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business
essentials business law
Business Law 12th Edition Roger LeRoy Miller, Frank B Cross - Solutions
Assume that Rierson’s indorsement on the check was a forgery. Would a court be likely to hold the bank liable for the amount of the check because it failed to verify the signature on the check? Why or why not?
Can Executive Aviation establish an artisan’s lien on the plane? Why or why not?
Suppose that Executive Aviation fi les a lawsuit in court against Air Ruidoso for the $10,000 past-due debt. What two methods discussed in this chapter would allow the court to seize Air Ruidoso’s plane to satisfy the debt?
Suppose that Executive Aviation discovers that Air Ruidoso has suffi cient assets in one of its bank accounts to pay the past-due amount. How might Executive Aviation attempt to obtain access to these funds?
Suppose that a clause in the contract between Air Ruidoso and Executive Aviation provides that “if the airline becomes insolvent, Braden Fasco, the chief executive offi cer of Air Ruidoso, agrees to cover its outstanding debts.” Is this a suretyship or a guaranty agreement?
For which of Barton’s purchases (the surround-sound system, the kayak, the 4-Runner, and the six iMacs) would the creditor need to fi le a fi nancing statement to perfect its security interest?
Suppose that Barton’s contract for the offi ce computers mentioned only the name Brighton Homes.What would be the consequences if KDM Electronics fi led a fi nancing statement that listed only Brighton Homes as the debtor’s name?
Which of these purchases would qualify as a PMSI in consumer goods?
Suppose that after KDM Electronics repossesses the surround-sound system, it decides to keep the system rather than sell it. Can KDM do this under Article 9? Why or why not?
What must Janet do before fi ling a petition for relief under Chapter 7?
How much time does Janet have after fi ling the bankruptcy petition to submit the required schedules?What happens if Janet does not meet the deadline?
Assume that Janet fi les a petition under Chapter
Further assume that the median family income in the geographic area in which Janet lives is $49,300. What steps would a court take to determine whether Janet’s petition is presumed to be “substantial abuse” using the means test?
Suppose that the court determines that no presumption of substantial abuse applies in Janet’s case.Nevertheless, the court fi nds that Janet does have the ability to pay at least a portion of the medical bills out of her disposable income. What would the court likely order in that situation?
Is the Smiths’ loan covered by the Truth-in-Lending Act as amended by the Home Ownership and Equity Protection Act? Why or why not?
Do the Smiths have a right to rescind the loan two weeks after the fact, or are they too late? Explain.
Assume now that Alpha Bank gave the Smiths all of the required notices before the loan was completed. If all other facts remain the same, do the Smiths have a right to rescind? Discuss your answer.
Suppose now that the Smiths never rescind the loan and that they default four years later while still owing Alpha Bank $120,000. The bank forecloses and raises only $110,000 when the house is sold at auction. If the state where the Smiths live follows the rule in most states, can Alpha Bank seek
Who is the principal and who is the agent in this scenario? By which method was an agency relationship formed between Scott and Blatt?
What facts would the court consider most important in determining whether Scott was an employee or an independent contractor?
How would the court most likely rule on Scott’s employee status? Why?
Which of the four duties that Blatt owed Scott in their agency relationship has probably been breached?
Under what doctrine discussed in this chapter might Buy-Mart be held liable for the tort committed by Watts?
What is the key factor in determining whether Buy-Mart is liable under this doctrine?
How is Buy-Mart’s potential liability affected by whether Watts’s behavior constituted an intentional tort or a tort of negligence?
Suppose that when Watts applied for the job at Buy-Mart, she disclosed in her application that she had previously been convicted of felony assault and battery. Nevertheless, Buy-Mart hired Watts as a cashier. How might this fact affect Buy-Mart’s liability for Watts’s actions?
Would Saldona have been legally entitled to receive overtime pay at a higher rate? Why or why not?
What is the maximum length of time Saldona would have been allowed to take leave to care for his injured spouse?
Under what circumstances would Aimer have been allowed to require an employee to take a polygraph test?
Would Aimer likely be able to avoid reinstating Saldona under the key employee exception? Why or why not?
