FACTS Lexmark International, Inc., sells the only style of toner cartridges that work with the company’s laser printers. Other businesses—known as remanufacturers— acquire and refurbish used Lexmark cartridges to sell in competition with the cartridges sold by Lexmark. To deter remanufacturing, Lexmark introduced a program that gave customers a 20-percent discount on new toner cartridges if they agreed to return the empty cartridges to Lexmark. Static Control Components, Inc., makes and sells components for the remanufactured cartridges, including microchips that mimic the chips in Lexmark’s cartridges. Lexmark released ads that claimed Static Control’s microchips illegally infringed Lexmark’s patents. Lexmark then filed a suit in a federal district court against Static Control, alleging violations of intellectual property law. Static Control counterclaimed, alleging that Lexmark engaged in false advertising in violation of the Lanham Act. The court dismissed the counterclaim. On Static Control’s appeal, the U.S. Court of Appeals for the Sixth Circuit reversed the dismissal. Lexmark appealed to the United States Supreme Court. ISSUE Did Static Control adequately plead the elements of a cause of action under the Lanham Act for false advertising? DECISION Yes. The United States Supreme Court affirmed the lower court’s ruling. The Supreme Court’s decision clarified that businesses do not need to be direct competitors to bring an action for false advertising under the act. REASON A cause of action for false advertising under the Lanham Act extends to plaintiffs whose interests “fall within the zone of interests protected by the law.” To establish a claim, a plaintiff must allege an injury to a commercial interest in reputation or sales. The injury must have been proximately caused by a violation of the statute, which can be shown by a loss in business reputation or sales that directly flows from the defendant’s false advertising. Under these principles, Static Control fell within the class of plaintiffs who can sue under the Lanham Act. Static Control alleged injuries consisting of lost sales and damage to its business reputation by Lexmark’s advertising. Static Control also alleged that the injuries were proximately caused by the ads. The misrepresentations included Lexmark’s assertion that Static Control’s business was illegal. And because Static Control’s microchips were necessary for, and had no other use than, refurbishing Lexmark’s cartridges, any false advertising that reduced the remanufacturers’ business also injured Static Control. WHAT IF THE FACTS WERE DIFFERENT? Suppose that Lexmark had issued a retraction of its ad claims before this case reached the Supreme Court. Would the outcome have been different? Discuss.
> This is a quaint and readable case that focuses on the vagaries of miscommunication. 1. What barriers to communication are evident in this fable? 2. What communication “lessons” does this fable offer to those who are serious about careers in the new work
> This case examines the conflict styles of various people at a fictional university. Marsha Lloyd, a new professor at the Central University, is promised a pay system based on merit. However, when the raises are given, Lloyd believes her raise is average
> The case examines decisions made regarding a job interview, health-care costs, salaries of women and bonuses paid to employees. Questions examined include: How does wearing a wedding or engagement ring affect a woman’s job interview? Is it OK for employe
> When people think about auto racing many people automatically think of the race car driver. However, there is much team work involved in auto racing. In Nascar, pit stops are the best examples of team work, with some members refueling and some changing
> This case presents issues of teamwork, group process, group norms, leadership, motivation, conflict, and conflict resolution. Christine Spencer is concerned about her organizational behavior group work project. The allotted mark will be given to the tea
> The case describes a situation at Perfect Pizzeria that gets progressively worse. The essence of the case is that bonuses are paid to local store managers based on the store meeting certain percentage targets regarding food and beverage costs and profits
> Mary Jones accepts a job with a salary of $25,000 per year. She is happy with this salary and during her first year of work spends a significant amount of time working extra hours after work, on the weekends, and while on assignment in Costa Rica. She re
> MagRec is a company that specializes in the manufacturing and distribution of magnetic recording heads. Dinah Coates discovers a memo that describes a manufacturing defect and shows it to her boss Pat. A remedy to resolve the problem is devised; unfortun
> First Community Financial is an example of an organization that is structured to ensure productive communication as well as efficient workflow within its ranks. The officers in one department are aware of the needs within their area as well as the potent
> What does Regulation Z require, and how does it relate to the Truth-in-Lending Act?
> What rule do courts apply to price-fixing agreements, and why?
> When will advertising be deemed deceptive?
> When Ralph dies, he has not made a will and is survived by many relatives—a spouse, children, adopted children, sisters, brothers, uncles, aunts, cousins, nephews, and nieces. What determines who inherits what?
