BUS 415 New Version Complete Course - All DQs, Individual, Team Assignments

BUS 415 New Version Complete Course - All DQs, Individual, Team Assignments

BUS 415

Business Law New Version


Business Ethic’s Case

State of Confusion Paper

Business Entities, Laws, and Regulations Paper



Discussion Questions

Synopsis of Torts Cases Paper

FoodMart Inc. Paper

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BUS 415

Business Law New Version


Week 1:

Individual Assignment: Business Ethics Case

Read Business Ethics Case 3.5 at the end of Chapter 3 of The Legal Environment of Business and Online Commerce. After reading the case, write answers for questions 1-3 that follow in the text.  Make sure your paper follows APA Writing Style Format.


Week 2:

Individual Assignment: State of Confusion Paper

The state of Confusion enacted a statute requiring all trucks and towing trailers that use its highways to use a B-type truck hitch. This hitch is manufactured by only one manufacturer in Confusion. The result of this statute is that any trucker who wants to drive through Confusion must stop and have the new hitch installed, or drive around Confusion. The federal government has not made any attempt to regulate the truck hitches used on the nation’s highways. Tanya Trucker, who owns a trucking company in the state of Denial, is not happy about the additional expense this statute imposes on her business. She intends to file suit against Confusion to overturn the statute. 
Write a 900- to 1,400-word paper addressing the following questions:
o What court will have jurisdiction over Tanya’s suit? Why?o Is the Confusion statute constitutional? Discuss your legal reasoning. o What provisions of the U.S. Constitution will be applied by a court to determine the statute’s validity?o Is Tanya likely to prevail on her suit? Explain the reasons for your answer.o Set forth in detail the stages of a civil suit.o Make sure your paper follows APA Format Guidelines.


Week 3:

Learning Team Assignment: Synopsis of Tort Cases Paper

Write a 350-word synopsis for each scenario in which you answer the following statements:
o What tort actions do you seeo The identity of potential plaintiffso The identity of potential defendants and why you see each one as a defendanto The elements of the tort claim that constitute the plaintiff’s claimo Any defenses you think defendants might asserto How you think the claim will be resolved, stating legal reasons for your answer
Scenario 1: Daniel and his son Ruben, age 8, go to a football game. The quarterback drops back to throw a pass, and is hit by an opposing player, breaking the quarterback’s arm, and sending the ball into the stands, injuring a fan. The referee calls this an incomplete pass, which upsets Malik, a fan seated next to Ruben. Malik jumps up to yell at the referee, spilling his cold beer on Ruben. Daniel is upset to see Ruben’s enjoyment spoiled this way, and shoves Malik. As Malik falls, he grabs onto the railing, which gives way under his weight. Malik’s face hits the aisle steps, knocking out two of his front teeth. An usher takes Malik to the first aid station. 
On their way out, Daniel stops at the concession stand to buy two diet soft drinks. A lady standing in line at the concession stand smells the beer on Ruben, and she starts yelling at Daniel, accusing him of giving beer to a child. She makes a huge scene, and several customers cast disgusted glances toward Daniel. One of them is Daniel’s boss, who tells him he does not want anyone working for him who would give alcohol to a child, and that Daniel is fired. Meanwhile, the concession worker gets distracted by the scene in front of him, and accidentally gives Daniel two regular, sugary soft drinks instead of diet drinks. Daniel and Ruben drink the soft drinks as they exit the stadium.
Just as Daniel and Ruben arrive at their car, Malik and his wife appear behind them. Malik is pointing a gun at Daniel. The gun is not loaded, but he wants to scare Daniel. Unfortunately, Daniel has a concealed weapon and, believing himself threatened, shoots Malik. Malik’s wife starts screaming and phones for an ambulance and the police. Before the police and ambulance arrive, Daniel slips into a diabetic coma.
Scenario 2: Anna orders a meal in an Italian restaurant. After her food is served, she takes a bite and cries out in pain. She has bitten down on a piece of glass. Upon hearing Anna’s cry, another waiter who is pouring wine at a nearby table spins around and bumps into Anna’s waiter, who is carrying a flaming dish. The flaming dish tilts onto Anna’s waiter, and his apron catches fire. He rips it off and casts it aside, where it ignites another tablecloth. People start screaming and run for the door, but because it is a revolving door, only one or two people can leave at a time. An old lady is trampled by the crowd and is seriously injured. Several other patrons suffer smoke inhalation and burns, but finally, everyone is out.
When the ambulances and fire engines arrive, Anna is among those transported to the emergency room. Her mouth is bleeding profusely, and she is becoming weak. The emergency room doctor tells Anna that immediate surgery will be necessary to stop the bleeding and save her tooth. She is immediately prepped for surgery. While she is unconscious, the surgeon mistakes her for another patient and amputates her right leg.
Scenario 3: Franco is an agent for SureCo, Inc., an independent insurance agency that offers policies from several insurance companies. With the economy in crisis, SureCo is experiencing hard times. The boss tells the agents that if they do not start selling insurance policies, the agency is going to shut down and everyone will be out of a job. Franco needs this job badly, and starts calling his customers to see if he can sell some policies. He calls Raul, and tells Raul that if he increases his coverage at present rates, Franco will guarantee that the premiums will never go up. He tells other customers the same thing, and many take advantage of the offer to increase their coverage and lock in at the present rates. The commissions start rolling in, and the boss is pleased. 
A year later, when customers get bills for policy renewals, they are irate to see that premiums have gone up. The boss finds out for the first time what Franco has done when she is served with a lawsuit filed by a customer. She yells at Franco, and demands that he clear out his desk. She has security escort Franco out of the building in front of the other agents, who are shocked. When asked by the other agents about what happened, the boss tells them Franco was fired for stealing. 
Raul decides to get back at the agency, and marches up and down the street in front of the agency with a big sign that says, “SureCo cheats its customers!” The boss cannot let this continue, so she takes a staple gun, goes outside, and fires it in Raul’s direction, hoping to scare him away. Unfortunately, she misses and hits Raul in the eye, causing permanent blindness in that eye.
Scenario 4: Randy is a sales clerk at Buy-Mart, a huge discount store. He works in the hardware and gun department. One day, Lee asks to look at a rifle. Randy unlocks the case and hands Lee the rifle he wanted to see. Lee examines the rifle, and tells Randy he will take the rifle and a box of bullets. Randy puts the bullets on the counter, and turns to ring up the transaction. While Randy is not looking, Lee opens the box, loads the rifle, aims, and shoots a lady who is walking with a man in the next aisle. Upon seeing his wife fall, the man clutches at his chest and has a heart attack.
Lee aims at someone else, but Randy tackles him and knocks him down, spoiling his shot. The bullet ricochets off a metal beam and injures a boy. Randy and Lee struggle until Randy knocks Lee unconscious. The store security guard comes over and, in the heat of anger, kicks the unconscious Lee in the ribs. Randy can hear Lee’s ribs breaking. Randy and the security guard manage to lock Lee in a storage room until the police come. For some reason, the police do not arrive for two hours. Before they get there, Lee comes to and bangs on the door, saying he needs medical attention. The security guard tells Lee, “Be quiet or I will break more of your ribs.” Lee does not get released from the closet until the police arrive to arrest him.


