Business Law Journal
You will select 2(two) questions from each Standard
Standard 1—Understand the origins, ethics, and structure of national and international legal systems.
1. Some people feel that laws that force them to wear a seatbelt infringes on their personal right
to choose. Explain the seat belt law using the greatest good principle and then discuss your
opinion of the seat belt law. Do you think people should be forced to wear a seat belt? Why or
why not?
2. Clarisse was driving home from school in her small pickup. Her stereo system was blasting when
she was pulled over by a police officer. The officer cited her for violation of the city’s noise
ordinance. As he did so, his voice was partially drowned out by sounds of jack hammering from
a nearby construction site. Clarisse asked the officer why he had not cited the construction
company as well. He replied that, even though the company was in violation, the noise
ordinance had been put on the books to stop people from playing loud music in public, not to
stop honest work. Where do you stand? Is the ordinance fair? Has the ordinance been fairly
applied? Can you suggest some changes in the ordinance that might make it a better law?
3. Sixteen year old Brittany’s parents were hit and killed by Ann, a 21 year old intoxicated driver
who was trying to speed away from police. Ann’s attorneys were able to have the blood test
evidence that showed intoxication thrown out at trial. She was convicted only of two counts of
second degree manslaughter and leaving the scene of an accident. After serving a week of
“shock” jail time, she was set free on probation. Outraged at what she termed the failure of the
legal system, Brittany took her foster parent’s car and ran Ann over in the street as she left the
jail. Ann was crippled for life as a result. Where do you stand? Was Brittany morally justified in
her actions? What action should the law take against Brittany?
4. Select two amendments to the US Constitution that you feel are the most important to your
personal rights. How would your life be different if these amendments were taken out of the
Constitution?
5.
The original draft of the Declaration of Independence condemned the slave trade and criticized
the English people. Both passages were edited out by the delegates of the Continental Congress
before the Declaration was approved? Where do you stand? Why do you think the passages
were omitted? Was omitting them a good or a bad idea? Why?
6. Most people feel strongly about the death penalty one way or another. What are your views
about the death penalty? Do you believe it is ethical or do you believe life in prison is a better
alternative?
7. The young mother of a child witnessed her husband beating their six-year-old son. She told her
neighbor in confidence. The neighbor reported the incident to the police. Do you think both the
mother and father should be convicted of child abuse? Why or why not?
8. Trent was cycling with friends on a bike path when a pedestrian who was not paying attention
walked in Trent’s path. Trent was thrown from his bike, injured, and taken to the hospital. He
signed a release not to sue the pedestrian and the pedestrian agreed to pay the hospital bills.
Months later, Trent learned that a friend of his won over a million dollars in a similar situation.
He now wants to sue the pedestrian. Can he do this? Why or why not? Do you think he should
be able to do this? Why or why not?
Standard 2—Understand the elements of a contract.
1. Ahman, who is 17, agreed to sell his car to Terrell, who is 18, for $500. Terrell paid Ahman the
$500 and took possession of the car. When Ahman's mother found out, she told him to give the
money back to Terrell and get his car back. Terrell refused to return the car claiming they had a
contract. In court, Ahman's mother was able to prove no contract existed because Ahman was a
minor and had no capacity to enter into a contract. Do you feel Terrell should be required to
give the car back? Why or why not?
2. Trenton and Elisa were students in a class on movie production. Knowing that the final movie in
the Alien Cheerleader trilogy was about to come out. Trenton camped out overnight at the
theater. He bought two tickets, and then asked Elisa to go with him. Elisa agreed. To be able to
go, however, she had to call in sick to her evening job as a waitress. Not working that evening
would cost her more than $100 in wages and tips. Nonetheless, she made the call. When
Trenton did not show up to get her, she confronted him. He admitted he had sold the tickets to
someone else for $50 each. Where do you stand? Should Elisa be allowed to sue Trenton for
not taking her to the movie? Would your answer change depending upon whether or not
Trenton knew Elisa would lose income by going?
