Business Law And The Legal Environment 9th Edition Jeffrey F Beatty, Susan S Samuelson - Solutions

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The Louisiana Civil Code limits an innkeeper’s liability for stolen property to $500and only covers cash, jewelry, rare art items, furs, cameras, and negotiable instruments.While staying at the New Orleans Hilton, Allen Chase was drugged by a woman hemet at the hotel bar. He woke up the next
. ETHICS Life insurance policies place the burden on beneficiaries to notify the insurance company when an insured dies. The company itself has no obligation to hunt down the heirs of dead customers. But sometimes beneficiaries do not know that their relative had a policy. Some state authorities
. Billionaire Warren Buffett said that children should inherit enough money so that they can do anything, but not so much that they can do nothing. Is it good for people to inherit money? How much? At what age? How much would you like to leave your children?
. ETHICS Is an asset protection trust ethical? Should wealthy people be able to avoid paying legitimate creditors? What about perpetual trusts that avoid estate taxes forever? State legislators pass laws that permit such trusts to attract trust business from out of state. Trusts generate billions
. Should you have a will? Do you have one?
. ETHICS Donna and Carl Nichols each bought term life insurance from Prudential Insurance Company of America. These policies contained a provision stating that if the insured became disabled, the premiums did not have to be paid and the policy would still stay in effect. This term is called a
. Suzy Tomlinson, 74, met a tragic end—she drowned, fully clothed, in her bathtub after a night out partying with 36-year-old J.B. Carlson. He had taken her home at 1:00 a.m. and was the last person to see her alive. The two were not only party buddies; Suzy was on the board of directors of a
. When Gregg died, his will left his money equally to his two children, Max and Alison, whom he explicitly named. Max had died a few years earlier, leaving behind a widow and four children. Who will get Gregg’s money?
. Dannie Harvey sued her employer, O. R. Whitaker, for sexual harassment, discrimination, and defamation. Whitaker counterclaimed for libel and slander, requesting$1 million in punitive damages. Both Whitaker and Harvey were insured by Allstate under identical homeowner’s policies. This policy
. YOU BE THE JUDGE WRITING PROBLEM Linda and Eddie had two children before they were divorced. Under the terms of their divorce, Eddie became the owner of their house. When he died suddenly, their children inherited the property. Linda moved into the house with the children and began paying the
. If your grandparents were to die leaving a large estate, and all of their children were also dead, would you have a larger inheritance under a per stirpes or a per capita distribution?
. If Chip buys an insurance policy covering his daughter Sarah’s apartment, which of the following statements is true?(a) Sarah is the insured, the beneficiary, and the owner(b) Chip is the insured, the beneficiary, and the owner(c) Sarah is the beneficiary; Chip is the insured and the owner(d)
. An electronic will is valid(a) only if it is printed out and signed by the testator.(b) if there is an audio or video recording of the testator signing the will.' (c) only if the witnesses were in the same room as the testator when he signed the will.(d) if the will is in any way legible,
. Blake tells his client that there are five good reasons to set up a trust. Which of the following is vof a good reason?(a) ‘To pay his grandchildren’s college tuition if they go to the same college he attended(b) ‘To save money, since setting up a trust is cheaper than a will(c) ‘Io make
. Hallie is telling her cousin Anne about the will she has just executed. “Because of my broken arm, I couldn’t sign my name, so I just told Bertrand, the lawyer, to sign it for me. Bertrand was also the witness to the will.” Anne said, “You made a big mistake:I. You should have made at
. CPA QUESTION A decedent’s will provided that the estate was to be divided among the decedent’s issue per capita and not per stirpes. If there are two surviving children and three grandchildren who are children of a predeceased child at the time the will is probated, how will the estate be
. If there has been no account activity for an extended period of time, state laws require banks to turn the customers’ property over to the state. State treasurers —or comptrollers are responsible for holding the abandoned or lost property, which often includes money, watches, jewelry, and
. Common carriers are usually liable when property is damaged, but they are not liable for “acts of God” —floods, hurricanes, and the like. Is this fair? If you send a friend an important item via UPS and the UPS truck is hit by a tornado, who should pay for the lost item? Isn’t UPS in a
. Historically, the law has viewed animals as personal property. As a result, when a pet is wrongfully killed, its owner can only recover the cost of replacing the animal.Some groups have challenged this view, arguing that animals are fundamentally different from other forms of personal property.
. Is it sensible to distinguish between inser vivos gifts-and gifts causa mortis? Should someone “on his deathbed” be able to change his mind so easily?
. “Finders keepers, losers weepers” is a common children’s rhyme. Does the law mirror its sentiment?
