Business Law Final Exam
mandatory retirement ages
(exception- commercial airline pilots) Exception: bona fide executives- at least 65 years old, guaranteed retirement benefits of 44,000+ per year, company can force you to retire at a certain age
family and medical leave act (FMLA)
- businesses with 50 or more people - employees can have up to 12 weeks of unpaid leave per one year period - birth and care of newborn (mom and dad), care of immediate family member or yourself with serious health condition - must work at company for at least a year - 12 weeks can be spread out
Terry is hiring a new sales executive for his company. He interviews Evan, a 50-year-old, for the position but ultimately decides he prefers someone with more seniority. As a result, he hires 60-year-old Brenda instead. Evan sues for age discrimination.
60 year old is just more qualified Has to be over 40 AND too old, not too young
Joey finds valuable baseball cards laying next to a trash can at the local park
Abandoned or mislaid Goes back to joey
Brett plants tomato plants in his neighbor tom's garden
Acquisition via accession Adverse possession- not because its not in a defined period of time
Joelle owns her own bakery. She gets an order for 12 dozen cinnamon rolls from a very important customer, but realizes that she won't have enough sugar to complete the order. As a result, Joelle instructs her employee Shonda to drive to the store and purchase 5 pounds of sugar. Shonda then buys the sugar from the store as instructed, using the bakery's credit card. What kind of authority does Shonda have?
Actual authority
regulation of interstate commerce
Any business activity between two states If a company can point to a transaction that relates to this, federal government can control
Claire is a regional saleswoman for a large office supply company. Due to financial difficulties, Claire's company informs her that it must lay her off, effective immediately. Two days later, a long standing client of Claire's calls her to place an order for printer paper. Claire accepts the client's order and promises that the company will fulfill it. What kind of authority does Claire have?
Apparent authority
Ruth hires Vince to renovate her kitchen after he tells her that he is a licensed contractor In reality, vince had his license revoked a year before
Arguing fraud
testing requirements
Ask employees to take some sort of test before they are hired or promoted Mostly fine, but if it is disadvantaging a group Court will ask if test is reasonably related to the actual job duties
aiding and abetting/accessory
Assisting another in the commission of a crime Helping you but wasn't a part of the plan originally If you let someone with blood on them stay at your house with no questions asked
Jack is looking to hire new female bartenders for his tavern, and runs an ad in the local paper stating that only natural blondes need apply. Helen, an Asian-American, sues Jack under the Civil Rights Act.
Bar would lose, not a business necessity Hair color doesn't affect ability to do job Men could also sue for disparate treatment
commerce clause
Business activity Article one section 8- congress has the rights to regulate different acts of commerce in different ways Gives federal government power to regulate business activity
statute of frauds (4 categories)
Contracts involving an interest in land (real estate purchases and sales) Contracts to pay the debt of another Contracts that cannot be performed in less than a year Contracts for the sale of goods for $500 or more
Paula, a flight attendant, is paralyzed from the waist down in a car accident and as a result is confined to a wheelchair. After several months of recovery in the hospital, Paula wishes to return to her old job. The airline tells Paula there is no way it can accommodate her wheelchair, and therefore she is not welcome back.
Could accommodate her by putting her in a different position
Leonard hires Will to serve as his agent for purposes of buying a vintage 1957 Porche roadster. Relying on his knowledge of the vintage car market, Will finds a car that fits Leonard's wishes, and purchases it for him. What is the Status of Will's agency?
Done- fulfilled purpose
Five years ago, Julia hired Fred to serve as her agent and regional salesman for her business. After failing to make a new sale for six months, Julia demotes Fred to a desk job in the office, and tells him not to make any more sales. What is the status of Fred's agency?
Done- termination
How do we know which burden of proof will be used
For all criminal cases: beyond a reasonable doubt For civil cases: could be preponderance or clear and convincing Changes depending on state tried or type of case
Ginny hires Vic as an independent contractor to install a new computer system at her business. While carrying computer equipment into Ginny's office, Vic trips and falls, causing Terrence to swerve out of the way to avoid hitting him with his car. As a result, Terrence hits a wall, and he sues Ginny for the damage to his car. Who is responsible?
Ginny won't be responsible- Vic will be
Alex, an employee at Home Depot, is restocking the top shelves of the chainsaw aisle, when he accidentally drops a box. The box hits Sharon, a customer, severely injuring her. Sharon sues Home Depot for her injuries. Who is responsible?
Home Depot
retaliation
I have been discriminated against because I was involved in a discrimination case (cannot punish someone for accusing you of discrimination)
Interrogatories
Identify any individual that you are aware has personal knowledge of the facts and circumstances of this case, including all eyewitness accounts List all insurance agreements you have regarding the vehicle operated by the Defendant at the time of the collision with the plaintiff Written questions that must be answered in writing under oath by the other side Who what where why, etc 30-60 days to answer Open ended, tell me what you know about this
Review of Voluntary Arbitration Decisions- only overturn if
If arbitrator failed to follow proper procedure If the decision was made with fraud, ex someone paid him/her The decision was contrary to public policy
Meredith hires George to serve as the accountant for her marketing firm. She instructs George to make sure that the firm's books are accurate and up-to-date, and to manage the firm's payroll process as well. George determines that the firm could use some new accounting software, so he purchases it on behalf of the firm. What kind of authority does George have?
Implied authority
Depositions
In person question and answers Recorded, under oath Possibly give a different answer in the deposition than in the eventual trial Now the jury knows they are lying Try to wear the person down- save strong questions for last
Danielle is a traveling saleswoman for Dalton carpets. The company asks Danielle to travel out to Utah to try to sell the company's carpets to several flooring stores in the Salt Lake City area. She spends $1,500 on transportation and lodging, expenses which Dalton refuses to compensate her for. What does this violate?
Indemnification
Louise hires Kevin as an independent contractor to trim a tree at the front of her property, even though she knows he has no experience. Kevin cuts a limb from the tree, and when it falls it hits Roberta as she is walking by on the sidewalk. Roberta sues Louise for the injuries she sustains. Who is responsible?
Louise- negligently hired
preponderance of the evidence
More likely than not (about 51% sure) Who you are convinced by more
Although the door knob on Mitchell's front door constantly falls off, Mitchell never bothers to fix it. One day a friend comes over to surprise Mitchell, and grabs the door knob, only to have it fall off in his hand. As a result, the friend falls backward down the front steps to Mitchell's house, breaking his arm. The friend sues Mitchell for negligence.
