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Questions and Answers of Business Law

Neal Rubin, while driving his car in Chicago, inadvertently blocked the path of a Yellow Cab Co. taxi driven by Robert Ball, causing the taxi to swerve and hit Rubin’s car. Angered by Rubin’s
Brazilian & Colombian Co. (B&C), a food broker, ordered 40 barrels of olives from Mawer-Gulden-Annis (MGA). MGA’s shipping clerk was later told to make out the bill of lading to B&C’s customer
What remedies does an employee who has been wrongfully discharged have against an employer?
Michael Smyth was an operations manager at Pillsbury Co., and his employment status was that of an employee at will. Smyth received certain e-mail messages at home, and he replied to his supervisor
Michael Hauck claimed that he was discharged by his employer, Sabine Pilot Service, because he refused its direction to perform the illegal act of pumping the bilges of the employer’s vessel into
Jeanne Eenkhoorn worked as a supervisor at a business office for the New York Telephone Co. While at work, she invented a process for terminating the telephone services of delinquent subscribers. The
One Monday, a labor organization affiliated with the International Ladies Garment Workers Union began an organizational drive among the employees of Whittal & Son. On the following Monday, six of the
David Stark submitted an application to the maintenance department of Wyman-Gordon Co. Stark was a journeyman millwright with nine years’ experience at a neighboring company at the time of his
Armenda Malone and Stephen Krantz were induced to leave other employment and join ABI’s CD-Rom division as national account managers in part because of a favorable commission agreement at ABI.
Jane Richards was employed as the sole crane operator of Gale Corp. and held the part-time union position of shop steward for the plant. On May 15, Richards complained to OSHA concerning what she
Virgil Deemer and Thomas Cornwell, employees at a Whirlpool Corporation plant, refused to comply with a supervisor’s order that they perform maintenance work on certain mesh screens located some 20
In May, the nurses union at Waterbury Hospital went on strike, and the hospital was shut down. In mid-June, the hospital began hiring replacements and gradually opened many units. To induce nurses to
Buffo was employed by the Baltimore & Ohio Railroad. Along with a number of other workers, he was removing old brakes from railroad cars and replacing them with new brakes. In the course of the work,
Mark Phipps was employed as a cashier at a Clark gas station. A customer drove into the station and asked him to pump leaded gasoline into her 1976 Chevrolet, an automobile equipped to receive only
Reno, Nevada, police officers John Bohach and Jon Catalano communicated with each other on the Alphapage computer system, typing messages on a keyboard and sending them to each other by use of a
Michael Kittell was employed at Vermont Weatherboard. While operating a saw at the plant, Kittell was seriously injured when a splinter flew into his eye and penetrated his head. Kittell sued Vermont
List the major federal statutes dealing with the regulation of equal rights in employment.
