Questions and Answers of Business Law Legal Environment

Under the UCC section 2-207, “added terms” in an acceptance can become part of a contract between merchants. Does this seem reasonable to you? Are businesses likely to take advantage of it?
The Uniform Commercial Code was written by a group of scholars and adopted by elected state legislators. But many contracts that do not involve a sale of goods are still governed by old common law
Do you think that the UCC statute of frauds as it currently exists is more likely to prevent fraud, or is it more likely to encourage misunderstandings and deception? Why?
Apply the following facts to the next two questions. The publication of the original UCC in 1952 sparked an expansion of the statute of frauds in the United States to
In the Heritage case, the two companies had agreed to $.01. When Heritage’s lawyer pointed out to his client the change to $.10, the Heritage officer did not tell Phibro. The change was subtle in
Is it reasonable to require the mitigation of damages? If a person is wronged because the other side breached a contract, should she have any obligations at all? For example, suppose that a tenant
If someone breaks a contract, the other party can generally sue and win some form of damages. But for centuries, the law has considered land to be unique. And so, a lawsuit that involves a broken
Is reformation ever a reasonable remedy? Should courts be in the business of rewriting contracts, or should they stick to determining whether agreements are enforceable?
Consequential damages can be many times higher than direct damages. Consider the “Farmer Ted” scenario raised in multiple choice question 3, which is based on a real case. Is it fair if
Franklin J. Moneypenny hires Angela to paint his portrait. She is to be paid $50,000 if the painting is acceptable "in Franklin's sole judgment." At the big unveiling, 99 of 100 attendees think that
Is commercial impracticability (such as the shipping strike described earlier in the chapter) a good reason for discharge? What about frustration of purpose (such as the cancellation of the
The death of a promisor in a personal services contract discharges an agreement. But if a promisor dies, other kinds of contracts live on. Is this sensible? Would it be better to discharge all kinds
In our society, a person can buy and sell almost anything. But as the chapter describes, you cannot sell personal injury claims. Should you be able to? Imagine that you are injured in a car wreck.
If a person promises to give you a gift, there is usually no consideration. The person can change his mind and decide not to give you the present, and there is nothing you can do about it. But if a
Compare the common law statute of frauds to the UCC version. What are the specific differences? Which is more reasonable? Why?
Does the coverage of the statute of frauds make sense as it currently stands? Would it be better to expand the law and require that all contract be in writing? Or should the law be done away with
Is the statute of frauds reasonable, or does it unacceptably allow people to escape their obligations on a mere technicality?
Do you have sympathy for intoxicated people who make agreements? Should the law ever let them back out of deals when they sober up? After all, no one forced them to get drunk. Or should the law be
Revisit the Gail Waters example. Imagine now that Beauchemin was not her boyfriend, and that he had not introduced her to the drugs to which she became addicted. If all other facts in the case remain
Van hires Terri to add an electrical outlet to his living room for his new HDTV. Terri does an excellent job, and the new outlet works perfectly. She presents Van with a bill for $200. But Terri is
The Justice Department recently shut down three of the most popular online poker websites (Poker Stars, Absolute Poker, and Full Tile Poker). State agencies take countless actions each year to stop
In the last two chapters, we have examined clickwrap boxes. Sometimes, courts refuse to enforce clickwrap terms because of problems with acceptance or consideration, but usually, the terms are
In the gold rush example, Embola gave Tuppela $50 in exchange for a promise of $10,000 later. Under the peppercorn rule, the deal was a contract. Is the peppercorn rule sensible? Should courts
Are there any specific types of agreements (perhaps high value, long term, extremely time consuming) that should definitely require consideration?
Rate the degree to which you agree with this statement: ?A person should always keep his or her word.? Completely Disagree + 1 → Completely Agree 5 5 3 2 4. 3.
Someone offers to sell you a concert ticket for $50, and you reply, “I’ll give you $40,” The seller refuses to sell at the lower price, and you say, “OK, OK, I’ll pay you $50.” Clearly,
Most auctions are held “with reserve”. If you place the highest bid at such an auction, and if your bid is below the reserve, then you do not get the item. Is this fair? Should the law award you
Advertisements usually do not amount to offers. Is this fair? Should businesses have legal obligations to sell items at an advertised price?
Return to the opening scenario. Fran, Ricky, Carla, and Dave each made an agreement with John. None is valid under contract law. For the sake of fairness, should any of them be legally enforceable?
