Thompson Medical Company manufactures and sells Aspercreme, a topical analgesic. Aspercreme is a pain reliever that contains no aspirin. Thompson’s advertisements strongly suggest that Aspercreme is related to aspirin, however, by claiming that it provides “the strong relief of aspirin right where you hurt.” Is Thompson’s advertisement for Aspercreme false and misleading? Explain.
> Sears had sold to and installed in the Seven Palms Motor Inn a number of furnishings, including drapes and bedspreads, in connection with the construction of a motel on land Seven Palms owned. Sears did not receive payment in full for the materials and l
> Scarola purchased an automobile for value and without knowledge that it was stolen. After he insured the car with Insurance Company of North America (INA), the car was stolen once again. When INA refused to reimburse Scarola for the loss, contending that
> Seton in Phoenix, according to a contract with Rider in New York, ships to Rider goods conforming to the contract and takes from the carrier a shipper’s order bill of lading that Seton indorses in blank and forwards by mail to Clemson, his agent in New Y
> The Talent Company, manufacturer of a widely advertised and expensive perfume, sold a quantity of this product to Young, a retail druggist. Dorothy and Bird visited the store of Young, and Dorothy, desiring to make a gift to Bird, purchased a bottle of t
> On June 1, Cain delivered his 2010 automobile to Barr, the operator of a repair shop, for necessary repairs. Barr put the car in his lot on Main Street. The lot, which is fenced on all sides except along Main Street, holds one hundred cars and is unguard
> Donna drove an automobile into Terry’s garage and requested him to make repairs for which the charge would be $125. Donna, however, never returned to get the automobile. Two months later, Carla saw the automobile in Terry’s garage and claimed it as her o
> Several years ago, Pierce purchased a tract of land on which stood an old, vacant house. Recently, Pierce employed Fried, a carpenter, to repair and remodel the house. While Fried was tearing out a partition to enlarge one of the rooms, he found a metal
> Rich, a club member, left his golf clubs with Bogan, the pro at the Happy Hours Country Club, to be refinished at Bogan’s pro shop. The refinisher employed by Bogan suddenly left town, taking Rich’s clubs with him. The refinisher had previously been abov
> (a) On April 1, Mary Rich, at the solicitation of Super Fur Company, delivered a $3,000 mink coat to the company at its place of business for storage in its vaults until November 1. On the same day, she paid the company its customary charge of $20 for su
> A, B, and C each stored 5,000 bushels of yellow corn in the same bin in X’s warehouse. X wrongfully sold 10,000 bushels of this corn to Y. A contends that inasmuch as his 5,000 bushels of corn were placed in the bin first, the remaining 5,000 bushels bel
> Curtis rented a safe deposit box from Reliable Safe Deposit Company, in which he deposited valuable securities and $4,000 in cash. Later, after opening the box and discovering $1,000 missing, Curtis brought an action against Reliable. At the trial, the c
> Hines stored her furniture, including a grand piano, in Arnett’s warehouse. Needing more space, Arnett stored Hines’s piano in Butler’s warehouse next door. As a result of a fire, which occurred without any fault of Arnett or Butler, both warehouses and
> Phil was the owner of a herd of twenty highly bred dairy cows. He was a prosperous farmer, but his health was very poor. On the advice of his doctor, Phil decided to winter in Arizona. Before he left, he made an agreement with Freya under which Freya was
> Lile, an insurance broker who handled all insurance for Tempo Co., purchased a fire policy from Insurance Company insuring Tempo Co.’s factory against fire in the amount of $150,000. Before the policy was delivered to Tempo and while it was still in Lile
> Robinson, a truck driver for a moving company, decided to buy a used truck from the company. Branch, the owner, told Robinson that the truck was being repaired and that Robinson should wait and inspect the truck before signing the contract. Robinson, who
> John Swan rented a safe deposit box at the Tenth Citizens Bank of Emanon, State of X. On December 17, 2014, Swan went to the bank with stock certificates to place in the safy deposit box. After he was admitted to the vault and had placed the stock certif
> In January, Roger Burke loaned his favorite nephew, Jimmy White, his valuable Picasso painting. Knowing that Jimmy would celebrate his twenty-first birthday on May 15, Burke sent a letter to Jimmy on April 14 stating: Dear Jimmy, Tomorrow I leave on my a
