Questions and Answers of Business Its Legal Ethical

A QUESTION OF ETHICS White Plains Coat & Apron Co. is a New York–based linen rental business.Cintas Corp.is a nationwide business that rents similar products.White Plains had five-year exclusive
CASE PROBLEM WITH SAMPLE ANSWER Between 1996 and 1998, Donna Swanson received several anonymous, handwritten let ters that,among other things,accused her husband,Alan, of infidelity. In 1998, John
Defamation. Lydia Hagberg went to her bank, California Federal Bank,FSB,to cash a check made out to her by Smith Barney (SB), an investment services firm.Nolene Showalter,a bank employee,suspected
Invasion of Privacy. During the spring and summer of 1999, Edward and Geneva Irvine received numerous“hang-up”phone calls,including three calls in the middle of the night.With the help of their
Intentional Torts against Property. In 1994, Gary Kremen registered the domain name “sex.com” with Network Solutions, Inc., to the name of Kremen’s busi ness, Online Classifieds. Later, Stephen
Trespass to Property. America Online, Inc. (AOL), provides services to its customers or members,including the transmission of e-mail to and from other members and across the Internet.To become a
Bombardier Capital,Inc.,provides financing to boat and recreational vehicle dealers.Bombardier’s credit pol icy requires dealers to forward immediately to Bombardier the proceeds of boat sales.
Gerrit is a former employee of ABC Auto Repair Co.He enters ABC’s repair shop, claiming that the company owes him $800 in back wages. Gerrit argues with ABC’s general manager,Steward,and Steward
QUESTION WITH SAMPLE ANSWER Lothar owns a bakery. He has been trying to obtain a long-term contract with the owner of Martha’s Tea Salons for some time. Lothar starts a local advertising campaign
Richard is an employee of the Dun Construction Corp.While delivering materi als to a construction site,he carelessly backs Dun’s truck into a passenger vehicle driven by Green.This is Richard’s
Suppose that an automobile manufacturing company has to choose between two alternatives: contributing $1 million annually to the United Way or reinvesting the $1 million in the company. In terms of
VIDEO QUESTION Go to this text’s Web site at www.cengage.com/blaw/jentz and select “Chapter 5.” Click on “Video Questions” and view the video titled Ethics:Business Ethics an Oxymoron? Then
A QUESTION OF ETHICS 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
Ethical Leadership. 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
Ethical Conduct. 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
Ethical Conduct. 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
Ethical Conduct. Richard Fraser was an “exclusive career insurance agent” under a contract with Nationwide Mutual Insurance Co. Fraser leased com puter hardware and software from Nationwide for
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 pro duction at that plant are now twice
CASE PROBLEM WITH SAMPLE ANSWER Eden Electrical, Ltd., owned twenty-five appli ance stores throughout Israel, at least some of which sold refrigerators made by Amana Co.Eden bought the appliances
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
Susan Whitehead serves on the city planning com mission.The city is planning to build a new subway sys tem, and Susan’s brother-in-law, Jerry, who owns the Custom Transportation Co.,has submitted
QUESTION WITH SAMPLE ANSWER If a firm engages in “ethical”behavior solely for the purpose of gaining profits from the good will it generates, the “ethical”behavior is essentially a means
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
Freedom of Speech. For decades,New York City has had to deal with the vandalism and defacement of pub lic property caused by unauthorized graffiti. Among other attempts to stop the damage,in December
A QUESTION OF ETHICS 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
Supremacy Clause. 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
Due Process. In 1994, the Board of County Commissioners of Yellowstone County,Montana,created Zoning District 17 in a rural area of the county and a plan ning and zoning commission for the district.