Week 4:

Learning Team Assignment: Foodmart, Inc. Paper

Foodmart, Inc. is a retail grocery store chain based in Any State, U.S.A. Foodmart has stores throughout the United States. Brian McDonald works as the produce manager for the store in My Town, U.S.A. Jeremy Atwater, 17 years old, is spending his summer vacation working for Brian in the produce department.
Write a 1,050- to 1,750-word paper with detailed answers to the following scenarios:
o Foodmart contracted with Masterpiece Construction to renovate the store on Main Street in My Town. Masterpiece, unable to complete the renovation within the 6-month time limit due to an increase in new contracts, subcontracted the job to Build Them to Fall Construction. Foodmart was unaware of the subcontract. When Foodmart realized, due to the poor quality of work, that Build was handling the renovation, Foodmart petitioned the court for an injunction and sued Masterpiece for breach of contract and specific performance. Masterpiece argued that it had a right to delegate the duties of the contract, or to discharge the contract due to commercial impracticability. Who wins? Explain your answer. Summarize the legal defenses to contract formation and enforcement.
o At the end of the summer, Jeremy Atwater earned enough money to put a down payment on a car. He decides to continue working part-time during school to earn money for the car payments. Jeremy purchased a car from Smooth Sales Used Cars. Smooth did not ask Jeremy how old he was; the salesman assumed he reached the age of majority. Jeremy paid the down payment and signed a contract stating that he would make payments of $200 each month. Six months later, Jeremy lost his job and could no longer make the payments. Jeremy took the car to Smooth and said he wanted to cancel the contract, and that he wanted his money back. What are the possible outcomes? Compare and contrast potential legal and equitable remedies.
o Brian McDonald spent his time away from work on his hobby, model trains. His train set was large and consisted of rare and one-of-a-kind trains. One day, while visiting with fellow train hobbyist Harry, Brian said, “When I retire in 2 years from Foodmart, I’m going to sell my trains and spend the rest of my life traveling on real trains.” Brian told Harry that he was the only person he planned to offer his trains to, because he knew Harry would take care of them. Harry said he looked forward to the day when he could buy the trains. Harry spent the next 2 years and most of his savings building a new 2,000-square foot room onto his house to make room for the trains. When Harry told Brian he was building the new room, Brian just smiled. Brian also heard that Harry borrowed money from his aunt to buy the trains. When Brian retired, he sold his trains to his neighbor, James. Harry sued Brian, claiming breach of contract, or in the alternative, for promissory estoppel. Who wins? Explain your answer.
o Foodmart has recently developed an online ordering service for home delivery within a 10-mile radius of each store. To use the service, Foodmart requires customers to agree to terms and conditions of a contract when first entering an online order. The contract specifies that advertised sales prices do not apply to online purchases, and orders are limited to inventory on hand at the nearest store. Todd sees a Foodmart newspaper advertisement for a chocolate sauce that is discontinued at a reduced price. The sauce is a key ingredient in a special cake recipe he uses in his catering business. Todd attempts to make an online purchase of all the remaining sauce at the store nearest to him. The store advises it has sold out, even though it has 10 cases in inventory. Todd requests that the store obtain the chocolate sauce from two other stores within the 10-mile radius. Foodmart refuses, citing the contract. Todd sues, claiming the contract is not effective and he should receive all available chocolate sauce from all three stores at the sales price, or he should receive damages equal to the amount of money he would have made from selling cakes made with the chocolate sauce. Who wins? Analyze the contractual issues unique to e-commerce.


