Business Law 16th Edition

Chapter 01 - The Nature of Law V. ANSWERS TO PROBLEMS AND PROBLEM CASES: 1. No. On appeal, the Supreme Court of Minnesota held that the state's dog bite statute applies to municipal owners of dogs. In deciding that the word "owner" in the dog bite statute could apply to municipal owners

Chapter 10 - The Agreement: Offer V. ANSWERS TO PROBLEMS AND PROBLEM CASES: 1. No. The court rejected this claim on the ground that the plant managers statements were so vague and indefinite that no contract was formed. Armstrong v. Rohm and Haas Company, Inc., 349 F. Supp. 2d 71 (D. Mass.

Chapter 11 - The Agreement: Acceptance V. ANSWERS TO PROBLEMS AND PROBLEM CASES: 1. No. In this case Citibank had made an offer to Wilson about a revised agreement. The court noted that acceptance need not be made by a spoken or written word. It can be accepted by conduct or

Chapter 12 - Consideration V. ANSWERS TO PROBLEMS AND PROBLEM CASES: 1. Yes. Skebba fully performed on his duties in reliance on the promise, which was exactly what Kasch hoped for and expected. To allow Kasch to escape liability would be unjust. The court retains significant discretion in fashioning a remedy for

Chapter 13 - Reality of Consent V. ANSWERS TO PROBLEMS AND PROBLEM CASES 1. No. A contract may be rescinded on the ground of mutual mistake when both parties have an erroneous assumption about a matter basic to the contract. The mistake must have had a material effect on the agreed exchange.

Chapter 14 - Capacity to Contract CHAPTER 14 CAPACITY TO CONTRACT I. OBJECTIVES This chapter is designed to familiarize students with the circumstances under which a person may avoid a contract because of lack of capacity. After reading the chapter and attending class, a student should be able to: A. Explain the concept of capacity to

Chapter 14 - Capacity to Contract V. ANSWERS TO PROBLEMS AND PROBLEM CASES: 1. Yes. The issue is whether the medical care provided to Williams was a necessary. Normally, items provided to a minor that are supplied to the minor by a parent are not considered necessary. Although Williams was dependent on

Chapter 15 - Illegality CHAPTER 15 ILLEGALITY I. OBJECTIVES: This chapter is designed to teach students about the circumstances under which a contract cannot be enforced because it violates public policy. After reading the chapter and attending class, a student should be able to: A. Explain the concept of illegality as it is used in

Chapter 15 - Illegality V. ANSWERS TO PROBLEMS AND PROBLEM CASES: 1. The employees. The court noted that the plaintiffs would have a legitimate business interest in protecting its proprietary system through a restrictive covenant if the covenant was reasonable in duration and geographic extent. With that being said, the court went

Chapter 16 - Writing CHAPTER 16 WRITING I. OBJECTIVES This chapter is designed to acquaint students with the circumstances under which a contract must be in writing. It is also designed to teach them about the operation of the parol evidence rule and the basic rules of contract interpretation. After reading the chapter and attending

Chapter 16 - Writing V. ANSWERS TO PROBLEMS AND PROBLEM CASES 1. No. The court determined whether the statute of frauds was satisfied under the merchants memo exception. The sticking point was whether the farmer was a merchant within the meaning of the merchants memo exception. The court decided that the farmer

Chapter 17 - Rights of Third Parties V. ANSWERS TO PROBLEMS AND PROBLEM CASES 1. Yes. Even though Schauers ex-husband did not assign the ring to her, he nevertheless made the contract with Mandarin Gems for the sole and stated purpose of giving the ring to her. They went shopping together and the

Chapter 18 - Performance and Remedies V. ANSWERS TO PROBLEMS AND PROBLEM CASES 1. No. The Reservation Agreement was not a contract for a specific plane, but rather a contract to maintain a place in line to buy a plane if and when it became available. In addition, the parties had agreed to

Chapter 19 - Formation and Terms of Sales Contracts CHAPTER 19 FORMATION AND TERMS OF SALES CONTRACTS I. OBJECTIVES: In chapters 8-18, the student studied the common law rules that govern the creation and performance of contracts generally. This chapter, and the three that follow, build on that discussion and focus on the law

Chapter 19 - Formation and Terms of Sales Contracts V. ANSWERS TO PROBLEMS AND PROBLEM CASES: 1. No. The court noted that the Uniform Commercial Code applies only to transactions involving the sale of goods. If a contract involves only the sale of goods, the UCC applies. If a contract involves the

