Tobacco companies often sell tobacco products labeled as light or ultra light. Labeling cigarettes as light and ultra light insinuates that the product contains lower amounts of tar and nicotine and that the consumer using the product will ingest lower amounts of nicotine and tar. However, three smokers from Maine argued that documents within the tobacco industry raised uncertainty about whether such products actually contained lower amounts of the harmful ingredients. Furthermore, the smokers of such products tended to take longer drags from the cigarettes, taking in more smoke. Thus, the light and ultra-light consumers were not ingesting less tar and nicotine than smokers using regular cigarettes. The three smokers determined that the Federal Trade Commission did not stop such deceptive advertising, and they sued the cigarette manufacturer, Philip Morris, and the Altria Group. The case moved beyond a federal appeals court and was ultimately brought before the Supreme Court. Did the Supreme Court allow the lawsuits to go forward on grounds of deceptive advertising?
> Theresa Polk discussed selling her residence and 181 acres of land to BHRGU Avon Properties, LLC. Avon presented an offer for the land. Polk responded by providing two counteroffers, both stipulating that Avon accept before February 7, 2005, at 5 p.m. Av
> Business Systems agreed to provide supplies to IBM as a subcontractor to a deal to update computer systems of the Chicago Transit Authority. The budget for this deal was set at $3.6 million; however, only $2.2 million of services were actually performed
> R.J. Reynolds Tobacco Company (RJR) operated a customer rewards program, called Camel Cash, from 1991 to 2007. Under the terms of the program, RJR urged consumers to purchase Camel cigarettes, to save Camel Cash certificates included in packages of Camel
> What must a party prove to recover under the theory of quasi-contract?
> This chapter distinguishes between private and public law. Why are the interests of the public identified with the behavior of the government? Why would public law not be a term referring to the interests of corporations, for example?
> Nike and Michael Jordan created the Air Jordan line in the 1980s. Jordan fi led suit against a Chinese sportswear company, Qiaodan Sports, in China. Jordan is known in China as Qiaodan, and Qiaodan Sports uses a logo of a silhouette of a tall man holding
> Securities brokerage firm Charles Schwab filed suit against a former employee who left the company and started his own wealth management firm. Charles Schwab claimed that the names of its clients, along with information regarding their accounts and asset
> The Stop & Shop Supermarket and Big Y Foods are supermarkets offering the same services and competing for the same customers. In an advertisement introducing its new, easy-to-use scan saver cards, Stop & Shop Supermarket used the slogan, “It’s That Simpl
> Travis Scheible was riding his bicycle and started to cross the street from behind a mature tree that overhung the sidewalk and obscured his view of oncoming traffic. As he rode into the street, Travis was struck by an oncoming car and was killed. The tr
> Defendant Tubbs met her fiancé, Church, over the Internet. After several years of correspondence and visits, they became engaged in February 2000. Church and Tubbs planned to be married in Las Vegas in July 2000. Two months before the engagement, Church
> Thomas A. Carella filed for Chapter 7 bankruptcy. At the time, HSBC Bank USA held the sum of $16,540.94 on deposit in a joint bank account in the names of Carella and his father, Thomas J. Carella. The son sought to protect the money in the bank account,
> Plaintiff homeowners purchased a parcel of land in the homeowners association’s (HOA’s) subdivision. Their real estate agent requested the attached-garage requirement to be waived, and when the owners did not receive a response from the HOA, they worked
> How are trademarks and patents different?
> Explain the bundle-of-sticks idea as it relates to intellectual property.
> Explain the five possessory interests in land.
> Missouri was International Shoe Corporation’s principal place of business, but the company employed between 11 and 13 salespersons in the state of Washington, who exhibited samples and solicited orders for shoes from prospective buyers in Washington. The
> Explain the bundle-of-sticks idea as it relates to real property.
