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business law legal environment

Questions and Answers of Business Law Legal Environment

In 1967, large oil reserves were discovered in the Prudhoe Bay area of Alaska. As a result, state revenues increased from$124 million in 1969 to $3.7 billion in 1981. In 1980, the state legislature
The Public Service Commission of State X issued a regulation completely banning all advertising that “promotes the use of electricity” by any electric utility company in State X. The commission
State Z enacted a Private Pension Benefits Protection Act requiring private employers with one hundred or more employees to pay a pension funding charge for terminating a pension plan or closing an
Iowa enacted a statute prohibiting the use of sixty-five-foot double-trailer-truck combinations. All the other midwestern and western states permit such trucks to be used on their roads. Despite
A Massachusetts statute established differential methods by which wineries can distribute wines in the state. The statute allows only“small” wineries, defined as those producing 30,000 gallons or
The Penguin intentionally hits Batman with his umbrella. Batman, stunned by the blow, falls backward, knocking Robin down. Robin’s leg is broken in the fall, and he cries out, “Holy broken bat
CEO was convinced by his employee, M. Ploy, that a coworker, A. Cused, had been stealing money from the company. At lunch that day in the company cafeteria, CEO discharged Cused from her employment,
Ralph kisses Edith while she is asleep but does not waken or harm her. Edith sues Ralph for battery. Has a battery been committed? Explain.
Claude, a creditor seeking to collect a debt, calls on Dianne and demands payment in a rude and insolent manner. When Dianne says that she cannot pay, Claude calls Dianne a deadbeat and says that he
Lana, a ten-year-old child, is run over by a car negligently driven by Mitchell. Lana, at the time of the accident, was acting reasonably and without negligence. Clark, a newspaper reporter,
The Saturday Evening Post featured an article entitled “The Story of a College Football Fix,” characterized in the subtitle as “A Shocking Report of How Wally Butts and Bear Bryant Rigged a
A patient confined in a hospital, Joan, has a rare disease that is of great interest to the public. Carol, a television reporter, requests Joan to consent to an interview. Joan refuses, but Carol,
Owner has a place on his land where he piles trash. The pile has been there for three months. John, a neighbor of Owner, without Owner’s consent or knowledge, throws trash onto the trash pile.
Chris leaves her car parked in front of a store. There are no signs that say Chris cannot park there. The storeowner, however, needs the car moved to enable a delivery truck to unload.He releases the
Carr borrowed John’s brand-new Ford for the purpose of going to the store. He told John he would be right back. Carr then decided, however, to go to the beach while he had the car. Can John recover
National Bond and Investment Company sent two of its employees to repossess Whithorn’s car after he failed to complete the payments. The two repossessors located Whithorn while he was driving his
William Proxmire, a U.S. senator from Wisconsin, initiated the “Golden Fleece of the Month Award” to publicize what he believed to be wasteful government spending. The second of these awards was
Capune was attempting a trip from New York to Florida on an eighteen-foot-long paddleboard. The trip was being covered by various media to gain publicity for Capune and certain products he endorsed.
Ralph Nader, who has been a critic of General Motors Corp.for many years, claims that when General Motors learned that Nader was about to publish a book entitled Unsafe at Any Speed, criticizing one
Lemmie L. Ruffin, Jr., was an Alabama licensed agent for Pacific Mutual Life Insurance and for Union Fidelity Life Insurance Company. Union wrote group health insurance policies for municipalities,
Debra Agis was a waitress in a restaurant owned by the Howard Johnson Company. On May 23, Roger Dionne, manager of the restaurant, called a meeting of all waitresses at which he informed them
Pro Golf Manufacturing, Inc., manufactures and repairs golf equipment as well as gives golf lessons. On September 27, the Tribune Review newspaper published an article stating that several historic
A statute that requires railroads to fence their tracks is construed as intended solely to prevent injuries to animals straying onto the right-of-way. B & A Railroad Company fails to fence its
Martha invites John to come to lunch. Martha knows that her private road is dangerous to travel, having been heavily eroded by recent rains. She doesn’t warn John of the condition, reasonably
Nathan is run over by a car and left lying in the street. Sam, seeing Nathan’s helpless state, places him in his car for the purpose of taking him to the hospital. Sam drives negligently into a
A statute requires all vessels traveling on the Great Lakes to provide lifeboats. One of Winston Steamship Company’s boats is sent out of port without a lifeboat. Perry, a sailor, falls overboard
Lionel is negligently driving an automobile at excessive speed.Reginald’s negligently driven car crosses the center line of the highway and scrapes the side of Lionel’s car, damaging its
Ellen, the owner of a baseball park, is under a duty to the entering public to provide a reasonably sufficient number of screened seats to protect those who desire such protection against the risk of
CC Railroad is negligent in failing to give warning of the approach of its train to a crossing and thereby endangers Larry, a blind man who is about to cross. Mildred, a bystander, in a reasonable
Timothy keeps a pet chimpanzee that is thoroughly tamed and accustomed to playing with its owner’s children. The chimpanzee escapes, despite every precaution to keep it on the owner’s premises.
