Larketta Randolph purchased a mobile home fromBetter Cents Home Builders, Inc., and financed herpurchase through Green Tree Financial Corporation.Ms. Randolph signed a standard form contract that required her to buy Vendor’s Single Interest insurance, which protects the seller against the costs of repossession in the event of default. The agreement also provided that all disputes arising from the contract would be resolved by binding arbitration. Larketta found that there was an additional $15 infinance charges that were not disclosed in the contract. She and other Green Tree customers filed a class action suit to recover the fees. Green Treemoved to dismiss the suit because Larketta had not submitted the issue to arbitration. Larketta protests,“But I want the right to go to court!”Does she havethat right? What are the rights of parties under acontract with an arbitration clause? [Green TreeFinancial Corp. v. Randolph, 531 U.S. 79]
> BRG of Georgia, Inc. (BRG), and Harcourt Brace Jovanovich Legal and Professional Publications (HJB) are the nation’s two largest providers of bar review materials and lectures. HJB began offering a Georgia bar review course on a limited basis in 1976 and
> Department 56 is a company that manufactures and sells collectible Christmas village houses and other replica items to allow collectors to create the whimsical “Snow Village” town or “Dickens Christmas.” Department 56 has only authorized dealers. Sam’s C
> A&P Grocery Stores decided to sell its own brand of canned milk (referred to as private label milk). A&P asked its longtime supplier, Borden, to submit an offer to produce the private label milk. Bowman Dairy also submitted a bid, which was lower than Bo
> The Aspen ski area consisted of four mountain areas. Aspen Highlands, which owned three of those areas, and Aspen Skiing, which owned the fourth, had cooperated for years in issuing a joint, multiple-day, all-area ski ticket. After repeatedly and unsucce
> Favorite Foods Corp. sold its food to stores and distributors. It established a quantity discount scale that was publicly published and made available to all buyers. The top of the scale gave the highest dis- count to buyers purchasing more than 100 frei
> Dr. Edwin G. Hyde, a board-certified anesthesiologist, applied for permission to practice at East Jefferson Hospital in Louisiana. An approval was recommended for his hiring, but the hospital’s board denied him employment on grounds that the hospital had
> Moore ran a bakery in Santa Rosa, New Mexico. His business was wholly intrastate. Meads Fine Bread Co., his competitor, engaged in an interstate business. Meads cut the price of bread in half in Santa Rosa but made no price cut in any other place in New
> Hines Cosmetic Co. sold beauty preparations nationally to beauty shops at a standard or fixed- price schedule. Some of the shops were also supplied with a free demonstrator and free advertising materials. The shops that were not supplied with them claime
> During the 1980s, the NCAA, a voluntary unincorporated association of approximately 1,100 educational institutions, became concerned over the steadily rising costs of maintaining competitive athletic programs. As a way of containing those costs, the asso
> David Ungar holds a Dunkin’ Donuts franchise. The terms of his franchise agreement require him to use only those ingredients furnished by Dunkin’ Donuts. He is also required to buy its napkins, cups, and so on, with the Dunkin’ Donuts trademark on them.