Negligence- duty of care under landowners
beyond a reasonable doubt
No other reasonable explanation exists (about 95% sure)
Tim hides in the basement of an abandoned house continually for 25 years, without ever being seen
No property rights cause the owner didn't know Not open and notorious
Candice is one of 15 workers at a small local restaurant, where she has worked for the last 2 years. Candice's best friend and roommate, Shawna, recently needed to have her appendix removed, and Candice wishes to take some time off of work to help Shawna recover. Is Candice entitled to take some time off of work to help Shawna recover?
Not entitled, bc not immediate family member, not 50+ employees
CNN briefly and falsely identifies Joe as a suspect in a recent terrorist attack, showing a photo of him on television. Although the report is quickly proven false, Joe's employer nevertheless fires him from his job as a store clerk. Joe sues CNN
Not injurious falsehood- CNN not a competitor, not about quality of products defamation
regulation of foreign commerce
Only the federal government can regulate trade with foreign nations Ex, trade embargo- illegal to trade with certain companies
civil rights act of 1964
Prohibits discrimination based on any of five characteristics. race, skin color (within a racial group), religion, sex/gender- includes sexual orientation, national origin
freedom of the press
Protecting the media from government intervention Government cannot issue a prior restraint (gov tries to pre approve the media) Government has to let the media publish- then they can punish after its been published
sexual harassment (2 kinds)
Quid pro quo: I will give you a employment related benefit if you engage in sexual activity Hostile work environment: atmosphere is so hostile that it affects working conditions of women, employer needs to know about the harassment and fail to prevent it
educational requirements
Requiring a certain degree- must be relevant to the job Especially in cases where one group might be less likely to have it
Sheryl agrees to purchase a bulk order of 4,000 reams of printer paper from office max for her accounting firm for $25,000 Office max later informs sheryl that it will be unable to fulfill the order As a result she has to go back on the market to buy the paper from the next cheapest available provider at a cost of $30,000
She would be owed $5,000
Mediation
Similar to arbitration but without a binding resolution Listen to both sides and try to bring them together to a compromise Not going to decide final resolution Cannot force either side to do anything (parties have control) Only way it will end the case is if you reach a settlement
trial courts
Site of the initial trial, typically in front of a jury Superior court, court of common pleas, district court (federal system) In the federal system, trial courts are established for each state States split into 2 or 3 Every county has its own state county court
Josh, a doctor, is hiring a new nurse. He states that he'll only consider applicants who live within two miles of his office, so that the nurse can quickly arrive to assist with unexpected emergencies. Rhonda, a minority, sues Josh alleging that the two-mile requirement eliminates many minority applicants since the office is located in an overwhelmingly white area.
Suing for disparate impact on basis of race It depends- does two miles matter, could it be 3 miles What kind of doctor
State of montana passes a law prohibiting houses of worship from offering parishioners wine or bread during a church service
Targeted- no Free exercise
Julie agrees to purchase a one of a kind artifact signed by george washington from sheila Sheila later refuses to give julie the item as agreed Julie asks the court to specifically enforce their agreement
The court would enforce specific performance- unique item
Rashid, an elementary school teacher and practicing Muslin, requests three weeks of unpaid leave during the school year to travel to Mecca on a religious pilgrimage. After the school district refuses to grant Rashid's request, he quits his job and sues for religious discrimination.
This is something that needs to be accommodated
Michelle develops a new chemical compound that can be applied to a cell phone screen to prevent it from ever cracking She believes that others are highly unlikely to ever discover how to make the compound themselves, and that it could have value for at least 25 years
Trade secret, other people won't figure it out COULD be a patent, now has a choice
Andy rents a car from Enterprise for 5 days while on a business trip On day 2 of the rental, andy gets into a traffic accident causing several thousand dollars worth of damage to the car Andy and Enterprise dispute who is responsible for the damages under the terms of the lease. ucc or common law
UCC - a good
supreme courts
US supreme court Highest court in each state Review the decision of the appellate court Do not have an automatic right to appeal The US supreme court must agree to hear your case by granting a writ of certiorari You write this petition, if 4/9 want to hear your case, appeal will be granted (rare) Cases of nationwide importance
Barabara, a police officer, is getting her haircut at the local salon. Thinking she is going to the restroom, she accidentally opens the door to the salon's employee break room after not seeing the employee's only sign on the door. Upon entering the break room Barbara spots Vicky smoking marijuana, arrests her, and seizes the drugs.
Unlawful because it was a private business area
trademark dilution
Using a mark or trade name in commerce that is sufficiently similar to a famous mark such that it harms consumer perception of the famous mark Not an infringement- not the same pattern Infringement would be a knockoff- very similar pattern Chewy vuitton toy- not a dilution because no one would think worse of louis vuitton for it
In order to boost the local syrup industry, the state of vermont bans the sale of any canadian maple syrup within the state
Violation of foreign commerce
acquisition via confusion
We have the same pen- only personal property Accidentally or by agreement- you get your share and i get my share
mandatory arbitration
When parties are required to arbitrate even if they never agreed to States may require arbitration in divorce cases, or those with relatively small amounts at stake
voluntary arbitration
When parties both agreed to arbitrate, typically with a contract Does not mean that the parties still want to arbitrate today, they both agreed at one time in the past
Requests for Admission
Written question and answers More yes or no questions Admit that you wear a size 10 sneaker.. Etc
Eve promises to give her brother jason $100 next week so that he can buy a new pair of shoes Jason immediately goes out and purchases shoes with his credit card and begins wearing them Eve later changes her mind and refuses to give jason the money
Yes promissory estoppel, financial harm and effect
question of fact
a question about the truth or falsity of an assertion (jury)
testamentary gift
a will after someone has died
disclosed principal
agent clearly makes it known that they are an agent- most common
mutual mistake
both parties are mistaken about material aspects of the contract
disparate impact defense
business necessity: explain to court why policy is actually necessary for the position
principal owes agent 2 duties
compensation and indemnification (reimbursement)
defense to products liability: assumption of risk
consumer knows the product is defective and continues to use it anyways
at-will employment
continue to work for employer, not locked in, could be fired at any time
reasons to void a contract
fraud, misrepresentation, duress, undue influence, mutual mistake
fraud (intentional tort)
intentional misrepresentation of a material fact that is justifiably relied on by someone, causing an injury
fraud (void a contract)
intentional misstatement of material fact justifiable relied on by the other party, resulting in injury
Robert and natalie decide to get divorced They cannot agree how to split their property, and ask the divorce court how to issue a ruling The court forces the couple to arbitrate the dispute
mandatory
implied authority
never been explicitly told to enter the exact contract
religious appearance requirements
people must be allowed to wear clothing that go with their religious beliefs Employer must try to make a reasonable accommodation- only have to do it for the members of that religion
actual authority
principal explicitly instructs the agent
fixed-term employment
signed a contract for a defined period of time. if you want to fire them you pay for full contract
abandonment
someone has owned it before, but the prior owner has let go of their claim- someone leaving a lamp on the side of their street
Susie, a resident of georgia, sues Peter, a resident of Tennessee, under state law for breaking a contract Susie seeks $25,000 in damages
state law, so goes to state court
strict products liability
the seller, manufacturer, and/or supplier is automatically legally responsible for any injury caused by a defective product.