Chapter 02 - The Resolution of Private Disputes CHAPTER 02 THE RESOLUTION OF PRIVATE DISPUTES I. OBJECTIVES: As its title suggests, this chapter is concerned with the resolution of disputes that give rise to civil cases. For the most part, it is a nuts-and-bolts chapter intended to acquaint the student with courts, their civil

Chapter 02 - The Resolution of Private Disputes V. ANSWERS TO PROBLEM CASES: 1. No. A trial judge's decision not to admit evidence is legal in nature, because it applies the law of evidence. Thus, the appellate court can decide on the correctness of the trial judge's ruling. of evidence. Thus, the appellate court

Chapter 20 - Product Liability CHAPTER 20 PRODUCT LIABILITY I. OBJECTIVES: This chapter is designed to acquaint students with the main theories of product liability recovery and the various collateral problems those theories present. After finishing with the material in this chapter, the student should: 1) understand the basic theories of product liability recovery;

Chapter 20 - Product Liability V. ANSWERS TO PROBLEM CASES: 1. No. The Illinois Court of Appeals held that an express warranty was created when the seller of the used car stated that the car was in good mechanical condition. The statement was an affirmation of fact that became part of the

Chapter 21 - Performance of Sales Contracts CHAPTER 21 PERFORMANCE OF SALES CONTRACTS I. OBJECTIVES: This chapter builds on the previous two chapters in which the formation and basic terms of sales contracts, including warranties, are discussed. This chapter deals with the performance of contracts, including interpretation, modification, basic duties, rights when performance is defective,

Chapter 21 - Performance of Sales Contracts V. ANSWERS TO PROBLEMS AND PROBLEM CASES: 1, Yes. The owner of the potato processing plant breached its contracts with the two potato growers by waiting to reject the potatoes grown by the growers had deteriorated to the point where they could not be sold

Chapter 22 - Remedies for Breach of Sales Contracts CHAPTER 22 REMEDIES FOR BREACH OF SALES CONTRACTS I. OBJECTIVES: This chapter is intended to acquaint the student with the remedies available to an injured party, the Code rules that govern buyer-seller agreements as to remedies, and the Code's statute of limitations. After reading the

Chapter 22 - Remedies for Breach of Sales Contracts V. ANSWERS TO PROBLEMS AND PROBLEM CASES 1. Yes. The liquidated damages clause providing that the minimum value of any lost or damaged photograph was to be $1,500, but a higher reasonable value might be established, was enforceable because (1) the harm caused by

Chapter 23 - Personal Property and Bailments CHAPTER 23 PERSONAL PROPERTY AND BAILMENTS I. OBJECTIVES This chapter's objectives are to acquaint students with the concept of property, to examine the various classifications of property, and to explore the ways that ownership of personal property can be obtained. The chapter also surveys the law

Chapter 23 - Personal Property and Bailments V. ANSWERS TO PROBLEMS AND PROBLEM CASES 1. No. The property should not be considered mislaid property. Mislaid property, to which Paset as finder would not acquire any rights, is property that is intentionally put in a certain place and later forgotten. Lost property, which

Chapter 24 - Real Property CHAPTER 24 REAL PROPERTY I. OBJECTIVES This chapter is designed to teach students about the nature of real property, the basic rights and responsibilities that attend real property ownership, the ways in which interests in real property may be transferred, and government regulation of the use of real property. After reading

V. ANSWERS TO PROBLEM CASES 1. Fixtures. The court applied the three factors that cause property to be considered a fixture (see pp. 666-667), and found that all of them applied. As a result, Sheikhpour did not have the right to remove the fuel tanks. Chevron U.S.A., Inc. v. Sheikpour, 2011

CHAPTER 25 LANDLORD AND TENANT I. OBJECTIVES This chapter is designed to acquaint students with the legal doctrines and trends affecting the landlord-tenant relationship. After reading the chapter and attending class, a student should be able to: 1. Recognize that the legal principles applicable to landlord-tenant relationships are drawn from property law, contract law,

V. ANSWERS TO PROBLEMS AND PROBLEM CASES: 1 Yes. The trial court awarded them damages of$1,030 on their counterclaim and ruled against the landlord on its claim. The court of appeals upheld the decision and concluded that the numerous violations of the local housing code helped foster the breach of implied

Chapter 26 - Estates and Trusts CHAPTER 26 ESTATES AND TRUSTS I. OBJECTIVES This chapter is designed to acquaint students with legal rules and procedures regarding the transfer of property at death, planning for disability, and planning devices that can be used to direct the transfer of property both at death and during life.

