Questions and Answers of Legal Environment Business

Spector owned a small automobile repair garage in rural Kansas that was valued at $40,000. He purchased fire insurance coverage against loss to the extent of $24,000. The policy contained an 80
Essex is in serious financial difficulty and is unable to meet current unsecured obligations of $40,000 to some 20 creditors, who are demanding immediate payment. Essex owes Stevens $5,000, and
Lutz Appellate Services received unsolicited faxed messages from Curry & Taylor. The first of these messages read as follows:CURRY & TAYLORIS NOW HIRINGALL POSITIONSCALL TODAY
East Penn Broadcasting Co. borrowed money from Hershey National Bank. The promissory note representing the loan was made payable “to the Hershey National Bank.” It also contained a provision
Intellectual property rights included in software may be protected under which of the following? a. Patent law b. Copyright law c.
Which of the following is not correct concerning computer software purchased by Gultch Company from Softtouch Company? Softtouch originally created this software. a. Gultch can
Multicomp Company wishes to protect software it has developed. It is concerned about others copying this software and taking away some of its profits. Which of the following is true concerning the
In 2000, former investment banker Frank Quattrone was head of the technology division of Credit Suisse First Boston Corporation (CSFB), earning about $120 million per year. Quatrrone and his Tech
Department 56 is a company that manufactures and sells collectible Christmas village houses and other replica items to allow collectors to create the whimsical “Snow Village” town or “Dickens
Following a boom in cruise ship construction, the ships are now looking for ports at which they can dock in order to begin voyages, most of which begin in the United States. With so many new ships,
Glenda Brunette, a 60-year old widow, operates a pedigreed cat breeding business on her 11-acre ranch and avocado farm in Ojai, California. You can enter Brunette’s ranch only by passing through a
1. Who prevails and why?2. If Jones had been unable to work due to illness or injury, would that be sufficient to meet the undue-hardship standard set out by the court?3. One court did not find undue
Is the task specialized?The city of San Francisco contracted with a builder to do several tasks associated with roadwork and refurbishment. The contractor assigned the work to another
Did a meeting of the minds actually occur here? Should words written on the back of a restaurant check be enough evidence to indicate objective intent? Why or why not?W.O. Lucy (Lucy) was a farmer
1. When State Farm appealed the jury’s punitive-damage award, it argued that such a disproportionately large punitive-damage award ($145 million) was a violation of the Due Process Clause. Do you
1. Had Chambers performed her job well, the climate survey come back positive, and no irregularities occurred in her expense reports but she was still terminated due to cutbacks, could she have
1. Which view of CSR do you believe Ford’s managers had when making the Pinto decision?2. Suppose that the changes necessary to make the design safer would have cost Ford $1,000 per car, instead of
1. When GMC closed the Ypsilanti plant, almost 20 percent of Ypsilanti’s population became unemployed overnight. Who were the primary and secondary stakeholders affected?2. How would you describe
1. What was Braswell’s legal theory for his refusal to hand over the documents to the government?2. What if Braswell’s company was a sole proprietorship rather than a corporation? What if he ran
1. The Court has held previously that a search incident to arrest may include the defendant’s wallet/purse. Is there really a difference between a wallet and a cell phone? What if Riley’s wallet
1. What are the words from the statute that establish the act requirement and the mental requirement?2. Why did the Court hold that the jury instructions were improper?3. By the time the Court
1. Suppose Stewart was never told about the rat problem. Did he have a responsibility to find out?2. What about the workers who shipped the contaminated meat each day? Should they be found guilty of
1. Suppose the manager of Outdoor World places this advertisement in the newspaper: “Extreme Tents 50% off—This week only.” Willen, in the market for a tent, sees the advertisement and arrives
1. Had Dingle not known that Vagias was specifically looking for a home in Montville Township yet had still made her statements, would the out-come of the case have been different? Why or why not?
