You manufacture trunk locks and your major account is a large car company. When an important piece of your equipment unexpectedly breaks, you contact Mayfair Inc., the only manufacturer of such equipment, and contract to replace it. The Mayfair sales representative assures you orally and in writing that the prepaid equipment will arrive by October 1, in time for you to complete your production for the car company. Instead, there is a union strike in the Mayfair trucking division, and the equipment does not arrive until December 1. By December 1 the car company has made an agreement with another lock manufacturer. You threaten to sue Mayfair for their failure to deliver on time, but Mayfair reminds you of a contract term that relieves them of contractual liability because of “labor difficulties.” Then you learn from a former secretary to the Mayfair sales representative that Mayfair knew that its trucking division was likely to strike. In fact the sales representative and the sales vice president had discussed whether or not to tell you of this fact and decided not to out of concern that you would not place your order. Required: 1. Has Mayfair done anything legally wrong? 2. Is your legal remedy against Mayfair limited to breach of contract? 3. Will you be able to get damages from Mayfair other than a refund of your prepayment? Explain.
> How can someone reasonably say that a voidable contract is both enforceable and unenforceable?
> Why are courts willing to apply contractual principles when the parties fail to create contractual relationships?
> (a) What is the distinction between a bilateral and a unilateral contract? (b) Which type is more common in business?
> Laura advertises a used car for $20,000. David asks why it is so expensive and Laura states that it is only two years old. David agrees to purchase the car for $20,000. But when he arrives home, he discovers the book value of the car is only $12,000. May
> Chatter is a social networking service that promises to keep its user’s data private. However, Chatter sells its data to a data broker who then sells it online. A Chatter user experiences a career impact from the disclosure. State whether this situation
> Hunt signs an equipment lease contract with Edwards Rental. The contract contains a clause stating: “Lessor disclaims all liability arising from injuries caused by use of this equipment.” Because the equipment has been improperly serviced by Edwards Ren
> Describe the circumstances under which an adult lacks the capacity to contract.
> Jefferson and Goldberg enter a contract for the sale of five acres of land at $10,000 per acre. Later, Goldberg, the buyer, asks if Jefferson will agree to modify the contract to $9,000 per acre. (a) Jefferson agrees. Is Jefferson’s promise binding on hi
> Roberts was the president and sole shareholder of a corporation. A federal grand jury issued a subpoena to him in his capacity as president. The subpoena required Roberts to produce corporate records. Roberts moves to quash the subpoena on Fifth Amendmen
> Fielding Bros. offers to ship six furnaces to Central City Heating and Cooling Co. for $4,500 cash. Central City accepts on the condition that Fielding give 120 days’ credit. Has a contract resulted? Explain.
> Condor Equipment Company offers to sell a dough cutting machine to Snappy Jack Biscuits Inc. The offer states: “This offer expires Friday noon.” On Thursday morning, the sales manager for Condor calls the president of Snappy Jack and explains that the ma
> Elegante Haberdashery telephones an order to Nordic Mills for 500 men’s shirts at $15 each. Each shirt will carry the Elegante label and have the Elegante trademark over the pocket. After the shirts are manufactured, Elegante refuses to accept delivery o
> (a) In general, are oral contracts as valid and enforceable as written ones? (b) Why should contracting parties consider reducing their agreement to writing?
> How has government action in recent years encouraged increased business attention to ethical matters?
> An online backpack store sells many products that are popular with elementary school children. The store knows some children under 10 subscribe to the store’s coupon service. Is the store subject to the Children’s Online Privacy Protection Act?
> If a grocery store records video of a customer as he shops for cereal, will that customer have a case based on intrusion on seclusion?
> What are the six constitutional rights provided in the Sixth Amendment?
> Does the double jeopardy clause apply to civil penalties? Why or why not?
> Burger’s junkyard business consists of dismantling automobiles and selling their parts. A New York statute authorized warrantless inspections of automobile junkyards. Police officers entered his junkyard, conducted an inspection, and discovered stolen ve
> What are the distinguishing characteristics of a conflict versus a dispute? Think about recent conflicts that did and did not become a dispute. Think about a recent dispute and describe how you handled it.
> (a) Summarize the seven elements of principled, interest-based negotiations. (b) How does focusing on these elements assist the negotiation process?
> In business disputes, what two items are most likely to dominate a position-based negotiation?
> List the five instinctive responses used in negotiation and describe how each of these applies to you.
> (a) Define substantive law and procedural law. (b) Is contract law substantive law or procedural law? How about a rule specifying that a defendant has 30 days to respond to a complaint?
> (a) What is the difference between civil law and criminal law? (b) Explain the two ways that the words civil law are used in this chapter.
> (a) What is public law? Give three examples of public law. (b) Explain private law. Give three examples.
> (a) Does this provision of the Constitution apply to the federal government, state government, or both? Explain. (b) Does this provision of the Constitution apply to present contractual relationships, future ones, or both? Explain.
