buis 2371
63. Transcontinental Tours, a U.S. firm, and Victoria Hotels, Ltd., a Canadian firm, enter into a contract that does not have a forum-selection or choice-of-law clause. Litigation between Transcontinental and Victoria over a dispute involving this contract may occur in
Canada, the United States, or both .
19. Persons who favor the creation of a federal biotech agency to regulate the production of genetically modified agricultural and animal products should concentrate their lobbying efforts on
Congress
100. Mont Blanc S.A., a French firm, impo1ts its goods into the United States and offers those goods for sale at "less than fair value." "Fair value" is the price of Mont Blanc's goods in
France
Skip is accused of a crime. Skip can refuse to provide information about his allegedly criminal activities
If he suspects the information will be used to prosecute him
80. The U.S. Patent and Trademark Office (USPTO) wants to review certain records of Omni App Corporation. The USPTO can legitimately gain access to the records through
Omni App's voluntary compliance.
78. Reality Financial Corporation, a U.S. firm, files a suit against Switzerland in a U.S. cou1t. Switzerland claims foreign sovereign immunity. Under the Foreign Sovereign Immunities Act
Reality Financial must show that Switzerland is not entitled to sovereign immunity.
12. Ajay sells "Bulk Up" steroids over the Internet. He is arrested and charged with the sale of a controlled substance. This is cyber crime, which is
a crime that occurs in the vi1tual community of the Internet.
27. Congress enables the Environmental Protection Agency to regulate air and water pollution. This congressional act is
a delegation of legislative power
15. To prepare for a trial between Sma1tPhones, Inc., and TechApps Company, TechApps' attorney places Sma1tPhones ' chief executive officer (CEO) under oath. A court official makes a record of the attorney 's questions and the CEO's answers. This is
a deposition.
50. Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd., a Canadian firm, to give Pharma the right to sell Optima's products in Canada. This is
a distribution agreement
40. The Occupationa l Safety and Health Administration (OSHA) discovers that Petro Refinery, Inc., is violating an OSHAS regu lation. Ifthis situation is resolved like most such disputes, the outcome will be
a negotiated settlement
88. The government of Korea sets a limit on the amount of rice that can be imported from the United States. This is
a quota.
94. Sara believes that she has a strong case against Tom for the breach of an employment contract. Despite this belief, Sara cannot file a suit against Tom after the expiration of the ti me allowed for the filing under
a statute of limitations.
95. O'Reilly files a su it against Petrarch. They meet, and each party 's attorney argues the party 's case before a judge and jury. The ju ry presents an adviso1y verdict, after which thejudge meets with the parties to encourage them to settle their dispute. This is
a summa1y ju1y trial.
5. UniVision Corporation, a U.S. company, sets up a firm in Vietnam. UniVision remains in the United States and retains ownership of the Vietnamese branch, as well as authority and control over all phases of the operation. This is
a wholly owned subsidiary.
74. The functions of the National Transpo1tation Safety Board, like those of other federal administrative agencies, include
adjudication.
43. The Bay City Planning Depa1tment , the Coastal County Zoning Commission, the Delaware Environmenta l Quality Agency, and the U.S. Bureau of Land Management issue regulations. These rules constitute
administrative law
52. Dyan, the owner of Expe1t Restoration Services, Inc., adheres to the "principle of rights" theory. Under this theoty, a key factor in dete1mining whether a business decision is ethical is how that decision
affects the rights of others
30. Refer to Fact Pattern 2-1 . After its review of Martin v. Nichelle, the appel-late cou1t upholds the lower cou1t's verdict. The appellate court has
affirmed the case
85. Closed meetings of the National Security Agency and other federal administrat ive agencies are permitted when
all of the choices.
92. Lowell runs Medical Debt Collection Agency. He collects debts by misrepresenting the facts and pretending to be licensed to perform various occupations. Lowell's conduct most likely warrants
an injunction plus other sanctions.
91. Congress enacts the Ad Restriction Act (ARA) to lim it advertising in ce1tain circumstances. The ARA will be considered valid if it directly advances a substantial government interest
and goes no fu1ther than necessary to achieve its purpose.
51. ln reviewing the actions of the U.S. Bureau of Land Management and other federal agencies, the courts
are usually reluctant to review questions of fact
87. Karen is a judge hearing the case of Local Dispatch Co. v. National Transport Corp. Applying the relevant rule of law to the facts of the case requires Karen to find cases on point-previ-ously decided cases that, in relation to the case under con-sidera-tion, are
as similar as possible.
79. Ryland, an officer for Sports Park, Inc., attempts to apply a duty-based approach to ethical reasoning in conflicts that occur on the job. This approach is based on the idea that a person must
avoid unethical behavior regardless of the consequences.
