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business
business law text and cases

Questions and Answers of Business Law Text and Cases

On May 1, Jennings, a car dealer, wrote a letter to Wheeler and stated, “I have a 1955 Thunderbird convertible in mint condition that I will sell you for $13,500 at any time before June 9. [Signed]
Smith & Sons, Inc., sells truck supplies to J&B, which services trucks. Over the phone, J&B and Smith negotiate for the sale of eighty-four sets of tires. Smith sends a letter to J&B
Brad orders 150 computer desks. Fred ships 150 printer stands. Is this an acceptance of Brad’s offer or a counteroffer? If it is an acceptance, is it a breach of the contract? What if Fred told
Should liquidated damages clauses be enforced when no actual damages have been incurred?
Should the courts allow the defense of impossibility of performance to be be used more often?
B-Sharp Musical Productions, Inc., contracted with James Haber to provide a sixteen-piece band at Haber’s son’s bar mitzvah for $30,000. Their contract stipulated payment of half of the price if
Planned Pethood Plus, Inc. (PPP), a veterinary clinic, borrowed $389,000 from KeyBank. The term of the loan was ten years. A “ prepayment penalty” clause provided a formula to add an amount to
Amy contracts to sell her ranch to Mark, who is to take possession on June 1. Amy delays the transfer until August 1. Mark incurs expenses in providing for livestock that he bought for the ranch.
George contracts to build a storage shed for Ron, who pays George in advance, but George completes only half the work. Ron pays Paula $500 to finish the shed. If Ron sues George, what would be the
James Grigg’s mother was killed in a car accident. As the beneficiary of her insurance policy, Grigg was entitled to a payment of $50,000 from Safeco Life Insurance Co. Grigg assigned this payment
Should incidental beneficiaries have any legal recourse against parties who do not perform their contracts? Why or why not?
Autumn Allan owned a condominium directly beneath Aslan Koraev’s condominium. The properties’ governing documents formed a contract between the owners and the Condominium Owners Association. The
A&B Construction Company contracts to build a house for Mike. The contract states that “any assignment of this contract renders the contract void.” After A&B builds the house, but before
Robert Shelborne asked William Williams to represent him in a deal with Robert Tundy. Shelborne expected to receive $31 million from the deal and agreed to pay Williams a fee of $1 million. Tundy
Should prenuptial agreements be enforced if one party did not have the advice of counsel? Discuss.
Pamela Watkins bought a home from Sandra Schexnider. Their agreement stated that Watkins would make payments on the mortgage until the note was paid in full, when “the house” would become hers.
Gemma promises a local hardware store that she will pay for a lawn mower that her brother is purchasing on credit if the brother fails to pay the debt. Must this promise be in writing to be
GamesCo orders $800 worth of game pieces from Midstate Plastic, Inc. Midstate delivers, and GamesCo pays for $450 worth. GamesCo then says it wants no more pieces from Midstate. GamesCo and Midstate
Is honesty an implicit duty of every employee? Discuss.
Jerome is an elderly man who lives with his nephew, Philip. Jerome is totally dependent on Philip’s support. Philip tells Jerome that unless Jerome transfers a tract of land he owns to Philip for a
Brad, an accountant, files Dina’s tax returns. When the Internal Revenue Service assesses a large tax against Dina, she retains Brad to contest the assessment. The day before the deadline for
Brendan Coleman created and marketed Clinex, a software billing program. Later, Retina Consultants, P.C., a medical practice, hired Coleman as a software engineer. Together, they modified the Clinex
How can states enforce gambling laws in the age of the Internet?
Erica Bishop’s apartment lease listed her and her children as members of the household and required her to notify the landlord if any of them moved out. The lease also held her responsible for the
State X requires that persons who prepare and serve liquor in the form of drinks at commercial establishments be licensed by the state to do so. The only requirement for obtaining a yearly license is
Joseph, who owns the only pizza parlor in Middletown, learns that Giovanni is about to open a competing pizza parlor in the same small town, just a few blocks from Joseph’s restaurant. Joseph
Potomac Airlines prints on the backs of its tickets that it is not liable for any injury to a passenger caused by Potomac’s negligence. Ron buys a ticket and boards the plane. On takeoff, the plane
Diane bets Tex $1,000 that the Green Bay Packers will win the Super Bowl. A state law prohibits gambling. Do Diane and Tex have an enforceable contract? Explain.