Chapter 26 - Estates and Trusts V. ANSWERS TO PROBLEMS AND PROBLEM CASES 1. No. A will can be revoked in a number of ways, such as marking out, burning, destroying, or making a subsequent will. None of these appeared to apply to Johns situation, because there was no proof that he had ever

Chapter 27 - Insurance Law CHAPTER 27 INSURANCE LAW I. OBJECTIVES: This chapter is designed to acquaint students with important components of insurance law and to familiarize them with specialized concepts and issues that relate to specific types of insurance. After reading the chapter and attending class, a student should: A. Understand the nature of

Chapter 27 - Insurance Law V. ANSWERS TO PROBLEM CASES: 1. World Trade Center Properties, LLC v. Hartford Fire Insurance Co., 345 F.3d 154 (2nd Cir. 2003). The Second Circuit Court of Appeals holds that under the definition of occurrence set forth in the Wilprop form binders issued by Hartford, Royal, and

CHAPTER 28 INTRODUCTION TO CREDIT AND SECURED TRANSACTIONS I. OBJECTIVES: The objective of this chapter is to provide some overview and historical perspective on credit transactions and then to survey three topics: common law liens, sureties and guarantors, and . secured real estate transactions. After reading the chapter and attending class, the

V. ANSWERS TO PROBLEMS AND PROBLEM CASES: 1. Yes. The court held that a surety has a defense against performance of his obligation if the creditor failed to disclose facts that materially increased the surety's risk. Here, the creditor was in possession of facts concerning the true state of Jones's payments and

CHAPTER 29 SECURITY INTERESTS IN PERSONAL PROPERTY I. OBJECTNES: This chapter is intended to give the students an understanding of the Code rules that govern secured transactions in personal property. After reading the chapter and attending class, a student should be able to: 1. Recognize and describe the different classes or types of

V. ANSWERS TO PROBLEMS AND PROBLEM CASES: 1. Grinnel Brothers can argue that the drums were "consumer goods" and therefore exempted from the filing requirements of 9-401 by 9-302. While this argument might have merit in many situations, here the purchaser of the goods was a professional musician. He earned a

Chapter 03 - Business and the Constitution CHAPTER 03 BUSINESS AND THE CONSTITUTION I. OBJECTIVES: This chapter is meant to acquaint students with the most important business-related aspects of constitutional law. We therefore do not attempt to cover constitutional law in its entirety. Instead, the chapter focuses on the major constitutional bases of federal and

Chapter 03 - Business and the Constitution b. c. What, then, is commercial speech? As noted in the text, the Supreme Court has normally defined it as speech that proposes a commercial transaction. (Actually, the Courts usual formulation refers to commercial speech as speech that does no more than propose a commercial

Chapter 03 - Business and the Constitution V. ANSWERS TO PROBLEM CASES: 1. The Supreme Court ruled in favor of Jones, holding that under the circumstances, he had been denied due process. When the mailed notice of the tax sale was returned to the state unclaimed, the state knew that Jones had

CHAPTER 30 BANKRUPTCY I. OBJECTIVES: This chapter is intended to provide a survey of the law of bankruptcy in order to acquaint the student with the purpose, approach and major concepts embodied in the Bankruptcy Act. After reading the chapter and attending class, a student should be able to: 1. Explain the purpose of the

V. ANSWERS TO PROBLEMS AND PROBLEM CASES: 1. The court considered the CR to be an exempt "household good" but denied the exemption for the firearms as it did not believe they were reasonably necessary for day-to-day existence. Barnes v. ITT Financial Services, 117 B.R. 842 (Bankr. D. Maryland 1990). the firearms

CHAPTER 31 NEGOTIABLE INSTRUMENTS I. OBJECTNESS: The objective of this chapter is to introduce students to the nature and advantages of negotiable instruments and to discuss the requirements for negotiable instruments so as to lay a foundation for three chapters that follow. After reading this chapter and attending class, a student should be

VII. ANSWERS TO PROBLEMS AND PROBLEM CASES: 1. The instrument is the order instrument known as a draft. That it contains an "order" as opposed to a "promise" differentiates it from the promissory note category and because it is not drawn on a bank nor payable on demand means it cannot

CHAPTER 32 NEGOTIATION AND HOLDER IN DUE COURSE I. OBJECTNES: The objective of this chapter is to discuss the concepts of negotiation and holder in due course and to detail the requirements for qualifying as a holder in due course as well as the special rights that status entails. After reading the chapter

VI. ANSWERS TO PROBLEMS AND PROBLEM CASES: 1. No. Elgin Bank had to repay O.K. Moving & Storage for all the restrictively indorsed checks payable to it that the bank had deposited to Raye Walker's account. The bank had a duty to pay the check only as ordered by the payee-O.K.

