Before boarding an El Al Israel Airlines flight from New York to Tel Aviv, Tseng, a passenger, was physically subjected to an intrusive security search. Although not injured bodily, Tseng sued El Al for damages, asserting, among other charges, assault and false imprisonment. A federal court dismissed the case on the basis of the Warsaw Convention, a treaty that precludes a passenger from maintaining an action for damages resulting from personal injury when the claim does not satisfy certain conditions for liability. The Convention expressly does not “permit recovery for psychic or psychosomatic injury.” Will Tseng be successful in her suit? [El Al Israel Airlines, Ltd. v. Tsui Yuan Tseng, 122 F.3d 99, reversed] Principle of Law: Decision:
> Indicate whether each of the following statements is true or false. 16. In our country, the principles and ideals guarding our individual liberty and freedom are presented in the common law. 17. Amendments to the federal Constitution require approval, or
> Should the law distinguish between a reasonable basis for a warranty disclaimer and one that attempts to substantially negate the warranty?
> What is the primary objective of warranty disclaimers?
> In the case of a vague or indefinite written warranty, how can a court determine what such a warranty usually means in similar transactions?
> For more than 20 years, Harlick, a 38-year-old female, suffered from anorexia nervosa, an eating disorder. She was covered by her employer’s health insurance plan through Blue Shield, and was treated for her disorder through this plan. Her doctors then a
> Is it fair for a buyer to ask a seller to hold merchandise while the buyer shops for a better price?
> How might a buyer avoid pitfalls in buying from unknown sellers?
> How might a seller avoid pitfalls in selling to unknown buyers?
> Compare and contrast online auctions with actual live auctions.
> A contract for labor and materials need not be in writing, even if it is over $500. Does the buyer of the labor and materials enjoy the same level of legal protection as if the contract were in writing?
> Is it ethical for a person who is not a titleholder to act as one who has title to goods, thereby misleading a prospective buyer?
> How can a buyer in a store know whether he or she is dealing with a titleholder or a remote party? Does it make a difference? Generally, whom does a buyer hold responsible for problems?
> It seems that passage of title by estoppel might deny the rights of an innocent though inattentive property owner. Should a legitimate titleholder lose title because of his or her inattention?
> A contract stipulates that certain conditions must be met before title can pass. A seller might wish to hasten the passage of title to minimize the risk of loss and the cost of insurance to indemnify such losses. Consider a typical sales transaction and
> An important application of the concept of title relates to who is holding title when a loss occurs. Are there other ways of determining who should bear a loss in a business transaction?
> Quinlan, a 22-year-old female, specifically made known her wish not to have her life maintained indefinitely by the use of a breathing machine. After an apparent overdose of alcohol and drugs, Quinlan fell into a coma, suffering severe brain damage. Upon
> To protect consumers against their own impulsiveness and various questionable sales techniques, a number of federal, state, and local laws and regulations allow consumers to terminate a contract under certain conditions. Is it ethical for a consumer to t
> Death or disabling illness of a party to a personal service contract requiring a special skill or talent terminates the contract. How would a concert promoter, who had sold tickets and rented a hall, protect against a loss that would likely result from t
> The law provides a remedy for a party injured by the breach of a contract. But the usual remedy, a lawsuit that awards money damages, does not always give the injured party the level of redress appropriate to the situation. What other remedies are availa
> At times, one of the parties to a contract terminated by impossibility of performance suffers some injury or loss as a result. Should the law recognize this possibility and provide some form of redress?
> Contract termination by performance seems so final. Do you think that the parties to a contract should be given an opportunity to change their minds if circumstances change after the required performance? Why or why not?
> Under the law, a bankrupt person is allowed to retain certain property—including his or her residence. Is it ethical for a bankrupt person to use the law to avoid payment on his or her legitimate debts and still retain some, often valuable, property?
> What are some advantages of using a novation over a contract assignment?
> Under what circumstances could the duties under a personal-service contract be delegated?
> Should an incidental beneficiary to a contract have any legal recourse if the contract is terminated?
> Do you think a third-party beneficiary should be required to sign a contract as one of the parties involved?
> Yikes, a U.S.-based manufacturer of shoes, had plants in several countries in Southeast Asia and enjoyed considerable success in world markets as a result of a number of factors, including its excellent products, low prices, efficient production, low lab
> Describe the structure of our federal and state court systems.
> A person dies without leaving a will. The administrator of the estate refuses to pay the deceased’s debts on the grounds that there is no written evidence of the obligation. Comment on the ethics of this situation.