CASE PROBLEM WITH SAMPLE ANSWER 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
Freedom of Speech. 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
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 on
QUESTION WITH SAMPLE ANSWER 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
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
A QUESTION OF ETHICS Narnia Investments, Ltd., filed a suit in a Texas state court against several defendants,including Harvestons Securities, Inc., a securities dealer. (Securities are documents
Motion for Judgment n.o.v.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
CASE PROBLEM WITH SAMPLE ANSWER To establish a Web site, a person must have an Internet service provider or hosting company, register a domain name,and acquire domain name ser vicing. Pfizer, Inc.,
Jury Selection. Ms.Thompson filed a suit in a federal district court against her employer, Altheimer & Gray, seeking damages for alleged racial discrimination in vio lation of federal law.During voir
Advance Technology Consultants, Inc. (ATC), con tracted with RoadTrac, L.L.C., to provide software and client software systems for the products of global posi tioning satellite (GPS) technology being
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 of
In the past, the rules of discovery were very restric tive, and trials often turned on elements of surprise. For example,a plaintiff would not necessarily know until the trial what the defendant’s
QUESTION WITH SAMPLE ANSWER When and for what purpose is each of the fol lowing motions made? Which of them would be appropriate if a defendant claimed that the only issue between the parties was a
Attorneys in personal-injury and other tort lawsuits (see Chapters 6 and 7)frequently charge clients on a contingency fee basis; that is, a lawyer will agree to take on a client’s case in return
VIDEO QUESTION Go to this text’s Web site at www.cengage. com/blaw/jentz and select “Chapter 2.” Click on “Video Questions” and view the video titled Jurisdiction in Cyberspace. Then answer
A QUESTION OF ETHICS 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
Jurisdiction. In 2001, Raul Leal, the owner and operator of Texas Labor Contractors in East Texas, con tacted Poverty Point Produce, Inc., which operates a sweet potato farm in West Carroll Parish,
E-Jurisdiction. 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
CASE PROBLEM WITH SAMPLE ANSWER 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 con verted the pit to a
Jurisdiction. 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
Arbitration. 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
E-Jurisdiction. 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
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 great
QUESTION WITH SAMPLE ANSWER 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 pre sented at trial to
A QUESTION OF ETHICS 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
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
What is the difference between a concurring opin ion and a majority opinion? Between a concurring opinion and a dissenting opinion? Why do judges and justices write concurring and dissenting
In the text of this chapter,we stated that the doctrine of stare decisis“became a cornerstone of the English and
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
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
QUESTION WITH SAMPLE ANSWER 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
A. W. Ham Jr. served on the board of directors for Golden Nugget, Inc., a Nevada corporation. In 1969, while Mr. Ham was a director and legal counsel for Golden Nugget, he obtained a leasehold
Boeing Company has long built many of its planes in the Puget Sound region in Washington, using a unionized workforce. In October 2009, Boeing CEO Jim McNerney announced that Boeing would be
A group of exotic dancers at several clubs in the San Fernando Valley of California brought a class action suit against their employers, the club owners, for the following violations of labor law:•
Dawnmarie Souza was fired from American Medical Response (AMR) after using vulgarities to ridicule her supervisor in a Facebook posting. Souza also wrote, using the company’s terminology for a
Calvin Rhodes began as a salesman with Dresser Industries in 1955. In 1986, the oil industry experienced a severe economic downturn, and Mr. Rhodes was laid off. His severance report said he was
Vivian Martyszenko was working as a cashier at a Safeway grocery store in Ogallala, Nebraska, when she received a call from the police informing her that her two children might have been molested.
On August 11, 1980, Shelby Memorial Hospital hired Sylvia Hayes, a certified X-ray technician, to work the 3:00 11:00 p.m. shift in the hospital’s radiology department. Two months later, she was
Between 1985 and 1990, while attending college, Beth Ann Faragher worked part-time and during the summers as an ocean lifeguard for the Parks and Recreation Department of the City of Boca Raton.
Wendy Komac was hired by Gordon Food Service as a salesperson. During the course of her employment, Gordon held sales contests such as the “Winner’s Circle” competition, which rewarded the
Would the following actions constitute sexual harassment?a. Making sexual comments or innuendoes; telling sexual jokes or storiesb. Asking questions about social or sexual lifec. Telling lies or
American Airlines passed a grooming rule that prohibited “cornrow” hairstyles on all employees. Renee Rogers, a black woman, brought a Title VII suit alleging that the denial of her right to wear
American Airlines has a policy of not hiring flight officers over the age of 40. The reason for their policy is that it takes 10 to 15 years for a flight officer to become a copilot and then another
An employee of Walmart worked at the store on the night restocking crew. For security reasons, the manager of the store implemented a policy of locking all doors leading into and out of the store at
Felix Santos, Carlos Garcia, and Jose A. Valdes Prieto were stock persons for Cuba Tropical, Inc., a supermarket supplier. They regularly worked over 40 hours per week, but they were not paid
Janice W. Craig was employed by Drenberg and Associates, an insurance agency. About the time she started to work, Drenberg began a year of explosive growth. Under normal conditions, an agency with
Joe Ortiz was discharged from Magma Copper Co. for absenteeism. He missed the last shift of work before he was fired because he was temporarily in custody following an arrest for a criminal offense.
