Questions and Answers of Business Law Legal Environment

The Accotink Creek is a 25-mile long tributary of the Potomac River. After the Commonwealth of Virginia violated the CWA by failing to set TMDLs that would enable the Creek to meet water quality
The Supreme Court ruled that, under the CAA, the EPA may not consider cost while setting air quality standards to protect the public health. A bipartisan group of 42 of the country’s most respected
Mutations in two genes known as BRCA1 and BRCA2 can dramatically increase the risk of breast and ovarian cancer. Myriad Genetics, Inc. (Myriad) obtained a number of patents on these genes. One patent
Derived from ancient Hindu scriptures, the Indian practice andphilosophy of yoga date back thousands of years. It involves a combination of medication, breathing exercises, and physical poses
Acuff-Rose filed suit against the members of a rap group, 2 Live Crew and their record company, claiming that 2 Live Crew’s song “Pretty Woman” infringed Acuff-Rose’s copyright in Roy
AMF sold recreational boats named “Slickcraft.” Unaware of this product, Bruce Nescher named his company’s boats “Sleekcraft.” When AMF notified Nescher of the alleged trademark
Music stars Beyoncé and Jay-Z named their newborn daughter Blue Ivy and then rushed to trademark the name, because they planned to use it in commerce. Their application was denied because a wedding
Robert Simms worked for CEM Media USA, a marketing company focused on the technology industry. As CDM’s point person for social media, Simms created, controlled, and managed various social media
Green and Jackson owned land as joint tenants. Green filed a petition asking a court to partition the parcels, but he died while the partition was still pending.The lower courts found that because
Imagine that you sign a lease and that you are to move into your new apartment on August 15. When you arrive, the previous tenant has not moved out. In fact, he has no intention of moving out.
Lots A and B were adjacent properties in a residential community near the Chesapeake Bay. Their only access to the beach was through a vacant tract of land – the Disputed Area – which was not
Lindsay and her young daughter lived above Rhonda Schmidt, in an apartment complex operated by Towne Properties (TP), where Courtney Haynes, Schmidt’s boyfriend often stayed, though not on her
The McGuire family rented a second-story apartment from K & G Management, which managed a residential complex on behalf of Avant Co. Robin McGuire notified K & G that a window screen was
David Lowman and Sarah Martino had a tumultuous 14-year romance in which they intermittently lived together. When Lowman was diagnosed with a serious heart condition, Martino cared for him and put
Michelle Harris and Michael Albinger lived together in a stormy relationship, marred by alcohol abuse and violence, on and off for three years. When they announced their engagement, Albinger gave
Before Parliament banned the practice in 1840, many English chimney sweeps forced young children to climb the narrow flues and do the cleaning. Armorie was one such boy. But fortune smiled on him,
Donna and Timothy Mitchell rented a safe deposit box from a Dallas branch of the Bank of America. The lease agreement stated that the bank “had no possession or custody of, nor control over, the
Sharon Sealey parked her Nissan Pulsar in Meyers’s parking garage. She locked the car and took the keys with her. When she returned that evening, she found that vandals had stolen her radio and
When Rob Tannenbaum picked up his $160 shirt at the dry cleaners, he found it too badly torn to wear. He sued, claiming negligence. New York Cleaners denied causing the tear. In addition, the
Francis Cresto was married three times over a 50-year period. He had three biological children with his first wife; a stepdaughter, Lauri, with his second wife; and seven stepchildren with his third
Wayne Ulrich had lived his whole life on his family farm. His only relatives were his brother, Raymond (who lived on the farm next door) and Raymond’s two adult daughters and their children. Wayne
Josiah Treloar’sfirst will left his estate to his wife unless she died before he did, in which case one piece of land was to go to his daughter, Evelyn, another to his son, Rodney, and the rest of
Edith and Tim York operated a grocery business in Florence, Wisconsin, under the name “Tim’s Food.”Tim’s leased, with an option to purchase, the building in which it operated. The owners of
Kirk Johnson applied for life insurance with New York Life. On the application, he stated that he had not smoked in the past 12 months and that he had never smoked cigarettes. In fact, he had smoked
Dawn Goodson and her two children were in an automobile accident while driving a car owned by Chet Weber. He was insured by American Standard Insurance Company of Wisconsin. To treat injuries
This case involved dirty behavior in the bathroom fixture business. The federal government alleged 23 of the corporations that manufactured these fixtures had agreed on the prices they would charge
ETHICS To conceive a child, some infertile couples need an egg from a fertile woman. In this market, eggs from smart, pretty women are the most valuable. However, the American Society for