aquisition via exchange
two people agree to trade resources with one another
partially disclosed principal
unidentified principal, third party knows they are negotiating with someone's agent
injurious falsehood
untrue statements disparaging the quality or safety of a competing business's products or services
defense to products liability: misuse
using product in wrong way- worse one than contributory negligence
Alan files suit against his former employer for wrongful termination Alan's employment contract states that any disputes between the company and employee must be arbitrated The court orders alan to arbitrate the dispute
voluntary because he agreed to it
tort liability
when is an employer responsible under tort law for actions of its employees
design defect
widespread, everything is dangerous in the same way, designed poorly
mailbox rule
the timing of the validity of an acceptance is viewed from the perspective of the party accepting the offer Ex. when people did business by letter. I sent an offer in the mail and it takes 3 days for the offer to get there. The day after the offer was sent I changed my mind and I wrote a second letter terminating the original offer. Once you get the first offer, you accept it and send it back to me. At that point, the acceptance is valid. Does the party accepting the offer know that it was revoked before they accepted
Non-employees cannot trade if (2)
they learn the information from someone with a duty to keep it confidential and They provide a benefit (money, gifts, personal relationship with them) in exchange for the benefit Don't have to learn it DIRECTLY from the employee
aquisition via accession
true owner of the property would get the addition from the thief, unless agreed otherwise
Sheila buys a tv from best buy for $250 After taking it home, sheila discovers that it is defective Sheila asks best buy to replace the TV, but the store refuses to take it back or replace it Sheila sues best buy under common law or ucc?
ucc - a good
Debra works for online automobile seller Carvana purchasing used cars from individual owners to replenish Carvana's stock of automobiles. Debra approaches Jacke about buying his used Honda CR-V without ever mentioning Carvana. Jake agrees, and transfers the title directly to Debra herself. What type of principal is Debra?
undisclosed
Bruce purchases a sweater on ebay for $20 Upon receiving the sweater, bruce is upset to learn that it is a size XL , and not a size L that he wanted In fact, bruce misread the ad which clearly states that it is XL
unilateral mistake
misrepresentation (void a contract)
unintentional misstatement of a material fact without an intent to mislead
undue influence (void a contract)
use of a close or legal relationship to unfairly take advantage of another Ex "forcing" someone to change their will
Penny offers to sell Jennifer a computer for $500 Jennifer responds without saying a word by handing penny a check for the full asking price
valid offer and acceptance
Intentional interference with contractual relations
wrongfully inducing someone to breach a valid contract with a third party
Frank and nancy voluntarily arbitrate a dispute arising under a law services contract after Frank's lawn care business kills Nancy's flowers Frank convinces the arbitrator to rule in his favor by giving him 5 years of free lawn care services After learning of franks deal, nancy now wishes to have a court review the decision
yes
Victor and larry were forced to arbitrate their case before arguing it in court under state law Larry now wishes to appeal the arbitrators decision to court, incorrectly believing that the arbitrator miscalculated his damages when issuing his decision
yes
Stuart, a wealthy owner of several championship race horses, hires Tracy to purchase a particular promising thoroughbred for him from its owner. Stuart instructs Tracy to keep his identity secret so that the owner doesn't raise the asking price. Tracy buys the horse from Parker on Stuart's behalf, telling Parker only that she is buying it for a friend. When Parker discovers that Stuart is the one purchasing the horse he refuses to deliver the animal unless Stuart increases the purchase price. Would Parker have to honor the original agreement?
Actual authority , partially disclosed, parker to honor the original agreement
commercial speech
Advertisements Government can regulate advertising Government can only regulate if it has a compelling government interest Legit reason Federal government passes a new regulation banning e cig companies from ads on tv State of texas bans any products made from meat alternatives from using the word meat on their labels
Requests for Production of Documents
All maintenance records concerning the vehicle being driven by the plaintiff on the date of the accident for the two years prior to the auto accident All notes, bills. Photographs, x-rays or other documents prepared or reviewed by any doctor performing a medical exam on the plaintiff for the 6 months following the auto accident How you get physical evidence from the other side Ex. examine someone's car, copies of documents, emails, texts Where bulk of the time of the cost Especially electronic documents
A computer chip manufacturer develops a proprietary way to produce new, faster, computer chips The company tells its employees that the manufacturing technique is confidential, but never requires its employees to sign any confidentiality agreements Several employees start their own computer chip company and use their former employer's manufacturing technique
Brand new knowledge, no trade secret, weren't careful enough
partially disclosed principal and agent with apparent authority
CANNOT EXIST
Free Exercise Clause
Congress cannot make any laws prohibiting free exercise of religion Can't walk around doing anything you want saying its your religion As long as the law is for everyone and doesn't discriminate by religion its fine Hobby lobby case: corporation objected to having to provide birth control for its employees (obama care) - made a religious argument Supreme court agreed with hobby lobby Employment discrimination
Establishment Clause
Congress shall make no law respecting the establishment of religion Not favor one religion over another
Hayden and Morgan, both cashiers at Target, plan to embezzle from the store. They agree on the details of the plan, and even purchase bags to remove the money from the store. Morgan gets cold feet before the embezzlement begins, however, and notifies her boss, who reports the two to the police. The police file charges against both.
