Professor Wise is teaching a summer seminar in business torts at State University. Several times during the course, he makes copies of relevant sections from business law texts and distributes them to his students. Wise does not realize that the daughter of one of the textbook authors is a member of his seminar. She tells her father about Wise’s copying activities, which have taken place without her father’s or his publisher’s permission. Her father sues Wise for copyright infringement. Wise claims protection under the fair use doctrine. Who will prevail? Explain.
> Geographic Expeditions, Inc. (GeoEx), which guided climbs up Mount Kilimanjaro, required climbers to sign a release to participate in an expedition. The form required any disputes to be submitted to arbitration in San Francisco and limited damages to the
> J.T., a minor, is a motocross competitor. At Monster Mountain MX Park, he signed a waiver of liability to “hold harmless the park for any loss due to negligence.” Riding around the Monster Mountain track, J.T. rode over a blind jump, became airborne, and
> Kalen is a seventeen-year-old minor who has just graduated from high school. He is attending a university two hundred miles from home and has contracted to rent an apartment near the university for one year at $500 per month. He is working at a convenien
> Dewayne Hubbert, Elden Craft, Chris Grout, and Rhonda Byington bought computers from Dell Corp. through its Web site. Before buying, Hubbert and the others configured their own computers. To make a purchase, each buyer completed forms on five Web pages.
> Technical Consumer Products, Inc. (TCP) makes and distributes energy-efficient lighting products. Emily Bahr was TCP’s district sales manager in Minnesota, North Dakota, and South Dakota when the company announced the details of a bonus plan. A district
> In what circumstances will an offer be irrevocable?
> What is the difference between express and implied contracts?
> What are the four basic elements necessary to the formation of a valid contract?
> How can business leaders encourage their companies to act ethically?
> What types of ethical issues might arise in the context of international business transactions?
> What laws protect authors’ rights in the works they create?
> What defenses can be raised to avoid liability for criminal acts?
> Name four defenses that can be used against an ordinary holder but are not effective against an HDC.
> How does the negotiation of order instruments differ from the negotiation of bearer instruments?
> What are the respective obligations of the parties under a contract for the sale or lease of goods?
> How do duty-based ethical standards differ from outcome-based ethical standards?
> What federal law allows U.S. citizens, as well as citizens of foreign nations, to file civil actions in U.S. courts for torts that were committed overseas?
> What are some clauses commonly included in international business contracts
> What is the act of state doctrine? In what circumstances is this doctrine applied?
> When do courts grant specific performance as a remedy?
> Under what circumstances is the remedy of rescission and restitution available?
> When is a breach considered material, and what effect does that have on the other party’s obligation to perform?
> How are most contracts discharged?
> What are the elements of fraudulent misrepresentation?
> In what types of situations might voluntary consent to a contract’s terms be lacking?
> What are the elements that are necessary for an effective acceptance?
> What is intellectual property?
> Rye signs corporate checks for Suchin Corporation. Rye writes a check payable to U-All Company, even though Suchin does not owe U-All anything. Rye signs the check, forges U-All’s indorsement, and cashes the check at Viceroy Bank, the drawee. Does Suchin
> Brite Images, Inc. (BI), agrees to sell Catalog Corporation (CC) five thousand posters of celebrities, to be delivered on May 1. On April 1, BI repudiates the contract. CC informs BI that it expects delivery. Can CC sue BI without waiting until May 1? Wh
> Country Fruit Stand orders eighty cases of peaches from Down Home Farms. Without stating a reason, Down Home untimely delivers thirty cases instead of eighty. Does Country have the right to reject the shipment? Explain.
> Café Rojo, Ltd., an Ecuadoran firm, agrees to sell coffee beans to Dark Roast Coffee Company, a U.S. firm. Dark Roast accepts the beans but refuses to pay. Café Rojo sues Dark Roast in an Ecuadoran court and is awarded damages, but Dark Roast’s assets ar
> Eagle Company contracts to build a house for Frank. The contract states that “any assignment of this contract renders the contract void.” After Eagle builds the house, but before Frank pays, Eagle assigns its right to payment to Good Credit Company. Can
> In September, Sharyn agrees to work for Totem Productions, Inc., at $500 a week for a year beginning January 1. In October, Sharyn is offered $600 a week for the same work by Umber Shows, Ltd. When Sharyn tells her boss at Totem about the other offer, he
> Fidelity Corporation offers to hire Ron to replace Monica, who has given Fidelity a month’s notice of her intent to leave the company. Fidelity gives Ron a week to decide whether to accept. Two days later, Monica decides not to leave and signs an employm
> Dyna tells Ed that she will pay him $1,000 to set fire to her store so that she can collect under a fire insurance policy. Ed sets fire to the store, but Dyna refuses to pay. Can Ed recover? Why or why not?
