In the 1990s, DuCoa, L.P., made choline chloride, a B-complex vitamin essential for the growth and development of animals. DuCoa, Bio products, Inc., and Chinook Group, Ltd., each had one-third of the U.S. market for choline chloride. To stabilize the market and keep the price of the vitamin higher than it would otherwise have been, the companies took action. They agreed to fix the price and allocate market share by deciding which of them would offer the lowest price to each customer. At times, however, the companies disregarded the agreement. During an increase in competitive activity in August 1997, Daniel Rose became president of DuCoa. The next month, a subordinate advised him of the conspiracy. By February 1998, Rose had begun to implement a strategy to persuade DuCoa’s competitors to rejoin the conspiracy. By April, the three companies had reallocated their market shares and increased their prices. In June, the U.S. Department of Justice began to investigate allegations of price fixing in the vitamin market. Ultimately, a federal district court convicted Rose of conspiracy to violate Section 1 of the Sherman Act. (a) The court “enhanced” Rose’s sentence to thirty months’ imprisonment, one year of supervised release, and a $20,000 fine. Among other things, the court based this enhancement on Rose’s role as “a manager or supervisor” in the conspiracy. Rose appealed the enhancement to the U.S. Court of Appeals for the Fifth Circuit. Was it fair to increase Rose’s sentence on this ground? Why or why not? (b) Was Rose’s participation in the conspiracy unethical? If so, how might Rose have behaved ethically instead? If not, could any of the participants’ conduct be considered unethical? Explain.
> Nike, Inc., designs, makes, and sells athletic footwear, including a line of shoes known as “Air Force 1.” Already, LLC, also designs and markets athletic footwear, including the “Sugar” and “Soulja Boy” lines. Nike filed a suit in a federal district cou
> USS–POSCO Industries (UPI) in Pittsburg, California, hired Floyd Case in 2007. He initially worked as an entry level Laborer and Side Trim Operator. As a condition of employment, Case joined Local 1440 of the United Steelworkers of America. UPI faced a s
> William E. Story, Sr., was the uncle of William E. Story II. In the presence of family members and others, the uncle promised to pay his nephew $5,000 ($76,000 in today’s dollars) if he would refrain from drinking, using tobacco, swearing, and playing ca
> Melinda Hinkal filed a suit in a Pennsylvania state court against personal trainer Gavin Pardoe and Gold’s Gym, Inc., alleging that she sustained a serious neck injury while using a piece of exercise equipment under. Pardoe’s direction at Gold’s Gym. Hin
> Basis Technology Corporation created software and provided technical services for a Japanese-language Web site belonging to Amazon.com, Inc. The agreement between the two companies allowed for separately negotiated contracts for additional services that
> Assume that you are part of a group of executives at a large software corporation. The company is considering whether to incorporate covenants not to compete into its employment contracts. You know that there are some issues with the enforceability of th
> W. O. Lucy, the plaintiff, filed a suit against A. H. and Ida Zehmer, the defendants, to compel the Zehmers to transfer title of their property, known as the Ferguson Farm, to the Lucys (W. O. and his wife) for $50,000, as the Zehmers had allegedly agree
> Actor Robert Wagner entered into an agreement with Spelling-Goldberg Productions (SGP) “relating to Charlie’s Angels (herein called the ‘series’).” The contract entitled Wagner Charlie’s Angels to 50 percent of the net profits that SGP received from broa
> Lou Sisuphan was the director of finance at a Toyota dealership. His responsibilities included managing the financing contracts for vehicle sales and working with lenders to obtain payments. Sisuphan complained repeatedly to management about the performa
> Defendant Cornell University in Ithaca, New York appointed plaintiff Leslie Weston to an associate professorship in 1998 for an initial term of five years. The 1998 offer letter described the position as being “with tenure,” but it stated that, although
> A federal district court jury convicted Mauricio Warner on all 50 counts of an indictment that charged him with obtaining individuals’ identities and using such identities to file over 5,000 false income tax returns resulting in millions of dollars in re
> Karen Schwarck was operating an Arctic Cat 660 snowmobile near Mackinac Island’s Grand Hotel in Michigan with her sister, Edith Bonno, as passenger. The sisters met their demise when the Arctic Cat went, in reverse, backward through a wooden fence and ov
> Maria Nucci filed a suit in a Florida state court against Target Corporation, alleging that she suffered an injury when she slipped and fell on a “foreign substance” on the floor of a Target store. Target filed a motion to compel an inspection of Nucci’s Fa
> David and John Textor both have companies which produce holograms used in the music industry. Shortly before the Billboard Music Awards show, it was announced that Textor’s company, Pulse Entertainment, would show a Michael Jackson hologram performance.
