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business law legal environment

Questions and Answers of Business Law Legal Environment

N. I. S. promoted John, a forty-two-year-old employee, to a supervisor’s position while passing over James, a fifty-eightyear-old employee. N. I. S. told James that he was too old for the job and
Anthony was employed as a forklift operator for Blackburn Construction Company. While on the job, he operated the forklift in a manner that was careless and in direct violation of Blackburn’s
Hazelwood School District is located in Sleepy Hollow Township.It is being sued by several teachers who applied for teaching positions with the school but were rejected. The plaintiffs, who are all
T. W. E., a large manufacturer, prohibited its employees from distributing union leaflets to other employees while on the company’s property. Richard, an employee of T. W. E., disregarded the
Erwick was dismissed from her job at the C&T Steel Company because she was “an unsatisfactory employee.” At the time, Erwick was active in an effort to organize a union at C&T.Discuss whether the
Johnson, president of the First National Bank of A, believes that it is appropriate to employ only female tellers. Hence, First National refuses to employ Ken Baker as a teller but does offer him a
Samsoc brought an action against the Sailors’ Union alleging that the Union induced and encouraged employees of Moore Dry Dock Company to engage in a strike or concerted refusal in the course of
City of Richmond, Virginia (the City), adopted a Minority Business Utilization Plan requiring prime contractors awarded city construction contracts to subcontract at least 30 percent of the dollar
Wise was fired from her job at the Mead Corporation after she was involved in a fight with a coworker. On four other unrelated occasions, fights had occurred between male coworkers.Only one of the
Michelle Vinson was an employee of Meritor Savings Bank for approximately four years. Beginning as a teller-trainee, she ultimately advanced to the position of assistant branch manager.Her promotions
The Steamship Clerks Union has approximately 124 members, 80 of whom are classified as active. Members serve as steamship clerks who, during the loading and unloading of vessels in the port of
Ella Williams began working at Toyota’s automobile manufacturing plant in Georgetown, Kentucky, in August 2010. She was placed on an engine fabrication assembly line, where her duties included work
Discuss the validity and effect of each of the following situations:a. A, B, and C, manufacturers of radios, orally agree that due to the disastrous cutthroat competition in the market, they will
Discuss the validity of the following:a. A territorial allocation agreement between two manufacturers of the same type of products, whereby neither will sell its products in the area allocated to the
Universal Video sells 40 percent of the video recording equipment in the United States. One-half of Universal’s sales is to Giant Retailer, a company that possesses 50 percent of the retail market.
Z sells cameras to A, B, C, and D for $160 per camera. Y, one of Z’s competitors, sells a comparable camera to A for $148.50.Z, in response to this competitive pressure from Y, lowers its price to
Taylor Company produces 77 percent of the coal used in the United States. Coal provides 25 percent of the energy used in the United States. In a suit brought by the United States against Taylor for
Whirlpool Corporation manufactured vacuum cleaners under both its own name and under the Kenmore name. Oreck exclusively distributed the vacuum cleaners sold under the Whirlpool name. Sears, Roebuck
Indian Coffee of Pittsburgh, Pennsylvania, marketed vacuum-packed coffee under the Breakfast Cheer brand name in the Pittsburgh and Cleveland, Ohio, areas. Folger Coffee, a leading coffee seller,
Von’s Grocery, a large retail grocery chain in Los Angeles, sought to acquire Shopping Bag Food Stores, a direct competitor.At the time of the proposed merger, Von’s sales ranked third in the Los
Boise Cascade Corporation is a wholesaler and retailer of office products. The FTC issued a complaint charging that Boise had violated the Robinson-Patman Act by receiving a wholesaler’s discount
Great Atlantic and Pacific Tea Company desired to achieve cost savings by switching to the sale of “private label” milk.A&P asked Borden Company, its longtime supplier of “brand label” milk,
Clorox is the nation’s leading manufacturer of household liquid bleach (accounting for 49 percent—$40 million—of sales annually) and is the only brand sold nationally. Clorox and its next
The National Collegiate Athletic Association (NCAA) adopted a plan for televising college football games to reduce the adverse effect of television coverage on spectator attendance.The plan limited
During a period of a few years, intense price competition characterized both the retail and the wholesale oil markets. At times, prices in the wholesale market fell below the manufacturer’s cost.