3. Responding to an ad from the local electronics store, your friend buys a personal data assistant
(PDA) for $250, including a foldout keyboard and a portable printer. The keyboard and printer
were shown with the PDA in the ad but noted as optional equipment in her excitement, your
friend signs the credit card sales receipt, which is not itemized. She fails to note that the two
items add an extra $198 to the price. When the credit card statement listing the total purchase
price is $448 plus sales tax arrives, your friend objects. Where do you stand? State two reasons
why it would be fair to allow your friend to withdraw from the contract. State two reasons why
it would be fair for your friend to be bound to the contract. Which reasons are more
persuasive?
4. For a college graduation present, a wealthy aunt promised to give Maureen two round-trip
tickets for a cruise for her and a friend. The promised trip was to be along the “Mexican Riviera”
from Long Beach, California, to Acapulco, Mexico. At the graduation exercises, however, her
aunt gave her a kiss instead and said, “The stock market is down. Sorry, darling! Where do you
stand? State two reasons why you think the aunt is legally obligated to provide the tickets.
State two reasons why you think the aunt should not have to pay.
5. Parker entered a contract with Arthur Murray, Inc. to learn how to dance. The contract
eliminated any possibility of getting a refund. Later, Parker suffered a permanent disability that
made it impossible for him to dance. The dance company pointed to the anti-refund provision
and refused to give Parker his money back. Parker sued, arguing that the impossibility of
performance ended the contract. Arthur Murray argued that the anti-refund provision
overruled the impossibility of performance doctrine. Who do you think is correct? Explain your
answer.
Amanda and Bob, a successful young married couple, began the redecoration of the kitchen in the
antebellum house they had just purchased outside of New Orleans. They contracted with several
artisans in the effort. Anton, the owner of a custom cabinet shop, worked closely with Amanda to
develop a pattern in the period of the house. After taking measurements, Anton set about making
the cabinets to fit the unique dimensions and style of the house’s cooking area. As the work was
nearing completion, Amanda and Bob decided to divorce. They notified Anton to stop work and told
him he would not be paid as he had not completed the job. Anton sued. Where do you stand?
Should Anton be able to recover? Why or why not? Discuss the ethical reasons in Anton’s favor.
Standard 3— Understand employment, agency, environmental, energy, and intellectual
property law
1. Tony believes Sara is a salesperson working in the appliance department at the Alomar Brothers
Department Store. It turns out that she is actually a disgruntled former employee who is now
impersonating a salesperson. Tony gives Sara $100 as a down payment for a new DVD player,
and she runs off with the money. Do you feel Alomar Brothers Department store should be
liable to return the $100 to Tony? Why or why not?
2. How do you feel about Child Labor Laws? How would things be different if we did not have
these Laws? Have they directly affected you in some way?
3. Do you think women and men are treated equally in the workplace today? Why or why not? Do
you think women and men should be treated equally? Why or why not?
4. Anthony Destin works as a junior designer at a large fashion house called Berentinos. After two
years on the job, Anthony learns that his co-worker Sarah Blake earns 35 percent more than he
does. Anthony and Sarah were hired at the same time and have exactly the same job. Anthony
has five more years’ experience in the field than Sarah does. Anthony discussed his concern
with Tom Sortee, one of his colleagues. Tom commented that such discrimination against males
has long been the rule of Berentinos. Anthony loves his work but can’t help feeling he is being
treated unfairly. Where do you stand? What alternative course of action, other than filing suit
in court, might Anthony utilize to bring about a resolution of the issue? Does Anthony have a
duty to anyone, legally or morally, to bring lawsuit instead?
5. Every time Chanelle’s science teacher asked her a question during class, the teacher walked over
to her desk, squatted down, and placed a hand on Chanelle’s thigh. Chanelle found this
behavior extremely offensive. Finally, in private, she politely asked the teacher to stop.
Although the teacher seemingly agreed, the next time Chanelle raised her hand the teacher
behaved the same way. However, this time when the teacher extended her hand to place it on
Chanelle’s leg, Chanelle twisted violently away and slammed her knee into the other side of her
desk. Where do you stand? What corrective action could Chanelle take within the school
structure? Regardless of whether or not she tries to resolve the problem within the school’s
structure, has Chanelle received a personal injury for which she could bring suit in court?