Conspiracy- 2 or more people planned it ahead of time- overt act
Alice is a lifeguard at the local swimming pool who regularly notices her supervisor, Shane, ogling her in her bathing suit while she is on duty. One day Shane propositions Alice, but she turns him down. Not the first complaint. Alice complains to the manager of the pool about Shane's behavior, but he does nothing, so she files suit.
Court found that pool complex had made a hostile work environment
americans with disabilities act
Covers customer rights as well Applies to any company with 15+ employees Regulates discrimination against employees for Current employee for having a disability Previously been disabled Having the appearance of a disability even if they aren't disabled As with religious discrimination, employers must try to make a reasonable accommodation for disabled employees Ex. cashier, stool example Courts want to see that you made a good faith effort to have the employee Employers shouldn't ask about disabilities
Helen is a famous lawyer in town, appearing on numerous billboards and tv ads. The local paper mistakenly prints a false story claiming that Helen hasn't paid taxes in 5 years. As a result of the report, Helen loses a significant amount of business. Helen sues the newspaper.
Defamation- it's not about quality of legal services, newspaper isn't competing against her If she could prove it was intentional/they knew it was false, she could win
equal pay act
Different compensations between genders Courts want to see that jobs are equivalent
age discrimination in employment act
Discrimination against employees 40+ years old Too old for the job, Only applies to businesses with 20+ employees
In order to ensure that all of its officers are physically fit enough to chase suspected criminals, the Bloomington Police Department requires all officers to pass a rigorous physical fitness test. Several officers in their 50s fail the exam and are fired. The officers sue alleging that the department engaged in age discrimination.
Disparate impact- 50 year olds are less likely to meet this Reasonable for the job?- officers would lose
Jeremy, a Native American, applies for a modeling job, but is rejected after the casting agent tells him they are looking for someone with a lighter skin tone. Jeremy sues under the Civil Rights Act.
Disparate treatment on basis of color, hiring context WOULD NOT BE BONA FIDE- doesn't apply to race and color
Erin is hired by a construction company to operate a large crane. During her first day on the job, she complains when she discovers that she is unable to leave the crane to use the restroom for long periods of time. Erin's boss tells her to urinate off the back of the crane like the male operators. Erin sues
Disparate treatment or impact? Disparate impact
types of age discrimination cases
Disparate treatment- directly considering age Age is rarely a BFOQ Disparate impact- affects people over a certain age Have to show that it is reasonable to consider (ex. Computer skills) Retaliation: you think employer discriminated against you because you were in a discrimination case
Greg, the 85 year old founder of a fast food chain, wants to fire Katrina, the company's 64 year old CFO. The founder believes that Katrina is getting too old to crunch numbers all day, and prefers to replace her with someone younger. Katrina sues Greg after she is fired, alleging age discrimination.
Disparate treatment- directly saying she's too old
us constitution
Documents that lay out structure and function of government Highest source of law, governs everything in our country Establishes the fundamental principles and structure of the federal government No other source of law can contradict
Francis agrees to perform as a dancer in a local performance of the nutcracker ballet After falling out with the director of the ballet, francis refuses to perform The ballet company asks the court to force francis to perform as agreed
Doesn't have to perform- won't force someone to work for someone else against their will
Negligence 5 required elements
Duty of care Business with customers and employees Employers owe clients Landowners must make sure its safe Breach of duty: what happened - is this what a responsible person would have done Causation in fact: because you failed to clean up the spill - i slipped and fell Show your injury would have been avoided no matter what if the business acted responsibly Proximate causation: was your injury reasonably foreseeable Should the company have anticipated Injury: has to have an actual injury
Jonathan has worked 40 hours per week for Kroger's as a butcher for the last 5 years. Kroger instructs Jonathan on when and where to work, and pays him twice per month for the hours he has worked. Kroger's does not provide a uniform or impose any specific dress code on its butchers, but does provide Jonathan with all of the knives, etc, that he requires to perform his job. Employee or IC?
Employee
FedEx specified the type of uniforms its drivers must wear, the types of vehicles they must drive, and even drivers' personal grooming habits. FedEx also instructed drivers on which packages to deliver, and when to deliver them, routinely resulting in 9 to 11 hour work days. FedEx hired drivers on 1 to 3 year contracts, and reviewed their performance regularly. Employees or Independent Contractors?
Employees
Uber provides training for its drivers, regulates the cleanliness of their vehicles, and terminates drivers based on poor customer reviews. Uber sets the fares that drivers receive from customers. Uber allows drivers to decide when and where to work.
Employees or IC (won't be on exam)
Shelly belongs to a religious faith that believes it is a sin for a woman to wear men's clothing, including any pants. She is hired for a job at Burger King, where she is required to wear the standard uniform, including pants. When the company refuses to accommodate her religious beliefs, Shelly sues alleging religious discrimination.
Employer should be able to accommodate this
affirmative action
Employer wants to increase representation of a group in its workforce Give preferential treatment to that group Not required under the civil rights act Courts will uphold this when it is clear that it is helping a minority that is underrepresented Quota: number of people that are from a particular group-courts don't like that
pregnancy discrimination
Employers can't force pregnant women to stay home from work Can't discriminate between non-pregnant women and pregnant women
state constitutions
Establishes the structure of each state's government More detailed than the US constitution Revisions for taxes, education, etc
Us congress passes a law requiring that all elementary schools instruct students on biblical history
Establishment clause No
clear and convincing proof
Evidence tilts heavily in one party's favor (about 70% sure)
notice-and-comment rulemaking
First step is that Congress passes a law delegating the power to create a regulation to a particular agency Agency then conducts research as to what best rule would be Economists trying to figure out how jobs and economy will be affected, scientists also researching Agency provides notice to the public of the rule, public can give feedback Have to respond to comments- explain why Agency considers feedback and either amends proposed rule, or explains why feedback was unpersuasive Challenging an enacted regulation: courts rarely overturn
Jim, an H&R Block employee, leaves work two hours early when his wife goes into labor with their first child. A few minutes later, while driving to the hospital, Jim gets into a traffic accident with Francis. Francis sues H&R Block for the damages he sustained in the accident. Who is responsible?
Frolic- company not responsible
Dennis is employed by Office Depot as a store clerk. Office Depot requires all of its cashiers to wear a nametag with the office depot gogo on it. One day while working the cash register Dennis sells a new desk chair to Helen. What type of principal is Office Depot?
