Question: Bensing Company manufactures generic drugs for the

> Jack and Maggie Turton bought a house in Jefferson County, Idaho, located directly across the street from a gravel pit. A few years later, the county converted the pit to a landfill. The landfill accepted many kinds of trash that cause harm to the enviro

> A state legislature enacted a statute that required any motorcycle operator or passenger on the state’s highways to wear a protective helmet. Jim Alderman, a licensed motorcycle operator, sued the state to block enforcement of the law. Alderman asserted

> Can a state, in the interest of energy conservation, ban all advertising by power utilities if conservation could be accomplished by less restrictive means? Why or why not?

> Suppose that Gucci had not presented evidence that Huoqing made one actual sale through his Web site to a resident (the private investigator) of the court’s district. Would the court still have found that it had personal jurisdiction over Huoqing? Why or

> In the circumstances of this case, what procedures should govern the arbitration? Discuss.

> What are three types of product defects?

> One of the arguments against allowing sharia courts in the United States is that we would no longer have a common legal framework within our society. Do you agree or disagree? Why?

> The Sixth Amendment guarantees the accused a right of trial by an “impartial jury.” How does the use of wireless devices in the courtroom or research on the Internet threaten this right?

> Financing for the purchase of the property was conditioned on the bank’s review of Guido’s answers to the environmental questionnaire. How could the court conclude that the plaintiffs justifiably relied on misrepresentations made to the bank? Explain.

> Would the result in this case have been different if Taylor’s minor son, rather than Taylor herself, had been struck by the ball? Should courts apply the doctrine of assumption of risk to children? Discuss.

> Can the appropriation of an Internet domain name constitute conversion? Explain.

> What is the basic structure of the U.S. government?

> Where in the Constitution can the due process clause be found?

> What is the Bill of Rights? What freedoms does the First Amendment guarantee?

> What constitutional clause allows laws enacted by the federal government to take priority over conflicting state laws?

> What constitutional clause gives the federal government the power to regulate commercial activities among the various states?

> What are the elements of a cause of action in strict product liability?

> Elaine Sweeney went to Ragged Mountain Ski Resort in New Hampshire with a friend. Elaine went snow tubing down a run designed exclusively for snow tubers. No Ragged Mountain employees were present in the snow-tube area to instruct Elaine on the proper us

> In this age of the Internet, when people communicate via e-mail, tweets, social media, and Skype, is the concept of jurisdiction losing its meaning?

> Bento Cuisine is a lunch-cart business. It occupies a street corner in Texarkana, a city that straddles the border of Arkansas and Texas. Across the street—and across the state line, which runs down the middle of the street—is Rico’s Tacos? The two busin

> Why do we need special legislation designed to control foreign libel claims against U.S. citizens? Explain.

> Should domain name hosting companies be liable for revenge porn?

> Sue contracts with Tom to deliver a quantity of computers to Sue’s Computer Store. They disagree over the amount, the delivery date, the price, and the quality. Sue files a suit against Tom in a state court. Their state requires that their dispute be sub

> At the trial, after Sue calls her witnesses, offers her evidence, and otherwise presents her side of the case, Tom has at least two choices between courses of action. Tom can call his first witness. What else might he do?

> Legislation aimed at protecting people from themselves concerns the individual as well as the public in general. Protective helmet laws are just one example of such legislation. Should individuals be allowed to engage in unsafe activities if they choose

> What is the difference between the focus of a trial court and an appellate court?

> How are the courts applying traditional jurisdictional concepts to cases involving Internet transactions?

> What public policy assumptions underlie strict product liability?

> What are three alternative methods of resolving disputes?

> What is meant by strict liability? In what circumstances is strict liability applied?

> Identify the four elements of negligence.

> What is defamation? Name two types of defamation.

> What are two basic categories of torts?

> What is the purpose of tort law? What types of damages are available in tort lawsuits?

> Bret D’Auguste was an experienced skier when he rented equipment to ski at Hunter Mountain Ski Bowl in New York. When D’Auguste entered an extremely difficult trail, he noticed immediately that the surface consisted of ice with almost no snow. He tried t

> A water pipe bursts, flooding a Metal Fabrication Company utility room and tripping the circuit breakers on a panel in the room. Metal Fabrication contacts Nouri, a licensed electrician with five years’ experience, to check the damage and turn the breake

> Jana leaves her truck’s motor running while she enters a Kwik-Pik Store. The truck’s transmission engages, and the vehicle crashes into a gas pump, starting a fire that spreads to a warehouse on the next block. The warehouse collapses, causing its billbo

> Kim went to Ling’s Market to pick up a few items for dinner. It was a stormy day, and the wind had blown water through the market’s door each time it opened. As Kim entered through the door, she slipped and fell in the rainwater that had accumulated on t

> Can a manufacturer be held liable to any person who suffers an injury proximately caused by the manufacturer’s negligently made product?