Week 5:

Individual Assignment: Business Entities, Laws, and Regulations Paper

Restaurant/bar: Lou and Jose plan to open a sports bar and restaurant where customers socialize and watch sporting events on large-screen TVs that hang around the bar. They do not have much money, but they do have Miriam, a wealthy investor who does not have time to participate in the business, but wants to provide capital to start the business in return for a percentage ownership.
Extermination business: Frank is a wealthy investor who plans to open a chain of exterminating businesses across the United States.  
Professional practice: Akiva and Tara have just completed all educational and experiential requirements to be licensed as obstetricians. They want to open a birth clinic together. They will take out a large loan to finance start-up costs.
Construction Scenario: Mei-Lin is the hiring manager for Surebuild, Inc., a new construction company. She has advertised a position as a jackhammer operator. The position’s description states that the successful applicant must have a high school diploma. The following people apply for the position: Michelle, 35, who appears to be pregnant, is a high school graduate, and was formerly employed as a jackhammer operator; Eric, 55, who is experienced with a jackhammer, but has no high school diploma; Felipe, who is 38, speaks no English, has no high school diploma, but is experienced with a jackhammer; and Nick, 23, a college graduate who is epileptic, and has no experience with a jackhammer.
Write a 1,050- to 1,400-word paper, discussing two of the above businesses, and the Construction scenario. For each business, discuss the business entity that represents the best choice for each business, taking control, taxation, and liability issues into consideration. Identify laws and regulations each business must consider in starting the business, and identify risks against which each business must protect itself. For the scenario, discuss the above elements, and identify and discuss the employment laws and regulations with which the business must comply in making a decision.


BUS 415 Final Exam # 1

Part One - Multiple Choice

Please choose the correct answer. Each question is worth one point.


1.     The concept of flexibility in the law is best illustrated by:

a.     The use of precedent to decide similar cases in similar ways.

b.     The ability to overturn precedent when it is no longer valid or when it is erroneous.

c.     The use of appointed judges rather than elected judges.

d.     Imposing mandatory penalties for criminal violations.


2.     Assume that there is a provision in the Colorado state constitution that is in conflict with a statute that was passed by the U.S. Congress and enacted into law. Which is true?

a.     The Colorado constitutional provision will control; the federal statute is invalid.

b.     The federal statute will control and make the state constitutional provision invalid.

c.     In Colorado, the Colorado constitutional provision will control over the statute passed by Congress, but the federal statute will apply in the other 49 states.

d.     Within Colorado, whichever was passed first will control over the other.


3.     The concept of standing requires that:

a.     Parties appear in person in order to present their cases.

b.     A plaintiff has a stake in the outcome of a case.

c.     Parties must always be represented by a properly admitted member of the bar.

d.     Both parties must always be given a chance to appeal once a judgment has been entered.


4.     When an appellate court receives a case appealed to it, it will:

a.     Retry the case with a new jury.

b.     Review the jury’s verdict to see if the appellate court judges would have reached the same result.

c.     Retry the case with the appellate court judge acting as the jury.

d.     Review the record of the trial court to see if there were any errors of law made by the judge.


5.     A business that continues to operate its domestic factories in order to avoid layoffs rather than shift its production overseas at lower cost is most directly applying which theory of the social responsibility of business?

a.     Moral minimum.

b.     Maximizing profits.

c.     Stakeholder interests.

d.     Corporate citizenship


6.     Which of the following is true regarding contract validity?

a.     A void contract is one where a party has the option to avoid her contractual liability.

b.     A voidable contract is one in which a party may avoid her obligation under that contract.

c.     A voidable contract is one that has no legal effect because one of the essential elements is missing.

d.     An executory contract is also unenforceable.


7.     Under which of the following circumstances can the mistaken party rescind a contract when there is a unilateral mistake?

a.     The mistaken party first held the mistaken belief prior to entering into the contract.

b.     The mistaken belief is one that a reasonable person would have made.

c.     The nonmistaken party was aware of the mistaken party’s belief.

d.     The mistake has a material effect on the value of the contract.


