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Chapter: 16 -Problem: 5 >> Lack sued his former employer, Walmart, and his former supervisor, Bragg, for sexual harassment. He contended that Bragg made “inappropriate and demeaning statements … of a sexual nature” and told vulgar jokes in front of Lack and others. When Lack complained, he suffered retaliation as Bragg made “his work schedule more burdensome and inconvenient.” Wal-Mart ignored the problem. Other employees t
Answer Preview: Reversed. To sustain a sexual harassment claim based on a hostile work envir…

, Chapter: 14 -Problem: 8 >> Neering was driving a truck for East Coast Furniture when he was in a minor accident with Valeo. Neering and Valeo pulled off the road and got into an argument. Neering hit Valeo with a padlock, inflicting injury on his eye. Valeo said Neering hit him for no good reason. Neering said he was afraid Valeo was going to steal the truck. Valeo sued East Coast for vicarious liability. Would it be liable
Answer Preview: The court held that the employer did not owe a duty to Valeo, so t…

, Chapter: 13 -Problem: 10 >> When Darby filed for Chapter 13 bankruptcy, his cable provider cut off service. He offered assurance to the cable provider that monthly payments would be made, but the company refused connection. He requested the court to order that cable be provided as a necessity. Do you think cable falls in the category of a needed utility?
Answer Preview: No. The court noted that minimal bu…

, Chapter: 9 -Problem: 2 >> 1. Martin worked for AMA, a firm that designs and administers retirement plans for 500 clients. The client list is confidential, but no agreement about that existed. When Martin left AMA after five years, he set up a competing firm and successfully solicited 15 AMA clients based on information of who they were from his memory. AMA sued for theft of trade secrets. The trial court awarded AMA damage
Answer Preview: 1. Affirmed. Information that is a trade secret does not lose its character as a trade secret if it has been memorized. The Uniform Trade Secrets Act …

, Chapter: 10 -Problem: 1 >> Jones walks into a grocery store, puts 75 cents down on the counter, and says, “A Coke please.” Under contract law, what has just occurred? If the grocery store owner takes the 75 cents, what type of contract has been agreed upon?
Answer Preview: By placing fifty cents on the counter and uttering th…

, Chapter: 15 -Problem: 9 >> Club Orleans was a “gentlemen’s club” in Kansas. The owner classified dancers as independent contractors. They worked for tips from customers. A former dancer filed a claim for unemployment compensation. The state investigated and ruled that the club should be paying wages and, therefore, the former dancer could qualify for unemployment compensation. The state held that the dancers had to follow r
Answer Preview: State wins; the dancers are employees. They are subject to the right of control by the ow…

, Chapter: 12 -Problem: 2 >> Simons hired NSC, a corporation wholly owned by Sorensen, to build a home. After completion, Simons complained of many problems and demanded NSC cover the cost of the defects. Sorensen refused. Simons hired another company to do the work, sued NSC, and was awarded $270,000. NSC did not have sufficient funds to pay the award, so Simons sued Sorensen personally, contending that the corporate veil sh
Answer Preview: No. The fact that NSC has few assets does not mean the veil …

, Chapter: 10 -Problem: 3 >> The Metropolitan Museum of Art in New York City is one of the best in the world. Under an 1893 law, it must admit the public free of charge five days and two evenings a week. The Met has a long practice of posting a sign at all times at the entrance that says $25 admission. In small letters, it says “recommended.” About half of the visitors pay that amount, many not knowing they do not have to pay
Answer Preview: The Met admits the signage is rather unclear since it says …

, Chapter: 11 -Problem: 2 >> 1. Eureka Water in Oklahoma sold “Ozarka” branded water that it bottled and distributed for Nestle Waters. The companies got into a dispute. Would this case fall under the UCC or the common law? Much of the value of the contract arose from the use of the Ozarka trademark, but most of the work involved bottling and distributing water.2. Terra, a German company, had a contract with Unitrans, an Amer
Answer Preview: 1. The common law of Oklahoma applies. The contract did not specify which law governed, so …

, Chapter: 15 -Problem: 7 >> Callison used all his sick leave and was on the city Sick Abuse List. When he took FMLA leave, the city required him to be at home during working hours unless he reported where he would be otherwise. A city employee would call to check on him. He was often not at home and was suspended for failing to follow the policy. He sued, contending that when he was on FMLA leave he did not have to report wh
Answer Preview: The FMLA does not give unlimited discretion leave. An employer …

, Chapter: 14 -Problem: 9 >> Meyers, an at-will employee, complained to his employer that he was not being paid overtime when he should have been. He was fired, he claimed, for making that complaint. He sued for improper discharge because he claimed to have a right to overtime pay. What basis would he have for that claim, and do you think it would stand?
Answer Preview: Meyers has no case. He asserted there was a …

, Chapter: 18 -Problem: 5 >> Ginsburg was CEO of a company. When his company was planning to merge with another company, he told his father and brother of the deal. His relatives made a million dollars in profit by buying stock in the companies involved in the merger. Ginsburg himself did not profit but was charged with illegal insider trading. Because he did not profit, would the charges stick?
Answer Preview: Yes. He was convicted and ordered to pay …

