BUSN 420 Business Law

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BUSN 420 Business Law 
The case of Manufacturers Association v. South Coast Air Quality Management District involves…

 

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BUSN 420 Business Law

BUSN 420 Business Law

A+ Entire Course: Assignment Week 1-7| Quiz Week 4, 5, 6| Discussions Week 1-7| Final Exam

Assignment Week 1-7 

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BUSN 420 Business Law

Assignment Week 1 

Case 4.2: Supremacy Clause

Case 4.7: Equal Protection Clause

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 Prepare answers to the following chapter-end Critical Legal Thinking Cases from this week’s reading.

Your responses should be well-rounded and analytical, and should not just provide a conclusion or an opinion without explaining the reason for the choice.

For full credit, you need to use the material from this week’s lectures, text, and/or discussions when responding to the questions. It is important that you incorporate the question into your response (i.e., restate the question in your introduction) and explain the legal principle(s) or concept(s) from the text that underlies your judgment.

For each question, you should provide at least one reference in APA format (in-text citations and references as described in detail in the Syllabus). Each answer should be double-spaced in 12-point font, and your response to each question should be between 300 and 1,000 words in length.

Submit this assignment as a single Word document covering both cases.

Preview:

The case of Manufacturers Association v. South Coast Air Quality Management District involves the Clean Air Act, which implements national air pollution standards for fleet vehicles, such as trucks, taxicabs, and buses.  In the same manner, the South Coast Air Quality Management District implements its own pollution standards for Los Angele, California.  A political entity of California, South Coast implements fleet rules that…

In the case of Metropolitan Life Insurance Co v Ward, commissioner of Insurance of Alabama, the Metropolitan Life Insurance Co filed a case against the state of Alabama for imposing unfair laws on out-of-state insurance companies in comparison to domestic insurance companies.  In particular, the state imposed a…

BUSN 420 Business Law

Assignment Week 2 

Case 5.2: Negligence

Case 6.1: Strict Liability

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Prepare answers to the following chapter-end Critical Legal Thinking Cases from this week’s reading.

Your responses should be well-rounded and analytical, and should not just provide a conclusion or an opinion without explaining the reason for the choice.

For full credit, you need to use the material from the week’s lectures, text, and/or discussions when responding to the questions. It is important that you incorporate the question into your response (i.e., restate the question in your introduction) and explain the legal principle(s) or concept(s) from the text that underlies your judgment.

For each question, you should provide at least one reference in APA format (in-text citations and references as described in detail in the Syllabus). Each answer should be double-spaced in 12-point font, and your response to each question should be between 300 and 1,000 words in length.

Submit this assignment as a single Word document covering both cases.

Preview:

In the case of Wilhem v. Flores, Wilhelm owned beehives, which he kept in his own property.  Black ran a honeybee business and was a customer of Wilhem.  Flores was employed by Black to assist him in picking up the beehives from Wilhelm.  Although Black provided Flores with a protective suit for him to wear while picking up the bees, neither he nor Wilhelm advised Flores of how dangerous it was to work with bees.  As it turned out, Flores would…

In the case of Lakin v. Senco, Lakin purchased an SN325 nail gun, which was manufactured by Senco.  Senco made a new model of the nail gun, which was capable of shooting longer nails.  However, this new nail gun model did not undergo thorough testing, as Senco did not want to lose its…

BUSN 420 Business Law

Assignment Week 3 

Case 9.2: Bilateral or Unilateral Contract

Case 10.2: Agreement

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Prepare answers to the following chapter-end Critical Legal Thinking Cases from this week’s reading.

Your responses should be well-rounded and analytical, and should not just provide a conclusion or an opinion without explaining the reason for the choice.

For full credit, you need to use the material from the week’s lectures, text, and/or discussions when responding to the questions. It is important that you incorporate the question into your response (i.e., restate the question in your introduction) and explain the legal principle(s) or concept(s) from the text that underlies your judgment.

For each question you should provide at least one reference in APA format (in-text citations and references as described in detail in the Syllabus). Each answer should be double-spaced in 12-point font, and your response to each question should be between 300 and 1,000 words in length.

Submit this assignment as a single Word document covering both cases.

Preview:

In the case of Bickham v. Washington Bank & Trust Company, Bruce Bickham and G.S. Adams, Jr. made an agreement that Bickham would do his corporate and personal banking with the bank in exchange of which the bank would loan money to Bickham at an interest rate of 7.5%.  The loan Bickham made was payable in 10 years, and for the next two years, the bank granted Bickham loans at an interest rate of 7.5%.  However, Adams resigned from the…

In the case of McLaughlin v Heikkila, Wilbert Heikkila listed eight parcels f real estate property for sale.  In response, David McLaughlin sent three written offers for the three parcels of land.  The offers came with purchase agreements and three earnest-money checks.  However, Heikkila changed the terms of the purchase requirements, and before McLaughlin signed the purchase agreements to accept the…

BUSN 420 Business Law

Assignment Week 4 

Case 13.5: Innocent Misrepresentation

Case 20.1: Cure

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Prepare answers to the following chapter-end Critical Legal Thinking Cases from this week’s reading.

Your responses should be well-rounded and analytical, and should not just provide a conclusion or an opinion without explaining the reason for the choice.

For full credit, you need to use the material from the week’s lectures, text, and/or discussions when responding to the questions. It is important that you incorporate the question into your response (i.e., restate the question in your introduction) and explain the legal principle(s) or concept(s) from the text that underlies your judgment.

For each question you should provide at least one reference in APA format (in-text citations and references as described in detail in the Syllabus). Each answer should be double-spaced in 12-point font, and your response to each question should be between 300 and 1,000 words in length.

Submit this assignment as a single Word document covering both cases.

Preview:

In the case of Yost v. Rieve Enterprises, Inc., W.G. Yost sold his restaurant, the Red Barn’s, equipment and assets to Evelyn Ramano on  behalf of Rieve Enterprises, Inc.  The contract also included a five-year lease of the land and building, with an option to buy them. Although the restaurant has been cited for some health violations previously, Yost assured Ramano that the…

In the case of Joc Oil USA, Inc. v. Consolidated Edison Company of New York, Joc Oil entered into a contract with an Italian oil refinery for the purchase of low-sulfur fuel oil.  The Italian refinery provided Joc Oil with a certificate, which indicated that the oil’s sulfur content…

BUSN 420 Business Law

Assignment Week 5 

Case 16.1: Specific Performance

Case 18.7: Goods or Service

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Prepare answers to the following chapter-end Critical Legal Thinking Cases from this week’s reading.

Your responses should be well-rounded and analytical, and should not just provide a conclusion or an opinion without explaining the reason for the choice.

