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business
business law principles
Questions and Answers of
Business Law Principles
4.3 Liability to Business Invitees. Kim went to Ling’s Market to pick up a few items for dinner. It was a rainy, windy day, and the wind had blown water through the door of Ling’s Market each
4.2 Hypothetical Question with Sample Answer. In which of the following situations will the acting party be liable for the tort of negligence? Explain fully. 1 Mary goes to the golf course on Sunday
4.1 Defenses to Negligence. Corinna was riding her bike on a city street. While she was riding, she frequently looked back to verify that the books that she had fastened to the rear part of her bike
5 What is a cyber tort, and how are tort theories being applied in cyberspace?
4 What is meant by strict liability? In what circum- stances is strict liability applied?
3 What are the four elements of negligence?
2 What is the purpose of tort law? What are two basic categories of torts?
1 What is a tort?
3.11 Video Question. Go to this text’s Web site at www. cengage.com/blaw/blt and select “Chapter 3.” Click on “Video Questions” and view the video titled Jurisdiction in Cyberspace. Then
3.10 Critical Legal Thinking. Suppose that a state statute requires that all civil lawsuits involving damages of less than $50,000 be arbitrated and allows such a case to be tried in court only if a
3.9 A Question of Ethics. Nellie Lumpkin, who suffered from various illnesses, including dementia, was admitted to the Picayune Convalescent Center, a nursing home. Because of her mental condition,
3.8 Arbitration. Thomas Baker and others who bought new homes from Osborne Development Corp. sued for multiple defects in the houses they purchased. When Osborne sold the homes, it paid for them to
3.7 Jurisdiction. In 2001, Raul Leal, the owner and operator of Texas Labor Contractors in East Texas, contacted Poverty Point Produce, Inc., which operates a sweet potato farm in West Carroll
3.6 Case Problem with Sample Answer. Kathleen Lowden sued cellular phone company T-Mobile, claiming that its service agreements were not enforceable under Washington state law. Lowden sued to create
3.5 Appellate Review. BSH Home Appliances Corp. makes appliances under the Bosch, Siemens, Thermador, and Gaggenau brands. To make and market the “Pro 27 Stainless Steel Range,” a
3.4 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
3.3 Standing to Sue. Lamar Advertising of Penn, LLC, an outdoor advertising business, wanted to erect billboards of varying sizes in a multiphase operation throughout the town of Orchard Park, New
3.2 Hypothetical Question with Sample Answer. Marya Callais, a citizen of Florida, was walking along a busy street in Tallahassee when a large crate flew off a passing truck and hit her, causing
3.1 Arbitration. In an arbitration proceeding, the arbitrator need not be a judge or even a lawyer. How, then, can the arbitrator’s decision have the force of law and be binding on the parties
5 How are online forums being used to resolve disputes?
4 In a lawsuit, what are the pleadings? What is discovery, and how does electronic discovery differ from traditional discovery? What is electronic filing?
3 What is the difference between a trial court and an appellate court?
2 Before a court can hear a case, it must have jurisdiction. Over what must it have jurisdiction? How are the courts applying traditional jurisdictional concepts to cases involving Internet
1 What is judicial review? How and when was the power of judicial review established?
5 How are online forums being used to resolve disputes?
4 In a lawsuit, what are the pleadings? What is discov- ery, and how does electronic discovery differ from traditional discovery? What is electronic filing?
3 What is the difference between a trial court and an appellate court?
2 Before a court can hear a case, it must have jurisdic- tion. Over what must it have jurisdiction? How are the courts applying traditional jurisdictional con- cepts to cases involving Internet
1 What is judicial review? How and when was the power of judicial review established?
2.12 Critical Thinking and Writing Assignment for Business. The commerce clause was originally interpreted to regulate only interstate commerce. Over time, however, the Supreme Court has made it
2.11 Critical Legal Thinking. Do you think that the threat of terrorism in the United States justifies the imposition of limits on the right to privacy? In the wake of the 9/11 terrorist attacks,
2.10 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 “Island Cottage,” a residence across an
2.9 Freedom of Speech. For decades, New York City has had to deal with the vandalism and defacement of public property caused by unauthorized graffiti. Among other attempts to stop the damage, in
2.8 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
2.7 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 planning and zoning commission for the
2.6 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
2.5 Free 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 home,
2.4 Freedom of Religion. 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, Marjorie
2.3 Commerce Clause. Suppose that Georgia enacts a law requiring the use of contoured rear-fender mudguards on trucks and trailers operating within its state lines. The statute further makes it
2.2 Hypothetical 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
2.1 Commercial Speech. A mayoral election is about to be held in a large U.S. city. One of the candidates is Luis Delgado, and his campaign supporters wish to post campaign signs on lampposts and
5 Where in the Constitution can the due process clause be found?
4 What is the Bill of Rights? What freedoms does the First Amendment guarantee?
3 What constitutional clause allows laws enacted by the federal government to take priority over conflicting state laws?
2 What constitutional clause gives the federal government the power to regulate commercial activities among the various states?