Fully disclosed
Review of Mandatory Arbitration Decisions
If mandatory, then the parties have an automatic right to a new trial in court
The police arrest Ryan at his home on a charge of robbery. While one officer places Ryan in handcuffs and pats him down, another officer opens a duffle bag in the next room and finds a gun. The police seize the gun and ultimately determine that it was used in the robbery
If the bag is open vs closed
After inheriting a house from his grandmother in another state, David hires Nell, a real estate agent, to sell the property for him. Without notifying David, Nell Advertises the property in the local newspaper. Upon receiving the bill for the ad, David refuses to pay it since he never agreed to it. Would David have to pay for the bills?
Implied authority, fully or partially disclosed, he would have to pay for the bills
question of law
In a lawsuit, an issue involving the application or interpretation of a law. (judge)
Steve is losing lots of sales to his rival businessman Luke, so he begins telling clients that Luke's products have been shown to cause cancer. In reality, Luke's products are completely safe. Luke discovers that Steve is lying about his products and files suit.
Injurious falsehood, competitors and about product qualities
Brett goes to the AT&T store with his girlfriend while she shops for a new phone. While at the store, a salesman pressures Brett to buy a new phone for himself. Brett explains that he already has a contract with Sprint, but the salesman encourages him to break it. Brett buys the new phone, and after learning what happened, Sprint sues AT&T.
Intentional interference with contractual relations
Sam, a college senior, is interviewing for jobs after graduation. He receives a job offer from XYZ corp and quickly accepts it. Two weeks later, Sam receives an offer from his preferred employer, ABC INc. Sam accepts the ABC offer without mentioning his XYZ contract. XYZ sues ABC for stealing sam.
Intentional interference with contractual relations Would lose because they didn't know
equal employment opportunity commission (EEOC)
Investigate cases of alleged discrimination and file civil lawsuits, if they decide not to move forward you can file your own case, has to try to settle if it can (backpay if you are illegally fired, issue injunctions against future violations, punitive damages)
Ian has a rare allergy to perfume, and is unable to breath comfortably whenever he is exposed to any artificial scents. Ian applies for a job in a marketing firm, and notifies the company of his condition asking them to ban perfume from the office. The firm ultimately decides it cannot accommodate Ian's allergy.
Is the company willing to let him work from home Reasonable accommodation if company was willing to do it
Sharon, a devout Christian, is willing to hire employees from any religious faith at her small business, but insists on printing Biblical verses on all company paychecks. A Jewish employee of the business complains about the verses, and Sharon fires her. The employee sues, alleging religious discrimination.
It's fine, not discrimination FIRING- is not allowed- retaliation claim
The police are investigating Thomas for embezzlement and have assigned a car to monitor his house 24 hours a day. One night the officers spot Thomas carrying a box of documents into his fenced- in backyard, along with a can of gasoline. The officers immediately rush into the backyard and seize the documents from Thomas without a warrant.
Lawful because evidence is likely to be destroyed
legislation
Laws drafted and passed by elected representatives Statute or Act: legislation enacted by Congress or a state legislature Ordinance: legislation passed by local government (city or county)
XYZ Corp. is losing money and decides to cut costs by laying off some employees. The company ultimately laid off 15 employees, all of whom were at least 45 years old and received above average salaries. The laid off employees sue for age discrimination
Maybe- are there 30 year olds making just as much If they could have reached the same cost savings with younger employees, then it would be age discrimination Comes down to motivations and salary distributions of the company
The police are conducting a search of a residential neighborhood in hopes of finding an escaped fugitive. Jonathan allows the police to look for the fugitive in his garage. While in the garage, the police find illegal weapons and arrest Jonathan.
Maybe- you would need to know more Was consent for a search- where were the illegal weapons found (tiny drawer vs. closet)
Nicholas enters a two year written lease for office space for his business with fiona Nicholas closes his business 6 months into the lease, and vacates the office space Rather than find another tenant, the landlord, fiona, waits until the end of the two year lease term and them sues nicholas for the full amount of unpaid rent. compensatory damages?
No compensatory damages- should have found another tenant
Charles, the owner of a small automotive repair shop, begins each workday by leading his staff in an optional prayer session. Gavin, an atheist mechanic, complains that the prayers make him uncomfortable, but Charles refuses to stop the practice. Gavin sues, alleging religious discrimination.
No religious discrimination, 100% optional
Trisha agrees to fix charlotte's car for $500 Halfway through the job trisha tells charlotte that she is going to need an additional $200 to finish the job
No to $200 because she already promised to fix the car
Trevor is an agent of the Castle Arts gallery, responsible for acquiring new works of art of the gallery to sell. During a recent visit with an up-and-coming new artist, Trevor sees several works that he believes will sell for a lot of money. Trevor decides to purchase the art himself, rather than buy it for Castle. Would Trevor be allowed to do this?
No, violate duty of loyalty
Bobby is under investigation for tax evasion. He asks his friend Alton if he can store some incriminating documents at Alton's house, and Alton agrees. The police eventually learn that Bobby had hidden the documents at Alton's house and charge Alton with both conspiracy and aiding and abetting.
Not conspiracy Aiding and abetting yes (does he know they're incriminating)
Jenna is waiting in line to enter Assembly Hall for a basketball game Saturday afternoon. While waiting, she overheads two men in front of her discussing a top secret announcement their company is planning for Tuesday. Jenna buys the company's sock on Monday, and sells it after the announcement on Tuesday for a profit.
Not insider trading
Douglas, an engineer at Boeing, knows that the company is about to announce its revolutionary new airplane on Wednesday. The moment after the announcement goes public, Douglas purchases thousands of shares of Boeing stock, and then resells those same shares hours later for a significant profit.
Not insider trading since made public
Tina is hiring a new office assistant for her small business. She interviews Jake for the position, but immediately rejects him despite his strong credentials upon learning that he is left-handed, explaining that she doesn't want to have to buy a pair of left-handed scissors for the new hire.
Not on the list so it's fine Office equipment- disparate impact
After successfully completing a sales pitch to a new client, Bob slaps his colleague Sharon on the butt in excitement at having landed a new account. Sharon complains to her boss, and Bob is disciplined but not fired because it is the first time he has acted inappropriately. Sharon sues for sexual harassment, claiming she feels unsafe around Bob.