1. If the iPod is capable of playing at a certain level of sound, isn’t it foreseeable that users would assume that a high level of sound was “ordinary” use?2. If Apple did not provide the
1. Who prevails and why? 2. KU pointed out that there was no evidence that it actually violated the regulation during Jasper’s period of employment. Shouldn’t an employer have to “act”
1. 3L had the option of obtaining cover as a remedy. Why did 3L pursue money damages instead?2. Suppose that instead of shipping the faulty boards to 3L, Merola shipped a more expensive brand than 3L
1. Shouldn’t the buyer’s attempts to have the coach fixed by the manufacturer be considered an attempt to cure under the UCC? Why or why not?2. How much time is “reasonable” to allow the
1. Why didn’t HKE ever charge Kelomar the late interest charge until this dispute?2. Why did the court reject Kelomar’s argument that it was reasonable to think that HKE had waived the late
1. What source(s) of international law(s) would gener-ally govern this international business relationship?2. When CCC asks the court to dismiss the case due to the ICC clause, Telefonica claims that
1. What evidence does the court cite that tends to show that a contract existed?2. Do the advantages of a statute of frauds rule (e.g., certainty) outweigh the advantages of a no writing requirement
1. Why is it important to the court’s analysis that Antoine set up a sham company and consulting agreements?2. If Esquenazi had not known about the bribes, would he still be guilty under the
1. What was the theory that Butters advanced as to why the lawsuit fell into an FSIA exception?2. How far does the FSIA immunity go? If one of Vance’s employees was ordered by Saudi officials to
1. Which forms of intellectual property protections are available to WidgetCo to protect the quality assurance process and materials developed by Maurice’s team?2. What are the major advantages and
1. What was the specific reason for the court’s determination that Alice’s business methods were not patentable?2. What does the court mean when it states that Alice’s methods “simply recite
1. Why was the Court so concerned about the Open-Nap program offered by StreamCast and Grokster?2. Why do you think the Court refused to apply the Sonyexception in this case?After the Napster
1. Given the rule adopted by the court, can you think of an example in which a literary title would violate the Lanham Act?2. Why did the court distinguish between use of a mark on a product and use
1. Was there any indication that Doughney was cybersquatting?2. Could Doughney have avoided liability by making changes to his website or business model? What changes might have helped shield him
1. What were the major factors used by the board in determining secondary meaning?2. Why does Hershey’s have to show a secondary meaning to obtain trademark protection?3. Has the board interpreted
1. Who prevails and why? Do the conditions support a constructive eviction theory?2. Suppose that the landlord had made good faith efforts to fix the problem but was unable to for a period of three
1. Assume the glue factory runs 24 hours per day on a seven-day schedule and produces noxious fumes. Eventually, RSI begins to suspect that the fumes are tainting the taste of the food that is being
1. How does the Court define “public use”?2. Would the case have been decided differently if the project built only a large industrial park? Why or why not?3. In dissenting opinions, members of
1. Was 2 North’s use “notorious” given the fact that it is likely that Getty didn’t realize that the land strip was on its property? What does one have to do to use property in a notorious
1. If Eden Roc could prove that the addition was completely out of spite, would this additional fact affect the court’s decision?2. Why is the historical ancient lights doctrine unworkable in
1. If Smith’s car was never recovered, would CWH be liable as a bailee for the car?2. When a bailee takes a car as part of a bailment relationship, isn’t the bailee also assuming liability for
1. What was each party’s (i.e., Grande/Spann, Jennings, and Bueghly) theory of the case as to why they should get the found cash?2. Why is it important for the court to determine whether or not the
1. Assume that one worker notifies the Occupational Safety and Health Administration (OSHA) and that an OSHA agent informs Grendel that an investigation will be undertaken into the allegations of
1. Although this is an enforcement action against Pressler by the CFPB, do individuals who have been victimized by Pressler have any legal recourse? 2. Why is it relevant that actual attorneys
1. Given the language of the time frame notice, do you agree with the court’s statements that it was clear and that objectively reasonable consumers would not be confused by it? Why or why not?2.