. The Louisiana Civil Code limits an innkeeper’s liability for stolen property to $500 and only covers cash, jewelry, rare art items, furs, cameras, and negotiable instruments.While staying at the New Orleans Hilton, Allen Chase was drugged by a woman he met at the hotel bar. He woke up the next
. ETHICS Famous artists Georgia O’Keefe and Alfred Stieglitz donated 101 artworks to Fisk University in the 1940s. But the gift had two conditions: The pieces could not be sold and they had to be displayed as one collection. Over 50 years later, Fisk could not pay to maintain the collection and
. YOU BE THE JUDGE WRITING PROBLEM Eileen Murphy often cared for her elderly neighbor, Thomas Kenney. He paid her $25 per day for her help and once gave her a bank certificate of deposit worth $25,000. She spent the money.‘Murphy alleged that shortly before his death, Kenney gave her a large
. During the Great Depression of the 1930s, the federal government’s Works Progress Administration hired artists to create public works of art. The goal was to provide employment and beautify the nation. Artist James Daugherty painted six murals on the walls of the public high school in Stamford,
. During her second year at the Juilliard School of Music in New York City, Ann Rylands had a chance to borrow for one month a rare Guadagnini violin made in 1768. She returned the violin to the owner in Philadelphia, but then she telephoned her father to ask if he would buy it for her. He borrowed
. Craig finds a rare 1955 doubled-die penny, worth $1,500, on a city sidewalk outside a coin collectors’ convention. The next day, Oliver posts signs that say “Lost 1955 double-die penny. Reward offered. Call Oliver” all over the convention venue.Which of the following is true about Craig’s
. Gina has season tickets to Cardinals games. One Monday, she promises to give her tickets to Friday’s game to Ed, a friend who works across town. On ‘Tuesday, Gina hands the tickets to Al, an administrative assistant. An hour later, when AI still has the tickets and has not given them to Ed,
. Holding out an envelope, Angel says, “Ben, I’m giving you these opera tickets.”Without taking the envelope, Ben replies, “Why would I want opera tickets?Loser.” Angel leaves, crestfallen. Later that day, a girl whom Ben has liked for some time says, “I sure wish I were going to the
. Consider the following:I. A house (value: $250,000)Il. The giant high-definition smart television in the house (value: $2,999)Ill. The land that the house sits on (value: $30,000)IV. An old car in the house’s garage (value: $5,001)How many of these items are personal property?(a) All four of
. Which of the following requirements must be met to create a bailment?I. Delivery of personal property to the intended bailee II. Possession by the intended bailee(a) Ionly(b) II only(c) Both of these(d) None of these
. When landlords wrongfully withhold security deposits, they can often be sued for three times the amount of the security deposit. Is this reasonable? Should a landlord have to pay $3,000 for a $1,000 debt? What if you fail to pay a rent on time? Should you have to pay three times the amount of
. 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. Compare the English and the American rules. Should the landlord be in charge of getting rid of the old
. ETHICS During the Great Recession, home foreclosures hit an all-time high.In many instances, banks ended up as landlords and property managers, a job for which they were ill-prepared. As a result, many homes were abandoned for long periods. Some people who knew a little bit about adverse
. Donny Delt and Sammy Sigma are students and roommates. They lease a house in a neighborhood near campus. Few students live on the block. The students do not have large parties, but they often have friends over at night. The friends sometimes play high-volume music in their cars and sometimes
. The Estates is a suburb outside of Los Angeles. Local zoning ordinances require that lots be “at least 1 acre in size.” Al owns a 1-acre lot in The Estates, which has never been developed. He needs cash and wants to sell the property. Al finds a potential buyer who offers him $100,000 for the
. Angel and Linda Mendez bought a home next door to Rancho Valencia, a fancy hotel on 45 acres of land. The house was about 600 feet from the site where the hotel held outdoor wedding receptions and parties. Even though the Rancho Valencia had installed noise-abating equipment, the Mendezes could
. Lisa Preece rented an apartment from Turman Realty, paying a $300 security deposit. Georgia law states: “Any landlord who fails to return any part of a security deposit which is required to be returned to a tenant pursuant to this article shall be liable to the tenant in the amount of three
. YOU BE THE JUDGE WRITING PROBLEM Frank Deluca and his son _ David owned the Sportsman’s Pub on Fountain Street in Providence, Rhode Island. The Delucas applied to the city for a license to employ topless dancers in the pub. Did the city have the power to deny the Delucas’ request? Argument
. In 1966, Arketex Ceramic Corp. sold land in rural Indiana to Malcolm Aukerman.‘The deed described the southern boundary as the section line between sections 11 and 14 of the land. Farther south than this section line stood a dilapidated fence running east to west. Aukerman and Arketex both