8.     Patty owned a sole proprietorship. She had four salespersons selling the company’s products. One of her salespersons made false statements about a competitor’s products while trying to sell Patty’s products. The competitor sues Patty’s business and wins the lawsuit. Under what circumstances could Patty be personally responsible to pay the judgment?

a.     None, because this was a debt of the business.

b.     If Patty was separately named in the lawsuit.

c.     If Patty knew about the salesperson’s activities.

d.     Patty is liable here regardless of any other circumstances.


9.     Mark recently started a small business, and acquired a domain name for the business. At the same time he remembered hearing about people buying up names related to companies and famous individuals and then selling the names for astronomical sums. Mark wants to buy the domain name, “” He figures he will start a fan club for the famous movie star, and then see if he can sell the domain name to her for a profit. Which is true in these circumstances regarding Mark’s options?

a.     He will be unable to buy the name because it is the name of a person.

b.     He will have to give Sharon Stone the first opportunity to buy the name.

c.     He could buy the domain name, but could be liable under the Anticybersquatting Consumer Protection Act if it is proven that he acted in bad faith in acquiring the name.

d.      He could buy the domain name, but could be liable under the Anticybersquatting Consumer Protection Act if it can be proven that he acted in bad faith in acquiring the name and only if Sharon Stone can prove that she suffered damages from his Web site.


10.     Which of the following is true?

a.     All employees are agents, and no independent contractors are agents.

b.     All employees are agents, and some independent contractors are agents.

c.     Some employees are agents, and some independent contractors are agents.

d.     Some employees are agents, and no independent contractors are agents.


11.     Which of the following is true if someone believes that he was fired from a job because of his religion?

a.     He must prove that the person who fired him is of a different religion.

b.     He must first file a complaint with the Equal Employment Opportunity Commission.

c.     He will not have a claim if the employer has a disproportionately high number of employees of the same religion as his.

d.     He must prove that he is a reasonably active practitioner of his religion.


12.     Under what conditions must an employer allow nonemployee union solicitation on company property?

a.     If there is currently no union representing the company’s employees.

b.     If the employees live in a company town such that it would be difficult to solicit the employees off company property.

c.     If the purpose is to solicit employees to change union representation rather than to solicit nonunion workers to join a union.

d.     If the purpose of the union is to address issues other than wages.


13.     If a party has presented a complaint to the Equal Employment Opportunity Commission about alleged discrimination in violation of the Civil Rights Act of 1964, and the EEOC decides to not bring a suit on behalf of the employee, the EEOC will issue a(n):

a.     Order of dismissal of the complaint.

b.     Notice of the complainant’s right to appeal to the appropriate court of appeals.

c.     Judgment in the employer’s favor.

d.     Right to sue letter.


14.     Bob, an employee of Risky Manufacturing, Inc., is accidentally injured by a fellow worker while working his shift. Under workers’ compensation, Bob can:

a.     Sue Risky or seek workers’ compensation recovery, but not both.

b.     Sue Risky or seek workers’ compensation recovery.

c.     Seek workers’ compensation but not sue Risky.

d.     Recover from workers’ compensation only if Risky was negligent in allowing the injury to occur.


15.     Paul purchased a deluxe motor home from Wide Open Spaces Motor Homes. In a product liability suit against Wide Open Spaces Motor Home Corporation, Paul must show which of the following in order to recover?

a.     That Wide Open Spaces was the manufacturer of the motor home, and not just a dealer.

b.     That the negligence of Wide Open Spaces led to Paul’s injury.

c.     That a “defect” made the motor home unreasonably dangerous, leading to the injury.

d.     That Paul was not misusing the motor home when the injury occurred.


16. Jed owns a small but growing manufacturing company. Jed had enjoyed a good relationship with his production workers until recently. Now there is to be an election to join a national union that will be held in two weeks. Jed has implemented a policy that there will be no solicitation of employees on company property. Which of the following is true?

a. Jed must allow solicitation of his employees any time they are at work.

b. Jed must provide his employees with time off in order to learn about the union's side of the issue.

c. Jed must allow anyone to solicit his employees while they are on breaks or at lunch.

d. Jed must allow on-duty employees to solicit other employees, but can limit it to nonwork areas such as break rooms this sheet can be helpful:


17.     Which is true about the two kinds of discrimination that are actionable under Title VII?

a.     Disparate impact and disparate treatment are both based on how an employer treats a specific individual.

b.     Disparate impact and disparate treatment are both based on how an employer treats a protected class.

c.     Disparate treatment refers to individuals and disparate impact refers to protected classes.

d.     Disparate impact refers to individuals and disparate treatment refers to protected classes.


18.      The Labor-Management Reporting and Disclosure Act prohibits which of the following from holding union office?

a.     Ex-convicts and communists.

b.     Ex-convicts and resident aliens.

c.     Resident aliens and women.

d.     Communists and women.