> Sheila makes out a will, leaving her property in equal thirds to Toby and Uma, her children, and Velda, her niece. Two years later, Sheila is adjudged mentally incompetent, and that same year, she dies. Can Toby and Uma have Sheila’s will revoked on the
> Grey owns a commercial building in fee simple. Grey transfers temporary possession of the building to Haven Corporation. Can Haven transfer possession for even less time to Idyll Company? Explain.
> Rosa de la Mar Corporation ships a load of goods via Southeast Delivery Company. The load of goods is lost in a hurricane in Florida. Who suffers the loss? Explain your answer.
> While walking to work, Bill finds an expensive ring lying on the curb. Bill gives the ring to his son, Hunter. Two weeks later, Martin Avery, the true owner of the ring, discovers that Bill had found the ring and demands that Hunter return it. Who is ent
> Nora, an accountant, prepares a financial statement as part of a registration statement that Omega, Inc., files with the Securities and Exchange Commission before making a public offering of securities. The statement contains a misstatement of material f
> ChemCorp generates hazardous wastes from its operations. Disposal Trucking Company transports those wastes to Eliminators, Inc., which owns a site for hazardous waste disposal. Eliminators sells the property on which the disposal site is located to Fluid
> In the Clean Air Act, Congress allowed California, which has particular problems with clean air, to adopt its own standard for emissions from cars and trucks. The standard was subject to the approval of the Environmental Protection Agency (EPA), and othe
> United Pharmaceuticals, Inc., has developed a new drug that it believes will be effective in the treatment of patients with AIDS. The drug has had only limited testing, but United wants to make the drug widely available as soon as possible. To market the
> Maple Corporation conditions the sale of its syrup on the buyer’s agreement to buy Maple’s pancake mix. What factors would a court consider to decide whether this arrangement violates the Clayton Act?
> Under what circumstances would Pop’s Market, a small store in a small, isolated town, be considered a monopolist? If Pop’s is a monopolist, is it in violation of Section 2 of the Sherman Act? Why or why not?
> 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.
> Laws against bait-and-switch advertising should be abolished because no consumer is ever forced to buy anything.
> The Internet and the rise of e-commerce have rendered our antitrust concepts and laws obsolete.
> Any changes to existing, fully witnessed wills should also have to be witnessed.
> One chemist claims that the list of “dangerous” chemicals is an example of “chemophobia.” What do you think he meant?
> In the 1990s, DuCoa, LP, made choline chloride, a B-complex vitamin essential for the growth and development of animals. The U.S. market for choline chloride was divided into thirds among DuCoa, Bioproducts, Inc., and Chinook Group, Ltd. To stabilize the
> In the long run, is astroturfing likely to benefit a company that is selling an inferior product? Why or why not?
> Companies subject to lengthy antitrust investigations and court proceedings in Europe argue that such delays result in “reputational damage.” Why might that be so?
> The publishing business is in dire straits today with retail bookstores going bankrupt and publishers laying off hundreds of employees. Why do you think the declining book business was worthy of so much attention from the Justice Department?
> FACTS In 1975, William Melton executed a will that, among other things, stated that his daughter, Vicki Palm, was to receive nothing. In 1979, he added a handwritten note to the will, saying that his friend, Alberta Kelleher, was to receive a small porti
> FACTS Alberto and Karelli Mila were insured under a homeowners’ liability policy. “Exclusion k” of the policy stated that coverage did not apply to “bodily injury arising out of sexual molestation, corporal punishment or physical or mental abuse.” Verush
> FACTS Donald Breeden and Willie Buchanan were married in Marion County, Mississippi. They lived in a home in Sandy Hook. Nationwide Property & Casualty Insurance Company insured the home under a policy bought by Breeden that named him as the insured. The
> FACTS Jeffrey Stambovsky signed a contract to buy Helen Ackley’s house in Nyack, New York. After the contract was signed, Stambovsky discovered that the house was widely reputed to be haunted. The Ackley family claimed to have seen poltergeists on numero
> FACTS Junior and Wilma Thompson sold twenty- one of their fifty acres of land in Missouri to Walnut Bowls, Inc. The deed expressly reserved an easement to the Thompsons’ remaining twenty- nine acres. The deed did not fix a precise location for the easeme
> FACTS Craig Matus held a life estate in certain residential real property in Huntington, New York. On the termination of the life estate, title to the property was to transfer to Main Omni Realty Corporation, a wholly owned subsidiary of New York Communi
