Executives in large corporations are ultimately rewarded if their companies do well, particularly as evidenced by rising stock prices. Consequently, should we let those who run corporations decide what level of negative side effects of their goods or services is “acceptable”?
> Shane Durbin wanted to have a recording studio custom-built in his home. He sent invitations to a number of local contractors to submit bids on the project. Rory Amstel submitted the lowest bid, which was $20,000 less than any of the other bids Durbin re
> Corporate law should be altered to prohibit incumbent management from using most of the legal methods available for fighting takeovers.
> Because most shareholders never bother to vote for directors, shareholders have no real control over corporations.
> The sole shareholder of an S corporation should never be able to avoid liability for the torts of her or his employees.
> Sheila makes a will leaving her property in equal thirds to Toby and Umeko, her children, and Velda, her niece. Two years later, Sheila is adjudged mentally incompetent, and that same year, she dies. Can Toby and Umeko have Sheila’s will revoked on the g
> Because LLCs are essentially just partnerships with limited liability for members, all partnership laws should apply.
> A partnership should automatically end when one partner disassociates from the firm.
> All franchisors should be required by law to provide complete estimates of the profitability of a prospective franchise based on the experiences of their existing franchisees.
> Members of minority groups and women have made enough economic progress in the last several decades that they no longer need special legislation to protect them.
> The U.S. labor market is highly competitive, so state and federal laws that require overtime pay are unnecessary and should be abolished.
> Whenever an insurance company can prove fraud during the application process, it should never have to pay on the policy.
> Under no circumstances should a local government be able to condemn property in order to sell it later to real estate developers for private use.
> Common carriers should not be able to limit their liability.
> Only the largest publicly held companies should be subject to the Sarbanes-Oxley Act.
> The Internet and the rise of e-commerce have rendered our current antitrust concepts and laws obsolete.
> Brite Images agrees to sell Poster Planet five thousand posters of celebrities, to be delivered on May 1. On April 1, Brite repudiates the contract. Poster Planet informs Brite that it expects delivery. Can Poster Planet sue Brite without waiting until M
> The courts should reject all wetlands cases in which the wetlands in question do not consist of actual bodies of water that exist during the entire year.
> Laws against bait-and-switch advertising should be abolished because no consumer is ever forced to buy anything.
> Because an administrative law judge (ALJ) acts as both judge and jury, there should always be at least three ALJs in each administrative hearing.
> Any changes to existing, fully witnessed wills should also have to be witnessed.
> If a contract specifies a particular carrier, then the shipper must use that carrier or be in break of the contract—no exceptions should ever be allowed.
> A financing statement that does not have the debtor’s exact name should still be effective because creditors should always be protected when debtors default.
> Because writs of attachment are a prejudgment remedy for nonpayment of a debt, they are unfair and should be abolished.
> To reduce fraud, checks that utilize mechanical or electronic signature systems should not be honored.
> Because signature stamps create so many opportunities for embezzlement, they should be banned.
> We should eliminate the status of holder in due course for those who possess negotiable instruments.
> Skye asks Jim to buy a textbook for her at the County Community College campus bookstore. Skye writes a check payable to the bookstore and leaves the amount blank for Jim to fill in the price of the book. The cost of the book is $100. Jim fills in the ch
> Congress should pass a law disallowing all negotiable instruments that are not written on paper.
> The U.S. federal courts are accepting too many lawsuits initiated by foreigners that concern matters not relevant to this country.
> No express warranties should be created by the oral statements made by salespersons about a product.
> Rather than being allowed to file Chapter 7 bankruptcy petitions, individuals and couples should always be forced to make an effort to pay off their debts through Chapter 13.
> All works created by independent contractors should be considered works for hire under copyright law.
> The distinction between shipment and destination contracts for the purpose of deciding who will bear the risk of loss should be eliminated in favor of a rule that requires the buyer to always buy insurance for the goods being shipped.
> The UCC should require the same degree of definiteness of terms, especially with respect to price and quantity, as contract law does.
> Courts should always uphold limitation-of-liability clauses, no matter what are the respective bargaining powers of the two parties to the contract.
> The doctrine of commercial impracticability should be abolished.