> Winstead filed his complaint in the United States District Court for the District of New Jersey, claiming that Jackson’s album/CD and film derived their contents from, and infringed the copyright of, his book. The District Court dismissed Winstead’s comp
> Brothers Jimmy and Larry Flynt owned “The Hustler Club,” a bar and nightclub in Cincinnati, Ohio. Larry opened Hustler clubs in other Ohio cities. Within a few years, he also began publishing Hustler, a sexually explicit magazine. Larry formed LFP IP, In
> It has been estimated that for every dollar spent cleaning up hazardous waste sites, administrative agencies spend seven dollars in overhead. (a) The first group will list and explain possible ways to trim these administrative costs. (b) The second group
> Drew VeRost was employed at a manufacturing facility in Buffalo, New York, owned by Nuttall Gear, LLC. While operating a forklift at Nuttall’s facility, VeRost climbed out of the seat and attempted to engage a lever on the vehicle. As he stood on the fro
> Wyeth, LLC—a subsidiary of Pfizer, Inc.—is an international pharmaceutical and health-care company with its corporate headquarters in Madison, New Jersey. Wyeth develops, makes, and markets medical therapies, clinical programs, nutritional supplements, p
> Delinda Taylor went to a Seattle Mariners baseball game at Safeco Field with her boyfriend and her two minor sons. Their seats were four rows up from the field along the right field foul line. They arrived more than an hour before the game so that they c
> Joseph Guido bought a parcel of land in Stillwater, New York, that contained nine rental houses. The houses shared a waste disposal system that was defective. Guido had a new septic system installed. When town officials discovered sewage on the property,
> Giustibelli represented Copia Blake in a dissolution of marriage proceeding brought against Peter Birzon. After a breakdown in the attorney-client relationship between Giustibelli and her client, Blake, and oddly, Birzon as well, took to the Internet to
> Plaintiff Moseley is an employee of Defendant Pepco Energy Services, Inc. (“PES”). He has been employed by PES or its corporate predecessors for over twenty-five years. PES, a subsidiary of Defendant Pepco Holdings, Inc. (“PHI”), provides deregulated ene
> Bad Frog Brewery, Inc., makes and sells alcoholic beverages. Some of the beverages feature labels that display a drawing of a frog making the gesture generally known as “giving the finger.” Bad Frog’s authorized New York distributor, Renaissance Beer Com
> Rick Scott deposited $2 million into an escrow account maintained by a company owned by Salvatore Carpanzano. Immediately after the deposit was made, in violation of the escrow agreement, the funds were withdrawn. When Scott was unable to recover his mon
> Michael Thompson, a Muslim inmate incarcerated at Waupun Correctional Institution in Wisconsin, sued members of the prison staff for violating his right under the First Amendment to exercise his religion freely. The violation occurred, Thompson says, whe
> In the 1950s, the United States Supreme Court ruled that racial segregation imposed by the states in school systems and other public facilities violated the Constitution. Privately owned facilities were not affected until Congress passed the Civil Rights
> Maureen Droge was a flight attendant for United Air Lines, Inc. (UAL). After being assigned to work in Paris, France, she became pregnant. Because UAL does not allow its flight attendants to fly during their third trimester of pregnancy, Droge was placed
> Background and Facts Phillips Brothers, LP (limited partnership), Harry Simmons, and Ray Winstead were the owners of Kilby Brake Fisheries, LLC (limited liability company), a catfish farm in Mississippi. For nearly eight years, Winstead operated a hatche
> When a plaintiff alleges discrimination but offers no direct evidence of discrimination, the plaintiff bears the initial burden to establish a prima facie case of discrimination. This requires a showing that (1) the plaintiff is a member of a protected c
