1. You are the chief executive officer of Money Games Inc. (MGI), which has begun to market Borrow & Spend, a video game set in the world of finance. To buy ads, MGI borrows $50,000 from First Savings Bank. On MGI’s behalf, you sign a note for the loan and offer its accounts receivable as collateral. You sign a security agreement that describes the collateral. The bank does not file a financing statement. Has the bank’s security interest attached? If so, when? 2. In the video game Fun with Fund$, the goal is to correctly calculate debt, identify the debtors’ assets, prioritize the creditors’ interests, and accurately balance these categories to come to a financial resolution. In one segment, Agile Corporation borrows $1 million from Hi Finance Company (HFC). Agile signs a financing statement that describes the collateral—its inventory and proceeds—and HFC files the statement in the appropriate state office. Using the same collateral, Agile later borrows $500,000 from Metro Bank, which files its financing statement. Agile defaults on the loans. Metro claims that at the time of its loan it was unaware of HFC’s interest. Between these parties, who has priority to the collateral?
> Do businesses have an ethical duty to use enhanced security measures to protect confidential customer information? Why or why not? For example, if an employer allowed its employee to store customers’ unencrypted personal information on a laptop outside o
> Because business controls so much wealth and power, what duty does it arguably have to society?
> 1. To whom might a corporation owe a duty? 2. What must a corporation do if it finds itself subject to conflicting duties?
> When a contract has been executed, what must a minor do to disaffirm it?
> How does a corporation’s investment in a political or social agenda affect its duty to its shareholders?
> Does a company have a duty to act in socially or politically beneficial ways?
> Why would a corporation prefer to be seen as ethical?
> In negotiating a business deal, is “strategic misrepresentation” permissible?
> What are reasons for unethical business behavior?
> If justice is defined as the fair, impartial consideration of opposing interests, are law and justice the same thing?
> How does a law come to be an expression of an ethical principle?
> Identify and describe remedies available in equity.
> Discuss the differences within the classification of law as civil law and criminal law.
> What is the Uniform Commercial Code?
> Are minors legally bound to every contract that they enter into?
> 1. What is the supreme law of the land? 2. What are statutes? 3. What are ordinances? 4. What are administrative rules?
> What is stare decisis? Why is it important?
> What is the common law?
> What is the primary function of law?
> What are some of the significant variations in the practical application and effect of contract laws among nations?
> What are some of the differences among nations’ judicial systems?
> Do U.S. discrimination laws apply in foreign countries?
> How does the Sherman Act affect international business?
> What are some of the differences among common law and civil law systems?
> Are common law and civil law systems wholly distinct?
> Can a minor enter into any contract that an adult can?
> What is the difference between expropriation and confiscation?
> Discuss the act of state doctrine.
> 1. How is the principle of comity applied? 2. What other considerations can take precedence over comity?
> What is the principle of comity, and why do courts deciding disputes involving a foreign law or judicial decree apply this principle?
> 1. OptiAmp Corp. promises you that its electrical equipment will meet the needs of any venue from a stadium to a café. You buy the equipment for Playtime, your urban rap club, but it is not sufficient to power the lighting, heating, and refrigeration sys
> 1. For the Summer Solstice Symphonic Symposia—a series of workshops for composers and musicians—you order fifty Tundra-brand cellos from The String Instrument Source, Inc. The Source confirms your order in writing. On the last day to ship the order, the
> 1. Sassy Brass Instrument Co. owns a warehouse where it stores its inventory of band and orchestral instruments. In your capacity of band director for a school district, you order seventy-six trombones from Sassy. The seller identifies the goods to be sh
> 1. As a beginning songwriter and performer, you are convinced that a certain model of electric guitar is what you need to turn the musical world on its ear. Chick’s Music Store advertises the item but because the store is sold out of the guitars when you
> 1. With the profits from Sportz!, a successful pop-rock album, you make a down payment on an isolated ranch on which you arrange for the construction of a sports park. The park includes grassy fields and paved courts, indoor and outdoor pools, and skate
> 1. You and your country group Haze perform before an enthusiastic crowd at the Idyll County Fair. Jack, the owner of a local club, sees you perform and likes what he sees. Without a written contract, Jack begins to support your group, arranging gigs, col
> When is a contract so ambiguous that a court may have to interpret its terms?
> 1. You begin your career in music as a keyboardist, writing songs for Lifelong, a faith-based rock group. With success comes the opportunity to record for Masterworx Studios, where you pick up the skills of a recording engineer. Now, as a sought-after pr
> 1. You own Chords, a music store. You have a basic knowledge of bookkeeping—you can balance a checkbook—but you are not an accountant. Dana, a local bass guitarist and entrepreneur, offers to buy Chords and asks about its finances. Using bills and receip
> 1. As the keyboardist for Mirror Image, you move with the band to New York as part of a six-album recording and performing agreement with Omni Music, Inc. Perla, an accountant licensed in California, misrepresents to you that she is licensed in New York.