Maher Kara was an investment banker specializing in the healthcare industry at Citigroup. To understand scientific aspects of his job, Maher sought help from his older brother Michael, who was a
Shortly after Léo Apotheker became CEO of HP, he decided to acquire Autonomy Corporation at acost of over $11 billion. His decision met with strong resistance from HP executives, including CFO
Omnicare was a company that sold medication to nursing homes. When it made these sales, it often received rebates from drug companies. In its registration statement under the 1933 Act, the company
Daniel Lee Ritz, Jr., was a controlling shareholder and director of Chrysalis Manufacturing Corp. He also used Chrysalis as his personal ATM: systematically transferring large sums from that company
Zynga, the online and mobile gaming company that created Farmville, had a rule that its insider could not trade their Zynga stock until three days after an earnings announcement. The plaintiff
Elizabeth Elting and Philip Shawe had been both business and romantic partners. Operating from their dorm room at the New York University business school, they founded TransPerfectGlobal, Inc. (TPG
On March 13, GS Petroleum (GS) signed an agreement to sell a Shell gas station to R and S Fuel, Inc. (Fuel). On April 2, Fuel opened a corporate bank account and began writing checks on it. On April
Lucan and Alison agreed to practice law together. Their stationery said, “The Lucan and Alison Partnership” and they told everyone they were partners. They signed a partnership agreement
Lieberman was a member of the LLC Wyoming.com. After he withdrew, he and the other members disagreed about what his membership was worth. Wyoming.com filed suit asking the court to determine the
Satellite Dialysis of Tracy, LLC (Company) owned and operated dialysis facilities in California. The Company had two members, Dr. Aibar Huatuco and Satellite Health Care (Satellite), each of which
Generally, the BFOQ defense does not apply to customer preference. But recently, some clients have been pressuring their law firms to staff their cases with female and minority lawyers. If a firm
A year ago, Hot Air Systems installed a new heating system in Dolly’s house. A month ago, Chuck called Dolly and told her he worked for hot Air and it was time to perform the yearly inspection.
To ensure fair competition and client privacy, many financial services firms sign an agreement known as the Protocol for Broker Recruiting. It outlined theprocedures that all member firms, and their
Rashard Mendenhall, an NFL football player, had a longstanding endorsement agreement with Hanesbrands (HBI), in which he promised to promote Champion athletic apparel. In Section 17(a), the agreement
Facts: Eileen Norkunas owned a home in Baltimore, Maryland. The Groves and the Cochrans expressed an interest in buying the house. The two couples drafted a handwritten letter, stating:Letter of
There are two reasons for using this case. First is to introduce students to the “You Be the Judge” feature. There is one such case in almost every chapter. The text provides the facts and issue
Maria Kerkoulas owned the Pub Zone bar, frequented by many motorcycle gangs, and knew from her own experience and conversations with police that some of the gangs, including the Pagans, were
The facts of this case are described in this chapter’s opening scenario. Dole shareholders sued Murdock and Carter, alleging that they had violated both the duty of care and the dutyof loyalty
eBay, Inc. was a publicly traded company that operated online auction sites worldwide and employed over 16,000 people. Its primary goal was to maximize profit and market share. eBay bought 28 percent
For several years, CSK Auto, Inc., fraudulently reported inflated earnings. During this period, Maynard Jenkins was the CEO. He was not involved in the fraud, however, and was never charged with a
Facts: Joseph Britt, a detective, enrolled in a Master’s Degree program at Chestnut Hill College in Pennsylvania. Chestnut Hill promised students credit for life experience. The college promised
Some laws give consumers the right to cancel certain contracts for any reason within a short period of time after entering into them. For example, consumers in the European Union can return anything
Have you ever made an agreement that mattered to you, only to have the other person refuse to follow through on the deal? Looking at the list of elements in the chapter, did your agreement amount to
Facts: The Delaware Harness Racing Commission (Commission) hired Donald Harmon to be the Presiding Judge of harness racing (charged with enforcing racetrack rules). After years on the job, Harmon was
Facts: Wendell Lund was a dutiful son to his parents, Orville and Betty. For most of his life, he lived and worked on the family farm. As an adult, he did not pay rent, and his parents provided him
Facts: Attorney James Mason represented Nelson Serrano, who was accused of killing four people in Central Florida. But Serrano had an alibi: On the day of the crime, hotel surveillance in Atlanta had
An offer is an act or statement that proposes definite terms and permits the other party to create a contract by accepting those terms. Sometimes we forget that by making a valid offer, we give that
Case law tells us that a course syllabus is not a binding contract—but how about your school’s honor code? Under what conditions could an honor code be a contract?