19.     Which of the following is not true about the United Nations?

a.     It was founded in 1918 at the end of the First World War.

b.     Most nations of the world are members.

c.     There are only five permanent members of the Security Council.

d.     It contains a number of autonomous agencies that deal with specialized problems.


20.     Under merchant protection statutes:

a.      Reasonable grounds for detainment are necessary only if the period of detainment is long.

b.     The length of detainment is not relevant if there are reasonable grounds for detainment.

c.     Any investigations and the period of detainment must both be reasonable.

d.     Merchants do not have a duty to investigate suspected actions of the suspect because

this is the duty of the police.


21.     Which of the following is true about the tort of invasion of the right to privacy?

a.     The tort is actionable only by public figures.

b.     True statements or facts that are disclosed can support a claim for the invasion of the right to privacy.

c.     Once a fact has become public, its disclosure cannot thereafter support a claim for the invasion of the right to privacy.

d.     The tort requires that the defendant entered the plaintiff’s home or place of business to acquire the information that was disclosed.


22.     Which of the following is true under the implied warranty of fitness for human consumption?

a.     The majority of states use both tests in determining whether the warranty has been breached.

b.     The consumer expectation test imposes a higher standard on sellers of food than the foreign substance test.

c.     Under the consumer expectation test, any item in food that causes injury will entitle the injured party to recover from the seller of the food.

d.     The trend is for more states to adopt the foreign substance test.


23.     Which of the following would not be a misappropriation of a trade secret?

a.     Paying an engineer who is working at a competitor to disclose the trade secret to you.

b.     Buying the competitor’s product, then tearing it apart and analyzing it in your laboratory to reveal the trade secret.

c.     Hiring a spy to break into a competitor’s offices to acquire the secret.

d.     Asking one of your current engineers to disclose a trade secret of her former employer, which she then does.


24.     An inferior trial court is one that:

a.     Hears matters of a limited or specialized nature.

b.     Has had a larger than normal portion of its decisions overturned on appeal.

c.     Has an appointed judge rather than an elected judge.

d.     Has a judge of a political party other than the party in power.


25.     If the U.S. Supreme Court reaches a tie decision:

a.     The case will be reconsidered in the following year.

b.     The decision will be held in abeyance until one of the justices decides to change his or her mind.

c.     The case will be returned to the Circuit Court of Appeals to reconsider the case in light of the tie decision by the Supreme Court.

d.     The lower court decision in the case is affirmed.


Part Two – Short Essay

Please provide a written answer to each question in a separate document that you will post in your Individual forum. Your response to each question should: 1) identify the issue(s) (“This question is about…”; 2) define any relevant terms (“Apparent authority is…); 3) an answer or resolution to the question (Under these facts, there is no contract.); and 4) explain how/why you reached your conclusion (“One of the necessary elements of a contract is missing – consideration. There is no consideration because…”)


Each question is worth two points and you will receive partial credit for partially-correct responses.


1.     Max took his family and a couple of friends out to one of the best restaurants in town to celebrate his recent promotion. Unfortunately, several of his family members suffered injuries from items in the food that night. First, Max broke a tooth on an olive pit in one of the olives in his Greek salad. Shortly thereafter, Max’s wife was injured by a piece of glass in her soup. Then one of Max’s friends was hurt by some sharp bones in his salmon filet. One of Max’s daughters was hurt by an olive pit that was in her mashed potatoes. His other daughter was hurt by a crusty chicken foot in her chicken salad sandwich. Wanting to salvage some aspect of the evening, Max stopped at an ice cream shop on the way home. Upon biting into his ice cream, Max broke another tooth on a piece of bone from a cow. The next evening, as Max was straining his dinner before eating it, he wondered which problems from the prior night would support a breach of warranty claim.


2.     One night at a restaurant, Mark and Mary wrote up an agreement on a couple of napkins about a construction project whereby Mark would build a room addition to Mary’s house. Mark said he would do this in exchange for Mary agreeing to transfer an empty piece of land that she owned to Mark. It took two napkins because the agreement would not fit on a single napkin. Mark signed one of the napkins, but Mary signed neither. The contract price was $30,000. A few days later Mark saw the plans, which were more complex than he expected. Discuss the enforceability of this contract.


3.     Roberto has been asked to be a member of Holtin's board of directors. He is concerned about potential personal liability for actions as a director. Discuss ways in which Roberto can protect himself against personal liability.


4.     Monty was an odd sort of fellow who spent most of his time tinkering in his garage. He was certain that some day he would invent something that would make him very wealthy. Finally, he thinks he has the million-dollar idea. He has invented a device that attaches to both his phone line and through his computer to the Internet to block telemarketing calls without having to pay a service fee for the capability to the local phone company. The technology for this already existed, but Monty was the first to put it together in this way. Monty is waiting to perfect this invention before filing a patent application. Monty learns that someone else has invented a similar device after he did, but has already filed an application. Also, someone broke into Monty’s garage and stole the information about the invention. Discuss Monty’s legal situation.


