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Questions and Answers of Business Law

After World War II, which ended in 1945, an international tribunal of judges convened at Nuremberg, Germany. The judges convicted several Nazis of “crimes against humanity.”Assuming that the Nazi
Assume that you want to read the entire court opinion in the case of Menashe v.V Secret Catalogue, Inc., 409 F. Supp. 2d 412 (S.D.N.Y. 2006). The case focuses on whether “SEXY LITTLE THINGS” is a
This chapter discussed a number of sources of American law. Which source of law takes priority in the following situations, and why?(a) A federal statute conflicts with the U.S. Constitution.(b) A
In the text of this chapter, we stated that the doctrine of stare decisis “became a cornerstone of the English and American judicial systems.” What does stare decisis mean, and why has this
What is the difference between a concurring opinion and a majority opinion? Between a concurring opinion and a dissenting opinion? Why do judges and justices write concurring and dissenting opinions,
Courts can overturn precedents and thus change the common law. Should judges have the same authority to overrule statutory law? Explain.
The judge’s role is not to make the law but to uphold and apply the law. Do you agree or disagree with this statement? Discuss fully the reasons for your answer.
Assume that Arthur Rabe is suing Xavier Sanchez for breaching a contract in which Sanchez promised to sell Rabe a Van Gogh painting for $3 million.(a) In this lawsuit, who is the plaintiff and who is
On July 5, 1884, Dudley, Stephens, and Brooks—“all able-bodied English seamen”—and a teenage English boy were cast adrift in a lifeboat following a storm at sea. They had no water with them
On what basis might the federal district court in Illinois exercise jurisdiction in this case?Stan Garner resides in Illinois and promotes boxing matches for SuperSports, Inc., an Illinois
Does the federal district court have original or appellate jurisdiction?Stan Garner resides in Illinois and promotes boxing matches for SuperSports, Inc., an Illinois corporation. Garner created the
Suppose that Garner had filed his action in an Illinois state court. Could an Illinois state court exercise personal jurisdiction over Foreman or his manager? Why or why not?Stan Garner resides in
Assume that Garner had filed his action in a Nevada state court. Would that court have personal jurisdiction over Foreman or his manager? Explain.Stan Garner resides in Illinois and promotes boxing
If wealthier individuals increasingly use private judges, how will our justice system be affected in the long run?
If Mastondrea had not seen Libgo and Allegro’s ad, but had bought a Royal Hideaway vacation package on the recommendation of a Liberty Travel agent, is it likely that the result in this case would
What do the circumstances and the holding in this case suggest to a business firm that actively attempts to attract customers in a variety of jurisdictions?
Now that the Supreme Court is allowing unpublished decisions to be used as persuasive precedent in federal courts, should state courts follow? Why or why not?
Does the holding in this case permit a court to enforce an arbitration agreement in a contract that the arbitrator later finds to be void? Is this fair? Why or why not?
As indicated in the parties’ arguments and the Court’s reasoning in this case, into what categories can contracts be classified with respect to their enforceability?
On what argument did Morrison base her appeal of the court’s order to arbitrate her employment-discrimination claims?
Why did the U.S. Court of Appeals for the Sixth Circuit hold in Morrison’s case that the arbitration agreement’s cost-splitting provision was unenforceable?
In an arbitration proceeding, the arbitrator need not be a judge or even a lawyer. How, then, can the arbitrator’s decision have the force of law and be binding on the parties involved?