> White Plains Coat & Apron Co. and Cintas Corp. are competitors. White Plains had five-year exclusive contracts with some of its customers. As a result of Cintas’s soliciting of business, dozens of White Plains’ customers breached their contracts and ente

> Charles Robison, an employee of West Star Transportation, Inc., was ordered to cover an unevenly loaded flatbed trailer with a 150-pound tarpaulin. The load included uncrated equipment and pallet crates of different heights, about thirteen feet off the g

> Ronald Rawls and Zabian Bailey were in an auto accident in Bridgeport, Connecticut. Bailey rear-ended Rawls at a stoplight. Evidence showed it was more likely than not that Bailey failed to apply his brakes in time to avoid the collision, failed to turn

> At the Weatherford Hotel in Flagstaff, Arizona, in Room 59, a balcony extends across thirty inches of the room’s only window, leaving a twelve-inch gap with a three-story drop to the concrete below. A sign prohibits smoking in the room but invites guests

> While living in her home country of Tanzania, Sophia Kiwanuka signed an employment contract with Anne Margareth Bakilana, a Tanzanian living in Washington, D.C. Kiwanuka traveled to the United States to work as a babysitter and maid in Bakilana’s house.

> Medtronic, Inc., is a medical technology company that competes for customers with St. Jude Medical S.C., Inc. James Hughes worked for Medtronic as a sales manager. His contract prohibited him from working for a competitor for one year after leaving Medtr

> Sharon Yeagle was an assistant to the vice president of student affairs at Virginia Polytechnic Institute and State University (Virginia Tech). As part of her duties, Yeagle helped students participate in the Governor’s Fellows Program. The Collegiate Ti

> Donald and Gloria Bowden hosted a cookout at their home in South Carolina, inviting mostly business acquaintances. Justin Parks, who was nineteen years old, attended the party. Alcoholic beverages were available to all of the guests, even those who, like

> Suppose that a state imposes a higher tax on out-of-state companies doing business in the state than it imposes on in-state companies. Is this a violation of equal protection if the only reason for the tax is to protect the local firms from out-of-state

> Susan Calles lived with her four daughters, Amanda (age 11), Victoria (age 5), and Jenna and Jillian (age 3). In March 1998, Calles bought an Aim N Flame utility lighter, which she stored on the top shelf of her kitchen cabinet. A trigger can ignite the

> Medicis Pharmaceutical Corp. makes Solodyn, a prescription oral antibiotic. Medicis warns physicians that “autoimmune syndromes, including drug- induced lupus-like syndrome,” may be associated with use of the drug. Amanda Watts had chronic acne. Her phys

> While driving on Interstate 40 in North Carolina, Carroll Jett became distracted by a texting system in the cab of his tractor-trailer truck. He smashed into several vehicles that were slowed or stopped in front of him, injuring Barbara and Michael Durke

> Five-year-old Cheyenne Stark was riding in the backseat of her parents’ Ford Taurus. Cheyenne was not sitting in a booster seat. Instead, she was using a seatbelt designed by Ford, but was wearing the shoulder belt behind her back. The car was involved i

> David Dobrovolny bought a new Ford F-350 pickup truck. A year later, the truck spontaneously caught fire in Dobrovolny’s driveway. The truck was destroyed, but no other property was damaged, and no one was injured. Dobrovolny filed a suit in a Nebraska s

> Yun Tung Chow tried to unclog a floor drain in the kitchen of the restaurant where he worked. He used a drain cleaner called Lewis Red Devil Lye that contained crystalline sodium hydroxide. The product label said that users should wear eye protection, pu

> Brandon Stroud was driving a golf car made by Textron, Inc. The golf car did not have lights, but Textron did not warn against using it on public roads at night. When Stroud attempted to cross a road at 8:30 p.m., his golf car was struck by a vehicle dri

> Jason Clark, an experienced hunter, bought a paintball gun. Clark practiced with the gun and knew how to screw in the carbon dioxide cartridge, pump the gun, and use its safety and trigger. Although Clark was aware that he could purchase protective eyewe

> Carmen buys a television set manufactured by AKI Electronics. She is going on vacation, so she takes the set to her mother’s house for her mother to use. Because the set is defective, it explodes, causing considerable damage to her mother’s house. Carmen

> Does Winstead have an ethical duty to comply with the defendants’ discovery request? Discuss.

