Question: Must business owners in all states have

> State-sponsored lotteries are extremely popular and highly successful methods by which state governments in many countries raise much-needed funds for financing public expenses, especially education. In Michigan alone, during the year 2015, Michigan Lott

> “Greg, the board of directors’ meeting is scheduled two weeks from today, and I’m depending on you to come up with a realistic and honest appraisal of our company’s position,” said Warren, to his assistant Greg Chapman. “I’m sure that there’s more to us

> “Numbers! I need to see numbers!” exclaimed Marcus in response to com- ments made by the assistant vice-president of Finance, Jeff Smith. Marcus Lenovo, president and chief executive officer of Duralex Inc., had been instrumental in significantly increas

> Andy Gillian, the owner of Gillian Pool & Spa Supplies, paced up and down the balcony of his luxurious Victorian home, overlooking a beautiful backyard, which housed a full-size pool/spa and a sprawling, luscious, green lawn. What was worrying Andy w

> The Ultra Cable Corporation, headquartered in Chicago, Illinois, had thus far enjoyed a fairly steady run-up in revenues and profits. Two years ago, it hired Ron Swenson away from the competition to assist the president, Tom Gray, in navigating the compa

> “It’s amazing how much difference there is in the way proposals are presented at two different firms,” said Art Monk to his assistant, Russell Jacobs, as he pointed to the stack of capital investment proposals piled on his desk. “We sure have our work cu

> Howard Cook could hardly wait to get back to his corporate headquarters in Philadelphia, Pennsylvania, and share all the useful information that he had gathered on performance evaluation with his colleagues in the finance department. Howard was vice pres

> As Cecil shuffled through the stack of files on his desk and clicked away on his mouse, his mind kept racing back to what Jason, his boss, had said to him at the last budget meeting. “We can only fund two or three new projects over the next year,” he sai

> Richard Ponting could feel the pressure as he walked into the executive boardroom with his briefcase containing the data and slides pertaining to his latest proposal. The last couple of years had not been very good for him. Two of the projects that he ha

> When Jenny opened her full-service salon and day spa three years ago, she knew that she would have to make some difficult choices regarding the hiring and firing of qualified professionals such as cosmetologists, estheticians, nail technicians, and massa

> If there was one thing the folks at Creative Products Corporation (CPC) knew well, it was how to come up with useful and unique products in the midst of economic adversity. With current year revenues considerably lower and profit margins shrinking due

> When Wayne concocted his cleaning compound some 20 years ago, all that his wife, Corrine, and he were trying to do was to come up with a sweeter, gentler yet tougher, cleaning product. Little did he realize that someday he would be the proud owner of a m

> Alex Peterson, president of Peterson Investments Inc., was faced with a major decision. One of the firms that his company had invested in, Durawear Corporation, was under severe financial distress. It had therefore sent out a proposal for reorganization,

> It was late Sunday night, and Jassir Amor was getting weary. The big presentation was set for 8 am the next day, and Jassir kept remembering what Greg LeBlanc, the chairman of the mergers and acquisitions (M&A) committee had said to him: “The board membe

> It was a hot, humid afternoon in April. Kirk could feel the pressure mounting. The memo on his desk read, “Please see me immediately!” Kirk knew that, sooner or later, his boss, Brian Daltrey, was going to ask him to implement some quick remedies to impr

> “We better get started on this report,” said Hal to his assistant, Roger, as he straightened up in his seat and fired up his laptop computer. “I’m sure Henry will expect a detailed analysis first thing Monday morning.” Hal Burton, vice president for Inte

> “What do you mean we’ve used up all our cash and lines of credit? I don’t get it! I thought we had a healthy financial position as per last year’s financial statements. How could this have happened, Patrick?” said Donald Hunt to his chief accountant. “If

> It was the end of the fourth quarter. The financial statements had been prepared and circulated to the directors of NuSkin Products Inc. (Tables 2 and 3). The firm’s revenues had surpassed the previous quarter’s revenues by over 20%, and the annual sales

> What is the equivalent of native advertising in commercially released movies?  

> Why do you think officers and directors of accused companies accept dissent decrees rather than contest accusations at trial?

> Is thinking about committing a crime illegal? The law underlying the case against Microsoft is the Electronic Communications Privacy Act, which was enacted three years before the invention of the World Wide Web. Should that law still apply today? Why or

> Should a manager for an LLC respond to employee complaints of discrimination any differently from a manager at a corporation, a partnership, or a sole proprietorship? Why or why not?

> Consider a company whose employees include both smokers and nonsmokers. The smokers take numerous paid smoking breaks, while the nonsmokers do not. Is there an ethical issue here? Discuss.

> Why might it be fair for the court to hold Coxeter liable for his partner’s fraud?

> Can you think of a way a company can obtain information via an applicant’s social media posts without running the risk of being accused of hiring discrimination?

> How can a company, whether an LLC or some other business form, reduce the chances of discrimination lawsuits?

> How might a couple who enjoy purchasing virtual and digital goods together avoid property division issues in the event of a divorce?