, Chapter: 10 -Problem: 2 >> BP sells gasoline under various brands. It sold a gas station to Stanley. The sale agreement stated that Stanley would only sell BP-branded gas for 15 years. After four years, he switched to another brand. BP sued for breach. Stanley claimed the restrictive covenant was commercially unreasonable. Would it be upheld?
Answer Preview: The covenant was upheld; it was not too broad. Stanley could use his propert…

, Chapter: 21 -Problem: 6 >> A company was sued for violating the Clean Water Act by exceeding its NPDES permit at various times. It defended that at some periods it reported more discharge than actually occurred, so it should receive offset credit for the times it discharged less than it was allowed. Would that argument likely work?
Answer Preview: In general no. The firm may show that its operati…

, Chapter: 1 -Problem: 2 >> 1. Facts from an English judge’s decision in 1884: “The crew of an English yacht … were cast away in a storm on the high seas … and were compelled to put into an open boat…. They had no supply of water and no supply of food…. That on the eighteenth day … they … suggested that one should be sacrificed to save the rest…. That next day … they … went to the boy … put a knife into his throat and killed
Answer Preview: 1. This points out that the legal system has limits. Its acceptability is dictated by legal culture--which determines whether law will be enforced, obeyed, avoided, or abused. It is limited by the inf…

, Chapter: 8 -Problem: 2 >> 1. Peterson operated a private golf course. In 1964, he sold property next to the golf course, including a restaurant and parking lot, to AL. The parking lot was used by the golfers on Peterson’s golf course and by restaurant patrons. In 1978, AL sold the property containing the parking lot to VBC. Peterson had always maintained the parking lot. In 1992, VBC demanded Peterson pay rent for the use
Answer Preview: 1. Peterson does not get the parking lot by adverse possession but has an implied easement to use th…

, Chapter: 1 -Problem: 3 >> 1. The federal tax code is riddled with special-interest loopholes. Most of these exist because firms and trade associations lobby Congress and provide campaign support to members of Congress to gain special favors to individual firms or industries. Is it ethical for firms to seek special privilege? 2. “Fair trade” goods have become popular, as some people are willing to pay more to know the goods
Answer Preview: 1. The nature of our political system forces firms to participate in the political process. Those th…

, Chapter: 20 -Problem: 9 >> The National Football League (NFL) is an association of 28 corporations (the football teams). They had dealt with various companies to make NFL-branded clothing and hats but decided to give an exclusive contract to Reebok. A company that lost the chance to make trademarked gear sued, contending it violated the Sherman Act for all teams to deal with just one company. The teams defended that because
Answer Preview: No. The Court held that the 28 firms were acting in concert through a …

, Chapter: 1 -Problem: 1 >> Should the common law maxim “Ignorance of the law is no excuse” apply to an immigrant who speaks little English and was not educated in the United States? How about for a tourist who does not speak English? Everyone knows criminal acts are prohibited, but what about subtler rules that differ across countries somay be misunderstood by foreigners?
Answer Preview: It is generally true that ignorance of the law is no excuse. Citizens are deemed to have constructiv…

, Chapter: 14 -Problem: 10 >> The Taylors stayed at a resort in New York in the winter. They wanted to take a snowmobile tour, so the hotel arranged for a snowmobile touring company to provide the service for the Taylors. Mr. Taylor was killed when the snowmobiles crossed a road and a car hit him. Mrs. Taylor sued the hotel, contending that the snowmobile operator was an apparent agent of the hotel and that the hotel could be
Answer Preview: The appeals court held it was for the jury to determine if the principal (hotel) c…

, Chapter: 16 -Problem: 3 >> Nelson worked for Dr. Knight as a dental assistant for 10 years. There was some sexual banter, but Nelson did not regard it as serious. Knight’s wife demanded Nelson be fired because she could be a threat to their marriage, so Knight fired Nelson, who then sued for sex discrimination. Do you think she had a case?
Answer Preview: No, it is not the court said. She wa…

, Chapter: 21 -Problem: 8 >> A company ran a hazardous waste disposal and recycling operation. Several companies sent their hazardous wastes to the site. The facility was improperly managed: waste was dumped on the ground, chemicals were mixed, and records were not kept about what was there. The EPA cleaned up the site under Superfund and sued the companies that sent their waste to the site because the owners of the site coul
Answer Preview: The defendants were found liable by the trial court under CERCLA as owners, op…

, Chapter: 20 -Problem: 11 >> When more employers were required to provide healthcare benefits for employees, eight restaurants in the Los Angeles area all added a 3 percent surcharge to their bills, explaining to customers that the sum was needed to cover the cost of healthcare benefits. A class action suit was filed against the restaurants contending they were engaged in illegal price fixing in violation of antitrust law. Is
Answer Preview: One can take various positions on this. There is no reason w…

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