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Questions and Answers of Business Law

What are the consequences of holding the storage company not liable?
1. What term would economists apply to the harm caused by escaping chemicals?2. Is it fair to pass on the costs of negative externalities to neighbors who make no profit from the chemical business?
Assuming the guards did a bad job assisting the passenger, was the railroad liable for the injuries to Ms. Palsgraff?
Did the fraternity and the other defendants have a duty of due care to Hernandez?
Did Southcoast have a duty to the plaintiffs to prevent this kind of harm?
Did Pacific Plaza have a duty to Ann M. to provide security patrols?
Has Reynolds demonstrated injury?
May a bystander recover for emotional distress cause by an accident they did not see?
Did the company cause the harm?
Michelle Ra heard the loud bang, feared her husband was hurt, turned and saw him in pain and rushed to his side. As a result, Michelle suffered a miscarriage. Why isn’t that an injury?
Match the following terms with their definitions:___ A. Larceny___ B. RICO___ C. Felony___ D. Mensrea___ E. M’Naghten Rule___ F. Embezzlement1. A statute designed to prevent the use of criminal
TRUE/FALSE 1. Both the government and the victim are entitled to prosecute a crime.2. A misdemeanor is a less serious crime, punishable by less than a year in jail.3. In all criminal cases, the
Multiple Choice Question 1. The insanity defenseA. Is available in less than five states nationwideB. Means that if the jury finds that a defendant was insane at the time of the crime, the defendant
ETHICS: What is the rationale for treating an insane defendant differently from others? Do you find the theory persuasive? Why or why not?
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
The two primary rationales for punishment are deterrence and retribution. What is deterrence?
What is retribution?
McElveen served seven months and Milligan nine months. Both were ordered to pay $13,000 in restitution. Milligan lost his job on the space shuttle (and along with it, his health benefits). What
Milligan served nine months in federal prison, and McElveen seven months. The court ordered restitution of the medical bills, and all three defendants suffered financially. How do you sup-pose the
Make an argument that what McElveen and friends did indicates nothing immoral about them but rather something wrong with society.
In terms of money, which would be more costly to society: paying for McElveen’s operation, or denying him the operation?
Respond to the points above, arguing that it is essential to punish the defendants.
1. The Colorado statute prohibits assisting suicide. Did Dick Bauer violate the statute?2. If you were on the jury, would you vote to convict?
How could the jury acquit when the evidence was so clear?
Is jury nullification good?
Suppose a defendant goes to a bar, gets blind drunk, and then goes out and robs a store. Is his intoxication a defense to the robbery?
1. Since voluntary intoxication is not a defense to a crime, why does Bieber even bother to raise his drug use?2. What argument is Bieber making?3. What does drug use have to do with insanity?
Morality clearly enters this case. In what way does Bieber argue that morality supports his claim?
In what way does the state argue that morality supports its prosecution?
Does this ruling mean that all sting operations are illegal?
1. Jacobson broke the law. Why shouldn’t he go to jail?2. What is the entrapment defense?
1. In entrapment cases, has the defendant definitely committed the crime, probably committed the crime, or probably not committed the crime?2. Aren’t “sting operations” a useful means of
Why have courts created the entrapment defense? If a defendant has definitely broken the criminal law, why shouldn’t we lock her up?
1. What is the defendant’s claim on appeal?2. Does the statute clearly state that harm to a corporation is covered?3. As it attempts to decide what this statute really means, what is the appellate
What are the steps for a court in statutory interpretation?
What does the court conclude?
Do you think the decision is fair?
Why did Middleton go to the trouble of this appeal, knowing he was likely to lose?
What is identity theft?
How does identify theft occur?
1. Is that what occurred in this case?2. Will the court order Dragon to repay the victims of his crime?
Why did the court make a point of saying that the trial court was in the best position to impose a sentence in his case?
It is 7:00 in the morning and all seems right with the world. Mr. Browning leaves his house, walking his children and their dog to the car, which is parked in the drive. What he does not know is that
How serious is the problem of fraudulent insurance claims?
1. Why is there so much fraud?2. Suppose you are walking down the street, round a comer, and see that a bus has just collided with an automobile. Only one policeman has arrived so far, and the
Is there anything people can do about fraudulent car accidents?
Do you think an advertising executive such as Dave Balter, who wants to demonstrate the added value his company can provide, should make his pitch orally or in writing?
Todesca wants to court to read the law strictly. What does this mean?
What did the court think about that argument?
If the employee commits the criminal act, why is it fair to hold the corporation liable for the employee’s conduct?
1. A corporation cannot go to jail. What criminal penalties do courts impose on corporations?2. If individuals have been harmed by a corporation’s crime would they receive payment of a fine imposed
1. What is money laundering?2. How did the money laundering occur here?3. If Laboyce did not commit the fraud, what crime did he commit?