> 1. On May 1. Franco sells you, a minor, an electric guitar and amplifier. On June 1, you attain the age of majority. On June 5, Franco is offered a considerably larger sum of money by Garth for the instrument that he sold to you. Franco offers to return
> 1. Gerard, an events promoter and coordinator, promises to stage a concert for the benefit of Kids Care, a charitable organization dedicated to helping disadvantaged youth. In reliance on the anticipated receipts, Kids Care contracts for the construction
> 1. In your capacity as talent coordinator for Ideal Concert Promotions, Inc., you offer the James Brothers, a new, suddenly popular pop group, a certain price to play the Luminous Center Stadium on a certain date. The offer states that it will expire thi
> 1. You own a small club—Sammy D’s—that features local musicians. On Tuesday night, you post a notice promising to pay $100 to any musician who takes to the stage for one hour. Tyler steps up to the microphone and opens a sixty-minute set with a cover of
> 1. You are an extraordinarily successful performing artist with three platinum albums, including “I M GR8,” which spawned “Top o’ Da Heap” and four other hit singles. You visit your local Car Sales Showroom and choose a couple of rides. To pay for the ve
> 1. You download apps to play a variety of video games on your cell phone. You find these games so addictive that despite increasingly negative consequences—a car accident, a divorce, and the loss of your job—you continue to play incessantly. As your debt
> 1. In the video game “Block x Block,” your avatar Blockhead is the executive loan officer for Alpha Mortgage & Credit Company. At this point in the game, Carlotta asks to borrow funds from Alpha to start a new business. She has $100,000 equity in her hom
> When might reliance form the basis for contract rights and duties despite a lack of consideration?
> Under the Foreign Sovereign Immunities Act, what comprises a foreign state?
> 1. The winning objective of the video game Acquisition is to attain high market value by acquiring other companies’ assets. As the tech star-up Alpha Beta, you realize wild success in the market and immediately begin to buy competitors, as well as other
> 1. The video game Phantasm requires two or more players who confront malicious phenomena—ghosts, zombies, and so on—and combine their abilities to capture the bad guys for delivery to university research centers. In the game, you orally agree with your p
> 1. In the video game “Bills & Coins,” each player tracks income, spending, investments, and taxes in a simulated real-world environment to exceed the net worth of the other players with whom business is transacted. Your character, “Money Man,” is given t
> 1. You are playing “Kill ‘Em Again Inc.” in which your avatar, Nick, drives around the streets of Urban City to duel zombies. To play, the game requires that you buy a ride. So you sign this on-screen instrument. May 1, 2018 I promise to pay t
> 1. You want a copy of “Banx & Chex,” a computer game that simulates financial transactions, with the goal of accruing as much virtual profit as possible. Without the real money to pay for it, however, you “borrow” one of your roommate’s paychecks, sign h
> 1. You create a new video game-playing device that you call “The Gem.” Its revolutionary twist on other game devices is that The Gem can respond to a player’s eye movements, making a handheld joystick or similar control almost unnecessary. At this point,
> 1. RaceCar2010 is a video game that features races in virtual locations throughout the United States—in the clouds above Hawaii, down the slopes of the Rockies, along the length of the Appalachian Trail, among others. In each contest, your opponent drive
> 1. In the video game Brainiac, each player solves puzzles and answers questions based on information displayed on the screen. The quicker and more accurate answers score more points. As the creator, developer, and seller of Brainiac, you hope to sell mil
> 1. You are playing AniMax, a video game in which you assume the identity of “Max,” a resident of New Jersey with the power to morph into vicious animals to battle a variety of super- and sub-human beings. As a Siberian tiger, you confront a series of dea
> What is a release?
> 1. You’re playing Sun Ascendant, a video game in which the sun has burned out, and your goal is to accomplish certain tasks, advance to different levels, collect eight “Golden Orbs,” and ultimately restart the fire in our sun. The difficulty of mastering
> 1. You see a spot in the market for a video game outlet. You open “GameBox” to profit from local sales, rentals, and exchanges. Hott Games Company promises to ship a certain assortment of games and gear for your grand opening. Despite this contract, Hot
> 1. You are playing the video game Fire Fights, in which your character Frank the Firefighter speeds from one fiery inferno to another, answering calls to douse towering flames, rescue trapped inhabitants, and save burning structures from destruction. In
> 1. You go to Games Galore Store to buy a copy of the latest installment in the “Furious Finale” video game series. It is available only at the manufacturer’s price, which is the same price at all local outlets, and not otherwise available. Previous insta
> 1. You are playing the video game Risky Hazards, in which your character is an inspector for the Occupational Safety and Health Administration. In one scenario, you enter what appears to be a deserted warehouse to find a small group working in a dimly li
> 1. In the video game Ancient Warriors, your character combats evildoers from the past. Each warrior is more difficult to overcome than its predecessors. By skillfully using the weapons and attributes that accrue to your character after a victory, however
> 1. To develop what you believe is a terrific idea for a video game, you lease 50,000 square feet in an office building from Commercial Property, LLC, under a written five-year lease. Your goal is to put the game on the market within two years. Several mo
> 1. The video game Storm features different sports played in the midst of natural disasters—skiing in a blizzard, running a marathon under the belch and plume of an erupting volcano, and so on. In one segment, a tornado fells a forest of trees. Your goal
> 1. The video game Myth is based on the tales of Zeus and other Greek and Roman gods and goddesses. One of the most popular segments of the game begins with the release of evil from Pandora’s box with you, the player, assigned the task of rounding up the
> 1. In the video game Corporate Cowboy, your task is to investigate complaints of wrongdoing on the part of corporate directors and officers, decide whether there is a violation of the law, and deal with the wrongdoers accordingly. Jane, a shareholder of
> Identify two situations in which agreements lack consideration.