> To what extent must attorneys reveal to their clients where confidential data are stored?

> Radiah Givens was involved romantically with Joseph Rosenzweig. She moved into an apartment on which he made the down payment. She signed the mortgage, but he made the payments and paid household expenses. They later married. She had their marriage annul

> Which companies in Europe do you think may have pressured the European Union to lodge its antitrust complaint against Google?

> At what point might the predicted benefits of a new private commercial endeavor outweigh the constitutional requirement of a taking only for public use?

> How do online escrow services reduce Internet fraud?

> Is it fair that property or wage garnishments may “surprise” a judgment debtor?

> 1. After the initial sequencing change, West Bank provided its customers with a document titled “Miscellaneous Fees” in which a footnote stated, “Checks written on your account will be paid in order daily with the largest check paid first and the smalles

> Does having a digital wallet in an iPhone, Android-based phone, or other smartphone entail more security risks than carrying a physical wallet? Explain.

> Imported beer is not the only product whose labeling may be misleading. For instance, although BMW is a German brand, most BMW X3s and X5s purchased in the United States are actually manufactured in South Carolina. Are there any legal or ethical issues i

> Why does the Bankruptcy Code provide that student loans should not be dischargeable unless there is undue hardship? What argument can be made in favor of allowing student loans to be dischargeable?

> Under what circumstances would you, as a business owner, choose to aggressively defend your business against a customer’s liability lawsuit?

> Some argue that if online retailers are required to collect and pay sales taxes in jurisdictions in which they have no physical presence, they have no democratic way to fight high taxes in those places. Is this an instance of taxation without representat

> To download a specific application (app) to your smartphone or tablet device, usually you have to check a box indicating that you agree to the company’s terms and conditions. Most individuals do so without ever reading those terms and conditions. Print o

> Within Instagram’s current terms of service there is a statement “We may not always identify paid services, sponsored content, or commercial communications as such.” Is it ethical for Instagram to post advertisements without identifying them as advertise

> Why might those entering into contracts be worse off in the long run if the courts increasingly accept impossibility of performance as a defense?

> What might happen if arbitration clauses were prohibited in all consumer contracts?

> If you are running a business, why would you opt to include overly broad waivers in your contracts with consumers?

> How does a manager determine the optimal amount of legal research to undertake to prevent her or his company from violating the many thousands of federal regulations?

> Why might a corporation’s managers agree to pay a large fine rather than to be indicted and proceed to trial?

> Does a manufacturer have to create safety warnings for every product? Why or why not?

> Some companies use internal social media networks for work-related employee communications. Would the same legal rules that apply to monitoring public social media platforms, such as Twitter and Facebook, also apply to company-provided social media platf

> To protect themselves, manufacturers have been forced to include lengthy safety warnings for their products. What is the downside of such behavior?

> Review the basic requirements for a valid contract listed at the beginning of this chapter. Now consider the relationship created when a student enrolls in a college or university. (a) One group should analyze and discuss whether a contract has been form

> Should domain name hosting companies be liable for revenge porn?

> From an ethical point of view, is there any difference between managers calling subordinates during off hours for work-related questions and sending e-mails or text messages?

> Can a business manager’s religious beliefs factor into the business’s hiring treatment of same-sex partners? Why or why not?

> If you had to decide whether to allow a U.S. magistrate judge to hear your case, what information might you ask your attorney to provide concerning that individual?

> In our connected world, is there any way a defendant could avoid service of process via social media?

> If you were facing an especially complex legal dispute—one involving many facets and several different types of law—would you consent to allowing a U.S. magistrate judge to decide the case? Why or why not?

> When is the Supreme Court justified in not following the doctrine of stare decisis?

> Why has the U.S. been slow to adopt commercial drone delivery in comparison to other nations?

> The U.S. Department of Transportation (DOT) sometimes hears an appeal from a party whose contract with the DOT has been canceled. An administrative law judge (ALJ) who works for the DOT hears this appeal. What safeguards promote the ALJ’s fairness?

> Peppertree, Inc., hired Robert McClellan, a licensed contractor, to repair a condominium complex that was damaged in an earthquake. McClellan completes the work, but Peppertree fails to pay. McClellan is awarded $181,000 in an arbitration proceeding. Pep

> Bento Cuisine is a lunch-cart business. It occupies a street corner in Texarkana, a city that straddles the border of Arkansas and Texas. Across the street— and across the state line, which runs down the middle of the street—is Rico’s Tacos. The two busi

> Macro Corporation and Micro Company combine, and a new organization, MM, Inc., takes their place. What is the term for this type of combination? What happens to the assets, property, and liabilities of Micro?

> Nico is Omega Corporation’s majority shareholder. He owns enough stock in Omega that if he were to sell it, the sale would be a transfer of control of the firm. Discuss whether Nico owes a duty to Omega or the minority shareholders in selling his shares.

