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dynamic business law

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

. 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 purchased online for any reason or no reason at all. Consumers in California can get out of gym
. Have you read your apartment lease lately? How about your cellular service agreement?One study found that 67 percent of consumers do not read the contracts they sign. But notice that a contract is still enforceable, whether or not you read it.Which contracts should you read? iTunes terms and
. 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 requirements? Or, should the rule be “If it’s not an actual contract, too bad. No deal.”
. 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 a contract? If not, which element did it lack?
. Jennifer worked as a grant writer for Brightway, a Christian nonprofit. When she announced she was moving in with her boyfriend, all of her supervisors, including the company’s president, congratulated her and expressed their support. No one told her that her job was in jeopardy. Months later,
. YOU BE THE JUDGE WRITING PROBLEM John Stevens owned a dilapidated apartment that he rented to James and Cora Chesney for a low rent. The Chesneys began to remodel and rehabilitate the unit. Over a four-year period, they installed two new bathrooms, carpeted the floors, installed new septic and
. West purchased a horse from Strauss. When West discovered that the horse had a leg injury, he got a driver to return the horse to Strauss, but Strauss refused to accept delivery. Not knowing what to do with the injured animal, the driver took it to Bailey. Five months later, Bailey sent bills for
. ETHICS You want to lease your automobile to a friend for the summer but do not want to pay a lawyer to draw up the lease. Joanna, a neighbor, is in law school.She is not licensed to practice law. She offers to draft a lease for you for $100, and you unwisely accept. Later, you refuse to pay her
. Interactive Data Corp. hired Daniel Foley as an assistant product manager at a starting salary of $18,500. Over the next six years, Interactive steadily promoted Foley until he became Los Angeles branch manager at a salary of $56,116. Interactive’s officers repeatedly told Foley that he would
. Consider the following scenarios:I. Madison says to a group of students, “I’ll pay $35 to the first one of you who shows up at my house and mows my lawn.”II. Lea posts a flyer around town that reads, “Reward: $500 for information about the person who keyed my truck last Saturday night in
. Linda goes to an electronics store and buys a television. Becca hires a company to clean her swimming pool once a week.(a) Both contracts are governed by the common law(b) Both contracts are governed by the UCC(c) Linda’s contract is governed by the common law and Becca’s by the UCC(d)
. Consider these two events:I. On the first day of the baseball season, Victor orders a new Marlins hat online.II. Two days later, the hat is delivered to Victor’s house.(a) Both I and II are executory contracts(b) Both I and II are executed contracts(c) Lis an executed contract and II is an
. Carol says, “Pam, you’re my best friend in the world. I just inherited a million bucks, and I want you to have some of it. Come with me to the bank tomorrow, and I’ll give you $10,000.” “Sweet!” Pam replies. Later that day, Carol has a change of heart. She is allowed to do so. Examine
. An actor, exhausted after his 10-hour workweek, agrees to buy a briefcase full of cocaine from Lewis for $12,000. Lewis and the actor have a(n)contract.(a) valid(b) unenforceable(c) voidable(d) void
. ETHICS JuicyCampus.com was a website where college students could anonymously gossip about their schools. To encourage users to “dish dirt,” the site promised total anonymity: It did not require a login or username; its slogan was “Always anonymous ... Always juicy”; and it assured its
. The GDPR includes a “right to be forgotten” online. This right allows Europeans to request that websites take down their personal information, as long as it is not in the public interest. For example, a person would be able to request that Instagram delete her unflattering photograph, if it
. Imagine that you are the judge in the E/onis case, discussed in the Threats section.Would you have excused Elonis’s conduct under the First Amendment? What is the difference between a true threat and social media banter?
. Eric Schmidt, former CEO of Google, has written:‘The communication technologies we use today are invasive by design, collecting our photos, comments, and friends into giant databases that are searchable and, in the absence of outside regulation, fair game for employers, university admissions
. Marina Stengart used her company laptop to communicate with her lawyer via her personal, password-protected, web-based email account. The company’s policy stated:E-mail and voice mail messages, internet use and communication, and computer files are considered part of the company’s business
. Suspecting his wife was unfaithful, Simpson attached a recording device to the telephone lines in their home. Through the secret recordings, he was able to prove that she was indeed having an affair. Simpson’s wife sued her husband under the Federal Wiretap Act. Who wins and why?
