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business
contemporary business law
Questions and Answers of
Contemporary Business Law
“First, any court reviewing a punitive damages award should consider the degree of reprehensibility of the defendant’s conduct.” —Toal, Chief Justice Facts: On May 15, 2001, Jerome
Prior to 1918, the Petrograd Metal Works, a Russian corporation, deposited a large sum of money with August Belmont, a private banker doing business in New York City under the name August Belmont
Texas–based American corporation that engaged in drilling oil wells throughout the world. Unterweser Reederei, GMBH (Unterweser), was a German corporation that provided ocean shipping and towing
“The doctrine prevents any court in the United States from declaring that an official act of a foreign sovereign performed within its own territory is invalid.” —Cox, Circuit Judge Facts:
Milton Mende purchased the Star Midas Mining Co., Inc., for $6,500. This Nevada corporation was a shell corporation with no assets. Mende changed the name of the corporation to American Equities
For five years, Chaple, an accountant licensed by the state of Georgia, provided accounting services to Roberts and several corporations in which Roberts was an officer and shareholder (collectively
The Firestone Group, Ltd. (Firestone), a company engaged in real estate development, entered into a contract to sell nursing homes it owned to a buyer. The buyer paid a $30,000 deposit to Firestone
Giant Stores Corporation (Giant) hired Touche Ross & Co. (Touche), a national CPA firm, to conduct audits of the company’s financial statements for two years. Touche gave an unqualified
Guarente-Harrington Associates was a limited partnership formed for the purpose of investing in securities. There were two general partners and 40 limited partners. The partnership agreement provided
“The facts as alleged by plaintiffs fail to demonstrate the existence of a relationship between the parties sufficiently approaching privity.” —Jason, Judge Facts: L.B. Smith, Inc., of
During his first marriage to Miriam Talbot, Robert Mirkil Talbot executed a will in multiple originals that bequeathed his entire estate to Miriam, or if she should predecease him, to his friend J.
Mr. and Mrs. Campbell were out in a small boat on Hyatt Lake near Ashland, Oregon. The boat capsized near the middle of the lake sometime in the afternoon. No one saw the capsizing or either of the
“The party challenging the will must prove undue influence by clear, cogent, and convincing evidence.” —Leach, Judge Facts: James W. Haviland was a medical doctor who was a professor and
The defendants are approximately 80 tenants of a 300-unit luxury apartment building on the upper east side of Manhattan. The monthly rents in the all-glass-enclosed building, which won several
Joseph and Helen Naab purchased a tract of land in a subdivision of Williamstown, West Virginia. At the time of purchase, there were both a house and a small concrete garage on the property. Evidence
W.E. and Jennie Hutton conveyed land they owned to the Trustees of Schools of District Number One of the Town of Allison, Illinois (School District), by warranty deed “to be used for school purpose
Burl Brunson purchased a parcel of real property in Newark, New Jersey. The deed for the property was properly recorded and indexed by the county recorder. Subsequently, Brunson borrowed $50,000 from
“The trial court found that for 39 years Bogy had overtly and adversely used this land for access to the property, which entitled him to an easement by prescription.” —Wood, Judge Facts:
“The record before us shows the requisite open, notorious, actual, uninterrupted, exclusive, and hostile possession for 22 years.” —Sweeney, Judge Facts: In 2006, Allen and Michelle Loun
“[A] quitclaim deed by a joint tenant to himself or herself as a tenant in common effectively severs the joint tenancy and creates a tenancy in common.” —Hill, Judge Facts: Richard F.
Darryl Kulwin was employed by Nova Stylings, Inc. (Nova), as a jewelry salesman. In that capacity, he traveled throughout the country, carrying with him jewelry owned and manufactured by Nova to show
Alex Franks was a guest staying at a Comfort Inn in Searcy, Arkansas, while he was working on a highway project. Franks found a bundle of money in plain view in the left part of the left drawer in
“Therefore, plaintiff cannot recover for any damages sustained as a result of the alleged lost package of rare coins.” —Land, District Judge Facts: Billy Rykard allegedly shipped rare
“Thus, Ziva Jewelry cannot claim that CWH knew or that it should have reasonably foreseen or expected that it was taking responsibility for over $850,000 worth of jewelry when it accepted Smith’s
“Although elementary school children like to say ‘finders keepers’…” —Portley, Judge Facts: Robert A. Spann lived in his Paradise, Arizona, home until he passed away. Karen Spann
The PGA Tour, Inc., is a nonprofit entity that sponsors professional golf tournaments. The PGA has adopted a set of rules that apply to its golf tour. One rule requires golfers to walk the golf
Dianne Rawlinson, 22 years old, was a college graduate whose major course of study was correctional psychology. After graduation, she applied for a position as a correctional counselor (prison guard)
Trans World Airlines (TWA), an airline, operated a large maintenance and overhaul base for its airplanes in Kansas City, Missouri. Because of its essential role, the stores department at the base
The Federal Bureau of Investigation (FBI) engaged in a pattern and practice of discrimination against Hispanic FBI agents. Job assignments and promotions were areas that were especially affected.
