Questions and Answers of The Legal Environment Of Business

Why are e-contracts important to present and future businesspeople?
What is meant by “compensatory damages”?Explain.
Explain what is meant by the “rescission” of a contract.
Under the UCC, what remedies are available only to (a) the buyer and (b) the seller when there is a breach of contract?
Explain what the two significant differences are between the CSIG and the UCC.
A builder agreed to build 78 houses in eight months at a fixed price. Due to bad weather conditions and unexpected labor shortages, the work took 22 months and cost $107,000 more than
A drummer engaged to play for a pop group was contractually bound to work seven nights a week. After falling ill, Jack’s doctor advised he work only four nights a week. It became necessary for the
A well-known author was to write a book series on the theme of “costumes and beautiful queens” for a royalty payment of $1,000 on its completion. After only half the books in the series were
This chapter briefly introduces the UCITA as a means of regulating the increasing volume of e-commerce and electronic contracts. Not everyone, however, is in favor of the UCITA. Using the Internet,
What is the difference between a conditional privilege and an absolute privilege?
List and define the four privacy torts.
A company has employed an independent contractor to construct a reservoir on its land. There were old disused mining shafts under the reservoir site and they led to an adjoining coal mine. The shafts
Alan’s house was next to a cricket field, which was the property of a cricket club. The members’ children were allowed to play in the field, and many boys gathered there to play cricket every
John and Jack were residential students at a school, owned by Stark, for juvenile delinquents.One of the wardens employed by Stark was sexually abusing the adolescents in his care and when this came
When Montgomery, a customer at Gondolier restaurant, became intoxicated on the alcoholic beverages he was served, the restaurant staff called for a taxi to take him home. The taxi driver tried to
Now that you have a basic understanding of tort law, use the Internet and your critical thinking skills to evaluate arguments for tort reform. Find at least two websites, other than those that
What are the alternative theories of liability on which product liability cases are based?
What are the two situations in which businesspeople are concerned with the transnational aspects of product liability law?
At the Legacy Tobacco Documents Library, legacy.library.ucsf.edu, you can find internal documents from the files of top tobacco companies. Within this site, at
What are restrictive covenants and when are they used?
What are the main advantages and dangers of purchasing real property abroad?
Kauffman owned a bird named Salty from 1996 until 2005, when the bird died while under the care of Dr. Langhofer. Kauffman sued Langhofer for professional negligence and wrongful death, and sought
This chapter introduced you to government regulation and protection of various forms of property.One such regulation and protection used by the government is zoning. Using the following websites
What are the primary criteria for granting a copyright?
What is TRIPS and what does it protect?
A firm employed an accountant to advise clients on accounting. He began to offer enthusiastic lectures on the topic after working hours, and later he published these in a book. His employer had
To demonstrate your knowledge of the various types of marks, search the Web and find two examples of each of the following types of marks:product mark, collective mark, service mark, and
What are the major differences between agency law in the United States and(a) agency law in Japan, and (b) agency law in the European Union?
Paul entered into a contract with John Brothers Corp. to buy furniture on behalf of Global Motors. Global Motors instructed Paul to use his own name and not to disclose to John Brothers that Paul was
Using the first website that follow, or another website of your choosing, find a recent case involving principal–agent law. Read the case and determine the issue being decided, the court’s
Identify the primary differences between a sole proprietorship and a general partnership.
Explain how the ease and expense of formation differs among the various alternative forms of business organizations.
Explain the questions one would need to consider before changing a domestic company into an international one.
Why is a joint venture important for raising capitol? Explain.
Richard Filip owned Trans Texas Properties.Tracy Peoples was an employee of the company.In order to obtain credit to advertise in the Austin American-Statesman newspaper, which was owned by Cox
This chapter introduces you to three theories of ethical thought and five schools of social responsibility.Explore how the three theories of ethical thought are put into practice. Using the Internet,
Before deciding to conduct business in another nation-state, a business manager should prepare a country analysis. What variables should go into this analysis?
As this chapter demonstrates, there are many important issues to consider before engaging in international business. Pick a country that you know little about, and using the website www.lib
Look at the following instances and explain whether the UCC applies to the following contracts for the sale of goods. Explain with reasons.1. A grocery store buys oranges from an orange dealer.2.