> FACTS Gladys Piper died intestate (without a will) in 1982. At her death, she owned miscellaneous personal property worth $5,000 and had in her purse $200 in cash and two diamond rings. Wanda Brown, Piper’s niece, took the contents of the purse, allegedl
> St. Luke’s Health Systems, Ltd., operated an emergency clinic in Nampa, Idaho. Saltzer Medical Group, P.A., had thirty-four physicians practicing at its offices in Nampa. Saint Alphonsus Health System, Inc., operated the only hospital in Nampa. St. Luke’
> FACTS Rex Woodward contracted with Thomas DeVito, one of the original members of the Four Seasons rock band, to ghostwrite DeVito’s autobiography. Before it was published, Woodward died, and his interest in the manuscript’s copyright passed to his widow,
> FACTS From 1999 through 2002, Todman & Company, CPAs, audited the financial statements of Direct Brokerage, Inc. (DBI), a broker-dealer in New York registered with the Securities and Exchange Commission (SEC). Each year, Todman issued an unqualified opin
> FACTS Domingo Martinez and Reyna Guido had two minor children when Martinez was killed in a hit-and-run accident. Guido became the personal representative of Martinez’s estate and retained attorney Sandra Stern to file a wrongful death lawsuit. Stern did
> FACTS The parents of B.L.H. (Barbara) lived in Virginia until their divorce, when primary custody of Barbara was granted to the mother. The mother and Barbara moved to North Carolina. Two years later, the father was convicted of drug-related offenses and
> FACTS Duane O’Malley operated Origin Fire Protection. Michael Pinski hired Origin to remove and dispose of 2,200 feet of insulation from a building Pinski owned in Kankakee, Illinois. The insulation contained asbestos, which Pinski, O’Malley, and O’Malle
> FACTS POM Wonderful, LLC makes and sells pomegranate-based products. In ads, POM touted medical studies claiming to show that daily consumption of its products could treat, prevent, or reduce the risk of heart disease, prostate cancer, and erectile dysfu
> FACTS James Batson bought a nonrefundable ticket from Live Nation Entertainment, Inc., to attend a rock concert at the Charter One Pavilion in Chicago. The front of the ticket noted that the price included a nine-dollar parking fee. Batson did not have a
> FACTS Pipefittings join together pipes and help direct the flow of pressurized water in pipeline systems. Certain municipal, state, and federal laws require waterworks projects to use fittings made in the United States, so specifications for such project
> PAJ, Inc., a jewelry company, had a commercial general liability (CGL) policy from Hanover Insurance Company. The policy required PAJ to notify Hanover of any claim or suit against PAJ “as soon as practicable.” Yurman Designs sued PAJ for copyright infri
> The National Collegiate Athletic Association (NCAA) and the National Federation of State High School Associations (NFHS), in an effort to enhance player safety and reduce technology-driven home runs and other big hits, set a standard for non-wood basebal
> The Wallen family owned a cabin on Lummi Island in the state of Washington. A driveway ran from the cabin across their property to South Nugent Road. Floyd Massey bought the adjacent lot and built a cabin on it in 1983. To gain access to his property, Ma
> Go to Appendix G at the end of this text and examine the excerpt of Case No. 7, Town of Midland v. Morris. Review and then brief the case, making sure that your brief answers the following questions. 1. Issue: On what issue did the parties ask the court
> On learning that Sébastien planned to travel abroad, Roslyn asked him to deliver $25,000 in cash to her family in Mexico. During a customs inspection at the border, Sébastien told the customs inspector that he carried less than $10,000. The officer disco
> Napster, Inc., offered a service that allowed its users to browse digital music files on other users’ computers and download selections for free. Music industry principals sued Napster for copyright infringement, and the court ordered Napster to remove f
> Many states have enacted laws that go even further than federal laws to protect consumers. These laws vary tremendously from state to state. 1. The first group will decide whether having different laws is fair to sellers, who may be prohibited from eng
> Residents of the city of Madison, Wisconsin, became concerned about overconsumption of liquor near the campus of the University of Wisconsin (UW). The city initiated a new policy, imposing conditions on area bars to discourage reduced-price “specials” th
> Go to Appendix G at the end of this text and examine the excerpt of Case No. 6, Leegin Creative Leather Products, Inc. v. PSKS, Inc. Review and then brief the case, making sure that your brief answers the following questions. 1. Issue: The dispute in t
> Write two paragraphs explaining some ways in which antitrust laws might place too great of a burden on commerce in the global marketplace.