The Los Angeles Department of Water and Power maintains a pension plan for its employees that is funded by both employer and employee contributions. The plan pays men and women retirees’ pensions
For years, New York law prevented females from working at night. Therefore, Corning Glass Works employed male workers for night inspection jobs and female workers for day inspection jobs. Males
Teresa Harris worked as a manager at Forklift Systems Incorporated (Forklift), an equipment rental company, for two and one-half years. Charles Hardy was Forklift’s president. Throughout Harris’s
“We think it obvious that a reasonable worker might be dissuaded from engaging in protected activity if she knew that her fiancé would be fired.” —Scalia, Justice Facts Miriam Regalado
Whirlpool Corporation (Whirlpool) operated a manufacturing plant in Marion, Ohio, for the production of household appliances. Overhead conveyors transported appliance components throughout the plant.
The American Ship Building Company (American) operated a shipyard in Chicago, Illinois, where it repaired Great Lakes ships during the winter months, when freezing on the Great Lakes rendered
The Teamsters Union (Teamsters) began a campaign to organize the employees at a Sinclair Company (Sinclair) plant. When the president of Sinclair learned of the Teamsters’ drive, he talked with all
“The company is entitled to avoid the distraction from its messages that a number of union buttons would risk.” —Newman, Circuit Judge Facts: The Industrial Workers of the World (IWW) is a
“The relevant text describes the workday as roughly the period from ‘whistle to whistle.’” —Stevens, Justice Facts: IBP, Inc., produces fresh beef, pork, and related meat products. At
“Despite Coca-Cola’s assertion, an exception to the general rule prohibiting one from participating in workers’ compensation benefits applies where the employee is injured by horseplay commonly
The Colgate-Palmolive Co. (Colgate) manufactured and sold a shaving cream called Rapid Shave. Colgate hired Ted Bates & Company (Bates), an advertising agency, to prepare television commercials
“The EPA has been consistent in its views that the types of discharges at issue here do not require permits.” —Kennedy, Justice Facts: The federal Clean Water Act (Act) and regulations
“The conditions at LaGrou’s cold storage warehouse at 2101 Pershing Road in Chicago were enough to turn even the most enthusiastic meat-loving carnivore into a vegetarian.” —Bauer,
Corn Products Refining Company (Corn Products) manufactured corn syrup, or glucose (a principal ingredient of low-priced candy), at two plants, one located in Chicago, Illinois, and the other in
The Lipton Tea Co. (Lipton) was the secondlargest U.S. producer of herbal teas, controlling 32 percent of the national market. Lipton announced that it would acquire Celestial Seasonings, the largest
The Maricopa County Medical Society (Society) is a professional association that represents doctors of medicine, osteopathy, and podiatry in Maricopa County, Arizona. The society formed the Maricopa
Law school students, after they graduate from law school, must take and pass a bar exam before they can become a lawyer in a state. Most law students take a preparatory bar exam course before they
“Section 1 applies only to concerted action that restrains trade.” —Stevens, Justice Facts: The National Football League (NFL) is an unincorporated association that includes 32 separately
Leslie Neadeau was the president of T.O.N.M. Oil & Gas Exploration Corporation (TONM). Charles Lazzaro was a registered securities broker employed by Bateman Eichler, Hill Richards, Inc. (Bateman
“The fact that this evidence was all circumstantial does not lessen its sufficiency to support a guilty verdict.” —Rawlinson, Circuit Judge Facts: Atul Bhagat worked for NVIDIA Corporation
Kawasaki Motors Corporation (Kawasaki), a Japanese corporation, manufactures motorcycles that it distributes in the United States through its subsidiary, Kawasaki Motors Corporation, U.S.A. (Kawasaki
The Seven-Up Company (Seven-Up) is a franchisor that licenses local bottling companies to manufacture, bottle, and distribute soft drinks using the 7-Up trademark. The Brooks Bottling Company