5.     Sam is a sales representative for a pharmaceutical firm. Sam frequently plays golf with his clients and potential clients. One summer weekend when he is on vacation at his family’s home in Myrtle Beach, Sam runs into a couple of his clients who are attending a medical convention. They arrange to meet and play golf on Sunday. While on the sixth hole, another golfer tees off prematurely and Sam is struck in the head by a golf ball. Can Sam recover under workers’ compensation? What remedies are available to Sam?



BUS 415 Final Exam # 2


1. T F     Agency law is a mixture of contract law and tort law.




2. T F     One characteristic of independent contractors is that they cannot enter into contracts on behalf of the principal.




3. T F     The principal has a duty to compensate any agent, including a gratuitous agent.




4.     Which of the following is generally true about a relationship where one party works for another?

a.     A party can simultaneously be an employee and an independent contractor.

b.     A party can simultaneously be an employee and an agent.

c.     A party can simultaneously be an independent contractor and an agent.

d.     Both B and C are true.


5. T F     The test whether an employee can recover under workers’ compensation is whether the injury resulted from the negligence of the employer.




6. T F     All full-time employees are covered under the Family and Medical Leave Act if they have worked for the employer at least one year and have performed more than 1,250 hours of service during the previous 12-month period.




7.     Under workers’ compensation, when an employee is accidentally injured on the job:

a.     A worker can sue the employer in addition to recovering from workers’ compensation, but only if the employer intentionally caused the injury.

b.     A worker has the choice of whether to file a normal lawsuit or recover from the workers’ compensation board.

c.     A worker can file a normal lawsuit and recover from the workers’ compensation board.

d.     Whether the injury occurred in the course of employment is not relevant.


8.     Which of the following statements is not true under the Fair Labor Standards Act?

a.     Children under 14 cannot work at all, except on farms.

b.     Children ages 14 and 15 may work limited hours in nonhazardous jobs.

c.     Children ages 16 and 17 may work unlimited hours in nonhazardous jobs.

d.     Persons age 18 or over may work unlimited hours in nonhazardous jobs.


9.     Which of he following is not a purpose of ERISA?

a.     For employees to have access to certain information about their pension plans.

b.     To make certain that pension plans have certain minimum amounts placed into them by employers.

c.     To limit or prevent employees from losing pension benefits if they decide to leave an employer.

d.     To ensure that as many companies as possible provide pension plans for their employees.


10.     The purpose of the Form I-9 under the Immigration Reform and Control Act of 1986 is:

a.     For the employer to attest to having inspected an employee’s documentation showing that the employee is entitled to work in the United States.

b.     For the employer to grant a waiver from work visa requirements for foreign workers.

c.     For the employer to document illegal aliens working in the United States.

d.     To document that the employer is complying with the Civil Rights Act of 1964 with respect to employment discrimination on the basis of national origin.


11. T F Federal antidiscrimination laws (Title VII) do not prohibit discrimination based on

sexual preference or orientation.




12. T F The key to whether the equal pay act applies to two workers is if the jobs are equal and





13. T F A 35-year-old employee who is fired because his employer incorrectly believes he is

too old to do his job does not have a valid age discrimination claim.




14.     The Equal Employment Opportunity Commission has the power to do the following except:

a.     Pass amendments to the Civil Rights Act of 1964 and other antidiscrimination statutes.

b.     File suits to enforce antidiscrimination statutes on behalf of complainants.

c.     Conduct investigations related to the antidiscrimination laws.

d.     Interpret antidiscrimination statutes.


15.     In a hostile work environment sexual harassment claim, the employer will have a successful defense if the employer can show that:

a.     The employer took reasonable care to prevent or correct the conduct and the employee did not take advantage of corrective or preventive opportunities of the employer to remedy the situation.

b.     The employee was offended by conduct that the employer in good faith did not consider to be offensive.

c.     There were no adverse consequences to the employee’s work status, such as a demotion or denied promotion.

d.     The employee stands to personally gain if the persons engaging in the sexual harassment are reprimanded.


16. T F The Norris-LaGuardia Act was enacted in 1932 to prohibit certain types of crucial

workers from being able to organize.




17. T F Employees may not be prohibited from engaging in union solicitations on company

premises when the employee is off duty.




18. T F A union is permitted to discipline its members for walking off the job in a

non-sanctioned strike.




19.     A right-to-work law generally provides that:

a.     Union membership is mandatory.

b.     Employees cannot be forced to join a union.

c.     Union employees cannot be laid off.

d.     Both union and nonunion employees cannot be laid off.


20.     What is a lockout in connection with labor law?

a.     An action by workers to prevent management from entering the company’s premises.

b.     An action by workers to prevent customers from entering the company’s premises.

c.     An action by workers to prevent suppliers from entering the company’s premises.

d.     An action by management to prevent workers from entering the company’s premises.


21) Which of the following statements best describes the workers' compensation rules?

A. The employer can avoid liability if the injured employee was contributorily negligent.

B. The employee will collect for all work-related injuries, and will not need to prove negligence on the part of the employer.