Facts: In the early 1890s, English citizens greatly feared the Russian Flu. The Carbolic Smoke Ball Company ran a newspaper ad that contained two key passages: “£100 reward will be paid by
Facts: Matthew Gabriel was a student in Professor Pumo’s immunology class. Professor Pumo’s syllabus outlined course requirements and stated that “plagiarism will not be tolerated.” After
Facts: Bayway Refining and Oxygenated Marketing and Trading A.G. (OMT) were both in the business of buying and selling petroleum products. Bayway agreed to sell OMT 60,000 barrels of gasoline, and
Facts: William Story wanted his nephew to grow up healthy and prosperous. In 1869, he promised the 15-year-old boy $5,000 if the lad would refrain from drinking liquor, using tobacco, swearing and
Facts: Stephen Son was a part owner and operator of two corporations. Because the businesses were corporations, Son was not personally liable for the debts of either one. Jinsoo Kim invested a total
Consideration does not require counteroffers. Students may equate “bargained-for” with “haggled-over.” A simple example can demonstrate the meaning of “bargained-for” in this context:
Facts: Twenty-one seamen entered into a written contract with the Alaska Packer’s Association (APA) to sail from San Francisco to Pyramid Harbor, Alaska, where they would work as fisherman and
Facts: When John Blackwell was seriously injured, he and his wife Ki Tae Lee hired Se Ill Choi to help Lee communicate with her husband’s doctors and perform daily chores. Eventually, Choi moved
Facts: James Scott signed a covenant not to compete when he went to work for Snider Bolt & Screw. The agreement prohibited him from taking a job with a competitor for one year after leaving
Facts: Brodsky signed an option contract to buy land from Culbertson. Brodsky was to deliver a check for $5,000, representing “earnest money,” to a bank. The bank would hold the check in escrow,
This chapter’s opening vignette about the suit in California over Soheil Sadri’s Nevada casino gambling debts can generate many questions, some not directly related to the legality issue, that
Facts: Suulan Chem asked an acquaintance, insurance agent Thuan Wu to purchase an insurance policy on the life of her young son, Michael. Wu purchased a short term policy through Surety Life
Facts: American Express Travel Related Services (American Express) alleged that New York resident Titus Assih missed a credit card payment. His interest rate ballooned from 12.24% to 21%, and
Facts: A and B, a married couple, were having difficulties conceiving a child. They chose to undergo in vitro fertilization (IVF), which involves removing the woman’s eggs and combining them
Christian Kjaer and his relatives (Sellers) owned a small island off the coast of St. Thomas, U.S. Virgin Islands. Some investors, led by Miami Dolphins football player Jason Taylor agreed to buy it
The state of Alaska entered into a contract with Corrections Corporation of America (CCA), a private company, to house Alaska’s inmates. The contract required CCA to abide by the terms of a
Facts: Walker-Thomas Furniture Company, operated a retail furniture store in an economically disadvantaged DC neighborhood. The store’s standard boilerplate contract provided, in fine print, that
Facts: While Charles Engel’s wife was out of town, he sat home alone, drinking mightily. During this period, he made an agreement with G. M. Babcock to trade a 320-acre farm and $2000 worth of
Facts: Plaintiffs alleged that Robert Beeman purchased dilapidated houses in poor sections of Baltimore, searched for unsophisticated, low-income buyers, and promised them a renovated home for a mere
Facts: Billy Stevens owned a paint company and on several occasions he ordered employees to dump 55-gallon paint drums and pallets of old paint cans on property that he owned. Employees notified the
Facts: Brian Donovan, in the market for a used car, spotted a newspaper ad for a local Lexus dealer listing a sapphire blue Jaguar XJ6 Vanden Plas for $25,995. Jaguars of the same year and mileage
From May 1992 through January 1993 plaintiff Bed, Bath & Beyond negotiated with defendant La Jolla Village Square Venture Partners (“La Jolla”) for a lease of retail space in La Jolla Village
When Steven Simkin and Laura Blank divorced in 2006, they agreed to split their $13.5 million fortune evenly. Two years later, it became evident that Simkin had a problem: his half was invested in