CHAPTER 33 LIABILITY OF PARTIES I. OBJECTIVES: The objective of this chapter is to explain the various ways a person can become liable on a negotiable instrument and the nature of the liability incurred. The chapter also discusses the various ways that liability can be discharged. After reading the chapter and attending class,

V. ANSWERS TO PROBLEMS AND PROBLEM CASES: 1. Yes. Every indorser is obligated that upon dishonor and notice of dishonor and protest, he will pay the instrument to the holder. Unless the indorser qualified the indorsement, the indorser's liability holds even if he or she did not receive any value for

CHAPTER34 CHECKS AND ELECTRONIC TRANSFERS I. OBJECTIVES: The objective of this chapter is to discuss the Code provisions that govern the bank-customer relationship where the customer maintains a checking account. It also discusses some of the evolving law concerning electronic fund transfer systems. After reading this chapter and attending class, a student

V. ANSWERS TO PROBLEMS AND PROBLEM CASES: 1. Yes. The bank breached its contract with the depositor by allowing the unauthorized transfer of funds from the account. A bank may charge against the account of a customer only items that are properly payable from the account; that is, items authorized by

Chapter 35 - The Agency Relationship CHAPTER 35 THE AGENCY RELATIONSHIP I. OBJECTIVES This chapter acquaints students with the formation of the agency relation, some basic agency concepts, the agent's duties to the principal, the principal's duties to the agent, and termination of the agency relation (including termination's effect on the principal's authority). The

Chapter 35 - The Agency Relationship V. ANSWERS TO PROBLEMS AND PROBLEM CASES 1. No. Agency power to act for a principal must come from the principal. Euclid did not confer on Del-Mar any power to act for Euclid or request Del-Mar to act for Euclid in any respect. Therefore, Del-Mar had no

Chapter 36 - Third-Party Relations of the Principal and the Agent CHAPTER 36 THIRD-PARTY RELATIONS OF THE PRINCIPAL AND THE AGENT I. OBJECTIVES This chapter is intended to acquaint students with the many legal rules governing the principal's and the agent's relations with third parties. After studying the material presented in this chapter,

Chapter 36 - Third-Party Relations of the Principal and the Agent V. ANSWERS TO PROBLEMS AND PROBLEM CASES 1. No on the loan, but yes on the Enron purchase. There is no actual (express or implied) authority to purchase Enron shares or borrow from Wells Fargo, as Bravario did not expressly manifest or

Chapter 37 - Introduction to Forms of Business and Formation of Partnerships CHAPTER 37 INTRODUCTION TO FORMS OF BUSINESS AND FORMATION OF PARTNERSHIPS I. OBJECTIVES This chapter serves the function of introducing a student to the forms of business organization and the creation of partnerships and limited liability partnerships (LLPs). Students should master at least

Chapter 37 - Introduction to Forms of Business and Formation of Partnerships V. ANSWERS TO PROBLEM CASES: 1. The LLC and the LLLP would be better than the limited partnership, unless the only general partner of the limited partnership was a corporation or LLC, thereby giving all human investors limited liability, just

Chapter 38 - Operation of Partnerships and Related Forms CHAPTER 38 OPERATION OF PARTNERSHIPS AND RELATED FORMS I. OBJECTIVES This chapter is intended to acquaint students with the rules regarding the management of partnerships, especially the rights, duties, and liabilities of partners. Students should: A. Know the duties partners owe each other. B. Understand how partners

Chapter 38 - Operation of Partnerships and Related Forms V. ANSWERS TO PROBLEMS AND PROBLEM CASES 1. No. The court found that partnership agreement demonstrated the parties' focus was on the singular mission of developing two gas wells, Danylko # 1 and Dougherty # 1. There was no mention of any additional

Chapter 39 - Partners' Dissociation and Partnerships' Dissolution and Winding Up CHAPTER 39 PARTNERS' DISSOCIATION AND PARTNERSHIPS' DISSOLUTION AND WINDING UP I. OBJECTIVES This chapter is intended to acquaint student with the process by which partners leave and enter partnerships. A student should be able to: A. Define dissociation and distinguish wrongful dissociation from nonwrongful dissociation. B.