Would Lyle’s claim of racial discrimination be for intentional (disparate-treatment) or unintentional(disparate-impact) discrimination? Explain.
Can Lyle establish a prima facie case of racial discrimination? Why or why not?
When Lyle was hired, she was told that typing speed was extremely important to the position. At the time, she maintained that she could type eighty words per minute, so she was not given a typing test. It later turned out that Lyle could type only fi fty words per minute. What impact might typing
Lyle’s sexual-harassment claim is based on the hostile working environment created by the writers’sexually offensive conduct at meetings that she was required to attend. The writers, however, argue that their behavior was essential to the “creative process” of writing for Friends, a show
What type of franchise was Del Rey’s La Grande Enchilada restaurant?
If Del Rey operates the restaurant as a sole proprietorship, then who bears the loss for the damaged kitchen? Explain.
Assume that Del Rey fi les a lawsuit against La Grande Enchilada, claiming that his franchise was wrongfully terminated. What is the main factor that a court would consider in determining whether the franchise was wrongfully terminated?
Would a court be likely to rule that La Grande Enchilada had good cause to terminate Del Rey’s franchise in this situation? Why or why not?
Was this relationship a partnership for a term or a partnership at will?
Did Manny have the authority to hire additional laborers to work at the ranch after his injury? Why or why not?
Under the current UPA, can Al’s Feed Barn bring an action against Jason individually for the Cowboy Palace’s debt? Why or why not?
Suppose that after his back injury in 2011, Manny sent his mother and brother a notice indicating his intent to withdraw from the partnership. Can he still be held liable for the debt to Al’s Feed Barn? Why or why not?
Would Davidson Masonry automatically be taxed as a partnership or a corporation?
Is Davidson Masonry member managed or manager managed?
When Davidson Masonry and Lafayette entered an agreement to work together, what kind of special business form was created? Explain.
Suppose that during construction, Lafayette had entered into an agreement to rent space in a warehouse that was close to the bridge so that she could work on her sculptures near the site where they would eventually be installed. She entered into the contract without the knowledge or consent of
Under what theory might the court in this case make an exception to the limited liability of shareholders and hold Sharp personally liable for the damages? What factors would be relevant to the court’s decision?
Suppose that Chickasaw’s articles of incorporation failed to describe the corporation’s purpose or management structure as required by state law. Would the court be likely to rule that Sharp is personally liable to Dancause on that basis?
Suppose that the club extended credit to its regular patrons in an effort to maintain a loyal clientele, although neither the articles of incorporation nor the corporate bylaws authorized this practice.Would the corporation likely have the power to engage in this activity? Explain.
How would the court classify the Chickasaw Club corporation—domestic or foreign, public or private?
What duties did Brock, as a director, owe to Firm Body?
Does the fact that Brock owned shares in Sunglow establish a confl ict of interest? Why or why not?
Suppose that Firm Body brought an action against Brock claiming that he had breached the duty of loyalty by not disclosing his interest in Sunglow to the other directors. What theory might Brock use in his defense?
Now suppose that Firm Body did not bring an action against Brock. What type of lawsuit might Peñada be able to bring based on these facts?
What rights does Bonsetti have (in most states) as a minority shareholder dissenting to the merger of GVG and Hula Boards?
Could the parties have used a short-form merger procedure in this situation? Why or why not?
What is the term used for Hula’s offer to purchase GVG stock? By what method did Hula acquire control over GVG?
Suppose that after the merger, a person who was injured on a Baked Chameleon board sued Hula (the surviving corporation). Can Hula be held liable for an injury? Why or why not?
Would registration with the SEC be required for Dakota Gasworks securities? Why or why not?
Did Emerson violate Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5? Why or why not?
What theory or theories might a court use to hold Wallace liable for insider trading?
Under the Sarbanes-Oxley Act of 2002, who would be required to certify the accuracy of the fi nancial statements Reliant fi led with the SEC?
What approaches may APC take in order to invest in the restaurant, and what are the legal implications of each approach?
If APC takes an equity interest, the restaurant will need a new legal organizational form. What form would you recommend? Why?