The defendant in a lawsuit is appealing the trial court’s decision in favor of the plaintiff. On appeal, the defendant claims that the evidence presented at trial to support the plaintiff’s claim
Appellate courts normally see only written transcripts of trial proceedings when they are reviewing cases. Today, in some states, videotapes are being used as the official trial reports. If the use
Marya Callais, a citizen of Florida, was walking along a busy street in Tallahassee, Florida, when a large crate flew off a passing truck and hit her, causing numerous injuries. She experienced a
American Business Financial Services, Inc. (ABFI), a Pennsylvania firm, sells and services loans to businesses and consumers. First Union National Bank, with its principal place of business in North
Alexander Little worked for Auto Stiegler, Inc., an automobile dealership in Los Angeles County, California, eventually becoming the service manager. While employed, Little signed an arbitration
KaZaA BV was a company formed under the laws of the Netherlands. KaZaA distributed KaZaA Media Desktop (KMD) software, which enabled users to exchange digital media, including movies and music, via a
Michael and Karla Covington live in Jefferson County, Idaho. When they bought their home, a gravel pit was across the street. In 1995, the county converted the pit to a landfill. Under the county’s
Xcentric Ventures, LLC, is an Arizona firm that operates the Web sites RipOffReport.com and BadBusinessBureau.com. Visitors to the sites can buy a copy of a book titled Do-It-Yourself Guide: How to
In 2001, Raul Leal, the owner and operator of Texas Labor Contractors in East Texas, contacted Poverty Point Produce, Inc., which operates a sweet potato farm in West Carroll Parish, Louisiana, and
Linden Research, Inc., operates a multiplayer role-playing game in the virtual world known as “Second Life” at secondlife.com. Participants create avatars to represent themselves on the site. In
Go to this text’s Web site at academic.cengage.com/blaw/clarkson and select “Chapter 2.” Click on “Video Questions” and view the video titled Jurisdiction in Cyberspace. Then answer the
Suppose that the attorney the Metzgars hired agreed to represent them on a contingency-fee basis. What does that mean?Ronald Metzgar placed his fifteen-month-old son, Matthew, awake and healthy, in
How would the Metzgars’ attorney likely have served process (the summons and complaint) on Playskool, Inc.?Ronald Metzgar placed his fifteen-month-old son, Matthew, awake and healthy, in his
Should Playskool’s request for summary judgment be granted? Why or why not?Ronald Metzgar placed his fifteen-month-old son, Matthew, awake and healthy, in his playpen. Ronald left the room for five
Suppose that the judge denied Playskool’s motion and the case proceeded to trial. After hearing all the evidence, the jury found in favor of the defendant. What options do the plaintiffs have at
Suppose that Cruz had misaddressed the envelope but the summons had still reached Hayes and Cruz could prove it. Would this have been sufficient to establish valid service?Explain.
Should a plaintiff be required to serve a defendant with a summons and a copy of a complaint more than once? Why or why not?
How might a large corporation protect itself from allegations that it intentionally failed to preserve electronic data?
Suppose that Brotby had not made frivolous objections and baseless motions but still had failed to comply with discovery requests. How might the court’s ruling in this case have been different?
What does the result in this case suggest to parties in litigation who might be reluctant to respond truthfully to court requests?
Given the significant and often burdensome costs associated with electronic discovery, should courts consider cost shifting in every case involving electronic discovery? Why or why not?
Hearsay is literally what a witness says he or she heard another person say. What makes the admissibility of such evidence potentially unethical?
In this case, the plaintiff offered as evidence the printouts of Web pages that he claimed once appeared on others’ Web sites. What makes such evidence questionable until proved accurate?