For full credit, you need to use the material from the week’s lectures, text, and/or discussions when responding to the questions. It is important that you incorporate the question into your response (i.e., restate the question in your introduction) and explain the legal principle(s) or concept(s) from the text that underlies your judgment.

For each question, you should provide at least one reference in APA format (in-text citations and references as described in detail in the Syllabus). Each answer should be double spaced in 12-point font, and your response to each question should be between 300 and 1,000 words in length.

Submit this assignment as a single word document covering both cases.

Preview:

In the case of California and Hawaiian Sugar Company v. Sun Ship, Inc., the California and Hawaiian Sugar Company (C&H) contracted Sun Ship, Inc. (Sun Ship) to build them a vessel at the price of $25, 405,000.  C&H also gave Sun Ship 1 and ¾ years to build the ship and deliver it to them.  In addition, the contract contained a liquidated damage clause that required a payment of $17,000 per day for every day that the delivery of the…

In the case of Hector vs. Cedars Sinai Medical Center, Frances Hector underwent a heart surgery at Cedars-Sinai medical Center.  A pacemaker was installed in her heart by Dr. Eugene Kompaniez. However, the pacemaker, manufactured by American Technology, was…

BUSN 420 Business Law

Assignment Week 6 

Case 7.3: Dilution of a Trade Mark

Case 23.7: Holder in Due Course

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Prepare answers to the following cases from this week’s reading.

Your responses should be well-rounded and analytical, and should not just provide a conclusion or an opinion without explaining the reason for the choice.

For full credit, you need to use the material from the week’s lectures, text, and/or discussions when responding to the questions. It is important that you incorporate the question into your response (i.e., restate the question in your introduction) and explain the legal principle(s) or concept(s) from the text that underlies your judgment.

For each question you should provide at least one reference in APA format (in-text citations and references as described in detail in the Syllabus). Each answer should be double spaced in 12-point font, and your response to each question should be between 300 and 1,000 words in length.

Submit this assignment as a single Word document covering both cases.

Review:

In the case of V Secret Catalogue, Inc. and Victoria’s Secret Stores, Inc. v. Moseley, Victoria’s Secret–a successful international retailer of women’s beauty, clothing, and lingerie products–filed a case against Victor and Cathy Moseley for using the name Victor’s Little Secret and Victor’s Secret for its store, which sells racy…

In the case of Federal Credit Union v. Royal Insurance, Royal Insurance Company issued a draft amounting to $2,000, payable through the Morgan Trust Company. In particular, the draft was made payable to Gary E. Terrell as part of the settlement to his claim in an insurance policy for the damage caused by a fire in the  premises in Kansas City, Missouri. However,…

BUSN 420 Business Law

Assignment Week 7 

Case 29.1: Agency

Case 37.1: Piercing the Corporate Veil

https://www.hiqualitytutorials.com/product/busn420-assignment-week-7/

Prepare answers to the following cases from this week’s reading.

Your responses should be well-rounded and analytical, and should not just provide a conclusion or an opinion without explaining the reason for the choice.

For full credit, you need to use the material from the week’s lectures, text, and/or discussions when responding to the questions. It is important that you incorporate the question into your response (i.e., restate the question in your introduction) and explain the legal principle(s) or concept(s) from the text that underlies your judgment.

For each question, you should provide at least one reference in APA format (in-text citations and references as described in detail in the Syllabus. Each answer should be double spaced in 12-point font, and your response to each question should be between 300 and 1,000 words in length.

Submit this assignment as a single Word document covering both cases.

Preview:

In the case of Ginn v Renaldo, Inc, the plaintiff Ginn was silly drunk at a nightclub owned by Renaldo, Inc.  As a result, the nightclub manager, along with some patrons, asked Ginn to leave the premises.  The police was also called.  However, upon…

In the case of Geringer v. Wildhorn Ranch, Inc., the family of two guests who drowned at the Wildhorn Ranch Resort sued the company for damages. M. R. Watters was the majority shareholder of Wildhorn among other businesses.  He ran these businesses from his home in Rocky Ford, Colorado, and…

BUSN 420 Business Law

Quiz Week 4 

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(TCO 4) In selling paving stones to Yard & Garden Supply, Trey tells Yard & Garden’s buying representative that the stones are soft as carpet. This is _____. (Points : 2)

Unconscionable

Fraud

Mistake

Puffery

(TCO 4) Ilsa and Jiffy Loan Company enter into an oral contract under which Ilsa agrees to pay Kyle’s debt if he does not. Ilsa does not get any personal benefit from the agreement. This contract is enforceable by _____. (Points : 2)
any party

Jiffy only

Jiffy or Kyle

None of the parties

(TCO 4) Cody and Debora enter into an oral contract under which Cody agrees to work on Debora’s ranch for not less than ten days. This contract is enforceable by _____. (Points : 2)

Cody only

Debora only

Either party
Neither party

(TCO 4) Little’s Video Store and Major TV Sales Corporation enter into an oral contract for Major’s sale to Little’s of eighteen DVD players for $80 each. After Little’s takes possession of the players, but before it makes payment, this contract is _____ (Points : 2)

Enforceable only if it is in writing

Enforceable only if it is oral

Enforceable whether it is oral or in writing

Not enforceable

(TCO 4) Dale files a suit against Eve, alleging that she used fraud to induce him to enter into a contract with her. Proof of an injury is required _____ (Points : 2)

To recover damages

To rescind the contract

To undo Eve’s influence

Under no circumstances

(TCO 4)  Which of the following is true in the event that an assignee does not provide a notice of assignment to the obligor? (Points : 2)

The assignee’s only course of action is to sue the obligee for damages.

The assignee cannot sue the assignor for damages.

The obligor’s only recourse is to sue the assignee for damages.

The assignee cannot sue the obligor to recover payment.

(TCO 4) Mikayla enters into a contract with Logan to provide surface material for Mikayla’s tennis courts by April 1 for a tournament to begin May 1. The contract specifies an amount to be paid if the contract is breached. This is a liquidated damages clause if the amount is _____ (Points : 2)

An excessive estimate of the loss on a breach.
A reasonable estimate of the loss on a breach.

Designed to penalize the breaching party.

Intended to quickly provide cash to the non-breaching party.
(TCO 4) Handy Hardware Store agrees to hire Ilsa for one year at a salary of $500 per week. When Handy cancels the contract, Ilsa spends $100 to obtain a similar job that pays $450 per week for a year. Ilsa is entitled to recover _____ (Points : 2)

The amount of the wages that Handy promised only.
The difference between the wages at the two jobs only.

The difference between the wages at the two jobs plus $100.

$100 only.

