Assignment 1 for Business Law II Medgar Evers College © 2014 Tobias Pinckney Read Chapter 32 of the Text: Agency Formation and Duties 1) What is the difference between an employee and an independent contractor? What criteria do the courts use to tell the difference? Read Chapter 33: Agency Liability and Termination (for next week) Discussion Questions: 1. What is the corporate structure of McDonald’s? 2.. In what ways is McDonald’s Corporation accused of violating workers’ rights? 3. Why does it matter whether or not McDonald’s Corporation is a joint employer of workers in McDonald’s restaurants? 4. What is the best argument for McDonald’s Corporation not being a joint employer? 5. What is the best argument for McDonald’s Corporation being a joint employer? 6. Explain the facts of the lawsuit contending over whether or not Browning-Ferris Industries is a joint employer. 7. What was the regional NLRB decision? Do you agree with it? 8. How do McDonald’s Corporation and Brown-Ferris industries differ as employers? Should there be any legal differences in their status as joint employers? 1 9. In a paragraph or two, write a brief opinion describing whether or not McDonald’s Corporation should be a joint employer for the purpose of resolving the alleged labor violations. EXTRA CREDIT: Search the NLRB website for the Browning-Ferris Industries d/b/a Newby Island Recyclery & FRP-II, LLC. d/b/a/ Leadpoint Business Services. (http://www.nlrb.gov/case/32-RC109684) Read any of the briefs or the regional decision to add new perspective to joint employer liability. Additional Work for Next Week: Read and write a case brief for the 4th Circuit Opinion in Young v. United Parcel Service, 707 F.3d 437 (4th Cir. 2014). 2 Mistake Contracts Questions (from the Contracts Emanuel Law Outline) 1. Jack agrees to sell Giant a goose for $20. Both parties think the goose is a regular goose, which Giant wants for breeding. (A) Before the goose is transferred or the $20 paid, the goose begins laying golden eggs, which makes her priceless. Jack refuses to uphold the agreement, and Giant sued to enforce the contract. Will a court force Jack to sell for $20? (B) Assume instead that before the goose is transferred or the $20 paid, both Jack and Giant witness the goose laying eggs that are gold in color. Giant says, “Wow, that’s bizarre. What do you suppose those eggs are made of?” Jack replies, “I don’t know, but I think it’s some alteration of the albumin content. Anyway, you can still have her for $20 if you want her,” Giant, who believes Jack’s assessment, agrees to go through with the deal. Shortly thereafter, Jack finds out the eggs are actually made of gold and refuses to consummate the sale. Will a court enforce the agreement? 2. After doing some spring cleaning in his wine cellar, Gatsby decides to sell several bottles of wine from the Magenta region of France. He enters into a contract with Daisy to sell the wine for $250. Both believe this to be the fair market value of the wine at the time. In actuality, wines from the Magenta region have gone up in value recently and the collection is really worth $500. Gatsby learns of this just before the sale is completed, and he seeks to avoid the sale. Can Daisy enforce the contract? 3. Mike Angelo, newly arrived in the United States from Italy, develops an immediate fascination with baseball. He visits “Leo’s Locker,” a baseball memorabilia store, to check out some baseball cards. The owner, Leo diVinci, has a slogan, “I love to dicker” – so he doesn’t put a 3 price tag on anything. Mike spots an old card with a famous name on it, and offers Leo $5,000 for it. Leo realizes that Mike has mistaken the player on the card – Babe Root, of the 1929 New York Spankies (an amateur team) for Babe Ruth, whose card would be work $5,000. Leo quickly accepts Mike’s offer, knowing the card is worth about fifty cents. Leo writes up a contract that they both sign, and Mike goes to the bank to get the $5,000. When he tells the bank teller about his find, the teller laughs hysterically, telling him of his mistake. Mike reneges on the deal. Leo sues. Mike defends on grounds of mistake. Who wins? 4. Shah Jihan is building himself a monument and needs a rock-cutting machine. He sees Mimzeh’s ad in the Bargain Trader Newspaper for a rock-cutting machine for $10,000. Shah goes to Mimzeh’s house and inspects the machine. Mimzeh accurately answers all questions Shah asks. Shah offers Mimzeh $10,000 for the machine, which she accepts. Before the transaction takes place, Shah finds out the tock cutter will not cut marble, which, unbeknownst to Mimzeh, is the type of stone Shah uses. Can Shah avoid the contract due to his mistake? 5. James Beardless, Army chef, solicits bids for a custom-built food processor with a work bowl large enough to hold 500 lbs. of chipped beef. (A) For this part, assume that Beardless receives bids on the project of $90, $600, $700, and $800. The $90 bid was from the Come-N-Get-It Food Supply House. Come-N-Get-It intended to bid $900, but made a careless clerical error in its bid. Beardless is impressed by Come-N-GetIt’s very low bid. Beardless thinks that Come-N-Get-It must be a very efficient producer; he doesn’t suspect that the bid’s lowness may be due to clerical error, and be therefore doesn’t re-confirm the price (though a reasonable person in Beardless’ position would have done so). Soon after Beardless accepts, Come-N-Get-It tells Beardless that it made an error, and that its bit should have been for $900. Can Beardless enforce the $90 bid price? 4 (B) Say instead that the bids were for $500, $600, $700 and $800, with Come-N-Get-It’s bid coming in at $500. Come-N-Get-It actually meant to bid $650, but made an error when adding up the figure for its estimate. Beard has no suspicion that they may have been an error ( and a reasonable person would not have had such a suspicion). Beardless accepts the offer of $500 and now Come-N-Get-It wants out. Can Beardless enforce the $500 bid price? 5