> Penny Stafford, the owner of Belvi Coffee and Tea Exchange, located in Bellevue, Washington, brought an antitrust suit against Starbucks. She alleged that through its exclusive leases, Starbucks bans other coffee shops from competing. Starbucks has a 73
> American Crystal Sugar Co. was one of several refiners of beet sugar in northern California, and it distributed its product in interstate commerce. American Crystal and the other refiners had a monopoly on the seed supply and were the only practical mark
> New Hampshire adopted a tax law that in effect taxed the income of nonresidents working in New Hampshire only. Austin, a nonresident who worked in New Hampshire, claimed that the tax law was invalid. Was he correct? Explain. [ Austin v. New Hampshire, 42
> The Federal Food Stamp Act provided for the distribution of food stamps to needy households. In 1971, section 3(e) of the statute was amended to define households as limited to groups whose 70 PART 1: The Legal and Social Environment of Business members
> The University of Wisconsin requires all of its students to pay, as part of their tuition, a student activity fee. Those fees are used to support campus clubs and activities. Some students who objected to CHAPTER 4: The Constitution as the Foundation of
> Alfonso Lopez, Jr., a 12th-grade student at Edison High School in San Antonio, Texas, went to school carrying a concealed .38-caliber handgun and five bullets. School officials, acting on an anonymous tip, confronted Lopez. Lopez admitted that he had the
> Ellis was employed by the city of Lakewood. By the terms of his contract, he could be discharged only for cause. After working for six years, he was told that he was going to be discharged because of his inability to generate safety and self-insurance pr
> Ollie’s Barbecue is a family-owned restaurant in Birmingham, Alabama, specializing in barbecued meats and homemade pies, with a seating capacity of 220 customers. It is located on a state highway 11 blocks from an interstate highway and a somewhat greate
> Montana imposed a severance tax on every ton of coal mined within the state. The tax varied depending on the value of the coal and the cost of production. It could be as high as 30 percent of the price at which the coal was sold. Montana mine operators a
> In 2002, the Williamson family, riding in their 1993 Mazda minivan, was struck head-on by another vehicle. Thanh Williamson was sitting in a rear aisle seat, wearing a lap belt; she died in the accident. Delbert and Alexa Williamson were wearing lap- and
> The Crafts’ home was supplied with gas by the city gas company. Because of some misunderstanding, the gas company believed that the Crafts were delinquent in paying their gas bill. The gas company had an informal complaint procedure for discussing such m
> J.C. Penney, a retail merchandiser, has its principal place of business in Plano, Texas. It operates retail stores in all 50 states, including 10 stores in Massachusetts, and a direct mail catalog business. The catalogs illustrated merchandise available
> Federal law requires most interstate truckers to obtain a permit that reflects compliance with certain federal requirements. The 1965 version of the law authorized states to require proof that a truck operator had such a permit. By 1991, 39 states had d
> California passed a law that prohibited the sale or rental of “violent video games.” The act defined violent video games as games “in which the range of options available to a player includes killing, maiming, dismembering, or sexually assaulting an imag
> The president and athletic director at the University of California at Los Angeles (UCLA) fired the school’s basketball coach because an expense form he had submitted for reimbursement had the names of two students he said had joined him for a recruiting
> The state of Arizona mandates emissions testing for cars before drivers can obtain updated registrations. The state hires a contractor to conduct the emissions tests in the various emissions-testing facilities around the state. In October 1999, the Arizo
> Marty Mankamyer, the president of the United States Olympic Committee (USOC), resigned in early February 2003 following reports in The Denver Post that indicated she had demanded a commission from a fellow real estate broker in the Colorado Springs area,
> Heinz Ketchup holds 54 percent of the ketchup market in the United States. Nine of every 10 restaurants feature Heinz ketchup. However, Heinz has learned that many restaurant owners are simply refilling Heinz Ketchup bottles with other ketchup to capture
> Piper High School in Piper, Kansas, and a town located about 20 miles west of Kansas City, experienced national attention because of questions about students and their term papers for a botany class. Christine Pelton, a high school science teacher, had w
> Former Enron Chief Financial Officer Andrew Fastow, in his testimony against his former bosses at their criminal trial for fraud, said, “I thought I was being a hero for Enron. At the time, I thought I was helping myself and helping Enron to make its num
> David A. Vise, a Pulitzer Prize winner and a reporter for the Washington Post, wrote the book The Bureau and the Mole. When the book hit the market, Mr. Vise purchased 20,000 copies via Barnes & Noble.com, taking advantage of both free shipping offered b
> When some runners in the New York City Marathon hit the Queensboro Bridge, temptation sets in and, rather than finishing the last 10 miles through Harlem and the Bronx, they hop a ride on the subway and head toward the finish line at Central Park. A tota