chisees to provide tax preparation services to customers under the H&R Block service mark. June McCart was granted a Block franchise at 900 Main Street, Rochester, New York. For seven years, her
Libby-Broadway Drive-In, Inc. (Libby), is a corporation licensed to operate a McDonald’s fast-food franchise restaurant by the McDonald’s System, Inc. (McDonald’s). Libby was granted a license
“The trial court correctly determined that McDonald’s Corporation had a duty to protect plaintiffs Laura Martin, Maureen Kincaid, and Therese Dudek from harm.” —McNulty, Judge Facts:
“In evaluating the requisite level of control, courts commonly distinguish between control over a franchisee’s day-to-day operations and controls designed primarily to insure uniformity and the
Dale C. Bone was a member of Roscoe, LLC, an LLC organized under the laws of North Carolina. Roscoe, LLC, purchased two acres of land near the town of Apex, North Carolina. Apex approved Roscoe,
“Finally, the evidence did not show that Siva was misguided as to the fact he was dealing with a limited liability company.” Brown, Judge Facts: Five members Richard Hess, Robert
Realist, Inc. (Realist), was a Delaware corporation with its principal place of business in Wisconsin. In March 1988, Royal Business Group, Inc. (Royal), a New Hampshire corporation, acquired 8
Household International, Inc. (Household), was a diversified holding company with its principal subsidiaries engaged in financial services, transportation, and merchandising. The board of directors
The Medical Committee for Human Rights (Committee), a nonprofit corporation organized to advance concerns for human life, received a gift of shares of Dow Chemical (Dow) stock. Dow manufactured
The Medfield Corporation (Medfield) was a publicly held corporation engaged in operating hospitals and other health care facilities. Medfield established a date for its annual shareholders’
“As is typical, the outcome of this appraisal proceeding largely depends on my acceptance, rejection, or modification of the views of the parties’ valuation experts.” —Strine, Vice
Lawrence Gaffney was the president and general manager of Ideal Tape Company (Ideal). Ideal, which was a subsidiary of Chelsea Industries, Inc. (Chelsea), was engaged in the business of manufacturing
Edward Hellenbrand ran a comedy club known as the Comedy Cottage in Rosemont, Illinois. The business was incorporated, with Hellenbrand and his wife as the corporation’s sole shareholders. The
Jack C. Schoenholtz was a shareholder and member of the board of directors of Rye Psychiatric Hospital Center, Inc. (Rye Hospital). Four years after the hospital was incorporated, a split had
Ocilla Industries, Inc. (Ocilla), owned 40 percent of the stock of Direct Action Marketing, Inc. (Direct Action). Direct Action was a New York corporation that specialized in the marketing of
“Though this board acted ‘badly’—with gross negligence—this board did not act in bad faith.” —Chandler, Chancellor Facts: A complaint was filed in Delaware Court by John McPadden
“If capital is illusory or trifling compared with the business to be done and the risk of loss, this is a ground for denying the separate entity privilege.” —Jarvey, District Judge Facts:
John A. Goodman was a real estate salesman in the state of Washington. Goodman sold to Darden, Doman & Stafford Associates (DDS), a general partnership, an apartment building that needed
United Financial Corporation of California (United Financial) was incorporated in the state of Delaware. United Financial owned the majority of a California savings and loan association as well as
United Financial Corporation of California (United Financial) was incorporated in the state of Delaware. United Financial owned the majority of a California savings and loan association as well as
Leo V. Mysels was the president of Florida Fashions of Interior Design, Inc. (Florida Fashions). Florida Fashions, which was a Pennsylvania corporation, had never registered to do business in the
Jeffrey Sammak was the owner of a contracting business known as Senaco. Sammak decided to enter the coal reprocessing business. Sammak attended the Coal Show in Chicago, Illinois, at which he met
“As a general rule, a corporation is a distinct legal entity, separate from the individuals who comprise them, and individual shareholders are not liable for the debts of the corporation.”