C. The employee has the choice to sue or proceed under the workers' compensation statute.

D. The employer is liable for employment related injuries only if negligent.


22) Company handbooks have been found to amount to a(n) ___________ exception to the employment at will doctrine.

A. apparant

B. public policy

C. contract

D. tort


23) An at-will employee being threatened with termination if the employee does not violate a law at the direction of the employer would be protected under which exception to the employment at will doctrine?

A.        Contract

B.        Criminal

C.        Tort

D.        Public Policy


24). Mallard Corporation is incorporated in Iowa and does business in Ohio. This corporation is:

a. A domestic corporation as to both Iowa and Ohio.

b. A foreign corporation as to both Iowa and Ohio.

c. A domestic corporation as to Iowa and a foreign corporation as to Ohio.

d. A domestic corporation as to Ohio and a foreign corporation as to Iowa.


25). Corporations are required to hold shareholders' meetings at least:

a. Annually.

b. Every six months.

c. Twice a year, but they are not required to be held every six months.

d. Quarterly.


26). Which of the following is not a characteristic of a corporation?

a. Unlimited liability of owners.

b. Free transferability of shares.

c. Perpetual existence.

d. Centralized management.


27). Under the business judgment rule:

a. Directors and officers have an obligation to exercise sound business judgment, and any failure to do so is per se negligence that results in liability to the corporation.

b. Directors and officers have an obligation to exercise sound business judgment, and any failure to do so results in a rebuttable presumption of negligence.

c. Directors and officers are never liable in suits filed against them by shareholders.

d. Directors and officers are not liable for honest mistakes of judgment.


28). Directors in a corporation are:

a. appointed by the shareholders

b. appointed by the officers

c. elected by the shareholders

d. elected by the officers


29). The board of directors of Rember, Inc. created the following committees: executive; audit; compensation; and investment. The audit committee would like John, a CPA, to be a member. John is not a member of the board of directors but he is a shareholder of Rember. Which statement is correct?

a. John cannot be a member of the audit committee because he is a shareholder of Rember.

b. John cannot be a member of the audit committee because he is not a member of the board of directors.

c. John can be a member of the audit committee because of his expertise in accounting.

d. John can be a member of the audit committee because he is a shareholder of Rember.


30). Mark is the treasurer of Sky-Hi-Tech Corporation, and as such, Mark is responsible for protecting the assets of the corporation. One of Mark's subordinates, Jill, is in charge of reconciling the monthly corporate bank statements. Over a period of several months, Jill embezzles a large amount of money from Sky-Hi-Tech, covering up the theft using her bank reconciliations. If Mark had adequately supervised Jill, she could not have embezzled this money. Mark's actions (or inactions) constitute a breach of his duty of:

a. Obedience.

b. Due care.

c. Loyalty.

d. Ultra vires.


31). What must be filed in order to form a limited liability company?

a. Nothing.

b. Articles of incorporation.

c. Articles of organization.

d. Certificate of limitation.


32). Which of the following best describes a franchise?

a. Two parties work together on a limited duration project or enterprise.

b. A business sets up numerous retail locations owned by this business that all have similar products or services.

c. A retailer pays a fee to operate a business using a particular name under a standardized general business plan, with the fee often being paid in the form of royalties.

d. A seller of products is in business long enough for its trade name to become widely recognized.


33). Which statement is true about franchisor liability for acts of a franchisee?

a. Franchisors are liable for acts of their franchisees in most circumstances.

b. Franchisors are never liable for the acts of their franchisees unless the franchisor was a party to the act of the franchisee.

c. Whether a franchisor is liable for the acts of its franchisee depends on the terms of the franchise agreement.

d. Franchisors are usually not liable for the acts of their franchisees, but can be liable if there is an apparent agency.


34). An agreement sponsored by an international organization that is signed and ratified by two or more nations is called a:

a. Treaty.

b. Convention.

c. Custom.

d. Charter.


35). What can a nation do if it disagrees with a decision made by the dispute settlement body of the World Trade Organization?

a. Appeal to the World Court.

b. Nothing, as these decisions are final.

c. Appeal to that nation's own national court system.

d. Appeal to the appellate body within the WTO.


36). What is the purpose of the European Union Directive on Data Protection?

a. To insure that accurate data on individuals is preserved for a minimum period of time.

b. To prevent data from citizens of European Union nations from being exported.

c. To provide broad consumer protections for the citizens of European Union nations for the data on them gathered by business.

d. To provide uniform standards for data backup protection.


37). Under the law, a tort can be described as:

a. Any violation of an ethical duty.

b. Another term for a crime or misdemeanor.

c. Any action done in violation of a prior agreement that allows the victim to recover


d. Any civil wrong that allows the injured person to recover damages.


38). Which of the following statutes provides that it is legal for employees to organize?

a. The Norris-LaGuardia Act.

b. The National Labor Relations Act.

c. The Labor-Management Relations Act.

d. The Worker Adjustment and Retraining Notification Act.


