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Question: During a business lunch, Bob eats salad


During a business lunch, Bob eats salad dressing that contains almond extract. He is very allergic to nuts and suffers a severe allergic reaction. There are complications and Bob becomes
almost totally paralyzed. Because Bob had instructed the restaurant waiter and the chef that he
might die if he ate any nuts, he sues the restaurant for negligence. Discuss the types of damages
Bob may recover.


> Why is taxation of private property legal?

> Discuss why it is important to have a property right in the uses of things.

> How have the federal courts discouraged class-action lawsuits? What are the key requirements for federal courts to permit class-action suits?

> A building contractor is sued by homeowners alleging that their homes were poorly constructed resulting in several defects. The contractor adds to the lawsuit a building supplier that it claims provided faulty support beams. How can the contractor add th

> (a) Define jurisprudence and name four schools of jurisprudence. (b) Describe the main difference between the jurisprudences of natural law and sociological jurisprudence.

> What standard of review do courts use to decide whether to uphold the factual determinations made by an administrative agency?

> What are the two issues that must be considered by courts to determine whether a person has standing to challenge an agency’s decision?

> (a) When was this administrative agency created? (b) What types of regulatory authorities does the SEC have at its disposal?

> Why Nations Are Economically Weak or Strong: (a) Identify several reasons put forth to explain why nations are prosperous or poor. (b) What does this section say is the foundation of the private market and prosperity?

> Caryn negotiates to buy 50 washers and 50 dryers from the “We-Clean-It Company.” These machines are going into laundromats that Caryn operates with her family. Because these machines will be heavily used, Caryn got the company to agree to a one-year warr

> (a) Explain the purpose of requiring certain types of contracts to be in writing. (b) List four types of contracts covered by the traditional statute of frauds.

> (a) A Newsweek article on business ethics concludes, “Even in today’s complex world, knowing what’s right is comparatively easy. It’s doing what’s right that’s hard.” Explain why this statement may be true in modern corporate decision making. (b) In 2010

> Gus contracts to buy a used car from Cars Galore Inc. The printed contract specifies “no warranties.” But Gus and the sales manager of Cars handwrite into the contract a 90-day guarantee on the transmission. If the transmission fails after 60 days, is th

> (a) How does the CISG facilitate international sales of goods? (b) How do free trade agreements, such as NAFTA and CAFTA-DR, benefit U.S. businesses?

> (a) What are the essential differences between the ICJ and the U.S. Supreme Court? (b) How does the ICJ determine international law?

> (a) In what way is an easement protected by a property fence? (b) Explain an easement by prescription.

> You are concerned because several of your employees have recently broken their employment contracts and left town. Investigation reveals that Sly and Company, your competitor in a nearby city, has paid bonuses to your former employees to persuade them to

> Fraud can be used to void a contract and as a basis for intentional tort. What is the advantage to a plaintiff of suing for the tort of fraud as opposed to using fraud merely as a contractual defense?

> Acme Airlines attempts to get control of Free Fall Airways by making a public offer to buy its stock from shareholders. Free Fall’s president, Joan, advises the shareholders in a letter that Acme’s president, Richard, is “little better than a crook” and

> Bartley signs a storage contract with Universal Warehouses. The contract specifies that Bartley’s household goods will be stored at Universal’s midtown storage facility while he is out of the country on business. Later, without contacting Bartley, Univer

> In recent months, homeowners downwind from International Cement Company have had clouds of cement dust settle on their property. Trees, shrubbery, and flowers have all been killed. The paint on houses has also been affected. Explain what tort cause of ac

> Explain the difference between false imprisonment and malicious prosecution. In what business situation does false imprisonment most frequently arise?

> Describe the reasons for the rising concern over business ethics.

> Explain the three principal invasions of personal interest that make up invasion of privacy.

> In business the intentional infliction of mental distress tort has most often involved what type of situation?

> Under what theory can an employee sue her employer for merely touching her? Explain.

> (a) Who has the primary responsibility for nontoxic solid waste disposal? (b) Describe the role of the Solid Waste Disposal Act in waste disposal.

> Before beginning the manufacture of a new pesticide, what process must a company follow under the pesticide-control acts?

> How does the ESA apply to private businesses? Explain.

> Explain the concept of “navigable waterway” and how it is related to the Clean Water Act.

> Explain the function of the EPA.

> The ABC department store refuses credit to Mary Jane. Mary Jane has a good job and no debts. She cannot understand the refusal. What would you suggest Mary Jane do? Explain.