Chapter 39 - Partners' Dissociation and Partnerships' Dissolution and Winding Up V. ANSWERS TO PROBLEMS AND PROBLEM CASES 1. The court found that Horizon had not acted wrongfully by requesting a judicial dissolution and that it was proper for the trial court to grant Horizons request to dissolve the partnership. Because the partnership

Chapter 04 - Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking CHAPTER 04 BUSINESS ETHICS, CORPORATE SOCIAL RESPONSIBILITY, CORPORATE GOVERNANCE, AND CRITICAL THINKING I. OBJECTIVES After reading this chapter, a student should know: A. The importance of ethical decision making to all business managers. B. The major issues in the corporate social responsibility debate. C. The

Chapter 04 - Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking V. ANSWERS TO PROBLEMS AND PROBLEM CASES 1. First you find the facts that will help you make the right decision. At the very least, you want to discover why she has missed work and is distracted. She may have

Chapter 40 - Limited Liability Companies, Limited Partnerships, and Limited Liability Limited Partnerships CHAPTER 40 LIMITED LIABILITY COMPANIES, LIMITED PARTNERSHIPS, AND LIMITED LIABILITY LIMITED PARTNERSHIPS I. OBJECTIVES There is much detail in this chapter, most of which you may expect the students to read and understand on their own. Students should be able to relate

Chapter 40 - Limited Liability Companies, Limited Partnerships, and Limited Liability Limited Partnerships V. ANSWERS TO PROBLEMS AND PROBLEM CASES 1. No. The court reasoned that if a creditor could require an LLC to make a call for capital on the LLC member for their pro rata shares of the LLC's business

Chapter 41 - History and Nature of Corporations CHAPTER 41 HISTORY AND NATURE OF CORPORATIONS I. OBJECTIVES This chapter is intended to introduce students to the nature of corporations. Students should: A. Understand the history of corporation law. B. Know the characteristics of corporations. C. Appreciate how corporations are regulated by the states in which they are

Chapter 41 - History and Nature of Corporations V. ANSWERS TO PROBLEMS AND PROBLEM CASES 1. The advantage of free transferability of the shares does not exist in this context, because there are not a large number of investors who are interested in buying into a closely held business dominated by you and

Chapter 42 - Organization and Financial Structure of Corporations CHAPTER 42 ORGANIZATION AND FINANCIAL STRUCTURE OF CORPORATIONS I. OBJECTIVES After reading this chapter, a student should know: A. The role of promoters in starting corporate businesses and the liability risk of being a promoter. B. The importance of selecting an appropriate state for incorporation. C. The steps to

Chapter 42 - Organization and Financial Structure of Corporations V. ANSWERS TO PROBLEMS AND PROBLEM CASES 1. Zoltar and McCrory could sign a contract in which McCrory agrees to look only to the future corporation for performance. The problem with this option is that because the corporation is not in existence and

Chapter 43 - Management of Corporations CHAPTER 43 MANAGEMENT OF CORPORATIONS I. OBJECTIVES This chapter is intended to acquaint students with the management structure of corporations and the duties and liabilities of those who manage corporations. A student should know: A. The objectives and powers of corporations. B. The functions of boards of directors. C. The process

Chapter 43 - Management of Corporations V. ANSWERS TO PROBLEM CASES 1.Citing Nebraska corporate law that is identical to the MBCA, the court ruled that a trial court may remove a director in an action brought by shareholders holding at least 10 percent of the outstanding shares if the court finds that

Chapter 44 - Shareholders' Rights and Liabilities CHAPTER 44 SHAREHOLDERS RIGHTS AND LIABILITIES I. OBJECTIVES This chapter is intended to inform students of the rights and liabilities of shareholders. After reading the chapter and attending class, a student should: A. Know the types of shareholder control devices and their uses. B. Understand the shareholder input required

Chapter 44 - Shareholders' Rights and Liabilities V. ANSWERS TO PROBLEM CASES 1. No. The court held that the Oregon statute, drawn from the MBCA, did not permit the bylaws to determine a quorum for shareholder meetings. Only in the articles of incorporation by action of shareholders and directors could the corporation amend

