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law for business

Questions and Answers of Law for Business

Lewis worked as a bookkeeper for the school district without a problem until 2004. During that year, both her parents became terminally ill and she tried to care for them at home. Her father died in
Mankins, who had worked at the paper for 16 years, was vice president of his union and was assistant chairman or substitute steward on his shift. He complained to his supervisor that a co-worker was
In general, what does the Employment Retirement Income Security Act do?
Explain the three main exceptions to the employment-at-will doctrine.
Explain who and what is covered by workers’ compensation.
Explain the duty an employer owes under OSHA.
Carl Brown spoke to an insurance agent about obtaining automobile liability insurance for a Chevrolet Cavalier for which his stepson, who lived with Brown, would be the primary driver. Brown needed
See “Martin Manufacturing.” Mr. Martin, the president of Martin Manufacturing, was talking with Arnold, a new traveling salesman, about Arnold’s first week on the road. Arnold told Martin he
Danielle Jennings moved into the Ashley Lakes apartment complex in November. The following March, Jennings was found strangled to death in her apartment. Approximately six months earlier, the
Lisa M. visited the hospital for an ultrasound examination. After conducting the ordered examination, the technician left the ultrasound room for about 10 minutes to develop the photographic results.
See “In the Cards.” Jack runs a card shop. Linda, who knows little or nothing about baseball or baseball cards, agreed to run the shop for Jack while he went out for dinner. Jack told Linda she
Methvin was an agent for North American Specialty Insurance Company (NAS), which was engaged in the business of underwriting performance or construction bonds. As part of the agency agreement,
Paychex provided direct deposit payroll services for Ophthalmic Surgeons (OSL). Carleen Connor handled payroll for OSL and was its office manager. For a period of six years, Connor provided Paychex
John Decina contracted with H.A. Smith Lumber & Hardware to buy materials for Decina Corporation. When John Decina completed the credit application with Smith Lumber, he wrote the type of
See “Martin Manufacturing.” Immediately after being fired by Martin Manufacturing (see problem case 2), Mitch decided to squeeze one last bit of profit from his relationship with Martin. Thus, he
Irene Schoene, a real estate agent, represented Faith M. Ikola in connection with the purchase of a home. When Ikola first saw the property, she noticed a sump pump in the basement, and Schoene told
Mauricio Iragorri fell to his death down an empty elevator shaft after a repair person employed by International Elevator, Inc. (International) propped open the elevator door with a screwdriver and
Ronald Chernow is in the business of auditing telephone bills for customers. He determines whether the customer’s phone equipment is in place, properly billed, and in working order. He also checks
Saltzman worked for Coni-Seal, an automobile parts manufacturer, as a sales agent. They had a written agreement entitling Saltzman to a commission on “all products sold to approved accounts.” In
Wesco Autobody Supply bought three autobody supply stores from Paint & Equipment Supply. Several weeks after the purchases, the majority of Wesco’s employees at the stores quit and began
See “Martin Manufacturing.” Mr. Martin, the president of Martin Manufacturing, fires a purchasing agent named Mitch because Mitch has been taking kickbacks from suppliers. Martin also withholds
Cameco employed Gedicke as a salaried traffic manager. Gedicke’s primary duty was arranging transportation of Cameco’s food products to retail stores by common carrier. His duties included
De La Hoya bought a used handgun for $140 from Slim’s Gun Shop, a licensed firearms dealer. At the time, neither De La Hoya nor Slim’s knew that the gun had been stolen prior to the time Slim’s
Cohn advertised a 30-foot sailboat for sale in the New York Times. Fisher saw the ad, inspected the sailboat, and offered Cohn $4,650 for the boat. Cohn accepted the offer. Fisher gave Cohn a check
Catherine Baker purchased a fake fur coat from the Burlington Coat Factory Warehouse store in Scarsdale, New York, paying $127.99 in cash. The coat began shedding profusely, rendering the coat
Murrey & Sons Company, Inc. (Murrey) was engaged in the business of manufacturing and selling pool tables. Erik Madsen was working on an idea to develop a pool table that, through the use of
International Record Syndicate (IRS) hired Jeff Baker to take photographs of the musical group Timbuk-3. Baker mailed 37 “chromes” (negatives) to IRS via the business agent of Timbuk-3. When the
Harold Ledford agreed to purchase three used Mustang automobiles (a 1966 Mustang coupe, a 1965 fastback, and a 1966 convertible) from J. L. Cowan for $3,000. Ledford gave Cowan a cashier’s check
Douglas Bratz and Bradley Baughn were injured while riding a Honda mini–trail bike. At the time, they were eight years old. Douglas was driving and Bradley was the passenger when the bike hit a
Zachary Griggs, then 11 months old, sustained serious injuries in a fire at his Pennsylvania home that his three-year-old stepbrother, Kenneth Hempstead, ignited with a disposable butane lighter
Mark Hemphill was a football player for Southern Illinois University. He sustained injuries to his spine when he was hit while wearing a helmet manufactured by Riddell Sporting Goods, Inc. He brought
Jake, a car salesman, is discussing a particular car with Jones, a customer at Jake’s dealership. Jake tells Jones, “You won’t find a car like this at any price. This car is a crown jewel.”