> Why must a contract that obviously cannot be completed within one year be in writing?
> A buyer places a deposit on an item valued at more than $500 but later wishes to cancel the order. Arguing that there is no written contract, could the buyer expect a refund of the deposit?
> Under the Statute of Frauds, an oral promise to take on the debts of another is enforceable in some states. Can you think of any other activities that might be legally acceptable despite the fact that they are not in writing?
> Even though the parol evidence rule prohibits any oral amendments to a contract, try to envision circumstances when this rule might be unreasonable.
> The Robinson-Patman Act prohibits price discrimination. What were the ethical reasons that motivated the passage of this federal statute?
> Zoning regulations have the effect of restraining trade because they limit the activities of certain kinds of businesses. Explain how society benefits from such limitations.
> Various federal and state laws are intended to encourage competition. Analyze and report on the benefits of competition to society.
> Enforcement of laws that are intended to protect the environment sometimes has unforeseen economic effects, such as plant closings and unemployment. How should society attempt to balance environmental and economic issues?
> Most states require people engaged in certain professions or businesses to be licensed. How do licensing requirements protect the public?
> Johnson, a passionate bicyclist, wanted to go into the business of manufacturing high-quality bicycles. He found that both labor and component parts were quite inexpensive in Taiwan. Even adding the shipping charges to the United States, it was economica
> Is it fair and ethical for a minor to take advantage of the protection accorded by the law to breach a contract made with a person who believed the minor to have reached the age of majority?
> If a contract is made by a responsible adult who later becomes mentally incompetent, is the contract enforceable by either party?
> The contracts of emancipated minors are usually considered legally binding. Give an example to illustrate why this is necessary.
> Is it fair that minors’ contracts are voidable, whereas those of adults are legally binding?
> The minimum age required under the law for obtaining a driver’s license is usually lower than the age for drinking or voting. What is the rationale for this?
> Agreements between parties of unequal bargaining power are known as contracts of adhesion. For example, an apartment house owner presented a tenant with a lease renewal that contained additional and burdensome provisions. The tenant, finding it difficult
> Valid consideration is not necessarily either the performance of an act or the payment of money. One party to a contract, for a variety of reasons, may wish to exchange his or her promise to pay money for a promise of inaction from the other party. Becau
> The most common form of valid consideration is the promise of money by one party for the promise of an act by another. Why is a mere promise deemed adequate in the eyes of the law when consideration based on completed actions might result in fewer disput
> Because valid consideration is an exchange of promises, it is obvious that a promise to commit an illegal act is not valid consideration. Describe a promise to commit an illegal act that is not legally acceptable.
> Critique the various exchanges of promises that are legally regarded as acceptable consideration. Your analysis should concentrate on whether each type of consideration facilitates or hinders the execution of a contract.
> Is the failure to disclose material facts or information to a prospective buyer fair and ethical?
> What criteria should a court use in determining whether a contract is shockingly unjust or unfair and thus unconscionable?
> When does an abuse of power to control the actions of another because of a special or confidential relationship go beyond undue influence and become duress?
> Why does the law provide that a mistake must be mutual, and not unilateral, in order for a contract to be voidable?
> How should a court decide whether a particular term in a contract is material?
> Describe the circumstances under which silence on the part of an offeree will be a valid acceptance. Does this seem reasonable and fair?
> Why are newspaper advertisements not considered valid offers?
> Do you think it is unethical for an underage person who looks much older to enter into a contract with another person who in good faith expects the underage party to fulfill the terms of the contract?
> For many years the law has required that certain kinds of contracts, such as those involving $500 or more, be in writing to be enforceable. Should the amount of $500 be increased to reflect the effects of inflation?
> Certain business and personal transactions are neither oral nor written but are nevertheless legally binding. The terms of these agreements are understood from the actions or conduct of the parties, from the customs of the trade, or from the conditions o
> Grimshaw, a 13-year-old girl, was a passenger in a Ford Pinto driven by a neighbor. The Pinto stalled and, while motionless, was hit from behind by another car. Moments later, the Pinto’s fuel tank exploded, with the result that the driver was killed and
> Is it ethical for a state legislature to pass a law for the sole purpose of testing its constitutionality?
> Should the death penalty be considered cruel and unusual punishment, thus violating the Eighth Amendment?
> Should the right to bear arms be limited to the military use of arms, or should this right also apply to private citizens?
> Should speech that is sexist, racist, ageist, or otherwise offensive be protected under the First Amendment?
> Why is it important that each state respect and enforce both the judgments awarded by courts in other states, and the statutes and case law of other states?