Ingram is a Certified Public Accountant (CPA) employed by Jordan, Keller, and Lane, CPAs, to audit Martin Enterprises, Inc., a fast-growing service firm that went public two years ago. The financial
Girard & Company, CPAs, audited the financial statements included in the annual report submitted by PMG Enterprises, Inc., to the Securities and Exchange Commission (SEC). The audit failed to detect
Dryden, a certified public accountant, audited the books of Elixir, Inc., and certified incorrect financial statements in a form that was filed with the Securities and Exchange Commission. Shortly
The accounting firm of T, W & S was engaged to perform an audit of Progate Manufacturing Company. During the course of its investigation, T, W & S discovered that the company had overvalued its
J, B & J, CPAs, has audited the Highcredit Corporation for the past five years. Recently, the Securities and Exchange Commission(SEC) has commenced an investigation of Highcredit for possible
On February 1, the Gazette Corporation hired Susan Sharp to conduct an audit of its books and to prepare financial statements for the corporation’s annual meeting on July 1.Sharp made every
Holtz Rubenstein Reminick, CPAs, audited year-end financial statements of Quality Food Brands, Inc., and related companies.Signature Bank, relying upon the audited financial reports prepared by Holtz
Brenda borrows $1,000 from Lincoln for one year, agreeing to pay Lincoln $200 in interest on the loan and to repay the loan in twelve monthly installments of $100. The contract that Lincoln provides
A consumer entered into an agreement with Rent-It Corporation for the rental of a television set at a charge of $17 per week. The agreement also provides that if the renter chooses to rent the set
Central Adjustment Bureau allegedly threatened Consumer with a lawsuit, service at his office, and attachment and sale of his property in order to collect a debt, although it did not intend to carry
Frank finds Thomas’s wallet, which contains many credit cards and Thomas’s identification. By using Thomas’s identification and VISA card, Frank goes on a shopping spree and runs up$5,000 in
Robert applies to Northern National Bank for a loan. Before granting the loan, Northern requests that Callis Credit Agency provide it with a credit report on Robert. Callis reports that three years
Colgate-Palmolive Co. produced a television advertisement that dramatically demonstrated the effectiveness of its Rapid Shave shaving cream. The ad purported to show the shaving cream being used to
Sears formulated a plan to increase sales of its top-of-the-line Lady Kenmore brand dishwasher. Sears’s plan sought to change the Lady Kenmore’s image without reengineering or making any
Onondaga Bureau of Medical Economics (OBME), a collection agency for physicians, sent the plaintiff, Seabrook, a letter demanding payment for a $198 physician’s bill. In addition to demanding
Greg Henson sold his Chevrolet Camaro Z-28 to his brother, Jeff Henson. To purchase the car, Jeff secured a loan with Cosco Federal Credit Union (Cosco). Soon thereafter, the car was stolen and Jeff
Ian Eisenberg and Chris Hebard formed Electronic Publishing Ventures, LLC (EPV) and its four subsidiaries: Cyberspace.com, LLC; Essex Enterprises, LLC; Surfnet Services, LLC; and Splashnet.net, LLC.
Seindenberg and Hutchinson (the site owners) leased a fouracre tract of land (the Bluff Road site) to a chemical manufacturing corporation (COCC). While the lease initially was for the sole purpose
The Environmental Protection Agency (EPA) administrator issued an order suspending the registration of the pesticides heptachlor and chlordane under the Federal Insecticide, Fungicide, and
The U.S. Department of the Interior filed an environmental impact statement (EIS) with regard to its proposal to lease approximately eighty tracts of submerged land, primarily located off the coast
The city of Fayetteville, Arkansas, received a National Pollutant Discharge Elimination System permit from the Environmental Protection Agency (EPA) for the discharge of sewage into a stream that
On October 20, 1999, a group of nineteen private organizations filed a rulemaking petition asking the Environmental Protection Agency (EPA) to regulate greenhouse gas emissions from new motor
Six U.S. manufacturers of broad-spectrum antibiotics derived a large percentage of their sales from overseas markets, including India, Iran, the Philippines, Spain, the Republic of Korea, Germany,
Nigeria, experiencing an economic boom due to exports of high-grade oil, embarked on an infrastructure development plan. Accordingly, Nigeria entered into at least 109 contracts with 68 suppliers for
A federal grand jury handed down an indictment naming as a defendant Nippon Paper Industries Co., Ltd. (NPI), a Japanese manufacturer of facsimile paper. The indictment alleged that five years