> In 2008, Wayne Singleton and his eight-year-old son, Jaron, were traveling on a bus for a school field trip to Six Flags. Wayne fell asleep on the way, and while he was asleep, the bus became airborne and drove off the road into a wooded area. The bus ev
> The Bank of New York (BONY) sued the defendant insurance company, Fremont General Corporation, for intentional interference with contract and conversion. BONY sought to recover damages from the defendant’s withdrawal of $14 million from BONY, which BONY
> At 2:08 a.m., on Friday, December 29, 2006, the defendant received by e-mail the Lake in the Hills police department Daily Bulletin, and it reported that Carolene Eubanks had been charged with theft and obstruction of justice. As it normally does, the ne
> Vernon Hendrickson, an inmate at an Indiana correctional facility, sued correctional officer Scott Cooper for violation of the Eighth Amendment protections against cruel and unusual punishment after Cooper threw Hendrickson against a wall, slammed him on
> Former Major League Baseball player and radio game announcer Bob Uecker sought an injunction against Ann Ladd, alleging a six- or seven-year pattern of harassment. Ladd, who claimed to be a devoted fan, was charged with felony stalking. An injunction was
> Kerns, a home owner, sued defendant contractor Sealy for negligence, breach of contract, wantonness, and res ipsa loquitur in connection with a fire that occurred during the contractor’s application of foam installation in the plaintiff’s attic. The cont
> Explain the relationship between negligence per se and res ipsa loquitur.
> Explain the differences between contributory and comparative negligence.
> List and define the elements that are necessary to prove a case of negligence.
> Most business managers know they need to consult a lawyer when they make important business decisions. If that assumption is correct, why would a manager or entrepreneur need to have any knowledge of business law? Couldn’t she or he just ask the lawyer?
> List five intentional torts and explain the elements needed to prove each.
> Explain why some people see punitive damages as a necessary aspect of our tort system, whereas others want to restrict their availability.
> Distinguish the three types of damages available in tort cases.
> Toby Scammel’s girlfriend was briefly involved in Disney’s acquisition of Marvel in 2009. Scammel bought 659 Marvel options for $5,465 in the days prior to the announcement of the acquisition. Within the nine days following the announcement, Scammel sold
> The defendant, Raul Pol-Flores, referred two investors to Luis Herrero-Rovira. The two investors were then defrauded of their entire $290,000 investment, and Pol received nearly $20,000 of the funds. When the two investors had deposited the $290,000 in t
> Defendants driver Holland and Kelley, his passenger, were charged with drug possession with the intent to sell. Officers had arrested the driver on a misdemeanor, for changing lanes without signaling, after the officers had been advised by High-Intensity
> Chester Jones was the committee chairman of the Perry County Democratic Party and a candidate for the Perry County school board. Jones used money given to the Kentucky Democratic Party to hand out 75 $100 checks to Perry County voters in an effort to per
> Chambliss met Chinasa in 2004 through his side business. Chinasa told Chambliss that he lived in Gaithersburg, Maryland, and ran a business called DataNet Communications. When Chambliss began working for Packet 360, Chinasa asked Chambliss to help him by
> Explain the federal laws that are currently being used to fight white-collar crime.
> What is meant by reading a defendant his Miranda rights, and why are these rights important?
> How does the WH approach to ethics respond to an ethical problem?
> List and define the primary affirmative defenses used in criminal cases.
> In April 1986, the FBI arrested Larry Dean Dusenbery in his home. After the FBI removed Dusenbery from the premises and placed him in custody, it obtained and executed a search warrant for his property. During the search, FBI agents seized drugs, drug pa
> In 2007, the Prescription Confidentiality Law was passed in the state of Vermont. One of the key measures of the law stipulated that without a doctor’s consent, any documents containing information about prescribing practices could not be sold or used fo
> For more than a century, a memorial, 43-foot, Latin Cross had been present at Mount Soledad, but in 1989, the city of San Diego was sued on grounds that the presence of the cross violated the First Amendment. In response to a court ruling that the cros
> Members of the Old Order Groffdale Conference Mennonite Church have traditionally used horses and buggies for transportation. They began using tractors about 40 years ago, especially for hauling their agricultural products to market. To ensure that the t
> The Entertainment Software Association (ESA), representing video game developers such as Sony Computer Entertainment and Nintendo, filed a motion for a permanent injunction in Illinois, claiming that the Illinois Sexually Explicit Video Game Law (SEVGL)
> Delaware enacted an apprentice regulatory scheme to “develop and conduct employee training and registered apprenticeship programs” and to provide “for the establishment and furtherance of standards of apprenticeship and training to safeguard the welfare
> CEU’s sole business activity was the collection of dishonored checks received by area merchants. When a check was dishonored, a merchant would forward the check to CEU, who would then send out a series of notices to the check writer, usually using a lett
> Comcast Corporation is a worldwide cable company that provides cable services to businesses and individual consumers. In Philadelphia, the company purchased some of its competitors, which increased the percentage of its local ownership to about 75 percen
> A group of winemakers from California and several Massachusetts residents challenged a Massachusetts law that distinguishes how large wineries and small wineries may distribute their wines in the state of Massachusetts. The Massachusetts law defined wine
> Brenda Laramore receives federal assistance pursuant to Section Eight of the United States Housing Act. “Section [Eight] is a federal program designed to assist the elderly, low income, and disabled pay rent for privately owned housing.” The assistance g
> What are the main provisions of the Truth in Lending Act, and how does it aid consumers?