20. Jenna files a civil suit against Keshia. To succeed, Jenna must prove her case
by a preponderance of the evidence
16. The Iowa Supreme Court rules against Jennifer in a case against Kut-Rate Stores, Inc. Je1mifer wants to appeal her case to the United States Supreme Court. She must ask the Court to issue a writ of
certiorari.
44. Honey Bee Foods, Inc., i n Illinois, and Jelly Rol l Pastries, in Kentucky consent to have their dispute resolved in arbitration according to the law oflllinois. This is a ground for a comi to
compel arbitration
60. Marcus files a suit against Naomi in an Ohio state court. Naomi' s only connec-tion to Ohio is an ad on the Web originating in Pennsylvania. For Ohio to exercisejuri sdiction, the issue is whether Naomi, through her ad, has
conducted substantial business with Ohio residents.
56. Palette Paints, Inc. expend s funds and takes steps to ensure that all employees are safe on the job, that all products are safe for consumers, and that the environmental impact of the corporation is minimal. Palette Paints appears to bel ieve in the concept of
corporate social responsibility.
90. Lyn files a suit against Karl. Karl denies Lyn's charges and sets forth his own claim that Lyn breached their contract and owes Karl money for the breach. Karl's claim is
counterclaim
17. The basis for India to give effect to the laws and court decisions of the United States is primarily
courtesy and respect
28. GetTogether, A Social Media Company encourages its managers to behave ethically, reasoning that lower-level employees will take their cues from management. One of the most important ways to create and maintain an ethical workplace is for GetTogether's management to
demonstrate a commitment to ethical decision making
8. Kimberly, the owner of Littleton Cinema, trusts Max to manage the theater 's daily cash flow. One night, without Kimberly's knowledge or consent, Max takes and keeps $ 1,000 from the receipts. This is most likely
embezzlement.
35. Rodrick, the chief executive officer of Social Post Host Inc., claims that certain actions by the state of Texas infringe on rights guaranteed by the Bill of Rights. Most of these guarantees have been held to l imit
federal and state actions
76. Fresh Harvest Company , which is based on Georgia, packages and sells vegetables. Hayden, who is a resident of Indiana, buys a Fresh Harvest prod uct, eats it, and suffers severe food poisoning. Hayden wants to file a suit against Fresh Harvest. The diversity of citizenship between these parties means that
federal and state cowts have concurrent juri sdiction.
61. Laird is an employee of Motor Parts, an auto pa 1ts store. On the orders of his employer, he switches trademarks on paits that come into the store to be sold to consumers. This is most likely
forgery
57. The U.S. Food Safety and Inspection Service conducts searches of certain businesses. This agency and other administrative agencies can conduct warrantl ess searches in
highly regulated industries.
21. Juan is a judge. How Juan and the judges in other courts interpret a pa1ticular statute determines
how that statute will be applied
99. Posing as Platinum Bank, Quentin e-mails Rachel, asking her to update her personal banking information through a link in the e-mail. She cl icks on the link and types in the data, which Quentin promptly sells to Spence. This is
identity theft.
62. Yokio, Ltd., and Zeno, S.A., transact an international sale of goods. At the request of these parties , a cowt in Po1tugal resolves a dispute between them. A U.S. cou1t will most likely honor the judgment
if it is consistent with Po1tuguese laws and public policy.
75. Refer to Fact Pattern 2-1. After a final determination in the case of Martin v. Nichelle, any judgme nt will be satisfied
if the losing patty pays thejudgment.
49. Refer to Fact Pattern 3- 1. Oona, a third patty, resolves the dispute between Morsels and Nature. In most states, Oona must issue an award or decision in writing
if the resolution involved arbitration
22. Petro Refining Corporation makes payments to potential customers, suppliers, and others with whom they might do business, including foreign private companies and the representatives of foreign labor organizations. If Petro knows that these payments will be passed on to a foreign government, this practice is
illegal if the payments violate the Foreign Corrupt Practices Act
93. Owen uses the Internet to defraud Prairie Valley Credit Union. He is found guilty of wire fraud. He can be punished by
imprisonment for up to thirty years and fines of up to $I million.
64. Renewable Resources, Inc., files a suit against Sunrich Utility Company and seeks to examine ce1tain documents in Sunrich's possessio n. A legitimate reason for this examination is that the documents contain
information that is relevant to the case.
7. Selena's Fajitas, a fast food outfit, files a suit against the state of Texas, claiming that a Texas state law violates the commerce clause. The cou1t will agree if the statute imposes a substantial burden on
interstate commerce
47. Jn the case of Retail Sales Corp. v. Trucking Delivery Co., the court may rule contrary to a precedent if the court decides that the precedent
is inconcect or inapplicable
96. The U.S. Fish and Wildlife Service discovers that Grosse Farm Fisheries, Inc. has v iolated a federal regulation. lfno negotiated settlement can be reached, the agency will most l ikely
issue a formal complaint against Grosse Farm.