> As a matter of public policy, personal injury tort claims cannot be assigned. This public policy is wrong and should be changed.
> Kurt receives from Nabil a check that is made out “Pay to the order of Kurt.” Kurt turns it over and writes on the back, “Pay to Adam. [Signed] Kurt.” What type of endorsement is this? What effect does this endorsement have on whether the check is consid
> Many countries have eliminated the Statute of Frauds except for the sale of real estate. The United States should do the same.
> The concept of caveat emptor (“let the buyer beware”) should be applied to all sales, including those of real property.
> After agreeing to an exculpatory clause or purchasing some item, minors often seek to avoid the contracts. Today’s minors are far from naïve and should not be allowed to avoid their contractual obligations.
> Courts should not be able to rule on the adequacy of consideration. A deal is a deal.
> The terms and conditions in click-on agreements are so long and detailed that no one ever reads the agreements. Therefore, the act of clicking “I agree.” is not really an acceptance.
> Companies should be able to make or break employment contracts whenever and however they wish.
> Because of over criminalization, particularly by the federal government, Americans may be breaking the law regularly without knowing it. Should Congress rescind many of the more than four thousand federal crimes now on the books?
> Congress has amended copyright law several times so that copyright holders now have protection for many decades. Was Congress right in extending these copyright time periods? Why or why not?
> All liability suits against tobacco companies for lung cancer should be thrown out of court now and forever.
> Each time a state legislature enacts a law that applies the assumption of risk doctrine to a particular sport, participants in that sport suffer.
> Ben contracts with Amy to fix her roof. Amy writes Ben a check, but Ben never makes the repairs. Carl knows Ben breached the contract but cashes the check anyway. Can Carl become an HDC? Why or why not?
> 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 choos
> Some consumer advocates argue that high attorney contingency fees—sometimes reaching 40 percent—unfairly deprive winning plaintiffs of too much of their awards. Should the government put a cap on contingency fees at, say 20 percent? Why or why not?
> In this age of the Internet, when people communicate via e-mail, texts, tweets, Facebook, and Skype, is the concept of jurisdiction losing its meaning?
> Under the doctrine of stare decisis, courts are obligated to follow the precedents established in their jurisdictions unless there is a compelling reason not to. Should U.S. courts continue to adhere to this common law principle, given that our governmen
> Read through the subsection in this chapter entitled “Decisions and Opinions.” (See How to Read and Understand Case Law.) (a) One group will explain the difference between a concurring opinion and a majority opinion. (b) Another group will outline the di
> Country Fruit Stand orders eighty cases of peaches from Downey Farms. Without stating a reason, Downey delivers thirty cases instead of eighty and delivers at the wrong time. Does Country have the right to reject the shipment? Explain.
> What choices do disgruntled Uber and Lyft drivers have?
> What benefits can delivery by commercial drone provide to consumers?
> Altisource Portfolio Solutions, Inc., is a global corporation that provides real property owners with a variety of services, including property preservation—repairs, debris removal, and so on. Lucas Contracting, Inc., is a small trade contractor in Carro
> Marit worked for Town & Garden, a landscape design service owned by Donald. Marit signed a note payable to Donald to become a co-owner of Town & Garden. The note, which was undated, required installment payments, but Donald never asked for them. Is Marit
> Mark Wooden sent an e-mail to an alderwoman for the city of St. Louis. Attached was a nineteen-minute audio file that compared her to the biblical character Jezebel. The audio said she was a “bitch in the Sixth Ward,” spending too much time with the rich
> Heather Reason over opted to try Internet service from Clear wire Corp. Clear wire sent her a confirmation e-mail and a modem. When Reason over plugged in the modem, an “I accept terms” box appeared. Without clicking on the box, Reason over quit the page
> Duval Ford, LLC, sold a new Ford F-250 pick-up truck to David Sweat. Before taking delivery, Sweat ordered a lift kit to be installed on the truck by a Duval subcontractor. Sweat also replaced the tires and modified the suspension system to increase the