Joe Riley shattered the bones above his left ankle in an accident at Ingalls Shipbuilding, Inc. In the hospital, Riley met with Caty Suthoff, an insurance claims adjuster. Riley answered her
Should the goal of protecting minors from the consequences of unwise contracts ever outweigh the goal of encouraging minors to behave in a responsible manner? Discuss.
William Zurenda was disabled by post-traumatic stress disorder (PTSD), but had not been adjudged mentally incompetent. During divorce proceedings, he agreed to pay his spouse $5,000 within six
Two physicians, Devito and Burke, leased an office suite for five years and agreed to share the rent payments equally—even if one of them moved out or was unable to occupy his part of the premises
Cedric, a minor, enters into a contract with Diane. How might Cedric effectively ratify this contract?
Can a moral obligation satisfy the requirements of consideration? Why or why not?
On Brenda Sniezek’s first day of work for the Kansas City Chiefs Football Club, she signed a document that compelled arbitration of any disputes that she might have with the Chiefs. In the
Healthy Heart Clinic is a medical practice that provides comprehensive cardiology services. Its physician-owners, including Kevin, are all cardiologists. Several years after joining the practice,
Ben hired Lewis to drive his racing car in a race. Tuan, a friend of Lewis, promised to pay Lewis $3,000 if he won the race. Lewis won the race, but Tuan refused to pay the $3,000. Tuan contended
In September, Sharon agrees to work for Cole Productions, Inc., at $500 a week for a year beginning January 1. In October, Sharon is offered the same work at $600 a week by Quintero Shows, Ltd. When
Kenneth McMillan obtained a judgment against Laurence Hibbard for $52,972.74. When Hibbard did not pay, McMillan offered him an option. He could pay the judgment outright, or he could maintain an
Should promises of prizes in ads and circulars always be enforced? Discuss.
Troy Blackford smashed a slot machine while he was gambling at Prairie Meadows Casino. He was banned from the premises. Despite the ban, he later gambled at the casino and won $9,387. When he tried
The First Amendment of the U.S. Constitution protects the free exercise of religion. A state legislature enacts a law that outlaws all religions that do not derive from the Judeo-Christian tradition.
Kathy Wright and real estate agent Jennifer Crilow orally agreed to a contract with a “protection period.” Under this provision, if Wright’s property sold after the contract expired to a party
While riding her motorcycle, Amy Kemper was seriously injured when Christopher Brown hit her with his vehicle. Kemper wrote to Statewide Claims Services, the administrator for Brown’s insurer,
Chernek, operating a sole proprietorship, has a large piece of used farm equipment for sale. He offers to sell the equipment to Bollow for $10,000. Discuss the legal effects of the following events
While visiting the Web site of Cyber Investments, Dani encounters a pop-up box that reads, “Our e-mail daily newsletter E-Profit is available by subscription at the rate of one dollar per issue. To
International Business Machines Corp. (IBM) hired Niels Jensen as a software sales representative. According to IBM’s “Sales Incentive Plan” (SIP), “the more you sell, the more earnings for
Should any enrichment always be considered unjust? Discuss.
High-Flying Advertising, Inc., contracted with Big Burger Restaurants to fly an advertisement above the Connecticut beaches. The advertisement offered $5,000 to any person who could swim from the
Suppose that McDougal, a local businessperson, is a good friend of Krunch, the owner of a local candy store. Every day on his lunch hour, McDougal goes into Krunch’s candy store and spends about
Alison receives a notice of property taxes due from the local tax collector. The notice is for tax on Jerry’s property, but Alison believes that the tax is hers and pays it. Can Alison recover from
Molly tells Nick that she will pay him $10,000 to set fire to her store, so that she can collect the money from her fire insurance policy. Nick sets fire to the store, but Molly refuses to pay him.
Should there be any exceptions to the rule that suspects be informed of their rights? Discuss.
Lou Sisuphan was the director of finance at a Toyota dealership. To cause trouble for a subordinate, Sisuphan kept a payment of nearly $30,000 from one of the subordinate’s customers. Later,
The head of CompTac’s accounting department, Roy Olson, has to pay his daughter’s college tuition within a week or his daughter will not be able to continue taking classes. The payment due is
Determine from the facts below what type of crime has been committed in each situation.1. Carlos is walking through an amusement park when his wallet, with $2,000 in it, is “picked” from his
Carl appears on television talk shows touting a cure for AIDS that he knows is fraudulent. He frequently mentions that he needs funds to make the cure widely available, and donations pour into local
Without Jim’s permission, Lee signs Jim’s name to several checks that were issued to Jim and then cashes them. Jim reports that the checks were stolen and receives replacements. Has Lee committed
From an ethical perspective, is it important to protect copyrighted music from unauthorized filesharing and other forms of distribution online? Why or why not?