Not sexual harassment, first-time, company responded immediately
The female employees of a local bank decided to rate their male colleagues from most to least sexy. After the list is finished, one of the women posts it in the employee lounge. Ralph, one of the lowest rated men on the list is deeply upset when learning of his ranking, and files a sexual harassment suit against the bank.
Not sexual harassment, one time If company takes proper action
Harold is a door-to-door vacuum salesman working for the Manta sales company. When greeting a customer, Harold says that he works for a vacuum sales company, but does not directly disclose which firm, and sells a variety of different brands of vacuum. During a recent sales call, Harold convinces Carol to buy a new vacuum. What type of principal is Manta?
Partially disclosed principal
Charles installs a new roof on rashida's house for $10,000 After the job is finished, rashida is so happy with the work that she promises to pay charles an extra $1,000 Rashida later changes her mind and refuses to give charles more than $10,000
Past consideration modification- no IF he offered extra work OR relied on the $
english speaking requirements
People born outside the US Give rise to disparate impact claim Business necessity defense (communicating with customers who only speak english)
Limitation of State Police Powers
Powers reserved for state governments A state will pass a law under its police powers- but the nature of the law affects how people do business in other states
Exception to consideration requirement
Promissory estoppel: if one party has promised a gift to another party and your justifiably reasonably rely on that, and you spend some of that money, one party would have to follow through on that money
copyright
Protects expressive forms of communication (songs, books, films, etc) Do not protect ideas themselves, protect forms of expression Protected the minute you write/create your work Before you can go into court, you have to have registered your work Work has to have Copyrightable subject matter Songs, books, films, shows, paintings, dance, etc Has to be fixed in a tangible medium There is a record of it somewhere Has to be original and creative Do not need to register work to be protected, but must register work before filing suit Copyright duration Lasts for the author's lifetime plus 70 years 95 years if a corporation Copyright enforcement Civil: owners sue for injunction and/or monetary damages Defense: fair use- making fun, parody, etc, criticize Criminal: intentionally violating another's copyright for financial gain
height and weight requirement
Requiring people to be tall, weight Courts are skeptical of this because there are very few instances that these are actually necessary Bar bouncer: just 280 weight- not really necessary bc lighter people can be stronger
appellate courts
Review the outcome of the case in the trial court Convince 2 out of the 3 judges that the trial court judge was wrong Federal circuit courts: federal court of appeals Regionally driven (11 courts) The results differ based on political party by location
Bob, a resident of oregon, sues goodyear tires, a company headquartered and incorporated in Ohio, and its salesman Harold, a resident of Oregon, under state law for selling defective tires Seeks $250,000 in damages
State law -> state court No diversity of citizenship
Dormant Commerce Clause
States cannot regulate intrastate (in their own state) matters in a way that burdens interstate commerce Ex. traffic accidents on the highway- semi trucks blend into horizon IN passes a law saying all trucks have to be painted red IL has same concern but they want all their trucks painted orange
Susan owns a local sandwich shop and employs several delivery drivers. She has instructed all of her drivers to always abide by all traffic laws and never speed when making deliveries. During a recent delivery, one of her drivers, Adam, gets into an accident after driving 15 MPH over the speed limit. Who is responsible?
Susan is responsible
exceptions to search warrant requirement (5)
The person consents to the search Search of a car with probable cause If there was another crime committed (car example) Search of a person and their immediate area following an arrest or detainment Evidence is likely to be destroyed (flush drugs down toilet) No actual or reasonable expectations existed - in an office space open to public
trade secrets: requirements, enforcement, length of time it lasts
Valuable commercial information that is not publicly known Two requirements The owner has taken reasonable measures to protect the knowledge or information Example: storing in a secured location, using firewalls for computer networks, nondisclosure agreements. Knowledge or information has economic value from not being publicly known, Civil: the owner can seek an injunction and/or monetary damages criminal: theft of trade secrets can result in up to 10 years in jail and/or fine of up to $5 million Last forever as long as the requirements continue
Hoping to reduce wear and tear on roads, Missouri passes a law banning any commercial vehicles from passing through the state by using state highways unless cargo is to be delivered or picked up within the state
Violation of the dormant clause
Karen, who is deaf, works as a staff accountant for a major U.S. corporation. Karen repeatedly requests that the company provide a sign language interpreter for her for staff meetings and training, but the company refuses. Karen sues for disability discrimination.
With a big company, probably have the budget for that Karen would probably be successful- unless there is other ways she can learn the information
Stephen works on the assembly line at an automobile manufacturing facility. One day at work his hand is severely injured when it gets caught in a machine. Stephen does not believe that the accident was his employer's fault, but knows that he will be unable to work for at least 6 months. What type of compensation should he file for?
Workers' compensation
TransContinental Corp. currently has approximately 10,000 employees. In order to cut costs, the company plans to layoff 1,000 of its employees during the month of November. Does the company have to provide written notice before conducting the layoff?