Attorneys in personal-injury and other tort lawsuits frequently charge clients on a contingency fee basis; that is, a lawyer will agree to take on a client’s case in return for, say, 30 percent of
When and for what purpose is each of the following motions made? Which of them would be appropriate if a defendant claimed that the only issue between the parties was a question of law and that the
In the past, the rules of discovery were very restrictive, and trials often turned on elements of surprise. For example, a plaintiff would not necessarily know until the trial what the defendant’s
Washoe Medical Center, Inc., admitted Shirley Swisher for the treatment of a fractured pelvis. During her stay, Swisher suffered a fatal fall from her hospital bed. Gerald Parodi, the administrator
Advance Technology Consultants, Inc. (ATC), contracted with RoadTrac, L.L.C., to provide software and client software systems for the products of global positioning satellite (GPS) technology being
Ms. Thompson filed a suit in a federal district court against her employer, Altheimer & Gray, seeking damages for alleged racial discrimination in violation of federal law. During voir dire, the
To establish a Web site, a person must have an Internet service provider or hosting company, register a domain name, and acquire domain name servicing. Pfizer, Inc., Pfizer Ireland Pharmaceuticals,
Gerald Adams worked as a cook for Uno Restaurants, Inc., at Warwick Pizzeria Uno Restaurant & Bar in Warwick, Rhode Island. One night, shortly after Adams’s shift began, he noticed that the kitchen
Narnia Investments, Ltd., filed a suit in a Texas state court against several defendants, including Harvestons Securities, Inc., a securities dealer. (Securities are documents evidencing the
Go to Case 3.1, Cruz v. Fagor America, Inc. Read the excerpt and answer the following questions. (a) Issue: On what preliminary step to litigation does the issue in this case focus?(b) Rule of Law:
Why does this statute raise equal protection issues instead of substantive due process concerns?A state legislature enacted a statute that required any motorcycle operator or passenger on the
What are the three levels of scrutiny that the courts use in determining whether a law violates the equal protection clause?A state legislature enacted a statute that required any motorcycle operator
Which standard of scrutiny, or test, would apply to this situation? Why?A state legislature enacted a statute that required any motorcycle operator or passenger on the state’s highways to wear a
Applying this standard, or test, is the helmet statute constitutional? Why or why not?A state legislature enacted a statute that required any motorcycle operator or passenger on the state’s
Clearly, there are two sides to this debate. Many states contend that they must regulate the provision of prescription drugs via the Internet in order to ensure the safety and well-being of their
Suppose that the states had only required the out-of-state wineries to obtain a special license that was readily available. How might this have affected the outcome of the case?
How might the issues related to the purchase of out-of-state wines have changed as a result of consumers’ increased use of the Internet?
If Bad Frog had sought to use the offensive label to market toys instead of beer, would the court’s ruling likely have been the same?
Whose interests are advanced by the banning of certain types of advertising?
Did the statements about Lott in Freakonomics constitute unprotected speech? Explain.
Should the First Amendment protect all speech? Discuss.
A Georgia state law requires the use of contoured rear-fender mudguards on trucks and trailers operating within Georgia state lines. The statute further makes it illegal for trucks and trailers to
Thomas worked in the nonmilitary operations of a large firm that produced both military and nonmilitary goods. When the company discontinued the production of nonmilitary goods, Thomas was
A business has a backlog of orders, and to meet its deadlines, management decides to run the firm seven days a week, eight hours a day. One of the employees, Abe Placer, refuses to work on Saturday
The framers of the U.S. Constitution feared the twin evils of tyranny and anarchy. Discuss how specific provisions of the Constitution and the Bill of Rights reflect these fears and protect against
Henry Mishkoff is a Web designer whose firm does business as “Webfeats.”When Taubman Co. began building a mall called “The Shops at Willow Bend” near Mishkoff’s home, Mishkoff registered
To protect the privacy of individuals identified in information systems maintained by federal agencies, the Privacy Act of 1974 regulates the use of the information. The statute provides for a
In 1994, the Board of County Commissioners of Yellowstone County, Montana, created Zoning District 17 in a rural area of the county and a planning and zoning commission for the district. The
The Federal Communications Act of 1934 grants the right to govern all interstate telecommunications to the Federal Communications Commission (FCC) and the right to regulate all intrastate
For decades, New York City has had to deal with the vandalism and defacement of public property caused by unauthorized graffiti. Among other attempts to stop the damage, in December 2005 the city
Aric Toll owns and manages the Balboa Island Village Inn, a restaurant and bar in Newport Beach, California. Anne Lemen owns the “Island Cottage,” a residence across an alley from the Inn. Lemen
Go to Case 4.3, Lott v. Levitt. Read the excerpt and answer the following questions.(a) Issue: At the center of the dispute in this case was a distinction between which types of speech?(b) Rule of
This scenario illustrates one of the main reasons why ethical problems occur in business. What is that reason?Isabel Arnett was promoted to chief executive officer (CEO) of Tamik, Inc., a
Would a person who adheres to the principle of rights consider it ethical for Arnett not to disclose potential safety concerns and to refuse to perform additional research on Kafluk? Why or why
If Kafluk prevented fifty Asian people who were infected with bird flu from dying, would Arnett’s conduct in this situation be ethical under a utilitarian model of ethics? Why or why not?Isabel
Did Tamik or Arnett violate the Foreign Corrupt Practices Act in this scenario? Why or why not?Isabel Arnett was promoted to chief executive officer (CEO) of Tamik, Inc., a pharmaceutical company
Would there by any way in which the Baums could have operated their business ethically? Explain.