Casey Martin, a professional golfer with a circulatory disorder that makes walking an 18-hole golf course painfully difficult, was successful in his Title III of the Americans with Disabilities Act
Dial Corp. implemented a “work tolerance test,” which all new employees were required to pass to obtain employment in its Armour Star brand sausage-making department. Of the applicants who passed
Continental Photo, Inc., is a portrait photography company. Alex Riley, a black man, applied for a position as a photographer with Continental. Riley submitted an application and was interviewed. In
Beth Faragher worked part-time and summers as an ocean lifeguard for the Marine Safety Section of the city of Boca Raton, Florida. Bill Terry and David Silverman were her supervisors over the
Mohen is a member of the Sikh religion whose practice forbids cutting or shaving facial hair and requires wearing a turban that covers the head. In accordance with the dictates of his religion, Mohen
Sylvia Hayes worked as a staff technician in the radiology department of Shelby Memorial Hospital. On October 1, Hayes was told by her physician that she was pregnant. When Hayes informed the doctor
Overton suffered from depression and was made sleepy at work by medication taken for this condition. Also, because of his medical condition, Overton needed a work area away from public access and
A teenage female high school student named Salazar was employed part-time at Church’s Fried Chicken Restaurant. Salazar was hired and supervised by Simon Garza, the assistant manager of the
John Chadbourne was hired by Raytheon on February 4, 1980. His job performance reviews were uniformly high. In December 1983, Chadbourne was hospitalized and diagnosed with AIDS. In January 1984, his
Connie Cunico, a white woman, was employed by the Pueblo, Colorado, School District as a social worker. She and other social workers were laid off in seniority order because of the district’s poor
Della Janich was employed as a matron at the Yellowstone County Jail in Montana. The duties of the position of matron resemble those of a parallel male position of jailer. Both employees have the
Following a decline in cigarette sales, L & M, Inc., hired J. Gfeller as vice president of sales and charged him to turn around the sales decline. After receiving an analysis of the ages of sales
Mazir Coleman had driven a school bus for the Casey County, Kentucky, Board of Education for four years. After that time, Coleman’s left leg had to be amputated. Coleman was fitted with an
Marcia Saxton worked for Jerry Richardson, a supervisor at AT&T’s International Division. Richardson made advances to Saxton on two occasions over a three-week period. Each time Saxton told him she
Glenda Brunette, a 60-year old widow, operates a pedigreed cat breeding business on her 11-acre ranch and avocado farm in Ojai, California. You can enter Brunette’s ranch only by passing through a
The Family Educational Rights and Privacy Act (FERPA) protects students’ rights to keep their academic records private. What duties are imposed and upon whom because of this protection of rights?
List the sources of law.
Classify the following laws as substantive or procedural:a. A law that requires public schools to hold a hearing before a student is expelledb. A law that establishes a maximum interest rate for
What do uniform laws accomplish? Why do states adopt them? Give an example of a uniform law.
Cindy Nathan is a student at West University. While she was at her 9:00 A.M. anthropology class, campus security entered her dorm room and searched all areas, including her closet and drawers. When
Under what circumstances would a court disregard precedent?
What is the difference between a statute and an administrative regulation?
What is the difference between a remedy in equity and other forms of judicial remedies?
Give examples of areas covered by federal laws. Give examples of areas covered by city ordinances. What are the limitations on these two sources of laws? What could the laws at these two levels not
List some purposes of law that you were able to spot in reading this chapter.
During the 2001 baseball season, San Francisco Giants player Barry Bonds hit 73 home runs, a new record that broke the one set by Mark McGwire in 2000 (72 home runs). FN Be sure to read the text box
List the steps in a lawsuit. Begin with the filing of the complaint, and explain the points at which there can be a final determination of the parties’ rights in the case.
Distinguish between mandatory and voluntary arbitration. What is the difference between mediation and arbitration?
Carolyn, Elwood, and Isabella are involved in a real estate development. The development is a failure, and Carolyn, Elwood, and Isabella want to have their rights determined. They could bring a
Larketta Randolph purchased a mobile home from Better Cents Home Builders, Inc., and financed her purchase through Green Tree Financial Corporation. Ms. Randolph signed a standard form contract that
John Watson invested $5,000,000 in SmartRead, Inc., a company that was developing an electronic reading device. Within a few months, the $5,000,000 was spent but SmartRead never developed the reading
Indicate whether the following courts are courts of original, general, limited, or appellate jurisdiction:a. Small claims courtb. Federal bankruptcy courtc. Federal district courtd. U.S. Supreme
The Nursing Home Pension Fund filed suit against Oracle Corporation alleging that Larry Ellison, the company’s CEO, misled investors in 2001 about the true financial condition of the company.
Mostek Corp., a Texas corporation, made a contract to sell computer-related products to North American Foreign Trading Corp., a New York corporation. North American used its own purchase order form,
Ceasar Wright was a longshoreman in Charleston, South Carolina, and a member of the International Longshoremen’s Association (AFL-CIO). Wright used the union hiring hall. The collective bargaining
Winona Ryder was arrested for shoplifting from Saks Fifth Avenue in California. One of the members of the jury panel for her trial was Peter Guber, a Hollywood executive in charge of the production
What is the difference between the role of a trial court and the role of an appellate court? What functions do they perform, and how do they perform them?