Hunn injured herself when she slipped and fell on a loose plank while walking down some steps. The night before, while entering the hotel, she had noticed that the steps were dangerous, and although
Led Foot drives his car carelessly into another car. The second car contains dynamite, a fact that Led had no way of knowing.The collision causes an explosion that shatters a window of a building
Two-year-old David Allen was bitten by Joseph Whitehead’s dog while he was playing on the porch at the Allen residence.Allen suffered facial cuts, a severed muscle in his left eye, a hole in his
Joseph Yania, a coal strip-mine operator, and Boyd Ross visited a coal strip-mining operation owned by John Bigan to discuss a business matter with Bigan. On Bigan’s property, there were several
Owen telephones an order to Hillary’s store for certain goods, which Hillary delivers to Owen. Nothing is said by either party about price or payment terms. What are the legal obligations of Owen
Jonathan writes to Willa, stating, “I’ll pay you $150 if you reseed my lawn.” Willa reseeds Jonathan’s lawn as requested.Has a contract been formed? If so, what kind? Explain.
St. Charles Drilling Co. contracted with Osterholt to install a well and water system that would produce a specified quantity of water. The water system failed to meet its warranted capacity, and
Helvey brought suit against the Wabash County REMC(REMC) for breach of implied and express warranties. He alleged that REMC furnished electricity in excess of 135 volts to Helvey’s home, damaging
Jack Duran, president of Colorado Carpet Installation, Inc., began negotiations with Fred and Zuma Palermo for the sale and installation of carpeting, carpet padding, tile, and vinyl floor covering
On November 1, the Kansas City Post Office Employees Credit Union merged with the Kansas City Telephone Credit Union to form the Communications Credit Union (Credit Union).Systems Design and
Insul-Mark is the marketing arm of Kor-It Sales, Inc. Kor-It manufactures roofing fasteners, and Insul-Mark distributes them nationwide. In late 1985, Kor-It contracted with Modern Materials, Inc.,
In March, William Tackaberry, a real estate agent for the firm of Weichert Co. Realtors (Weichert), informed Thomas Ryan, a local developer, that he knew of property Ryan might be interested in
Kasch and his brother owned M.W. Kasch Co. Kasch hired Skebba as a sales representative and over the years promoted him first to account manager; then to customer service manager, field sales
Hannaford is a national grocery chain whose electronic payment processing system was breached by hackers as early as December 7, 2007. The hackers stole up to 4.2 million credit and debit card
Ames, seeking business for his lawn maintenance firm, posted the following notice in the meeting room of the Antlers, a local lodge: “To the members of the Antlers—Special this month. I will
Alpha Rolling Mill Corporation (Alpha Corporation), by letter dated June 8, offered to sell Brooklyn Railroad Company(Brooklyn Company) two thousand to five thousand tons of fifty-pound iron rails on
On May 1, Melforth Realty Company offered to sell Greenacre to Dallas, Inc., for $1 million. The offer was made by a letter sent by overnight delivery and stated that the offer would expire on May
Rowe advertised in newspapers of wide circulation and otherwise made it known that she would pay $5,000 for a complete set, consisting of ten volumes, of certain rare books. Ford, not knowing of the
Small, admiring Jasper’s watch, asked Jasper where and at what price he had purchased it. Jasper replied, “I bought it at West Watch Shop about two years ago for around $85.00, but I am not
On November 19, Hoover Motor Express Company sent to Clements Paper Company a written offer to purchase certain real estate. Sometime in December, Clements authorized Williams to accept the offer.