In order to preserve the opportunity for growth and a possible franchise, what legal fi lings should Newmark’s entity undertake?
What is the difference between employee status and independent-contractor status? Which form of employment relationship would be more advantageous to Newmark? Why should employers be cautious when designating workers as independent contractors?
Is the SEC an executive agency or an independent regulatory agency? Does it matter to the outcome of this dispute? Explain.
Suppose that the SEC asserts that it has always had the statutory authority to pursue persons for insider trading regardless of whether they personally profi ted from the transactions. This is the only argument the SEC makes to justify changing its enforcement rules. Would a court be likely to fi
Would a court be likely to give Chevron deference to the SEC’s interpretation of the law on insider trading? Why or why not?
Now assume that a court fi nds that the new rule is merely “interpretive.” What effect would this determination have on whether the SEC had to follow the APA’s rulemaking procedures?
Did the dealer engage in deceptive advertising? Why or why not?
Suppose that Sage had ordered the scooter through the dealer’s Web site but that the dealer had been unable to deliver it by the date promised. What would the FTC have required the merchant to do in that situation?
Assuming that the clerk required a cosigner based on Sage’s race or gender, what act prohibits such credit discrimination?
What organization has the authority to ban the sale of scooters based on safety concerns?
Under the common law, what would each plaintiff be required to identify in order to be given relief by the court?
Are air-quality regulations typically overseen by federal, state, or local governments?
What standard for limiting emissions into the air does Cotton Design’s pollution-control equipment have to meet?
What information must the city send to every household that it supplies with water?
Should ICANN’s actions be judged under the rule of reason or be deemed per se violations of Section 1 of the Sherman Act? Why?
Should ICANN’s actions be viewed as a horizontal or a vertical restraint of trade? Why?
Does it matter that ICANN’s directors are chosen by groups with a commercial interest in the Internet? Explain.
If the dispute is judged under the rule of reason, what might be ICANN’s defense for having a standardized set of registry services that must be used?
If Shuebke’s review was conducted in good faith and conformed to generally accepted accounting principles, could Superior hold Shuebke Delgado liable for negligently failing to detect material omissions in Chase’s audit? Why or why not?
According to the rule adopted by the majority of courts to determine accountants’ liability to third parties, could Chase be liable to Superior? Explain.
Generally, what requirements must be met before Superior can recover damages under Section 10(b)of the Securities Exchange Act of 1934 and SEC Rule 10b-5? Can Superior meet these requirements?
Suppose that a court determined that Chase had aided Regal in willfully understating its tax liability.What is the maximum penalty that could be imposed on Chase?
Is the dome real property or personal property? Explain.
Is Denai’s gift of land to Finney a testamentary gift, a gift causa mortis, or a gift inter vivos?
What type of bailment relationship was created when Denai agreed to store Finney’s boat? What degree of care was Denai required to exercise in storing the boat?
What standard of care applied to the shipment of the dome by Doty Express?
What is the term for the right of Roche citizens to walk across Shoepke’s land on the trail?
What covenants would most courts infer were included in the warranty deed that was used in the property transfer from the Brusters to Shoepke?
Suppose that Shoepke wants to fi le a trespass lawsuit against some teenagers who continually throw Frisbees over his land. Shoepke discovers, however, that when the city put in the Frisbee golf course, the neighborhood homeowners signed an agreement that limited their right to complain about
Can Shoepke hold Slater fi nancially responsible for the damage to the carpeting caused by Indalecio?Why or why not?
Did Matlin commit a misrepresentation on his policy application? Explain.
If there was any ambiguity on the application, should it be resolved in favor of the insured or the insurer? Why?
Assuming that the policy is valid, does Matlin’s situation fall within the terms of the disability policy?Why or why not?
What might be some other deterrents to ethical behavior in the business context, besides those discussed in this Focus on Ethics feature?
Can you think of a situation in which a business fi rm may be acting ethically but not in a socially responsible manner? Explain.
Why are consumers and the public generally more concerned with ethical and socially responsible business behavior today than they were, say, fi fty years ago?
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