> Daisy takes her roommate’s credit card, intending to charge expenses that she incurs on a vacation. Her first stop is a gas station, where she uses the card to pay for gas. With respect to the gas station, has she committed a crime? If so, what is it?
> Sony revealed that the script for a new James Bond movie had been hacked and leaked. Could a news publication legally print or post online that entire script? Why or why not?
> Suppose that Coca-Cola had been trying to make the public believe that its product contained cocaine. Would the result in the case likely have been different? Explain your answer.
> What is the essential difference between revoking acceptance and bringing a suit for breach of contract?
> When a contract becomes impossible or impracticable to perform, which remedy would a businessperson prefer— rescission or reformation? Why? Explain your answer.
> If a country does not have a Statute of Frauds and a dispute arises over an oral agreement, how can the parties substantiate their positions?
> Managers are potentially responsible for all actions of their foreign subsidiaries, whether or not they knew of the illegal conduct. Taking that fact into account, what actions should Orthofix’s upper management have taken before this corruption scandal
> What entities might pay “cyber mercenaries” to create some of the malware described in this feature?
> Why might it be difficult for U.S. authorities to ever investigate the KoobFace gang?
> What would be the cost to individuals and businesses that use checks if a similar law were passed in this country?
> What is a material breach of contract? When a material breach occurs, what are the nonbreaching party’s options?
> Suppose that after Lucy signed the agreement, he decided he did not want the farm after all, and that Zehmer sued Lucy to perform the contract. Would this change in the facts alter the court’s decision that Lucy and Zehmer had created an enforceable cont
> Suppose that Fitl and Strek had included in their deal a written clause requiring Fitl to give notice of any defect in the card within “7 days to 1 month” of its receipt. Would the result have been different? Why or why not?
> Why would the seller’s knowledge of the buyers’ limited resources support a finding of unconscionability?
> We should eliminate the status of holder in due course for those who possess negotiable instruments.
> If a contract specifies a particular carrier, then the shipper must use that carrier or be in breach of the contract—no exceptions should ever be allowed.
> The UCC should require the same degree of definiteness of terms, especially with respect to price and quantity, as general contract law does.
> The U.S. federal courts are accepting too many lawsuits initiated by foreigners that concern matters not relevant to this country.
> Courts should always uphold limitation-of-liability clauses, whether or not the two parties to the contract had equal bargaining power.
> The doctrine of commercial impracticability should be abolished.
> Many countries have eliminated the Statute of Frauds except for sales of real estate. The United States should do the same.
> After agreeing to an exculpatory clause or purchasing some item, minors often seek to avoid the contracts. Today’s minors are far from naïve and should not be allowed to avoid their contractual obligations.
> The terms and conditions in click-on agreements are so long and detailed that no one ever reads the agreements. Therefore, the act of clicking on “Yes, I agree” is not really an acceptance.
> Companies should be able to make or break employment contracts whenever and however they wish.
> Executives in large corporations are ultimately rewarded if their companies do well, particularly as evidenced by rising stock prices. Consequently, shouldn’t we just let those who run corporations decide what level of negative side effects is “acceptabl
> Because of overcriminalization, particularly by the federal government, Americans may be breaking the law regularly without knowing it. Should Congress rescind many of the more than four thousand federal crimes now on the books?
> Internet service providers should be subject to the same defamation laws as newspapers, magazines, and television and radio stations.