> Nigeria, experiencing an economic boom due to exports of high-grade oil, embarked on an infrastructure development plan. Accordingly, Nigeria entered into at least 109 contracts with 68 suppliers for the purchase of cement at a price of almost $1 billion
> New England Petroleum Corporation (NEPCO), a New York corporation, was in the business of selling fuel oil in the United States. PETCO, a refinery incorporated in the Bahamas, was a wholly owned subsidiary of NEPCO. In 1968, PETCO entered into a long-ter
> A Panamanian corporation lends money to a Turkish enterprise, which issues a promissory note. The loan contract specifies that payment on the interest and principal shall be made to the Chemical Bank of New York City, where both parties maintain accounts
> A business entity incorporated under the laws of one of the EU member nations contracts with the government of a developing nation to form a joint venture for the mining and refining of a scarce raw material used by several industrial nations in the manu
> King Faisal II of Iraq was killed on July 14, 1958, in the midst of a revolution in that country that led to the establishment of a republic subsequently recognized by the U.S. government. On July 19, 1958, the new republic issued a decree that all prope
> A privately owned business in a developing country determines that current computer technology could solve many of the problems faced by its country’s private and public sectors. This business, however, lacks the capital resources necessary for research
> After reading attractive brochures advertising a package tour of the Dominican Republic, a U.S. family decided to purchase tickets for the family vacation plan. The tour was a product of four different business entities, two domestic (U.S.) and two forei
> Six U.S. manufacturers of broad-spectrum antibiotics derived a large percentage of their sales from overseas markets, including India, Iran, the Philippines, Spain, South Korea, Germany, Colombia, and Kuwait. The manufacturers agreed to a common plan of
> Catania wished to paint the exterior of his house. He went to Brown, a local paint store owner, and asked him to recommend a paint for the job. Catania told Brown that the exterior walls were stucco and in a chalky, powdery condition. Brown suggested Pie
> A federal grand jury handed down an indictment naming as a defendant Nippon Paper Industries Co., Ltd. (NPI), a Japanese manufacturer of facsimile paper. The indictment alleged that five years earlier NPI and certain unnamed coconspirators held a number
> Prior to 1918, a Russian corporation had deposited sums of money with August Belmont, a private banker doing business in New York City. In 1918, the Soviet government nationalized the corporation and appropriated all of the corporation’s property and ass
> Three banks that are wholly owned by the Republic of Costa Rica had issued promissory notes, payable in U.S. dollars in New York City. The notes are now in default due solely to actions of the Costa Rican government, which had suspended all payments of e
> The city of Fayetteville, Arkansas, received a National Pollutant Discharge Elimination System (NPDES) permit from the EPA for the discharge of sewage into a stream that ultimately reaches the Illinois River, twenty-two miles upstream from the Oklahoma b
> National-Southwire Aluminum Company (NSA) owns and operates a plant that emits fluoride. When its wet scrubbers were turned off as part of its regular maintenance program, NSA discovered no appreciable change in ambient fluoride levels. Because of the ex
> Chemical Manufacturers Association (CMA) and four companies that manufacture chemicals challenged a test rule promulgated by the Environmental Protection Agency under the Toxic Substances Control Act, (TSCA). The plaintiffs asserted that the EPA must fin
> The U.S. Department of the Interior filed an environmental impact statement with regard to its proposal to lease approximately eighty tracts of submerged land, primarily located off the coast of Louisiana, for oil and gas exploration. Adjacent to the pro
> The EPA administrator issued an order suspending the registration of the pesticides heptachlor and chlordane under the FIFRA. Velsicol Chemical Corp., the sole manufacturer of these pesticides, brings this action, contending that the evidence does not su
> Kennecott Copper Corp. brings this challenge to an EPA order that rejected a portion of the state of Nevada’s implementation plan dealing with the control of stationary sources of sulfur dioxide (SO2). All of the SO2 emissions come from a single source—t
> The state of Y submits a plan under the Clean Air Act to attain national ambient air quality standards. Can the EPA administrator deny approval of the state plan because it is (a) less stringent or (b) more stringent than the agency believes is feasible?