. Someone posted a fake profile of actor Christianne Carafano on a dating website, Matchmaker.com. The profile, which included Carafano’s photo, telephone number, and home address, invited men with “a strong sexual appetite” to join her in a onenight stand. Carafano received many sexually
. Barrow was a government employee. Because he shared his office computer with another worker, he brought in his personal computer from home to use for office work. No other employee accessed it, but it was connected to the office network.The computer was not password protected, nor was it
. YOU BE THE JUDGE WRITING PROBLEM Jerome Schneider wrote several books on how to avoid taxes. These books were sold on Amazon.com. Amazon permits visitors to post comments about items for sale. Amazon’s policy suggests that these comments should be civil (e.g., no profanity or spiteful remarks).
. ETHICS Chitika, Inc., provided online tracking tools on websites. When consumers clicked the “opt-out” button, indicating that they did not want to be tracked, they were not—for ten days. After that, the software would resume tracking. Is there a legal problem with Chitika’s system? An
. Sushila suspects that her boyfriend Plum is being unfaithful. While he is asleep, she takes his smartphone out from under his pillow and goes through all of his texts. Which law has Sushila violated?(a) The First Amendment(b) ‘The Communications Decency Act(c) The Stored Communications Act(d)
. An employer has the right to monitor workers’ electronic communications if:(a) the employee consents.(b) the monitoring occurs in the ordinary course of business.(c) the employer provides the computer system.(d) All of these(e) None of these
. Which of the following is not permitted under the Fourth Amendment?(a) The police obtain information about Iris’s location through smart city cameras(b) The government monitors Lina’s public Twitter account for hate speech(c) During a routine traffic stop for speeding, a police officer takes
. Which of the following is not protected by the First Amendment?(a) ‘True threats(b) Rap lyrics(c) Offensive language(d) Insults
. The following agency is charged with the regulation of electronic communications:(a) National Security Agency(b) Federal Trade Commission(c) Federal Communications Commission(d) Foreign Intelligence Surveillance Court
. Congress passed the Protection for Lawful Commerce in Arms Act, which provides that gun manufacturers and retailers cannot be sued for injuries arising from the criminal misuse of a weapon. Critics argue that when gun makers market and sell military-style assault rifles to civilians, they should
. 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 all harm caused by your activities, even if you are as careful as you can possibly be”?
. Recall the Texas case De/ Lago v. Smith from Chapter 1. In that case, a bartender served drinks when it was obvious that drunken patrons were about to engage in a dangerous bar fight. Smith, who voluntarily participated in the melee, was seriously injured and sued the establishment for
. 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 to hit as hard as it can on every play and to run up the score as much as possible. Before the
. Self-driving cars are programmed to use lasers, sensors, software, and maps to drive themselves. Some states have passed laws allowing driverless technology on the road. But what happens when a driverless car harms someone? Who should be at fault? The passenger? The programmer? The manufacturer?
. At the end of a skateboard exhibition, one of the performers tossed a skateboard into the rowdy crowd. David rushed to catch the prize but was injured when his fellow spectators trampled him to snatch it away. What is the likely outcome if David sues the promoter of the skateboarding show for
. Boboli Co. wanted to promote its “California-style” pizza, which it sold in supermarkets. The company contracted with Highland Group, Inc., to produce 2 million recipe brochures, which would be inserted in the carton when the freshly baked pizza was still very hot. Highland contracted with
. Texaco, Inc., and other oil companies sold mineral spirits in bulk to distributors, which then resold to retailers. Mineral spirits are used for cleaning. ‘Texaco allegedly knew that the retailers, such as hardware stores, frequently packaged the mineral spirits (illegally) in used half-gallon
. YOU BE THE JUDGE WRITING PROBLEM When Susan and Thomas‘Tamplin were shopping at Star Lumber with their six-year-old daughter Ann Marie, a 150-pound roll of vinyl flooring fell on the girl, seriously injuring her head and pituitary gland. Ann Marie was clearly entitled to recover for the
. Ryder leased a truck to Florida Food Service. Powers, an employee, drove it to make deliveries. He noticed that the strap used to close the rear door was frayed, and he asked Ryder to fix it. Ryder failed to do so in spite of numerous requests.‘The strap broke, and Powers replaced it with a
. CPA QUESTION Which of the following factors is least important in determining whether a manufacturer is strictly liable in tort for a defective product?(a) The negligence of the manufacturer(b) The contributory negligence of the plaintiff(c) Modifications to the product by the wholesaler(d)
. For this question, assume the same facts as in question 4. Now determine which of the following can be considered a proximate cause of Carlos’s injuries.(a) Ryan(b) Samuel(c) Both Ryan and Samuel(d) None of these
, Ryan works for a vending machine company. One morning, he fills up an empty vending machine that is on the third floor of an office building. Later that day, Samuel buys a can of soda from that machine. He takes the full can to a nearby balcony and drops it three floors onto Carlos, a coworker