> Roslyn, a food buyer for Organic Cornucopia Food Company, decides to go into business for herself as Roslyn’s Kitchen. She contacts Organic’s suppliers, offering to buy their entire harvest for the next year. She also contacts Organic’s customers, offeri
> Robert Durbin, a student, borrowed funds from a bank for his education and signed a promissory note for their repayment. The bank loaned the funds under a federal program designed to assist students at postsecondary institutions. Under this program, repa
> GFI, Inc., a Hong Kong company, makes audio decoder chips, one of the essential components used in the manufacture of MP3 players. Egan Electronics contracts with GFI to buy 10,000 chips on an installment contract, with 2,500 chips to be shipped every th
> Guy Holcomb owns and operates Oasis Goodtime Emporium, an adult entertainment establishment. Holcomb wanted to create an adult Internet system for Oasis that would offer customers adult theme videos and live chat room programs using performers at the clu
> Robco, Inc., was a Florida arms dealer. The armed forces of Honduras contracted to purchase weapons from Robco over a six-year period. After the government was replaced and a democracy installed, the Honduran government sought to reduce the size of its m
> Kyle Bruno enters into a contract with X Entertainment to be a stuntman in a movie. Bruno is widely known as the best motorcycle stuntman in the business, and the movie, Xtreme Riders, has numerous scenes involving high-speed freestyle street-bike stunts
> Val’s Foods signs a contract to buy 1,500 pounds of basil from Sun Farms, a small organic herb grower, if an independent organization inspects the crop and certifies that it contains no pesticide or herbicide residue. Val’s has a contract with several re
> Chelene had been a caregiver for Marta’s elderly mother, Janis, for nine years. Shortly before Janis passed away, Chelene convinced her to buy Chelene’s house for Marta. Janis died before the papers were signed, however. Four months later, Marta used her
> Renee Beaver started racing go-karts competitively in 2015, when she was fourteen. Many of the races required her to sign an exculpatory clause to participate. She or her parents regularly signed such clauses. In 2017, right before her birthday, Renee pa
> Ted and Betty Hyatt live in California, a state that has extensive statutory protection for consumers. The Hyatts decided to buy a computer so that they could use e-mail to stay in touch with their grandchildren, who live in another state. Over the phone
> Mitsui Bank hired Ross Duncan as a branch manager in one of its Southern California locations. At that time, Duncan received an employee handbook informing him that Mitsui would review his performance and salary level annually. In 2015, Mitsui decided to
> James Stilton is the chief executive officer (CEO) of RightLiving, Inc., a company that buys life insurance policies at a discount from terminally ill persons and sells the policies to investors. RightLiving pays the terminally ill patients a percentage
> Edward Hanousek worked for Pacific & Arctic Railway and Navigation Company (P&A) as a roadmaster of the White Pass & Yukon Railroad in Alaska. As an officer of the corporation, Hanousek was responsible “for every detail of the safe and efficient maintena
> How do shrink-wrap and click-on agreements differ from other contracts? How have traditional laws been applied to these agreements?
> What elements are necessary for an effective offer? What are some examples of nonoffers?
> What rules guide the courts in interpreting contracts?
> How does a void contract differ from a voidable contract? What is an unenforceable contract?
> What is a contract? What is the objective theory of contracts?
> What are five steps that a businessperson can take to evaluate whether his or her actions are ethical?
> What is business ethics, and why is it important?
> How has the Internet expanded opportunities for identity theft?
> What constitutional safeguards exist to protect persons accused of crimes?
> What are five broad categories of crimes? What is white-collar crime?
> What two elements normally must exist before a person can be held liable for a crime?
> How do online retailers track their users’ Web browsing activities?
> When does the law protect a person’s electronic communications from being intercepted or accessed?
> What steps have been taken to protect intellectual property rights in the digital age?
> What are trade secrets, and what laws offer protection for this form of intellectual property?
> What law governs whether Internet service providers are liable for online defamatory statements made by users?
> How does the law protect patents?
> Why is the protection of trademarks important?
> What is cybersquatting, and when is it illegal?
> What is the difference between signature liability and warranty liability?
> What are the requirements for attaining the status of a holder in due course (HDC)?
> What requirements must an instrument meet to be negotiable?
> What implied warranties arise under the UCC?
> What remedies are available to a seller or lessor when the buyer or lessee breaches the contract?
> What options are available to the nonbreaching party when the other party to a sales or lease contract repudiates the contract prior to the time for performance?