39). The best description of misappropriation of the right to publicity is:

a. Claiming credit for the accomplishments of another.

b. Publishing the creative work of another and claiming that it is yours.

c. Publicly claiming to have accomplished something that you have not accomplished.

d. Attempting to use another living person's name or identity for commercial purposes without that person's consent.


40). Guest statutes provide that:

a. Innkeepers have a duty of utmost care to their patrons.

b. A driver who has voluntarily given a ride to a passenger without compensation is

not liable to the passenger for ordinary negligence.

c. Someone serving alcohol to guests in the home is liable if the alcohol causes the guest to become intoxicated and injure another person while intoxicated.

d. Tavern owners are strictly liable for alcohol related injuries caused by tavern guests who were served alcohol at the tavern.


Discussion Questions

Week 1:

What is a business’s obligation to build an ethical culture and balance its desire for profit with ethical responsibilities to employees, customers, society, and the environment?

Miguel buys a truck in Texas, then moves to Washington. A year later, he is driving his truck in Oklahoma, and causes an accident by running into another car, whose driver is from Florida. In what states will the other driver be able to sue Miguel? State the reasons for your answer.


Week 2:

Mary is cutting weeds at her home. She is unable to trim some weeds she finds, because they grew between the rocks, so she removes the protective guard on the weed trimmer and trims the weeds. There are no warnings on the weed trimmer advising against removing the guard. She hits a rock, which is thrown to the side, hitting her neighbor in the eye and causing permanent damage. What kind of tort claim does the neighbor have? Who are the possible defendants?

Felix is a school bus driver. He is driving children home from school one day, when he is distracted by a fight in the back of the bus. He turns to see what is happening behind him, and accidentally strikes and kills two twins riding bicycles in the bike lane. One twin is a brain surgeon, and the other is a garbage collector. Each has dependents. Explain how damages will be calculated for each victim, and why the families will collect different amounts. Is this a fair system? Why or why not?

Paulette is the owner of the Rock On Mobile Home Park. For several years, Albert regularly collected rent for Paulette from the tenants of the mobile home park. Recently, Paulette learned that Albert pocketed some rent he collected, so Paulette fired Albert, and revoked his authority to collect rent payments from tenants. However, neither Paulette nor Albert told any tenants of Albert's termination. Yesterday, Albert went around to Theresa’s mobile home and asked for the rent. Theresa paid Albert the money owed to Paulette. Albert never gave this money to Paulette. Is Theresa liable to pay Paulette? Why or why not? What legal principle did you apply? Discuss an agent’s obligations toward his principal.


Week 3:

Hazel is 84, and suffers from debilitating arthritis. Sometimes, she can barely walk. Every time Hazel has been unable to get around, her neighbor Ruth cooks and cleans for her until she feels better. Hazel has offered to pay Ruth, but Ruth always declines. One day when Hazel is feeling well, she and Ruth eat out in a restaurant, and Hazel tells Ruth she is going to leave her $50,000 in her will. Six months later, Hazel dies without leaving a will. Can Ruth successfully sue Hazel’s estate for $50,000? State the legal reasons for your answer.

What is the purpose of the Uniform Commercial Code (UCC)? What types of transactions are covered by the UCC? What problems was the UCC designed to address? How would interstate transactions be different without the UCC? Provide an example.

Distinguish between a joint tenancy and a tenancy in common with regards to real property. What are the differences in the owners’ rights and obligations between the types of ownership?


Week 4:

Elaine and Roy are registered nurses. They want to start a home health agency, taking referrals from physicians and providing health care to homebound patients. They plan to be in business for 10 years. Identify the reasons why incorporation is an effective idea for their business, the steps they must take to incorporate their business, and the steps they must take to dissolve the corporation once the 10 years has passed.

Tom inherited his father’s landscaping business, and incorporated the business after he read an article in Lawn News, advising landscaping businesses to incorporate. Tom has been sued by a customer, whose prize rose bushes were accidentally damaged by a landscaper. Tom called his attorney, Hector, to represent him in the lawsuit. When Hector asked for the corporate minutes, Tom said, “What corporate minutes?” Hector advised Tom that his personal assets could be taken if he lost the suit, but Tom said, “No, don’t worry! I’m a corporation; I have no personal liability!” Is Tom correct? Identify and discuss the legal principle that would be applied by a court to resolve this issue, and predict the outcome of the suit against Tom.


Week 5:

What is the chronological order of the major legislation that makes up the history of employment law in this country? For each law, state the social problem the law was designed to address, and discuss how employment law has affected the workplace in the last two decades.

Your employee, Tom Smith, believes women are treated as inferiors in the department where he works. He has complained to his supervisor, Doug Greer, who is also your employee, and to the Equal Employment Opportunity Commission. Greer has responded by reducing Smith's salary and opportunities for overtime. Does Smith have a case against your company? If so, describe his cause of action and what he must prove to recover.

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