> What are the elements of a deceptive advertisement, and how does the FTC prove an ad is deceptive?
> As part of its ongoing efforts to uncover overhyped health claims in food advertising, the Federal Trade Commission issued an administrative complaint charging the maker of POM Wonderful 100% Pomegranate Juice with making false and unsubstantiated claims
> Delores Villegas was having problems paying her debts, so she fi led for bankruptcy. Weinstein, a debt collector handling some of her debt, sent a letter to the lawyer representing Villegas in bankruptcy. The letter discussed the debt and advised the att
> Microprocessors are a computer part commonly referred to as the brain of the computer. Intel, a microprocessor manufacturer, introduced the Pentium 4 microprocessor in November 2000. Computers with a Pentium 4 processor were priced, at least initially, a
> Aroma Housewares Co. is a California corporation that distributes electric kitchen appliances. Aroma distributed between 30,000 and 40,000 juice extractors in the United States. The juicers employed a rapidly spinning metal grater, whose sharp teeth pulv
> What is the goal of the FTC, and how does it achieve its goal? What are some pieces of legislation that enable the FTC to achieve its goal?
> List the protected classes under the Civil Rights Act of 1964 (as amended in 1991).
> Taxpayers in the state of Kentucky alleged that a tax on out-of-state municipal bonds that excluded interest from in-state bonds was a violation of the commerce clause. Representatives of the state argued that the tax reflected a traditional government f
> Whom does the Age Discrimination in Employment Act protect?
> What is required for an employee to be eligible for benefits under the Family and Medical Leave Act?
> What is the current amount of the federal minimum wage? When was the last time the federal minimum wage was increased?
> Does Title VII apply to same-sex harassment?
> Meadows worked as an assistant manager at a Dollar General store. While she was ringing up an order for a customer, he became verbally abusive. After she finished ringing up the sale, the customer threw the bag, containing a can of motor oil, at Meadows,
> Lisa Harrison (Harrison) was hired by Defendant at Family House of Louisiana (Family House), a long term residential treatment facility for chemically dependent women and their children, on November 23, 1999. She was hired as a Prevention/Intervention Sp
> Baxter Pharmacy paid its pharmacists a salary but no overtime pay. Under the Fair Labor Standards Act (FLSA), employers must pay employees overtime for hours worked in excess of 40 hours per week. Baxter Pharmacy believes that the pharmacists are exempt
> Name five statutes that prohibit discrimination in employment.
> Two affiliates of a hugely successful hedge fund, SAC Capital Advisors, were charged with insider trading by the SEC. CR Intrinsic Investors and Sigma Capital Management apparently relied on expert networks where, allegedly, people with information funne
> How does the misappropriation theory apply to insider trading?
> Explain how each branch of the government checks the power of the other branches.
> If there are different ways to interpret statutes and case decisions, would it make sense to say that all interpretations of the law are equally appropriate?
> Why is it illegal to use inside information in making securities transactions?
> What is the function of the SEC?
> A corporation, Platforms, held stock that was not registered with the SEC under the Securities Act of 1933. William Martin provided consulting to Platforms as an employee of a sole proprietorship called Intermedia Video Marketing Company. Martin alleged
> The plaintiff commented that the defendants “intentionally or recklessly failed to disclose a change in Japanese regulations that predictably reduced demand for the corporation’s products and services in Japan, a significant market for the company.” The
> What was the stimulus for the creation of securities regulation? State the purposes of the two main federal securities laws.