Supervisors at Walmart asked employees to work off the clock, erase hours from their time cards, and not take lunch and other breaks. Determine whether there would be any FLSA violations if the
William H. Sullivan, Jr. gained control of the New England Patriots Football Club (Patriots) by forming a separate corporation (New Patriots) and merging it with the old one. Plaintiffs are a class
Jeff Charleston is a retired executive of Clarkson, Inc. He retired in 2016. He has been asked to join the board and serve on the audit committee. Clarkson is a publicly traded 1934 Act reporting
Vincent Chiarella was employed as a printer in a financial printing firm that handled the printing for takeover bids. Although the firm names were left out of the financial materials and inserted at
Following the collapse of the World Trade Center (WTC) in New York City on September 11, 2001, the stock markets were closed for several days. When the stock markets reopened on Monday, September 17,
Iroquois Brands, Ltd., is a food company that imports French foie gras, a pâté made from the enlarged livers of force-fed geese. The French method for raising the geese is to funnel corn down the
Steve Hindi is an animal rights activist who owns in $5,000 Pepsi stock. He discovered that Pepsi advertises in bullrings in Spain and Mexico, and he has attended annual shareholder meetings and put
Reed Hastings, the CEO of Netflix, announced on his personal Facebook page that Netflix had reached a new benchmark, that of streaming 1 billion hours of its content in a one-month period. Later, the
McNeil, a division of Johnson & Johnson, had significant problems with quality control on its products, including infant Tylenol and Motrin. Worn equipment in plants resulted in metal flakes in
The Trapp Family Lodge, Inc. (TFL), was incorporated in 1962 as a holding company for certain assets of the Von Trapp family, including the Trapp Family Lodge, a resort hotel in Stowe, Vermont, and
The Orleans Parish School Board hired Johnson & Higgins (J & H) to provide consulting services. J & H provided those services over the next few years but was then acquired by Marsh &
Marc and Brenda Bertorelli and their company, Marc Bertorelli Builders, joined together to purchase a condominium. Their goal was to purchase properties and then turn around and sell them for a
Former Governor J. Fife Symington of Arizona was, during the 1980s, a director of Southwest Savings & Loan, a federal thrift headquartered in Phoenix. Mr..Symington was also a developer who
Gailey, Inc., incorporated in 1980, removed asbestos and mechanical insulation on contract jobs that required union labor. Richard Gailey had been the president, controlling shareholder, and director
Recovery Express and Interstate Demolition (IDEC) are two Boston-based companies with the same business address. Albert Arillotta, who claimed to be a partner at IDEC, sent an e-mail to Leo Whitehead
Bernice Bisbee is a real estate broker employed by Midkiff Realty, Inc. In September 1972, she obtained from Richard and Marian Silva an exclusive listing agreement for the sale of their property in
John Guz, 49, first hired in 1971, had worked for Bechtel Corporation for 33 years. In 1986, he was assigned to BNI, a division specializing in engineering, construction, and environmental
Reverend John Fisher is the pastor of St. James Episcopal Church in Ohio. Catherine Davis served there as parish secretary from 1978 until six months after Reverend Fisher arrived at St. James in
Kevin Gardner is a driver with Loomis Armored, Inc., which is a company that supplies armored truck delivery services to banks, businesses, and others requiring secure transport of funds and other
Nineteen-year-old Lee J. Norris was employed by Burger Chef Systems as an assistant manager of one of its restaurants. On a day when he was in charge and change was needed, Mr. Norris left to get
John Coon purchased a piece of commercial property in Washington, D.C., through real estate broker Edward Wood. Mr. Coon later decided to purchase other property in West Virginia by selling the D.C.
On March 29, 1983, Barry Mapp was observed in the JCPenney department store in Upper Darby, Pennsylvania, by security personnel, who suspected that he might be a shoplifter. Michael DiDomenico, a
AFLAC sells health care insurance policies. Darren Galgano signed an "Associate's Agreement" with AFLAC, which engaged Galgano to solicit applications for insurance policies offered for sale by
Starbucks, Inc., the international coffeehouse, is an aggressive defender of its name as well as the names for its coffees. It has ongoing litigation for infringement:• A & D Café of Brooklyn,
Do the following slogans constitute protectable business properties?a. MetLife: “Get Met, It Pays”b. General Electric: “GE Brings Good Things to Life”c. Nike: “Just Do It”d. Toys “R”
ASUS Computer International has brought suit against ExoTablet Ltd. because both companies have developed smartphone/tablet hybrid devices. The devices combine a smartphone with a cradle in a

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