> Discuss the importance of contract law to the private market system. How does contract law provide flexibility and precision in business dealings?
> Describe the two concepts that: (a) balance power within the federal government and (b) provide distinctions in the role of the federal, state, and local governments.
> (a) What is meant by the phrase statutorily mandated arbitration? (b) Is arbitration required in all cases? Why or why not?
> (a) What is “common law”? Why is the United States a “common law country”? (b) What is the primary distinction between common law and civil law legal systems?
> (a) A dispute arose between partners. The partnership agreement provided that if the parties were unable to agree on any matter, it would be submitted to arbitration. One partner filed suit asking a court to appoint a receiver for the business. The other
> Generally, what does an arbitrator have to include in the award to make it valid?
> (a) What is the purpose of a submission in an arbitration? (b) What is the proper role of the courts in determining whether a submission to arbitrate is valid?
> There are three levels of judicial scrutiny under this clause. Describe what these levels are and when they are applicable.
> The Supreme Court recently interpreted the Second Amendment for the first time in decades. Based on that decision, can individuals have guns in their homes for self-defense or is the right to possess guns limited only to members of a governmental-approve
> Silvia, an attorney in Florida, also was a licensed certified public accountant (CPA) and a certified financial planner (CFP). Silvia placed an ad in the yellow pages listing her credentials, including the CPA and CFP designations. The Florida Board of A
> Explain the purposes of and distinction between the establishment clause and the free exercise clause.
> What is the benefit to lawyers and parties of conducting a focus group?
> Why do businesses have incentives to settle disputes rather than relying on jury verdicts in the litigation process?
> What are the various items along the spectrum of ADR systems between litigation and negotiated settlements?
> (a) What is meant by the common law of contracts? (b) What is the UCC?
> (a) How does the law of contracts fit into our property-based legal system? (b) Explain why more resources are exchanged by contracts than by any other method.
> Why are formal legal rules alone not an adequate ethical system for business?
> Explain the assertion that businesses can lose rights if they do not diligently assess and pursue intellectual property protection.
> (a) Explain the balance between intellectual property’s rights of exclusion and competition. (b) Articulate alternatives to intellectual property for encouraging information creation.
> What are the three traditional business organizations and the four hybrid forms?
> What is “property”?
> Can a company have property in its marketing plans the way you can have property in your car?
> You and two of your college roommates have discussed plans to open a restaurant. You intend to attract college-age students who are health- and fitness-minded to your restaurant. You and your co-owners agree that each will invest equally in terms of time
> Other retail businesses in the mall in which your sports shoes shop is located have decided to open on Sundays from 12 noon to 6 P.M. You decide to follow suit, but two of your employees refuse to go along, saying it is against their religious beliefs to
> (a) What is the legal analysis used by the courts to grant the federal government broad authority to regulate business activity? (b) Why is it necessary to find the limits of the federal government’s authority to regulate commerce?
> Your employer, Let’s-Get-It-Done, has a history of multiple employee disputes. These disputes range from claims of illegal discrimination to general complaints of worker dissatisfaction with supervisors. You have been assigned the task of changing the or
> The operators of adult bookstores got together and each agreed to contribute $1,000 to a fund for use in lobbying the city council to repeal an ordinance which made the sale of sexually explicit publications a crime. If the operators are charged with vio
> In response to public pressure, all of the manufacturers of chewing tobacco agree not to advertise on radio or television. The resulting savings are used to reduce the price of the product to consumers. Furthermore, the use of chewing tobacco by teenager
> Assume that all manufacturers of computer chips entered into an agreement whereby each agreed to exchange information as to the most recent price charged or quoted to a consumer. Is this agreement a violation of the Sherman Act? Why or why not?
> The members of a real estate brokers’ multiple listing service voted to raise their commission rate from 6% to 7%. The bylaws of the association provided for expulsion of any member charging less than the agreed-upon commission. If broker Hillary continu
> Explain what it means to say that “emissions trading has propertitized pollution.”
> How have shareholder groups tried to make environmental concerns relevant to corporate governance?
> Do you ever “google” something on the Internet? Is the company Google in danger of losing its name as a trademark? Explain.
> Name four types of marks that are often called “trademarks.”
> Why has criminal misappropriation of trade secrets become an issue of greater concern in recent years?
> In 1916, the federal government passed a law that allows national banks to sell insurance in towns with a population of less than 5,000. In 1974, Florida passed a law prohibiting insurance agents from associating with financial institutions that are owne
> (a) What is the “general” sense of corporate governance? (b) Discuss how effective corporate governance contributes to the creation of economic wealth.
> What are the remedies available for the civil enforcement of trade secrets?
> What types of actions constitute misappropriation under trade secret law?
> (a) How do trade secrets differ from other applications of property? (b) Discuss several ways of preserving trade secrets.