> Northwest Brands, Inc., is a small business incorporated in Minnesota. Its one class of stock is owned by twelve members of a single family. Ordinarily, corporate income is taxed at the corporate and shareholder levels. Is there a way for Northwest Bran

> Anchor Bottling Company and U.S. Beverages, Inc. (USB), enter into a franchise agreement that states the franchise may be terminated at any time “for cause.” Anchor fails to meet USB’s specified sales quota. Does this constitute “cause” for termination?

> Gabriel, Harris, and Ida are members of Jeweled Watches, LLC. What are their options with respect to the management of their firm?

> Rafael dies without having made a will. He is survived by many relatives—a spouse, biological children, adopted children, sisters, brothers, uncles, aunts, cousins, nephews, and nieces. What determines who inherits what?

> Gert buys a notebook computer from EZ Electronics. She pays for it with her credit card. When the computer proves defective, she asks EZ to repair or replace it, but EZ refuses. What can Gert do?

> Mitsui Bank hired Ross Duncan as a branch manager in one of its Southern California locations. At that time, Duncan received an employee handbook informing him that Mitsui would review his performance and salary level annually. In 2016, Mitsui decided to

> What are the consequences in addition to those stated in this feature of failing to make timely payments on federal student loans? Discuss.

> What subjects are likely to be covered in the future regulation of virtual currency? Discuss.

> How do the CISG and other conventions promote international business?

> What is the most significant factor in determining whether fantasy sports games constitute gambling? Explain.

> Quintana Corporation sends important documents to Regal Nursery, Inc., via Speedy Messenger Service. While the documents are in Speedy’s care, a third party causes an accident to Speedy’s delivery vehicle that results in the loss of the documents. Does S

> Most likely, hackers will always exist, attempting to breach computer systems using the most up-to-date technology. What can businesses do to prevent breaches to their systems?

> Many businesses include opt-out provisions in their arbitration clauses but few consumers and employees take advantage of them. Why?

> How might a spouse or ex-spouse overcome the business asset protection devices and techniques discussed in this feature? Explain.

> What are the advantages of fossil fuels? What are the disadvantages? Discuss.

> Is it unethical for a business to include an arbitration clause with a class-action ban in its contracts with customers, employees, and other businesses? Discuss.

> Between 2 and 4 percent of online orders involve fraud. What can an online business do to avoid being the victim?

> Is it ethical to continue to use fossil fuels? Explain.

> To attain success in global commerce, an online business should design its Web site with what in mind?

> Are small businesses ethically obligated to offer their employees’ health insurance? Discuss.

> In addition to the borrowers listed in this feature, who deserves to have their federal student loans forgiven? Why?

> Resource Refining Company’s plant emits smoke and fumes. Resource’s operation includes a short railway system, and trucks enter and exit the grounds continuously. Constant vibrations from the trains and trucks rattle nearby residential neighborhoods. The

> When is the use of virtual currency unethical? Why?

> How does the type of “flexible” ethics proposed in this feature enhance the potential for success in global commerce?

> Is gambling less ethical than trading in securities or funding a start-up? Why?

> What is the extent of a business’s ethical obligation to protect the personal information of its customers and employees? Discuss.

> With respect to the division of property on divorce, should the conduct of the spouses during the marriage be a factor? Why or why not?

> Should the mandate to offer employees health insurance be extended to include small businesses? Or should it be repealed altogether? Explain.

> Myrtle Jackson owns several commercial buildings that she leases to businesses, one of which is a restaurant. The lease states that tenants are responsible for securing all necessary insurance policies but the landlord is obligated to keep the buildings

> Provident Insurance, Inc., issued an insurance policy to a company providing an employee, Steve Matlin, with disability insurance. Soon thereafter, Matlin was diagnosed with “panic disorder and phobia of returning to work.” He lost his job and sought dis

> Robert Durbin, a student, borrowed funds from a bank for his education and signed a promissory note for their repayment. The bank lent the funds under a federal program designed to assist students at postsecondary institutions. Under this program, repaym

> In December, Mendoza agreed to buy the broccoli grown on one hundred acres of Willow Glen’s one-thousand-acre broccoli farm. The sales contract specified F.O.B. Willow Glen’s field by Falcon Trucking. The broccoli was to be planted in February and harves

> United Pharmaceuticals, Inc., believes that it has developed a new drug that 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 marke

> For many years, New York City has had to deal with the vandalism and defacement of public property caused by unauthorized graffiti. In an effort to stop the damage, the city banned the sale of aerosol spray-paint cans and broad-tipped indelible markers t

> Mario Bonsetti and Rico Sanchez incorporated Gnarly Vulcan Gear, Inc. (GVG), to manufacture windsurfing equipment. Bonsetti owned 60 percent and Sanchez owned 40 percent of the corporation’s stock, and both men served on the board of directors. Hula Boar

> The Brown family owns several companies, including the J. H. Stevedoring Company and Penn Warehousing and Distribution, Inc. Many aspects of the companies’ operations and management are intertwined. Dennis Bishop worked for J. H. and Penn for more than t

> Val’s Foods signs a contract to buy 1,500 pounds of basil from Sun Farms, a small organic herb grower, as long as an independent organization inspects the crop and certifies that it contains no pesticide or herbicide residue. Val’s has a contract with se