The Brewers contracted to purchase Dower House from McAfee.Then, several weeks before the May 7 settlement date for the purchase of the house, the two parties began to negotiate for the sale of
The Thoelkes were owners of real property located in Florida, which the Morrisons agreed to purchase. The Morrisons signed a contract for the sale of that property and mailed it to the Thoelkes in
Lucy and Zehmer met while having drinks in a restaurant.During the course of their conversation, Lucy apparently offered to buy Zehmer’s 471.6-acre farm for $50,000 cash.Although Zehmer claims that
On July 31, Lee Calan Imports advertised a used Volvo station wagon for sale in the Chicago Sun-Times. As part of the information for the advertisement, Lee Calan Imports instructed the newspaper to
On May 20, cattle rancher Oliver visited his neighbor Southworth, telling him, “I know you’re interested in buying the land I’m selling.” Southworth replied, “Yes, I do want to buy that
The Cornillies listed a home for sale with a real estate agent.Patrick and Anne Giannetti offered $155,000 for the home and submitted a deposit in the amount of $2,500. The Cornillies countered this
Wilkins, a Texas resident licensed by that state as a certified public accountant (CPA), rendered service in his professional capacity in Louisiana to Coverton Cosmetics Company. He was not
Michael is interested in promoting the passage of a bill in the state legislature. He agrees with Christy, an attorney, to pay Christy for her services in writing the required bill, obtaining its
Anthony promises to pay McCarthy $100,000 if McCarthy reveals to the public that Washington is a communist. Washington is not a communist and never has been. McCarthy successfully persuades the media
The Dear Corporation was engaged in the business of making and selling harvesting machines. It sold everything pertaining to its business to the HI Company, agreeing “not again to go into the
Charles Leigh, engaged in the industrial laundry business in Central City, employed Tim Close, previously employed in the home laundry business, as a route salesperson. Leigh rents linens and
On July 5, 2018, Bill and Donald entered into a bet on the outcome of the 2018 congressional election. On January 28, 2019, Bill, who bet on the winner, approached Donald, seeking to collect the
Carl, a salesperson for Smith, comes to Benson’s home and sells him a complete set of “gourmet cooking utensils” that are worth approximately $300. Benson, an eighty-year-old man who lives
Consider the facts in Question 8 but assume that the price was$350. Assume further that Benson wishes to avoid the contract based on the allegation that Carl befriended and tricked him into the
Adrian rents a bicycle from Barbara. The bicycle rental contract Adrian signed provides that Barbara is not liable for any injury to the renter caused by any defect in the bicycle or the negligence
Emily was a Java programmer employed with Sun Microsystems in Palo Alto, California. Upon beginning employment, Emily signed a contract that included a noncompete clause that prevented her, within
Merrill Lynch employed Post and Maney as account executives.Both men elected to be paid a salary and to participate in the firm’s pension and profit-sharing plans rather than take a straight
Tovar applied for the position of resident physician in Paxton Community Memorial Hospital. The hospital examined his background and licensing and assured him that he was qualified for the position.