Paul Brokke purchased a Pentax Super Program camera for $89.95 from Albert Williams, the operator of a pawnshop in Bozeman, Montana. Shortly after the purchase, Brokke was notified by the Bozeman
Beck, a high school baseball coach, ordered six pairs of flip-type baseball sunglasses from Rayex Corporation. Rayex had advertised the sunglasses as baseball sunglasses that would give “instant
Mitchell bought a hamburger from Wendy’s. When he began to eat the hamburger, he felt something extremely hard strike his tooth, causing pain that he described as feeling like “someone had shot
Irma Virgil bought a pint-sized thermos bottle from Kash N’ Karry. After a couple of months of use, she poured coffee into it one morning and was adding some milk when it imploded, throwing hot
Custom Concepts designed a product known as the Magic Crystal Ball as a premium for use by McDonald’s restaurants in some of its children’s selections on its menu. As designed, the Magic Crystal
John Klages, the night auditor at a motel, was working one evening when the motel was held up. When he was unable to open the safe, one of the robbers pointed a gun at Klages’s head and pulled the
In June, Ramos entered into a contract to buy a motorcycle from Big Wheel Sports Center. He paid the purchase price and was given the papers necessary to register the cycle and get insurance on it.
In December, Arlene Bradley entered Alsafi Oriental Rugs and advised the owner that she was an interior decorator and that she was interested in selling some of his rugs to one of her customers.
Kenneth West agreed to sell his car, a 1975 Corvette, to a man representing himself as Robert Wilson. In exchange for a cashier’s check, West signed over the Corvette’s title to Wilson. Ten days
Keith Russell, a boat dealer, contracted to sell a 19-foot Kinsvater boat to Robert Clouser for $8,500. The agreement stipulated that Clouser was to make a down payment of $1,700, with the balance
The Kruse Foundation is a charity that operates a WWII and car museum. Kimball International donated a furniture factory and 43 acres to the foundation. However, the foundation had trouble with
i.Lan entered into a value-added reseller (VAR) agreement with NetScout to resell NetScout’s software to its customers. i.Lan claimed it purchased the unlimited right to use the software, replete
Seaboard Lumber contracted with the U.S. Forest Service to cut, remove, and pay for timber on the Forest Service’s land, known as the What lot, in two and a half years. Between the time the
Discovery Zone owned and operated more than 300 “pay for play children’s entertainment centers” called FunCenters. It contracted with DuPont to install flooring in the centers. When DuPont
Pirtle bought a historic building with a mortgage and insured it with Rockford Mutual Insurance Co. (RMIC). The building was damaged by an accidental fire, and Pirtle made a claim on his insurance.
Arnhold and Argoudelis farmed 280 acres near a fast-growing suburb of Chicago. They agreed to sell the land to Ocean Atlantic (Ocean), which planned to develop it into a residential subdivision. The
Explain specific performance and when it is likely to be used.
Define anticipatory breach and give an example.
Explain when time is of the essence.
Krieg was involved in a work-related car accident. He hired the Warshafsky law firm to represent him in his personal injury claim. Riegleman provided chiropractic treatment to Krieg for approximately
Theresa and Ricky LaShelle divorced in 1985. Theresa was awarded the house, where she resided with the couple’s two children. She was responsible for paying the first mortgage contract on the home,
Audler filed a class action lawsuit based on a determination that CBC Innovis classified its property as being outside a Special Flood Zone Hazard Area (SFHA). The Flood Disaster Protection Act
Kethan’s employment contract with MedEcon contained a noncompetitive clause providing he could not work for a competitor for two years after leaving. It also had geographic restrictions. Kethan
The Dayton Country Club (DCC) offered many activities, but the right to play golf was reserved for members who paid more for the privilege. There was a waiting list for the right to golf, and people
What is a novation?
Explain the difference between a donee beneficiary and a creditor beneficiary.
What are the implied guarantees for paid assignments?
Indiana University basketball coach Bob Knight had a homeowner’s policy with Indiana Insurance Co. The policy had a “business exclusion” that excluded bodily injury that is expected or
MEMC supplied BP Solar with silicon powder used in manufacturing solar panels under a long-standing relationship. Seeking to get a long-term contract, BP Solar emailed MEMC to ask for a quote for 300
Popanz, the associate director of Peregrine Corp., was offered the position of director. She refused the position based on the oral promise made by the director when Popanz had been hired that she
Coca-Cola Bottling Company of Indiana (Coke Indy) had an agreement with Babyback’s International, Inc. (BBI), under which Coke would pay BBI to arrange for coolers to display the companies’
The Fujiis told Nakamura they could not pay their daughter’s tuition at USC and asked him to pay “certain tuition invoices” for her. He orally agreed in exchange for their express promise to
Flexdar manufactured rubber stamps and printing plates and in the process, used the chemical trichloroethylene (TCE). When it was discovered that TCE was present in the groundwater around the plant,
Describe three exceptions to the parol evidence rule.