3. As a judge in a federal court, Christine can decide, among other things, whether the laws or actions of the executive and legislative branches are constitutional. The process for making this determination is known as
judicial review
37. Leslie commits an act via e-mail against Money Investment Company, a business in New York, where the act is a cyber crime. Leslie resides in Ohio, where the act is not a crime. Prosecution of Leslie in New York involves questions of
jurisdiction
10. Eartha receives from Fergie a guitar stolen from Harper. To be criminally liable, Eartha must
know that the guitar is stolen.
36. To Sam, the written law of a particular society at a patticu lar time is most signifi-cant. Sam is a
legal positivist
24. Taco Hot Dogs, Inc., regularly advertises its products. Under the First Amendment, in comparison with noncommerc ial speech, the protection given these ads is
less extensive
41. Fresh Meds, Inc., a U.S. firm, contracts with Gong, Ltd., a Hong Kong firm, allowing Gong to use and profit from Fresh Meds' patented products. This i s
licensing
23. Big Deal! Marketing Company, a U.S. firm, signs a contract with Comercio Exterior, Ltd., a Chilean film to give Comercio the right to use Big Deal!'s animation techniques and characters in product promotions. This is
licensing.
45. Milo files a suit against Otis. At the trial, each party 's attorney presents the patty's case before a j udge who hears the dispute and renders a legally binding decision. This is
litigation
33. The Montana Supreme Court rules against Natura l Grocery Mart in a case against One Stop 2 Shop Stores, Inc. Natural Grocery files an appeal with the United States Supreme Court. The Court does not hear the case. This
means that the Montana court's decision is the law in Montana
48. Desdemona works for e-Innovation, Inc. Her job includes putting "spin" on the firm's successes and failures. In this context, ethics has to do with how businesspersons, in making their decisions, apply
moral and ethical principles.
54. Reno, driving while intoxicated , causes a car accident that results in the death of Santo. Reno is arrested and charged with a felony. A felony is a crime punishable by death or imprisonment for
more than one year
38. Donatello files a suit against Erasmus. Before going to trial, the paities meet, with their attorneys to represent them, to try to resolve their dispute without the involvement of a third party. This is
negotiation
55. The least expensive method of resolving a dispute between Ronald and Sharon may be
negotiation because no third parties are needed.
71. The Pennsylvania legislature enacts a state law that violates the U.S. Constitution. This law can be enforced by
no one.
67. Keralyn creates a Web site to post threatening messages about celebrities. The First Amendment protects such speech
none of the time.
98. Discount Mait Corporation contracts with companies in developing nations to produce goods, because the wage rates in those nations are significantly lower than those in the United States. Discount Mart takes steps to avoid bad publicity by monitoring its suppl iers' workplaces to make sure that the employees are not m istreated . Discount Mart is
not acting unethically.
46. To resolve a dispute, Ripley in South Dakota and Tyler in Utah utilize Vitiual Solution, a nonbi nding online dispute resolution (ODR) service. This limits these patties' recourse to the cowts
not at all.
4. Transnational Corporation and United Shipping, Inc., agree to a contract that includes an arbitration clause. If a dispute arises, a court having jurisdiction may
order a party to submit to arbitration
26. Secure Investments, Inc., a U.S. firm, expands into international markets through a joint venture. In this situation, Secure Investments owns
part of the operation.
39. Klay arrests Leonida on suspicion of embezzlement. According to the United States Supreme Court in Case 7.3, Miranda v. Arizona, Leonida m ust be apprised of certain constitutional rights
prior to any police inte1TOgation
58. Jon, a law enforcement official , monitors Kelsey's Internet activities-e-mail and Web site visits-to gain access to her personal financial data and student information. This may violate Kelsey's right to
privacy.
42. Congresswoman Smith and other politicians want to prohibit the impoti of cetiain genetically modified agricultural products that they believe may pose a danger to domestic crops. With respect to these products' impoti, Congress can
prohibit the imports
84. Lany enters into a contract with Motivational Education Services to host a panel discussion at a sales conference. When the conference is postponed indefinitely, Larry asks a court to cancel the contract and return the pa1ties to the positions that they held before its formation. This request involves
rescission
70. In studying the business law, students also review ethics in a business context. Ethics includes the study of what constitutes
right or wrong behavior.
13. First Community Credit Union and General Hydraulics. lnc., have their dispute resolved in arbitration. Before determining the award, the arbitrator meets with First Community 's representative to discuss the dispute without General Hydraul ics' representative being present. If this meeting substantially prejudices General Hydraul ics' rights, a cou1t will most likely
set aside any award.
86. Charles is a federal judge whose judicial decisions are part of case law, which does not include interpretations of
sound bites in the media.
