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business
business law principles

Questions and Answers of Business Law Principles

If Jarrell had simply invested in K & M, but was not a co-owner and did not interact with Conerly, how might this have affected the outcome of this case?
Samsung Telecommunications America, LLC, makes Galaxy phones. Daniel Norcia bought a Galaxy S4 in a Verizon store in San Francisco, California. A Verizon employee opened the box, unpacked the phone,
1. Suppose that Buck had completely fixed the truck by the fourth time it was tendered. Could All the Way continue to reject delivery of the truck? Why or why not?2. What provisions might the parties
Does the Supreme Court’s decision in South Dakota v. Wayfair, Inc., make it more or less likely that Congress will enact legislation that requires out-of-state corporations to collect and pay taxes
1. Suppose that the parties admitted that they had agreed Kastalon would store the rolls for up to one year. How would this have affected the court’s decision on breach of contract?2. Was it
1. Generally, a broker who only arranges for shipment is not liable for damage or loss to goods during their transport. Why did TQL decide to pay C&C for the cost of the damage to the granite?
Suppose a court rules that Arby’s weak point-of-sale security system does constitute a breach of its contract. What might be some of the compensatory damages due to Arby’s customers who had their
1. The lease between RRE and Chalk Supply required a security deposit to cover any default on a month’s rent by the tenant. Chalk Supply did not pay the deposit. Should the court have ruled that
1. What might explain the difference between Razack’s estimate and the district court’s award of Red Square’s lost profits for the delay in the delivery of the truck? Discuss.2. Instead of
Josh pays AcademicShark.com $50 for an essay on the biblical references in Moby Dick. The website promises “a top-notch grade” and includes a disclaimer as described above. Josh hands in the Moby
1. In most cases involving the interpretation and application of a contract, a party is not allowed to present evidence outside the document expressing the parties’ agreement. Why not?2. Suppose
Renee Beaver started racing go-karts competitively in 2017, when she was fourteen. Many of the races required her to sign an exculpatory clause to participate. She or her parents regularly signed
1. What “legitimate business interests” justify the enforcement of a non-compete provision?2. What sort of harm, particularly in Kennedy’s situation, would support a court’s refusal to
1. As a principle of contract interpretation, courts consistently strive to interpret contracts in accord with common sense. Does the application of this principle to the facts in this case support
Kerin sends a letter to Joli telling her that he has a book to sell at a certain price. Joli signs and returns the letter. When Kerin delivers the book, Joli sends it back, claiming that they do not
1. The lottery’s rules did not provide for entrants to be notified by e-mail, but contracts generally impose on the parties a duty to do everything necessary to carry them out. Did the lottery
1. Could Crabtree have successfully avoided her conviction by arguing that her only “crime” was “naively trusting her co-workers?” Why or why not?2. It seems reasonable to assume that one of
Dana takes her roommate’s credit card, intending to charge expenses that she incurs on a vacation. Her first stop is a gas station, where she uses the card to pay for gas. With respect to the gas
Despite Bitcoin’s oversized presence on the dark web, only about 1 percent of all transactions using the cryptocurrency involve an illegal exchange of goods. How does this fact impact arguments in
If LoL is free to players, why would a Chinese company want to copy it?
1. Should an ISP be liable for copyright infringement by its subscribers regardless of whether the ISP is aware of the violation? Why or why not?2. Could Cox legitimately claim that it had no
Eagle Corporation began marketing software in 2010 under the mark “Eagle.” In 2019, Eagle.com, Inc., a different company selling different products, begins to use eagle as part of its URL and
1. Is a violation of an individual’s right to privacy, without more, enough to sustain a legal cause, or should additional consequences be required to maintain an action? Explain.2. Should Facebook
1. Rimini argued that Oracle was misusing the copyright in its proprietary software to stifle competition. Do you agree? Explain.2. Suppose that Rimini had bought one of Oracle’s licenses for
1. Accompanying LEGO’s registration of its copyright are images depicting “Basic Minifigures.” Rather than these images, the district court compared ZURU’s Action Figures to actual LEGO
1. In the initial trial, should the jury have found that O’Bryan was also at fault? How might this finding have affected the award of damages? Explain.2. During voir dire, a potential juror asked
Security engineers discovered that faulty coding in the Chrysler Jeep’s entertainment software made the car vulnerable to cyberattacks, conceivably enabling hackers to gain control of the vehicles.