Marty Mankamyer, the president of the United States Olympic Committee (USOC), resigned in early February 2003 following reports in The Denver Post that indicated she had demanded a commission from a
Ann Elkin, who works for Brill Co., has been sent out to conduct two customer evaluations, which have gone much more quickly than Ann anticipated. Her supervisor does not expect Ann back until after
Fred Sanguine is a New York City produce broker. Ned Santini is a 19-year-old college student who works for Sanguine from 4:00 A.M. until 7:00 A.M. each weekday before he attends classes at Pace
Kelly made a written contract to sell certain land to Brown and gave Brown a deed to the land. Thereafter, Kelly sued Brown to get back a 20-foot strip of the land. Kelly claimed that before making
Alan Gellen is the facilities manager for the city of Milwaukee and makes all final decisions on purchasing items such as chairs, lights, and other supplies and materials. Alan also makes the final
Television network CNBC and other television networks have been working to develop policies for their business correspondents and guests on their business shows because of a practice known as
Adam Smith wrote the following in The Theory of Moral Sentiments: In the practice of the other virtues, our conduct should rather be directed by a certain idea of propriety, by a certain taste for a
A new phenomenon for admissions to MBA programs is hiring consultants to help applicants hone their applications. About 20 percent of those who apply to the top MBA programs have hired consultants at
Oprah Winfrey named James Frey’s autobiographical book, A Million Little Pieces, to her television book club. The impact of the book’s inclusion in the Oprah Book Club was the sale of 10 million
The state of Arizona mandates emissions testing for cars before drivers can obtain updated registrations. The state hires a contractor to conduct the emissions tests in the various emissions-testing
A new trend is emerging in health insurance: premium increases based on claims. It is common practice in the auto insurance industry, for example, for insurers to revisit your premium each year and
Martin made an oral contract with Cresheim Garage to work as its manager for two years. Cresheim wrote Martin a letter stating that the oral contract had been made and setting forth all of its terms.
Jackson signed an agreement to sell 79 acres of land to Devenyns. Jackson owned 80 acres and was apparently intending to keep for himself the acre on which his home was located. The written agreement
Boeing Airplane Co. contracted with Pittsburgh–Des Moines Steel Co. for the latter to construct a supersonic wind tunnel. R.H. Freitag Manufacturing Co. sold materials to York-Gillespie Co., which
Louise Pulsifer owned a farm that she wanted to sell and ran an ad in the local newspaper. After Russell Gillespie agreed to purchase the farm, Pulsifer wrote him a letter stating that she would not
In February or March, Corning Glass Works orally agreed to retain Hanan as management consultant from May 1 of that year to April 30 of the next year for a present value fee of $200,000. Was this
Catherine (wife) and Peter (husband) Mallen had lived together unmarried for some four years when Catherine got pregnant and a marriage was arranged. Peter asked Catherine to sign a prenuptial
Panasonic Industrial Co. (PIC) created a contract making Manchester Equipment Co., Inc. (MECI), a nonexclusive wholesale distributor of its products. The contract stated that PIC reserved the
A contract made for the sale of a farm stated that the buyer’s deposit would be returned “if for any reason the farm cannot be sold.” The seller later stated that she had changed her mind and
Integrated, Inc., entered into a contract with the state of California to construct a building. It then subcontracted the electrical work to Alec Fergusson Electrical Contractors. The subcontract was
Norwest Bank had been lending money to Tresch to run a dairy farm. The balance due the bank after several years was $147,000. The loan agreement stated that Tresch would not buy any new equipment in
Physicians Mutual Insurance Co. issued a policy covering Brown’s life. The policy declared that it did not cover any deaths resulting from “mental disorder, alcoholism, or drug addiction.”