> Most states and the federal government permit inmates to grow 1/2-inch beards. Would the policies followed at these institutions be relevant in determining the need for a beard restriction in this case? Discuss.

> Rim Corporation makes tire rims that it sells to Superior Vehicles, Inc., which installs them on cars. One set of rims is defective, which an inspection would reveal. Superior does not inspect the rims. The car with the defective rims is sold to Town Aut

> If Bad Frog had sought to use the label to market toys instead of beer, would the court’s ruling likely have been the same? Explain your answer.

> Should U.S. courts, and particularly the United States Supreme Court, look to other nations’ laws for guidance when deciding important issues—including those involving rights granted by the Constitution? If so, what impact might this have on their decisi

> When should a statement made on social media be considered a true threat?

> Thomas worked in the nonmilitary operations of a large firm that produced both military and nonmilitary goods. When the company discontinued the production of nonmilitary goods, Thomas was transferred to the plant producing military equipment. Thomas lef

> Aric Toll owns and manages the Balboa Island Village Inn, a restaurant and bar in Newport Beach, California. Anne Lemen lives across from the Inn. Lemen complained to the authorities about the Inn’s customers, whom she called “drunks” and “whores.” Lemen

> Robert Brown applied for admission to the University of Kansas School of Law. Brown answered “no” to questions on the application asking if he had a criminal history and acknowledged that a false answer constituted “cause for . . . dismissal.” In fact,

> Abbott Laboratories licensed SmithKline Beecham Corp. to market an Abbott human immunodeficiency virus (HIV) drug in conjunction with one of SmithKline’s drugs. Abbott then increased the price of its drug fourfold, forcing SmithKline to increase its pric

> Mark Wooden sent e-mail to an alderwoman for the city of St. Louis. Attached was a nineteen-minute audio that compared her to the biblical character, Jezebel—she was a “bitch in the Sixth Ward,” spending too much time with the rich and powerful and too l

> In 2001, Puerto Rico enacted a law that requires specific labels on cement sold in Puerto Rico and imposes fines for any violations of these requirements. The law prohibits the sale or distribution of cement manufactured outside Puerto Rico that does not

> Judge James DeWeese hung a poster in his courtroom showing the Ten Commandments. The American Civil Liberties Union (ACLU) filed a suit, alleging that the poster violated the establishment clause. DeWeese responded that his purpose was not to promote re

> Shalene Kolchek bought a Great Lakes Spa from Val Porter, a dealer who was selling spas at the state fair. After Kolchek signed the contract, Porter handed her the manufacturer’s paperwork and arranged for the spa to be delivered and installed for her. T

> Yuhu manufactures cell phones and is developing a new model with a feature (aptly named Don’t Drink and Dial) that prevents the phone from dialing an owner-defined list of phone numbers between the hours of midnight and 6:00 A.M. The new phone model has

> Integrity Accounting Firm provides various financial services to organizations. Integrity has decided to price its jobs at the total variable costs of the job plus 15%. The job for a medium sized dance club client included the following costs: Direct ma

> Consider each of the following independent scenarios: a. Terrin Belson, plant manager for the laser printer factory of Compugear Inc., brushed his hair back and sighed. December had been a bad month. Two machines had broken down, and some factory product

> Blaylock Company provided the following information: Required: 1. Calculate the change in cash. 2. Explain the role of the change in cash flow in the statement of cash flows.

> During the last 2 years of operations, Barnes Company had the following transactions: a. Purchased a new plant for $5,000,000. b. Issued bonds with a 6-year maturity date for $2,000,000. c. Reported profits of $7,000,000 for the most recent year. d. Sol

> Paxton Company provided the following income statement for last year: Sales …………………………………………………………………….. $ 87,021,000 Cost of goods sold ………………………………………………….. (62,138,249) Gross margin …………………………………………………………. $ 24,882,751 Operating expenses ………………………………

> What is the accounting rate of return? Compute the ARR for an investment that requires an initial outlay of $300,000 and promises an average net income of $100,000.

