Quiz Facts 8. Business - Business Law

1

Spruce Industries is a manufacturing factory located in El Rosa. El Rosa is 25 percent Hispanic, but Spruce has only 2 percent Hispanic employees. This data supports the charge that Spruce has engaged in:

2

Gingrich Co., a gun dealer, offers to sell a rare Civil War musket to Dan Inc., another dealer, for "$15,000, insurance and shipping paid by buyer." Dan responds, "I accept. Insurance and shipping costs divided equally between seller and buyer." The parties:

3

Over the course of a year, Discount Market Company sells goods from its inventory and also sells one of its warehouses. In exchange, Discount receives checks, which Discount uses to repay a loan from Evermore Credit Inc Article 2 of the UCC governs

4

Mucho Tacos, Inc, sells franchises. Mucho Tacos imposes on its franchisees standards of operation and personnel training methods. What is the potential pitfall to Mucho Tacos if it exercises too much control over its franchisees?

A provision in a franchise agreement permitting the franchisor to establish and enforce certain quality standards is valid and unquestionable. A franchisor has a legitimate interest in maintaining the quality of its products or services to protect its name and reputation.
But too much control over the operations of its franchisees risks potential liability. For example, under the doctrine of respondeat superior, the exercise of too much control may result in the franchisor's liability for the torts of a franchisee's employees. That is, if the franchisor has a right to control the franchisee's operations and exercises this right to a significant degree, and an employee under this control acts in a tortious or criminal manner that results in an injury to another, the franchisor may be held vicariously liable.

5

If there is a conflict between a state and federal law, generally the federal law will prevail because of the A)federalism doctrine

6

Sean breaches an agreement in his employment contract with Inmett Corporation by also working for Inmett's major competitor. Sean's promise to Inmett of his exclusive personal services may be enforced by injunction

7

When all the judges (or justices) agree on a decision, a majority opinion is written for the entire court

8

In a case involving the issue of whether a partnership actually existed, equal management is prima facie evidence.

9

The owner of a house wants to fence the yard for the family pet. When the fence is erected, the fencing materials become real estate through:

10

How much was Ford required to pay to Kearns?

11

Bailey Co and Spryt Bros. enter into a contract for the manufacture and sale of 400 lawn chairs. If both parties agree that a modification is necessary:

12

What three factors does a court primarily look to in determining if a horizontal merger is permissible once the market is defined? Discuss fully

13

How does the risk of loss pass when goods are delivered without being transported?

14

The relationship of landlord and tenant is always created by a written contract

15

Willton Bros. obtains from Marbowe Manufacturing a line of credit of $100,000, of which Willton initially uses $27,000 for purchase of inventory. Marbowe may only have a security interest in the inventory that covers the initial $27,000 advance

16

Which of the following refers to a special relationship of trust and confidence; it forms the basis of the attorney-client relationship?

17

An accountant has a duty to comply with court orders, client requests, and Generally Accepted Auditing Standards with regards to disclosure of a client's confidential information

18

A covenant allows a landlord to evict a tenant if there is a violation of the lease

19

Lisa is a musician. She signs a contract with a local restaurant allowing it to play her song in its advertisement for two years. The restaurant continues to play her song even after the contract expires. In this scenario, if Lisa sues to stop the restaurant from using her music, the court is most likely to order a(n) ________.

20

Which of the following is likely to be a breach of a corporate officer's/director's duty of care?

21

Negotiable instruments are important to business because they allow for the orderly creation and transfer of rights to the payment of money

22

What defense can an accused party use when accused of IP infringement?

23

Set forth the characteristics that a traveler's check must have.

24

A three-party secured transaction occurs when a seller sells goods to a buyer who has obtained financing from a third-party lender who takes a security interest in the goods sold

25

Securities issued with the approval of the SEC are subject only to SEC regulation; they are exempted from common law fraud

26

Maria is the treasurer of Rex Caldwell Corporations. As treasurer, she makes out and signs the payroll checks for the company. Maria draws a payroll check payable to the order of her maid Carolyn Doss, who does not work for the company

27

Robert Solomon is a proponent of virtue ethics

28

Bob's Painting Service employed three temporary workers without conducting adequate background checks. One of the workers, Joe, was convicted of rape and had just been released from prison. While working for Bob, Joe attacks and rapes the owner of the house that was being painted. Which of the following claims can the victim make against Bob's Painting Service?