6. After two years of courtship, Alexis, the widow of a famous American diplomat, accepted an
engagement ring from Osiris, a billionaire Russian businessman. Osiris desired not only Alexis,
but also the prestige a marriage to her would bring. Alexis called in her attorneys to negotiate
the prenuptial agreement with Osiris’ attorneys. After a week of negotiations, the agreement
was signed by both parties. The couple then said their vows of love and devotion in a simple
ceremony at a Black Sea resort. Where do you stand? Should agents (the lawyers) be used in
such an intimate setting to put a price tag on feelings? Does not this disrupt the basic concept
of marriage of “from two, one?” Justify your answer. Given the disruptive effects of “blinding”
love on individuals, should any such prenuptial agreement be enforceable? Why or why not?
7. Charlee Brawn is a laborer working at harvesting various crops throughout the western part of
the United States. Her employer hires thousands of laborers and contracts their labor out to
various farmers to pick vegetable and fruit. The hours are extremely long, typically spent in
direct sunlight, and the pay is minimal. She dices to try and improve things. Where do you
stand? Do you think it is likely that Charles can get things changed as an individual worker?
Identify the problems Charles might encounter in trying to form a union. Does such an action
seem possible?
8. Joaquim worked at a sandwich shop in lower Manhattan. On Halloween, the owner of the shop
asked all her employees to wear costumes. Despite a heavy rain, Joaquim, who loved
Halloween, came in an elaborate wizard’s costume that he owned. He had a long gray wig, a
flowing robe, and a tall peaked hat. Unfortunately, while sneaking a cigarette in one of the
restrooms during a break, which was against the shop’s policies, Joaquim caught the wig on fire.
He was unable to get the wig off immediately or to put out the fire, as the shop’s fire
extinguisher was empty. Instead he ran outside the shop where the rain eventually doused the
fire. Joaquims’ real hair was burned off and he suffered minor burns to his hands. When a daily
newspaper covered the story with color photos shot by a passing tourist under the headline.
“Wizard Wigs Out,” the shop’s business increased twofold. Now Joaquim is considering suing
the shop for negligence. Where do you stand? Why should the store be required to pay for
Joaquim’s injuries? Why should the store not be required to pay?
9. Norm was a foreign correspondent for a large national television network. One afternoon he
took his expensive watch to a jewelry shop to be repaired. The jeweler recognized Norm and
told him he watched his network. The jeweler said the watch would be ready the next day.
Norm left the store. He then received a call telling him to pack and head for Western Russia.
When he went to get his watch, almost four months later, the jeweler told him he had sold it
after sending Norm ten reminders. Norm responded that there was no mail service where he
had been. The jeweler shrugged and said he was just following the state’s artisan’s lien laws.
Norm’s attorney ultimately bought suit against the jewelry store for damages. Where do you
stand? What are the jewelry store’s reasons for selling the watch? What legal reasons support
Norm’s suit?
Standard 4— Understand financial, credit, and bankruptcy law and insurance
1. Do you think brothers and sisters have an insurable interest in each other? Why or why not?
Would you buy an insurance policy on your brother or sister? Why or why not?
2. You start a successful business. To insure against lost due to employee dishonesty, you must
have fidelity insurance. You apply for it knowing that Joan, one of your managers, has served a
prison term for theft. She has had many opportunities to take money from your business, but
she has not done so. If you tell the insurance company about Joan’s record, your rates would be
so high that you would have to fire her to stay in business. Two years after you take out the
policy, another employee steals $50,000. The insurance company performs a back ground check
on all your employees. It finds out you knew about but did not report Joan’s record and refuses
to pay the claim. Where do you stand? If you sue to force the insurance company to adhere to
the policy, what are the legal reasons supporting your staff? What are the legal reasons in favor
of the insurance company?
3. Joanna accepted a check from Rebecca in payment for a CD player in the amount of $75. When
she took it to the bank to deposit, she realized Rebecca forgot to sign it. She figured it was just
an oversight, so she signed Rebecca’s name on the check. When she handed it to the teller, the
teller refused to deposit the check because it was not Rebecca’s signature. How would you feel
if you were Joanna? How would you feel if you were Rebecca?