. Zack lives in a state that prohibits factory laborers from working more than 12 hours in any 24-hour period. The state legislature passed the law to cut down on accidents caused by fatigued workers. Ignoring the law, Zack makes his factory employees put in 14-hour days. Eventually, a worker at
. Assume the same facts as in question 1, except now Barney lives in a state that follows comparative negligence. Now Barney will recover(a) $0(b) $10,000(c) $50,000(d) $90,000(e) $100,000
. Two cars, driven by Fred and Barney, collide. At trial, the jury determines that the accident was 90 percent Fred’s fault and 10 percent Barney’s fault. Barney’s losses total $100,000. If he lives in a state that uses contributory negligence, Barney will recover(a) $0(b) $10,000(c)
. Recall the facts of Mo/son Coors v. Anheuser-Busch. Days after the court’s decision was published, Anheuser-Busch said it would immediately resume the “no corn syrup” campaign. Did Anheuser-Busch act ethically?
. The Supreme Court has defined public figures as those who have “voluntarily exposed themselves to increased risk of injury by assuming an influential role in ordering society.” When deciding whether someone is a public figure, courts look at whether this person has received press coverage,
. Many retailers have policies that instruct employees zof to attempt to stop shoplifters.Some store owners fear false imprisonment lawsuits and possible injuries to workers more than losses related to stolen merchandise. Are these “don’t be a hero” policies reasonable? Would you put one in
. This chapter described three lawsuits with jackpot punitive damage awards. The jury award was $10 billion in Texaco v. Pennzoil, $5 billion in the Exxon Valdez case, and $3 billion in Boeken v. Philip Morris. Is there any point at which the raw number of dollars awarded is just too large? Was the
. 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?
. Andrew Greene sued Paramount Pictures for defamation arising out of the film The Wolfo f Wall Street. Although the film did not use his name, Greene alleged that the fictitious toupee-wearing character Nicky “Rugrat” Koskoff was based on him. The film portrayed Rugrat as a “criminal, drug
. Lindsay had a limp. As she exited a Marshall’s store and walked to her car, a store security guard asked her what was wrong. Lindsay said she had been in a car accident and showed the security guard her handicapped parking permit. The security guard responded, “Hah man, she is all
. Pacific Express began operating as an airline in 1982. It had routes connecting western cities with Los Angeles and San Francisco, and, by the summer of 1983, it was beginning to show a profit. In 1983, United Airlines tried to enter into a cooperative arrangement with Pacific in which United
. Tata Consultancy of Bombay, India, is an international computer consulting firm.It spends considerable time and effort recruiting the best personnel from India’s leading technical schools. Tata employees sign an initial three-year employment commitment, often work overseas, and agree to work
. You are a vice-president in charge of personnel at a large manufacturing company.In-house detectives inform you that Gates, an employee, was seen stealing valuable computer equipment. Gates denies the theft, but you believe the detectives and fire him. The detectives suggest that you post notices
. Amil hired Barney, a realtor, to sell his house in exchange for a 3 percent commission.Barney showed the house to Courtney, who pretended she was not interested but then secretly approached Amil with an offer: Cut Barney out of the deal and she would pay full price. Amil accepted and sold the
. Aldo runs a red light and hits Carol’s car. She suffers serious injuries and is unable to work for two months after the accident. Carol sues, claiming the following losses:I. $10,000—car repairs II. $10,000—medical expenses III. $10,000—lost wages IV. $10,000—pain and suffering If the
. Imagine a case in which a jury awards compensatory damages of $1 million. In most cases, a jury would rarely be allowed to award more than in punitive damages.(a) $1 million(b) $3 million(c) $9 million(d) $10 million(e) $25 million
. Asa practical joke, Sami sneaks up on Tito, hits him with a baseball bat, and knocks him unconscious. Tito never saw Sami coming. He wakes up with a horrible headache. Which of the following torts has Sami committed?(a) Assault(b) Battery(c) Both assault and battery(d) Neither assault nor battery
. Jane writes an article for a newspaper reporting that Anita was arrested for stealing a car. The story 1s entirely false. Anita is not a public figure. Which of the following torts has Jane committed?(a) Ordinary slander(b) Slander per se(c) Libel(d) None of these
. A police officer in North Carolina stopped Nick because his car had a broken brake light. Nick allowed the officer to search the car and, during the search, the officer found cocaine. It turns out that the original stop was invalid because drivers in North Carolina are allowed to drive with only
. Hiring relatives of foreign officials for no-show jobs is a violation of the FCPA.But what about hiring children of government officials into real jobs? The U.S.government investigated JPMorgan Chase & Co.’s practice of hiring the children of top Chinese officials. For example, the bank hired
. Suppose two people are living together: the suspect and a tenant. If the tenant consents to a police search of the premises, then the police are not required to first obtain a warrant. What if the suspect and the tenant disagree, with the tenant granting permission while the suspect forbids the
. Ramona was indicted on charges of real estate fraud. During a legal search of her home, the police found a computer with encrypted files. Would it be a violation of her Fifth Amendment right against self-incrimination to force her to unencrypt these files?
