Legal Environment of Business Quarter 2

Sean buys a franchise from Taco Mission Inc. This relationship, like all other franchise relationships, is governed by

all of the choices.

Eugene, an accountant, convinces his client Faye to enter into a contract to invest her savings in Gather, a non-existent social media site. There is clear and convincing evidence that Faye did not act out of her free will. This is

undue influence.

National Trucking Company begins transporting crude for Oil Inc. under a contract for a stated amount per load. After six months, National demands an increase in the stated amount because ordinary business expenses have increased. Oil's agreement to pay the increased amount is

unenforceable due to the preexisting duty rule.

Like most successful companies, Phones Inc. has trade secrets. The law protects those secrets if the information is

unique and has value to a competitor.

Anton enters into an agreement with Burgers Inc. to operate a franchise in Centre City. Later, the franchisor grants franchises to others within the same territory, causing Anton to suffer a significant loss in profits. In Anton's suit against the franchisor, his best argument is that Burgers

violated the implied covenant of good faith and fair dealing.

Beau devises a scheme to send fraudulent e-mails—claiming that an arrest warrant has been issued for non-payment of taxes—to individual taxpayers. By these false pretenses, Beau intends to obtain money and personal data. This is

wire fraud.

Pay-Most Convenience Stores, Inc., is a franchisor. Randy operates a Pay-Most franchise. Seth is one of Randy's employees. As a franchisor, if Pay-Most controls the day-to-day operations of the business to a significant degree, it may be liable for tortious acts by

Pay-Most, Randy, or Seth.

Quaff Café buys twenty-five crates of apples from Reynaldo Produce, Inc. The parties agree to ship the apples "F.O.B. Quaff" via Swift Trucking Company. The apples rot in transit. The loss is suffered by

Reynaldo.

Analytics LLC processes misinterpreted data furnished by Botch Services to propose a marketing plan for Clientele Inc. Analytics and Clientele are both ignorant of the mistaken data. Their contract can be rescinded on the basis of

a bilateral mistake.

Gilda, marketing manager for Home Stuff LLC, is responsible for branding the company's products. Aspects of branding that can be trademarked include

a catchy phrase, such as "Stuff your home with Home Stuff!"

Brie buys a subscription to music provided by Concerto, an online streaming service. Before gaining access, Brie must agree to a provision stating that she will not make and sell copies of the music. This provision is

a click-on agreement.

Sam, driving under the influence, causes a car accident that results in the death of Tanya. Sam is arrested and charged with a crime punishable by imprisonment for more than a year. This crime is

a felony.

Seacoast Transport Company pays Trucks & Trailers Inc. a stated price for the use of seven tractor-trailer rigs for a year. Under the UCC, this is

a lease.

Architect LLC enters into a contract with Barn & Silo Inc. to provide designs for a certain number of farm buildings. Architect provides fewer than half of the designs by the time specified in the contract because the firm is busy with other projects. Architect's performance is most likely

a material breach.

Embers Corporation orders twelve fire extinguishers from Firefighting Inc., which delivers the equipment. This is most likely

a sale of goods.

Wendy works as a weather announcer for a TV station under the character name Weather Wendy. Wendy can register her name as

a service mark.

Carl starts up, and assumes the financial risk of, Data Works, a new marketing enterprise. As a sole proprietorship, the enterprise must meet legal requirements relating to

all of the choices.

Juice Inc. offers entrepreneurs the opportunity to operate a franchise under the Juice trade name as a member of a group of dealers that engage in retail beverage sales. To prospective franchisees, Juice must disclose

all of the choices.

Marketing Inc. offers to create a campaign to increase N'Ice Cream Inc.'s online business. N'Ice agrees to pay for the service. These parties have

an express contract.

Lon says to Misty, "I would like to sell you my sofa." This statement is

an invitation to negotiate, not an offer.

Hometown Bank posts on its website an offer of a reward for information leading to the apprehension of a certain criminal. This offer could normally be terminated by

any of the choices.

Nature's Eggs Inc. agrees to supply Omelet Express with five hundred eggs. Nature's Eggs can reasonably ask Omelet Express to pick up the eggs at

any reasonable hour.

Stig creates unique graphic works that feature characters of his own imagination. Copyright protection for Stig's work is

automatic

Chase, the owner of Data Master, a sole proprietorship, wants to obtain additional business capital. This opportunity is most likely limited to

borrowing funds.

Jamal and Keri enter into a contract for Jamal to renovate Keri's house by a certain date. Jamal never performs. After the applicable limitations period has passed, Keri decides to bring a suit against Jamal for breach. This suit

can no longer be brought.

The Racketeer Influenced and Corrupt Organizations Act is an effective tool in attacking

certain white-collar crimes.

Obtaining a court order to close down the domain name of a website is an effective tool that U.S. officials use to combat online sales of

counterfeit goods.

Kohl receives from Lily a camera stolen from Mark. Kohl knows that the camera is stolen, and he intends to keep it. Kohl is

criminally liable.

Midtown Holdings Inc. contracts to sell a commercial parking garage to Nuevo Property LLC. The contract provides that if Midtown does not close the deal by a certain date, it must pay the buyer one-half of the value of the property. This provision is not enforceable if it is

designed to penalize Midtown.

Home Furnishing Store's contract for a sale of its appliances provides that the only remedy for breach is replacement, repair, or refund of the purchase price. With respect to this provision, on a customer's suit for breach, a court is most likely to

enforce it.

Megan contracts to sell Nonny her horse for $4,000. This contract will be fully discharged when Megan and Nonny

exchange the horse for the money.