> East Mullett Manufacturing earned operating income last year as shown in the following income statement: Sales ……………………………………………………………….. $3,750,000 Cost of goods sold ……………………………………………… 2,250,000 Gross margin …………………………………………………… $1,500,000 Selling and

> What is the payback period? Compute the payback period for an investment requiring an initial outlay of $80,000 with expected annual cash inflows of $30,000.

> Jeremy Costa, owner of Costa Cabinets Inc., is preparing a bid on a job that requires $1,800 of direct materials, $1,600 of direct labor, and $800 of overhead. Jeremy normally applies a standard markup based on cost of goods sold to arrive at an initial

> Rebert Inc. showed the following balances for last year: Rebert’s net income for last year was $3,182,000. Also, assume that the dividends paid to common stockholders for last year were $2,600,000 and that the market price per share

> Juroe Company provided the following income statement for last year: Sales …………………………………………………………..……… $11,300,000 Cost of goods sold ………………………………………………… 3,000,000 Gross margin …………………………………………….……… $ 8,300,000 Operating expenses ……………………………………………… 3

> Juroe Company provided the following income statement for last year: Sales …………………………………………………………..……… $11,300,000 Cost of goods sold ………………………………………………… 3,000,000 Gross margin …………………………………………….……… $ 8,300,000 Operating expenses ……………………………………………… 3

> Upton Company has current assets equal to $3,600,000. Of these, $1,100,000 is cash, $1,300,000 is accounts receivable, and the remainder is inventories. Current liabilities total $3,000,000. Required: Note: Round answers to two decimal places. 1. Comput

> Tsao Company provided the following income statement for last year: Sales ………………………………………………………. $16,250,000 Cost of goods sold ………………………………………. 6,500,000 Gross margin ………………………………………….. $ 9,750,000 Operating expenses ……………………………………. 3,750,000 Operating

> The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows: Somerville Company Statement of Retained Earnings For the Year Ended December 31, 2014 Balance, beginning of period …&acir

> Kurena Company provided the following information on one of its factories: Maximum units produced in a quarter: ………….………… 180,000 units Actual units produced in a quarter: …………………………..... 112,500 units Hours of cell production labor in a quarter: …………..

> Ventris Company found that one of its manufacturing cells had actual cycle time of 15 minutes per unit. The theoretical cycle time for this cell was 9 minutes per unit. Required: 1. Calculate the amount of processing time per unit and the amount of nonp

> East Mullett Manufacturing earned operating income last year as shown in the following income statement: Sales ……………………………………………………………….. $3,750,000 Cost of goods sold ……………………………………………… 2,250,000 Gross margin …………………………………………………… $1,500,000 Selling and

> Ernst Company’s balance sheet shows total liabilities of $32,500,000, total stockholders’ equity of $8,125,000, and total assets of $40,625,000. Required: Round answers to two decimal places. 1. Calculate the debt ratio. 2. Calculate the debt-to-equity

> Blaylock Company earned net income of $900,000 in 2014. Blaylock provided the following information: Required: Compute the financing cash flows for the current year.

> Blaylock Company provided the following partial comparative balance sheets and the income statement for 2014. Required: Compute operating cash flows using the indirect method.

> Randel Company produces a variety of gardening tools and aids. The company is examining the possibility of investing in a new production system that will reduce the costs of the current system. The new system will require a cash investment of $3,455,400

> Eyring Company invested $7,500,000 in a new product line. The life cycle of the product is projected to be 7 years with the following net income stream: $300,000, $300,000, $500,000, $900,000, $1,000,000, $2,100,000, and $1,200,000. Required: Calculate

> Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last year’s results: Washington’s actual cost of capital was 12%. In addition, Washington Co

> Ventura Manufacturing is considering an investment in a new automated manufacturing system. The new system requires an investment of $3,000,000 and either has (a) even cash flows of $750,000 per year or (b) the following expected annual cash flows: $375,

> Falconer Company had net (after-tax) income last year of $12,375,400 and total capital employed of $111,754,000. Falconer’s actual cost of capital was 9%. Required: 1. Calculate the EVA for Falconer Company. 2. CONCEPTUAL CONNECTION Is Falconer creating

> The Tuxedo Division of Shamus O’Toole Company had operating income last year of $152,250,000 and average operating assets of $2,175,000,000. O’Toole’s minimum acceptable rate of return is 8%. (Round all answers to two decimal places.) Required: 1. Calcu

> Data follow for the Construction Division of D. Jack Inc.: (Note: Round all answers to two decimal places.) Required: 1. Compute the margin and turnover ratios for each year. 2. Compute the ROI for the Construction Division for each year.