> Vickie Lynn Smith, an actress and model also known as Anna Nicole Smith, met J. Howard Marshall II in 1991. During their courtship, J. Howard lavished gifts and large sums of money on Anna Nicole, and they married on June 27, 1994. J. Howard died on Augu
> Andrew Walker executed a will giving a certain parcel of real estate in fee simple to his three children from a previous marriage, Mark Walker, Michelle Peters, and Andrea Knox, with a “life use” in the property granted to his current spouse, Nora Walker
> Dayton Superior Corp. sells its products in interstate commerce to several companies, including Spa Steel Products, Inc. The purchasers often compete directly with each other for customers. From 2005 to 2007, one of Spa Steel’s customers purchased Dayton
> Sherman Hemsley was a wellknown actor from the 1970s. Most notably, he played George Jefferson on the television shows All in the Family and The Jeffersons. He was born to Arsena Chisolm and William Thornton. Thornton was married to another woman, and He
> Darling’s Rent-a-Car carried property insurance on its cars under a policy issued by Philadelphia Indemnity Insurance Co. The policy listed Darling’s as the “insured.” Darling’s rented a car to Joshuah Farrington. In the rental contract, Farrington agree
> Susie Walker executed a will that left her entire estate to her grandson. When her grandson died, Susie executed a new will that named her great-grandson as her sole beneficiary and specifically disinherited her son, Tommy. At the time, Tommy’s ex-wife w
> Marion Peterson executed a will that contained a bequest to Vasta Lucas in the form of a trust. On Lucas’s death, the trustee was to distribute the assets to four beneficiaries, including Peterson’s brother and sister, Arvin and Carolyn. Later, without w
> A Florida statute provides that the right of election of a surviving spouse can be waived by written agreement: “A waiver of ‘all rights,’ or equivalent language, in the property or estate of a present or prospective spouse . . . is a waiver of all righ
> Benjamin is a widower who has two married children, Edward and Patricia. Patricia has two children, Perry and Paul. Edward has no children. Benjamin makes a will leaving all his property equally to Edward and Patricia. The will provides that should a chi
> On October 10, Joleen Vora applied for a $50,000 life insurance policy with Magnum Life Insurance Co. She named her husband, Jay, as the beneficiary. Joleen paid the insurance company the first year’s premium on making the application. Two days later, be
> Alana Mansell built a garage on her property that encroached on the property of her neighbor, Betty Hunter, by fourteen feet. Hunter knew of the encroachment and informally agreed to it, but she did not transfer ownership of the property to Mansell. A su
> Bhanmattie Kumar was walking on a sidewalk in Flushing, New York, when she tripped over a chipped portion of the sidewalk and fell. The defective sidewalk was in front of a Pretty Girl store—one of a chain of apparel stores headquartered in Brooklyn—on p
> Flawlace, LLC, leased unfinished commercial real estate in Las Vegas, Nevada, from Francis Lin to operate a beauty salon. The lease required Flawlace to obtain a “certificate of occupancy” from the city to commence business. This required the installatio
> Together, EMI, Sony BMG Music Entertainment, Universal Music Group Recordings, Inc., and Warner Music Group Corp. produced, licensed, and distributed 80 percent of the digital music sold in the United States. The companies formed MusicNet to sell music t
> The McKeag family operated a marina on their lakefront property in Bolton, New York. For more than forty years, the McKeags used a section of property belonging to their neighbors, the Finleys, as a beach for the marina’s customers. The McKeags also stor
> Gi Hwa Park entered into a lease with Landmark HHH, LLC, for retail space in the Plaza at Landmark, a shopping center in Virginia. The lease provided that the landlord would keep the roof “in good repair” and that the tenant would obtain insurance on her
> Sarah has rented a house from Frank. The house is only two years old, but the roof leaks every time it rains. The water that has accumulated in the attic has caused stucco to fall off ceilings in the upstairs bedrooms, and one ceiling has started to sag.