Holiday Corporation sells Idyll-brand campers and trailers. Under most circumstances, Holiday will be presumed to have warranted that its title to the goods is

good and valid.

Sea Coast Café uses the trademark of Tacos del Mar without permission. This use of the mark is actionable as trademark infringement

if consumers are confused.

Raj agrees to work as a freight broker for Shipping Inc. In determining whether a contract has been formed, an element of prime importance is the parties'

intent.

Riley commits an act via e-mail against State Bank, a business in Texas, where the act is a cyber crime. Riley resides in Utah where the act is not a crime. Prosecution of Riley in Texas involves questions of

jurisdiction.

Bud works at a Cheap Stuff Store from which, without authorization, he takes merchandise that he has not paid for home for his own use. This is

larceny.

Esau works for Family Dwellings Inc., an investment firm that buys, renovates, and rents foreclosed houses. Esau steals his employer's digital files to start his own competing business, Good Homes LLC. This is

larceny.

Mesa County contracts with New Construct Inc. to build a courthouse. New Construct hires Odell to excavate the site. Odell's work damages adjacent properties. Mesa files a suit against the excavator, who argues that the county is not named in his contract with New Construct. Most likely, the court will hold that Odell is

liable on the ground that Mesa is an intended third-party beneficiary.

Raul uses social media to post links that, when clicked, secretly install software on others' computers without the owners' knowledge Raul's software is designed to harm or disrupt the computers. This program is

malware.

Ruby invents a new type of pillow and obtains a patent for it. Sleep-Time Inc. believes that Ruby's pillow infringes on one of Sleep-Time's previously patented products. Sleep-Time must file a challenge to Ruby's patent within

nine months.

Beth and Connie do business as Dig Excavators. In acting on the firm's behalf, Beth makes an honest error in underestimating the cost of a certain project. In this situation, to her firm, Beth is liable for a breach of the duty of

none of the choices.

Deb and Eve are partners in Foundations, a construction outfit. Deb manages the business. For this service, unless the partnership agreement states otherwise, she is entitled to pay in proportion to her

none of the choices.

Bianca, a minor, enters into a contract to buy two all-season passes from Chalet Ski Park. The contract will be made enforceable if, after reaching the age of majority, Bianca

ratifies it.

Cass agrees to sell her Daily Donut shop to Ernie. In the agreement, there is a covenant not to compete that prohibits Cass from operating a donut shop within a certain distance. If the restriction is unreasonable, a court will most likely

reform the covenant.

Steel Mill Inc. agrees to deliver a certain quantity of steel to T-Bar Framing Corporation. The agreement states that delivery is to be within "9" days, although the parties intend "90" days. The seller cannot convince the buyer to amend the contract. The most appropriate remedy is most likely

reformation.

Beca, a computer operator for Cloud Corporation, is arrested in her employer's parking lot on suspicion of larceny. Beca must be informed of her right to

remain silent.

Steel Buildings Inc. agrees to sell four portable garages to Truck Service Center. Five days later, Truck refuses delivery and cancels the contract. Steel is entitled to

resell the garages and recover any damages from Truck.

At an auction, Ben bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Ben estimated, and thus is worth less as is, Ben is

still liable on the bid.

A speedy trial, a trial by jury, a public trial, and the right to confront witnesses are guaranteed by

the Sixth Amendment.

In a sale of oranges from Citrus Grove Farms to Donuts & Juice Inc. to be delivered after the harvest, a fire destroys the fruit before it is picked. Under the UCC, the rights and liabilities of Citrus and Donuts in this circumstance are generally determined by

the concepts of identification and risk of loss.

Faiz enters into a contract to buy 350 acres from Grain Farm to cultivate hops and open a brewery. Faiz fails to make the purchase. Grain Farm's remedy is most likely

the difference between the contract and market prices of the land.

Ben makes an appointment for a $50 haircut, buys a bike for $250, and agrees to work for Coding Associates for one year for $5,000 per month, starting at the beginning of next month. To be enforceable, a writing is required for

the employment agreement.

Bike Shop sells a trail bike to Ciena. When Ciena rides the bike, the frame breaks apart. The cause is something that Bike Shop did not know about and could not have discovered. This is a breach of

the implied warranty of merchantability.

Prognosis Inc. owns a brain-computer interface that enables physicians to diagnose and treat some diseases quickly and accurately. Federal copyright protection extends to

the parts of the app that can be read by computers.

Minh owns a beach house that she rents to vacationers. Minh gives her son Ngo a trip to Omaha on his graduation from community college. Minh sells her car to her neighbor Phan for $4,500. UCC Article 2 covers

the sale to Phan.

United Inc., a U.S. film production company, files a suit against Video Ltd., a Mexican production firm, for infringement of intellectual property rights under Mexico's national laws. Both the U.S. and Mexico are signatories of the TRIPS agreement, under which United is entitled to

the same rights and protection under Mexican law as Video.

Olin is a partner in Precision Plumbing. When the partners decide to dissolve the firm, Olin collects and distributes the assets. This results in

the termination of the firm's legal existence

Dona offers to sell her used sofa, chair, coffee table, end table, and lamp to Etta for $700. Etta responds that she will pay that price if Dona's TV set is included. Neither party is a merchant. Their contract is formed according to

the terms of the original offer.

Van starts Wind Systems to make and sell turbines. Later, Van contracts with Xi to invest additional capital in the firm in exchange for 25 percent of the profits. Vaughn and Xi are not partners in Wind Systems because

they do not have joint control over the business.

Organos Ltd. traffics in nutritional supplements that are marketed as genuine, trademark-branded products when in fact they are counterfeit. This is a crime

under all circumstances.