Chapter 45 - Securities Regulation CHAPTER 45 SECURITIES REGULATION I. OBJECTIVES The purpose of this chapter is to familiarize students with the complexity of securities regulation and the important rules that will enable them and their clients to avoid an inadvertent violation of the securities laws. After reading this chapter and attending class, a

Chapter 45 - Securities Regulation Berardi also failed to discover that the cash balance on December 31, 1960, was temporarily inflated. Why was PM not liable for this misstatement? Although Berardi had failed to find correspondence between Talcott and BarChris indicating that BarChris had to return the temporary cash deposit to

Chapter 45 - Securities Regulation V. ANSWERS TO PROBLEM CASES 1. No, the LLC interests were not securities, because they did not meet the third requirement of the Howey investment contract test. The Tschetters exercised considerable management control over the business, and therefore, they had no expectation of profits solely from the

CHAPTER 46 LEGAL AND PROFESSIONAL RESPONSIBILITIES OF AUDITORS, CONSULTANTS, AND SECURITIES PROFESSIONALS I. OBJECTIVES The purpose of this chapter is to introduce students to the general nature of professional liability and the specific liability theories under which auditors, consultants, and securities professionals may be held responsible to their clients and other users of their work

V. ANSWERS TO PROBLEM CASES: 1. Yes. Since E&W failed to provide a turnkey system as promised, it was liable for negligence. E&Ws liability could have been predicated on breach of contract grounds as well. The court discussed what E&W should have done to ensure the system was a turnkey operation: 1)

Chapter 47 - Administrative Law CHAPTER 47 ADMINISTRATIVE LAW I. OBJECTIVES: This chapter is designed to teach students about the nature of administrative agencies, their regulatory processes, their importance in the American system of government and to the daily operations of business, and the limits on the exercise of their power. After reading the

Chapter 47 - Administrative Law V. ANSWERS TO PROBLEM CASES: 1. The Supreme Court held that the regulations were a permissible interpretation of the statute. In view of the ambiguous language used by Congress, the Secretary's interpretation of the statute was entitled to substantial deference. The Court also upheld the regulations against

Chapter 48 - The Federal Trade Commission Act and Consumer Protection Laws CHAPTER 48 THE FEDERAL TRADE COMMISSION ACT AND CONSUMER PROTECTION LAWS I. OBJECTIVES This chapter discusses the various forms of direct government regulation for the protection of consumers. The chapter is intended to acquaint students with: 1) the FTC and its functions (especially

Chapter 48 - The Federal Trade Commission Act and Consumer Protection Laws V. ANSWERS TO PROBLEMS AND PROBLEM CASES 1. No. As the text states, the FTC is able to order such corrective advertising. As the D.C. Circuit stated, "[t]he affirmative disclosure that Listerine will not prevent colds or lessen their severity is

Chapter 49 - Antitrust: The Sherman Act CHAPTER 49 ANTITRUST: THE SHERMAN ACT I. OBJECTIVES: This chapter is designed to acquaint students with the sociohistorical origins of the federal antitrust laws, the nature of the current antitrust policy debate, and the fundamental attributes of the Sherman Act. After reading the chapter and attending class,

Chapter 49 - Antitrust: The Sherman Act V. ANSWERS TO PROBLEM CASES: 1. In Atlantic Richfield Co. v. USA Petroleum Co., 495 U.S. 328 (1990), the Supreme Court held that USA could not show antitrust injury resulting from ARCO's actions, even if it were assumed that ARCO's actions were per se unlawful.

Chapter 05 - Criminal Law and Procedure CHAPTER 05 CRIMINAL LAW AND PROCEDURE I. OBJECTIVES: This chapter is designed to impress upon students the importance of being familiar with basic criminal law principles and to expose students to the fundamental difficulties inherent in the application of the criminal law in the corporate context. After

Chapter 05 - Criminal Law and Procedure b) C. Criminal Procedure. 1. Discuss the stages in a criminal prosecution, as outlined in the text. Note any significant variances in your state's procedure. Point out the discretion enjoyed by officials at each stage of the process (i.e., will the police arrest and, if so,

Chapter 05 - Criminal Law and Procedure V. ANSWERS TO PROBLEM CASES: 1. No. The Supreme Court granted the governments petition for a writ of certiorari and held that Ressams conviction should stand. Therefore, the Court reversed the Ninth Circuits decision. The Court noted that the statute referred only to the carrying