. Mickle pleaded guilty to rape. The judge sentenced him to prison for five years and also ordered that he undergo a vasectomy. Was this cruel and unusual punishment?
. Officer Trottier stopped Marie for driving 20 miles over the speed limit. He then became suspicious because she was eating a Powerbar in a “hurried manner” and her son would not make eye contact. The officer asked for and Marie granted him permission to search her car. During the search, he
. ETHICS You are a prosecutor who thinks it is possible that Nonnie, in her role as CEO of a brokerage firm, has stolen money from her customers. If you charge her and her company with RICO violations, you know that she is likely to plea bargain because otherwise her assets and those of the company
. Under British law, a police officer must say the following to a suspect placed under arrest: “You do not have to say anything. But if you do not mention now something which you later use in your defense, the court may decide that your failure to mention it now strengthens the case against you.
. Police arrested Hank on a warrant issued in a neighboring county. When they searched him, the police found drugs and a gun. Only later did the police discover that the warrant had been recalled months before they used it. The notice of recall had not been entered into the database. Should the
. After a high school girl in South Carolina refused a teacher’s order to put away her cell phone or leave class, a sheriff’s deputy dragged the girl out of her chair, threw her on the floor, and handcuffed her. A classmate, Niya Kenny, stood up and swore at the officer, telling him he was
. Shawn was caught stealing letters from mailboxes. After pleading guilty, he was sentenced to two months in prison and three years’ supervised release. One of the supervised release conditions required him to stand outside a post office for eight hours wearing a signboard stating, “I stole
. Conley owned video poker machines. Although they are outlawed in Pennsylvania, he placed them in bars and clubs. He used profits from the machines to buy more machines. Is he guilty of a crime? If so, which one?
. YOU BE THE JUDGE WRITING PROBLEM An undercover drug informant learned from a mutual friend that Philip Friedman “knew where to get marijuana.”The informant asked Friedman three times to get him some marijuana, and Friedman agreed after the third request. Shortly thereafter, Friedman sold the
. Which of the following elements is reguired for a RICO conviction?(a) Investment in a legitimate business(b) Two or more criminal acts(c) Maintaining or acquiring businesses through criminal activity(d) Operating a business through criminal activity
. Henry asks his girlfriend, Alina, to drive his car to the repair shop. She drives his car all right—to Las Vegas, where she hits the slots. Alina has committed:(a) fraud.(b) embezzlement.(c) larceny.(d) a RICO violation.
. Under the exclusionary rule, which statement is true?(a) Evidence must be excluded from trial if the search warrant is defective, even if the police believed at the time of the search that it was valid.(b) The prosecution cannot use any evidence the police found at the site of the illegal search,
. The police are not required to obtain a warrant before conducting a search if:(a) a reliable informant has told them they will find evidence of a crime ina particular location.(b) they have a warrant for part of a property and another section of the property is in plain view.(c) they see someone
. In acriminal case, which statement is true?(a) The prosecution must prove the government’s case by a preponderance of the evidence.(b) The criminal defendant is entitled to a lawyer even if she cannot afford to pay for it herself.(c) The police are never allowed to question the accused without
. Higher courts are reluctant to review a lower court’s factua/ findings. Should this be so? Would appeals be fairer if appellate courts reviewed everything?
