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business
managers and the legal environment
Questions and Answers of
Managers And The Legal Environment
Rattell, Inc. is a toy manufacturer specializing in games for girls and boys aged eight to twelve. On June 30, Rattell predicted first-quarter earnings of $0.15 per share. On July 15, Rattell
In a May 2001 quarterly report, American Express disclosed that although it had lost $182 million from its high-yield debt investments in the first quarter of 2001, "total losses on these investments
Matrixx Initiatives, Inc. is a pharmaceutical company that sells an over-the-counter cold remedy through its wholly owned subsidiary Zicam LLC. Between 1999 and 2003, Matrixx received several
In 2013, Todd Newman, a former portfolio manager at hedge fund Diamondback Capital Management LLC, and Anthony Chiasson, formerly of Level Global Investors, a hedge fund he co-founded, were found
Pluris, Inc. had $50 million in net operating losses (NOLs) when its directors voted to assign all its assets to an assignee for the benefit of creditors. Its largest creditor, Berg & Berg
Assume the facts in Question 23.2. On June 1, 2013, Revolving Credit Bank took over the revolving line of credit from Bank of Hope and acquired Bank of Hope's security interest in Newcorp's accounts
Debtor Stephen C. Baca filed for bankruptcy under Chapter 13. Enigami Systems, Inc. filed suit against Baca seeking a determination that its claim for attorney's fees and costs, which were awarded
Iraq's Ministry of Defense (IMOD) and Wye Oak Technology entered into a contract on August 16, 2004, for the refurbishment and disposal of Iraqi military equipment. The contract required Wye Oak to
Domingo Castro Alfaro, a Costa Rican resident and employee of Standard Fruit Company, and eighty-one other Costa Rican employees and their wives brought suit against Dow Chemical Company and Shell
In 2005, Fir Tree Capital Opportunity Master Fund, LP and Fir Tree Value Master Fund, LP (the Funds) purchased $200 million in notes from Anglo Irish Bank Corporation Limited (the Bank) pursuant to a
Ernst & Young (EY), an accounting firm, audited the financial statements of semiconductor company Broadcom Corporation. In 2005, EY issued an unqualified opinion that Broadcom's financial statements
Caroline Stevens worked in a physicians' office at the Saint Elizabeth Medical Center as a nurse and personal assistant to Dr. Donald Saelinger. Stevens and Saelinger (both of whom were married to
Abby Rae Cole was the founder of Chip Factory, Inc., a computer parts distributor that was an "approved vendor" to Best Buy. Chip Factory used Best Buy's automated online bidding system, which
Sandra W. Fox lent $1 million to Dream Trust on September 22, 2008, pursuant to a note that matured in less than ninety days. Although Fox lent the money to Dream Trust, the proceeds were ultimately
Victims of natural disasters, such as hurricanes, tornadoes, and wildfires, are often financially and emotionally ill equipped to deal with the aftermath of these events. Companies that focus on
Ginny Viloudaki, a recent graduate of New York University, is a first-year associate with the McBain Consulting Group. The partner in charge of a major strategy study for an important new client in
By reading an individual’s Facebook or Twitter page, one can see his or her pictures, the people he or she is communicating with, what is written on the page, and even what the individual writes on
In April 2011, Brittany Teofilo left the Stanford Graduate School of Business to become the founder and CEO of gopublicnow.com, a securities brokerage firm specializing in helping young companies use
In 2002, the Concepcions purchased AT&T's cellular phone service, which advertised the inclusion of free phones. Although they were not charged for the phones, they were charged $30.22 in sales tax
John W. Ferron, an Ohio resident, sued 411 Web Directory and National Programming Service in Ohio in connection with the transmittal by 411 Web Directory of 168 e-mail messages advertising the
A group of plaintiffs, including the American Civil Liberties Union, journalists, scholars, and lawyers, filed a lawsuit challenging the U.S. government's Terrorist Surveillance Program (TSP) as a
A 2006 statewide ballot proposal in Michigan (Proposal 2) to amend the state constitution to prohibit all sexand race-based preferences in public education, public employment, and public contracting
In an effort to protect the community from salmonella infected eggs, the U.S. Department of Agriculture (USDA) issued interim regulations that restricted the interstate sale and transportation of
Orphan Medical, Inc. manufactured the drug Xyrem, a powerful central nervous system depressant that can cause serious side effects. The Food and Drug Administration (FDA) approved Xyrem for only two
Subscribers to a cable television service instituted a class action suit in federal court against the service, alleging violations of antitrust law based on the service's practice of "clustering."