> 1. You are playing the video game Captains of Industry in which the objective is to attain a dominant position in an industry without violating, or creating the appearance of violating, the law. To begin play, you make a good faith effort to incorporate
> 1. You are playing the video game Discrimination! in which a player accrues points by correctly spotting, reporting, and resolving instances of discrimination in various workplaces. In one scenario, set in a packing plant owned and operated by Savory Tre
> 1. You are playing Mind Game, a video game that involves a quest through the unexplored realms of the imagination, attempting to reach Level 14. It is difficult to advance from level to level because the obstacles that must be overcome and the objectives
> 1. One minion, Delilah, does not return with gems and gold, but brings back three contracts. Acting within the scope of her authority, she contracted with Evon, who knew your identity at the time; Felipe, who knew that Delilah was acting on behalf of som
> 1. Credit Check is a video game that charges its players with accurately identifying and correcting problems with checks and bank accounts. You choose to play the game as the character “Financial Wizard.” You are shown the following item, on which the si
> 1. In the video game Business Planet, your avatar flies in a private jet around the world, making deals. The play involves the application of legal doctrines, economic principles, and cultural values to outwit competitors in global markets and profit han
> Could there have been “good” reasons for the price-fixing agreement in this problem?
> Why is a price-fixing agreement considered a per se violation of the Sherman Act?
> Sometimes, an administrative agency will issue a new rule, and before the rule is enforced, a business firm or an individual will sue the agency to postpone or even prevent the enforcement. Why would individuals or organizations prefer to sue an agency
> What is the underlying social policy that prompts an administrative agency to rule against private individuals, business firms, organizations, or institutions such as the ADA in this problem?
> How can something be the basis of a bargain?
> When heirs challenge particular provisions in wills, courts are often reluctant to rewrite the wills and instead attempt to interpret wills to give effect to the testators’ intent, regardless of how inequitable the results may seem. Why would a court be
> If Fran had written her will or the list of charities on a mere scrap of paper or a paper bag, would both documents still be valid?
> If Zenith had moved off the property before the end of the lease term with no intent of returning, could the landlord have retaken possession immediately?
> Can a lease require that a landlord give the tenant notice?
> Suppose that the government, instead of Santiago, engaged in the excavation next door to Rosa. Could she stop its operation or obtain damages?
> Suppose that instead of Santiago for a neighbor, Rosa’s vineyard had been located next to a public power utility. If the utility sought to build a power substation—with its unceasing hum and night-long bright lights—on its land, could Rosa obtain an inju
> Suppose that in Benjamin had run a long extension cord from a vacant apartment into his own and connected his appliances to the cord so that he used only the electricity coming through the cord. Benjamin disconnects the cord when the apartment is rented
> Should a bailee be permitted to limit its liability?
> If an employee copies a list of his or her employer’s customers and uses the list to start his or her own business, has the employee committed a theft of personal property?
> Suppose that Tanya had taken out an insurance policy on Miguel’s life before they had divorced. On his death, could she have recovered under the insurance policy?
> What is “something of legally sufficient value”?
> Would the court have ruled that Tanya had an insurable interest in the house if she had not invested money in it?
> What action might Dakota have taken to avoid becoming a victim in this problem?
> Is a debtor's failure to make a payment on a student loan or present inability to make payments sufficient to undue hardship?
> How does the Truth-in-Lending Act (TILA) protect borrowers and curb abusive practices by mortgage lenders?
> If Adrian had painted the Swords’ car, instead of their cabin, and had kept possession of the car until they paid for the work, would his lien have had priority over, for example, a bank that financed the purchase of the car?
> Does Adrian’s lien have priority over, for example, a bank that financed the Swords’ purchase of the cabin?
> In the context of a takeover, or any other circumstances, how do directors best fulfill their fiduciary duties to shareholders?
> Suppose that the target’s board believes the tender offer is inadequate. What might the board do in response to the offer?