A, B, and C each stored five thousand bushels of yellow corn in the same bin in X’s warehouse. X wrongfully sold ten thousand bushels of this corn to Y. A contends that inasmuch as his five
Donna drove an automobile into Terry’s garage and requested him to make repairs for which the charge would be $125.Donna, however, never returned to get the automobile. Two months later, Carla saw
On June 1, Cain delivered his automobile to Barr, the operator of a repair shop, for necessary repairs. Barr put the car in his lot on Main Street. The lot, which is fenced on all sides except along
Seton in Phoenix, according to a contract with Rider in New York, ships to Rider goods conforming to the contract and takes from the carrier the bill of lading for a shipper’s order that Seton
Scarola purchased an automobile for value and without knowledge that it was stolen. After he insured the car with Insurance Company of North America (INA), the car was stolen once again. When INA
Mrs. Laval was a patient of Dr. Leopold, a practicing psychiatrist.Dr. Leopold shared an office with two associates practicing in the same field. No receptionist or other employee attended the
Plaintiff, Heath Benjamin (Benjamin), found more than$18,000 in currency inside the wing of an airplane. At the time of this discovery, State Central Bank (State) owned the plane and it was being
Calvin Klein, Ltd., a New York clothing company, had used the services of Trylon Trucking Corporation for more than three years, involving hundreds of shipments. After completing each carriage,
State and explain whether or not a trust is created in each of the following situations:a. A declares herself trustee of “the bulk of my securities” in trust for B.b. A, the owner of Blackacre,
Collins was trustee for the beneficiary Indolent under the will of Indolent’s father. Indolent, a middle-age doctor, gave little concern to the management of the trust fund, contenting himself with
Arnold executed a one-page will in which he devised his farm to Burton. Later, after a quarrel with Burton, Arnold wrote the words “I hereby cancel and revoke this will /s/ Arnold” in the margin
The validly executed will of John Dane contained the following provision: “I give and devise to my daughter, Mary, Redacre for and during her natural life and, at her death, the remainder to go to
Grace Peterson, a spinster then aged seventy-four, asked Chester Gustafson, a Minneapolis attorney, to draw a will for her. Gustafson, who had also probated Peterson’s sister’s estate, drew this
John Hobelsberger lived alone on his farm near Kranzburg, South Dakota. A grandniece, Phyllis Raml, and her husband, Ralph, lived on and operated a farm about two miles away.Hobelsberger and the
George Washington Croom died testate. In his will, Croom left various bequests of real and personal property to his children and a grandchild. In Item Eight of his will, Croom stated,“I leave
Roy Rand executed and delivered the following note to Sue Sims: “Chicago, Illinois, June 1, 2018; I promise to pay to Sue Sims or bearer, on or before July 1, 2018, the sum of $7,000.This note is
Anita and Barry were negotiating, and Anita’s attorney prepared a long and carefully drawn contract that was given to Barry for examination. Five days later and prior to its execution, Barry’s
William tells Carol that he paid $150,000 for his farm in 2011 and that he believes it is worth twice that at the present time.Relying upon these statements, Carol buys the farm from William for
Adler owes Perreault, a police captain, $500. Adler threatens Perreault that unless Perreault gives him a discharge from the debt, Adler will disclose the fact that Perreault has on several occasions
Harris owned a farm that was worth about $600 an acre. By false representations of fact, Harris induced Pringle to buy the farm at $1,500 an acre. Shortly after taking possession of the farm, Pringle
On February 2, Phillips induced Mallor to purchase from her fifty shares of stock in the XYZ Corporation for $10,000, representing that the actual book value of each share was $200. A certificate for
Decedent, Joan Jones, a bedridden, lonely woman, eighty-six years old, owned outright Greenacre, her ancestral estate. Biggers, her physician and friend, visited her weekly and was held in the
Dorothy and John Huffschneider listed their house and lot for sale with C. B. Property. The asking price was $165,000, and the owners told C. B. that the property contained 6.8 acres.Dean Olson, a
Christine Boyd was designated as the beneficiary of a life insurance policy issued by Aetna Life Insurance Company on the life of Christine’s husband, Jimmie Boyd. The policy insured against
Iverson owned Iverson Motor Company, an enterprise engaged in the repair and sale of Oldsmobile, Rambler, and International Harvester Scout automobiles. Forty percent of the business’s sales volume