> Normally there are no prosecutions for “padding” an expense account, yet it is considered unethical. Should such activity be prosecuted more forcefully?
> If a person suffers a loss of his or her property as a result of the criminal wrongdoing of another, would it matter whether the thief (wrongdoer) is charged by the victim with the crime of larceny or the tort of conversion?
> The law protects businesses against defamatory statements or writings just as it does for individuals. Should there be a different standard for businesses that would permit a firm to attack a competitor?
> Consider the numerous laws that affect businesses and evaluate the regulatory climate in which they operate. Does it seem that there are too many regulations or too few? Explain your answer.
> Do you think that a U.S. citizen who disagrees with U.S. foreign policy against one of its enemies should be charged with treason for donating money to that enemy’s war efforts against the United States? Why or why not?
> Roll and Hold Warehouse, the employer, began circulating a new company policy relating to employee attendance. The union representing the company’s employees objected to the policy, claiming that it had never been negotiated. The company argued, among ot
> What is the intent of someone who is said to engage in activities called “false pretenses”?
> Do you believe it is unethical to exaggerate the extent of injuries suffered in an automobile accident resulting from another driver’s negligent driving in an effort to increase the amount of a financial settlement that will be paid by an insurance compa
> Has the use of computers in business increased or reduced the incidence of embezzlement?
> What would be the effect on the insurance business and the economy if there were no “burning to defraud” statutes?
> Why do some highly paid business executives engage in illegal practices such as insider trading? What would you recommend to reduce the incidence of such practices?
> Is it appropriate for a city or state official to accept a bid for the performance of work or the purchase of goods or services that is higher than others, even if there are no laws requiring that officials accept the lowest bid?
> Individuals as well as businesses are affected by actions of administrative agencies in different ways. Select a particular agency and discuss how the agency affects individuals and businesses.
> The corporate culture exerts a major influence on the ethical behavior of every employee and executive in the firm. Since it is recognized that management largely determines the corporate culture, recommend steps management might take to establish a cult
> Analyze and critique some current activities of government relating to ethics in business.
> Critics of corporate social action question whether it is appropriate to commit corporate resources to socially desirable goals. It might be better, they suggest, to maximize earnings for shareholders, who could then use the higher earnings to advance so
> Netscape offered all visitors to its website free “SmartLoad” software provided the visitor clicked his or her mouse on a designated box labeled “Download.” A reference to a license agreement appeared on the screen in which the “Download” box was located
> Compare and contrast the operation of a government body with the operation of an administrative agency.
> Should the law allow an employer to fire an employee without having a good reason?
> Should an employer be held liable for an employee’s negligent act even though the employer is not at fault?
> Is it ethical for an attorney in fact to make health care decisions for a principal based on the attorney in fact’s own personal beliefs and values, regardless of the principal’s views?
> Should the current state regulation of health insurance companies be changed to a federal licensing system to allow health insurance companies to operate across state lines?
> Is it fair that some employees receive health insurance benefits covering their families, while other employees, who do not have families, do not receive this benefit?
> What are some ways in which employers can keep the costs of providing medical insurance for employees down without eliminating this benefit?
> Given that the requirements for drafting and executing valid advance directives vary so greatly from state to state, should these be regulated by the federal government in order to promote consistency?
> Most people agree that protection of the environment is an ethical issue. Society is frequently confronted with the conflict between achieving environmental goals and the economic impact on corporations, consumers, and taxpayers. How should this dilemma
> Some substances offer both benefits and hazards. How should responsible individuals, corporations, scientists, and regulators weigh the gains and risks of these products?
> Napster Inc. provided a free service for visitors to its website that allowed users to share music digitally. Napster did not receive permission from the owners of the music. Several large recording studios that owned much of the music that was being sha
> What are some of the specific rules imposed by the Clean Air Act and Clean Water Act? Should these be more stringent?
> Discuss the EPA guidelines for preparing an environmental impact statement before a project can be approved. Are they adequate?
> Should the FCPA impose U.S. ethical standards on the activities of U.S. businesses in international trade, even though this law may put these businesses at a competitive disadvantage with their foreign counterparts?
> The purchase of life insurance often involves the client choosing between whole life insurance, which includes a savings feature, and term insurance, which provides only protection. The sales commission also varies depending on the type of policy. Is it
> Where should the line be drawn between a reasonable number of securities transactions and churning?
> Because most professionals carry liability insurance, what is the role of the insurance industry in promoting the competence of professionals?
> Does having malpractice insurance lessen the care taken by professionals?