If a corporation fails to conduct its operations ethically or respond quickly to an ethical crisis, what might happen?
> What is the mirror image rule?
> 1. Could the bank legally have terminated its promise to honor overdrafts? 2. Although this problem appears to be one involving a breach of contract, could there be any other grounds on which O’Banion might recover?
> If Larson had paid Smith for the note with a check, and before Smith cashed the check, Larson learned of Morrison’s defense against payment on the note, would Larson have qualified as an HDC?
> If Smith had owed Larson the same amount as represented by Morrison’s note and given the note to Larson as payment for the debt, would Larson have been able to hold Morrison liable on the note?
> Does Dark Day’s trade acceptance serve as a substitute for money or as a credit device?
> Is Dark Day’s trade acceptance a sight draft or a time draft?
> According to the FTC, ads must be substantiated by well-controlled scientific studies or the ads will be considered deceptive. In one case, the FTC charged that the claims made in an ad for a sunburn treatment were unsupported by direct studies on human
> What was the underlying social policy that prompted the Federal Trade Commission (FTC) to rule against Campbell’s?
> Does an “as is” clause in a sales contract bar all claims of fraud? Explain.
> What would a person who buys a car have to show to prove that the seller breached the implied warranty of merchantability?
> What would be Roger’s obligations if the contract with Arturo were a destination contract?
> What determines whether a contract is classified as unilateral or bilateral?
> Imagine that Arturo is located in Denver. What would be Roger’s obligations if the contract with Arturo were a shipment contract?
> If the contract is breached, who bears the risk?
> If the parties to a contract do not specify when the risk of loss passes, and the goods are to be delivered under a destination contract, when does the risk pass?
> How does the UCC deal with the question of software as a good or service?
> Computer systems consist of hardware and software. Hardware includes a computer’s monitor, electronic circuitry, and items such as keyboards and printers. Hardware is clearly a “good.” Software refers in part to the medium that stores computer data. I
> Is domestic abuse something that parties should be expected to contract around?
> Suppose that the “no contact” stipulation had exempted Primetime’s employees. Would the result be different?
> If W&D fraudulently procured the right to Mark’s payment, can Mark raise the fraud as a defense against payment to A-Able?
> Webb & Dratler (W&D) is a clothing retailer. W&D grants Mark, its customer, credit. As a creditor, W&D assigns its right to Mark’s payment to A-Able Financial Services, a collection agency. Which party is the assignor, which party is the assignee, and
> Microtop, Inc., offers Bill a job developing new software that will triple the speed of Microtop hard drives. Microtop management believes that it is unlikely Bill will complete the job in less than eighteen months. Bill claims that he can do it in les
> In what ways might the law terminate an offer?
> If an employer wanted to contract to hire you for one year, with the employment to begin two weeks from Monday, would the contract have to be in writing to be enforceable?
> As in the previous question, suppose that the car wash had been properly winterized. If Lucinda offered Mauricio one price and inadvertently typed a different, higher price into the contract, can she be held to the typewritten amount?
> Suppose that the car wash had been properly winterized. If Lucinda offered Mauricio considerably less for the property than its possible market value and Mauricio accepted the offer, could he avoid the contract on later learning that he might have sold i
> In the nineteenth century, lotteries were widely used to raise money for government buildings and improvements to the infrastructure. Gambling was controversial, however, and by the time of the Civil War, only Delaware and Kentucky had legal lotteries.
> On what basis might the court have enforced the agreement in this problem?
> Suppose that Sierra stated she was eighteen years old when she signed the arbitration agreement. How might this affect her right to disaffirm it?
> Did Sierra have the contractual capacity to enter into a contract? Why or why not?
> Steven wants to make a binding promise to give $30,000 of stock in DP Chemical Corporation to his son Doug. Knowing that a gratuitous promise is not binding, Steven writes out and signs a false statement that says Doug presented him with an expensive ca
> Gustavo offers to buy Donna’s business—Donna’s Dry Cleaners—and to pay Donna $50,000 in exchange. Donna accepts and gives the keys to the shop and papers of ownership to Gustavo. Is there consideration for Gustavo’s promise?