On February 10, Mrs. Sunderhaus purchased a diamond ring from Perel & Lowenstein for $6,990. She was told by the company’s salesman that the ring was worth its purchase price, and she also received
Division West Chinchilla Ranch advertised on television that a five-figure income could be earned by raising chinchillas with an investment of only $3.75 per animal per year and only thirty minutes
At the time of her death Olga Mestrovic was the owner of a large number of works of art created by her late husband, Ivan Mestrovic, an internationally known sculptor and artist whose works were
Frank Berryessa stole funds from his employer, the Eccles Hotel Company. His father, W. S. Berryessa (Berryessa), learned of his son’s trouble and, thinking the amount involved was about $2,000,
Vernon and Janene Lesher agreed to purchase an eighteen-acre parcel of real property from the Strids with the intention of using it to raise horses. In purchasing the property, the Leshers relied on
a. Judy orally promises her daughter, Liza, that she will give her a tract of land for her home. Liza, as intended by Judy, gives up her homestead and takes possession of the land. Liza lives there
George owed Keith $800 on a personal loan. Neither the amount of the debt nor George’s liability to pay the $800 was disputed. Keith had also rendered services as a carpenter to George without any
On February 5, Devon entered into a written agreement with Gordon whereby Gordon agreed to drill a well on Devon’s property for the sum of $5,000 and to complete the well on or before April
Nancy owed Sharon $1,500, but Sharon did not initiate a lawsuit to collect the debt within the time period prescribed by the statute of limitations. Nevertheless, Nancy promises Sharon that she will
Anthony lends money to Frank, who dies without having repaid the loan. Frank’s widow, Carol, promises Anthony to repay the loan. Upon Carol’s refusal to pay the loan, Anthony brings suit against
The parties entered into an oral contract in June under which the plaintiff agreed to construct a building for the defendant on a time and materials basis, at a maximum cost of $56,146, plus sales
Taylor assaulted his wife, who then took refuge in Ms. Harrington’s house. The next day, Mr. Taylor entered the house and began another assault on his wife. Taylor’s wife knocked him down and,
Jonnel Enterprises, Inc., contracted to construct a student dormitory at Clarion State College. On May 6, Jonnel entered into a written agreement with Graham and Long as electrical contractors to
PLM, Inc., entered into an oral agreement with Quaintance Associates, an executive “headhunter” service, for the recruitment of qualified candidates to be employed by PLM. As agreed, PLM’s
Red Owl Stores told the Hoffman family that upon the payment of approximately $518,000, a grocery store franchise would be built for them in a new location. On the advice of Red Owl, the Hoffmans
The plaintiff, Brenner, entered into a contract with the defendant, Little Red School House, Ltd., which stated that in return for a nonrefundable tuition of $1,080, Brenner’s son could attend the
Rodney and Donna Mathis (Mathis) filed a wrongful death action against St. Alexis Hospital and several physicians, arising out of the death of their mother, Mary Mathis. Several weeks before trial,
Rafferty was the principal shareholder in Continental Corporation, and as a result, he received the lion’s share of Continental Corporation’s dividends. Continental Corporation was anxious to
Rowe was admitted to the hospital suffering from a critical illness.He was given emergency treatment and later underwent surgery. On at least four occasions, Rowe’s two sons discussed with the
Ames, Bell, Cain, and Dole each orally ordered LCD (liquid crystal display) televisions from Marvel Electronics Company, which accepted the orders. Ames’s television was to be encased in a
Moriarity and Holmes enter into an oral contract by which Moriarity promises to sell and Holmes promises to buy Blackacre for $10,000. Moriarity repudiates the contract by writing a letter to Holmes
On March 1, Lucas called Craig on the telephone and offered to pay him $90,000 for a house and lot that Craig owned. Craig accepted the offer immediately on the telephone. Later in the same day,
Blair orally promises Clay to sell him five crops of potatoes to be grown on Blackacre, a farm in Idaho, and Clay promises to pay a stated price for them on delivery. Is the contract
Rachel leased an apartment to Bertha for a one-year term beginning May 1, at $800 a month, “payable in advance on the first day of each and every month of said term.” At the time the lease was
Amos orally agrees to hire Elizabeth for an eight-month trial period. Elizabeth performs the job magnificently, and after several weeks Amos orally offers Elizabeth a six-month extension at a salary

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