The Dickinson Elks Club conducted an annual Labor Day golf tournament. Charbonneau Buick-Pontiac offered to give a new car as a prize to anyone making “a hole in one on hole no. 8.” The golf
Tambe Electric Inc. entered into a written agreement with Home Depot to provide copper wire to Tambe at a price set forth in the writing, and allowing the contractor the option of paying for the wire
Give an example of a third-party beneficiary contract.
A court order required John Baldassari to make specified payments for the support of his wife and child. His wife needed more money and applied for Pennsylvania welfare payments. In accordance with
Lee contracts to paint Sally’s two-story house for $2,500. Sally realizes that she will not have sufficient money, so she transfers her rights under this agreement to her neighbor Karen, who has a
Assume that Lee agrees to the assignment of the house-painting contract to Karen as stated in question 3. Thereafter, Lee fails to perform the contract to paint Karen’s house. Karen sues Sally for
Jessie borrows $1,000 from Thomas and agrees to repay the money in 30 days. Thomas assigns the right to the $1,000 to Douglas Finance Co. Douglas sues Jessie. Jessie argues that she had agreed to pay
Washington purchased an automobile from Smithville Motors. The contract called for payment of the purchase price in installments and contained the defense preservation notice required by the Federal
Helen obtained an insurance policy insuring her life and naming her niece Julie as beneficiary. Helen died, and about a year later the policy was found in her house. When Julie claimed the insurance
Lone Star Life Insurance Co. agreed to make a long-term loan to Five Forty Three Land, Inc., whenever that corporation requested one. Five Forty Three wanted this loan to pay off its short-term
The New Rochelle Humane Society made a contract with the city of New Rochelle to capture and impound all dogs running at large. Spiegler, a minor, was bitten by some dogs while in her schoolyard. She
Zoya operated a store in premises rented from Peerless. The lease required Zoya to maintain liability insurance to protect Zoya and Peerless. Caswell entered the store, fell through a trap door, and
Henry was owed $10,000 by Jones Corp. In consideration of the many odd jobs performed for him over the years by his nephew, Henry assigned the $10,000 claim to his nephew Charles. Henry died, and his
Industrial Construction Co. wanted to raise money to construct a canning factory in Wisconsin. Various persons promised to subscribe the needed amount, which they agreed to pay when the construction
The Ohio Department of Public Welfare made a contract with an accountant to audit the accounts of health care providers who were receiving funds under the Medicaid program. Windsor House, which
McMullen Contractors made a contract with Richardson to build an apartment house for a specific price. A number of serious apartment house fires broke out in the city, and the city council adopted an
Lymon Mitchell operated a Badcock Home Furnishings dealership, under which as dealer he was paid a commission on sales and Badcock retained title to merchandise on display. Mitchell sold his
American Bank loaned Koplik $50,000 to buy equipment for a restaurant about to be opened by Casual Citchen Corp. The loan was not repaid, and Fast Foods, Inc., bought out the interest of Casual
Metalcrafters made a contract to design a new earth- moving vehicle for Lamar HighwayConstructionCo. Metalcrafters was depending on the genius of Samet, the head of its research department, to design
The Tinchers signed a contract to sell land to Creasy. The contract specified that the sales transaction was to be completed in 90 days. At the end of the 90 days, Creasy requested an extension of
Christopher Bloom received a medical school scholarship created by the U.S. Department of Health and Human Services to increase the number of doctors serving rural areas. In return for this
Dickson contracted to build a house for Moran. When it was approximately 25 percent to 40 percent completed, Moran would not let Dickson work anymore because he was not following the building plans
A lessor leased a trailer park to a tenant. At the time, sewage was disposed of by a septic tank system that was not connected with the public sewage system. The tenant knew this, and the lease
Oneal was a teacher employed by the Colton Consolidated School District. Because of a diabetic condition, his eyesight deteriorated so much that he offered to resign if he would be given pay for a

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