> Mrs. Embs went into Stamper’s Cash Market to buy soft drinks for her children. She had removed five bottles from an upright soft drink cooler, placed them in a carton, and turned to move away from the display when a bottle of Seven-Up in a carton at her
> A group of nineteen private organizations filed a rulemaking petition asking the Environmental Protection Agency (EPA) to regulate greenhouse gas emissions from new motor vehicles under the Clean Air Act. Fifteen months after the petition’s submission, E
> Robert applies to Northern National Bank for a loan. Before granting the loan, Northern requests that Callis Credit Agency provide it with a credit report on Robert. Callis reports that three years earlier, Robert had embezzled money from his employer. B
> On a beautiful Saturday in October, Francie decides to take the twenty-mile ride from her home in New Jersey into New York City to do some shopping. Francie finds that Brown’s Retail Sales, Inc., has a terrific sale on televisions and decides to surprise
> The Giant Development Company undertakes a massive real estate venture to sell 9,000 one-acre unimproved lots in Utah. The company advertises the project nationally. Arrington, a resident of New York, learns of the opportunity and requests information ab
> A consumer entered into an agreement with Rent-It Corporation for the rental of a television set at a charge of $17 per week. The agreement also provides that if the renter chooses to rent the set for seventy-eight consecutive weeks, title will be transf
> Pantron I Corporation and Hal Z. Lederman market a product known as the Helsinki Formula. This product supposedly arrests hair loss and stimulates hair regrowth in baldness sufferers. The formula consists of a conditioner and a shampoo, and it sells at a
> Brenda borrows $1,000 from Lincoln for one year, agreeing to pay Lincoln $200 in interest on the loan and to repay the loan in twelve monthly installments of $100. The contract that Lincoln provides and Brenda signs specifies that the APR is 20 percent.
> Greg Henson sold his Chevrolet Camaro Z-28 to his brother, Jeff Henson. To purchase the car, Jeff secured a loan with Cosco Federal Credit Union (Cosco). Soon thereafter, the car was stolen and Jeff stopped making payments on his loan from Cosco. At the
> Lenvil Miller owed $2,501.61 to the Star Bank of Cincinnati. Star Bank referred collection of Miller’s account to Payco-General American Credits, Inc. (Payco), a debt collection agency. Payco sent Miller a collection form. Across the top of the form was
> The FTC ordered Warner-Lambert to cease and desist from advertising that its product, Listerine antiseptic mouthwash, prevents, cures, or alleviates the common cold and sore throats. The order further required Warner-Lambert to disclose in future adverti
> O’Neil purchased a used diesel tractor-trailer combination from International Harvester. O’Neil claimed that International Harvester’s salesman had told him that the truck had recently been overhauled and that it would be suitable for hauling logs in the
> Mary Smith bought a car from Doug Chapman under an installment sales contract. Smith carried the insurance on the car, as required by the contract. Shortly after Smith purchased the car, it was wrecked in an accident. Smith’s insurance company paid Chapm
> William Thompson was denied credit based on an inaccurate credit report compiled by the San Antonio Retail Merchant’s Association. The Association confused Thompson’s credit history with that of another William Thompson and failed to use social security
> Onondaga Bureau of Medical Economics (OBME), a collection agency for physicians, sent the plaintiff, Seabrook, a letter demanding payment for a $198 physicians’ bill. In addition to demanding payment, the letter stated that the bureau’s client could comm
> Sears formulated a plan to increase sales of its top-of-the-line Lady Kenmore brand dishwasher. Sears’s plan sought to change the Lady Kenmore’s image without reengineering or making any mechanical improvements in the dishwasher itself. To accomplish thi
> Several manufacturers introduced into the American market a product known as all-terrain vehicles (ATVs). ATVs are motorized bikes that sit on three or four low-pressure balloon tires and are meant to be driven off paved roads. Almost immediately, the Co
> Colgate-Palmolive Co. produced a television advertisement that dramatically demonstrated the effectiveness of its Rapid Shave shaving cream. The ad purported to show the shaving cream being used to shave sandpaper. But because actual sandpaper appeared o
> John P. Butler Accountancy Corporation agreed to audit the financial statements of Westside Mortgage, Inc., a mortgage company that arranged financing for real property, for the year ending December 31, 2013. On March 22, 2014, after completing the audit
> On February 1, the Gazette Corporation hired Susan Sharp to conduct an audit of its books and to prepare financial statements for the corporation’s annual meeting on July 1. Sharp made every reasonable attempt to comply with the deadline but could not fi
> J, B & J, CPAs, has audited the Highcredit Corporation for the past five years. Recently, the SEC has commenced an investigation of Highcredit for possible violations of federal securities law. The SEC has subpoenaed all of J, B & J’s working papers pert