Dona and Jack enter into a written contract wherein Dona will sell Jack books for $3,000. The contract states that it is their complete and final agreement. However, when Jack receives the books, he
This chapter provides information on the numerous requirements of traditional contract law. New ways of deciding contract disputes, however, may be needed as the Internet allows more people to enter
What are the defendant’s Miranda rights?
What are the similarities and differences between the treatment of whistleblowers in the United States and in the United Kingdom?
Rawlsworth is an employee of General Sam Corporation. One of Rawlsworth’s jobs is to monitor the amount of particular pollutants and to record the results on a form that is submitted to the
Teresa Chambers worked as the Chief of the United States Park Police from February 10, 2002, to July 9, 2004, when she was removed from her position. The United States Park Police is a component of
You have now learned several approaches to deter white-collar crime in this chapter, including federal laws such as RICO and the False Claims Act, individual state laws, and the proposed GPD.There,
How do individual codes of ethics help to overcome the power of groupthink?
According to the United Nations, what are the four objectives that should be included in codes of conduct of international corporations?
Disbarment of Lawyers Egil Krogh, Jr., was admitted [to practice] law in the state of Washington on September 20, 1968. On February 4, 1974, he was suspended as a result of his having been convicted
How does the Supremacy Clause of the U.S. Constitution affect the ability of the U.S. states to pass legislation?
This chapter introduces you to the many constitutional principles that govern business activities.One such principle is free speech and the extent to which it applies to commercial speech. For
You have now been introduced to the critical thinking steps that create a working strategy to evaluate legal reasoning. In the same manner that you evaluated United States of America v. Martha
Contrast the sociological school’s definition of law with that of the feminist school.
What is the main criticism of the critical legal studies school?
Describe how the legislative branch of government is a source of law.
What are the steps Congress follows when passing a law?
Imagine you are a sitting federal judge, and this case comes before you. A woman (x) charges another woman (y) with rape. Both have been partners for a five-year period. Both presently live in
Although there is debate over the various schools of jurisprudence, not all options are of equal merit.In that the law is meant to offer protection and to guide society, not all philosophies can best
This chapter introduces you to seven different schools of jurisprudence, each with distinct elements. Yet, the various schools also share a number of similarities that often blur the lines separating
In what significant ways does the German judicial system differ from the American judicial system?
What common characteristics do all trial courts share?
An engineer had formerly been involved with manufacturing nuclear reactor parts that were to be put onto U.S. Navy vessels. However, he was fired after superiors heard he had been complaining to
Martha and Bill enter into a business agreement with each other without an arbitration clause. A dispute has taken place between them over a trifling issue and they do not want to go to court over
Two parties enter into a valid and enforceable business contract that includes an arbitration clause and the name of the arbitrator. Consider two situations:(a) A dispute takes place between the
In 1999, American Express (AE) began requiring customers to sign a waiver for their right to sue the company through a class action lawsuit.However in 2003, a group of AE customers sued the company
Arbitration in the Malpractice Arena Recently, a group of New Jersey gynecologists have come under fire for requiring their patients to sign a binding arbitration agreement before treating them. The
After reading this chapter, you should have an understanding about the advantages and disadvantages of ADR. Using the Internet, find a private mediation and arbitration firm, such as National
Grumman Systems accused Data General of violating the Sherman Act based on Data General’s tying the sale of its copyrighted software with a requirement that the buyer enter into an agreement to
Little Canyon Mountain had been an “open-use” park adjacent to private properties since 1985. In 2003, a federal agency’s environmental assessment resulted in a plan for limited
In response to outbreaks of mad cow disease, the Food and Drug Administration and the U.S. Department of Agriculture (USDA) implemented a number of regulations to protect American consumers and
Stoda Corporation operated a warehouse used by Singer to store 133 air-conditioner units. Upon storing the goods in the warehouse, officers and managers of Singer inspected the warehouse and observed
A common element in cases where corporate executives are found guilty of criminal charges related to corporate activity is the lack of a systematic compliance procedure in the company’s
Bear Stearns had done business with Wyler, a Dutch businessman. A venture capitalist and resident of the Netherlands, Wyler kept offices in Toronto and Barbados. After the relationship soured, Bear