. In 1944, W. E. Collins conveyed land to the Church of God of Prophecy. The deed said: “This deed is made with the full understanding that should the property fail to be used for the Church of God, it is to be null and void and property to revert to W. E. Collins or heirs.” In the late 1980s,
. A tenant’s personal property will become a fixture and belong to the landlord if its removal would(a) increase the value of the personal property(b) cause a material change to the personal property(c) result in substantial harm to the landlord’s property(d) change the use of the landlord’s
, A tenant renting an apartment under a three-year written lease that does not contain any specific restrictions may be evicted for(a) counterfeiting money in the apartment(b) keeping a dog in the apartment(c) failing to maintain a liability insurance policy on the apartment(d) making structural
. To be enforceable, a long-term residential real estate lease must(a) require the tenant to obtain liability insurance(b) define the tenant’s duty to mitigate(c) be in writing _(d) specify a due date for rent(e) All of these
. Which of the following forms of tenancy will be created if a tenant stays in possession of leased premises without the landlord’s consent, after the tenant’s one-year written lease expires?(a) Tenancy at will(b) ‘Tenancy for years(c) Periodic tendency(d) ‘Tenancy at sufferance
. Quick, Onyx, and Nash were deeded a piece of land as tenants in common. The deed provided that Quick owned one-half the property and Onyx and Nash owned one-quarter each. If Nash dies, the property will be owned as follows:(a) Quick 1/2, Onyx 1/2(b) Quick 5/8, Onyx 3/8(c) Quick 1/3, Onyx 1/3,
. Music stars Beyoncé and Jay-Z named their 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 planner in Massachusetts was already using“Blue Ivy” as the name of her business. Is this the correct
. In New Orleans, Mardi Gras “Indians” are carnival revelers who dress up for Mardi Gras in costumes influenced by Native American ceremonial attire. “Indians”often spend the entire year and thousands of dollars crafting their intricate designs with feathers, beads, and other decorations.
. Should Amazon be able to patent the One-Click method of ordering? What about Facebook’s patent on a process that “dynamically provides a news feed about a user of a social network”? Were these inventions really novel and nonobvious?What should the standard be for business method patents?
. The America Invents Act allows inventors to expedite review of their inventions by paying a fee. This clearly favors those applicants with money. Do you agree with this practice? Why or why not?
. For much of history, the copyright term was limited to 28 years. Now, because the term is based on the life of the creator, the average copyright lasts about 150 years.What is a fair copyright term? Some commentators argue that because so much intellectual property is stolen, owners need longer
. ETHICS Virtually any television show, movie, or song can be downloaded for free on the internet. Most of this material is copyrighted and was very expensive to produce. Most of it is also available for a fee through such legitimate sites as iTunes. What is your ethical obligation? Should you pay
. Sequenom developed a noninvasive prenatal diagnostic test to assess the risk of Down syndrome or other chromosomal abnormalities in fetuses. The test analyzes DNA from the fetus that is found in the mother’s blood. Prior to this test, women had to undergo invasive tests that carried a slight
. Victoria’s Secret, a well-known lingerie company, found out that a man named Victor Moseley was running a small store in Kentucky named “Victor’s Little Secret.”Moseley’s shop sold clocks, patches, temporary tattoos, stuffed animals, coffee mugs, leather biker wallets, Zippo lighters,
, Hair Corp. sells shampoo in the United States and internationally. Its international prices are 30 percent less than its domestic prices. Big Seller, Inc., is in the business of buying products internationally in bulk and reselling them in the United States. Big Seller buys Hair Corp.’s
. Rebecca Reyher wrote (and copyrighted) a children’s book titled My Mother Is the Most Beautiful Woman in the World. The story was based on a Russian folktale told to her by her own mother. Years later, the children’s television show Sesame Street televised a skit titled “The Most Beautiful
. Alice Randall wrote a novel titled The Wind Done Gone, which retells the Civil War novel Gone with the Wind from the perspective of Scarlett O’ Hara’s (imagined) black half-sister and slave. The novel does not use any of the names of the original, but clearly references the same characters,
. While in college, David invented a new and useful machine to make macaroni and cheese (he called it the “Mac ‘n’ Cheeser”). It was like nothing on the market, but David did not apply for a patent. At that time, he offered to sell his invention to several kitchen products companies. His
. A couple thought of a clever name for an automobile. They wanted to protect this name so that they could ultimately sell it to a car manufacturer. What would be the best method to attain this goal?(a) Patent(b) Copyright(c) Trademark(d) ‘Trade secret- (e) This name cannot be protected.