4.
When your sister returned home from college for Thanksgiving break, she brought her
boyfriend with her. The boyfriend was given your room, and you slept in the den. Sunday after
the holiday, after they had returned to school, you took possession of your room. Later that
evening you looked for your checkbook, but it was not in the usual drawer of your desk. Finally
you found it behind the dresser where you normally place it while undressing. Curious, you run
through your check register and compare check numbers. It seems as though two are missing.
However, you often forget to record them so you do nothing. When your next bank statement
arrives, you find that two checks have been written on your account that you do not believe you
wrote. You call the bank and they retrieve the photocopies of the checks. The signatures on the
checks are not even close to yours, yet the bank, in violation of its contract with you, has paid
them. When the bank refuses to credit your account, you bring suit against it requesting the
court to order the amounts of the checks credited to your account. Where do you stand? List
the legal reasons supporting your demand that the bank credit your account for the amount of
the checks. State any justification the bank may have for not doing so.
5.
Souquer is president of his own company, SpringGen. Earlier this morning his secretary,
Elizabeth, placed a stack of checks to pay monthly bills on his desk for his signature. As he
glanced through them he spotted a $5,000 check for electronic items to his old friend Bill
Hutton’s company. Later that week, he ran into Bill who mentioned that he hadn’t sold Spring
Gen anything in ages and expressed concern that his company had done something wrong.
Souquere investigated and found that over the last year and half, Elizabeth had him sign more
than $125,000 in checks made out to suppliers for goods they didn’t provide. She then took the
checks, forged the payee’s signature to indorse them in blank, and deposited them in her
account to be used to cover gambling debts. Subsequent to the discovery, the company
attorney sues both Elizabeth and the bank that cashed the checks against the company account
over her forgeries. It is discovered that Elizabeth has few assets. She just sold her home and
gambled away those proceeds as well. Where do you stand? From an ethical perspective, who
besides Elizabeth is at fault for SpringGen’s losses? What legal right does SpringGen have to
seek compensation for its losses from the bank?
6.
Buanna Myers sat at her desk at the Commerce Bank of Statusville. She was deciding whether
or not to buy a promissory note from Alyssia Thomas, the proprietor of Alyssia’s Autos. The
maker of the note was Televangelist Robert Shore, as president of Mercyland, a not-for-profit
corporation that managed low-cost rental properties. Buanna knew that many of the
transactions originating with Alyssia’s Autos had resulted in lawsuits, mainly because the
vehicles Alyssis sold were substandard. The note from Mercyland was the $78,000 for a bus just
purchased. Buanna knew that her higher ups at the bank would insist on collecting, even from
Mercyland. She also knew that if she didn’t buy the note, someone else would. Where do you
stand? Assume Buanna buys the note and the bus is defective. Should the bank be able to
collect? Why or why not. As the attorney for Mercyland, what arguments can you make to
allow the cost for repairs to be offset from the amount due on the note?
7.
Zenobia owned several rental properties in Walnut Grove. When they were unoccupied, she
had to mow their yards. If she didn’t, the city would mow them and bill her. As a consequence,
she bought a $3,500 riding lawnmower from the local hardware store. She financed $3,000 of
the purchase price, and the hardware store took a security interest in the lawnmower and
properly filed their financing statements to perfect it. A year later, Zenobia still owed $2,400 on
the lawnmower but had sold her rental properties. Just before moving out of state, she held a
garage sale and sold the lawnmower for $2,000 to her neighbor. Susan bought it in good faith
and without knowledge of the lien against it. Susan intended to use it to mow her home’s oneand-half acre lawn. Zenobia then stopped making payments and left no forwarding address.
Two months later the hardware store repossessed the lawnmower from Susan. Where do you
stand? As Susan was not a business person, but a consumer, should the hardware store legally
be able to repossess the mower? Why or why not. Ethically, is it right to favor an experienced
commercial entity over an inexperienced consumer?
Standard 5— Understand domestic relations law and wills/estate planning.