> Jane Thomas applies for automobile financing at Kenwood Cars Inc., a used-car dealership. The dealership obtains a credit report on her. On the basis of this report, the dealership denies her credit. The manager informs her that she will have to get her

> Should what people say and do on computers be protected by a legal fence, or should these activities be freely available to businesses wishing to use the information they provide for marketing purposes?

> Why is taxation an important element to consider when selecting the appropriate organization for your business activities?

> Why should business owners take time to discuss the control each will exert over the organization’s activities?

> Relative to other factors discussed in this chapter, how important is the factor of creation?

> What do waivers and releases have in common?

> A tripling of prices by an illegal cartel of uranium producers caused Westinghouse Electric Corp. to default on uranium delivery contracts to a number of utility companies. The companies sued and Westinghouse settled. If the case had gone to trial, what

> To be a legitimate excuse for nonperformance, impossibility must be real and absolute. What are three examples of factual situations involving real impossibility of performance?

> Are seniority systems in the workplace legal under Title VII if in fact they discriminate on the basis of gender or race? Explain.

> Kartel Inc. found that historically African Americans had been significantly underrepresented in its workforce. It decided to remedy the situation and place African Americans in 50 percent of all new job openings. Discuss the legality of Kartel’s action.

> Silicon Products requires all male employees to wear their hair “off the collar.” Does this policy violate Title VII? Discuss.

> If Sam fails to wear a hard hat, as required by Super Construction Inc., his employer, and is injured by a falling hammer, can he recover workers’ compensation from Super Construction Inc.? Your answer should explain the basis for recovering workers’ com

> BigCo records all of the phone calls its employees make on BigCo’s land-line phones. Is BigCo liable under the Electronic Communications Privacy Act?

> Terry was hired as an assistant manager by the Assurance Manufacturing Company. There was no specific time period related to Terry’s employment. During Terry’s first day at work, the personnel director of Assurance gave Terry a copy of the employee’s han

> Larry, a machine operator, is concerned that the cardboard baler he is working on should have a safety shield to protect his arms from the moving parts. He is also worried that if he reports his concerns, he will be put on the night shift. What should he

> Robert left his position as commercial airline pilot to undertake his duties in the Marine Reserves for a tour of duty in Iraq. When he returns home a year later, his employer apologetically tells him that they filled his position during his absence and

> Why do you think Congress passed the Consumer Financial Protection Act when the FTC already had authority to regulate many acts over which the CFPB also has authority?

> Explain the three types of loss that give rise to compensatory damages.

> Why has the complaint against excessive government been consistent throughout the years?

> Are file-hosting sites like YouTube liable for infringing videos posted by their users?

> Explain why digital copies of works create greater difficulties in controlling infringement.

> Imagine that you are making a presentation to a class on the occurrence of product advertising in film. You display a short clip of a recent film to illustrate your point. Explain how one would argue that this use constitutes a “fair use” of the copyrigh

> Explain how the U.S. Constitution limits government privacy intrusions. Why is this not an effective limitation on private businesses?

> (a) If you spend the time and effort necessary to alphabetize the names of the students at your school and list their e-mail addresses, can you copyright a printed version? Explain. (b) Explain the rights a company has to the works created by its employe

> Pat hires a tailor to make a suit. The tailor completes all the sewing and now waits for Pat to pick up the suit and pay for it. Is this contractual agreement executed or executory? Explain.

> How can someone reasonably say that a voidable contract is both enforceable and unenforceable?

> Why are courts willing to apply contractual principles when the parties fail to create contractual relationships?

> (a) What is the distinction between a bilateral and a unilateral contract? (b) Which type is more common in business?

> Laura advertises a used car for $20,000. David asks why it is so expensive and Laura states that it is only two years old. David agrees to purchase the car for $20,000. But when he arrives home, he discovers the book value of the car is only $12,000. May

> Chatter is a social networking service that promises to keep its user’s data private. However, Chatter sells its data to a data broker who then sells it online. A Chatter user experiences a career impact from the disclosure. State whether this situation

> Hunt signs an equipment lease contract with Edwards Rental. The contract contains a clause stating: “Lessor disclaims all liability arising from injuries caused by use of this equipment.” Because the equipment has been improperly serviced by Edwards Ren

> Describe the circumstances under which an adult lacks the capacity to contract.

