Nelson is Organic Coffee Company’s majority shareholder. Nelson decides to sell his
Organic Coffee stock. The sale will be an effective transfer of the control of the
company. Does Nelson owe a duty to Organic Coffee or its minority shareholders in this
situation?
Answer:
Compared to business ethics, employee ethics is not an important issue.
Answer:
For civil sanctions to be imposed under Section 10(b) of the Securities Exchange Act of
1934 and SEC Rule 10b-5, the violator must not have had an intent to defraud or
knowledge of his or her misconduct.
Answer:
Rashi is a student at State University. In need of funds to pay for tuition and books,
Rashi asks Tiempo Loans, Inc., for a short-term loan. The lender agrees to make a loan
if Rashi will have someone who is financially responsible guarantee the loan payments.
Umberto, a well-known businessperson and a friend of Rashi’s family, calls Tiempo and
agrees to pay the loan if Rashi cannot. Because of Umberto’s reputation, the loan is
made. Rashi is making the payments, but because of illness he is unable to work for one
month. He asks Tiempo to extend the loan for three months. The lender agrees, raising
the interest rate for the extended period. Umberto is not notified of the extension (and
thus does not consent to it). One month later, Rashi drops out of school. All attempts to
collect the remainder of the loan from Rashi fail. Can Tiempo assert a claim against
Umberto on the debt?
Answer:
An employee may take up to twenty-six weeks of military caregiver leave within a
twelve-month period to care for a family member with a serious injury or illness
incurred as a result of military duty.
Answer:
Vogel bought a phone made by WiFi Communications, Inc. Three months later, after
recharging the battery through a power jack, Vogel picked up the phone only to have it
ignite in his hand. Suffering a severe burn, Vogel filed a suit against WiFi, alleging that
a design defect in the phone weakened the connection between the power jack and the
motherboard, causing the wiring to overheat and creating an unreasonable safety
hazard. Could Vogel succeed on his strict product liability claim? Explain.
Answer:
Any oil facility that discharges oil into navigable waters or onto an adjoining shore may
be liable for cleanup costs, as well as damages.
Answer:
Generally, under employment-at-will doctrine, an employer may fire an employee even
if doing so would violate a federal or state statute.
Answer: