Questions and Answers of The Legal Environment

ROLE REVERSAL Write one multiple-choice question with two noncompete clauses, one of which is valid and the other void.
Landlord owned a clothing store and agreed in writing to lease the store’s basement to another retailer. The written lease, which both parties signed, (1) described the premises exactly,
ETHICS Sixteen-year-old Travis Mitchell brought his 19-year-old Pontiac GTO into M&M Precision Body and Paint for body work and a paint job. M&M did the work and charged$1,900, which Travis paid.
Ron buys from Karen 1,000 “Smudgy Dolls” for his toy store. Karen knows the dolls’ heads are not properly attached but says nothing. Ron sells all the dolls quickly and then has 1,000 unhappy
YOU BE THE JUDGE WRITING PROBLEM Susan Gould was appointed to a three-year probationary position as a teacher at Sewanhaka High School. Normally, after three years, the school board either grants
The McAllisters had several serious problems with their house, including leaks in the ceiling, a buckling wall, and dampness throughout. They repaired the buckling wall by installing I-beams to
ETHICS Richard and Michelle Kommit traveled to New Jersey to have fun in the casinos. While in Atlantic City, they used their MasterCard to withdraw cash from an ATM conveniently located in the
Guyan Machinery, a West Virginia manufacturing corporation, hired Albert Voorhees as a salesman and required him to sign a contract stating that if he left Guyan he would not work for a competing
Brockwell left his boat to be repaired at Lake Gaston Sales. The boat contained electronic equipment and other personal items. Brockwell signed a form stating that Lake Gaston had no responsibility
The writing must be signed by the defendant and must state the name of all parties, the subject matter of the agreement, and all essential terms and promises.
Contracts that must be in writing to be enforceable concern:• The sale of any interest in land;• Agreements that cannot be performed within one year;• Promises to pay the debt of another;•
In a bilateral mistake, either party may rescind the contract. In a case of unilateral mistake, the injured party may rescind only in limited circumstances. of unilateral mistake, the injured party
Fraud and material misrepresentation are grounds for disaffirming a contract. The injured party must prove a false statement of fact, fraud or materiality, and justifiable reliance.
Minors and mentally impaired persons generally may disaffirm contracts.
Illegal contracts are void and unenforceable.Claims of illegality often arise concerning noncompete clauses, exculpatory clauses, and unconscionable clauses.
Visit http://www.law.cornell.edu. Click on “Constitutions and Codes,” then “Other Uniform Laws.”Select a state. Then click on “Judicial Opinions.”Search for a case concerning
ROLE REVERSALWrite a multiple-choice question that distinguishes express, implied, and quasi-contracts.
Which of these might be valid consideration?a. A promise to do something.b. A promise to refrain from doing something.c. An action.d. All of the above.
Describe the role each of the following plays in contract law: the common law, the UCC, and the Restatement (Second) of Contracts.
YOU BE THE JUDGE WRITING PROBLEM John Stevens owned a dilapidated apartment that he rented to James and Cora Chesney for a low rent. Over a four-year period, the Chesneys installed two new bathrooms,
Explain the difference between judicial restraint activism and judicial activism in contract law.
An aunt saw her eight-year-old nephew enter the room, remarked what a nice boy he was, and said, “I would like to take care of him now.” She promptly wrote a note, promising to pay the boy $3,000
Can’t wait!” On June 1, Spike arrives, to find that his position is filled by Gus. He sues Rebecca.a. Spike wins $55,000.b. Spike wins $58,000.c. Spike wins $3,000.d. Spike wins restitution.e.
Rebecca, in Honolulu, faxes a job offer to Spike, in Pittsburgh, saying, “We can pay you $55,000 per year, starting June 1.” Spike faxes a reply, saying, “Thank you! I accept your generous
Academy Chicago Publishers (Academy) approached the widow of author John Cheever about printing some of his unpublished stories.She signed a contract, which stated:The Author will deliver to the
The Hoffmans owned and operated a successful small bakery and grocery store. They spoke with Lukowitz, an agent of Red Owl Stores, who told them that for $18,000 Red Owl would build a store and fully
A promise is normally binding only if it is supported by consideration, which requires a bargaining and exchange between the parties.
The offeree must say or do something to accept. The common law mirror image rule requires acceptance on precisely the same terms as the offer.
An offer is an act or a statement that proposes definite terms and permits the other party to create a contract by accepting. The terms of the offer must be definite.
The parties can form a contract only if they have a meeting of the minds.
A claim of quasi-contract requires that the defendant received a benefit, knowing that the plaintiff would expect compensation, and it would be unjust not to grant it.
A claim of promissory estoppel requires that the defendant made a promise knowing that the plaintiff would likely rely, the plaintiff did rely, and it would be wrong to deny recovery.