1. What marketing tool did Watson gain by inflating its AWPs?2. Watson argued that AWP was a “term of art” in the pharmaceutical industry that meant “suggested price.” Suppose that the court
1. After a school shooting, Dick’s Sporting Goods stopped selling certain firearms at its stores. What are the potential benefits and drawbacks of this form of corporate social
1. Should the cost of corrective discovery efforts be imposed on an uncooperative party if those efforts turn up nothing of real value to the case? Explain.2. Should it be inferred from a
1. Should an appellate court’s review of the amount of damages awarded at trial be subject to the principle that limits appellate review of other evidence? Why or why not?2. A judge or a jury can
Lexi contracts with Theo to deliver a quantity of computers to Lexi’s Computer Store. They disagree over the amount, the delivery date, the price, and the quality. Lexi files a suit against Theo in
In our connected world, is there any way a defendant could avoid service of process via social media?
For a federal district court to hear a case, the “amount in controversy” must be at least $75,000. Jones paid $5,000 for the motor and $304 in freight charges. What other losses or injuries might
Tim Cook, Apple’s chief operating officer, has suggested that the United States Congress should pass a law limiting the ability of Apple and other tech countries to keep consumer data private. Why
1. What “dangerous conditions” might have prompted the city to enact the ordinances at issue in this case? Why?2. What is the likely economic impact of the ordinances on the businesses in the
One observer has said that the American legal system should evaluate social media companies based on how “they affect us as citizens, not only [on how] they affect us as consumers.” What is your
Discuss the three factors the court examines to determine whether to discharge the student loans.Bryan Anthony Looper (Debtor) had over $300,000 in student loans that were used to finance his
Can a murderer inherit property from his victim? Why or why not?
1. Describe the factual situation that led to the odd circumstances of how the slayer stood to gain the decedent’s property.2. What argument is made that there may not be a good line to draw on
1. What was the relationship of the testator to Taylor? What were his family relationships like?2. What factors are considered when determining whether there was undue influence?3. What does the
1. Applying the laws of intestacy and wills, why do you think Ann wanted the will admitted to probate?2. What lessons does this case provide on the importance of witnesses to a will? Of the notarized
1. What evidence was important for the court to have to conclude that Patricia Watson lacked capacity?2. Is a lack of capacity required for the particular day that documents are executed or does the
Charles leased a house from Donald for four years. The rent agreed on was $850 per month. After two years, Charles assigned his rights under the lease to Smith, who moved in and paid rent regularly
During the remodeling of an apartment building, tenants had so much dust from the construction settle in their apartment that they experienced damage to their expensive sound and recording equipment.