1. Should Richie be forced to relocate or work in another field in order to use bankruptcy laws?2. Richie lacks the ability to pay because she has not engaged in a broad employment search, does not
1. Identify the probable category of each creditor. What are the rights of each creditor in the event that YEC defaults on its obligation to that particular creditor?2. If Moss and Whippany believe
1. Does the Court’s decision encourage responsible actions by the debtor? Does this encourage debtors to take on new debt instead of driving an old car, as Ransom suggested?2. How did the
1. Why did the trial court dismiss Sauer’s adversary proceeding that objected to the discharge of Ms. Lawson’s debt?2. How did the legislative history of the Bankruptcy Code affect the court’s
1. Why does Kelley believe that Cypress acted in bad faith?2. Why did Kelley sue Cypress in the first place? 3. Isn’t Cypress a victim here? If there was no indication that Cypress knew that
1. Have the parties committed a violation of any anti-trust laws? What laws may apply in this situation, and is the fact that SurgiPro agreed to consider the plan significant?2. How is MDC’s
1. Why is the fact that McWane had a monopoly on pipe fittings important in the analysis of this case?2. In what way did the McWane plan make it “economically infeasible” for a distributor to
1. Should stare decisis be such a powerful doctrine that it trumps modern societal realities (such as baseball’s growing use of interstate commerce via radio and television)?2. Why were the reserve
1. What is the court’s reasoning for ruling that the NCAA rules have an anticompetitive effect?2. Why does the court use a rule of reason analysis rather than a per se rule3. If college athletes
1. Does this case mean that competitors may simply create a joint venture to avoid any liability for price-fixing?2. Why did the retailers allege that forming this joint venture was anticompetitive
1. What standard is used to determine whether or not the discharges constitute a violation of the Clean Air Act?2. What common law doctrine could Blacks have possibly pursued in an attempt to compel
1. In investigating the purchase of the facility, what environmental laws will RCPC need to be aware of? In what way could environmental regulation affect the costs of the transaction?2. Assume that
1. Suppose the coalition sues the companies that transported the waste. Are they liable as PRPs? Why or why not2. Why do you believe that the court rejected the special master’s report? Do you
1. Why did the court find BP liable for enhanced penalties under the CWA and OPA?2. At the time of the court’s decision, BP had already paid out $28 billion in cleanup costs and economic claims.
1. Is the new test a logical outgrowth of the original test? Why or why not?2. How could the IRS have avoided a successful challenge to this new rule?The Internal Revenue Service (IRS) proposed a
1. What administrative agency would likely have jurisdiction under this statute?2. When Congress passes a law such as the one described above, what is this type of statute called? Assume that
1. What did CFA expect to uncover through the use of the FOIA?2. What were the key factors in the court’s determination that calendars fell under FOIA?3. If government officials know that they will
1. The court ruled that the FEC’s rationale was not of “ideal clarity.” Shouldn’t an agency have to at least be clear about its rationale to avoid a finding of arbitrariness?2. Why do you
1. Would Trinity’s case against OSHA have been stronger if the inspectors showed up with the marshals and forcibly searched the premises without first attempting to inspect without a war-rant? Why
1. How could the Department of Education have avoided a successful challenge to the distance education rule2. What does the court mean when it explains that a previously unpublished rule violates the
1. Is Leon protected under the SOX Act even if there is no evidence he actually had information about unlawful IDX activities?2.Could Leon be in violation of the SOX Act document destruction rules
1. What are the alternatives for financing this expansion plan? Should CRMC consider a bond? Why or why not? Would selling equity be more or less advantageous than issuing a bond?2. Assume that the
1. Since Asadi had to concede that he was not covered under the statutory language, what was his theory of the case as to why he should be protected as a whistle-blower under Dodd-Frank?2. Why did
1. Why was this case considered a misappropriation theory case rather than a traditional insider-trading case?2. If McGee had disclosed his trading to Maguire, would that have relieved him from
1. What category of corporation is Pharma, and what are the options in terms of structure and raising capital?2. Is Pharma eligible for S corporation status? If one of the shareholders objected,
