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business
business law principles

Questions and Answers of Business Law Principles

41.1 Title VII Violations. Discuss fully whether any of the following actions would constitute a violation of Title VII of the 1964 Civil Rights Act, as amended. 1 Tennington, Inc., is a consulting
3 What defenses might Gil’s current employer raise if Gil sues for age discrimination?
2 Suppose that Gil leaves his current position and applies for a job at another firm. The prospective employer refuses to hire him based on his age. What would Gil have to prove to establish a prima
1 In the video, Gil (Steve Martin) threatens to leave his job when he discovers that his boss is promoting another person to partner instead of him. His boss (Dennis Dugan) laughs and tells him that
41.11 Video Question. Go to this text’s Web site at www. cengage.com/blaw/blt and select “Chapter 41.” Click on “Video Questions” and view the video titled Parenthood. Then answer the
41.10 Critical Legal Thinking. Why has the federal government limited the application of the statutes discussed in this chapter to firms with a specified number of employees, such as fifteen or
41.9 A Question of Ethics. Titan Distribution, Inc., employed Quintak, Inc., to run its tire mounting and distribution operation in Des Moines, Iowa. Robert Chalfant worked for Quintak as a
41.8 Discrimination Based on Gender. The Milwaukee County Juvenile Detention Center started a new policy that required each unit of the facility to be staffed at all times by at least one officer of
41.7 Discrimination Based on Disability. Cerebral palsy limits Steven Bradley’s use of his legs. He uses forearm crutches for short-distance walks and a wheelchair for longer distances. Standing
41.6 Case Problem with Sample Answer. Kimberly Cloutier began working at the Costco store in West Springfield, Massachusetts, in July 1997. Cloutier had multiple earrings and four tattoos, but no
41.5 Discrimination Based on Age. The United Auto Workers (UAW) is the union that represents the employees of General Dynamics Land Systems, Inc. In 1997, a collective bargaining agreement between
41.4 Discrimination Based on Disability. PGA Tour, Inc., sponsors professional golf tournaments. A player may enter in several ways, but the most common method is to successfully compete in a
41.3 Religious Discrimination. Mary Tiano, a devout Roman Catholic, worked for Dillard Department Stores, Inc., (Dillard’s) in Phoenix, Arizona. Dillard’s considered Tiano a productive employee
41.2 Hypothetical Question with Sample Answer. Chinawa, a major processor of cheese sold throughout the United States, employs one hundred workers at its principal processing plant. The plant is
41.1 Title VII Violations. Discuss fully whether any of the following actions would constitute a violation of Title VII of the 1964 Civil Rights Act, as amended. 1 Tennington, Inc., is a consulting
5 What are three defenses to claims of employment discrimination?
4 What federal acts prohibit discrimination based on age and discrimination based on disability?
3 What remedies are available under Title VII of the 1964 Civil Rights Act, as amended?
2 What is the difference between disparate-treatment discrimination and disparate-impact discrimination?
1 Generally, what kind of conduct is prohibited by Title VII of the Civil Rights Act of 1964, as amended?
40.11 Video Question. Go to this text’s Web site at www.cengage.com/blaw/blt and select “Chapter 40.” Click on “Video Questions” and view the video titled Employment at Will. Then answer
40.10 Critical Legal Thinking. Employees have a right to privacy, but employers also have a right to create and maintain an efficient and safe workplace. Do you think that existing laws strike an
40.9 A Question of Ethics. Beverly Tull had worked for Atchison Leather Products, Inc., in Kansas for ten years when, in 1999, she began to complain of hand, wrist, and shoulder pain. Atchison
40.8 Immigration Work Status. Mohammad Hashmi, a citizen of Pakistan, entered the United States in 2002 on a student visa. Two years later, when he applied for a job at CompuCredit, he completed an
40.7 Hiring Illegal Aliens. Nicole Tipton and Sadik Seferi owned and operated a restaurant in Iowa. Acting on a tip from the local police, agents of Immigration and Customs Enforcement executed
40.6 Unemployment Insurance. Mary Garas, a chemist, sought work in Missouri through Kelly Services, Inc. Kelly is a staffing agency that places individuals in jobs of varying duration with other
40.5 Case Problem with Sample Answer. Jennifer Willis worked for Coca Cola Enterprises, Inc. (CCE), in Louisiana as a senior account manager. On a Monday in May 2003, Willis called her supervisor to
40.4 Collective Bargaining. Ceridian Corp. provides employment services to other companies. One of its divisions offers counseling to its customers’ employees through a call-in center in
40.3 Workers’ Compensation. The Touch of Class Lounge is in a suburban shopping plaza, or strip mall, in Omaha, Nebraska. Patricia Bauer, the Lounge’s owner, does not own the parking lot, which
40.2 Hypothetical Question with Sample Answer. Denton and Carlo were employed at an appliance plant. Their job required them to do occasional maintenance work while standing on a wire mesh twenty
40.1 Wage and Hour. Calzoni Boating Co. is an interstate business engaged in manufacturing and selling boats. The company has five hundred nonunion employees. Representatives of these employees are
5 What federal statutes govern labor unions and collective bargaining?
4 Does electronic performance monitoring violate employees’ privacy rights? What other types of activities undertaken by employers might violate the privacy rights of employees?