> Mobley purchased from Century Dodge a car described in the contract as new. The contract also contained a disclaimer of all warranties, express or implied. Subsequently, Mobley discovered that the car had, in fact, been involved in an accident. He then s
> The accounting firm of T, W & S was engaged to perform an audit of Progate Manufacturing Company. During the course of its investigation, T, W & S discovered that the company had overvalued its inventory by carrying the inventory on the books at the prev
> Johnson Enterprises, Inc., contracted with the accounting firm of P, A & E to perform an audit of Johnson. The accounting firm performed its duty in a nonnegligent, competent manner but failed to discover a novel embezzlement scheme perpetrated by Johnso
> Dryden, a certified public accountant, audited the books of Elixir, Inc., and certified incorrect financial statements in a form that was filed with the SEC. Shortly thereafter, Elixir, Inc., went bankrupt. Investigation into the bankruptcy disclosed tha
> Girard & Company, CPAs, audited the financial statements included in the annual report submitted by PMG Enterprises, Inc., to the SEC. The audit failed to detect numerous false and misleading statements contained in the financial statements. (a) Investor
> Ingram is a CPA employed by Jordan, Keller and Lane, CPAs, to audit Martin Enterprises, Inc., a fast-growing service firm that went public two years ago. The financial statements that Ingram audited were included in a proxy statement proposing a merger w
> Equisure, Inc., was required to file audited financial statements when it applied to have its stock listed on the American Stock Exchange (AmEx). It retained an accounting firm, defendant Stirtz Bernards Boyden Surdel & Larter, P.A. (Stirtz). Stirtz issu
> Baldwin Corporation made a public offering of $25,000,000 of convertible debentures and registered the offering with the SEC. The registration statement contained financial statements certified by Adams and Allen, CPAs. The financial statements overstate
> Justin Manufacturing Company sells high-fashion clothing under the prestigious “Justin” label. The company has a firm policy that it will not deal with any company that sells below its suggested retail price. Justin is informed by one of its customers, X
> Indian Coffee of Pittsburgh, Pennsylvania, marketed vacuum-packed coffee under the Breakfast Cheer brand name in the Pittsburgh and Cleveland, Ohio, areas. Folger Coffee, a leading coffee seller, began selling coffee in Pittsburgh. To make inroads into t
> Whirlpool Corporation manufactured vacuum cleaners under both its own name and under the Kenmore name. Oreck exclusively distributed the vacuum cleaners sold under the Whirlpool name. Sears, Roebuck & Co. exclusively distributed the Kenmore vacuum cleane
> Green Seed Company packaged, labeled, and marketed a quality tomato seed known as “Green’s Pink Shipper” for commercial sale. Brown Seed Store, a retailer, purchased the seed from Green Seed and then sold it to Guy Jones, an individual engaged in the bus
> Taylor Company produces 77 percent of the coal used in the United States. Coal provides 25 percent of the energy used in the United States. In a suit brought by the United States against Taylor for violation of the antitrust laws, what is the result?
> Z sells cameras to A, B, C, and D for $160 per camera. Y, one of Z’s competitors, sells a comparable camera to A for $148.50. Z, in response to this competitive pressure from Y, lowers its price to A to $148.50. B, C, and D insist that Z lower its price
> Universal Video sells video recording equipment in the United States, and its sales constitute 40 percent of the total sales of such equipment in the United States. One-half of Universal’s sales are to Giant Retailer, a company that possesses 50 percent
> Discuss the validity of the following: (a) A territorial allocation agreement between two manufacturers of the same type of products, whereby neither will sell its products in the area allocated to the other. (b) An agreement between manufacturer and dis
> As part of a corporate plan to stimulate sagging color television sales, GTE Sylvania began to phase out its wholesale distributors and began to sell its television sets directly to a smaller and more select group of franchised retailers. To this end, Sy
> During a period of a few years, intense price competition characterized both the retail and the wholesale oil markets. At times, prices in the wholesale market fell below the manufacturer’s cost. One cause of the volatile situation was the supply of “dis
> The National Society of Professional Engineers (Society) had an ethics rule that prohibited member engineers from disclosing or discussing price/fee information with customers until after the customer had hired a particular engineer. This rule against co
> The NCAA adopted a plan for televising college football games to reduce the adverse effect of TV coverage on spectator attendance. The plan limited the total number of televised intercollegiate football games and the number of games any one school could
> Clorox is the nation’s leading manufacturer of household liquid bleach (accounting for 49 percent—$40,000,000—of sales annually) and is the only brand sold nationally. Clorox and its next largest competitor, Purex, hold 65 percent of national sales; and
> Great Atlantic and Pacific Tea Company desired to achieve cost savings by switching to the sale of “private label” milk. A&P asked Borden Company, its longtime supplier of “brand label” milk, to submit a bid to supply certain A&P private label dairy prod