(TCO 4) Damages that will be paid upon a breach of contract, but that are established in advance are known as ______. (Points : 2)

Capture

Replevy

Installment damages

Liquidated damages
(TCO 4) Klint Microsystems, a microprocessor manufacturer, was contracted by Zeitar Studios to manufacture specially designed microchips to be used in an audio engineering process. Zeitar was to pay Klint $300,000 as per the contract. Klint decided to redesign their existing microchips and make them suitable for Zeitar. While the finished microchips were being shipped via a carrier, Klint was informed of Zeitar’s insolvency. Klint cancelled the shipment before it was delivered. Klint then resold the chips to another Studio where they had to settle for $150,000, as the chips were now only suitable for specific audio engineering processes.
What right to remedy did Klint exercise when selling the microchips to another studio? (Points : 2)

Right to claim lost profits

Right to cover

Right to dispose of goods

Right to recover damages

BUSN 420 Business Law

Quiz Week 5 

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(TCO 5) Giles and Hubie enter into a sales contract. With respect to the specific contractual provisions set out in the UCC, Giles and Hubie may (Points : 2)

Agree to different terms only to a reasonable extent.

Agree to different terms unless they get caught.

Agree to whatever terms they wish.

Not agree to different terms.

(TCO 5) Which of the following statements is true of discharge of contracts? (Points : 2)

Anticipatory breach discharges the breaching party’s obligations to the contract.

Substantial performance is sufficient to discharge a contract.

Tender of performance discharges a party’s contractual obligations.

Tender is a conditional offer by contracting party to perform his or her obligations under the contract.

(TCO 5) Over the course of a year, Retail Marketers, Inc., sells goods from its inventory and one of its warehouses. In exchange, Retail receives checks and other items that substitute for cash, which Retail uses to repay a loan from Savings Bank. Article 2 of the UCC governs (Points : 2)

the checks.

the payment of the loan.

the sale of the buildings.

the sale of the goods.

(TCO 5) Variety Goods, Inc., and Worldly Sales Corporation enter into a contract that does not specify the payment terms. Payment may be made in (Points : 2)

Any commercially acceptable means except cash.

Cash only.

Cash or any commercially acceptable substitute.

Cash or check only.

(TCO 5) Equipt Rental Corporation and Family Custodial Service, Inc., are parties to an oral agreement for a lease of goods with payments in excess of $10,000. They may satisfy the Statute of Frauds by (Points : 2)

Mutually agreeing not to commit fraud.

Restating the terms in a phone call.

Setting out the terms in an e-mail.

Shaking hands on the deal.

(TCO 6) Pure Water Company is subject to a decision by the Environmental Protection Agency. Pure Water appeals the decision, arguing that it is arbitrary and capricious. This could mean that the decision (Points : 2)

Changed the agency’s prior policy without justification.

Followed a consideration of all relevant factors.

Was accompanied by a rational explanation.

Was plainly warranted by the evidence.

(TCO 6) Seafood Restaurant Company pays income and other taxes collected by the Internal Revenue Service (IRS). Like other federal administrative agencies, the IRS was created by (Points : 2)

Congress, through enabling legislation.

The courts, through the adjudicatory process.

The U.S. Constitution, through the First Amendment.

The U.S. Department of the Treasury, through a final order.

(TCO 6) After notice-and-comment rulemaking, the U.S. Bureau of Land Management (BLM) issues a new rule and applies it to Clearcut Timber Company. Clearcut appeals the application to a federal court. The court will most likely defer to the BLM’s interpretation of (Points : 2)

The facts and the law.

The agency’s authority.

Procedural requirements.

The Constitution.

(TCO 5) Grill deals in the repair and sale of new and used clocks. West brought a clock to Grill to be repaired. One of Grill’s clerks mistakenly sold West’s clock to Hone, another customer. Under the Sales Article of the UCC, will West win a suit against Hone for the return of the clock? (Points : 2)

No, because the clerk was not aware that the clock belonged to West.

No, because Grill is a merchant to whom goods had been entrusted.

Yes, because Grill could not convey good title to the clock.

Yes, because the clerk was negligent in selling the clock.

(TCO 5) Under the Sales Article of the UCC, which of the following statements is correct regarding risk of loss and title to the goods under a sale or return contract? (Points : 2)

Title and risk of loss are shared equally between the buyer and the seller.

Title remains with the seller until the buyer approves or accepts the goods, but risk of loss passes to the buyer immediately following delivery of the goods to the buyer.

Title and risk of loss remain with the seller until the buyer pays for the goods.

Title and risk of loss rest with the buyer until the goods are returned to the seller.

BUSN 420 Business Law

Quiz Week 6 

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(TCO 7) Ric designs a new computer hard drive, which he names Sci Phi. He also writes the operating manual to be included with each final product. Ric could obtain patent protection for the _____. (Points : 2)

Hard drive

“Newness” of the hard drive

Name

Operating manual

(TCO 7) Mace copies Nick’s book, Off the Beaten Path, in its entirety and sells it to Parkland Books, Inc., without Nick’s permission. Parkland publishes it under Mace’s name. This is _____. (Points : 2)

Copyright infringement

Fair use
Licensing

Protected expression

(TCO 7) Canada and the United States are signatories of the Berne Convention. Doug, a citizen of Canada, publishes a book first in Canada and then in the United States. Doug’s copyright must be recognized by _____. (Points : 2)

All of the signatories of the Berne Convention

Canada and the United States only

Canada only

None of the signatories of the Berne Convention

(TCO 7) Standard Corporation cannot claim a trademark in the phrase “Quality Is Standard” if the phrase _____ (Points : 2)

Has a secondary meaning

Is descriptive

Is generic

Means nothing

(TCO 8) Taylor digitally copies business software without the authorization of the owners and sells the copies to others via the Internet. Under federal law, this is _____ (Points : 2)

A crime only if the copies are not the same as, or close to, the original.

A crime only if Taylor and the buyers are in different jurisdictions.

Not a crime.

A crime.

(TCO 8) Travis sends Una a link to a purported e-birthday card that when clicked on downloads software to her computer to record her keystrokes and send the data to Travis. He uses the data to obtain her personal information and access her financial resources. This is _____. (Points : 2)

Identity theft
Birthday bashing

Regifting

Windows shopping

(TCO 8) Boris programs software to prompt a computer to continually crash and reboot. Boris’s goal is to install this program on various companies’ computer systems without the companies’ knowledge. The program can reproduce itself, but must be attached to a host file to travel from one computer network to another. This program is _____. (Points : 2)

A hacker

A bot

A virus

A worm

(TCO 8) Via the Internet, Rocky sabotages the computer system of Quik Chik’n Company, a food manufacturer, with the purpose of altering the levels of ingredients of the company’s products so that consumers of the food become ill. Rocky is _____. (Points : 2)

A cyberterrorist

A botnet

A virus

A worm

(TCO 8) Drew bought a computer for personal use from Hale Corp. for $3,000. Drew paid $2,000 in cash and signed a security agreement for the balance. Hale properly filed the security agreement. Drew defaulted in paying the balance of the purchase price. Hale asked Drew to pay the balance. When Drew refused, Hale peacefully repossessed the computer.
Under the UCC Secured Transactions Article, which of the following remedies will Hale have? (Points : 2)

Obtain a deficiency judgment against Drew for the amount owed.

