Questions from Business Law

Q: Commercial Union Insurance Co. (CU) insured Redux, Ltd

Commercial Union Insurance Co. (CU) insured Redux, Ltd. The contract made CU liable for fire damage, but stated that the insurer would not pay for harm caused by criminal acts of any Redux employees....

Q: Stephen Muka owned U.S. Robotics. He hired his

Stephen Muka owned U.S. Robotics. He hired his brother Chris to work in the company. His letter promised Chris $1 million worth of Robotics stock at the end of one year, “provided you work reasonably...

Q: Mary Price went for a consultation about a surgical procedure to remove

Mary Price went for a consultation about a surgical procedure to remove abdominal fat. When Robert Britton met with her, he wore a nametag that identified him as a doctor, and was addressed as “doctor...

Q: Hiring relatives of foreign officials for no-show jobs is a

Hiring relatives of foreign officials for no-show jobs is a violation of the FCPA. But what about hiring children of government officials into real jobs? Is that also a violation? The U.S. government...

Q: Located in Bath, Maine, Bath Iron Works builds high-

Located in Bath, Maine, Bath Iron Works builds high-tech warships for the Navy. Winning Navy contracts is crucial to the company’s success—it means jobs for the community and profits for the sharehol...

Q: Westinghouse sold uranium in long-term contracts at fixed prices,

Westinghouse sold uranium in long-term contracts at fixed prices, betting that market prices would be stable or fall (as they had been). But this was a bad bet: Uranium prices skyrocketed as a result...

Q: Jacobs Builders entered into a contract with Kent to build him a

Jacobs Builders entered into a contract with Kent to build him a home. The agreement stated that Jacobs would use only certain brand-name materials. Upon completion of the home, Kent discovered that J...

Q: Evans built a house for Sandra Dyer, but the house had

Evans built a house for Sandra Dyer, but the house had some problems. The garage ceiling was too low. Load-bearing beams in the “great room” cracked and appeared to be steadily weakening. The patio di...

Q: Krug International, an Ohio corporation, had a contract with Iraqi

Krug International, an Ohio corporation, had a contract with Iraqi Airways to build aeromedical equipment for training pilots. Krug then contracted for Power Engineering, an Iowa corporation, to build...

Q: Accountants do not have a fiduciary duty to their clients when performing

Accountants do not have a fiduciary duty to their clients when performing accounting services. Why not?