law, Alan, started working for the company, they both signed identical employment contracts, which provided for a severance payment if
a. What was Chopra's role at Helio? b. As a shareholder, isn't he entitled to information about the company? c. Why type of information does shareholders have a right to receive? d. Was Chopra's
a. What were the three arguments put forth by Plaintiff?b. What goal of Hercules' proxy statement did the Court rely upon to grant Hercules Motion to Dismiss?c. What was the Court's point in noting
a. What was the court's ruling? b. What does the outcome of this case demonstrate? Defendant, craigslist, Inc., owned the most popular website in the country for classified ads. It had just two
a. What did Mr. Retzer owe Mrs. Retzer for alimony? b. What is Mr. Retzer's duty to Mrs. Retzer as a shareholder of the company? c. Is the result in this case fair? Mr. Retzer worked long hours to
a. Was it fair for Sinclair to force Sinven to pay dividends so large that it faced bankruptcy? b. Was it fair for Sinclair to hire other, wholly owned subsidiaries rather than Sinven? c. Was it fair
a. What is a derivative suit?b. Why would anyone want to do that?c. Why can't they simply file a direct lawsuit?d. Why would any shareholder file suit if recovery goes to the corporation?e. Are there
Corporate executives are not the only people to earn fabulous salaries. Some athletes earn even more than CEOs. What is the difference between athletes and executives (besides a hook shot)?
DeVry Inc. runs for-profit schools. Its shareholders submitted a proposal that would require the company to "annually report to shareholders on the expected ability of students at Company-owned
a. What is the goal of the automatic stay? b. How did Dan Holiday Furniture violate the automatic stay provisions? c. But didn't Frank Jackson say he wanted to continue paying the store? d. The court
Kuhn got into financial trouble when his law partnership filed for bankruptcy. One of his partners was convicted of defrauding clients and was sentenced to 70 months in prison. How do you think Kuhn
a. Why are claims paid in this order? b. Do students agree with these priorities?
What is the logic behind making these debts non dischargeable?
a. How did the court determine whether or not the student loans would be dischargeable? b. Why did Congress choose to make student loans a debt than cannot be discharged? c. What were the Kellys
a. Did the court agree to the reaffirmation? b. Is the debtor's truck going to be reposed? c. What might be the debtor's reason for the reaffirmation? Two months before filing for bankruptcy, William
a. What is a co-signer? b. What debt did the Hoffmans want to reaffirm? c. How did the status of Mrs. Hoffman's mother as a co-signer discourage the Hoffmans from defaulting on the loan? d. What does
a. What are the requirements for Rule 506 under Reg D? b. Inter Link sold stock to hundreds of investors. Is that a violation of Rule 506? c. Did Inter Link comply with Rule 506? d. Inter Link did
a. What is a direct public offering? b. What rules apply to DPOs? c. From the company's perspective, what are the advantages of a DPO? d. Are there any disadvantages for the company? e. Is there
a. What is the goal of a registration statement? b. Is a registration statement by definition defective if the investment turns out to be worthless? c. Why did the plaintiffs' file suit in this
a. What was the holding? b. What does this mean? Zicam Cold Remedy was a nasal spray (or gel) that accounted for 70% of Matrixx's sales revenue. Its active ingredient was zinc gluconate. Matrixx
a. What was the holding in Basic? b. What was the rationale for the holding in Basic? c. What was the basis of Haliburton's argument in this case? The events of this case occurred in the following
a. Did Charter make false statements about the company's financial strength?b. What role is this fraud did Scientific-Atlanta play?c. In agreeing to this plan, didn't all of the companies engage in
a. What does §10(b) prohibit? b. What does that statute have to do with insider trading? c. What is wrong with insider trading? d. What did O'Hagan do wrong? e. How did he learn this? f. Was
Ask students to consider the following examples from a newspaper article on insider trading. 8 Do they agree with the newspaper's answers? a. You are a taxi driver who overhears a well-dressed
Do you love ice cream? Here is an opportunity for you! For only $800, you can buy a cow from Berkshire Ice Cream. The company gets milk from the cow and you get to share in the profits from the sale
Gary Griffiths was a vice president for a railroad. The CEO asked him to prepare an inventory of all the rolling stock the company owned and to arrange trips among its rail yards for a group of men
a. Has Stilwell violated the antitrust laws? b. What is the tying product? c. What is the tied service? d. Does Stilwell have significant power in the market for the tying product? e. What
a. What does Section 1 of the Sherman Act prohibit? b. Was the agreement between Apple and the publishers a vertical or horizontal agreement? Why? c. Was Apple's agreement with the publishers an
a. Did Chrysler treat Payne differently from other dealers?b. Is it illegal for Chrysler to charge customers different prices? c. What does that mean?d. How do you show lower costs and lost
a. What provisions of the antitrust statutes did the pharmacies accuse the drug manufacturers of violating? b. Have the manufacturers violated price-fixing prohibitions? c. What is the moral of the
a. What is price discrimination? b. isn't that what was going on in the Snapple case? Snapple was charging a higher price per case to the LADs than to the transshippers? c. Then why was that conduct
a. How large can your market share be before your merger is illegal? b. WMI had 48.8 percent of the market. Did it have enough market power to set prices? c. In merger cases, what issue is more
a. What is predatory pricing?b. Did Brown & Williamson lower its prices below cost? c. Did Brown & Williamson intend to drive Liggett out of business?d. So why did Liggett lose?e. Does
a. Can resale price maintenance have anti-competitive effects? b. If the price agreements have an anti-competitive effect, why did the court decide they were to be judged using rule of reason instead
After acquiring the Schick brand name and electric shaver assets, North American Phillips controlled 55 percent of the electric shaver industry in the United States. Remington, a competitor, claimed
a. Does the Magnuson Moss Warranty Act apply to all warranties? b. Is a house a consumer product? c. What about a product attached to a house, such as an air conditioner or hot water heater? d. Is a
a. What interest rate is Poor paying?b. What other alternatives does she have?c. isn't this incredibly sleazy on the part of the payday lenders?d. Forget sleazy, isn't this illegal, at least in
a. Have these firms violated TILA? b. Note that if Bonfiglio had borrowed money from a bank to pay the law firm, the bank would have had to comply with TILA. Why should the bank have to comply and
a. Under the EFTA, if a consumer wants to stop payment of a preauthorized electronic fund transfer, what must they do? b. What was the Court's decision regarding the Defendant's motion to dismiss? c.
a. On what basis did the Court side with Bradley regarding the fee? b. What contractual language did the court suggest would allow for recovery of the fee against Bradley? c. What does the FDCPA
a. How much would the Navaho Generating Station have to spend to comply with the EPA order to reduce its sulfur dioxide emissions?b. What benefit would NGS and the public at large gain from this
a. Why did the tribe want C-11 defined as a point source? b. What was the District's argument? c. What did the Court rule? d. The result in this case seems straightforward. Why did the District
a. What arguments can you make that CERCLA should be reformed? b. What arguments can you make that CERCLA should not be amended (or at least not weakened)?Congress passed Superfund legislation, at
a. If NEPA does not impose and substantive requirements on federal agencies, what is the point of the law? b. Given that purpose, how does the law protect natural resources and the environment? The
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