A pediatrician contracted with Oxford Health Plans to provide care for Oxford members at specified rates. The pediatrician later filed suit in state court against Oxford on behalf of himself "and a
Daniel Carter, Jr., was a deputy sheriff in Hampton, Virginia. His boss, Sheriff B.J. Roberts, faced reelection in 2009. Carter showed his support for Roberts's opponent, Jim Adams, by "liking"
Shaun McCutcheon, an Alabama resident, and the Republican National Committee challenged the constitutionality of the aggregate limit provision of the Federal Elections Campaign Act of 1971. Under the
Congress enacted the Highway Beautification Act to govern "the erection and maintenance of outdoor advertising signs" in areas next to interstate highways. The act requires each state to negotiate an
In 2013, former National Security Agency (NSA) contractor Edward Snowden revealed information about a mass telephone-call surveillance program in which the NSA collects "metadata"-numbers called,
Rodney and Ydonna Smith divorced in 1998. They had one child. In 1999, Ydonna went to work for Sears in its retail debt collections department, where she collected debts from existing Sears account
Firefly Corporation needed capital for product development. On May 26, 2009, Firefly held a board meeting at which it was anticipated that a quorum of the board would vote to accept an equity
The term resource curse describes the situation in which a poor country "blessed" with oil, natural gas, and minerals sells these resources to foreign nations in exchange for money that just "lin[es]
The sitting directors of publicly traded corporations normally nominate the candidates for directorships and solicit votes for their election by preparing a proxy statement describing the nominees
A citizen of Cuba sought to remain in the United States.After her second application for an "adjustment of status" was denied and a final order of removal was issued, she sued the district director
The Federal Communications Commission (FCC) en - acted the order In re Preserving the Open Internet (the Open Internet Order), which requires Internet service providers to adhere to "net
HEM Pharmaceuticals Corporation designed a new drug, Ampligen, to fight chronic fatigue syndrome.Typically, new medicines go through several phases of clinical evaluation before approval by the Food
Brian Olson, a hedge fund operator, sued his investing partners, Andreas Halvorsen and David Ott, for breach of contract, claiming that they had orally amended the compensation provisions in the
A settlement agreement involving an unpaid student loan provided that the student must "remit[] not less than $600.00 monthly with each payment arriving at [the appropriate lending agency], not less
BJ's Wholesale Club offers its members use of a children's play center where parents can drop off their children while they shop. To use the play center, the parent must sign a standard form release,
A settlement agreement between a school bus drivers’ union and the school district erroneously included an incorrect “code” reference to the procedures surrounding termination proceedings for
Joseph Boud visited Wasatch Marine, a Salt Lake City retailer run by SDNCO, Inc., which sells yachts manufactured by Cruisers Yachts. During the visit, Wasatch gave Boud a copy of Cruisers’ sales
Aquila, a public utility that produces electrical power, contracted with C.W. Mining for C.W. to provide Aquila with 1,550,000 tons of coal during the years 2004-2006.The contract contained a force
Purchasers of iPod audio players brought a class action lawsuit against Apple, Inc. for breach of the implied warranty of merchantability. They alleged that the iPods were defective because they
In November 2013, retailing giant Wal-Mart Stores, Inc. stated that "technical errors caused internally" resulted in the publication of deeply discounted sales prices for approximately six hours on
United Concrete purchased concrete from Red-D-Mix and later claimed that the concrete was defective because of issues with bleed water. Bleed water is excess water that seeps out of concrete after it
William Brill, a truck driver, had just delivered lumber to Queens Lumber. As he was returning to his truck, he was hit by a Queens Lumber forklift driven by an employee, Eric Vigil. After sustaining
Christian and Britt Ewens, owners and residents of a luxury condominium in New York City, sued the owner of the adjacent unit, Federico Maccherone, for negligence and private nuisance. The Ewens