Written notice under warn- yes, over 100 employees, over 500 employees- mass layoff
An insurance company maintains a database containing its entire customer list Access to the database is password protected, and employees must acknowledge that the database contains confidential information before accessing any customer information Three insurance agents download the customer list before leaving the company to begin their own insurance agency
Yes- trade secret, password protected, making $ from list of customers, have to acknowledge that its confidential
Carol finds a camera sitting on a bench in the mall
abandoned/mislaid MISLAID - goes to mall owner
Gina takes a lamp sitting next to a trash can on the curb the night before the trash is picked up in an upscale neighborhood
abandonment - next to the trash
mirror image rule
acceptance must be identical to the terms of the offer If any changes, then not an acceptance but is a counter offer Under common law
partially disclosed principal and agent has actual or implied authority
agent and principal are liable, either side could sue to enforce the contract
two factors to figure out who is liable to whom in a contract
agent authority and principal disclosure
undisclosed principal regardless of agent's agency status
agent takes liability, if identity becomes known, they would be able to sue principal
lawful purpose
agreement has to be legal
common law (contracts)
all other contracts not involving goods All non-good contracts- state by state basis Real estate, service agreements (ex. netflix), employment contracts
Marketing defect/failure to warn
all paperwork you get when you receive the product, failed to warn consumers about non obvious danger
disparate impact
allegation of indirect discrimination (car dealership example)
compensatory damages
an award of money to put the damaged party in the same financial position they would have been in had the contract been performed Ex: original price $1,000, you break contract, i buy it from someone else for $1,500 Court would pay you $500 The victim has a duty to minimize their damages
disparate treatment
an intentional act of discrimination (not as common as you would think)
negligence
an unintentional injury resulting from the defendant's failure to use reasonable care - malpractice Most common case in US Five required elements
defenses to disparate treatment (2)
bona fide: (ONLY APPLIES TO RELIGION, GENDER, NATIONAL ORIGIN)- if the employer can argue that one of these things had actual qualifications (churches, bathroom attendants) same decision: would have made the same decision
capacity (3 categories of people)
both parties have to mentally understand what they are doing Minors: Disaffirm the contract- return whatever you got Necessities of life, education, emergency services Other side is bound by the contract Intoxicated persons - 1 beer versus 20 beers Mentally impaired individuals Many have a legal guardian who helps them and can enter into contracts for them
specific performance
breaching party ordered to perform as agreed in the contract Only used in cases where the consideration involved in highly unique (ex selling mona lisa) real estate, antiques Never for personal services (not going to force someone to work for someone else against their will)
adverse possession
can become the owner of someone else's land if you live on it or use it long enough without their permission, open and notorious, actual and exclusive, continuous, wrongful, period of time
Jennifer and spencer voluntarily agree to arbitrate their dispute following a car accident. In deciding the case, the arbitrator misapplied the law in favor or spencer. Jennifer wishes to have a court review the decision
cannot have a court appeal (you voluntarily agreed)
Mitch hires greg, an accountant, to prepare his taxes After greg has completed and submitted mitch's tax returns, the two get into a dispute regarding greg's bill. common law or ucc
common law because its a service
Walter agrees to purchase a house from lisa for $250,000 Before the sale is finalized, walter changes his mind and backs out of the contract Lisa sues to enforce the agreement under common law or ucc?
common law because its land not a good
workers' compensation
compensating workers who are injured on the job, if you can show the injury was at work, you will be given some compensation, if you decide not to file for this you can sue employer (have to pick)
conspiracy required elements (4)
conspiring with others to commit a crime Four required elements A plan or agreement The defendant willfully joined the conspiracy One of the co-conspirators knowingly committed an overt act The overt act was committed in order to accomplish an objective of the conspiracy
duress (void a contract)
contract entered under a force of threat of force
Candice, a Muslim, applies for a job at a Christian bookstore. During her interview, she admits that she isn't a Christian and is immediately rejected.
disparate treatment on the basis of religion. Store could be sued successfully
litigating civil rights act discrimination cases
disparate treatment, disparate impact, retaliation
undisclosed principal
don't know principal exists and who it is
aquisition via gift
donor has to intend to give the gift away and has to physically give the gift away
agent owes the principal 3 duties
duty of loyalty: best interest duty of care: agent makes good effort to do best duty of obedience: do anything principal says besides violate law
tort liability (independent contractors) - when is employer responsible?
employer is generally not liable for independent contractors. 2 exceptions: inherently dangerous activity and negligently hired
tort liability (employees) - when is employer responsible?
employer is liable when employee was acting within scope of employment. exception: frolic vs. detour
Thomas, a resident of florida, sues Max, a resident of florida, for a violation of federal patent law Thomas seeks $1 million in damages
federal law, so goes to federal court
fair labor standards act (FSLA)
federal minimum wage ($7.25) and 40 hour work week, if someone works more they are entitled to overtime pay 1.5 times normal pay for any hour worked
possible discriminatory acts
firing, refusal to hire, compensation differences, differences in any other term, condition, or privilege of employment (working hours, retirement/heatlh benefits)
Tony lives with his wife Nancy in a house that Nancy bought before they were married. Nancy remains the sole owner of the property. One day, while Nancy is out of town, Tony gives his new neighbor Richard permission to remove two trees on the edge of Tony and Nancy's yard. Upon returning home, Nancy is furious to learn that Richard has cut down her trees, and she sues him for damages. Can Nancy sue Richard?
for damages. Apparent authority, can't sue
acceptance
forming a contract by agreeing to an offer No special means of language required- any reasonable means of assent is sufficient
uniform commercial code (contracts)
governs the sale, rental, or lease of goods Movable, tangible, personal property - NOT a fixture or intangible property All 50 states have passed this law -> uniformity problem Rare case where all 50 states agreed
search warrant
identifies certain areas/people, gives them authority to search Require the police to make a showing of probable cause More likely than not that a crime was committed, and more likely than not that the search will lead to evidence that will help solve the case If no search warrant is obtained prior to the search and no exceptions apply- then any evidence that is found is inadmissible in court
rule of first possession
if you were the first person to possess an un owned item you would be its owners- rare today
Paula meets Colleen, her old college roommate and a high level executive at Apple, for dinner. During the meal, Colleen tells Paula that the company is planning a top secret announcement for the following week. Paula races home after dinner to buy Apple stock based on Colleen's disclosure.
insider trading
mislaid property
intentionally set something down and then forgot it Owner becomes the "restaurant owner" after 30-60 days
insider trading
it is illegal to profit from a stock transaction based on confidential, non-public information Employees are always forbidden from trading based on inside information Have to wait until the information is public, then you can trade, Could go to jail, criminal damages are triple whatever profit you make
worker adjustment and retraining notification act (WARN)
large layoff must provide notice (ONLY APPLIES TO BUSINESSES WITH 100 OR MORE EMPLOYEES- 60 DAYS) - shut down a whole employment site (50 or more people written) - mass layoff: 500 or more employees or 1/3 of workforce (whichever # is lower) fired in 30 day period - if fail to meet requirements, pay up to $500 per employee per day that you didn't inform and back pay for time they didn't have notice - exception: out of nowhere bankruptcy
common law system
law mainly developed through judicial decisions- more fair Emphasizes the roles of judges in creating, interpreting, and applying the law Originated in England, mainly used in former English colonies- live by other decisions Governed by the doctrine of stare decisis- to stand by things decided Judges have significant power over the law
lost and mislaid property
leave purse in a restaurant booth True owner has a limited period of time to come back and get it
trademarks: requirements, enforcement, length of time it lasts
logo/slogan has to be something that is unique to your company R with circle- federal trademark ™ - trademark protected under state law Federal protection potentially lasts forever Owner must: continue to use trademark and have to renew registration after the first 6 years and then every 10 years thereafter Civil enforcement: the owner sues infringers directly for injunctions and/or monetary damages Owners must vigilantly protect their trademarks or else they may become generic Defenses to infringement: trademark is not distinctive Little chance of confusion by the public - different industries Fair use - not trying to compete with the company, if someone is trying to criticize a company Infringement: pretending to be another company- using their exact logo Criminal enforcement: counterfeit products sold for profit
Laura buys a used bicycle at a yard sale after the owner tells her it is 2 years old, thinking it had been purchased in 2020 The bike was actually purchased in 2019, and thus is 3 years old
misrepresentation
Ian offers to sell kevin his three year old, black mustang for $5,000 Kevin accepts, thinking it is a great price for a three year old car Two days later, ian delivers a mustang horse to kevin, and kevin refuses to pay
mutual mistake
A jury awards jennifer a $3 million in a federal court tiral against her former employer for sexual assault On appeal, the federal court of appeals reverses the verdict, finding that the trial court judges incorrectly instructed the jury and rules that Jennifer is instead owed $25,000 Does jennifer have an automatic right to appeal this decision to the US supreme court?