> Espresso Disposition Corporation 1 and Rowland Coffee Roasters, Inc. (collectively “Appellants”) seek review of the trial court’s order denying their motions to dismiss [Santana Sales & Marketing Group, Inc.’s (“Appellee’s”)] third amended complaint. App
> Jennifer Johnson was working as a finance analyst for Oxy USA, Inc., when Oxy changed the job’s requirements. To meet the new standards, Johnson took courses to become a certified public accountant. Oxy’s “Educational Assistance Policy” was to reimburse em
> Gucci America, Inc., a New York corporation headquartered in New York City, is part of Gucci Group, a global fashion firm with offices in China, France, Great Britain, Italy, and Japan. Gucci makes and sells high-quality luxury goods, including footwear, b
> Kelley Mala is a citizen of the United States Virgin Islands. He went for a cruise in his powerboat near St. Thomas, Virgin Islands. When his boat ran low on gas, he entered Crown Bay Marina to refuel. Mala tied the boat to one of Crown Bay’s eight fueli
> The United Effort Plan Trust “UEP Trust” or the “Trust” was formed in Utah by members of the Fundamentalist Church of Jesus Christ of Latter-Day Saints “FLDS Church”. The Trust members deeded their property to the UEP Trust to be managed by Church leader
> Asphalt & Concrete Services, Inc. (ACS), was working on a play pad at St. John Regional Catholic School in Frederick, Maryland. ACS project manager Blake Wood contacted William Johnson at Higher Power Trucking, LLC, to arrange for a dump truck to haul ma
> Some argue that the best way to stop patent trolls from taking advantage of the system would be to eliminate software patents completely and pass a law that makes software un patentable. Would this be fair to software and technology companies? Why or why
> Why might the new SEC pay-ratio disclosure rule cause certain businesses to eliminate low-wage workers?
> Angie Jolson is the chair of the board of directors of Artel, Inc., and Sam Douglas is the chair of the board of directors of Fox Express, Inc. Jolson and Douglas meet to consider the possibility of combining their corporations into a single corporate en
> Professional Products, Inc. (PPI), bought three pallets of computer wafers from Omneon Video Graphics. (A computer wafer is a thin, round slice of silicon from which microchips are made.) Omneon agreed to ship the wafers to the City University of New Yor
> How might the new SEC pay-ratio disclosure rule help shareholders?
> Gilbert Church owned a horse breeding farm managed by Herb Bagley. Advertisements for the breeding rights to one of Church Farm’s stallions, Imperial Guard, directed all inquiries to “Herb Bagley, Manager.” Vern and Gail Lundberg bred Thoroughbred horses
> Janell Arden is a purchasing agent–employee for the A&B Coal Supply partnership. Arden has authority to purchase the coal needed by A&B to satisfy he needs of its customers. While Arden is leaving a coal mine from which she has just purchased a large qua
> Paul and Julie Leonard’s two-story home in Pascagoula, Mississippi, is only twelve feet above sea level and fewer than two hundred yards from the Gulf of Mexico. In 1989, the Leonards bought a homeowners’ insurance policy from Jay Fletcher, an agent for
> American National Property and Casualty Co. issued an insurance policy to Robert Houston, insuring certain residential property and its contents against fire and other hazards. Twenty months later, Houston issued a quitclaim deed to the property to John
> Sherman Hemsley was a well-known 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 H
> Leo and Mary Deters owned Deters Tower Service, Inc., in Iowa. Deters Tower serviced television and radio towers and antennas in a multistate area. The firm obtained a commercial general liability policy issued by USF Insurance Co. to provide coverage fo
> Arthur and Diana Ebanks owned three properties in the Cayman Islands in joint tenancy. With respect to joint tenancies, Cayman law is the same as U.S. law. When the Ebanks divorced, the decree did not change the tenancy in which the properties were held.