Chapter 50 - The Clayton Act, the RobinsonPatman Act, and Antitrust Exemptions and Immunities CHAPTER 50 THE CLAYTON ACT, THE ROBINSON-PATMAN ACT, AND ANTITRUST EXEMPTIONS AND IMMUNITIES I. OBJECTIVES: This chapter is designed to familiarize students with the Clayton and Robinson-Patman Acts, and with the various statutory and judicially created exemptions and immunities from antitrust

Chapter 50 - The Clayton Act, the RobinsonPatman Act, and Antitrust Exemptions and Immunities D. Clayton Act Section 8 1. Discuss the language of Section 8 and the competitive threat at which the statute is aimed. a. Note the fairly recent changes in the statute's language. Example: Problem Case #10. E. The Robinson-Patman

Chapter 50 - The Clayton Act, the RobinsonPatman Act, and Antitrust Exemptions and Immunities V. ANSWERS TO PROBLEM CASES: 1. Yes. The Ninth Circuit Court of Appeals noted that the standards for tying liability are identical under the Sherman and Clayton Acts and that the same defenses to tying claims are available

Chapter 51 - Employment Law CHAPTER 51 EMPLOYMENT LAW I. OBJECTIVES This chapter discusses the most important legal topics that deserve to be considered part of employment law. Although the chapter's scope is broad, its emphasis is selective. That is, the chapter concentrates its efforts on the employment-related topics that hopefully are of the

Chapter 51 - Employment Law a) 3. Section 1981 a. The main things to emphasize here are: 1) that section 1981 frequently overlaps with Title VII where it applies and Title VII plaintiffs often include a section 1981 count in their complaints, 2) the advantages section 1981 sometimes gives plaintiffs as compared with Title

Chapter 51 - Employment Law V. ANSWERS TO PROBLEMS AND PROBLEM CASES: 1. No. With reasoning akin to taking a victim as she comes, the court found that Childerss weight condition combined with an injury that arose out of his employment to produce a single injury. Prior to the freezer door striking

CHAPTER 52 ENVIRONMENTAL REGULATION I. OBJECTIVES: This chapter is intended to provide students with an overview of the major environmental laws with which business is concerned. After reading the chapter and attending class, a student should be able to: 1. Explain when an environmental impact statement must be prepared and what it must contai n .. 2.

V. ANSWERS TO PROBLEMS AND PROBLEM CASES: 1. No. The court found that the environmental impacts would be relatively minor-and that the Forest Service could (and was committed to) take steps that would minimize an adverse effects on the bears. Cabinet Mountain Wilderness/Scotchman 's Grizzly Bears v. Peterson,685 F.2d 678 (D.C.

Chapter 06 - Intentional Torts CHAPTER 06 INTENTIONAL TORTS I. OBJECTIVES: This chapters examination of intentional torts may be supplemented, in the instructors discretion, with Chapter 8's discussion of competitive torts. After reading Chapter 6 and attending class, students should be able to: A. Distinguish between tort liability and criminal liability, identify the basic

Chapter 06 - Intentional Torts 5. Defamation a. Introduce this tort by noting that two competing interests are at stake: (1) the plaintiffs interest in protection of reputation; and (2) the defendants interest in freedom of speech. Defamations legal components, likewise, may be divided into two categories: first, the common law elements

Chapter 06 - Intentional Torts V. ANSWERS TO PROBLEM CASES: 1. Yes, Garley had the necessary intent for battery liability. The defendant either must desire to bring about certain results of his action or recognize that such results are substantially certain to occur. England's failure to suffer physical harm does not doom

Chapter 07 - Negligence and Strict Liability CHAPTER 07 NEGLIGENCE AND STRICT LIABILITY I. OBJECTIVES: This chapter is designed to acquaint students with the other two bases of tort liability: negligence and strict liability. After reading the chapter and attending class, a student should: A. Be able to identify the basic elements of a

Chapter 07 - Negligence and Strict Liability V. ANSWERS TO PROBLEM CASES: 1. Yes. Cingular owes no duty to Williams. Although it is widely understood that auto accidents are more likely when the driver is operating a cellular phone, responsibility for those accidents lies with the driver. The car accident traces back to

