Legal Environment of Business BUS 216

Assessment #3

Hypothetical #1:

Betty bookkeeper works for an accounting firm. Short of cash after her divorce, Betty takes money in the firm's escrow accounts and uses the money to pay her personal bills. After she receives her paycheck, she returns the money she took from the escrow accounts.

QUESTION #1: (3 points)

Did Betty commit a crime? If so, what crime(s)? Explain your reasoning.

QUESTION #2: (2 point)

What liability, if any, does the accounting firm have for Betty's actions?

QUESTION #3: (2 points)

Can the accounting firm fire Betty after discovering her actions? Why or why not?

QUESTION #4: (3 points)

If Betty brings a wrongful termination lawsuit against the firm, who is most likely to win? Why?

Hypothetical #2:

POM Juice invested heavily into research to show the health benefits of drinking pomegranate juice. Unfortunately, the research did not show any noticeable health benefits. POM Juice advertises the money it spent on the research, but not the results. Instead, POM says that it is "hopeful in the promising results of future research."

QUESTION #5: (1 point)

What agency enforces consumer laws?

QUESTION #6: (2 points)

Did POM violate any consumer laws? If so, what laws?

QUESTION #7: (3 points)

Apply the cause of action you identified when answering Question #6 to the hypothetical.

QUESTION #8: (3 points)

Is POM likely to defend itself successfully? Why or why not?

QUESTION #9: (1 points)

What legal alternatives did POM have?

Hypothetical #3:

Lourdes Chavez was suffering from dementia and decided to grant her son, Carlos Chavez, the family home. She wrote a contract that stated: "Carlos must care for his mother, Lourdes Chavez, and allow her to stay in the home. If Carlos sells the home, he has to pay his mother Lourdes Chavez $125,000, his brother Tomas Chavez $100,000, and his sister Carmen Chavez $100,000."

Eight years after his mother died, Carlos sold the house. He did not give Tomas or Carmen any of the money.

QUESTION #10: (3 points)

What are Tomas and Carmen under the contract? (Note: this is not about their status as heirs)

QUESTION #11: (3 points)

Is there an issue of capacity here? Why or why not?

QUESTION #12: (4 points)

If Tomas and Carmen sue Carlos, will they likely succeed? Why or why not?

Hypothetical #4:

Lisa was a successful bartender at a casino in Reno for 20 years. She never had any disciplinary actions and is a favorite with repeat customers. The bar owners adopt a "grooming policy" that requires employees to wear revealing uniforms, to wear makeup (if female), and to groom facial hair (if male). Lisa does not like the new policy and refuses to comply. As a result, the casino terminates her employment.

QUESTION #13: (1 point)

What cause of action should Lisa bring against the casino?

QUESTION #14: (3 point)

Apply the elements of the cause of action you identified when answering Question #13 to the hypothetical.

QUESTION #15: (3 points)

Who is likely to winLisa or the casino? What elements are the easiest to prove? What elements are the hardest to prove?

QUESTION #16: (3 points)

If Lisa tells customers why she was fired and to stop going to the casino, can the casino successfully sue Lisa for lose of business? Why or why not?