> James Bubenik, a dentist, had two patients die while under sedation within six months. Bubenik had medical malpractice insurance with Medical Protective Co. (MPC). The families of both patients sued Bubenik for malpractice. A clause in Bubenik’s policy s
> The limited liability company (LLC) may be the best organizational form for most businesses. For a significant number of firms, however, the corporate form or some other form of organization may be better. (a) The first group will outline several reasons
> Elnora Maxey became the guardian of Sean Hall after his parents died. In 1996, Maxey died, and her will left the two houses in her estate to Hall. Julia Jordan became Hall’s new guardian, and when she died, her husband, John Jordan, became Hall’s guardia
> Go to Case Analysis 49.3, Montgomery County v. Bhatt. Read the excerpt, and answer the following questions. (a) Issue: What conflict, and between which parties, did this case highlight? (b) Rule of Law: On which specific requirement of what rule of law d
> Lockheed Martin Corporation owned an aluminum refinery in St. Croix, Virgin Islands, that produced hazardous waste. Lockheed sold the refinery to Glencore Ltd. Their contract provided that Glencore would indemnify Lockheed for “pre-closing” environmental
> After Dave Conley died of lung cancer, his widow filed for benefits under the Black Lung Benefits Act. To qualify for benefits under the act, she had to show that exposure to coal dust was a substantial contributing factor to her husband’s death. Conley
> Brian Cleary and Rita Burke filed a suit against cigarette maker Philip Morris USA, Inc., seeking class-action status for a claim of deceptive advertising. Cleary and Burke claimed that “light” cigarettes, such as Marlboro Lights, were advertised as safe
> Jason Crippen and Catharyn Campbell of Knoxville, Tennessee, were involved in a romantic relationship for many months. Their relationship culminated in an engagement on December 25, 2005, when Crippen placed an engagement ring on Campbell’s finger and si
> Christie’s Fine Art Storage Services Inc. (CFASS) is in the business of storing fine works of art at its warehouse in Brooklyn, New York. The warehouse is next to the East River in a flood zone. Boyd Sullivan owns works of art by Alberto Vargas, includin
> Knox Creek Coal Corporation operates coal mines in West Virginia. The U.S. Department of Labor charged Knox’s Tiller No. 1 Mine with “significant and substantial” (S&S) violations of the Federal Mine Safety and Health Act. According to the charges, inade
> In 2006, twenty’s even entities 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
> Go to Case Analysis 45.1, Friends of Animals v. Clay. Read the excerpt and answer the following questions. (a) Issue: What regulation was at issue in this case? What activity does it regulate? (b) Rule of Law: What rule of statutory interpretation did th
> Nicole Tipton and Sadik Seferi owned and operated a restaurant in Iowa. Acting on a tip from the local police, agents of Immigration and Customs Enforcement executed search warrants at the restaurant and at an apartment where some restaurant workers live
> To ensure highway safety and protect driver health, Congress charged federal agencies with regulating the hours of service of commercial motor vehicle operators. Between 1940 and 2003, the regulations that applied to long-haul truck drivers were mostly u
> Richard Vanderbrook’s home in New Orleans, Louisiana, was insured through Unitrin Preferred Insurance Co. His policy excluded coverage for “flood, surface water, waves, tidal water, overflow of a body of water, or spray from any of these, whether or not
> The U.S. National Park Service (NPS) manages the Grand Canyon National Park in Arizona under a management plan that is subject to periodic review. In 2006, after nine years of background work and the completion of a comprehensive environmental impact sta
> A Question of Ethics—Fair Debt-Collection Practices. Barry Sussman graduated from law school, but also served time in prison for attempting to collect debts by posing as an FBI agent. He theorized that if a debt collection business collected only debts t
> McDonald’s Corp.’s Happy Meal® meal selection consists of an entrée, a small order of french fries, a small drink, and a toy. In the early 1990s, McDonald’s began to aim its Happy Meal marketing at children aged one to three. In 1995, McDonald’s began ma