In the case Davis v. Mason, a court considered an early non-compete agreement. Did the court in that case reach a proper conclusion? What should courts say in similar cases in modern times?
Is it sensible to have two different sets of contract rules – one for sales of goods and another for everything else? Would it be better to have a single set of rules for all contracts?
Consider promissory estoppel and quasi-contracts. Do you like the fact that these doctrines exist? Should courts have “wiggle room” to enforce deals that fail to meet formal contract
Imagine that you read an article that reports the maker of your favorite brand of clothing uses child labor in its overseas factories. Being realistic, would you avoid buying that kind of clothing in
Do you favor free trade agreements like NAFTA? Do you believe that free trade benefits everyone in the long run, or are you more concerned that American jobs may be lost?
Generally speaking, should the United States pass laws that seek to control behavior outside the country? Or, when in Rome, should our companies and subsidiaries be allowed to do as the Romans do?
Does the FCPA seem sensible? Is fighting corruption the right thing to do, or does the statute place American companies at an unacceptable competitive disadvantage?
The United States consistently imports much more than it exports. The annual gap is consistently several hundred billion dollars. Does this concern you? If so, what should be done about it? If not,
You are a prosecutor who think it is possible that Naonka, in her role as CEO of a brokerage firm, has stolen money from her customers, many of whom are not well-off. If you charge her and her
People who serve alcohol to others take a risk. In some circumstances, they can be held legally responsible for the actions of the people they serve. Is this fair? Should an intoxicated person be the
Steve is making copies. Lonnie, his coworker, politely asks, "When will you be done with the copier?" Steve punches Lonnie in the face. Later, Lonnie learns that Steve's last two employers fired him
Are strict liability rules fair? Someone has to dispose of chemicals. Someone has to use dynamite if road projects are to be completed. Is it fair to say to those companies, "You are responsible for
Should the law hold landowners to different standards of care for trespassers, social guests, and invitees? Or do the few states that say, "Just always be reasonable," have a better rule?
Imagine an undefeated high school football team on which the average lineman weighs 300 pounds. Also, imagine a 0-10 team on which the average lineman weighs 170 pounds. The undefeated team sets out
With a national debt in the trillions, people are desensitized to "mere" billions. Stop for a moment and consider a billion dollars. If you had that sum, invested it conservatively, and got a
Celebrities often have problems with tabloids and the paparazzi. It is difficult for public figures to win libel lawsuits, because they must show actual malice. Intrusion lawsuits are also tricky,
The Supreme Court limits punitive damages in most cases to nine times the compensatory damages awarded in the same case. Is this a sensible guideline? If not, should it be higher or lower?
Gender discrimination currently receives “intermediate” 14th Amendment scrutiny. Is this right? Should gender receive “strict” scrutiny as does race? Why or why not?
This chapter is filled with examples of statutes that have been struck down by the courts. A Texas law banning flag burning was rejected by the Supreme Court, as was a Louisiana death penalty
Consider the “tea party” movement. Do you believe that the federal government should be able to create whatever laws it deems to be in the country’s best interests, or do you believe that
Return to the opening scenario and the Citizens United case. Is political advertising purchased by corporations appropriate? Do you agree with the five members of the Supreme Court who voted to allow
Suppose you were on a state supreme court and faced with a restaurant-choking case. Should you require restaurant employees to know and employ the Heimlich maneuver to assist a choking victim? If
The Freedom of Information Act applies to government agencies, but it exempts Congress. Should top lawmakers be obligated to comply with FOIA requests, or would that create more problems than it
In 2010, President Obama signed a major health care reform bill into law. Seventeen state attorneys general filed a lawsuit challenging the Constitutionality of the new statute. A key argument in the
Revisit the Fox Television Stations case. Do you agree with the opinion? What would a sensible broadcast obscenity policy contain? When (if ever) should a network face fines for airing bad language?