Sell the computer and retain any surplus over the amount owed.

Retain the computer over Drew’s objection.
Sell the computer without notifying Drew.
(TCO 8) Under the UCC Secured Transactions Article, which of the following actions will best perfect a security interest in a negotiable instrument against any other party? (Points : 2)

Filing a security agreement.
Taking possession of the instrument.
Perfecting by attachment.

Obtaining a duly executed financing statement.

BUSN 420 Business Law

Discussions Week 1-7 All Students Posts 445 Pages 

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May I Call You? And A Sobering Lawsuit Discussions Week 1 All Students 67 Posts Pages 

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May I Call You? – 37 Pages 

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Congress enacted a restriction on telemarketing, known as the National Do-Not-Call list, which made it illegal for telemarketers to place unsolicited commercial calls to consumers. A consumer may register up to three residential phone numbers for the list. The Act does not prohibit calls from political campaigns and others seeking support for political candidates, nor calls from certain charities seeking donations. The Act provides for significant financial penalties imposed by the Federal Communications Commission on any telemarketer or company that violates the law. Some telemarketer organizations claim that the law is unconstitutional.

Congress also enacted the CAN SPAM Act, prohibiting certain kinds of spam e-mail nationwide. The CAN SPAM Act also states that, “This act supersedes any statute, regulation or rule of a state that expressly regulates the use of electronic mail to send commercial messages, except to the extent that the state rule prohibits deception in any portion of a commercial electronic mail message or information attached thereto.” Subsequently, California enacted a new anti-SPAM law that applies to spam e-mail either sent from a server in California or sent to a California e-mail address.

What constitutional law issues do these statutes raise, and who should prevail? How, specifically, should the courts resolve these constitutional issues according to the current state of the law? What substantial government interest is Congress attempting to protect with the National DNC List? Where is that found in U.S. Constitution? What other strategies could the government employ to reach the same result?

Where in the US Constitution is “privacy” found as a right? Where in the Bill of Rights does it state that US citizens have a right to privacy? Which of the first 10 amendments is it contained in? Is there anywhere in the Constitution where it says, “right to privacy”? Another point to ponder is, according to the CAN-SPAM law, email or telemarketing by political action groups or candidates okay, but the same activities by for-profit businesses illegal in many instances?…

A Sobering Lawsuit – 30 Pages 

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Fun Products, Inc. is in the business of designing computer games. At the end of a particularly successful year, company management decided to throw a celebration party at which it would announce large bonuses for the entire workforce. The party was held in the banquet room of a local hotel, owned by the Milton Hotel chain, and was catered by the hotel, including an open bar for all guests. Employees were also invited to bring a spouse or significant other. A good time was had by all, but too much fun was had by a few, including Larry Lush, and his wife, Linda. Larry and Linda had attended other company functions at which alcohol was served, and had a reputation for drinking a bit too much.

The company offered a free taxi ride home to any employee who had a bit too much to drink, but Larry and Linda declined the free cab ride, and attempted to drive home in their own car. En route, Larry, who was driving, struck another vehicle, injuring Veronica, the driver of that car. Larry has limited assets, and his insurance had just expired, as well as his driver’s license. Veronica wants to sue Fun Products, Inc. and the Milton Hotel chain for her injuries, which include medical bills, lost wages, property repair costs (her car), and pain and suffering. She also wants to obtain a court order prohibiting Fun Products, Inc. from ever serving alcohol at a company function again.

Without trying to decide who will win if Veronica sues Fun Products, Inc. and the Milton Hotel chain, analyze the following. Who are the parties to this lawsuit, and what are they called (trial level and appeal level)? What types of law will Veronica’s lawsuit involve? What type of remedies is she seeking, and are these remedies (or some of them) appropriate to this type of case? What legal sources will the court consider in deciding if Fun Products, Inc. and the Milton Hotel chain (or either of them) are liable for Veronica’s injuries? What types of liability does Larry face as a result of this scenario? What burden of proof will apply? What issues in this dispute would a jury decide (if the case went to trial), and what issues would a judge decide? What if the person(s) with liability here doesn’t have the money to pay Veronica’s damages?

First, why don’t we try to synthesize this down a little?  Everyone – In Veronica’s case, what types of “remedies” will she seek? (For example: “legal” vs. “equitable” remedies.) What are the different requirements for equitable relief?

What about civil and criminal law? What crime(s) occurred here, and what civil liabilities are there? Do state statutes have any role here?  There is a common law rule on liability for voluntary intoxication. How statutes have changed that rule? What are some more names of the types of equitable relief? What types of equitable remedies could Veronica pursue here?…

Wendy Wanderer and Bad Bar-B-Q Discussions Week 2 All Students Posts 60 Pages 

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Wendy Wanderer – 31 Pages 

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Derek Dirt operates a home-based business selling herbs and supplements. He frequently receives new samples and is constantly discarding unwanted samples, as well as packaging, old files, and other junk on a back yard trash heap that accumulates between trash pick-ups. Little Wendy Wanderer, age five, who lives next door, sees what, to her, promises to be a nice toy among Derek’s trash. Upon coming closer to the trash heap, Wendy is bitten by a rat. She screams and then faints. Her nearby mother calls an ambulance, which, on the way to the scene, jumps a curb and strikes Paul Pedestrian, seriously injuring him. Wendy requires a series of rabies shots. Except for some bad dreams, Wendy apparently recovers. Derek and Wendy are both citizens and residents of Ohio. Paul, who is a citizen and resident of Texas, was visiting friends in Ohio when the ambulance struck him.

  • Does Wendy have a solid basis for suing Derek for her injuries?
  • Who might be liable to Paul Pedestrian?
  • What types of damages could Wendy recover?
  • If Wendy sues Derek, in what state(s) could she sue, and in what court (federal or state) could she properly file the suit?
  • If Paul sues Derek, in what state(s) could he sue, and in what court (federal or state) could he properly file the suit?…

Bad Bar-B-Q – 29 Pages 

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Over many years, Jake and Jo Bob built up a barbeque ribs business, Hambones, Inc., which caters picnics and parties and sells ribs and corn at county fairs. They have several creditors, including Sauce Supply and First State Bank.