no
Lucas agrees to sell his digital camera to his best friend ryan for $250, but later backs out of the deal Ryan sues, asking the court to order lucas to specifically perform his end of the bargain Specific performance?
no because the camera isn't unique Ryan must buy a different camera and sue for the difference
Tim offers to sell his sofa to john for $300 on the condition that john accepts by saturday Sunday morning john calls and tells tim he'll accept
no offer
Joseph's grandmother promises to give him $10,000 for his 18th bday Joseph turns 18 and asks his grandmother for the money
no promissory estoppel not legally enforceable
Stan, the local sheriff, notifies the town's newspaper that he has heard a rumor that the paper will be printing a report containing false statements about a local police officer Stan tells the paper that it will only be allowed to print the story if stan is able to review it for accuracy before publication
not allowed
Hierarchy of Law
o 1) US Constitution o 2) Federal Statutes o 3) Federal Administrative Regulations o 4) Federal Executive Order o 5) State Constitutions (apply only in the applicable state) o 6) State Statutes (apply only in the applicable state) o 7) State Administrative Regulations (apply only in the applicable state) o 8) State executive order Local ordinances (apply only in the applicable locality) Judicial decisions/case law/court opinions
five elements for a valid contract
offer, acceptance, consideration, capacity, lawful purpose
freedom of speech
only if the government tries to punish you Ex. wearing a democratic button and police arrest you- violation of freedom of speech If you work for a private corporation and wear a democratic button, they could fire you for that
Amanda, a resident of texas, sues timothy, a resident of new york, under state law for injuries she sustained in a car accident Amanda seeks $100,000 in damages
optional (either)
how to differentiate between employee and independent contractor
p - payment l - length o - occupation t - tools s - skills and contract
consideration
parties both agree to give something of value to one another under the terms of the contracts Contracts required mutuality-both sides receiving something of value from one another Past consideration is not sufficient- if all i am getting from you is something you have already done for me - as of the date of the contract
Max invents a new computer interface for cars that can help reduce the likelihood that the car is involved in an accident by 35% He believes that others could easily reverse engineer his system once it is on the market, and that it is likely to be replaced by superior technology in the next ten years
patent
patents: requirements, enforcement, length of time it lasts
patents give the owner a 20 year monopoly No ability to renew the patent, Machine Process (henry ford assembly line) Composition of matter Improvement on any of the above Certain designs (bunny slippers) Certain plants (gmos) Don't have to actually build something, just have to prove you know the process Nonobvious, novelty, and usefulness, Patent Enforcement No criminal enforcement Civil: owner can use to prevent infringement, seeking an injunction and/or monetary damages Defenses: Non-infringement: the accused product doesn't violate the patent Invalidity: the patent should not have been issued
trial process
pretrial process, pleadings, complaint, answer, (reply), discovery, trial, jury selection, opening statement, presentation of evidence, closing argument, jury instructions, jury verdict
disclosed principal & agent has apparent authority
principal is bound to the contract, principal could sue agent
disclosed principal & agent has actual or implied authority
principal is liable to third party
partially disclosed principal and agent has no authority
principal is never going to be bound
disclosed principal and agent has no authority
principal is not bound (agent to third party)
production defect
product itself was defective, something wrong with it that was not intended
4th amendment
protects against illegal searches and seizures Police generally need a search warrant before searching your person, premises, or property
apparent authority
public believes that this person is an agent, but in reality they do not have the authority
at-will employees cannot be fired for
public service obligation, exercising statutory rights, whistle blowing
defamation
publication of untrue statements about another, leading to damage to the person's character or reputation Has to be untrue, has to inflict financial damage Defenses: truth- might not be able to prove true Public figure/public official- if they are a public figure, have to prove they INTENTIONALLY said something false
religious scheduling requirements
religious days off Reasonable accommodations
David encourages his colleague Violet to file a discrimination lawsuit against their boss after she is passed over for a promotion in favor of a less qualified male colleague. Upon learning of David's encouragement, the boss fires him. David sues under the Civil Rights Act.
retaliation
employer-employee relationship
semi-permanent contractual relationship, most common, employer can control employee's actions within reason
employer-independent contractor relationship
someone hired to perform a specific task, not directly controlled by employer, can work for multiple different people at the same time (plumbing, real estate agents)
lost property
something you never wanted to lose (something where the owner didn't set it down and forget it)- goes to the finder
offer
specific promise and demand To be a valid offer, the promise and demand must be sufficiently definite (clearly laid out) Party making the offer has to intend for it to be taken literally Termination of an offer prior to acceptance: By revocation By provision in the offer (ex. Have to let me know by saturday) By rejection or counter offer (legally considered a rejection) By lapse of a reasonable period of time under the circumstances By death/insanity By destruction of the subject matter For illegality If any of these occur before the offer is accepted, there is no contract
termination of agency relationship
termination, lapse of time, purpose achieved, operation of law (bankruptcy, death, destruction of subject matter)
trade dress
the design and shape of the materials in which a product is packaged Legally protected when the trade dress helps identify the source of the good or service Coca cola v cocaine example: size of can/volume, different products, font is different, different parts of the store