> When would one party’s acceptance of the other’s terms have been considered binding in this situation?
> How can an offeror or offeree terminate an offer?
> Assuming that the parties had not included an expiration date for their settlement offers and could revoke them at any time, what actions might have constituted an effective revocation?
> Suppose that the concertgoer claimed to have recorded the concert by “mistake.” Would a court accept such an assertion to excuse a party’s breach?
> Define the terms contract, promise, and breach of contract.
> Suppose that a foreign nation does not prosecute cyber criminals and does not cooperate with U.S. authorities to investigate cyber crimes against U.S. citizens. What effect might this have on the deterrence or proliferation of cyber crime?
> Why will cyber crime always be a worldwide problem?
> Suppose that the site using candyland.com had not been sexually explicit but had sold candy. Would the result have been the same? Explain.
> How can companies protect themselves from others who create Web sites that have similar domain names, and what limits each company’s ability to be fully protected?
> What is the purpose of tort law?
> What is a tort?
> Why might protection of commercial speech be limited?
> What do formal contracts require to be enforceable?
> When and why does a court apply the decision of another court to determine the result in a case?
> Is the free flow of commercial information essential to a free enterprise system? Why?
> Imagine that Ace Corporation employs sales representatives in New York to market Ace products in that state. Ace has no offices in New York, however, and does not keep any inventory there. Could a New York state court exercise jurisdiction over Ace?
> Would the answer to this problem be different if Rob were a corporation, or other business, instead of an individual?
> What should be the measure of corporate responsibility?
> What are statutes?
> What are the differences between remedies at law and in equity?
> What overall effect do the principle of comity and the other international legal doctrines discussed here have on the protection for U.S. firms that own property abroad?
> What is the principle of comity, and why do courts deciding disputes involving a foreign law or judicial decree apply this principle?
> Apple, Inc., controls which apps—such as ringtones, instant messaging, and video—can run on its iPhone software. Apple’s App Store is a website where iPhone users can buy and download the apps. Apple prohibits third-party developers from selling iPhone a
> Which steps normally establish an implied contract?
> Should all commercial arrangements subject to the antitrust laws be evaluated under the rule of reason? Discuss.
> The Delaware River Port Authority (DRPA) solicited bids to repaint the Commodore Barry Bridge, a mile-long structure spanning the Delaware River between New Jersey and Pennsylvania. Alpha Painting & Construction Company, an experienced contractor that ha
> Should an individual or organization sue an agency before the agency takes formal enforcement action? Discuss your answer.
> Ann Dewey’s financial planner, Timothy Bultman, referred her to his friend Robert Wilmot for estate-planning services. Wilmot did not know Dewey, her family situation, or anything about her affairs until they met. He drafted a will for her and named hims
> Under what circumstances might it be appropriate to ignore the provisions in a will?
> F.A. Investment Group, Inc., owned an apartment building in Philadelphia, Pennsylvania. Over a two-year period, the city cited F.A. Investment for a variety of housing code violations. These violations included failure to maintain regular electrical serv
> What is a landlord’s ethical duty with respect to keeping rental premises “fit for human habitation”?
> Class A Investors Post Oak and the Cosmopolitan Condominium Owners Association each owned adjacent pieces of property in Houston, Texas. Each organization planned to build a high-rise tower on its lot. They signed an agreement that granted each of them a
> What public policies might underlie the doctrine of adverse possession
> KZY Logistics, LLC, transported a load of Mrs. Ressler’s Food Products from New Jersey to California. When KZY’s driver delivered the cargo, the customer rejected it—its temperature was higher than expected, making it unsafe. Mrs. Ressler’s filed a suit
> Identify the element that is of prime importance in determining whether a contract has been formed.
> What standard of care over bailed property should be expected of bailees?
> Mansoor Akhtar lived rent-free in the basement of Anila Dairkee’s duplex in Minneapolis, Minnesota, for more than a year. When Dairkee asked Akhtar to move out, he refused. She then changed the locks and advised him to remove his property from the duplex
> Is it unethical to download a digital file without the owner’s permission? Discus.