29

Columbia, South Carolina, is where Hootie and his blowfish got their start. In fact, they practiced in the storage sheds at Sumter Street Self-Storage in Columbia. Known as "The Sheds," the units have been home to music practice for two decades

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However, since the 1994 climb to fame of Hootie, the storage area has become the home to almost 139 weekend and evening jammers and rehearsal sessions, much to the chagrin of the neighbors. The neighbors began a campaign to shut down the music practice. Nuisance did not work because the bands had to stop playing at 10 p.m. The neighbors then turned to fire codes. That battle ended with the city concluding that the use of the sheds for practice violated city fire code. However, the ruling that the music stop was appealed and the music continued, with new fire extinguishers. Neighbors appealed and a court ruled that new wiring was required if the bands were to continue. The owner does not want to undertake the expense and a sign on the gate reads, "No band practice." What laws govern this situation?

30

Which fund: the motor pool fund sent an invoice for maintenance of police and fire vehicles.

31

Dana downloads music into her computer's random access memory, or RAM, without authorization. This is

32

[Hot Toaster] Cara bought a toaster from Super Store and brought it home. A friend of hers, Kumar, was at her house making toast. The toaster malfunctioned and shocked Kumar, resulting in a small burn to his hand that required medical attention. Cara also purchased a blender at her friend Nicole's garage sale, with the intention of making smoothies. Unfortunately, the blender was not powerful enough to make smoothies. Assume that not all blenders are designed to provide the texture required for good smoothies.Which of the following is true regarding whether Nicole made an express warranty to Cara that the blender would make smoothies?

33

What is a quiet title action?

34

Under Chapter 11, a class that is not impaired under a plan is deemed to have accepted the plan.

35

Elsa was a receptionist at Dewey, Cheatham & Howe, a well-known New York law firm. While at Dewey, Elsa was responsible for answering phones, greeting the firm's clients, reporting their presence to the attorneys, and getting them coffee. Elsa had a lot of prior experience (10 years at another law firm) and understood how to perform her duties in a professional manner. She dressed appropriately for a law firm setting (usually in a business suit), and did not wear any provocative or sexually-suggestive clothing. Often when clients would come in, they would linger at Elsa's desk, telling sexually-charged jokes or stories, etc. Some of them even went so far as to touch Elsa or themselves while making inappropriate sexual comments. One morning Elsa talked with her supervisor about what was

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occurring. Her supervisor was quick to remind her that it is the clients that she complained about that pay the firm's bills, including Elsa's salary. Perhaps if she played along a little more, it might lead to a salary increase, a bonus or a promotion. Anyway, the firm does have a procedure for reporting and investigating these kinds of complaints, but it is cumbersome and is likely to take some time. In the end, the firm may weigh the value of the clients and the value of Elsa's contribution and she may end up being terminated. The meeting ended with no official complaint filed. With a lot to consider following the meeting, Elsa returned to her duties. By mid-afternoon Elsa decided the situation at Dewey was hopeless, and she began to look at help wanted ads online. Before she left that evening, Elsa slipped her resignation letter under her supervisor's door. What issues are raised in this fact pattern? Could this be a case of constructive discharge?

What will be an ideal response?

Students' answers will vary. The student may discuss quid pro quo sexual harassment and/or hostile work environment sexual harassment. In addition, the facts may lend themselves to an argument of constructive discharge. Sometimes, the employee is not terminated but instead believes the harassment is so unbearable that he or she must quit his or her job without going through the employer's sexual harassment complaint process. This is constructive discharge. In Pennsylvania State Police v. Suders, the Supreme Court addressed what to do if a supervisor's actions result in a constructive discharge for an employee and whether such a discharge is loss of a tangible job benefit, resulting in strict liability for the employer. The Court said that when there is no official act resulting in the constructive discharge, and thus, no way for an employer to be made aware that there was an issue resulting in the constructive discharge, rather than strict liability attaching to the employer, the employer is able to use the Ellerth and Faragher affirmative defense to show how it tried to avoid liability

36

In states that have not adopted the Uniform Probate Code, the person named in a will to carry out the terms in it is called a(n):

37

Sherman Act violations may give rise to civil litigation only.

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Quiz Facts 8. Business - Business Law

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