1 What is the basic structure of the U.S.govemment?
1.11 Critical Thinking and Writing Assignment for Business. John’s company is involved in a lawsuit with a customer, Beth. John argues that for fifty years, in cases involving circumstances similar
1.10 Critical Legal Thinking. Courts of equity tend to follow general rules or maxims rather than following common law precedents, as courts of law do. Some of these maxims were listed in this
1.9 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.
1.8 Court Opinions. Read through the subsection entitled “Case Titles and Terminology” in the appendix following this chapter. What is the difference between a concurring opinion and a majority
1.7 Stare Decisis. In the text of this chapter, we stated that the doctrine of stare decisis “became a cornerstone of the English and U.S. judicial systems.” What does stare decisis mean, and
1.6 Reading Citations. Assume that you want to read the court’s entire opinion in the case of Buell-Wilson v. Ford Motor Co., 160 Cal.App.4th 1107, 73 Cal.Rptr.3d 277 (2008). The case focuses on
1.5 Philosophy of Law. After World War II ended in 1945, an international tribunal of judges convened at Nuremberg, Germany. The judges convicted several Nazi war criminals of “crimes against
1.4 Hypothetical Question with Sample Answer. This chapter discussed a number of sources of American law. Which source of law takes priority in each of the following situations, and why? 1 A federal
1.3 Legal Systems. What are the key differences between a common law system and a civil law system? Why do some countries have common law systems and others have civil law systems?
1.2 Remedies. Arthur Rabe is suing Xavier Sanchez for breaching a contract in which Sanchez promised to sell Rabe a Van Gogh painting for $150,000. 1 In this lawsuit, who is the plaintiff, and who is
1.1 Binding versus Persuasive Authority. A county court in Illinois is deciding a case involving an issue that has never been addressed before in that state’s courts. The Iowa Supreme Court,
5 What are some important differences between civil law and criminal law?
4 What is the difference between remedies at law and remedies in equity?
3 What is a precedent? When might a court depart from precedent?
2 What is the common law tradition?
1 What is the Uniform Commercial Code?
5 What are some important differences between civil law and criminal law
4 What is the difference between remedies at law and remedies in equity?
3 What is a precedent? When might a court depart from precedent?
2 What is the common law tradition?
1 What is the Uniform Commercial Code?
What is the difference between an implied contract and a quasi contract?
What is a merchant’s firm offer?
What is the difference between a mistake of value or quality and a mistake of fact?
What is a short sale?
What federal acts prohibit discrimination based on age and discrimination based on disability?
How are corporations financed?
What are the steps of a merger, a consolidation, or a share exchange procedure?
What constrains professionals to keep communications with their clients confidential?
Under what circumstances will a covenant not to compete be enforceable? When will such covenants not be enforced?
What is an exculpatory clause? In what circumstances might exculpatory clauses be enforced? When will they not be enforced?
What must directors do to avoid liability for honest mistakes of judgment and poor business decisions?
What is intellectual property?
Why does the law protect trademarks and patents?
What laws protect authors’ rights in the works they generate?
Where in the U.S. Constitution can the due process clause be found?
What is judicial review?
How are most contracts discharged?
What is a contractual condition, and how might a condition affect contractual obligations?
What remedies are available to a seller or lessor when the buyer or lessee breaches the contract?
What type of check does a bank agree in advance to accept when the check is presented for payment?
What is a security interest? Who is a secured party?What is a security agreement? What is a financing statement?
What is the most common method of perfecting a security interest under Article 9?
What are the basic requirements for executing a will?How may a will be revoked?
What types of provisions, or clauses, are often included in international sales contracts?
Do U.S. laws prohibiting employment discrimination apply in all circumstances to U.S. employees working for U.S. employers abroad?
Mitchell, Nelson, Olsen, and Parker, experts in manufacturing baubles, each owned fifteen of one hundred authorized shares of Baubles, Inc., a corporation of State X that does not permit cumulative
Pritchard & Baird was a reinsurance broker. A reinsurance broker arranges contracts between insurance companies so that companies that have sold large policies may sell participations in these
National Acceptance Company loaned Ultra Precision Industries \($692,000,\) and to secure repayment of the loan, Ultra executed a chattel mortgage security agreement on National’s behalf on March
New West Fruit Corporation (New West) and Coastal Berry Corporation are both brokers of fresh strawberries.In the second half of 2009, New West’s predecessor, Monc’s Consolidated Produce, Inc.,
Freelin Conn filed a voluntary petition of the Bankruptcy Code on September 30, 2016. Conn listed BancOhio National Bank as having a claim incurred in October of 2015 in the amount of \($4,000\)
John P. Butler Accountancy Corporation agreed to audit the financial statements of Westside Mortgage, Inc., a mortgage company that arranged financing for real property, for the year ending December
Kevin Miller bought a house in Atlanta in 2007 and took out a mortgage. He lived in the house until 2010, when he accepted a job in Chicago; from then on, he rented the house. He received a letter
John Swan rented a safe deposit box at the Tenth Citizens Bank of Emanon, State of X. On December 17, 2015, Swan went to the bank with stock certificates to place in the safe deposit box. After he
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