1. What age do you think should be the minimum age for a person to marry with and without
parental consent? Also, do you think these ages should be the same for males and females?
Why or why not?
2.
Ben, 16, had been dating Betsy for several months when he told his parents about the
relationship. Ben’s father had been in business with Betsy’s dad and the partnership ended
poorly. When his father heard the news, he told Ben to stop seeing Betsy. Ben refused, and his
father took away the car Ben bought with his own money, stopped paying Ben’s tuition, and
spent the funds saved for Ben’s college. With his mother’s backing, Ben brought suit against his
father for “improper parenting.” Ben’s father’s attorney filed a motion to dismiss the suit. The
motion stated that “improper parenting” was not a legitimate cause of action and that the
father had acted within his powers as a parent under the law. The lower court dismissed the
suit, and Ben appealed to the state court of appeals. Where do you stand? Make a persuasive
argument that emphasizes the legal reasons supporting Ben’s suit. Make a persuasive argument
that emphasizes the legal reasons supporting his father’s actions.
3.
Jewell Marie was 83 when she suffered her first stoke. She recovered well and went back to
living on her own about three blocks from her, and his family. Two years later she had another,
more serious, stroke. Her son then moved her into his home. The burden of caring for Jewell
increased. She would seldom eat and usually threw the food on the server. She had little
control of her bodily functions and had to be cleansed each evening by her son. Finally she
suffered a massive stoke and was placed in intensive care in a local hospital. Jewell remained in
a coma-like state for a week. Her doctor approached the son and suggested “off the record”
that he could put Jewell to sleep peacefully and permanently before the hospitalization
expenses ate up her financial resources. Where do you stand? Discuss the legal and ethical
reasons in favor of keeping Jewell alive. List the legal and ethical reasons for putting her to
“sleep.”
4. One morning while shaving Bill felt a lump in his neck. The lump seemed to grow over the next
few days, so Bill sought treatment in St. John’s hospital emergency room. The emergency room
physician, Dr. Compton, listened to Bill’s worried statement. Then, after nothing more than a
visual exam, the doctor told bill not to worry and started to leave the examining room.
Unsatisfied, Bill grabbed Compton’s hand and placed it on the lump. The doctor shrugged his
shoulders in disapproval but did order a set of X rays to be taken. The X rays ordered by the
doctor proved negative, and Bill was dismissed. Months passed, and the lump grew. Seeing the
lump one day, a friend recommended Bill see another physician. That doctor and his partners
diagnosed the lump as being a malignant growth on Bill’s carotid artery and indicated he had
but a few months to live. Where do you stand? From an ethical standpoint, identify the parties
and organizations that should share blame for what happened to Bill. What parties should be
held legally liable for what happened to Bill?
Standard 5—Understand the types of ownership.
5. A large American automobile manufacturer, responding to competition from small, gas efficient
foreign cars, rushed a model through production to compete with them. This vehicle had a
serious design defect that caused its gas tank to rupture and spray gas and fumes into the
passenger compartment upon even a minor rear end collision. As a consequence, the car would
burst into flames almost instantaneously causing grievous burns and death for its occupants.
When initially confronted in a civil case brought by a victim of the car’s defect, the
manufacturer’s executives denied knowledge of any problem. This defense was quickly
overcome by the testimony of a surprise witness, the manufacturer’s ex-safety engineer. He
stated that when he would not sign off on the car for production due to its problems, he was
fired. He also presented as evidence memos of the executives’ knowledge of a decision to
market the car regardless of the defect. After this information became public, a Detroit
prosecuting attorney brought criminal charges against the executives. Where do you stand?
Which party do you think should be held legally responsible in this situation? How would you
punish each? Which parties are ethically responsible?