Two years ago, in reliance on an audit of the company’s books prepared by Hambones, Inc.’s accounting firm, Able & Henderson, First State Bank made a loan to Hambones, Inc. It now appears that the audit failed to disclose financial improprieties in Hambones, Inc.’s maintenance of its books: Certain liabilities were being carried off the books, causing Hambones, Inc.’s bottom line to appear more favorable than it really was. The decision to carry the liabilities off the books was made by Jake and Jo Bob, but there is now an argument as to whether a more careful audit would have uncovered the liabilities. Jake told the accounting firm that the audit was being done at the bank’s request in order for the loan to be approved, and that it was really important that the company receive a clean bill of health from the audit. Able & Henderson didn’t want to lose Hambones, Inc. as a client.

Sauce Supply also knew that Hambones, Inc. had been audited and heard from Jake and Jo Bob that the auditors were very satisfied with Hambones, Inc.’s financial position. Jake gave Sauce Supply’s president, Sandy Saucy, a copy of the audit report. Able & Henderson had no knowledge of these statements, or that Sauce Supply had received a copy of the audit report.

  • What standard of care applies to Able & Henderson’s accounting work for Hambones, Inc.?
  • Does Able & Henderson face any negligence liability to First State Bank or Sauce Supply in a state that has adopted the Ultramares rule?
  • In a state that has adopted the Restatement rule?
  • In a state that has adopted the Reasonably Foreseeable User rule?…

BUSN 420 Business Law

Fine Dining and Distant Deal Making Discussions Week 3 All Students Posts 62 Pages 

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Fine Dining – 31 Pages 

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You enter an expensive restaurant and are seated by the hostess. A waiter brings you plates, knives, forks, napkins, and other set-ups for dinner, including bread and butter and ice water, all of which you partly consume. When you read the menu, you realize that the prices far exceed what you can afford. You then make it clear that you do not intend to order a meal.

  • What type of contract (obligation) do you have, if any?
  • What factors and contractual elements will you consider in assessing whether a contract was formed?
  • What if, instead, you read the menu and place an order, but say nothing about agreement to pay. Is there a contract?

Also, assume there is fine print at the bottom of the menu that states: 20% gratuity charged. $20.00 cover charge per table.

  • If you ordered dinner but didn’t see the fine print, what is the effect?
  • Does this change in the facts alter your conclusion regarding the scenario above? Why or why not?
  • What key factors and elements are at play?

In our fact pattern here, what is the offer? When is the acceptance? What is the consideration? Is the menu an offer, or an invitation to deal, i.e., like an advertisement?…

Distant Deal Making – 31 Pages 

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Maria, who lives in Seattle, sent Koji a letter via first class mail, stating, “Koji, I think your 2003 Ford SUV is worth $20,000. I will give you $20,000 cash for it.” Koji receives the letter, but believes his car isn’t worth more than $14,000 due to the manner in which he drives the vehicle and due to the weather in Florida where he resides.

Maria’s letter was mailed on Monday. When she didn’t hear from Koji by Wednesday, she sent an e-mail on Wednesday afternoon with the same message, and asked whether he received her letter. Koji received Maria’s letter on Wednesday, but did not receive the e-mail until Friday afternoon, due to server problems. In the meantime, Koji sent a fax late on Friday stating, “Are you sure you still want to buy my car for $20,000? I accept your offer.”

On Saturday, after some research, Maria decided the Ford SUV was not worth what she thought. To make certain Koji would know this fact, she sent Koji a letter via Federal Express stating, “Your SUV is not really worth $20,000.” On Monday morning, Koji received the Federal Express letter from Maria. Also on Monday morning, an hour later, Maria received Koji’s fax at work.

  • Has a contract been formed here? Why or why not?
  • Identify and explain the stages of contract formation as they occurred in this scenario and analyze them in this context from a contract formation standpoint.

When does the acceptance become valid? Does it mean we have a contract here? Let’s assume that the mailbox rule does apply to emails. Does Maria’s email have any substantive effect on whether a contract was formed? Was her email an offer?…

BUSN 420 Business Law

Dream House and Nightmare House Discussions Week 4 All Students Posts 72 Pages 

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Dream House – 42 Pages 

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  • In a contract dated June 15, 2006, Bobby agrees to build your dream house on a lot you own near Naples, Florida. The contract price is $500,000. The house is to be completed and ready for occupancy by March 1, 2007. Bobby is paid a progress payment of $100,000, for labor and materials, in October, 2006. In November, 2006, a hurricane strikes the Naples area and floods the work site. Bobby claims he had completed 50% of the job before the hurricane struck. Thereafter, Bobby performs no further work and walks off the job.
  • On January 1, 2007, you declare Bobby to be in breach of contract and sign a contract with Sheila to complete the job for $350,000.
    • Was your contract with Bobby a unilateral or bilateral contract; if unilateral, at what time did Bobby substantially undertake performance?
    • What remedies and/or damages are available to you and to Bobby?
    • Since Sheila’s cost to complete the house is more than half the cost, who sees a loss from the hurricane?

Can Bobby claim rescission of contract?  Is this an example of Bobby claiming objective or subjective impossibility? Why is this distinction important?…

Nightmare House – 30 Pages

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  • After months of combing the real estate ads for a vacation property, you find an ad for a lovely Victorian cottage in a scenic small town about three hours away. After viewing the house, you decide it is the perfect weekend place; and amazingly, the price is in your budget. In fact, you’re amazed that the house is so affordable and has been on the market for a while. You sign a real estate purchase contract to buy the house from the current owners, who have lived there for over 20 years. You make the sale contingent upon an inspection of the property by a licensed construction engineer. The engineer inspects the house over the course of two days and gives the house a clean bill of health. You proceed to closing, and buy the house.
  • After moving in, you learn for the first time from the neighbors that many actively claim this house is possessed by poltergeists, which the prior residents of the house had reportedly seen. In fact, the house is listed in a national guide to haunted houses, and had previously been included in a walking tour of the town as the haunted house. A newspaper article once described it as a charming Victorian (with ghost). You now jump at every creak and noise the house makes. You want the seller of the house to take it back for failing to inform you that the house is haunted.
    • Do you have a good basis for rescinding the sale?
    • What duties will you claim were owed to you by the seller?
    • What responsibilities did you have as a buyer that may affect your ability to recover?
    • What damages can you claim stem from the alleged failure to disclose by the seller?

It seems that a latent defect is still a “provable” defect. How do you prove the existence of a ghost in order to show that the seller failed to disclosure a latent defect?  Wouldn’t reasonable due diligence on the buyer’s part have led to their discovery that the house was “haunted”? Aren’t there some limits to what a buyer can claim in order to get out of a contract after the sale is completed?…

BUSN 420 Business Law

Battle of the Forms and Want to Lose Weight? Discussions Week 5 All Students Posts 60 Pages 

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Battle of the Forms – 32 Pages 

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Nellie Nimble, purchasing manager for Fast Color Paint Company, mailed a purchase order to AB Can Corporation for 100,000 cans of high-gloss white paint at $15 per gallon wholesale. The order form mailed by Nellie contained 17 printed conditions on its reverse side. The third condition stated: “Buyer may reject any defective goods within 30 days of delivery.”