> Go to Case Analysis 41.1 In re Trulia, Inc. Stockholder Litigation. Read the excerpt and answer the following questions. (a) Issue: On what basis did the plaintiffs in this case seek to enjoin the proposed merger? (b) Rule of Law: What is the standard fo
> A well-documented rise in global temperatures has coincided with a significant increase in the concentration of carbon dioxide in the atmosphere. Many scientists believe that the two trends are related, because when carbon dioxide is released into the at
> The Investment Company Act prohibits a mutual fund from engaging in certain transactions when there may be a conflict of interest between the manager of the fund and its shareholders. Under rules issued by the Securities and Exchange Commission (SEC), ho
> In New York City, 2406-12 Amsterdam Associates LLC brought an action in a New York state court against Alianza Dominicana and Alianza LLC to recover unpaid rent. The plaintiff asserted cause to pierce the corporate veil, alleging that Alianza Dominicana
> Dilean Reyes-Rivera was the president of Global Reach Trading (GRT), a corporation registered in Puerto Rico. His brother Jeffrey was the firm’s accountant. Along with GRT sales agents and other promoters, the brothers solicited funds from individuals by
> Three and a half years after Lauren and Warren Woodward were married, they were informed that Warren had leukemia. At the time, the couple had no children, and physicians told the Wood wards that the leukemia treatment might leave Warren sterile. The cou
> Peaberry Coffee, Inc., owned and operated about twenty company stores in the Denver area. The company began a franchise program and prepared a disclosure document as required by the Federal Trade Commission (FTC). Peaberry sold ten franchises, and each f
> In 2004, the Watergate Hotel in Washington, D.C., obtained a loan from PB Capital. At this time, hotel employees were represented by a labor union, and under a collective bargaining agreement, the hotel agreed to make contributions to an employees’ pensi
> While 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 certai
> Designer Surfaces, Inc., supplied countertops to homeowners who shopped at stores such as Lowe’s and Costco. The homeowners paid the store, which then contracted with Designer to fabricate and install the countertops. Designer bought materials from Arizo
> Topps Co. makes baseball and other trading cards, includCo. makes baseball and other trading cards, includCo. makes baseball and other trading cards, includ ing the Pokemon collection, and distributes Bazooka bubble gum and other confections. One of the
> FCR Realty, LLC, and Clifford B. Green & Sons, Inc., were co-owned by three brothers—Frederick, Clifford Jr., and Richard Green. Each brother was a shareholder of the corporation. Frederick was a controlling shareholder, as well as president. Each brothe
> Jamel Blanton was a male employee at a Pizza Hut restaurant operated by Newton Associates, Inc., in San Antonio, Texas. Blanton was subjected to sexual and racial harassment by the general manager, who was female. Newton had a clear, straightforward anti
> Bill McCann was the president and chief executive officer of McCann Ranch & Livestock Co. He and his brother Ron each owned 36.7 percent of the stock. Ron had been removed from the board of directors on their father’s death, however, and was not authoriz
> Stanka Woods was the sole member of Hair Ventures, LLC. Hair Ventures owned 3 million shares of stock in Biolustré, Inc. For several years, Woods and other Biolustré shareholders did not receive notice of shareholders’ meetings or financial reports. On l
> FS Partners is a general partnership whose partners are Jerry Stahlman, a professional engineer, and Fitz & Smith, Inc., a corporation in the business of excavating and paving. Timothy Smith signed the partnership agreement on Fitz & Smith’s behalf and d
> After years of research, your company develops a product that might revolutionize the green (environmentally conscious) building industry. The product is made from relatively inexpensive and widely available materials combined in a unique way that can su