. If you buy a book, you have the legal right to(a) read it as many times as you want and then give it away(b) scan it to your computer and then email it to a friend(c) scan it to your computer and sell the PDF(d) All of these
. Faber-Castell began manufacturing pencils in 1761. Although pencils and erasers had both existed for some time, the company did not begin putting erasers on the ends of its pencils until the 1870s. The company was sued by an inventor who had previously patented this idea. The case went to the
. VitaminWater has become such a success that other companies are also now selling similar (but not identical) flavored colored water. Some competitors bottle their drinks in a similar bell-shaped bottle with a two-toned label that has a horizontal color band. What is the best infringement claim
. Thomas’s English Muffins wanted to protect the method by which it makes muffins with air pockets—what it calls “nooks and crannies.” What would be the best way to achieve this goal?(a) Patent(b) Copyright(c) Trademark(d) ‘Trade secret(e) This method cannot be protected.
. Taylor Swift wanted to trademark her song lyric: “And [ll write your name.” She(a) can trademark it because it is a short phrase associated with her entertainment services(b) can trademark it only if it is in a tangible form(c) cannot trademark it because it is generic(d) None of these
. Is cost-benefit analysis an effective tool in environmental disputes? How do we measure the costs and benefits? How do we know what benefits we might gain from saving endangered species or reducing the arsenic level on a playground?Should you survey people to ask them how much it is worth? Or
, The Supreme Court ruled that, under the CAA, the EPA may not consider cost when setting air-quality standards to protect the public health.”! A bipartisan group of 42 of the country’s most respected economists filed a brief arguing that, from an economic perspective, it is wrong of to
. ETHICS Externalities pose an enormous problem for the environment. Often, the people making decisions do not bear the full cost of their choices. And businesses tend to fight efforts to make them pay these externalities. For example, CropLife America lobbied against a bill that would support
. Inasurvey conducted by the Pew Research Center, about three-quarters of U.S.adults said “the country should do whatever it takes to protect the environment,”compared with 23 percent who said “the country has gone too far in its efforts to protect the environment.”” If a large majority
. Life is about choices—and never more so than with the environment. Being completely honest, which of the following are you willing to do? Why?e Drive a smaller, lighter, more fuel-efficient car e ‘Take public transportation or ride your bike to work e Vote for political candidates who are
. The Navy wanted to conduct training exercises off the coast of California for sonar submarines. Scientists were concerned that the sounds emitted by the sonar would harm marine mammals, such as whales, dolphins, and sea lions. Environmental groups filed suit, asking that the Navy prepare an EIS.
, Rundy Custom Homes was building a subdivision of new houses next to a stream.During the building process, pipes on the property discharged storm water with sediment into the stream. Is this legal? What statute applies? Who would be liable?What if the EPA fails to act?
. The Department of Homeland Security wished to build a large office building on its campus in Washington, D.C. What environmental step must it take first?
. YOU BE THE JUDGE WRITING PROBLEM The Lordship Point Gun Club operated a trap and skeet shooting club in Stratford, Connecticut, for 70 years.During this time, customers deposited millions of pounds of lead shot on land around the club and in the Long Island Sound. Was the Gun Club in violation of
. Tariq disposed of some of his laboratory’s hazardous chemicals by shipping them via DHL to his home overseas. What law has Tariq violated?