Theft Guard Corporation began marketing software in 2005 under the mark “Theft Guard.” In 2014, Theftwatch.com, Inc., a different company selling different products, begins to use theftguard as
Custom Copies, Inc., prepares and sells coursepacks, which contain compilations of readings for college courses. A teacher selects the readings and delivers a syllabus to the copy shop, which obtains
Universal Music Group (UMG) regularly ships free, unsolicited promotional CDs to music critics and others. The labels state that they are “the property of the record company” and for
Hanjuan Jin, a Chinese citizen, worked at Motorola in the United States as a software engineer in a division that created proprietary standards for cellular communications. After a few years, she
The U.S. Patent and Trademark Office (PTO) denied Raymond Gianelli’s application for a patent for a “Rowing Machine”—an exercise machine that requires a user to pull on handles to perform a
Alpha Software, Inc., announced a new computer operating system to be marketed under the name McSoftware. McDonald’s Corp. wrote Alpha a letter stating that the use of this name infringed on the
Who should be liable for computer viruses? Why?
Does a person’s duty of care include a duty to come to the aid of a stranger in peril?
After less than a year in business, Elite Fitness Club surpasses Good Health Club in number of members. Elite’s marketing strategies attract many Good Health members, who then change clubs. Does
Adam kisses the sleeve of Eve’s blouse, an act to which she did not consent. Is Adam guilty of a tort? Why or why not?
Do religious displays on public property violate the establishment clause? Discuss.
Under the federal Sex Offender Registration and Notification Act (SORNA), sex offenders must register as sex offenders and must update their registration when they travel from one state to another.
A mayoral election is about to be held in Bay City. One of the candidates is Donita Estrella, and her supporters wish to post campaign signs on streetlights and utility posts. A Bay City ordinance
Nellie Lumpkin, who suffered from dementia, was admitted to the Picayune Convalescent Center, a nursing home. Because of her diminished mental condition, her daughter, Beverly McDaniel, signed the
What ethical considerations might affect a decision to go to court?
Independence Plating Corp. (IPC) of New Jersey provides metal-coating services. It does not advertise or otherwise solicit business in North Carolina. Southern Prestige Industries, Inc., a North
Betsy Faden worked for the U.S. Department of Veterans Affairs. Removed from her position in April 2012, Faden had until May 29 of that year to appeal the removal decision. She submitted an appeal
Carlos, a citizen of California, is injured in an automobile accident in Arizona. Alex, the driver of the other car, is a citizen of New Mexico. Carlos wants Alex to pay Carlos’s medical expenses
Ron wants to sue Art’s Supply Company for Art’s failure to deliver supplies that Ron needed to prepare his work for an appearance at a local artists’ fair. What must Ron establish before a
Government entities spend time and money to find and destroy the labs in which methamphetamine (meth) is made, imprison meth dealers and users, treat addicts, and provide services for affected
Prudential Insurance Co. of America has a company guideline not to change the amount of a salesperson’s commission once a client has been quoted a price for insurance. Despite this principle, in
What factors help to create an ethical workplace?
Frank Pasquale used his father’s Social Security number to obtain a credit card. Later, pretending to act on behalf of his father’s firm, Pasquale borrowed $350,000. When he defaulted on the loan
Mac Tools, Inc., markets a product that under some circumstances is capable of seriously injuring consumers. Does Mac have an ethical duty to remove this product from the market, even if the injuries
Good faith is a concept that applies in most, if not all, areas of the law. Persons generally are expected to act in good faith, which means being honest and observing reasonable commercial standards
Should legal problems be anticipated? Why and why not?
Karen Goldberg’s husband was killed in a terrorist bombing in Israel. She filed a suit in a U.S. federal court against UBS AG, a Switzerland-based company. She claimed that UBS had aided in her
Under a Massachusetts statute, large wineries could sell their products through wholesalers or to consumers directly, but not both. Small wineries could use both methods. Family Winemakers of
Otto May, Jr., a pipefitter for Chrysler Group, LLC, was the target of racist, homophobic, and anti-Semitic remarks. He received death threats, his bike and car tires were punctured, and someone
Courts can depart from the rule of precedent and change the common law. For example, providing separate public educational facilities for whites and blacks was once legal, but the United States
Arthur Rabe is suing Xavier Sanchez for breaching a contract in which Sanchez promised to sell Rabe a Van Gogh painting for $150,000. 1. If Rabe wants Sanchez to perform the contract as

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