> In 1997, Leon Greenblatt, Andrew Jahelka, and Richard Nichols incorporated Loop Corp. with only $1,000 of capital. Three years later, Banco Panamericano, Inc., which was run entirely by Greenblatt and owned by a Greenblatt family trust, extended a large
> Smith Services, Inc., a trucking business owned by Tony Smith, charged its fuel purchases to an account at Laker Express. When Smith Services was not paid on several contracts, it ceased doing business and was dissolved. Smith continued to provide trucki
> J.C., Inc., had a franchise agreement with McDonald’s Corp to operate McDonald’s restaurants in Lancaster, Ohio. The agreement required J.C. to make monthly payments of certain percentages of gross sales to McDonald’s. If any payment was more than thirty
> Randall and Peggy Norman operated a dairy farm in Pine River, Minnesota. About ten years after the operation was begun, the cows started to experience health issues. Over the next eighteen years, the herd suffered many serious health problems. Eventually
> After Hurricane Katrina struck the Gulf Coast, James Williford, Patricia Mosser, Marquetta Smith, and Michael Floyd formed Bluewater Logistics, LLC, to bid on construction contracts. Under Mississippi law, every member of a member-managed LLC is entitled
> Coco Investments, LLC, and other investors participated in a condominium conversion project to be managed by Zamir Manager River Terrace, LLC. The participants entered into a new LLC agreement for the project. The investors subsequently complained that Z
> Executive Home Care Franchising, LLC, sells in-home health-care franchises. Clint, Massare, and Greer Marshall entered into a franchise agreement with Executive Home Care. The agreement provided that the franchisees’ failure to comply with the agreement’
> Jefferson Partners LP entered into a collective bargaining agreement (CBA) with the Amalgamated Transit Union. Under the CBA, drivers had to either join the union or pay a fair share—85 percent—of union dues, which were used to pay for administrative cos
> Carol Garcia and Pedro Salgado were bus drivers for Latino Express, Inc., a transportation company. Garcia and Salgado began soliciting signatures from other drivers to certify the Teamsters Local Union No. 777 as the official representative of the emplo
> The franchise agreement of Domino’s Pizza, L.L.C., sets out operational standards, including safety requirements, for a franchisee to follow but provides that the franchisee is an independent contractor. Each franchisee is free to use its own means and m
> Brent Avery, on behalf of his law firm—The Law Office of Brent Avery—contracted with Marlin Broadcasting to air commercials on KRTV, a local radio station. Avery, who was the sole member of his firm, helped to create the commercials. The ads featured his
> In 1999, after working for Atchison Leather Products, Inc., for ten years, Beverly Tull began to complain of hand, wrist, and shoulder pain. Atchison recommended that she contact a certain physician, who in April 2000 diagnosed the condition as carpal tu
> Go to Case Analysis 38.3, Reese v. Newman. Read the excerpt and answer the following questions. (a) Issue: Which party’s choice between two alternatives was at the heart of the issue on the appeal of the Reese case? Reese case? Reese (b) Rule of Law: Wha
> Blushing Brides, LLC, a publisher of wedding planning magazines in Columbus, Ohio, opened an account with Gray Printing Co. in July 2000. On behalf of Blushing Brides, Louis Zacks, the firm’s member-manager, signed a credit agreement that identified the
> The Northeast Independent School District in Bexar County, Texas, hired STR Constructors, Ltd., to renovate a middle school. STR subcontracted the tile work in the school’s kitchen to Newman Tile, Inc. (NTI). The project had already fallen behind schedul
> L.V.R.V., Inc., sells recreational vehicles (RVs) in Las Vegas, Nevada, as Wheeler’s Las Vegas RV. In September 1997, Wheeler’s sold a Santara RV made by Coachmen Recreational Vehicle Co. to Arthur and Roswitha Waddell. The Waddells hoped to spend two or
> Assume that you want to read the entire court opinion in the case of Equal Employment Opportunity Commission v. Auto zone, Inc., 809 F.3d 916 (7th Cir. 2016). Refer to the subsection entitled “Finding Case Law” in this chapter, and then explain specifica