1. What did the court mean when it ruled that Shelby was the defendants’ “alter-ego”? How did that determination impact the court’s decision?2. If Essad had not committed the fraudulent bank
1. Why did EUMC believe that it was entitled to become a partner in Riverwalk II?2. EUMC reaped a substantial profit from its River-walk I investment. Should that be a factor in the court’s
1. Assume that the directors were highly sophisticated business executives. Should they have to consult others on issues about which they already have sufficient knowledge (such as the company’s
1. What steps should MGS have taken to help limit their promoter liability?2. What steps could Branch have taken to limit his losses?Branch agreed to provide $75,000 in short-term financing to three
1. Will a court support BHA’s attempt to cancel the contract? What will be BHA’s likely theory of the case? 2. Assume that the managing members agreed with the transaction and signed on in
1. Why did the court rule that the two partners were personally liable for the debt?2. Could it be argued that the debt actually was incurred once C&E had notice that it had infringed on
1. Based on the court’s decision, what specific rights did Lieberman lose when he withdrew as a member of the LLC?2. What is the impact of the court’s determination that Lieberman’s withdrawal
1. Why does the court state that the language in the Operating Agreement actually recognizes the “continued existence” of the fiduciary duties?2. Should NHA have agreed to the structure of the
1. Who prevails and why? Name a case from this chapter that supports your answer.2. If Jerry Schuster changed the name of the business but still used the tools he inherited, how would that impact
1. What form of entity have Demuth, Warren, and Oakley formed? What law governs the operation of the partnership and the rights of the partners? 2. If the venture becomes insolvent (runs out of
1. What was Robertson’s theory of the case? 2. Why is it important that the partnership was “at will”?3. In addition to the wrongful dissociation claim, Robertson alleged Mauro committed
1. What was Waddell’s theory of the case as to why an implied partnership existed?2. Could a personal relationship ever be considered a partnership? At what point does a personal relationship
1. What evidence did Billings claim indicate that the LLC was a continuing entity and not a separate entity? Why did the court reject his theory? 2. The court pointed out that there was no
1. Who prevails and why?2. Why did Aquino have the burden of proving that Honda’s reason for discharging him was a pretext? Didn’t he already prove a prima facie case?3. Considering the criminal
1. Who prevails and why?2. Why was the PGA so reluctant to allow Martin to use a golf cart, especially considering carts are allowed in other tournaments? Do you agree with the Court’s reasoning
1. If Curt files suit against Cleaning Inc. for discrimination, what statute will he be relying on and what is his probable theory of discrimination?2. What would Curt need to prove in order to shift
1. Is it reasonable to conclude that the online job description implies that test-driving is part of the job? Why or why not?2. What steps could FedEx take to avoid liability for a similar incident
1. Why does the court find that Mahan’s conduct did not rise to the level necessary to create a hos-tile work environment? Do you agree?2. What type of conduct is required for harassment to be
1. Why does the Court conclude that “actual knowledge” is not necessary?2. What strategies should employers deploy in order to reduce their liability for violating the religious accommodations
1. Should Haynes be prevented from asserting a whistle-blower claim because she is a member of a union?2. Could Haynes claim the public policy exception in regard to this termination? Why or why
1. Even though Sullivan supplied a physician’s certification, did the agency have the right to require a second medical evaluation? 2. How could Sullivan have avoided the conflict and
1. Name the FLSA classification (covered or exempt) for each position in the table below, and give your analysis for each classification. 2. Suppose that Falstaff is a plant manager and
If the Facebook photos were not posted, would Advantage still have been justified in terminating her? Why or why not?In 2008, Advantage hired Jaszczyszyn as a part-time employee and she was
1. The employees in this case pointed to the fact that Integrity could have greatly reduced the amount of time for screening to just a few minutes by employing more personnel and metal detectors.
1. The employees in this case pointed to the fact that Integrity could have greatly reduced the amount of time for screening to just a few minutes by employing more personnel and metal detectors.
If the District would have terminated Wurtz’s contract before it expired, how would that change the court’s analysis?The Beecher Metropolitan District (District) manages water and sewage for a

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