Robert K. Powers and Lee M. Solomon were among other limited partners of the Cosmopolitan Chinook Hotel (Cosmopolitan), a limited partnership. Cosmopolitan entered into a contract to lease and
Raugust-Mathwig, Inc., a corporation, was the sole general partner of a limited partnership. Calvin Raugust was the major shareholder of this corporation. The three limited partners were Cal-Lee
Thomas McGrath was a partner in the law firm Tarbenson, Thatcher, McGrath, Treadwell & Schoonmaker. One day, at approximately 4:30 p.m., McGrath went to a restaurant–cocktail establishment in
“An individual doing business as a sole proprietor, even when business is done under a different name, remains personally liable for all of the obligations of the sole proprietorship.”
Ray Johnson and his 8-year-old son, David, were waiting for a “walk” sign before crossing a street in downtown Salt Lake City. A truck owned by Newspaper Agency Corporation (NAC) and operated by
After Francis Pusateri retired, he met with Gilbert J. Johnson, a stockbroker with E. F. Hutton & Co., Inc., and informed Johnson that he wished to invest in tax-free bonds and money market
In our view, Supreme Court properly concluded that throwing a full bag of heavy items at an unsuspecting customer’s face as a ‘joke’ is not commonly done by a cashier and, indeed, substantially
“In the event that an employee is engaged in some private matter of his own or outside the legitimate scope of his employment the employer is no longer responsible for the negligence of the
Margaret Kawaauhau sought treatment from Dr. Paul Geiger for a foot injury. Dr. Geiger examined Kawaauhau and admitted her to the hospital to attend to the risks of infection. Although Dr. Geiger
“Here, the trustee seeks turnover of the diamonds.” —Catliota, Bankruptcy Judge Facts: Minh Vu Hoang (Hoang) owned businesses and purchased and sold real estate. When she filed for
“Thus, Pankratz’ financing statement using the misspelled name of the debtor, while prior in time, was seriously misleading, …” —Davis, Justice Facts: Rodger House purchased a tractor
“The recording statute sets forth the general rule that the first mortgage recorded shall have preference over subsequently recorded mortgages.” —Dinkelacker, Judge Facts: James and
“In this case, the undisputed evidence showed that Spacemakers hired as a bookkeeper a twice-convicted embezzler who was on probation, then delegated the entire responsibility of reviewing and
“The Court finds that Las Vegas Sands was a holder in due course.” —Arguello, District Judge Facts: Ron Bryant wanted money to obtain promotional premiums from the Venetian Resort Hotel
Stewart P. Blanchard borrowed $50,000 from Progressive Bank & Trust Company (Progressive) to purchase a home. As part of the transaction, Blanchard signed a note secured by a mortgage. The note
“Accordingly, when here the payees of the cashier’s checks indorsed the checks in blank, the checks then became bearer paper and could—similar to cash—be transferred by possession alone.”
“The marker therefore was valid and enforceable as a negotiable instrument under Nevada law.” —Bea, Circuit Judge Facts Amine T. Nehme, a California resident, is a repeat gambler at the
One night Verne Prior, while driving on U.S. 101 under the influence of alcohol and drugs at speeds of 65 to 85 miles per hour, crashed his automobile into the left rear of a Chevrolet station wagon
The Emerson Electric Co. manufactures and sells a product called the Weed Eater XR-90. The Weed Eater is a multipurpose weed-trimming and brush-cutting device. It consists of a handheld
Senco Products, Inc. (Senco), manufactures and markets a variety of pneumatic nail guns, including the SN325 nail gun, which discharges 3.25-inch nails. The SN325 uses special nails designed and sold
W. Hayes Daughtrey consulted Sidney Ashe, a jeweler, about the purchase of a diamond bracelet as a Christmas present for his wife. Ashe showed Daughtrey a diamond bracelet that he had for sale for
Lorenzo Peterson was swimming in a swimming pool with a friend at an apartment complex. Lorenzo watched his friend swim to the bottom of the pool, slide an unattached drain cover away, and then slide
“The risk of harm accompanying the bat’s use extends beyond the player who holds the bat in his or her hands.” —Selley, Justice Facts: While pitching in an American Legion baseball game,
“In the case at hand, Shoshone contends that insufficient proof was offered to establish that the mouse was in the bottle of ‘Squirt’ when it left Shoshone’s possession.” —Thompson,
“A valid ‘as is’ agreement prevents a buyer from holding a seller liable if the thing sold turns out to be worth less than the price paid.” —Vanmeter, Judge Facts: Evan Roberts
“Any entrusting of possession of goods to a merchant who deals in goods of that kind gives him power to transfer all rights of the entruster to a buyer in ordinary course of business.” —Rogers,
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