In an express contract, the two parties explicitly state all important terms of their agreement. In an implied contract, the words and conduct of the parties indicate that they intended an agreement.
The common law governs contracts for services, employment, and real estate. The Uniform Commercial Code (UCC), Article 2, governs contracts for the sale of goods.
A contract is a promise that the law will enforce.Contracts are intended to make business matters more predictable.
At www.thomsonedu.com/westbuslaw/beatty read about the worldwide problem of sweatshops. Is this a serious problem? If so, what role should the law play in its resolution? What can one student do
ROLE REVERSAL Draft an essay or shortanswer question that involves a dispute brought to the WTO on one of these issues: dumping, nontariff barriers, or intellectual property.
Richard Johnson, an American citizen, was a highly trained electrical engineer who had worked for Hughes Aircraft and Norcroft Corp. He strongly believed in the cause of the Provisional Irish
Blondek and Tull were two employees of an American company called Eagle Bus. They hoped that the Saskatchewan provincial government would award Eagle a contract for buses.To bolster their chances,
Environmental Tectonics Corp. and W. S.Kirkpatrick & Co. were both competing for a valuable contract with the Nigerian government.Kirkpatrick got it. Tectonics then sued Kirkpatrick in the United
The Kyrgyz Republic is another of the new nations that broke away from the old Soviet Union. In September 1994, the government of Kyrgyzstan made two independent announcements:(1) it was abolishing
Zenith and other American manufacturers of television sets sued Matsushita and 20 other Japanese competitors, claiming that the Japanese companies had conspired to drive Zenith and the Americans out
YOU BE THE JUDGE WRITING PROBLEM Continental Illinois National Bank issued an irrevocable letter of credit on behalf of Bill’s Coal Co. for $805,000, with the Allied Fidelity Insurance Co. as
Sports Graphics, Inc., imports consumer goods, including “Chill” brand coolers, which come from Taiwan. Chill coolers have an outer shell of vinyl, with handles and pockets, and an inner layer of
The Foreign Corrupt Practices Act (FCPA)makes it illegal for an American businessperson to bribe foreign officials.
The Act of State doctrine requires an American court to abstain from any case in which a court order would interfere with the ability of the President or Congress to conduct foreign affairs.
Sovereign immunity means that, in general, American courts lack jurisdiction to hear suits against foreign governments unless the foreign nation has waived immunity, is engaging in commercial
Expropriation refers to a government taking property owned by foreign investors. U.S.courts regard this as lawful, provided the country pays the American owner promptly and fully, in dollars.
A foreign government may restrict repatriation of profits.
International comity requires a local court to respect the legal system of a foreign country and dismiss a lawsuit if the dispute would more logically be resolved in the other nation.
Antitrust laws exist in the United States, the European Union (EU), and other countries.International merchants must be careful not to make agreements that would distort competition.
A confirmed, irrevocable letter of credit is an important means of facilitating international sales contracts because the seller is assured of payment by a local bank as long as it delivers the
A sales agreement between an American company and a foreign company may be governed by the UCC, by the law of the foreign country, or by the United Nations Convention on Contracts for the
GATT created the World Trade Organization(WTO), which resolves disputes between signatories to the treaty.
The General Agreement on Tariffs and Trade(GATT) is lowering the average duties worldwide.Proponents see it as a boon to trade; opponents see it as a threat to workers and the environment.
Most countries, including the United States, impose duties for goods that have been dumped(sold at an unfairly low price in the international market) and for subsidized goods (those benefiting from
A tariff is a duty (tax) imposed on goods when they enter a country. The U.S. Customs Service classifies goods when they enter the United States and imposes appropriate tariffs.
Several statutes restrict exports from the United States that would harm national security, foreign policy, or certain other goals.
Go to www.thomsonedu.com/westbuslaw/beatty to find a Website devoted to Internet crime. Find a current crime that might victimize you. What steps should you take to avoid harm?
ROLE REVERSAL Write a short-answer question that focuses on the elements of a RICO violation.
After graduating from college, you work hard for 15 years, saving money to buy your dream property. Finally, you spend all your savings to buy a 300-acre farm with a splendid house and pool. Happy,
Under a new British law, a police officer must now 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
Northwest Telco Corp. (Telco) provides long-distance telephone service. Customers dial a general access number, then enter a six-digit access code and then the phone number they want to call. A
Conley owned video poker machines. They are outlawed in Pennsylvania, but he placed them in bars and clubs. He used profits from the machines to buy more machines. Is he guilty of money laundering?