The order form also stated that payment would be made as follows: 50% upon receipt of the goods, and 50% within 30 days of the receipt of goods. AB Can (the seller) sent a signed letter confirming the order, but the letter stated: “Any objection to goods shipped must be in writing within five (5) days of receipt of goods.” AB Can’s letter specified the same payment schedule as Fast Color’s purchase order, but stated, in addition, “Interest at the rate of 12% per year will be charged on late payments.” Fast Color’s purchase order said nothing about interest on late payments.

AB Can delivered the cans (100,000) and Fast Color sought to object to 10,000 of the cans as defective on the seventh day after receipt of the cans. Fast Color paid 50% of the order’s purchase price upon delivery but paid the balance (minus the 10,000 cans it rejected) 40 days after delivery.

  • Did Fast Color have the right to reject 10,000 cans, seven days after delivery?
  • Does Fast Color owe interest on the portion of its payment that was not paid within 30 days of receipt of the paint order?
  • Did the provision for interest on late payments materially alter the contract?
  • What terms in AB Can’s purchase confirmation are additional terms, not mentioned at all in Fast Color’s order? (Explain your rationale, and also state whether you believe the outcome is fair.)

What terms in AB Can’s purchase confirmation conflict with Fast Paint’s order?  Why do merchants operate under the UCC rules for contracts rather than the common law (i.e., mirror image) rules for contracts?  Would it matter what the interest rate is? For example, if the interest for late payments was, say, 10%, is that reasonable? What about 20%?…

Want to Lose Weight? – 28 Pages 

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You’ve been hired as the marketing manager for a company that sells weight loss products to the public. The Federal Trade Commission (FTC) recently brought an enforcement action against the company for violating the FTC Act’s prohibition of unfair and deceptive trade practices, based on some of the company’s advertising. The company wants to challenge the FTC’s ruling by appealing to the courts. The FTC’s ruling was based on the company’s ads for herbal teas (claiming they block absorption of fat and will lead to substantial weight loss) and the company’s ad for a popular supplement (claiming they will result in the loss of two pounds or more each week without dieting or exercising).

  • What is the basis of the FTC’s power to regulate ads for diet products? What standards has the FTC established to determine if a diet product claim is unfair and deceptive?
  • If the company tries to challenge the FTC’s ruling by appealing to a court, what test will the appellate court use to determine if the FTC’s ruling was justified? How do you think the court should decide this case?
  • If the company wants to comply with the FTC’s regulations on diet product claims, what language would it need to change in the ads mentioned above?

Why does Congress create, through enabling legislation, all these various agencies like the SEC, the FTC, the FCC, the FDA, etc.?  What is the central purpose behind “enabling legislation”?…

BUSN 420 Business Law

TraderRon.com and Modern Problems Discussions Week 6 All Students Posts 60 Pages 

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TraderRon.com – 28 Pages 

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Dana and Ronnie operate a Web-based business, TraderRon.com, an Internet swap site that uses a Dutch auction system pioneered by Priceline.com. TraderRon.com allows customers to make offers to other customers to swap such items as their unused frequent flyer miles for other customers’ unwanted merchandise, including DVDs, music CDs, used books, and any other merchandise customers might want to trade. No sales involving payment of money are made on the site. Some of the merchandise that has been offered on the site and swapped consists of bootleg or pirated merchandise, as well as designer knockoffs. All of TraderRon.com’s income derives from advertising.

TraderRon’s website and advertising use a black and grey symbol to represent its swapping service. It has used this symbol consistently and registered it with the U.S. Patent and Trademark Office. The symbol is very similar to the Nike swoosh symbol, except it fades from black to grey from left to right. TraderRon.com uses a multimedia presentation to explain its operation to users. The multimedia presentation was created by a friend of Dana’s as his senior portfolio project at school, where he was majoring in website design and multimedia. Dana paid him with a free trip to the Caribbean, which she had won in a contest. No copyright was registered in connection with the multimedia presentation.

TraderRon.com sends a weekly e-mail update to customers who have registered on the site. The e-mail is sent via an e-mail address Ronnie established at Yahoo.com. TraderRon.com’s customers are located throughout the U.S. and some are overseas.

  • What intellectual property and Internet law issues are raised by TraderRon.com’s business model?
  • What sort of liability is the business risking?
  • What legal implications could arise from using the Yahoo.com e-mail account for swap.com’s mass e-mailings?

Is there a “fair use” exemption for the Dutch Auction’s use of the multimedia presentation? Why or why not?  So, based on your understanding what about Yahoo?  Does Yahoo have a potential claim of copyright or trademark infringement for TraderRon’s use of their email addresses?  Can a “dutch auction,” as a form of a business process, be patented?…

Modern Problems – 32 Pages

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Joel, a former employee of NetworkBank, an online bank, decided to exact some revenge. Though his official access to the bank’s records was removed, he was able to hack into the bank’s database of customer information, obtaining passwords associated with customer debit cards. Using debit card numbers and passwords, he purchased merchandise online from various venders, including online auction sites, such as eBay. Among the bank customers whose accounts he raided was Elle, a consumer, and Pet Products, Inc., a business that sells pet products online. Joel took $85 from Elle’s checking account the first time, which she didn’t notice until a week later, at which point she notified NetworkBank. Joel took $350 from Elle’s account a few weeks later, which she noticed the next day and immediately reported to the bank. Joel accessed Pet Products, Inc., just once, for $3,450, which the company noticed the next day and reported to NetworkBank.

Joel also wanted revenge against a former NetworkBank employee, Gwen, who he believed to be responsible for his firing. She left the bank and was working elsewhere. Using Internet search engines, he found postings that Gwen had made to chat rooms on various Internet sites. Using this information, Joel contacted PrivateI.com, an Internet based information and investigation service. He paid the fee required for an investigation on Gwen, and obtained her home and work addresses and telephone numbers. PrivateI.com did not inquire why Joel wanted the information about Gwen. Joel followed Gwen as she exited her workplace one night and attacked her, injuring her severely. Joel is now under arrest.

  • What remedies do Elle and Pet Products, Inc. have against NetworkBank for the unauthorized fund transfers? What law applies?
  • What is the extent of liability for the consumers in this scenario? May Gwen hold PrivateI.com liable for her injuries? Why or why not?
  • What preventative actions should the businesses mentioned in this scenario have undertaken to prevent what occurred here?