. The Toxic Substances Control Act(a) requires manufacturers to test new chemicals, or old chemicals being used in a new way, for safety before they can be used in products(b) requires the EPA to test new chemicals, or old chemicals being used in a new way, before they can be used in products(c)
. You own property on which hazardous wastes are found. You know the identity of three former owners. You are. (a) liable for all the costs of the cleanup because you are the current owner(b) liable for one-quarter of the costs of the cleanup(c) liable for the percentage of the harm that you are
. Which of the following are a point source requiring a permit under the CWA?I. Farm fields II. A waste treatment plant that dumps water into wells that then travel a brief distance through groundwater to the ocean III. A canal that collects water and discharges it into an intermittent stream that
. Which of the following statements is true?(a) Only the EPA has the authority to regulate GHGs.(b) Only the states have the authority to regulate GHGs.(c) Both the EPA and the states have the authority to regulate GHGs.(d) Neither the EPA nor the states have the authority to regulate GHGs; these
. Suppose that you are the manager of a General Motors plant that is about to start producing Hummers. The Hummer requires special protective paint that, as it turns out, reacts with other chemicals during the application process to create a pollutant. What does the CAA require of you?(a) Reduce
. ETHICS After TNT Motor Express hired Joseph Bruce Drury as a truck driver, it ordered a background check from Robert Arden & Associates. TNT provided Drury’s Social Security number and date of birth, but not his middle name. Arden discovered that a Joseph Thomas Drury, who coincidentally had
. Advertisements for Listerine mouthwash claimed that it was as effective as flossing in preventing tooth plaque and gum disease. This statement was true, but only if the flossing was done incorrectly. In fact, many consumers do floss incorrectly. However, if flossing is done right, it is more
. ETHICS Should employers check an applicant’s credit report as part of the hiring process? Each year retailers lose $30 billion a year from employee theft and$55 million because of workplace violence. Those who commit fraud are often living above their means, but there is no evidence that
. YOU BE THE JUDGE WRITING PROBLEM Processed cheese food slices must contain at least 51 percent natural cheese. Imitation cheese slices, by contrast, contain little or no natural cheese and consist primarily of water, vegetable oil, flavoring, and “fortifying agents.” Kraft, Inc., makes Kraft
. Many people need a car to get to work, take care of their families, live their lives.But obtaining an auto loan can be difficult for those with a bad credit rating. Some finance companies are now willing to extend credit to people who are poor risks, on one condition: the company can install
. Suppose that, when you apply for a job at Workleigh Inc., the interviewer asks you to sign a document releasing Workleigh from any claims for any information the company may seek about you when arriving at an employment decision. The employer is seeking protection from liability under a statute
. There you are on FindMeLove.com. You joined for free, but you have to upgrade~ to a paid version if you want to see full-size photos or send personalized messages.So far, you are fine with the free version. But then, a really attractive guy messages you and wants to chat. To respond, you have to
. This post appeared on Instagram:khloekardashian Ever since I started taking two @sugarbearhair a day, my hair has been fuller and stronger than ever!! Even with all the heat and bleaching I do to it! 8 #sugarbearhair Is there anything wrong with that?
. Synchrony (formerly known as GE Capital) offered a special deal providing that if credit card holders paid part of what they owed, it would write off the rest and the customer would never have to pay it. The company did not offer this deal to people who lived in Puerto Rico or were native
. A company offered credit cards to consumers with low credit scores. These cards had a $300 limit, a $75 sign-up fee, a $6 per month participation fee, and a $5 monthly fee for paper billing. Despite the fees, 98,000 people signed up. Is there anything wrong with that?
. On the first of every month, your rent is automatically deducted from your bank account. You are moving out and want to make sure the payments stop. What should you do?I. Tell the bank at least three days before the first of the month II. Write the bank at least three days before the first of the
. Companies must obtain permission from a consumer before charging for overdrafts on(a) debit cards(b) credit cards(c) neither(d) both
. Depending on state law, if a lender violates the usury laws, the borrower could possibly be allowed to keep I. the interest that exceeds the usury limit II. all the interest III. all of the loan and the interest(a) All of these(b) Only I(c) Only II(d) Only Ul(e) None of these
. Zach sells Cutco Knives door to door. Which of the following statements is false?(a) The buyer has three business days to cancel the order.(b) Zach must tell the buyer of her rights.(c) Zach must give the buyer a written notice of her rights.(d) The seller can cancel orally or in writing.(e) If
. If you receive a product in the mail that you did not order,(a) you must pay for it or return it(b) you must pay for it only if you use it(c) you must throw it away(d) itis a gift to you(e) you must return it, but the company must reimburse you for postage
. Dell sold computers online that were supposed to be loaded with a particular software. But, because the software was not yet available, Dell sent customers a coupon for the software “when available.” What did Dell do wrong?I. Failed to offer buyers the opportunity to cancel their orders Il.
. Is it appropriate for U.S. antitrust laws to apply overseas? Should businesspeople who never set foot in the United States be liable for activities they conducted in their own countries?
. Antitrust regulators tend to focus on protecting consumers, and particularly on reducing consumer prices. Look at the five cases in this chapter. Are the courts’decisions likely to cause consumer prices to go up or down? Do you agree with the courts’ decisions?
. ETHICS Clarice, a young woman with a mental disability, brought a malpractice suit against a doctor at the Medical Center. As a result, the Medical Center refused to treat her on a nonemergency basis. Clarice then went to another local clinic, which was later acquired by the Medical Center.
. If you go to Amazon.com you will see some items for which there is no price, just the note, “To see our price, add this item to your cart.” Amazon does that for fear that, after the Leegim case, manufacturers will refuse to supply items that Amazon sells below the established retail price.
. 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 Reproductive Medicine recommended that clinics cap any payments to donors at $10,000 per cycle. It was

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Business Law And The Legal Environment 9th Edition Jeffrey F Beatty, Susan S Samuelson - Solutions

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