3 Under the Family and Medical Leave Act of 1993, under what circumstances may an employee take family or medical leave?
2 What federal act was enacted to protect the health and safety of employees? What are workers’ compensation laws?
1 What is the employment-at-will doctrine? When and why are exceptions to this doctrine made?
39.10 Critical Legal Thinking. It has been estimated that for every dollar spent cleaning up hazardous waste sites, administrative agencies spend seven dollars in overhead. Can you think of any way
39.9 A Question of Ethics. In the Clean Air Act, Congress allowed California, which has particular problems with clean air, to adopt its own standard for emissions from cars and trucks, subject to
39.8 Environmental Impact Statement. The fourth largest crop in the United States is alfalfa, of which 5 percent is exported to Japan. RoundUp Ready alfalfa is genetically engineered to resist
39.7 Clean Water Act. The Anacostia River, which flows through Washington, D.C., is one of the ten most polluted rivers in the country. For bodies of water such as the Anacostia, the Clean Water Act
39.6 Case Problem with Sample Answer. William Gurley was the president and majority stockholder in Gurley Refining Co. (GRC). GRC bought used oil, treated it, and sold it. The refining process
39.5 CERCLA. Beginning in 1926, Marietta Dyestuffs Co. operated an industrial facility in Marietta, Ohio, to make dyes and other chemicals. In 1944, Dyestuffs became part of American Home Products
39.4 Environmental Impact Statement. Greers Ferry Lake is in Arkansas, and its shoreline is under the management of the U.S. Army Corps of Engineers, which is part of the U.S. Department of Defense
39.3 Common Law Actions. Moonbay is a home-building corporation that primarily develops retirement communities. Farmtex owns a number of feedlots in Sunny Valley. Moonbay purchased 20,000 acres of
39.2 Hypothetical Question with Sample Answer. Fruitade, Inc., is a processor of a soft drink called Freshen Up. Fruitade uses returnable bottles, which it cleans with a special acid to allow for
39.1 Clean Air Act. Current scientific knowledge indicates that there is no safe level of exposure to a cancer-causing agent. In theory, even one molecule of such a substance has the potential for
5 What is Superfund? To what categories of persons does liability under Superfund extend?
4 What major federal statutes regulate air and water pollution?
3 What does the Environmental Protection Agency do?
2 What is an environmental impact statement, and who must file one?
1 Under what common law theories can polluters be held liable?
3 Is Tony committed to buying Betty’s trade-in truck for $3,000 because that is what he told her over the phone?
2 Is the advertisement for the truck an offer to which the dealership is bound? Does it matter if Betty detrimentally relied on the advertisement?
1 Is the auto dealership’s advertisement for the truck in the video deceptive? Why or why not?
38.10 Video Question. Go to this text’s Web site at www.cengage.com/blaw/blt and select “Chapter 38.” Click on “Video Questions” and view the video titled Advertising Communication Law:
38.9 Critical Thinking and Writing Assignment for Business. Many states have enacted laws that go even further than federal law to protect the interests of consumers. These laws vary tremendously
38.8 Question of Ethics. After graduating from law school—and serving time in prison for attempting to collect debts by posing as an FBI agent—Barry Sussman theorized that if a debt-collection
38.7 Debt Collection. 55th Management Corp. in New York City owns residential property that it leases to various tenants. In June 2000, claiming that one of the tenants, Leslie Goldman, owed more
38.6 Case Problem with Sample Answer. One of the products sold by McDonald’s Corp. is the Happy Meal®, which consists of a McDonald’s food entree, a small order of french fries, a small drink,
38.5 Deceptive Advertising. “Set up & Ready to Make Money in Minutes Guaranteed!” the ads claimed. “The Internet Treasure Chest (ITC) will give you everything you need to start your own
38.4 Fair Credit Reporting Act. Source One Associates, Inc., is based in Poughquag, New York. Peter Easton, Source One’s president, is responsible for its daily operations. Between 1995 and 1997,
38.3 Sales. On June 28, a salesperson for Renowned Books called on the Gonchars at their home. After a very persuasive sales pitch by the agent, the Gonchars agreed in writing to purchase a
38.2 Hypothetical Question with Sample Answer. Maria Ochoa receives two new credit cards on May 1. She had solicited one of them from Midtown Department Store, and the other arrived unsolicited from
38.1 Unsolicited Merchandise. Andrew, a resident of California, received an advertising circular in the U.S. mail announcing a new line of regional cookbooks distributed by the EveryKind Cookbook
5 What are the major federal statutes providing for consumer protection in credit transactions?
4 How does the Federal Food, Drug, and Cosmetic Act protect consumers?
3 What is Regulation Z, and to what type of transactions does it apply?
2 What special rules apply to telephone solicitation?
1 When will advertising be deemed deceptive?
37.11 Critical Thinking and Writing Assignment for Business. In what ways might antitrust laws place too great a burden on commerce in the global marketplace?