What is the principal objective of the rules of construction in interpreting written contracts?
What is the general effect of a failure to comply with the statute of frauds?
The Fort Johnson Baptist Church sponsored a youth trip to do missionary work. The trip ended with a whitewater rafting excursion. The youth pastor made the arrangements, and the youths were required
The Harrises claimed to be victims of a fraudulent home improvement scheme perpetrated by Green Tree Financial Corp. Green Tree recruited home improvement contractors, told the contractors to obtain
Alexander had a seventh-grade education and had worked more than 20 years as a heavy equipment operator. He attended an orientation meeting with Anthony, Int’l., where he was given a standard form
Shaffer, an employee of Home Paramount Pest Control (Home), signed an agreement with a provision that prevented him from working or being involved in an manner in any business involving pest control,
Over 14 months, Perez signed five rent-to-own contracts with Rent-A-Center (RAC) to buy used furniture, a used washer, a new dryer, a new computer, a used DVD player and TV, and a used large-screen
Neiman was found guilty of illegally practicing law. Once out of work he suffered from bipolar disorder. He sought disability benefits under a disability insurance policy designed to compensate for
Explain a contract of adhesion, and give an example.
What is the difference between a revenue-raising statute and a regulatory statute, and what is the contract effect of that difference?
What are usury laws and what effect do they have on a contract?
A retailer opened a baseball card store. The shop was very busy on opening day, so the retailer got a clerk from the store next door to help out. A boy came in and asked to see an Ernie Banks rookie
Keith and Cross were employees of CBS. They told their supervisor, Jacobson, about their idea of forming an independent company to provide video promotion spots. Jacobson was in charge of selecting
Cottey was working for a hospital when it was merged with another company. He was offered an attractive financial package in order to get him to stay. Part of it was a plan that provided a large
Stambovsky, to his horror, discovered that the house he had recently contracted to buy was commonly reputed to be possessed by poltergeists. Ackley, the seller of the house, had widely publicized
Indiana’s lottery included a scratch-off game called Cash Blast. The lottery posted information about the number of prizes not yet claimed on its website. The odds of winning each prize ranging
What is puffery and how does it affect a contract?
What is fraud in the execution?
A minor bought an Ernie Banks baseball card from a baseball card store. The card was marked $12, and the inexperienced clerk who sold it did not know the store owner, who was gone at the time of the
The Home Savings and Loan Association loaned Haith money to refinance her mortgage and remodel her home. Haith was later adjudicated incompetent, and a guardian was appointed for her. The guardian
Patricia and William had a child, Gabrielle. Patricia had custody, and William was ordered to pay child support. When Gabrielle was ready to apply for college, William agreed to provide her with
Jessica Stamm was 16 and an aspiring model. She went to New York City to get representation in that market. During the trip, she entered a modeling contest and won. As a result, she and her mother
In 1996, Kobe Bryant was a 17-year-old high school basketball star. He declared his intention to forgo college and enter the NBA draft. Score Board, Inc. (SBI) contacted his agent about making a deal
Trent Woodman’s fifth birthday party was held at Bounce Party, an indoor play area with inflatable play equipment operated by Kera. During the party Trent jumped off the slide and broke his leg.
Dodson, 16, bought a truck for $4,900 in cash from Shrader. After driving it for nine months, he took it to a mechanic to check out a problem and was told there was a burned valve in the engine.
Explain the concept of necessaries and how they are determined.
What is emancipation, and what effect does it have on a contract?
Explain the reasoning behind requiring capacity
When American Energy Services (AES) was formed, it soon hired eight employees. These employees said at an operational meeting that they were concerned about the continued viability of the company.
David leased an apartment from Double H from July 1995 to July 1996 for $1,473 per month. After that, he continued to live in the apartment on a month-to-month basis. In 2003, Double H notified David
Joe was a 48-year-old wealthy businessman when he began dating Celeste, 22. He asked her to move in with him, but she refused, saying she didn’t want to do it unless they were going to have a
Slattery, an independent, licensed polygraph operator, was employed by law enforcement authorities to question a suspect. During the testing, which was conducted over two days, the suspect confessed
On February 1, Zhang contracted to buy Sorichetti’s house and some furnishings. On February 3, Sorchetti told Zhang that he was terminating the sale in order to stay in the house a little longer.
After McBee and Nance began dating, McBee had financial difficulties, and Nance gave her various cash loans. McBee signed a promissory note for $15,000, secured by a deed of trust on her house. After

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