The court answers two entirely separate questions in this case. What are they?
The court says, “the corporate business entity has become a way of life in this country and the imposition of criminal liability is an essential part of the regulatory process.” What is it
The court refers to the economic benefits that may accrue to a corporation from crimes. Is it saying that corporate officers spend their time planning crimes?
How can it possibly make sense to exclude legitimate evidence, because a police officer made some technical mistake? Aren’t we letting the criminal go free because the constable blundered?
Does the Supreme Court think that all cops want to abuse the average citizen?
The difference between a lawful search (or arrest) and an unlawful one is often a warrant. What is so special about a warrant?
What might happen if there was no requirement for probable cause?
What is wrong with being searched if you do not have anything to hide?
How many people go free because of the exclusionary rule?
May a jury find that a defendant with ADD is legally insane?
Did the government entrap Jacobson?
Does the CFAA prohibit harm to a corporation?
Did Dragon’s identity theft warrant this sentence?
Could the company be guilty of motor vehicle homicide?
Was there sufficient evidence that Laboyce knowingly laundered money?
Give an example of jury nullification that would be bad.
Suppose you realized that you could easily hop on the bus. By claiming a painful back and neck injury, you might be able to get a quick settlement for $10,000 or more. Would you do it?
Match the following terms with their definitions:___ A. Signatory___ B. NAFTA___ C. Tariff___ D. CISG___ E. Dumping1. A trade agreement between Mexico, the United States, and Canada2. Selling goods
TRUE/FALSE 1. A problem for many international merchants is that tariff s have been rising for the last decade.2. The United States imports more goods and services (combined) than it exports.3.
Multiple Choice Questions1. With which country does the United States trade more than any other?A. MexicoB. GermanyC. ChinaD. United KingdomE. Canada2. The Commerce Department alleges that Interlex,
Jean-François, a French wine exporter, sues Bob Joe, a Texas importer, claiming that Bob Joe owes him $2 million for wine. Jean-François takes the witness stand to describe how the contract was
ETHICS: Hector works in Zoey’s importing firm. Zoey overhears Hector on the phone say, “OK, 30,000 ski parkas at $80 per parka. You’ve got yourself a deal. Thanks a lot.” When Hector hangs
Continental Illinois National Bank issued an irrevocable letter of credit on behalf of Bill’s Coal Company for $805,000, with the Allied Fidelity Insurance Co. as beneficiary. Bill’s Coal Co.
1. Why did Avenues Leather challenge the Customs Service classification of these costumes?2. I thought the U.S. Customs Service stamped passports and looked in your luggage when you reenter the U.S.
1. How did the Customs Service decide the nature of the Calcu-Folios in this case?2. Why didn’t the court agree with that classification?
1. What action by the Service was at issue in this case?2. Who imposes tariffs on goods entering the United States?3. Who cares which it is?4. What is a tariff?
What steps does the Customs Service take in imposing tariffs?
In some carpet factories, children as young as 5 years old are shackled to looms and forced to work. They receive little food and no pay. How can their parents permit this to happen?
If you believe it is ethical to import such merchandise:
If you believe it is not ethical to import such merchandise:
Why does the United States have statutes such as the Arms Export Control Act?
Is it really fair to assume that all business people are aware of these rules about exporting controlled items? What if an honest businessperson actually does not know about the laws?
1. During the next decade, is the United States likely to increase or decrease its vigilance concerning exported technology?2. Suppose that a merchant is interested in establishing a business trading
What was the evidence that Reyes knew he was breaking the law?
Suppose that a small business has close ties to one country, such as Iran, through family relationships. Isn’t it unfair that the U.S. government embargoes that one country, making it impossible
Suppose that a business executive thinks that an embargo of one country is unfair. He sues. How is the suit likely to fare?
The court states that there are two key features to an irrevocable letter of credit (LOC). What are they?
What does “underlying commercial transaction” mean?
Why is it so important that the issuing bank substitute its credit for that of the account party?
Besides doubts about the creditworthiness of the buyer, why else might a seller prefer payment by LOC?
In the Centrifugal Casting case, what international event made the LOC invaluable to the seller?
Why is a confirmed LOC even more attractive to a seller than one that is not confirmed?
The court states that “the whole purpose of a letter of credit would be defeated by examining the merits of the underlying contract.” What does that mean?
Was the Calcu-Folio properly classified as a briefcase or a binder?
Is the Pathfinder a vehicle for passengers or for the transport of goods?
Was there sufficient evidence to prove that Reyes violated the AECA and related regulations?
Is CCM entitled to be paid pursuant to the letter of credit?
You have an employee who has a chemical imbalance in the brain that causes him to be severely emotionally unstable. The medication that is available to treat this schizophrenic condition is extremely

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