> Guarino and two others (plaintiffs) died of gas asphyxiation and five others were injured when they entered a sewer tunnel without masks to answer the cries for help of their crew leader, Rooney. Rooney had left the sewer shaft and entered the tunnel to
> Boise Cascade Corporation is a wholesaler and retailer of office products. The Federal Trade Commission issued a complaint charging that Boise had violated the Robinson-Patman Act by receiving a wholesaler’s discount from certain suppliers on products th
> Von’s Grocery, a large retail grocery chain in Los Angeles, sought to acquire Shopping Bag Food Stores, a direct competitor. At the time of the proposed merger, Von’s sales ranked third in the Los Angeles area and Shopping Bag’s ranked sixth. Both chains
> Jay Corporation, the largest manufacturer of bicycles in the United States with 40 percent of the market, has recently entered into an agreement with Retail Bike, the largest retailer of bicycles in the United States with 37 percent of the market, under
> Discuss the validity and effect of each of the following: (a) A, B, and C, manufacturers of radios, orally agree that due to the disastrous, cutthroat competition in the market, they will establish a reasonable price to charge their purchasers. (b) A, B,
> Section 103 of the Federal Public Works Employment Act establishes the Minority Business Enterprise (MBE) program and requires that, absent a waiver by the Secretary of Commerce, 10 percent of all federal grants given by the Economic Development Administ
> Johnson, president of the First National Bank of A, believes that it is appropriate to employ only female tellers. Hence, First National refuses to employ Ken Baker as a teller but does offer him a maintenance position at the same salary. Baker brings a
> Erwick was dismissed from her job at the C & T Steel Company because she was “an unsatisfactory employee.” At the time, Erwick was active in an effort to organize a union at C & T. Is the dismissal valid?
> T. W. E., a large manufacturer, prohibited its employees from distributing union leaflets to other employees while on the company’s property. Richard, an employee of T. W. E., disregarded the prohibition and passed out the leaflets before his work shift
> Hazelwood School District is located in Sleepy Hollow Township. It is being sued by several teachers who applied for teaching positions with the school but were rejected. The plaintiffs, who are all African-Americans, produce the following evidence: (a)
> Anthony was employed as a forklift operator for Blackburn Construction Company. While on the job, he operated the forklift in a manner that was careless and in direct violation of Blackburn’s procedural manual and, as a result, caused himself severe inju
> Seigel, a seventy-three-year-old man, was injured at one of Giant Food’s retail food stores when a bottle of Coca-Cola exploded as he was placing a six-pack of Coke into his shopping cart. The explosion caused him to lose his balance and fall, with injur
> For the balance due on the purchase of a tractor Henry Brown executed and delivered to Jane Jones his promissory note containing the following language: January 1, 2015, I promise to pay to the order of Jane Jones the sum of $7,000 to be paid only out of
> N.I.S. promoted John, a forty-two-year-old employee, to a supervisor’s position while passing over James, a fifty-eight-year-old employee. N.I.S. told James he was too old for the job and that it preferred a younger man. Discuss whether James will succee
> Johnson Controls’ implemented a policy that women who are pregnant or who are capable of bearing children would not be placed into jobs involving lead exposure. Employees filed a class action lawsuit challenging Johnson Controls’ fetal-protection policy
> The Steamship Clerks Union has approximately 124 members, 80 of whom are classified as active. Members serve as steamship clerks who, during the loading and unloading of vessels in the port of Boston, check cargo against inventory lists provided by shipp
> Plaintiff, Beth Lyons, a staff attorney for the Legal Aid Society (Legal Aid) brought suit against her employer, alleging that Legal Aid violated the Americans with Disabilities Act (ADA) and the Rehabilitation Act by failing to provide her with a parkin
> Janet, a twenty-year-old woman, applied for a position driving a truck for Federal Trucking, Inc. Janet, who is 5’4” tall and weighs 135 pounds, was denied the job because the company requires that all employees be at least 5’6” tall and weigh at least 1
> Michelle Vinson was an employee of Meritor Savings Bank for approximately four years. Beginning as a teller-trainee, she ultimately advanced to the position of assistant branch manager. Her promotions were based solely upon merit. Sidney Taylor, a vice p
> John Novosel was employed by Nationwide Insurance Company for fifteen years. Novosel had been a model employee and, at the time of discharge, was a district claims manager and a candidate for the position of division claims manager. During Novosel’s fift
> Wise was fired from her job at the Mead Corporation after she was involved in a fight with a co-worker. On four other unrelated occasions, fights had occurred between male co-workers. Only one of the males was fired, but this was after his second fight,