Chapter 08 - Intellectual Property and Unfair Competition CHAPTER 08 INTELLECTUAL PROPERTY AND UNFAIR COMPETITION I. OBJECTIVES This chapter is designed to acquaint students with the law of intellectual property, certain "commercial" or "competitive" torts, and the law of unfair competition as represented by 43(a) of the Lanham Act. See the Learning Objectives that

Chapter 08 - Intellectual Property and Unfair Competition 6. Note that when the plaintiff elects the statutory damages option alluded to at p. 286 (instead of choosing the basic remedy of actual damages plus infringer's attributable profits), the court sets the amount of recovery within certain ranges set by Congress. Proof

Chapter 08 - Intellectual Property and Unfair Competition V. ANSWERS TO PROBLEMS AND PROBLEM CASES 1. The defendant was correct. This invention was obvious, according to the Supreme Court. Therefore, the invention failed the nonobviousness requirementmeaning that the patent was invalid and that the defendant had a good defense. The Court reasoned that

Chapter 09 - Introduction to Contracts CHAPTER 09 INTRODUCTION TO CONTRACTS I. OBJECTIVES: This chapter, and the contracts chapters that follow, are designed to give the student a feel for contract law as an evolving social institution rather than as a static body of rules. Accordingly, emphasis is placed not only on traditional contract

Chapter 09 - Introduction to Contracts V. ANSWERS TO PROBLEMS AND PROBLEM CASES 1. Yes. The court applied the predominant factor test to determine whether the primary purpose of the contract was for goods or services. It stated that if the contract was primarily for goods, the UCC would apply, but if

The equity of a partnership is called partnership capital. Answer: TRUE Partnership capital is the equity of a partnership business. Answer: TRUE Partnership capital is the equity of a partnership business. Answer: TRUE Partnership capital is the equity of a partnership business. Competitors making an agreement to split up a geographical area and not

Under the Revised Uniform Partnership Act partners owe each other loyalty. Answer: TRUE Under the Revised Uniform Partnership Act (RUPA) partners owe to the partnership and each other the highest degree of loyalty. Answer: TRUE Under the Revised Uniform Partnership Act (RUPA) partners owe to the partnership and each other the highest

Owners of an LLC are called members. Answer: TRUE The owners of a limited liability company (LLC) are called members. Answer: TRUE The owners of a limited liability company (LLC) are called members. Answer: TRUE The owners of a limited liability company (LLC) are called members. A bank will be liable if it charges

When both the bank and the customer failed to use ordinary care to prevent alteration or forgery of checks then a comparative negligence is used to determine liability for damages. Answer: TRUE According to the UCC in a case where both a bank and its customer fail to use ordinary care then

Officers of a corporation, like a vice president, are also agents of the corporation. Answer: TRUE The officers of the corporation also serve as agents of the business. Answer: TRUE The officers of the corporation also serve as agents of the business. Answer: TRUE The officers of the corporation also serve as agents

During the early period of American history the state governments issued special charters that created corporations. Answer: TRUE Early American corporations received special charters from state legislatures that were granted one at a time by special action of the legislature. Answer: TRUE Early American corporations received special charters from state legislatures that

An organizer is the individual that incorporates a business. Answer: FALSE A promoter is the individual that incorporates a business or organizes its initial management and raises its initial capital. Answer: FALSE A promoter is the individual that incorporates a business or organizes its initial management and raises its initial capital. Answer: FALSE

SuperMart Inc. operates a franchise operation. Mr. Jones purchased a right to open a SuperMart but the agreement has a vertical restraint, Mr. Jones is not allowed to market or seek customers beyond 25 miles of his franchise store. This agreement is per se illegal. Answer: FALSE The Supreme Court in

If a state offers a granted privilege, like accountant-client privilege then the federal courts in that jurisdiction will also allow that privilege. Answer: TRUE Generally if a state offers a particular privilege, then the federal courts will recognize that privilege in the same jurisdiction. Answer: TRUE Generally if a state offers a

A heated disagreement is grounds for dissociation of a partner with the business. Answer: FALSE Mere disagreements, even irreconcilable differences, between partners are expectable and therefore by themselves are not grounds for dissociation. Answer: FALSE Mere disagreements, even irreconcilable differences, between partners are expectable and therefore by themselves are not grounds for

A promoter is not an agent of the future corporation. Answer: TRUE A promoter of a nonexistent corporation is not an agent of the prospective corporation. Answer: TRUE A promoter of a nonexistent corporation is not an agent of the prospective corporation. Answer: TRUE A promoter of a nonexistent corporation is not an