> “I was very upset that there’s that many dishonest people,” said Andrea Reuland, the owner of Trigs Shell Station in Minocqua, Wisconsin. She lost $3 per gallon on 586 gallons of gas sold during a 45-minute period when local residents phoned others to co
> A new phenomenon for admissions to MBA programs is hiring consultants to help applicants hone their applications. About 20 percent of those who apply to the top MBA programs have hired consultants at a cost of $150 to $200 per hour to help them say and d
> Adam Smith wrote the following in The Theory of Moral Sentiments: “In the practice of the other virtues, our conduct should rather be directed by a certain idea of propriety, by a certain taste for a particular tenor of conduct, than by any regard to a
> A Dillard’s customer brought in a pair of moderately expensive dress shoes, expressing a desire to return them because they just weren’t quite right. As the manager processed the order she checked inside the box to be sure that the shoes in the box were
> Alan Gellen is the facilities manager for the city of Milwaukee and makes all final decisions on purchasing items such as chairs, lights, and other supplies and materials. Alan also makes the final decisions for the award of contracts to food vendors at
> Fred Sanguine is a New York City produce broker .Ned Santini is a 19-year-old college student who works for Sanguine from 4:00A.M. until 7:00A.M.each weekday before he attends classes at Pace University. Fred has instructed Ned on the proper packing of p
> During the inauguration for President Obama in January 2013, Beyoncé was scheduled to sing the national anthem. The question arose: Did she lip sync during her performance? No answer was forth coming from the singer’s representatives, but it was clear fr
> Martha Simms is the plaintiff in a contract suit she has brought against Floral Supply, Inc., for its failure to deliver the green sponge Martha needed in building the floral designs she sells to exclusive home decorators. Martha had to obtain the sponge
> Indicate whether the following courts are courts of original, general, limited, or appellate jurisdiction: a. Small claims court b. Federal bankruptcy court c. Federal district court d. U.S. Supreme Court e. Municipal court f. Probate court g. Federal co
> John Watson invested $5,000,000 in SmartRead, Inc., a company that was developing an electronic reading device. Within a few months, the$5,000,000 was spent but SmartRead never developed the reading device. John filed suit against the directors of SmartR
> Jerry Lewinsky was called for jury duty. When voirdire began, Jerry realized that the case involved his supervisor at work. Can Jerry remain as a juror onthe case? Why or why not?
> Ralph Dewey has been charged with a violation of the Electronic Espionage Act, a federal statute that prohibits the transfer, by computer or disk or otherelectronic means, of a company’s proprietary data and information. Ralph is curious. What type ofcou
> Two doctors had a dispute over who was doing how much work at their clinic. Their dispute was submitted to arbitration and the arbitrator held in favor of the less experienced doctor. The senior doctor wants the arbitration set aside. Is it possible for
> Winona Ryder was arrested for shoplifting from SaksFifth Avenue in California. One of the members of the jury panel for her trial was Peter Guber, a Hollywood executive in charge of the production of three films in which Ms. Ryder starred, including Bram
> Caesar Wright was a longshoreman in Charleston, South Carolina, and a member of the International Longshoremen’s Association (AFL-CIO). Wrightused the union hiring hall. The collective bargaining agreement (CBA) of Wright’s union provides forarbitration
> Mostek Corp., a Texas corporation, made a contract to sell computer-related products to North American Foreign Trading Corp., a New York corporation. North American used its own purchase order form, on which appeared the statement that any dispute arisin
> The Nursing Home Pension Fund filed suit against Oracle Corporation alleging that Larry Ellison, the company’s CEO, misled investors in 2001 about the true financial condition of the company. During the time of the alleged misrepresentation, Mr. Ellison
> Carolyn, Elwood, and Isabella are involved in a real estate development. The development is a failure, and Carolyn, Elwood, and Isabella want to have their rights determined. They could bring a lawsuit, but they are afraid the case is so complicated that
> Explain why a business person would want to use alternative dispute resolution methods. Discuss the advantages. What disadvantages have you learned?
> List the steps in a lawsuit. Begin with the filing of the complaint, and explain the points at which there can be a final determination of the parties’ rights in the case.
> Saint Claire Adams was hired by Circuit City as a sales counselor. When he was hired he signed an employment contract that included a mandatory arbitration clause. Two years later he filed a suit against Circuit City for discrimination in the work-place.
> Janice Dempsey has just started her own tax preparation firm. She has leased office space in a building, and she is incorporating her business as a Subchapter S corporation under the Internal Revenue Code. She has purchased desks, chairs, computers, and
> During the 2001 baseball season, San FranciscoGiants player Barry Bonds hit 73 home runs, a newrecord that broke the one set by Mark McGwire in2000 (72 home runs). When Mr. Bonds hit his record-breaking home run, the ball went into theso-called cheap sea
> Explain how Twitter, Facebook, and LinkedIn have resulted in the development of new laws and precedent.
> What is the principle of stare decisis?