From 1995 to 2001, McDonald’s, the famous fastfood chain, sponsored promotional games includin “Monopoly Games at McDonald’s,” “The Deluxe Monopoly Game,” and “Who Wants to Be a
In October, Northwest Airlines declared Chapter 11 bankruptcy and sought to renegotiate a collective bargaining agreement with the flight attendants’ union. The contract would need to be changed
IBM manufactures and sells computers and related equipment. It also has a leasing division. Greyhound was a leasing company that would purchase “second generation” computers from IBM at up to a
Electranta is a power company owned by the Colombian government. Electranta became involved in a dispute with TermoRio, a U.S. company doing business in Colombia. The dispute was arbitrated
The world-famous Walt Disney World Resort in Central Florida consists of 47 square miles of land, or about 30,000 acres. It is twice the size of Manhattan many thousands of acres of land without the
In 1957, Hibbard decided to clear his land in order to open a trailer park. Because there was no clear boundary between Hibbard’s property and the adjoining property to the east, Hibbard cleared
Koerner, Inc., was found to have violated a copyright owned by Burdick. Burdick brought suit against each of Koerner's directors on the basis that the directors had financially benefited from the
When an entrepreneur launches a new venture-like Harvard sophomore Mark Zuckerberg did when he invented "thefacebook" during the 2003-2004 academic year-he must also figure out what type of legal
H. Ross Perot became the single largest shareholder and a director of General Motors as a result of GM’s acquisition of Perot’s highly successful company Electronic Data Systems (EDS). A rift
The secretary of the Mine Safety and Health Administration proposed a new rule intended to increase the safety of workers by ensuring proper ventilation in mines. The proposed rule required a minimum
In the Theory to Practice problem, the principals have made a series of errors that could result in the piercing of the corporate veil. Corporations of all sizes can make similar mistakes if they are
Bradley was an African American man who worked as a delivery man for Pizzaco, doing business as Domino’s. He was fired for noncompliance with Domino’s no-beard policy. The no-beard policy was
The Equal Pay Act of 1963 requires equal pay for equal work, yet by all accounts a significant wage gap based on gender exists in both the private and public sectors.57 By way of example, when the
Four physicians formed an LLC to operate a medical practice. They capitalized the venture with a bank loan to the LLC. Each physician signed a personal guarantee to secure a proportionate part of the
Karen Lynn, Inc. (Lynn Corporation), was a wholly owned subsidiary of Fashion Enterprises, Inc. This meant that the sole shareholder of Lynn Corporation was the corporate entity of Fashion
The Equal Pay Act of 1963 requires equal pay for equal work, yet by all accounts a significant wage gap based on gender exists in both the private and public sectors.57 By way of example, when the
Casserly and the other plaintiffs were employed as physician assistants at the State Correctional Facility at Canon City, Colorado. Each was assigned to a single facility for full-time duties
WinCo operates a grocery store in California on a 10-acre lot. In accordance with company policy, WinCo allows no solicitors on its premises except for allowing scouts to sell cookies. When a local
All employees who were hired by Federal Express (FedEx) as long-haul delivery drivers were required to sign an operating agreement that identified the driver as an independent contractor. Under the
Acme Refining collects, melts down, and resells scrap metal. In producing its cars, General Motors (GM) creates a massive amount of scrap metal that must be removed. Acme contracted to purchase and
Bonifay and Fordham bought a box of .32-caliber bullets from a Walmart in Florida. Four hours later, the two men robbed an auto-parts store and killed Coker with those bullets. When they bought the
In 1994, Aaris injured her right knee practicing a gymnastic stunt called the “cradle.” The stunt requires that two cheerleaders face each other to form a “base” and launch a third
Thus far, this chapter has explored the nuts and bolts of various aspects of agency law, including an agent’s express and implied authority to negotiate legally binding contracts on behalf of a
Legally astute managers are able to limit their company’s risk by recognizing potential liability during business planning. Spotting potential legal issues and understanding when to contact counsel
GE Marquette Medical Systems (GE) contracted with Biomedical Systems Corp. to manufacture a new medical instrument based on technology owned by Biomedical. The contract required GE to obtain
Lexmark is a manufacturer and distributor of ink cartridges for computer printers. It introduced a rebate plan called Return Program Cartridges whereby a consumer could receive a “prebate” (i.e.,
Mary Kay Morrow was hired by Hallmark in 1982. At the start of 2002, while Morrow was working as an associate product manager, Hallmark adopted, effective January 5, 2002, a policy applicable to its

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