> Irvin Smith was charged in a Georgia state court with burglary and theft. Before the trial, during the selection of the jury, the state prosecutor asked the prospective jurors whether they knew Smith. No one responded affirmatively. Jurors were chosen an
> Robert Gutkowski, a sports marketing expert, met numerous times with George Steinbrenner, the owner of the New York Yankees, to discuss the Yankees Entertainment and Sports Network (YES). Gutkowski was paid as a consultant. Later, he filed a suit, seekin
> White Plains Coat & Apron Co. is a New York– based linen rental business. Cintas Corp. is a competitor. 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’ cus
> After the fall of the Soviet Union, the new government of Azerbaijan began converting certain state-controlled industries to private ownership. Ownership in these companies could be purchased through a voucher program. Frederic Bourke, Jr., and Viktor Ko
> LG Electronics, Inc., a South Korean company, and nineteen other foreign companies participated in the global market for cathode ray tube (CRT) products. CRTs were integrated as components in consumer goods, including television sets, and were sold for m
> Angelica Westbrook was employed as a collector for Franklin Collection Service, Inc. During a collection call, Westbrook told a debtor that a $15 processing fee was an “interest” charge. This violated company policy. Westbrook was fired. She filed a clai
> Nellie Lumpkin, who suffered from various illnesses, including dementia, was admitted to the Picayune Convalescent Center, a nursing home. Because of her mental condition, her daughter, Beverly McDaniel, filled out the admissions paperwork and signed the
> Sasha owes $600 to Dale, who asks her to sign an instrument for the debt. Consider each of the following alternatives for the wording on that instrument: (a) “I.O.U. $600,” (b) “I promise to pay $600.” (c) An instruction to Sasha’s bank stating, “I wish
> AOL, LLC, mistakenly made public the personal information of 650,000 of its members. The members filed a suit, alleging violations of California law. AOL asked the court to dismiss the suit on the basis of a “forum-selection clause” in its member agreeme
> Michelle Fleshner worked for Pepose Vision Institute (PVI), a surgical practice. She was fired after she provided information to the U.S. Department of Labor about PVI’s overtime pay policy. She sued for wrongful termination, and the jury awarded her $12
> Go to Case Analysis 33.3, M.J. v. Wisan. Read the excerpt and answer the following questions. (a) Issue: What conduct was at the center of the dispute in this case? Who did the plaintiff allege was liable for this conduct? Which of these parties was the
> Scotwood Industries, Inc., sells calcium chloride flake for use in ice melt products. Between July and September 2004, Scotwood delivered thirty-seven shipments of flake to Frank Miller & Sons, Inc. After each delivery, Scotwood billed Miller, which paid
> M. C. and Linda Morris own a home in Gulfport, Mississippi, that was extensively damaged in Hurricane Katrina. The Morrises contracted with Inside Outside, Inc. (IO), to rebuild their kitchen. When the new kitchen cabinets were delivered, some defects we
> LO Ventures, LLC, doing business as Reefpoint Brew house in Racine, Wisconsin, contracted with Forman Awnings and Construction, LLC, for the fabrication and installation of an awning system over an outdoor seating area. After the system was complete, Ree
> Kendall Gardner agreed to buy from B&C Shavings a specially built shaving mill to produce wood shavings for poultry processors. B&C faxed an invoice to Gardner reflecting a purchase price of $86,200, with a 30 percent down payment and the “balance due be
> Kenzie Godfrey, a college student majoring in physics, was a passenger in a taxi when it collided with a car driven by Dawn Altieri. Altieri had originally leased the car from G.E. Capital Auto Lease, Inc. By the time of the accident, she had bought it,
> To display desserts in restaurants, Mario Sclafani ordered refrigeration units from Felix Storch, Inc. Felix faxed a credit application to Sclafani. The application was faxed back with a signature that appeared to be Sclafani’s. Felix delivered the units
> Summerall Electric Co. and other subcontractors were hired by National Church Services, Inc. (NCS), which was the general contractor on a construction project for the Church of God at Southaven. As work progressed, payments from NCS to the subcontractors
> Stella bought a cup of coffee at the Roasted Bean Drive Thru. The coffee had been heated to 190 degrees and consequently had dissolved the inside of the cup. When Stella lifted the lid, the cup collapsed, spilling the contents on her lap. To recover for
> If your company instituted a policy stating stated that employees should “think carefully about ‘friending’ co-workers,” would that policy be lawful? Why or why not?