6. Earl opened his recreational vehicle repair garage, Snowbird’s Nest, in Florida in the late 1970s.
He incorporated the garage as a C corporation. As the years wore on, Earl retained this status
although his CPA told him he was losing money due to the double taxation. Now that his
children are out of college and settled down, Earl has decided to take more risks. He plans to
expand his garage operation into a couple of other locations, start selling accessories for RVs,
and open an RV park. He also is considering taking a new business form. His CPA has advised
him that he can elect to be taxed as a subchapter S corporation just by filing a one-page form
with the IRS. The CPA even offered to do it for Earl for free. The CPA also told Earl that for
around $750, an attorney could move his company into an LLC form. Where do you stand? List
and discuss the reasons that Earl might want to assume the subchapter S form. List and discuss
the reasons that Earl might want to assume the LLC form.
Standard 6— Understand sales, consumer, property, and cyber law.
1.
While you are having dinner one evening, your laptop computer is stolen from the front seat of
your car. You do not report the theft for a week and a half. The police discover that the
computer was sold to an innocent purchaser by a pawn shop that has since gone out of
business. The new “owner” of the laptop is a pastor of a church that ministers to the homeless.
She bought the laptop from the pawn shop before you reported the theft to the police. When
you approach the pastor get the computer back, she refuses. She says that the church needs it
desperately to keep track of its “flock.” It is especially important during the current winter
season, when knowing where the homeless can seek shelter means life or death. You file suit
for the return of the computer. Where do you stand? What are the legal reasons for your suit?
What legal arguments could you anticipate the attorney for the church making?
2.
Edison buys a lawnmower from a department store. Because of a defect in design, a protective
plastic flap binds the lawnmower whenever the lawnmower is pulled backwards. For
efficiency’s sake Edison removes the flap. Later, as his son is pulling the mower backwards, he
trips and falls backward. Due to the lack of the protective flap, his foot shoots upwards into the
mower blade. Edison’s son, who was only wearing tennis shoes, loses half his foot. Later,
Edison brings suit against the manufacturer on behalf of his son. Where do you stand? List and
discuss the legal reasons supporting Edison’s suit. List and discuss the legal reasons supporting
the manufacturer.
3.
When he was 57, Neerow won $20 million in a state lottery. Upon receiving the first of 20
promised annual payments, he went on a spending spree. He had extensive plastic surgery,
including a face lift. Then he bought a condominium in Florida, a new car which he soon
wrecked, clothes he never even wore, and a mink coat for a casual friend. He staged many
parties including a wild New Year’s Eve party on a yacht for 50 new friends. While pursuing his
new lifestyle, Neerow totally neglected his business, which employed 10 people. The business
weakened to the point of near bankruptcy. Where do you stand? Give the legal rationale as to
why Neerow should be allowed to continue to waste his resources. From society’s standpoint,
should his wastefulness be stopped? Why or why not?
4. The wind picked up as Abrahms turned into the discount store parking lot, as she had many
times before. A big storm was approaching, and there were few cars in the huge lot surrounding
the store. She pulled into a parking space near the front door of the store and locked her new
car. Abrahms had to dodge wind-blown shopping carts that were sailing across the parking lot.
She watched a cart hit a nearby car leaving dent marks in it. Forty-five minutes later. Abrahms
pushed her full shopping cart out of the store to find the rain had stopped, but the wind was still
howling. She put her purchases in the trunk of her car. Then, wanting to avoid stepping in a
water puddle, she left her cart at the rear of her car rather than putting it in the cart corral some
distance off. As she walked towards the driver’s door, she saw the pattern of squares where a
cart had obviously hit her car. Angrily, she glanced up at the store only to spy in the store
window the large sign, yellowed with age: “NOT RESPONSIBLE FOR SHOPPING CART DAMAGE”.
Where do you stand? Ethically, who do you believe should be responsible for the damage to
Abrahms cart? Why? Legally, does Abrahms have a claim? Why or why not?
5.
Sally rented an apartment that had been constructed only a month before she moved in. After
she had lived there for a week, she discovered the fan in her bathroom didn’t work. Because
she was knowledgeable about electrical work, Sally made the repair to the fan herself. The she
told her landlord about the problem and her solution. She asked to be compensated for her
work at $35 per hour, the going rate for electricians in her community. Where do you stand?
What, if any are the legal reasons why Sally should be compensated for fixing the fan? What, if
any, are the legal reasons why the landlord should not have to compensate Sally for fixing the
fan?