> Emory B. Perry, who represents numerous shareholders, owned stock of The RAMP Corporation, a now-defunct company that developed communications technologies for the health care industry. Darryl R. Cohen and Andrew M. Brown are former directors of RAMP. Pe
> Richard Schoon was elected to the board of directors at the Troy Corporation, a private corporation in Delaware. There are three stock series of stock options. A series A share allows someone to elect four of five directors on the corporation’s board. A
> The Greek shipping company Ionia Management managed a 600-foot oil tanker that delivered oil to ports along the eastern seaboard of the United States. During these deliveries, Ionia’s engine room crew, at the direction of their ship supervisors, regularl
> What is the business judgment rule?
> Explain the primary duties of officers and directors.
> The county board of commissioners (the Board) entered into a memorandum of understanding (MOU) with a professional baseball team. The MOU obligated the team, among other things, to relocate to the city for spring training. The MOU called for the renovati
> How is an ultra vires act related to a corporation’s powers?
> H&R Block is one of the largest providers of incometax preparations and the second largest of online do-it-yourself software in the United States. In 2010, the tax preparer sought to buy out its rival, 2SS Holdings, who produced TaxAct software products
> Name at least three characteristics that distinguish corporations from other forms of business organization.
> Milburn Pierce was the sole proprietor of the Pierce Painting Company, a painting contracting company with two employees in addition to Pierce. Pierce bought workers’ compensation insurance for his business through the Louisiana Workers’ Compensation Cor
> Brothers Aurelio and Hugo V. Garcia founded a trash removal business called Garcia’s, Inc., in the early 2000s. Hugo served as president and director. Garcia’s decided to lease trucks and equipment to United Leasing. However, United required, as a part o
> Mike Karimi has been in the hotel management business since the 1980s. The name of Karimi’s company is MAK, LLC, which manages and operates several hotels in the United States. In 2004, two brothers, the Khatris, who were friends of Karimi’s, wanted him
> The Meehans entered into a franchise agreement with Consumers Club. However, the Meehans’ franchise failed. The Meehans alleged that, just before they entered into the franchise agreement, Consumers Club made false statements and misleading representatio
> Tracy Allen rented a home in which she had been residing since the summer of 1998. The landlord owner of the house later failed to pay taxes on the property, and on March 16, 2000, Hard Assets LLC acquired the property from the owner in lieu of foreclosu
> William Roberts operated a McDonald’s restaurant under a franchise agreement with McDonald’s Corporation. Roberts hired 23-year-old David Mabin, who was just released from jail for robbery, drug use, and theft, as an hourly worker. Soon, Roberts promoted
> When might a principal be liable for torts committed by an agent?
> On January 21, 2003, Robbins filed an application for site plan approval to construct an asphalt plant within the town limits of Hillsborough. Robbins had entered into a contract to purchase the property prior to submitting his application for site plan
> How is apparent agency, or agency by estoppel, different from expressed agency?
> Why is it important to determine whether a worker is an independent contractor or an employee?
> What are the similarities and differences between the types of agency relationships?
> Julaju drove a taxi on a part-time basis for El Palmar Taxi, Inc., usually only on Sundays and sometimes on Mondays. He worked an unrelated job on the remaining days of the week. Julaju was given certain rules to follow—dress neatly, do not allow smoking
> Thomas Kimbro, a Department of Public Safety (DPS) officer, was the driver of a state-owned vehicle that struck Brystal McCloud’s vehicle on April 1, 2005. Kimbro normally worked in Phoenix, where he lived, but at the time of the accident he was temporar
> Who can serve as an agent or a principal?
> Fordyce Bank & Trust Company (Bank) issued several loans to Bean Timberland (Bean) so that Bean could purchase timber from various landowners. Bean gave the bank security interests in the purchased timber, and the proceeds from the sale of the timber wer
> In May 1990, Gerald Gaucher entered into a Retail Installment Contract and Security Agreement with Cold Springs RV Corp. This agreement provided for the purchase of a travel trailer. In the agreement, Gaucher agreed to pay $320 a month for seven years an