> Wiley and Gemma are neighbors. Wiley’s lot is extremely large, and his present and future use of it will not involve the entire area. Gemma wants to build a single-car garage and driveway along the present lot boundary. Because the placement of her exist
> Twenty-two years ago, Lorenz was a wanderer. At that time, he decided to settle down on an unoccupied, three-acre parcel of land that he did not own. People in the area told him that they had no idea who owned the property. Lorenz built a house on the la
> Marcella Lashmett was engaged in farming in Illinois. She had two daughters, Christine Montgomery and Cheryl Thomas. Christine was also a farmer. She often borrowed Marcella’s farm equipment. More than once, Christine used the equipment as a trade-in on
> Sara Simon misplaced her Galaxy cell phone in Manhattan, Kansas. Days later, Shawn Vargo contacted her, claiming to have bought the phone from someone else. He promised to mail it to Simon if she would wire $100 to him through a third party, Mark Lawrenc
> Jennifer Koerner adopted a dog—called the Stig—from the Anti-Cruelty Society in Chicago, Illinois, for $95. Koerner wrote a poem and presented it to Kent Nielsen, her live-in boyfriend. In the poem, she expressed her intent to give the Stig to him as a g
> Bob Moreland left his plane at Don Gray’s aircraft repair shop to be painted. When Moreland picked up the airplane, he was disappointed in the quality of the work and pointed out numerous defects. Moreland refused to pay Gray and flew the plane to anothe
> John Wasniewski opened a brokerage account with Quick and Reilly, Inc., in his son James’s name. Twelve years later, when the balance was $52,085, the account was closed, and the funds were transferred to a joint account in the names of John and James’s
> When Deer Valley Resort Co. (DVRC) was developing its ski resort in the Wasatch Mountains near Park City, Utah, it sold parcels of land in the resort village to third parties. Each sales contract reserved the right of approval over the conduct of certain
> Orlando borrows a rototiller from his neighbor, Max. Max has not used the rototiller for two years. Orlando has never owned a rototiller and is not familiar with using one. Max previously used this rototiller often, and if he had made a reasonable inspec
> Curtis is an executive on a business trip to the West Coast. He has driven his car on this trip and checks into the Hotel Ritz. The hotel has a guarded underground parking lot. Curtis gives his car keys to the parking lot attendant but fails to notify th
> Jaspal has a severe heart attack and is taken to the hospital. He is aware that he is not expected to live. Because he is a bachelor with no close relatives nearby, Jaspal gives his car keys to his close friend Friedrich, telling Friedrich that he is exp
> Discuss the standard of care traditionally required of the bailee for the bailed property in each of the following situations, and determine whether the bailee breached that duty. 1. Ricardo borrows Steve’s lawn mower because his own lawn mower needs re
> Portland Shellfish Co. processes live shellfish in Maine. As one of the firm’s two owners, Frank Wetmore held 300 voting and 150 nonvoting shares of the stock. Donna Holden held the other 300 voting shares. Donna’s husband, Jeff, managed the company’s da
> Luis and Maria Rojas contracted to buy a house in Westchester County, New York, from Andrew and Karen Paine. The house was on property designated as “Lot No. 8” on a subdivision map filed in the county clerk’s office. The Paines had acquired the property
> In 2006, twenty- seven parties became limited partners in two hedge funds that had invested with Bernard Madoff and his investment firm. The partners’ investment adviser gave them various investment information, including a memorandum indicating that an
> Jeffery Guerrero hired James McDonald, a certified public accountant, to represent him and his business in an appeal to the Internal Revenue Service. The appeal concerned audits that showed Guerrero owed more taxes. When the appeal failed, McDonald assis
> Soon after Teresa DeYoung’s husband died, her mother-in-law also died, leaving an inheritance of more than $400,000 for DeYoung’s children. DeYoung hired John Ruggerio, an attorney, to ensure that her children would receive it. Ruggerio advised her to in
> A West Virginia bank ran its asset value from $100 million to $1 billion over seven years by aggressively marketing subprime loans. The Office of the Comptroller of the Currency, a federal regulator, audited the bank and discovered that the books had bee
> John Sheridan owned a Marathon gas station franchise. He sued Marathon Petroleum Co. under Section 1 of the Sherman Act and Section 3 of the Clayton Act, charging it with illegally tying the processing of credit-card sales to the gas station. As a condit
> The accounting firm of Goldman, Walters, Johnson & Co. prepared financial statements for Lucy’s Fashions, Inc. After reviewing the financial statements, Happydays State Bank agreed to loan Lucy’s Fashions $35,000 for expansion. When Lucy’s Fashions decla
> Larkin, Inc., retains Howard Perkins to manage its books and prepare its financial statements. Perkins, a certified public accountant, lives in Indiana and practices there. After twenty years, Perkins has become a bit bored with generally accepted accoun
> ICG Hazard, LLC, operates the Thunder Ridge surface coal mine in Leslie County, Kentucky, under a National Pollutant Discharge Elimination System permit issued by the Kentucky Division of Water (KDOW). As part of the operation, ICG discharges selenium in
> Innovative Marketing, Inc. (IMI), sold “scareware”—computer security software. IMI’s Internet ads redirected consumers to sites where they were told that a scan of their computers had detected dangerous files—viruses, spyware, and “illegal” pornography.