> (a) List the five unfair labor practices created by the Wagner Act. (b) Describe a situation for each of these unfair labor practices.
> Describe the nature and limitations of the NLRB’s jurisdiction.
> Under what circumstances should a judge enter a judgment notwithstanding the verdict?
> What is the purpose of jury instructions?
> Pat lives in a state that has enacted a right-to-work law. The company that employs her has recognized the United Clerical Workers (UCW) as the bargaining representative of its workers. 710 The union has sought to collect union dues or their equivalent f
> The personnel director of your company has been asked to talk with the employees about the benefits and detriments of voting for or against the union in an upcoming certification election. What should this director keep in mind about the Free Speech Clau
> All of the orthodontists in your community at their annual holiday party agreed to charge the parents of each child patient a nonrefundable fee of $200 prior to beginning any treatment. They also agreed that the charge for an orthodontia procedure would
> (a) Explain why there are different standards of review of arbitration awards depending on whether the arbitration is voluntary or statutorily mandated. (b) Barbara and Cole Inc. disputed the amount of money due as “minimum royalties” under a mineral lea
> What are three defenses that might be used by a party charged with violating the Securities Act of 1933?
> Who are the four types of parties governed by the 1933 Securities Act?
> (a) How does property help generate prosperity? Discuss. (b) Explain the importance of the visibility of resources to the wealth of nations.
> The Soviet Constitution guaranteed the citizens’ private property. Why then was the former Soviet Union so poor?
> Define the power of judicial review. How do advocates of judicial restraint exercise that power?
> Compare and contrast ethics and morality. What do philosophers call the end result of ethical examination?
> The Mosquito No Company claims that its electronic mosquito device will “eliminate all mosquito problems within a one-half acre area.” Actually, the device will only work if there is no standing water on the half acre. Explain how the FTC will evaluate t
> Reader’s Digest sent out some 17 million sweepstakes promotions to consumers that featured “travel checks” and “cash convertible bonds” that the FTC claimed were deceptive and violated a previous consent order as well. What potential fine did the Digest
> The government challenged the acquisition by Procter & Gamble (P&G) of Clorox. Clorox was the leading manufacturer of liquid bleach at the time of the acquisition, accounting for 48% of the national sales. It was the only firm selling nationally, and the
> (a) An ice-cream franchiser requires its franchisees to purchase all ice cream, cones, and syrups from the franchiser. Does this contract violate the antitrust laws? Why or why not? (b) Would your answer be the same if the contract also required the fran
> The contract arising from Randolph’s purchase and financing of a mobile home contained an arbitration clause covering all disputes that might arise. When a dispute arose, Randolph filed a lawsuit in federal court alleging violations of the Truth-in-Lendi
> (a) Name the sanctions that can be imposed against a violator of the Clayton Act. (b) What is the significance of the word incipiency in Clayton Act enforcement?
> A male supervisor at Star Company made repeated offensive sexual remarks to female employees. The employees complained to higher management, which ignored the complaints. If the company does not discharge or otherwise penalize the employee, has it violat
> Does Title VII prohibit employment discrimination against members of all races? Explain.
> Martel, a competent male secretary to the president of ICU, was fired because the new president of the company believed it is more appropriate to have a female secretary. (a) Has a violation of the law occurred? (b) Assume that a violation of the law has
> James was indicted by a federal grand jury. During the trial jury’s deliberation one juror said, “I think James is guilty or else the grand jury would not have sent us the case.” Another juror objected to this statement and said, “The action of the grand
> Who are the parties to a criminal case?
> Several years ago, the Spul Chemical Corporation built a new plant near your neighborhood. About once a month, clouds of odorous mist have passed across your property, your children have complained of skin rashes, and you have heard that the water table
> Explain the standing to sue doctrine as it applies to the citizen enforcement of federal pollution laws.
> Explain when common carriers are not strictly liable for damage to transported goods.
> Through no one’s fault, a sludge dam of the Phillips Phosphate Company breaks. Millions of gallons of sludge run off into a nearby river that empties into Pico Bay. The fishing industry in the bay area is ruined. Is Phillips Phosphate Company liable to t
> As a client of a brokerage firm, Howsam invested in four limited partnerships. These investments were made between 1986 and 1994. The client agreement signed by Howsam required all disputes with the brokerage firm to be arbitrated. When she lost money on
> While driving under the influence of alcohol, Joe runs off the road and wrecks his car. As the car turns over, the protruding door latch hits the ground and the door flies open. Joe, who is not wearing his seat belt, is thrown from the car and badly hurt
> Beth was killed when a trench collapsed. An investigation revealed that the trench was 27 feet deep and without adequate shoring, in violation of safety standards. Bob, the president of the firm, is charged with negligent homicide. Is a finding of guilt
> Why is cyber crime difficult to detect and to prosecute successfully?