> Bernd Moving Systems owned a warehouse in Yakima, Washington. American Guarantee & Liability Insurance Company insured Bernd under a policy that included coverage of “Personal property of others in your care, custody and control.” Before storing property
> Should an insurance agent be held to a duty to advise applicants about coverage? Why or why not?
> Jevic Transportation Corporation filed a petition in a federal bankruptcy court for a Chapter 11 reorganization. A group of former Jevic truck drivers filed a suit and won a judgment against the firm for unpaid wages. This judgment entitled the workers t
> What are some of the factors that might be considered in deciding whether a debtor should be allowed to declare bankruptcy?
> Carmen Johnson operated CJ Lending as a so-called credit-repair business. Real estate agent Edgar Tibakweitira paid Johnson to fabricate credit histories for certain individuals who had no such histories. Johnson submitted the data to credit-reporting ag
> What purpose is served by the seizure and sale of property on the mortgagor’s default? Why notify the mortgagor of the foreclosure?
> Woodsmill Park Limited Partnership borrowed $6.2 million secured by real property in Chicago, Illinois. Bill and Brian Bruce, and Matthew O’Malley, signed guaranties to meet Woodsmill’s obligation on the loan. Woodsmill defaulted on the payments. Northbr
> Define contract.
> Does the potential harm of allowing a creditor to repossess collateral on a debtor’s default, without going to court, outweigh the benefit? Discuss.
> Ian Bell loaned $250,000 to Bio Defense Corporation, a waste management company in Massachusetts. Before Bell’s loan came due, Boston Local Development Corp. (BLDC) foreclosed on its own loan to Bio Defense, forcing Bio Defense to cease operations and be
> Why should shareholders be required to approve certain types of corporate actions?
> Hewlett-Packard Company (HP) monitored the phones of its directors to find the sources of leaks of company information to the media. When the government learned of the monitoring, criminal charges were brought against HP’s officers. Mark Hurd, HP’s chief
> Under what circumstances might a director’s sale of corporate property to himself or herself be justified?
> Lester Fulmer sold H2O Lifts and Ramps, LLC (H2O), to Hurt-Hoover Investments, LLC (HHI). HHI agreed to pay $550,000 of the price by a note in thirty-six installments. From the installments, HHI deducted offsets, including charges for expenses incurred b
> Why do companies need to be careful about whom they hire and how much they supervise or monitor their employees?
> Tom George was the sole owner of Turbine Component Super Market, LLC (TCSM), when its existence was terminated by the state of Texas. Turbine Resources Unlimited filed and won a suit in a Texas state court against George for breach of contract. The plain
> Why should partnership agreements be in writing?
> McLane Company supplies and distributes goods to retailers. McLane requires employees with physically demanding jobs to take physical evaluations. Damiana Ochoa had such a job with McLane for eight years before she took maternity leave. When she returned
> How are trade secrets protected by the law?
> Should English-only policies in the workplace be considered a form of national-origin discrimination? Explain.
> Split Rail Fence Company sells and installs fencing materials in Colorado. U.S. Immigration and Customs Enforcement (ICE) sent Split Rail a list of the company’s employees whose documentation did not satisfy the Form I-9 employment eligibility verificati
> Should workers’ compensation be denied to a worker who is injured off the employer’s premises, regardless of the reason the worker is off the premises? Why or why not?
> Devin Fink was the manager of Precision Tune Auto Care in Charlotte, North Carolina. Randall Stywall brought her car to the shop to have its rear shocks replaced. Fink filled out the service order, which included a cost estimate. Later, Stywall returned
> Are there situations in which the duty of loyalty could conflict with other duties? Explain your answer.
> While working as David Ducote’s assistant, Michelle Freytag fraudulently obtained a credit card in his name from Whitney National Bank in Louisiana. Freytag told the bank to pay the credit card balances with funds from Ducote’s bank account. The bank sen
> Why should a customer have to report a forged or unauthorized signature on a paid check within a certain time to recover the amount of the payment?
> Should a bank that acts in “bad faith” be barred from raising the fictitious payee rule as a defense? Explain your answer.
> Why is good faith required to attain HDC status?
> Should legal problems be anticipated? Why and why not?
> How is cyber crime distinguished from other crimes?