A recent college graduate created the website http://www.harassthem.com, where the visitor is encouraged to provide private or defamatory content for a fee. In addition, the website encourages
In 2009, Shawn Lester met a group of friends at a bar at "the Pike," a retail and entertainment area in California. At about 2:00 a.m., while Lester was in the parking lot outside the Pike, a car
Rick Doyle bought an aluminum ladder from Home Depot in 2003. Three years later, he fell from the ladder when one of its legs collapsed. Doyle subsequently sued the manufacturer of the ladder, Werner
Stephanie Good smoked "light" Marlboro and Cambridge cigarettes for more than fifteen years. Light cigarettes have lower levels of nicotine and tar than regular cigarettes but can be even more
Jeffrey Feaster bought a gun from Ron's Guns, Inc. Feaster was knowledgeable about firearms and planned to shoot the gun for recreation one day. He drove to a friend's house, where he loaded the gun
As part of its Library Project program, Google, Inc. scanned more than 20 million books in their entirety without obtaining permission for any use of the books from the copyright holders. Google
BitTorrent developed a peer-to-peer file sharing technology that facilitates the transfer of large files on the Internet. The developer published the software as open source without restrictions on
In 2007, CLS Bank International filed suit against Alice Corporation seeking a declaratory judgment of noninfringement, invalidity, and unenforceability of certain Alice patents. Alice responded by
The Digital Millennium Copyright Act (DMCA) includes a "safe harbor" provision under which a service provider is granted immunity from copyright infringement "by reason of the storage [of infringing
Experience Hendrix, LLC, is owned by the sole heir of deceased rock guitar legend Jimi Hendrix. Experience Hendrix owns numerous trademarks associated with the musician, including the names "Hendrix"
Five Native Americans sought to cancel six Pro-Football, Inc. registered trademarks, including the marks "The Redskins," "Washington Redskins," and "Redskinettes." They asserted that these marks
The College Athletes Players Association petitioned the National Labor Relations Board (NLRB) contending that football players at Northwestern University who receive "grant-in-aid" scholarships are
The District of Columbia allows a worker who quits her job voluntarily to collect unemployment compensation if she quits with "good cause connected to the work." Chapter 7 of the D.C. municipal
In early 2011, several former and current employees of the GoalPost Sports Bar and Grill discovered that they owed state income taxes for 2010 related to their GoalPost compensation. At least one
Frontline Processing's Internet service provider tipped off the FBI that a Frontline employee had accessed child pornography from a work computer, and the FBI immediately contacted Frontline's
Employees of Flex Frac Logistics, L.L.C., a nonunion trucking company that delivers sand, must sign a confidential information document, which defines confidential information as follows:Confidential
Tanisha Matthews, an Apostolic Christian, worked as an overnight stocker at Wal-Mart. One night, during a break, Matthews engaged in a conversation about God and homosexuality. The next day, an
Melissa Nelson worked as a dental assistant for Dr. James Knight for more than ten years. During the last year and a half of Nelson's employment, the dentist began complaining to Nelson that her
United Airlines used different weight policies for male and female flight attendants. Although the airline required female flight attendants to meet weight limits based on suggested weights for
Benjamin Endres was an officer in the Indiana State Police. Soon after Indiana began licensing casinos, Endres was assigned by lottery to a full-time position as a Gaming Commission agent at the Blue
Mo-Tech manufactures molds for the consumer products, automotive, medical, and computer industries. In 2007, it laid off its three oldest and most skilled mold-makers- Richard Rahlf, Frank Stelter,
In 2001, the city of Ontario, California, issued pagers capable of sending and receiving text messages to SWAT team members, including Jeff Quon, so they could better respond to emergencies. Arch
The Stored Communications Act (SCA) allows the government to obtain court orders-without a search warrant-to require cell phone service providers to produce their subscribers' historical cell-site
In 1960, Brown & Bryant, Inc. (B&B) began operating an agricultural chemical distributions business, purchasing pesticides and other chemical products from suppliers, including Shell Oil Company.