> Employees meeting around the water cooler or coffee machine have always had the right to discuss work-related matters. Is a social media outlet simply a digital water cooler? Why or why not?
> Consolidated Stores is undergoing a unionization campaign. Prior to the union election, management states that the union is unnecessary to protect workers. Management also provides bonuses and wage increases to the workers during this period. The employe
> AstroStar, Inc., has approximately five hundred shareholders. Its board of directors consists of three members—Eckhart, Dolan, and Macero. At a regular board meeting, the board selects Galiard as president of the corporation by a two-to-one vote, with Ec
> Oxy Corp. is negotiating with Wick Construction Co. for the renovation of Oxy’s corporate headquarters. Wick, the owner of Wick Construction Co., is also one of the five members of Oxy’s board of directors. The contract terms are standard for this type o
> Oya Paka and two business associates formed a corporation called Paka Corp. for the purpose of selling computer services. Oya, who owned 50 percent of the corporate shares, served as the corporation’s president. Oya wished to obtain a personal loan from
> John, Lesa, and Tabir form a limited liability company. John contributes 60 percent of the capital, and Lesa and Tabir each contribute 20 percent. Nothing is decided about how profits will be divided. John assumes that he will be entitled to 60 percent o
> Bateson Corp. is considering entering into contracts with two organizations. One is a joint stock company that distributes home products east of the Mississippi River. The other is a business trust formed by a number of sole proprietors who are sellers o
> While single, James made out a will naming his mother, Carol, as sole beneficiary. Later, James married Lisa. (a) If James died while married to Lisa without changing his will, would the estate go to his mother, Carol? Explain. (b) Assume that James made
> Sapata has an ordinary life insurance policy on her life and a fire insurance policy on her house. Both policies have been in force for a number of years. Sapata’s life insurance names her son, Rory, as beneficiary. Sapata has specifically removed her ri
> Café Rojo, Ltd., an Ecuadoran firm, agrees to sell coffee beans to Dark Roast Coffee Company, a U.S. firm. Dark Roast accepts the beans but refuses to pay. Café Rojo sues Dark Roast in an Ecuadoran court and is awarded damages, but Dark Roast’s assets ar
> Assume that a statute in your state requires that all civil lawsuits involving damages of less than $50,000 be arbitrated. Such a case can be tried in court only if a party is dissatisfied with the arbitrator’s decision. The statute also provides that if
> Patrick contracts with an Ajax Insurance Co. agent for a $50,000 ordinary life insurance policy. The application form is filled in to show Patrick’s age as thirty-two. In addition, the application form asks whether Patrick has ever had any heart ailments
> In early 2014, Bennett, Inc., offered a substantial number of new common shares to the public. Harvey Helms had a long-standing interest in Bennett because his grandfather had once been president of the company. On receiving a prospectus prepared and dis
> James owns a three-story building. He leases the ground floor to Juan’s Mexican restaurant. The lease is to run for a five-year period and contains an express covenant of quiet enjoyment. One year later, James leases the top two stories to the Upbeat Clu
> Madison owned a tract of land, but he was not sure that he had full title to the property. When Rafael expressed an interest in buying the land, Madison sold it to Rafael and executed a quitclaim deed. Rafael properly recorded the deed immediately. Sever
> Orlando borrows a gasoline driven lawn edger from his neighbor, Max. Max has not used the lawn edger for two years. Orlando has never owned a lawn edger and is not familiar with its use. Max previously used this edger often, and if he had made a reasonab
> Atka owns a valuable speedboat. She is going on vacation and asks her neighbor, Regina, to store the boat in one stall of Regina’s double garage. Regina consents, and the boat is moved into the garage. Regina, in need of some grocery items for dinner, dr
> Allitron, Inc., and Donovan, Ltd., are interstate competitors selling similar appliances, principally in the states of Illinois, Indiana, Kentucky, and Ohio. Allitron and Donovan agree that Allitron will no longer sell in Indiana and Ohio and that Donova