Courts generally follow precedent, but in the Tarasoff and Soldano cases discussed early in this chapter, they did not. Consider the opening scenario at the Old Abandoned Mill. Should the hiker bear
Imagine a state law that allows for residents to sue “spammers” – those who send uninvited commercial messages through email - for $30. One particularly prolific spammer sends messages to
Large numbers of employees have signed mandatory arbitration agreements in employment contracts. Courts usually uphold these clauses. Imagine that you signed a contract with an arbitration agreement,
The burden of proof in civil cases is fairly low. A plaintiff wins a lawsuit if he is 51% convincing, and then he collects 100% of his damages. Is this result reasonable? Should a plaintiff in a
Rapper Ice-T's song Cop Killer generated significant controversy when it was released. Among other things, its lyrics anticipate slitting a policeman’s throat. Such lyrics have become reasonably
Genentech, Inc., manufactured Protropin, a genetically engineered version of the human growth hormone. This drug’s purpose was to enhance the growth of short children. Protropin was an important
According to the Electronic Industries Association, questionable returns have become the toughest problem plaguing the consumer electronics industry. Some consumers purchase electronic equipment to
Darby has been working for 14 months at Holden Associates, a large management consulting firm. She is earning $75,000 a year, which sounds good, but does not go very far in New York City. It turns
Many of America’s largest consumer product companies, such as Wal-Mart, Nike and Land’s End, buy fabric produced in China by Fountain Set Holdings Ltd. Chinese government investigators recently
When James Kilts became CEO of Gillette Co., the consumer products giant had been a mainstay of the Boston community for a hundred years. But the organization was going through hard times: Its stock
Many socially responsible funds are now available to the investor who wants to make ethical choices. The Amana fund buys stocks that comply with Islamic laws. For example, it will not invest in
When a fire destroyed the Malden Mills factory in Lawrence, Massachusetts, its 70-year-old owner, Aaron Feuerstein, could have shut down the business, collected the insurance money, and sailed off
At the time of this writing, voters are particularly disgruntled. A good many seem to be disgusted with government. For this question, we intentionally avoid distinguishing between Democrats and
When should a business be held legally responsible for customer safety? Consider the following statements, and circle appropriately:a. A business should keep customers safe from its own
In the 1980s, the Supreme Court ruled that it is legal for protesters to burn the American flag. This activity counts as free speech under the Constitution. If the Court hears a new flag burning case
Do you believe that there are too many lawsuits in the United States? If so, do you place more blame for the problem on lawyers or on individuals who go to court? Is there anything that would help
Kuene v. Pub Zone and Soldano v. O’Daniels both involve attacks in a bar. Should they come out in the same way? If so, which way – in favor of the injured plaintiffs or owner-defendants? Or,
As “The Oculist’s Case” indicates, the medical profession has faced large number of lawsuits for centuries. In Texas, a law provides that, so long as a doctor was not reckless and did not
What must be included when a business develops policies and procedures under the Personal Information Protection and Electronic Documents Act?
Explain why the Personal Information Protection and Electronic Documents Act is in force in some provinces and not in others.
Explain the importance of provincial privacy acts, the federal Privacy Act and the federal Personal Information and Electronic Documents Act and how they interrelate.
What steps should be taken by a business to ensure their employees do not divulge confidential information?
Explain the common law obligations with respect to people who are given confidential information.
Distinguish between an injunction, an Anton Piller order, damages, and an accounting. Explain where one would be preferred over the others.
What will cause an application for trademark to be refused?
What harm does trademark infringement cause a business?
Explain what the Trade-marks Act protects; how is that protection obtained, and how long it last.
Explain the distinction between a trademark infringement action and a passingoff action, and indicate when one would be chosen over the other.
Distinguish between a certification mark, a trademark and a distinguishing guise.
What do the Industrial Design Act and the Integrated Circuit Topography Act protect?
Distinguish between what is protective under patent law compared to copyright.
There are two ways of looking at the problems associated with intellectual property. As with any form of property law, the rules restrict and protect that property for the use of one individual or
Explain what statutes and organizations are in place in Canada to support international trade.
How effective are international treaties in place to assist contracting parties?
Explain the problems associated with enforcing a judgment in a foreign country?
What questions will a court ask to determine whether or not to hear a matter related to an international contract dispute?
What international organizations are set up to assist in the resolution of disputes?
What is the likelihood of successfully pursuing a judicial action in a foreign jurisdiction?
What provisions should be made for dispute resolution?
Outline the basic provisions that should be included in a cross-border contract.
What are some things a businessperson who is contracting with someone in a foreign jurisdiction should consider?
Describe some of the overlapping concerns of electronic and global commercial transactions.
Explain the reluctance of governments to regulate the internet’s business or even criminal activities.
What steps should a business take to insure that employees don’t engage in inappropriate on-line activities while in the workplace?
What is the most appropriate means of resolving disputes over online transactions?
What is cybersquatting and what attempts have been made to control it?

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