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Questions and Answers of
Business Law
What role does the Federal Reserve System play in clearing checks?
How might Check 21 affect the potential for banking fraud? Are there circumstances in which y a copy of an original canceled paper check could be demanded?
What types of financial institutions are covered by the EFTA?
Are there legal safeguards for the privacy of a user of e-money against the issuer?
How does a mechanic's lien assist creditors?
What are three ways for a debtor to avoid mortgage foreclosure?
In a Chapter 7 bankruptcy, what happens if a court finds that there was "substantial abuse"? How is the means test used?
What constitutes a preference in bankruptcy law? When is a trustee able to avoid preferential transfers?
Filing for bankruptcy under Chapter 11 may involve a time-consuming process. How might this affect the likelihood that a firm will be able to negotiate a workout agreement with its creditors?
What is required for an enforceable security interest?
What happens when a secured party and an unsecured party claim security interests in the same collateral?
How does a writ of execution work?
What are the differences between contracts of suretyship and guaranty contracts?
What is the usual method of mortgage foreclosure?
Who can use Chapter 7?
What powers does a trustee have?
What is the essential difference between bankruptcy under Chapter 7 and bankruptcy under Chapter 11?
If an employee accesses Facebook at work even though personal use of a workplace computer is against the employer's stated policies, can the employee be criminally prosecuted? Why or why not?
How would U.S. society be affected if employers could not be held vicariously liable for their employees' torts?
What duties to Church might Bagley have violated in this situation?
The court ruled that Sussman was personally liable on the contract with Stonhard. Is the principal, Blue Ridge Foods, also liable?
Why is agency law essential to the existence and operation of a corporation?
What notice is required to third parties when an agency terminates?
What are some of the factors that can determine whether an individual is considered an employee or an independent contractor?
What are some other advantages of being an independent contractor? What might be some disadvantages?
What are the general duties that agents and principals owe each other? Are there situations in which the duty of loyalty to one's employer could come into conflict with other duties?
What effect do a principal's representations giving apparent authority to an agent have on the principal's liability?
What happens if a principal does not ratify an agent's unauthorized act?
Are undisclosed principals and their agents liable under contracts made by the agents with third parties?
For purposes of the doctrine of respondeat superior, what are factors for determining whether an act is within the scope of employment?
What is the employment-at-will doctrine?
What is required to establish a prima facie case of disparate-treatment discrimination?
Why do you think U.S. corporations are more aggressive than European companies in taking steps to prevent sexual harassment in the workplace?
What are some important provisions of the Fair Labor Standards Act?
How is it possible for jurors and judges to overcome their own prejudices in deciding cases in which gender or another protected trait plays a key role? Is it possible to fully protect employees from
What protection do employees have from the financial impact of retirement, disability, death, hospitalization, and unemployment?
Why should immigration be permitted?
Why should immigration be restricted?
Is penalizing employers the best approach to take in attempting to curb illegal immigration?
What is disparate-impact discrimination and how is it proved?
What are some defenses available in employment discrimination cases?
What is sexual harassment and under what circumstances might an employer be liable?
What are the key differences between the rights and liabilities of general partners and those of limited partners?
What might the Sarks have done to avoid this dispute, as well as the loss of their home and their apparently declining business?
Why does the law impose fiduciary obligations on general partners?
What are the characteristics of a limited liability partnership (LLP)?
What is the difference between an LLC and a limited liability partnership (LLP)?
Why are LLCs and partnerships attractive to businesspersons?
Why would a limited liability company (LLC) choose to be taxed as a corporation, rather than as a partnership?
In some circumstances, the principles of partnership law may be applied to a limited liability company. Should the principles of partnership law apply to other forms of business entities?
How is corporate income double-taxed?
What are some of the more important powers that may be exercised by shareholders?
Does a corporation have a right to freedom of speech?
What steps must a foreign corporation take to qualify to do business in a state?
How does a court decide whether it may exercise jurisdiction over a foreign or alien corporation?
What is the major advantage of an S corporation?
What actions must a director or officer take to avoid liability when a corporation enters into a contract or engages in a transaction in which an officer or director has a material interest?
What sort of legal protection is offered to directors and officers by the business judgment rule?
Are directors entitled to be indemnified for any legal costs they incur in defending suits against the corporation?
What are securities?
What are the major responsibilities of the Securities and Exchange Commission?
What information must be included in a registration statement prior to a security being offered to the public?
What are some examples of material facts that must be disclosed in connection with the purchase or sale of a security?
What is the tipper/tippee theory?
What is the misappropriation theory?
Will audit and compensation committees be effective in enhancing the directors' ability to monitor officers' actions? How will the new requirements for certified financial disclosures likely affect
How are securities laws being applied in the online environment?
What rule do courts apply to price-fixing agreements, and why?
Companies subject to lengthy antitrust investigations and court proceedings in Europe argue that such delays result in "reputational damage." Why might that be so?
The publishing business is in dire straits today with retail bookstores going bankrupt and publishers laying off hundreds of employees. Why do you think the declining book business was worthy of so
How did McWane's exclusivity policy harm competition? Explain.
Suppose that instead of noting on the ticket that the price included a parking fee, Live Nation had simply charged $9 more for the ticket and announced that there was "free" parking for all who
How does the Sherman Act affect international business?
What factors contributed to the initial ineffectiveness of the Sherman Act when it was first enacted?
What is the difference between a per se violation and a violation that is analyzed using a rule of reason?
When are price-fixing agreements lawful under the Sherman Act?
In what circumstances might a tying arrangement be considered procompetitive?
What are the basic duties of a bailee?
While walking to work, Bill finds an expensive ring lying on the curb. Bill gives the ring to his son, Hunter. Two weeks later, Martin Avery, the true owner of the ring, discovers that Bill had found
What sort of defenses may an insurance company raise against payment on a claim?
Is it possible to deliver a gift of personal property over the Internet?
What is the difference between mislaid, lost and abandoned property?
What is the difference between actual delivery and constructive delivery in creating a bailment?
Do bailees have the right to limit their bailment liability?
How may a bailor satisfy his duty to provide the bailee with goods that are free from hidden defects that could injure the bailee?
Are innkeepers and hotel owners strictly liable when their guests lose personal property on the premises?
Can anyone claim to have an insurable interest in a particular person or property?
In what circumstances may an insurer cancel a policy?
What are three main goals of the Clean Water Act?
Assuming that Ackley's behavior was unethical, was it because she failed to tell Stambovsky something about the house that he did not know, or was it unethical because of the nature of the
What is a fee simple absolute?
Is it appropriate to impose significant fines on citizens, or even imprison individuals, when they violate environmental laws?
What is the difference between an easement and a profit?
What conditions must be satisfied before a person can acquire property by adverse possession?
What is the difference between an assignment of a lease and a sublease?
How may a polluter be held liable on a common law nuisance theory?
Under the National Environmental Policy Act, when are federal agencies required to prepare environmental impact statements?
The Clean Air Act provides a basis for regulating air pollution from what two kinds of sources?
How are the objectives of the Clean Water Act to be accomplished?
Is it unethical to give the interest of fighting terrorism precedence over an international legal principle?
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