. 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 hundreds of thousands of people. John Smith, a lawyer, signs up 100,000 people to participate in a class
. The Supreme Court has held that businesses can force consumers to arbitrate rather than bring class actions." But at least one study found that individuals rarely sue on their own because it is too expensive. Various consumer groups have proposed rules to block banks and credit card companies
. The burden of proof in civil cases is fairly low. A plaintiff wins a lawsuit if he is 51 percent convincing, and then he collects 100 percent of his damages. Is this result reasonable? Should a plaintiff in a civil case be required to prove his case beyond a reasonable doubt? Or, if a plaintiff
. In the Tony Caruso case described throughout this chapter, the defendant offers to settle the case at several stages. Knowing what you do now about litigation, would you have accepted any of the offers? If so, which one(s)? If not, why not?
. When Giant, Inc., hired Kelly, it gave her an entire binder of papers to sign. Buried in the fine print was a clause requiring any future dispute between the parties to go to arbitration, employees could not be represented by a lawyer, and Giant alone would choose the arbitrators. Years later,
. After Sam got a prominent tattoo of Mickey Mouse on his arm, he was fired by his employer, Douglas Corp. Irate, Sam sued Douglas for discriminating against people with tattoos. His complaint alleged that he was fired days after he showed his supervisor the new tattoo. Although employers cannot
. British discovery practice differs from that in the United States. Most discovery in Britain concerns documents. ‘The lawyers for the two sides, called so/icitors, must deliver to the opposing side a list of all relevant documents in their possession.Each side may then request to look at and
. Which court(s) have jurisdiction over each of these lawsuits—state or federal?Explain your reasoning for each answer e Petra wants to sue her next-door neighbor, Dylan, claiming that Dylan promised to sell her the house next door.e Priscilla, who lives in New York City, wants to sue Dizzy Movie
. You plan to open a store in Chicago, specializing in rugs imported from ‘Turkey. You will work with a native Turk who will purchase and ship the rugs to your store. You are wise enough to insist on a contract establishing the rights and obligations of both parties and would prefer an ADR
. Bruno and Cedric are next-door neighbors. Bruno’s dog digs under Cedric’s fence and does $500 worth of damage to Cedric’s garden. Bruno refuses to pay for the damage, claiming that Cedric’s cats “have been digging up my yard for years.”The two argue repeatedly, and the relationship
, A default judgment can be entered if which of the following is true?(a) A plaintiff presents her evidence at trial and clearly fails to meet her burden of proof.(b) A defendant loses a lawsuit and does not pay a judgment within 180 days.(c) A defendant fails to file an answer to a plaintiff’s
. Giuliana lives in Illinois. She applies for a job with a Missouri company, but is rejected because the job is open only to people under 30. She decides to sue the Missouri company under the Age Discrimination in Employment Act, a federal statute. Can Giuliana sue in federal court?(a) Yes,
. Naquia is suing Allied Corporation. After the discovery process, Naquia believes that no relevant facts are in dispute and that there is no need for a trial. She should move fora(a) judgment on the pleadings(b) directed verdict(c) summary judgment(d) JNOV
. Nitesh sues Omar for breach of contract. Which of the following is true?(a) Nitesh must prove Omar breached the contract beyond a reasonable doubt.(b) Nitesh must prove Omar breached the contract by a preponderance of the evidence.(c) Omar must prove that he did not breach the contract beyond a
. Gender discrimination currently receives “intermediate” Fourteenth 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. Do you like the fact that courts can void laws that they determine to be in violation of the Constitution? Or is it wrong for appointed judges to overrule“the will of the majority,” as expressed by
. 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 individual states should have more control over the laws within their own borders?
. ETHICS The Supreme Court has stated that “although one may find sexually explicit material tasteless and even immoral, it is constitutionally protected so long as it is not obscene.”** This chapter discusses the guidelines that determine if speech is obscene for purposes of the First
. What is the proper role of a judge in interpreting the Constitution? Do you believe in judicial activism or judicial restraint?
. Edward Salib owned a donut shop. To attract customers, he displayed large signs in his store window. The city ordered him to remove the signs because they violated its Sign Code, which prohibited covering more than 30 percent of a store’s windows with signs. Salib sued, claiming that the Sign

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