Facts: Rose 2d of Aberlone was a gentle, 1,420 lb. cow that lived in Michigan in 1886. Rose’s owner, Hiram Walker & Sons, was a cattle breeder who bought her for $850. After a few years, Walker
Facts: Jonathan Messina had been a successful sales executive for Integra Optics for over a year when the multinational fiber optics company asked him to sign a non-compete agreement. Integra’s
A tenant had rented land from Richardson. However, Campbell claimed the property was really his. Unless the tenant could prove that Richardson owned the land, he would have no right to stay
Jones Brothers Construction was the general contractor on a job to expand American Airlines facilities at O’Hare International Airport. Jones Brothers invited Quake Construction to bid on the
Tommy and Eleanor Daves gave their daughter Lisa Baker the deed to a two-acre property with a house on it, keeping for themselves a life interest in the parcel. When they died, the property returned
As introduced in the chapter opener, Howard Browning and Lynn Poirier were a couple. Early on, they promised to share any lottery winnings equally. Fourteen years after that oral promise, Poirier
The Basketball Marketing Company (BMC) markets, distributes, and sells basketball apparel and related products. BMC signed a long term endorsement contract with a 16-year-old Serbian player, Darko
Adam Curry was an MTV video disc jockey (“VJ”) and host of the popular Headbanger’s Ball and MTV Top 20 Video Countdown. In the early days of the Internet, when VJs had big hair and many major
Mr. and Ms. Ahrens wanted to buy a trailer court owned by Charles Dodd. The Ahrenses drafted and signed a contract to buy “Blue Bell Trailer Court” for $305,000. The contract stated that the
William J. Jenack Estate Appraisers and Auctioneers, Inc. sold fine art and antiques at public auctions. Albert Rabizadeh wanted to buy a nineteenth-century Russian silver and enamel box, with an
Ivan Tepper, the CEO of Delta Star, met with the sales manager at Michael’s, a flooring company. In a verbal agreement, he hired Michael’s to install carpet in the entryway of his office suite,
RARE Hospitality wanted to lease a property to open a LongHorn Steakhouse, but Stirling, the property owner, would only sell it. RARE convinced HDRE to buy the property and lease it to RARE. HDRE
Brunswick Hills Racquet Club (Brunswick) owned a tennis club on property that it leased from Route 18 Shopping Center Associates (Route 18). The lease ran for 25 years, and Brunswick had spent about
John Hancock Life Insurance Co. receives lots of cash in premium payments, which it then invests so that it will have enough funds to pay claims from its policy holders. To this end, it entered into
Hawkins suffered a severe electrical burn on the palm of his right hand. After years of living with disfiguring scars, he went to visit Dr. McGee, who was well-known for his early attempts at skin
Bi-Economy Market, a family-owned meat market, was insured by Harleysville Insurance. The “Deluxe Business Owner’s” policy provided replacement cost for damage to buildings and inventory.
Jim and Bonnie Hyler enjoyed traveling about the country with a camping trailer that they pulled behind their car. Jim sustained a back injury that left his right leg numb and he was unable to hook
Heritage wanted to buy a substance called TBCC from Phibro but, because of uncertainty in the industry, the two companies could not agree on a price for future years. It turned out, though, that the
Robert Roser obtained a loan from Sovereign Bank which he promptly used to buy a car. Nineteen days later, Sovereign filed a lien with the state of Colorado. The bank expected that, with a perfected
Scott Minkler alleged that when he was a child, his Little League baseball coach, David Schwartz, had molested him. During the period when these terrible events occurred, David was living at the home
Oak Ridge FM, Inc. and Dick Broadcasting Company (DBC) entered into a contract that gave DBC a right of first refusal to purchase all the assets of Oak Ridge’s radio station WOKI-FM. The agreement
Microsoft Libya hired a Libyan citizen, Mahmoud Kedkad, to work as a Marketing Lead in Tripoli. Kedkad signed a one-year employment agreement (2010 Contract) providing that: This contract is

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