77. Maggie and Nate enter into a contract for the sale of a car, but Nate later refuses to deliver the car. Maggie asks a comt to order Nate to perform as promised. Ordering a party to perform what was promised is
specific performance.
81. The government of N01th Korea violates an international law. Persuasive tactics to remedy the situation fail. The only recourse of other nations is to
take coercive action-sever relations, impose boycotts, go to war.
32. Much of American law is based on
the English legal system
97. A provision in the California state constitution conflicts with a provision in the U.S. Constitution. Ifchallenged
the U.S. Constitution, not the state provision, will be enforced.
53. Global Marketing, Inc., a U.S. firm, owns property in Honduras. The government in Honduras takes Global Marketing's property without paying for it. A U.S. court will probably not examine the validity of this act committed by Honduras within its own territory , under
the act of state doctrine
72. Operational Processes, Inc., appeals a decision against it, in favor of Precision Manufacturing Corporation, from a lower cou1t to a higher court. Operational Processes is
the appellant.
73. Lewis wants to file a suit against Mikayla. Before any court can hear the case
the cou1t must have juri sdiction.
59. Dynamic Oil Corporation, a U.S. firm, owns property in Ecuador. When the government of Ecuador seizes the property, Dynamic Oil asks a U.S. court to order the property 's return. The court rules that Ecuador is exempt from the court'sjurisdiction. This is
the doctrine of sovereign immunity.
18. In an effort to reduce traffic , Bay City enacts an ordinance that allows only a few specific street vendors to op er-ate in ce1tain areas. A court would likely review this ordinance under the principles of
the equal protection clause.
11. Grid Tools & Hardware Company is subject to a decision by the Consumer Product Safety Commission. Opposed to the decision, Grid Tools wants a court to review it. First, however, the firm must use all of the potential administrative remedies. This is
the exhaustion doctrine
69. State and federal transpo1tati on agencies may issue regulations that conflict. When a state regulation conflicts with a federal regulation
the federal regulation takes precedence.
89. The Nebraska Supreme Court issues an opinion that can be found at 285 Neb. 88, 825 N. W.2d 429. "285" is
the number of the volume in the official reports of the court's decisions.
31. Jane enters into a contract with Jill to provide l 00 roses for a dinner party. Jill fails to deliver the roses. Jane initiates a suit against J ill, asking the cou1t to order Jill to refund Jane's payment. Jane is
the plaintiff
14. Suisse Internationale, a Swiss maker of athletic equipment, enters into a price fixing agreement with Total World Spo1ts, a U.S. wholesaler of Suisse's products. U.S. cou1ts will apply U.S. antitrust laws if
the price fixing has a substantial effect on U.S. commerce
25. Michael, a citizen of Ireland, and Nina, a citizen of the United States, enter into a contract. When Nina breaches the contract, Michael obtains an award of damages in an Irish court. He asks a U.S. court to enforce the award. The U.S. court defers to and enforces the Irish court's decree. This is
the principle of comity
29. Bean House Coffees and Java Distributors, Inc., have a long-standing business relationship that they would like to continue. For this reason, they may prefer to settle any dispute between them through facilitation because
the process is not adversarial
6. During the trial phase of Sof' Drink Soda Corporation's suit against TimeOut Convenience Stores, Inc., their attorneys engage in voir dire. This is
the selection of jurors.
66. A statute enacted by the Arizona state legislature to regulate trucking affects interstate commerce. ln evaluating th is statute, the cou1ts will balance the burden that it imposes on interstate commerce against
the state's interest in regulating the matter.
83. The Constitution sets forth specific powers that can be exercised by the national government and provides that the national government has the implied power to undertake actions necessary to cany its expressly designated powers. U nder the Tenth Amendment, all other powers are expressly reserved to
the states.
Ballpark Sportsfield, inc, files a suit against Concessions & Tailgate
the summons.
82. The Long-haul Truckers Associat ion wants the federal government to spend funds to build a new highway. Congress can spend revenues
to promote any obj ective that it deems worthwhile.
9. Green Hybrid Auto Corporation pays its executives an excessive amount relative to what lower-level employees at the company receive and to what executives at competitive companies are paid. Green Hybrid' s pay scale is most likely to be challenged as
unethical.
68. Gem programs software to prompt a computer to continually crash and reboot. Gem intends to install this program on various companies' computer systems without the companies' know ledge. The program can reproduce itself, but must be attached to a host fi le o travel from one computer network to another. This program is a
virus.
65. Maxi Retail Corporation is subject to a decision by the National Labor Relations Board. Maxi Retail appeals the decision, arguing that it is arbitrary and capricious. This could mean that the decision
was plainly contrary to the evidence
34. Chaz uses his computer to secretly install software on thousands of personal computers without their owners' knowledge. The program can reprod uce itself and spread from one computer to another via any USB port. This program is a
worm.
