Questions from Business Law

Q: The accounting firm of T, W & S was engaged to

The accounting firm of T, W & S was engaged to perform an audit of Progate Manufacturing Company. During the course of its investigation, T, W & S discovered that the company had overvalued its invent...

Q: Mobley purchased from Century Dodge a car described in the contract as

Mobley purchased from Century Dodge a car described in the contract as new. The contract also contained a disclaimer of all warranties, express or implied. Subsequently, Mobley discovered that the car...

Q: J, B & J, CPAs, has audited the Highcredit

J, B & J, CPAs, has audited the Highcredit Corporation for the past five years. Recently, the SEC has commenced an investigation of Highcredit for possible violations of federal securities law. The SE...

Q: On February 1, the Gazette Corporation hired Susan Sharp to conduct

On February 1, the Gazette Corporation hired Susan Sharp to conduct an audit of its books and to prepare financial statements for the corporation’s annual meeting on July 1. Sharp made every reasonabl...

Q: John P. Butler Accountancy Corporation agreed to audit the financial statements

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 3...

Q: Colgate-Palmolive Co. produced a television advertisement that dramatically demonstrated

Colgate-Palmolive Co. produced a television advertisement that dramatically demonstrated the effectiveness of its Rapid Shave shaving cream. The ad purported to show the shaving cream being used to sh...

Q: Several manufacturers introduced into the American market a product known as all

Several manufacturers introduced into the American market a product known as all-terrain vehicles (ATVs). ATVs are motorized bikes that sit on three or four low-pressure balloon tires and are meant to...

Q: Sears formulated a plan to increase sales of its top-of

Sears formulated a plan to increase sales of its top-of-the-line Lady Kenmore brand dishwasher. Sears’s plan sought to change the Lady Kenmore’s image without reengineering or making any mechanical im...

Q: Onondaga Bureau of Medical Economics (OBME), a collection agency for

Onondaga Bureau of Medical Economics (OBME), a collection agency for physicians, sent the plaintiff, Seabrook, a letter demanding payment for a $198 physicians’ bill. In addition to demanding payment,...

Q: William Thompson was denied credit based on an inaccurate credit report compiled

William Thompson was denied credit based on an inaccurate credit report compiled by the San Antonio Retail Merchant’s Association. The Association confused Thompson’s credit history with that of anoth...