Carolyn Murphy, a welfare recipient with very limited education and with four minor children, responded to an advertisement that offered the opportunity to purchase televisions without a deposit or
Universal City Studios, Inc. (Universal) entered into a general contract with Turner Construction Company (Turner) for the construction of the Jurassic Park ride. Turner entered into a subcontract
Sanchez and Western Pizza are parties to an undated arbitration agreement. The agreement states that (1) the execution of the agreement “is not a mandatory condition of employment”;(2) any
You have an employee who has a chemical imbalance in the brain that causes him to be severely unstable. The medication that is available to deal with this schizophrenic condition is extremely
You have a very shy employee who is from another country.After a time, you notice that the quality of her performance is deteriorating. You find an appropriate time to speak with her and determine
You receive a telephone call from a company you never do business with requesting a reference on one of your employees, Mary Sunshine. You believe Mary performs in a generally incompetent manner, and
You and Joe Jones, your neighbor and friend, bought lottery tickets at the corner drugstore. While watching the lottery drawing on television with you that night, Joe leaped from the couch, waved his
Omega, Inc., a publicly held corporation, has assets of $100 million and annual earnings in the range of $13 to $15 million.Omega owns three aluminum plants, which are profitable, and one plastics
You are the sales manager of a two-year-old electronics firm. At times, the firm has seemed on the brink of failure, but recently it has begun to be profitable. In large part, the profitability is
Major Company subcontracted the development of part of a large technology system to Start-up Company, a small corporation specializing in custom computer systems. The contract, which was a major
A customer requested certain sophisticated tests on equipment he purchased from your factory. Such tests are very expensive and must be performed by a third party. The equipment was tested as
You are a project manager for a company making a major proposal to a Middle Eastern country. Your major competition is from Japan.a. Your local agent, who is closely tied to a very influential
A company prohibits any employee from making disparaging comments about the company through any social media, including online blogs, email, and other electronic media.Violation of this rule is
State Senator Bowdler convinced the legislature of State Z to pass a law requiring all professors to submit their class notes and transparencies to a board of censors to be sure that no
While driving his car in Virginia, Carpe Diem, a resident of North Carolina, struck Butt, a resident of Alaska. As a result of the accident, Butt suffered more than $80,000 in medical expenses. Butt
Sam Simpleton, a resident of Kansas, and Nellie Naive, a resident of Missouri, each bought $85,000 in stock at local offices in their home states from Evil Stockbrokers, Inc. (Evil), a business
The Supreme Court of State A ruled that, under the law of State A, pit bull owners must either keep their dogs fenced or pay damages to anyone bitten by the dogs. Assess the accuracy of the following
The Supreme Court of State G decided that the U.S. Constitution requires professors to warn students of their right to remain silent before questioning the students about cheating.This ruling
Thomas Clements brought an action in a court in Illinois to recover damages for breach of warranty against defendant Signa Corporation. (A warranty is an obligation that the seller of goods assumes
Mark Womer and Brian Perry were members of the U.S. Navy and were stationed in Newport, Rhode Island. On April 10, Womer allowed Perry to borrow his automobile so that Perry could visit his family in
Mariana Deutsch worked as a knitwear mender and attended a school for beauticians. The sink in her apartment collapsed on her foot, fracturing her big toe and making it painful for her to stand. She
Kenneth Thomas brought suit against his former employer, Kidder, Peabody & Company, and two of its employees, Barclay Perry and James Johnston, in a dispute over commissions on sales of securities.
Llexcyiss Omega and D. Dale York, both residents of Indiana, jointly listed a Porsche automobile for sale on eBay. The listing stated that the vehicle was located in Indiana and that the winning
An administrative agency’s policymaking function is known as _________.a. Publicationb. Investigationc. Rulemakingd. Licensing
Which of the following is not a source of administrative law?a. Rulemaking Control Actb. U.S. Constitutionc. Enabling statutesd. Administrative Procedures Act
Both the proposed rule and the final rule are published in the _________ _________.a. National Noticeb. Administrative Timesc. Federal Registerd. Rulemaking Register
Many agencies have the authority to adjudicate matters. Which of the following carry out the adjudication function?a. Common pleas judgesb. Administrative law judgesc. Board of appealsd. Departmental
Challenging a rule through judicial review on the basis of Motor Vehicle Manufacturing Association v. State Farm requires evidence that agencies actions were _________ and _________.a. Arbitrary and
When a company engages in blatantly anticompetitive behavior, which standard will a court use in a Sherman Act analysis?a. Per seb. Rule of reasonc. Behaviorald. Monopoly
Willie’s Widgets Corporation agrees with Widgets R Us, Inc., that Willie’s will sell widgets only in the eastern part of the state if Widgets R Us agrees to sell widgets only in the western part
Famous Footwear Company manufactures highend shoes. It institutes a rule that any retailer who sells the shoes for under $500 will be cut off from any additional purchasing from Famous Footwear.Which
The Sherman Act prohibits the use of ____ power to create an anticompetitive market in a particular industry.a. Horizontalb. Verticalc. Structurald. Monopoly

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