Sue A. Merrill injured her right shoulder when she fell as she was ascending the front steps leading to the porch and front door of the mobile home that her daughter, Sherri Pritchard, rented from
Rod had a five-year lease in a building owned by Darwood and had agreed to pay $800 a month rent. After two years, Rod assigned his rights under the lease to Kelly. Kelly moved in and paid the rent
Johnny C. Carpenter and Harvey E. Hill died of asphyxiation when a fire broke out in their Hattiesburg, Mississippi, apartment on the morning of February 20, 1983. There were no smoke detectors in
1. List the three areas a court must review before imposing liability on a landlord for a criminal act by a third party on a tenant.2. What lessons on security precautions should landlords take away
1. List the issues that mitigate the landlord’s liability even though there is a breach of the warranty of habitability.2. What lessons should landlords and tenants learn from this case?Geoffrey
1. Why was it important to have landlord eviction rights in public housing regardless of the tenant’s knowledge?2. Why is drug dealing targeted by the statute for automatic eviction?3. Why are
1. Why is the ordinance not a violation of the First Amendment?2. What legitimate government interest(s) is/are satisfied with the prohibition on tattoo parlors? Does it matter that 33 percent of the
1. Did Spur create a nuisance?2. Should it make any difference that Spur was there first?3. How does the court balance retirement communities and beef production, which are two of Arizona’s biggest
1. Is habitat modification harming endangered species?2. Does the Court’s interpretation mean no intent is required to violate ESA?3. Did Congress intend to give the secretary authority to shut
1. Where do you think the term “arranger” fits in the categories of those who are responsible for cleanup costs under CERCLA?2. What do you think the practical effect of this decision will be on
O conveys property to A on December 1, 2015. O conveys the same property to B who does not know about A and who records his deed on December 2, 2015. O then conveys the same property to C. Who has
What is the relationship between trespass and adverse possession?
1. What is different from this case and a case in which property is taken for a freeway?2. What is the concern of the dissent about the decision?3. Why does the majority state that the courts should
1. Explain the series of transactions in the same land.2. Discuss the effect of constructive notice on the court’s decision.3. What should buyers of property learn from this decision?In January
1. What change does the court make in the duty classifications?2. What does the dissent say about duty in the case?3. What precautions would landowners have to take as a result of this decision?On
1. List the fixtures and the court’s finding with each one and why.2. What factors does the court use in reaching its conclusions on the removed items?Denny Ryerson (Debtor) filed his Chapter 11
1. Who owns the dominant easement estate?2. Who owns the servient easement estate?3. Explain the precedent on easement barriers and the court’s requirements for proof of unreasonable interference
1. Based on your sense of fair play and justice, does it sound “right” or sensible to think that one officer, while still employed by her employer, could arrange to recruit all 40 of her
1. Is a director or officer of a corporation totally barred from pursuing corporate opportunities?2. What, if anything, is wrong with Telemachus setting up his sister Ann as owner of the Seabrook
1. Did the court hold that the business judgment rule shielded the directors from personal liability in this case?2. Upon what facts did the court rely in reaching its decision in this case?3. State
1. Explain the business judgment rule.2. Did the court approve of CEO Eisner’s management practices?3. When it becomes evident to shareholders that the directors approved the hiring of a president
1. Give some examples of “turning points” or events when KPMG should have acted differently.2. Describe the level of accounting errors at Xerox from 1997 through 2001.3. Why do you think the
1. Describe the types of accounting irregularities that were going on at Papel.2. What is the significance of the term “engagement” in the opinion?3. Where does New Jersey fit with regard to
1. How much contact did Smith have with Dewar?2. Explain the options that Smith had when Beddall changed the address and forbade further communication about the return.3. List the things that
1. What breach of duty did Mr. Barker commit?2. How did the Sumralls establish that breach of duty and their damages?3. What lessons should accountants learn from this case?We can’t say exactly
1. Identify and explain the two types of insider training liability under Rule 10b-5.2. Explain how O’Hagen violated Rule 10b-5.3. What is the purpose behind the “misappropriation theory” of
1. State the SEC’s theory of tippee liability. Would such a theory have an inhibiting influence on the role of market analysts?2. When is a tippee subject to a fiduciary duty to the shareholders
1. Assess Matrixx’s position that reports of adverse events associated with a pharmaceutical company’s products cannot be “material,” absent a sufficient number of reports to establish a