Starting with Joel, what specific crimes did he commit? Who did he commit them against? What are the limits to consumer liability for unauthorized fund transfers? Why are these limits different from business accounts? Regarding Private I, why would they be in trouble if they only gave out information that was otherwise publicly available? Does PrivateI have a duty to determine how people will use the information they provide? For example, should PrivateI be liable for someone else using their supplied information for nefarious purposes?…

BUSN 420 Business Law

Rocking the Boat and A Sweet Business Idea Discussions Week 7 All Students Posts 64 Pages

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Rocking the Boat – 32 Pages 

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Duchess Cruise Lines, Inc. dry-docked a ship, intending to have maintenance done. Melinda, the ship’s supply manager, decided to purchase some needed supplies from Marine Equipment Services, Inc., on the ship’s behalf while it was in dry-dock. She charged the supplies to her personal credit card. The supplies were delivered and used, but the cruise line refused to reimburse Melinda for the cost of the supplies because she hadn’t obtained the required approvals before making the purchase. Melinda takes the position that doing so would have delayed the purchase of the materials, because the person who normally grants approvals was on leave for several weeks. The cruise line takes the position that someone else would have handled the matter promptly if Melinda had simply followed company procedure. Melinda is threatening to sue to obtain reimbursement.

Meanwhile, Steve, a member of the ship’s maintenance crew, on shore leave for a day, came back to the ship late, after drinking to excess. Before retiring for the night, Steve turned several wheels on the dry-dock’s wall, which resulted in a flooding of the tanks on one side of the dry-dock. The ship listed, slid off the blocks holding it up, then crashed against the dry-dock wall, ruining much of the dry-dock. The dry-dock owner is suing Duchess Cruise Lines, Inc., for reimbursement of the damages to the dry-dock.

Paul was hired by Duchess Cruise Lines, Inc. as an independent project manager to coordinate the dry-dock maintenance project. He was not an employee of Duchess Cruise Lines, Inc. and was not authorized to make any purchases or enter into any contracts on the cruise line’s behalf. All of his proposals were to be submitted to a management team for approval. After Steve caused the ship to slide off the blocks and crash into the dry-dock wall, Paul met on the site with a crane company owner, Al, telling Al that he was Duchess’ project manager and requesting a bid from Al’s company to move the ship to a new dry-dock facility for repair. At the time, Paul was wearing a Duchess Cruise Lines, Inc. jacket and directing various employees on the dock. Al provided a bid, Paul accepted it, and Paul signed a services contract with Al’s company, signing his name followed by the words, “Project Manager, Duchess Cruise Lines, Inc.” Duchess Cruise Lines, Inc. did not approve the hiring of Al’s company and refuses to pay Al’s company on the contract. Paul claims he has no personal liability because he was acting on Duchess’ behalf in an emergency.

  • What agency law issues does this scenario raise?
  • How should the courts decide these disputes? Why?
  • How could all of this have been handled to prevent some of these issues?

Regarding Melinda, she is a supply manager for the ship. Doesn’t she have implied authority? What about the fact that the supplies purchased by Melinda were used? What substantive effect does this have for agency purposes?  It is true that Paul had “apparent authority” to bind Duchess to Al’s company on the repair contract. What exactly is “apparent authority”?…

A Sweet Business Idea – 32 Pages 

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Dan and Carla met as employees at a candy company and later married. Carla went on to study accounting and Dan earned a business degree. After working for various businesses and raising $10,000 to open their own business one day, Dan and Carla have settled on opening a business that makes custom centerpieces that look like floral arrangements but are made entirely of chocolates, marzipan, and other candy. They want to call their business “Edible Expressions,” and they have prepared a business plan. They are now faced with the decision of what form of business organization makes the most sense: a sole proprietorship, a partnership of some sort, or incorporating in some form.

Dan and Carla both plan to do design work in the business, while hiring confectionery employees to prepare and assemble the company’s products. Carla will keep the books, and Dan will do the hiring. Carla and Dan are considering whether it makes more sense for them to co-own the business, or if one should be the owner and the other an employee. They anticipate hiring just one other employee in the beginning, and grow as demand requires. Carla’s brother and sister-in-law also want to invest in the business, but do not want to be involved in its operations. Dan and Carla also want to give their daughter, Alissa, age 12, some ownership in the business at some point.

Dan and Carla want to establish their business with a minimum of paperwork and expense, but they also want to avoid high taxation of their business profits. They want to run the business jointly, without the need for a Board of Directors or other advisory group, though they don’t mind the idea of having an annual event to honor family members who have invested in their business.

Consider the types of business organizations in this week’s reading (sole proprietorship, general partnership, limited partnership, LLP, and corporation, LLC).

  • What are the pros and cons of each as they apply to Dan and Carla’s business goals?
  • If Dan and Carla were operating in your state, what form of business organization appears most desirable? Why?

Based on your research, and the needs of Dan and Carla, both NOW and in the FUTURE, which types of entity do you think addresses all of their ongoing issues?  Do not forget to think about the ongoing operational issues for each type of entity such as an LLP, LLC, or a C corporation. What would some of those be?  What other types of business entities are available for use by Dan and Carla?  How is an LLP taxed for federal income tax purposes? Does this tax scheme lend itself to investing profits back in the business for capital expenditures or other types of business growth?…

BUSN 420 Business Law

Final Exam 

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(TCO 1) As an assistant in the legal department of a major corporation, your supervisor has asked you to do some research on how various laws may be applied in an upcoming case. Your department needs to coordinate with outside counsel and wants to be up to speed on how the law works.

Explain the sources of law in the American legal system. Is our civil law system more or less advantageous than the common law system? Why is it important to understand all sources of law and where to find them? Explain your answer with examples in a business context. (Points : 20)

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Over the years, the United States and adoption of the English common law, the lawmakers of this country have developed a substantial…

BUSN 420 Business Law

(TCO 2) Given the current economic climate nationwide and locally, the state of Delmarva would like to impose a higher tax on out-of-state companies doing business in the state than it imposes on in-state companies. The reason behind the legislature’s enactment of this law is to protect the local firms from out-of-state competition because they are losing local business, which is affecting the state’s economy.

Is this law legal, or is it a violation of equal protection for a state to impose? What legal standards could the court apply in evaluating the constitutionality of a law and which would apply in this instance? Explain. (Points : 20)

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I don’t think this is a legal law. The laws of a state must treat an individual in the same manner as others in similar conditions and…

BUSN 420 Business Law

(TCO 3) Jane lives in Florida and owns a small fresh fruit market. Robert lives in Georgia on a peach farm. For years, Jane and Robert have worked together; Jane buying peaches from Robert and Robert selling peaches to Jane for resale. Jane travels across the border to Georgia to buy her peaches because she knows that Robert has the best peaches in Georgia and her customers love them and come from miles to buy them from her. Jane contracted with Robert to buy 4 bushels of peaches and traveled to Georgia, as usual, to pick them up. Unfortunately, before Jane arrived, Robert sold her peaches to Xavier, a gentleman from North Carolina who was passing through and insisted on buying every last peach available. Jane wants to sue Robert for breach of contract.