> Give examples of areas covered by federal laws. Give examples of areas covered by city ordinances. What are the limitations on these two sources of laws? What could the laws at these two levels not do?
> The Eminem ad for Chrysler that ran during the Super Bowl in February 2011 was rated as one of the best ads for the game. In May 2011, Audi ran an adat a German auto show that had the“feel”of theEminem Chrysler“Lose Yourself”ad. Subsequently,the German a
> What is the difference between a statute and an administrative regulation?
> Under what circumstances would a court disregard precedent?
> Professor Lucas Phelps sent the following e-mail to Professor Marlin Jones: “I recently read the opinionpiece you wrote for the Sacramento Bee on affirmative action. Your opinion is incorrect, your reasoning and analysis are poor, and I am embarrassed th
> Whileshe was at her 9:00A.M. Anthropology class, campussecurity entered her dorm room and searched allareas, including her closet and drawers. When Cindyreturned to her room and discovered what had happened, she complained to the dorm’s senior resident.T
> What do uniform laws accomplish? Why do states adopt them? Give an example of a uniform law.
> Classify the following laws as substantive orprocedural: a. A law that requires public schools to hold ahearing before a student is expelled. b. A law that establishes a maximum interest rate forcredit transactions of 24 percent. c. A law that provides e
> What is the difference between common law and statutory law?
> List the sources of law.
> The Family Educational Rights and Privacy Act(FERPA) protects students’rights to keep their academic records private. What duties are imposed andupon whom because of this protection of rights? Discuss the relationship between rights and duties.
> Mallinckrodt produces nuclear and radioactive medical pharmaceuticals and supplies. Maryland Heights Leasing, an adjoining business owner, claimed that low-level radiation emissions from Mallinckrodt damaged its property and caused a loss in earnings. Wh
> Blaylock was a voluntary psychiatric outpatient treated by Dr. Burglass, who became aware that Blaylock was violence prone. Blaylock told Dr. Burglass that he intended to do serious harm to Wayne Boynton, Jr., and shortly thereafter he killed Wayne. Wayn
> A passenger on a cruise ship was injured by a rope thrown while the ship was docking. The passenger was sitting on a lounge chair on the third deck when she was struck by the weighted end of a rope thrown by an employee of Port Everglades, where the boat
> Kendra Knight took part in a friendly game of touch football. She had played before and was familiar with football. Michael Jewett was on her team. In the course of play, Michael bumped into Kendra and knocked her to the ground. He stepped on her hand, c
> Hegyes was driving her car when it was negligently struck by a Unjian Enterprises truck. She was injured, and an implant was placed in her body to counteract the injuries. She sued Unjian, and the case was settled. Two years later Hegyes became pregnant.
> Carl Kindrich’s father, a member of the Long Beach Yacht Club before he died, expressed a wish to be “buried at sea.” The Yacht Club permitted the Kindrich family the use of one of its boats, without charge, for the ceremony, and Mr. Fuller — a good frie
> Defendant no. 1 parked his truck in the street near the bottom of a ditch on a dark, foggy night. Iron pipes carried in the truck projected nine feet beyond the truck in back. Neither the truck nor the pipes carried any warning light or flag, in violatio
> Following a visit to her hometown of Coalinga, Cynthia wrote “An Ode to Coalinga” (Ode) and posted it in her online journal on MySpace.com. Her last name did not appear online. Her page included her picture. The Ode opens with “The older I get, the more
> Bernard Flinn operated a business known as Harvey Investment Co., Inc./High Risk Loans. Flinn worked as a loan broker, matching those who came to him with lenders willing to loan them money given their credit history and the amount involved. From 1982 th
> Kathryn Erickson was the general manager of the Uintah Special Services District (USSD), an entity created to use federal-mineral-lease revenues for road projects. She, along with her secretary, Cheryl McCurdy, administered the USSD from a small office i
> Grabert ran Beck’s, an amusement center in Louisi- ana. He held a license for video gambling machines. Louisiana makes it illegal to allow a minor to play a video gambling machine. A mother came into Grabert’s center carrying her 23-month-old baby in her
> In April 2006, a DC-9 aircraft landed in the port city of Ciudad del Carmen, located 500 miles east of Mexico City. When the plane’s crew began directing security personnel away from the plane, the suspicious activity piqued the curiosity of local law en