1. What was the legislative philosophy underlying the adoption of the extensive disclosure requirements of the 1934 act?2. What is the standard of materiality to be applied in a merger-related
1. ETS argued that the arrangement involved commercial equipment leases, not securities. Did Congress intend to cover the leases under the securities laws?2. Is it fair to say that investments
1. What is meant by the remedy of piercing the corporate veil?2. In the history of the doctrine, what terms have been used to capture the concept of loss of separate corporate existence?Inter-Tel is
1. What is the purpose of Rule 23.1?2. Did the stockholder plaintiffs usurp the board’s right to manage the affairs of the corporation in this case?Plaintiff stockholders sued derivatively CEO
1. What is the attorney-client privilege?2. Can a corporation protect its documents by asserting attorney-client privilege?3. What did the shareholder (IBEW) have to prove to have access to the
1. What did the plaintiff contend?2. Can a shareholder who is also an officer and director of a corporation lawfully obtain a premium for selling controlling interest in a corporation?3. State the
The Community Youth Center (CYC) Corporation failed to pay its annual registration fee in 2000 and was automatically dissolved by the state corporation commission. CYC continued to operate and held
1. Summarize the facts of this case.2. State the applicable rule of law.The Orleans Parish School Board (“School Board”) in New Orleans, Louisiana, hired Johnson & Higgins, Inc. (J&H), in
1. Why were dissenters’ rights statutes enacted?2. What does “fair value” mean, and how is it determined?3. Do you believe that TFL’s expert attempted to fairly value the stock, or did he
1. This contract was between friends. Do you think that Crozier expected that Sauers would be personally liable for repayment of the loan?2. Can Crozier sue T & M Corp. for repayment of the
1. How did this case come to be heard before the state’s supreme court?2. What public policy reason(s), if any, exists to create separate standards for LLC veil piercing versus corporate veil
1. Did the LLC agreement incorporate a core element of the traditional fiduciary duty of loyalty?2. What is the purpose of the enforcement of a duty of loyalty?3. Was not the manager free to utilize
1. Explain who Hansen is suing and why.2. The court refers to this case as one of first impression in South Carolina. It subsequently refers to the “prevailing rule.” How can the case be one of
1. What arguments can you present in defense of Della Ratta’s actions in this case?2. Maryland is an RUPA state. Explain the use of the terms dissociation, dissolution, and winding up in this
1. Did it make a difference in this case that the partnership was not in writing?2. What would Gelman argue was the particular undertaking to be achieved? Do you think his argument has any
1. Why did his employer tell Rhodes that he was being terminated because of a RIF, and why did the supervisor Snyder place a memo in Rhodes’s file about lacking expertise in downhole operations?2.
1. Describe the formation of the joint venture between Drs. Kurwa and Kislinger.2. What is meant by the statement “Dr. Kislinger unilaterally terminated the joint venture”?3. Did the two doctors
1. Which laws did the court consider in deciding this case? Is there a conflict between the laws?2. Was it critical to the court’s determination that the franchise agreement contained language
1. Was Roberts an actual agent of McDonald’s Corporation?2. Did McDonald’s Corporation make objective manifestations leading Mr. Street to reasonably believe that his daughter worked for
1. Is it the law that individuals must be aware of their status as “partners” in order to have a legal partnership?2. In a footnote to the state supreme court’s decision, the court reported
1. Explain “joint liability” and “joint and several” liability in the context of the facts of this case.2. Speculate on why PNC Bank was so interested in having the court apply joint and
1. Did Johnson Controls’ “fetal-protection policy” discriminate against women?2. JCI’s policy was adopted only after eight employees became pregnant but maintained blood lead levels exceeding
1. Why are incontestability clauses placed in life insurance contracts?2. Do incontestability clauses work to the mutual advantage of the insurer and the insured?3. Express your opinion on whether or
1. What type of insurance policies did Royal Catering Co. purchase from American State Insurance Co. and Travelers Property Casualty Co.?2. After reviewing the language of both policies applied to
1. Did the Lelands present sufficient evidence to support damages for mental anguish in this case?2. What purpose is served by the state statute that provided for a penalty of two times the actual
1. Did Graves have an insurable interest in the life of Norred following the discontinuance of the partnership?2. Was Graves required to remit the proceeds of the insurance to Norred’s estate?3.
1. What is the key element to the court in protecting Bronk’s investments in the college plans?2. Why does the trustee lose the argument on Internal Revene Code qualification for the

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