Can Jane sue Robert? What claims could she raise and in what court would she raise them? Explain your answer from a jurisdictional standpoint using the above scenario. What types of jurisdiction are at play? (Points : 20)

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Jane can sue Robert for breach of contract if Robert is contractually obligated to sell the four bushels of peaches to Jane and is unable…

 

BUSN 420 Business Law

(TCO 4) Sandy mails a letter back to Andrea that she has signed; the letter makes reference to a car Andrea has for sale and Andrea’s desired price. When Andrea later delivers the car to Sandy, Sandy returns the car, claiming she does not want the car and that they did not have a contract, so she is not bound to keep the car. Andrea, however, claims they do have a contract and wants to enforce said contract for the price of the car. What standard would the court use to determine whether there is a contract between the parties for the sale of the car? (Points : 20)

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Many contracts are now completed by using e-mail. E-mail contracts are enforceable as long as they meet the requirements necessary to form a…

(TCO 5) Joe makes an offer to sell an order of produce to Bud for $550. It is a great deal and Bud jumps at the chance to accept Joe’s offer. Before Bud can get the money together, Joe sells the produce to Sal because he needs the money right away for a down payment on a tractor. Is the contract between Joe and Bud enforceable under the UCC? If Joe and Bud have an e-mail exchange that documents their agreement, does this change your answer? Why or why not? (Points : 20)

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Yes, because Under Article 2 of the UCC, a contract is usually enforceable even if the terms is omitted the price. Also, an enforceable agreement…

BUSN 420 Business Law

(TCO 6) Choose an administrative agency you have learned about or encountered in the business world. Using this agency, create a scenario and walk the agency through the rulemaking process to promulgate legislation that pertains to your business sector of interest. (Points : 20)

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I don’t know a lot about this but I think working for a college undergraduate academic section, which takes care of activities like scholarships, medical claims, college certificates, grade sheets, creating profiles of the students etc., few rules are to be set on them.

Some of them are:

1. Proper working timings should be given to the staff….

BUSN 420 Business Law

 (TCO 7) SoftWorld Products, Inc. develops, patents, and markets a new software program that is expected to the Internet market by storm. Seeing the potential of SoftWorld Products, Inc.’s new system, Global Gurus, LLC, proceeds to sell SoftWorld Products, Inc.’s program without its permission.

Does this practice constitute patent infringement? If so, what steps could SoftWorld Products, Inc. take to save itself the financial burden of suing Global Gurus, LLC for patent infringement and that would simultaneously enable to profit from the sales being made by Global Gurus, LLC? (Points : 20)

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I believe Global Gurus practice patent infringement and it depends on the scope of the patent. You can patent a device and/or a…

BUSN 420 Business Law

(TCO 8) What are the four principal types of Electronic Fund Transfer (EFT) systems today? Distinguish between the four types of electronic funds transfer systems used by banks. When is an electronic transaction binding under the Uniform Electronic Transactions Act? Using a real-life example, distinguish the liability of the bank, the customer, and the payee in an electronic transfer of funds situation. (Points : 20)

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Electronic Funds Transfer (EFT) is a system of transferring money from one bank account directly to another without any…

(TCO 9) We often hear reference to the doctrine of respondeat superior in a business context. Explain this doctrine. What are the ramifications of actions taken in the context of this doctrine once it is that someone is an agent? What are the key factors that can be used to determine whether an agent’s actions are within the scope of their employment? Explain these factors in the context of an original agency example demonstrating their importance. (Points : 20)

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Employers are liable for torts committed by employees within the scope of the employment, a legal doctrine known as…

BUSN 420 Business Law

(TCO 10) What are the main features of a traditional corporation? What are the main features of a Limited Liability Company? What are the similarities and differences we can look to when trying to determine which entity will best suit our needs in a given situation? In the context of entity selection, discuss the main features of these two entities and compare the liability that a corporation would be exposed to as it relates to shareholders/owners of a corporation as opposed to the members of a limited liability company (LLC). Would your choice change if the situation involved an act of fraud? Why or why not? (Points : 20)

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Traditional Corporation is a separate entity that has its own rights and responsibilities. In forming a corporation, potential shareholders offer…

(TCO 5) High sues the manufacturer, wholesaler, and retailer for bodily injuries caused by a power saw High purchased. Which of the following statements is correct under strict liability theory? (Points : 10)

Contributory negligence on High’s part will always be a bar to recovery.

The manufacturer will avoid liability if it can show it followed the custom of the industry.

Privity will be a bar to recovery insofar as the wholesaler is concerned if the wholesaler did not have a reasonable opportunity to inspect.

High may recover even if he cannot show any negligence was involved.

(TCO 5) An appliance seller promised a restaurant owner that a home dishwasher would fulfill the dishwashing requirements of a large restaurant. The dishwasher was purchased but it was not powerful enough for the restaurant. Under the Sales Article of the UCC, what warranty was violated? (Points : 10)

The implied warranty of marketability.

The implied warranty of merchantability.

The express warranty that the goods conform to the seller’s promise.

The express warranty against infringement.

(TCO 5) EG Door Co., a manufacturer of custom exterior doors, verbally contracted with Art Contractors to design and build a $2,000 custom door for a house that Art was restoring. After EG had completed substantial work on the door, Art advised EG that the house had been destroyed by fire and Art was canceling the contract. EG finished the door and shipped it to Art. Art refused to accept delivery. Art contends that the contract cannot be enforced because it violated the Statute of Frauds by not being in writing. Under the Sales Article of the UCC, is Art’s contention correct? (Points : 10)

Yes, because the contract was not in writing.

Yes, because the contract cannot be fully performed due to the fire.

No, because the goods were specially manufactured for Art and cannot be resold in EG’s regular course of business.

No, because the cancellation of the contract was not made in writing.

(TCO 8) Under the Secured Transactions Article of the UCC, all of the following are needed to create an enforceable security interest, except _____ (Points : 10)

A security agreement must exist.

The secured party must give value

The debtor must have rights in the collateral.

A financing statement must be filed.

(TCO 8) Drew bought a computer for personal use from Hale Corp. for $3,000. Drew paid $2,000 in cash and signed a security agreement for the balance. Hale properly filed the security agreement. Drew defaulted in paying the balance of the purchase price. Hale asked Drew to pay the balance. When Drew refused, Hale peacefully repossessed the computer. Under the UCC Secured Transactions Article, which of the following remedies will Hale have? (Points : 10)

Obtain a deficiency judgment against Drew for the amount owed.

Sell the computer and retain any surplus over the amount owed.

Retain the computer over Drew’s objection.

Sell the computer without notifying Drew.

BUSN 420 Business Law

DeVry