Federal law requires that all banks file reports with the IRS any time a customer engages in a cash transaction in an amount over $10,000.It is a crime for a bank to “structure” a cash
Kathy Hathcoat was a teller at a Pendleton, Indiana, bank. In 1990 she began taking home money that belonged in her cash drawer. Her branch manager, Mary Jane Cooper, caught her.But rather than
National Medical Enterprises (NME) is a large for-profit hospital and health corporation. One of its hospitals, Los Altos Hospital, in Long Beach, California, paid one doctor $219,275, allegedly for
ETHICS Nineteen-year-old David Lee Nagel viciously murdered his grandparents, stabbing them repeatedly and slitting their throats, all because they denied him use of the family car.He was tried for
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
Arnie owns a two-family house in a poor section of the city. A fire breaks out, destroying the building and causing $150,000 of damage to an adjacent store. The state charges Arnie with arson.
The Eighth Amendment prohibits excessive fines and cruel and unusual punishments.
Information obtained in violation of the Fourth, Fifth, or Sixth Amendment is generally excluded from trial.
The Sixth Amendment guarantees criminal defendants the right to a lawyer.
The Fifth Amendment requires due process in all criminal procedures and prohibits double jeopardy and self-incrimination.
The Fourth Amendment prohibits the government from making illegal searches and seizures.
Money laundering consists of taking profits from a criminal act and either using them to promote crime or attempting to conceal their source.
RICO prohibits using two or more racketeering acts to invest in legitimate business or carry on certain other criminal acts. RICO permits civil lawsuits as well as criminal prosecutions.
If a company’s agent commits a criminal act within the scope of her employment and with the intent to benefit the corporation, the company is liable.
Computer crime statutes prohibit computer trespass and fraud; wrongful use of cards, codes, and identification; and most intercepting or taping of conversations.
Embezzlement is the fraudulent conversion of property already in the defendant’s possession.
Arson is the malicious use of fire or explosives to damage or destroy real estate or personal property.
Fraud refers to a variety of crimes, all of which involve the deception of another person for the purpose of obtaining money or property.
Larceny is the trespassory taking of personal property with the intent to steal.
In addition to factual defenses, such as mistaken identity or alibi, a defendant may offer various legal defenses, including insanity, entrapment, and duress.
In all prosecutions, the government must establish that the defendant’s conduct was outlawed, that the defendant committed the actus reus, and that he had the necessary mens rea.
The rationales for punishment include restraint, deterrence, retribution, and rehabilitation.
Take a look at http://response.restoration.noaa.gov/.What are some of the long-term problems associated with oil spills? View some of the photos in the“gallery.” Are punitive damages for oil
ROLE REVERSAL Write a multiple-choice question about defamation in which one and only one element is missing from the plaintiff’s case. Choose a set of answers that forces the student to isolate
Van Houten owned a cat and allowed it to roam freely outside. In the three years he had owned it, it had never bitten anyone. The cat entered Pritchard’s garage. Pritchard attempted to move it
There is a collision between cars driven by Candy and Zeke, and both drivers are partly at fault. The evidence is that Candy is about 25 percent responsible, for failing to stop quickly enough, and
ETHICS Swimming pools in private homes often have diving boards, but those in public parks, hotels, and clubs rarely do. Why is that?Is it good or bad?
A prison inmate bit a hospital employee. The employee sued the state for negligence and lack of supervision, claiming a fear of AIDS. The plaintiff had tested negative for HIV three times, and there
A new truck, manufactured by General Motors Corp. (GMC), stalled in rush hour traffic on a busy interstate highway because of a defective alternator, which caused a complete failure of the truck’s
Ryder leased a truck to Florida Food Service;Powers, an employee, drove it to make deliveries.He noticed that the door strap used to close the rear door was frayed, and he asked Ryder to fix it.
Jason Jacque was riding as a passenger in a car driven by his sister, who was drunk and driving 19 mph over the speed limit. She failed to negotiate a curve, skidded off the road, and collided with a
YOU BE THE JUDGE WRITING PROBLEM Johnny Carson was for many years the star of a well-known television program, The Tonight Show.For about 20 years, he was introduced nightly on the show with the
Caudle worked at Betts Lincoln-Mercury dealer.During an office party, many of the employees, including President Betts, were playing with an electric auto condenser, which gave a slight electric
ETHICS In the Stubblefield case in Question 3, the jury awarded $8 million in punitive damages to the family. Ford appealed. Should the punitive damages be affirmed? What are the obligations of a
Fifteen-year-old Terri Stubblefield was riding in the back seat of a Ford Mustang II when the car was hit from behind. The Mustang was engulfed in a ball of fire, and Terri was severely burned. She
Caldwell, carrying a large purse, was shopping in a K-Mart store. A security guard observed her look at various small items such as stain, hinges, and antenna wire. On occasion she bent down out of

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