Are there situations in which a business owner’s conduct would be more reprehensible than the Baums’ behavior in this case? Explain.
Clearly, the corporate culture at Siemens, at least in the last few decades, did not distinguish among actions that were both ethical and legal, actions that were unethical but perhaps legal, and
Should more consideration have been given to the fact that Fog Cutter was not convicted of a violation of the law? Why or why not?
What does the decision in this case suggest to foreign investors who may be considering investments in securities listed on U.S. exchanges?
Suppose that Wright had not been a financial analyst and his duties for Brazos had not included reviewing confidential loan data. How might the opinion of the court have been different?
Do businesses have an ethical duty to use enhanced security measures to protect confidential customer information? Why or why not? Does the fact that Brazos allowed its employees to store
Some business ethicists maintain that whereas personal ethics has to do with “right” or “wrong” behavior, business ethics is concerned with “appropriate” behavior. In other words, ethical
If a firm engages in “ethical” behavior solely for the purpose of gaining profits from the goodwill it generates, the “ethical” behavior is essentially a means toward a self-serving end
Susan Whitehead serves on the city planning commission. The city is planning to build a new subway system, and Susan’s brother-in-law, Jerry, who owns the Custom Transportation Co., has submitted
Assume that you are a high-level manager for a shoe manufacturer. You know that your firm could increase its profit margin by producing shoes in Indonesia, where you could hire women for $40 a month
Shokun Steel Co. owns many steel plants. One of its plants is much older than the others. Equipment at the old plant is outdated and inefficient, and the costs of production at that plant are now
Eden Electrical, Ltd., owned twenty-five appliance stores throughout Israel, at least some of which sold refrigerators made by Amana Co.Eden bought the appliances from Amana’s Israeli distributor,
Richard Fraser was an “exclusive career insurance agent” under a contract with Nationwide Mutual Insurance Co. Fraser leased computer hardware and software from Nationwide for his business.
Unable to pay more than $1.2 billion in debt, Big Rivers Electric Corp. filed a petition to declare bankruptcy in a federal bankruptcy court in September 1996. Big Rivers’ creditors included Bank
Ernest Price suffered from sickle-cell anemia. In 1997, Price asked Dr. Ann Houston, his physician, to prescribe OxyContin, a strong narcotic, for the pain. Over the next several years, Price saw at
In 1999, Andrew Fastow, chief financial officer of Enron Corp., asked Merrill Lynch, an investment firm, to participate in a bogus sale of three barges so that Enron could record earnings of $12.5
Steven Soderbergh is the Academy Award–winning director of Erin Brockovich, Traffic, and many other films. CleanFlicks, LLC, filed a suit in a federal district court against Soderbergh, fifteen
Go to this text’s Web site at academic. cengage.com/blaw/clarkson and select “Chapter 5.” Click on “Video Questions” and view the video titled Ethics: Business Ethics an Oxymoron? Then

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