> Jefferson and Goldberg enter a contract for the sale of five acres of land at $10,000 per acre. Later, Goldberg, the buyer, asks if Jefferson will agree to modify the contract to $9,000 per acre. (a) Jefferson agrees. Is Jefferson’s promise binding on hi

> Roberts was the president and sole shareholder of a corporation. A federal grand jury issued a subpoena to him in his capacity as president. The subpoena required Roberts to produce corporate records. Roberts moves to quash the subpoena on Fifth Amendmen

> Fielding Bros. offers to ship six furnaces to Central City Heating and Cooling Co. for $4,500 cash. Central City accepts on the condition that Fielding give 120 days’ credit. Has a contract resulted? Explain.

> Condor Equipment Company offers to sell a dough cutting machine to Snappy Jack Biscuits Inc. The offer states: “This offer expires Friday noon.” On Thursday morning, the sales manager for Condor calls the president of Snappy Jack and explains that the ma

> Elegante Haberdashery telephones an order to Nordic Mills for 500 men’s shirts at $15 each. Each shirt will carry the Elegante label and have the Elegante trademark over the pocket. After the shirts are manufactured, Elegante refuses to accept delivery o

> (a) In general, are oral contracts as valid and enforceable as written ones? (b) Why should contracting parties consider reducing their agreement to writing?

> How has government action in recent years encouraged increased business attention to ethical matters?

> An online backpack store sells many products that are popular with elementary school children. The store knows some children under 10 subscribe to the store’s coupon service. Is the store subject to the Children’s Online Privacy Protection Act?

> If a grocery store records video of a customer as he shops for cereal, will that customer have a case based on intrusion on seclusion?

> What are the six constitutional rights provided in the Sixth Amendment?

> Does the double jeopardy clause apply to civil penalties? Why or why not?

> Burger’s junkyard business consists of dismantling automobiles and selling their parts. A New York statute authorized warrantless inspections of automobile junkyards. Police officers entered his junkyard, conducted an inspection, and discovered stolen ve

> What are the distinguishing characteristics of a conflict versus a dispute? Think about recent conflicts that did and did not become a dispute. Think about a recent dispute and describe how you handled it.

> (a) Summarize the seven elements of principled, interest-based negotiations. (b) How does focusing on these elements assist the negotiation process?

> In business disputes, what two items are most likely to dominate a position-based negotiation?

> List the five instinctive responses used in negotiation and describe how each of these applies to you.

> (a) Define substantive law and procedural law. (b) Is contract law substantive law or procedural law? How about a rule specifying that a defendant has 30 days to respond to a complaint?

> (a) What is the difference between civil law and criminal law? (b) Explain the two ways that the words civil law are used in this chapter.

> (a) What is public law? Give three examples of public law. (b) Explain private law. Give three examples.

> (a) Does this provision of the Constitution apply to the federal government, state government, or both? Explain. (b) Does this provision of the Constitution apply to present contractual relationships, future ones, or both? Explain.

> Discuss the importance of contract law to the private market system. How does contract law provide flexibility and precision in business dealings?

> Describe the two concepts that: (a) balance power within the federal government and (b) provide distinctions in the role of the federal, state, and local governments.

> (a) What is meant by the phrase statutorily mandated arbitration? (b) Is arbitration required in all cases? Why or why not?

> (a) What is “common law”? Why is the United States a “common law country”? (b) What is the primary distinction between common law and civil law legal systems?

> (a) A dispute arose between partners. The partnership agreement provided that if the parties were unable to agree on any matter, it would be submitted to arbitration. One partner filed suit asking a court to appoint a receiver for the business. The other

> Generally, what does an arbitrator have to include in the award to make it valid?

> (a) What is the purpose of a submission in an arbitration? (b) What is the proper role of the courts in determining whether a submission to arbitrate is valid?

> There are three levels of judicial scrutiny under this clause. Describe what these levels are and when they are applicable.

> The Supreme Court recently interpreted the Second Amendment for the first time in decades. Based on that decision, can individuals have guns in their homes for self-defense or is the right to possess guns limited only to members of a governmental-approve

> Silvia, an attorney in Florida, also was a licensed certified public accountant (CPA) and a certified financial planner (CFP). Silvia placed an ad in the yellow pages listing her credentials, including the CPA and CFP designations. The Florida Board of A

> Explain the purposes of and distinction between the establishment clause and the free exercise clause.

> What is the benefit to lawyers and parties of conducting a focus group?

> Why do businesses have incentives to settle disputes rather than relying on jury verdicts in the litigation process?

> What are the various items along the spectrum of ADR systems between litigation and negotiated settlements?

> (a) What is meant by the common law of contracts? (b) What is the UCC?

> (a) How does the law of contracts fit into our property-based legal system? (b) Explain why more resources are exchanged by contracts than by any other method.

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