Plaintiffs Joseph A. Pakootas and Donald R. Michel, enrolled members of the Confederated Tribes of the Colville Reservation, sued to enforce an order by the U.S. EPA requiring Teck Cominco Metals,
You work in sales and are friendly with a sales representative who works for one of your employer's competitors. Your children are in the same class at school, so you see each other frequently. While
Intellectual Ventures LLC (IV) sued Capital One Financial Corporation, alleging infringement of patents covering various online banking services. Capital One asserted the defense of patent misuse by
In 2012, Judith Janney and Amy McKendrick brought a class action suit against General Mills, Inc. alleging that the terms "natural" and "100% natural" on its Nature Valley granola products were
Facebook users must register with the website and agree to Facebook's Statement of Rights and Responsibilities (SRR). On registration, users are given unique user names and passwords to access their
Debra Dugan was a customer at TGI Friday's Mt. Laurel, New Jersey, restaurant. The TGIF menu listed prices for all food items and wine, but it did not list prices for beer, mixed drinks, or soft
Zion Lavie developed a stomach ulcer after using Aleve, an over-the-counter drug distributed by Procter & Gamble Company. He sued P&G, alleging that the company had engaged in false advertising in
Pom Wonderful LLC produces, markets, and sells a bottled blend of pomegranate and blueberry juice. In 2007, Coca-Cola introduced, through its Minute Maid brand, "Pomegranate Blueberry," a juice blend
In 1973, William Arnholt and his then wife, Marie Arnholt, purchased a parcel of land abutting a stream. They remained there until 1993, when they were divorced. Pursuant to their divorce decree,
Hermanson Family Limited owns several commercial buildings in a historic block of shops and restaurants called Larimer Square. Kevin Williams, who suffers from paraplegia and is confined to a
Vinton Watson, an avid race-car driver, owned and kept several figure-eight racing cars in an unenclosed parking lot. The city of Indianola subsequently adopted a land-use ordinance requiring the
Residential Credit Solutions, Inc. instituted mortgage foreclosure proceedings against the married homeowner defendants Tatyana Pendyuk and Ihor Khatkovyy. The mortgagee named in the foreclosure
Washington Regional Medical Center signed an "Authorization to Proceed" with Citadel Group Limited whereby Citadel would develop and construct a medical building that it would ultimately lease back
Wilfredo Garcia, who was paralyzed, was hospitalized at Yale-New Haven Hospital in 2011. In addition to filing a medical malpractice claim, Garcia claimed that the hospital had discriminated against
William Carlton was a shareholder in ten New York City corporations, including Se on Cab Corporation. Each corporation owned two taxicabs, and each cab was covered by only the minimum $10,000
Tyson Foods, a chicken distributor, and IBP, a beef and pork distributor, signed a merger agreement after an active auction for IBP. Before signing the agreement, Tyson conducted extensive due
Plaintiffs Monica Allen and Shantese Thomas were injured by lead paint while living at a property owned by Hard Assets, LLC. The plaintiffs sued Jay Dackman, a member of the LLC at the time it owned
On Labor Day in 1999, an explosion caused by stray propane gas destroyed the home of Jerry Usovsky, killing seven people and seriously injuring several others. The survivors and the estates of the
In 2007, eBay started an online classifieds business called Kijiji, which was designed to compete with Craigslist, the most widely used online classifieds website in the United States. At the time
The Airgas, Inc. certificate of incorporation requires supermajority approval of certain business combinations. In 2007, Airgas's staggered board adopted a poison pill with a 15% threshold.The Airgas
In early 2012, the CEOs at Freeport-McMoRan Copper & Gold Inc. and Plains Exploration & Production Company discussed merging and informed their respective boards of this possibility. Later, Plains