37.10 Critical Legal Thinking. Critics of antitrust law claim that in the long run, competitive market forces will eliminate private monopolies unless they are fostered by government regulation.
37.9 A Question of Ethics. In the 1990s, DuCoa, L.P., made choline chloride, a B-complex vitamin essential for the growth and development of animals. The U.S. market for choline chloride was divided
37.8 Tying Arrangement. John Sheridan owned and operated a Marathon gas station franchise (see Chapter 29). He sued the franchisor, Marathon Petroleum Company, under Section 1 of the Sherman Act and
37.7 Case Problem with Sample Answer. In 1999, residents of the city of Madison, Wisconsin, became concerned that overconsumption of liquor seemed to be increasing near the campus of the University
37.6 Price Fixing. Texaco Inc. and Shell Oil Co. are competitors in the national and international oil and gasoline markets. They refine crude oil into gasoline and sell it to service station owners
37.5 Sherman Act. Dentsply International, Inc., is one of a dozen manufacturers of artificial teeth for dentures and other restorative devices. Dentsply sells its teeth to twenty-three dealers in
37.4 Restraint of Trade. Visa U.S.A., Inc., MasterCard International, Inc., American Express (Amex), and Discover are the four major credit- and charge-card networks in the United States. Visa and
37.3 Monopolization. Moist snuff is a smokeless tobacco product sold in small round cans from racks, which include point-of sale (POS) ads. POS ads are critical because tobacco advertising is
37.2 Hypothetical Question with Sample Answer. Allitron, Inc., and Donovan, Ltd., are interstate competitors selling similar appliances, principally in the states of Illinois, Indiana, Kentucky, and
37.1 Sherman Act. An agreement that is blatantly and substantially anticompetitive is deemed a per se violation of Section 1 of the Sherman Act. Under what rule is an agreement analyzed if it appears
4 What agencies of the federal government enforce the federal antitrust laws? 5 What are four activities that are exempt from the antitrust laws?
3 What are the four major provisions of the Clayton Act, and what types of activities do these provisions prohibit?
2 What type of activity is prohibited by Section 1 of the Sherman Act? What type of activity is prohibited by Section 2 of the Sherman Act?
1 What is a monopoly? What is market power? How do these concepts relate to each other?
36.9 Critical Legal Thinking. Does Congress delegate too much power to federal administrative agencies? Do the courts defer too much to Congress in its grant of power to those agencies? What are the
36.8 A Question of Ethics. To ensure highway safety and protect driver health, Congress charged federal agencies with regulating the hours of service of commercial motor vehicle operators. Between
36.7 Case Problem with Sample Answer. A well-documented rise in global temperatures has coincided with a significant increase in the concentration of carbon dioxide in the atmosphere. Many scientists
36.6 Rulemaking. The Investment Company Act prohibits a mutual fund from engaging in certain transactions in which there may be a conflict of interest between the manager of the fund and its
36.5 Investigation. Riverdale Mills Corp. makes plastic-coated steel wire products in Massachusetts. Riverdale uses a waterbased cleaning process that generates acidic and alkaline wastewater. To
36.4 Judicial Controls. Under federal law, when accepting bids on a contract, an agency must hold “discussions” with all offerors. An agency may ask a single offeror for “clarification” of
36.3 Investigation. Maureen Droge began working for United Air Lines, Inc. (UAL), as a flight attendant in 1990. In 1995, she was assigned to Paris, France, where she became pregnant. Because UAL
36.2 Hypothetical Scenario with Sample Answer. Assume that the Food and Drug Administration (FDA), using proper procedures, adopts a rule describing its future investigations. This new rule covers
36.1 Rulemaking and Adjudication Powers. For decades, the Federal Trade Commission (FTC) resolved fair trade and advertising disputes through individual adjudications. In the 1960s, the FTC began
4 How do administrative agencies enforce their rules?
3 What sequence of events must normally occur before an agency rule becomes law?
2 What are the three basic functions of most administrative agencies?
1 How are federal administrative agencies created?
5 IMPLICATIONS FOR THE INVESTOR. What does the outcome of this case suggest for the employee who wants to buy stock in her or his employer’s firm on the basis of a potentially profitable
4 SOCIAL D IMENSIONS. Suppose that a corporate insider, without revealing any material, nonpublic information, advises a friend to buy stock in the company. Can the insider legitimately share the
3 ETHICS. When a case is tried before a jury, the jury determines the credibility of the witnesses, resolves conflicts in the evidence, and draws reasonable inferences from the facts. Is it

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