> Jennings operated a courier service to collect and deliver money. The contract with his customers allowed him a day or so to deliver the money that had been collected. Instead of holding collections until delivered, Jennings made short-term investments w
> Carrigan, a district manager of Simples Time Recorder Co., was investigating complaints of mismanagement of the company’s Jackson office. He called at the home of Hooks, the secretary of that office, who expressed the opinion that part of the trouble was
> James Durham runs an art gallery. He has several paintings from unknown artists that he has listed for sale. The paintings always sell at his weekly auction for $20,000 to $50,000 above what James believes them to be worth. James learns that the bidders
> Carriage Homes, Inc. was a general contractor that built multifamily residential and land-development projects in Minnesota. John Arkell was Carriage Homes’ chief executive officer, president, and sole shareholder. Carriage Homes built Southwinds, a cond
> In the late 1980s, Life Energy Resources, Ltd. (LER), a New York corporation, was a multilevel marketing network. LER ’ s marketing plan provided that mem- bers of the general public could purchase its products only through an official LER distributor or
> While snowboarding down a slope at Mammoth Mountain Ski Area (Mammoth), 17-year-old David Graham was engaged in a snowball fight with his 14-year-old brother. As he was “preparing to throw a snowball” at his brother, David slammed into Liam Madigan, who
> ESPN held its Action Sports and Music Awards ceremony in April, at which celebrities in the fields of extreme sports and popular music such as rap and heavy metal converged. Well-known musicians Ben Harper and James Hetfield were there, as were popular r
> Christensen Shipyards built a 155-foot yacht for Tiger Woods at its Vancouver, Washington, facilities. It used Tiger’s name and photographs relating to the building of the yacht in promotional materials for the shipyard without seeking his permission. Wa
> Gail drove her automobile after having had dinner and several drinks. She fell asleep at the wheel and ran over and killed a pedestrian. Prosecuted for manslaughter, she raised the defense that she did not intend to hurt anyone and because of the drinks
> Baker and others entered a Wal-Mart store shortly after 3:00 A. M. by cutting through the metal door with an acetylene torch. They had moved some of the merchandise in the store to the rear door, but the police arrived before the merchandise could be tak
> J., Inc., and other customers of Northwestern Bell Corp. alleged that Northwestern Bell had furnished cash and tickets for air travel, plays, and sporting events and had offered employment to members of the Minnesota Public Utilities Commission in exchan
> The Federal Register contained the following provi- sion from the Environmental Protection Agency on January 14, 2002: ‘We, the U.S. Fish and Wildlife Service (Service), announce the re-opening of the comment period on the proposed listing of Lomatium c
> An owner abandoned his van in an alley in Chicago. In spite of repeated complaints to the police, the van was allowed to remain in the alley. After several months, it was stripped of most of the parts that could be removed. Jamin Ortiz, age 11, was walki
> The Tacoma-Pierce County Health Department conducted an investigation into the quality of care provided by ambulance service providers in its juris- diction. On the basis of that investigation, the department issued a set of temporary rules and regulatio
> Following the events of September 11, 2001, in which four airplanes crashed as a result of the presence of terrorists on those flights, the FAA concluded that it needed to implement new procedures for air- ports and flights. The new procedures for securi
> The Endangered Species Act (ESA) charges the National Marine Fisheries Service (a federal agency) with the duty to “ensure” that any proposed action by the Council does not “jeopardize” any threatened or endangered species. The Steller sea lion is on the
> Kravitz owned 100 percent of the stock of American Health Programs, Inc. (AHP). To obtain the Philadelphia Fraternal Order of Police as a customer for AHP, Kravitz paid money bribes to persons who he thought were officers of that organization but who in
> San Diego Air Sports (SDAS) Center operates a sports parachuting business in Otay Mesa, California. SDAS offers training to beginning parachutists and facilitates recreational jumping for experienced parachutists. It indicates that the majority of SDAS j
> The Department of Health and Human Services has proposed new guidelines for the interpretation of federal statutes on gifts, incentives, and other benefits bestowed on physicians by pharmaceutical companies. The areas on which the interpretation focused
> The Michigan Freedom of Information Act declares that it is the state ’ s policy to give all persons full information about the actions of the government and that “ the people shall be informed so that they may participate in the democratic process. ” Th