BUSN420
Question 1. 1. (TCO 1) Your Company has been sued for
product liability and has a case going to trial next week. In researching some
of the applicable cases, you have found some favorable language that interprets
the applicable statute. Your supervisor has asked you to write a summary of the
circumstances under which the judge should rely on existing case law to
determine the intent and purpose of a statute.
How do case law and statutory law interact in the American
legal process? Does one trump the other or take priority? When there is a
statute and case law that apply, does the court have any discretion in how to
apply the law to your case? (Points: 20)
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Question 2. 2. (TCO 2) The senators of Delmarva would like
to enact a statute banning the importation of any plant material into the
state. Although the ban may be burdensome on interstate commerce, the state’s
first concern is protecting their income-producing agricultural byproducts from
micro-organisms that may affect the health of the crops. There is no effective
way to inspect plant material for micro-organisms at its border.
Is this statute legally legitimate? What clause of the
Constitution would you use to perform your analysis and what are the elements
of the test that would be applied to test its constitutionality? (Points : 20)
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Question 3. 3. (TCO 3) The Smith family was traveling on
their summer vacation from Massachusetts to Wyoming. Along the way, the family
was involved in an accident when they proceeded to drive through an
intersection; they had the green light. At that same moment, the Jones family
plowed through the opposite red light, hitting the Smith’s car, causing major
damage to the car and injuries to Mr. and Mrs. Smith, who were in the front
seat. Mr. Smith, being a cautious driver, believes that he can sue Mr. Jones
under the theory of negligence.
Is Mr. Smith correct? Where could he sue Mr. Jones; would he
file a claim in federal or state court? Explain your answer using facts in the
scenario and the elements of jurisdiction to demonstrate your position in favor
of Mr. Smith as the plaintiff or Mr. Jones as the defendant as to where a claim
should be brought and the factors the court will consider in determining the
appropriate jurisdiction for a claim. (Points : 20)
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Question 4. 4. (TCO 4) Tom tells Bob that he will pay Bob
$5,000 to put a cherry bomb in his gas tank so that Tom can collect money from
the insurance policy on a new, cherry red sports car. If Bob carries out Tom’s
wishes and places a cherry bomb in the gas tank of Tom’s car, but Tom then
refuses to pay Bob, what recourse does Bob have to recover on the agreement he
claims to have with Tom? Can Bob recover? Why or why not? (Points : 20)
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Question 5. 5. (TCO 5) Joe makes an offer to sell an order
of produce to Bud for $550. It is a great deal and Bud jumps at the chance to
accept Joe’s offer. Before Bud can get the money together, Joe sells the
produce to Sal because he needs the money right away for a down payment on a
tractor. Is the contract between Joe and Bud enforceable under the UCC? If Joe
and Bud have an e-mail exchange that documents their agreement, does this
change your answer? Why or why not? (Points : 20)
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Question 6. 6. (TCO 6) Explain the function and purpose of
an administrative agency. At what level of government do we find agencies, and
how and by whom or what are they empowered to do what they do? (Points : 20)
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Question 7. 7. (TCO 7) Smart Corporation began marketing
phone in 2002 under the mark “Smart.” In 2008, Smart.com, Inc., a different
company selling different products, such as school supplies and the like,
begins using “smart” as part of its website URL and registers “sMART” as its
domain name. Can Smart Corporation stop this use of “sMART”? If so, what must
the company show? Use the scenario given to explain your answer in this
context. (Points : 20)
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Question 8. 8. (TCO 8) What are the four principal types of
Electronic Fund Transfer (EFT) systems today? Distinguish between the four
types of electronic funds transfer systems used by banks. When is an electronic
transaction binding under the Uniform Electronic Transactions Act? Using a
real-life example, distinguish the liability of the bank, the customer, and the
payee in an electronic transfer of funds situation. (Points : 20)
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Question 9. 9. (TCO 9) We often hear reference to the
doctrine of respondeat superior in a business context. Explain this doctrine.
What are the ramifications of actions taken in the context of this doctrine
once it is that someone is an agent? What are the key factors that can be used
to determine whether an agent’s actions are within the scope of their
employment? Explain these factors in the context of an original agency example
demonstrating their importance. (Points : 20)
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Question 1.1. (TCO 5) Under the Sales Article of the UCC,
which of the following events will release the buyer from all its obligations
under a sales contract? (Points : 10)
Destruction of
the goods after risk of loss passed to the buyer.
Impracticability of delivery under the terms of the contract.
Anticipatory
repudiation by the buyer that is retracted before the seller cancels the
contract.
Refusal of the
seller to give written assurance of performance when reasonably demanded by the
buyer.
Question 2.2. (TCO 5) Under the Sales Article of the UCC,
which of the following statements is correct regarding risk of loss and title
to the goods under a sale or return contract? (Points : 10)
Title and risk
of loss are shared equally between the buyer and the seller.
Title remains
with the seller until the buyer approves or accepts the goods, but risk of loss
passes to the buyer immediately following delivery of the goods to the buyer.
Title and risk
of loss remain with the seller until the buyer pays for the goods.
Title and risk
of loss rest with the buyer until the goods are returned to the seller.
Question 3.3. (TCO 5) An appliance seller promised a
restaurant owner that a home dishwasher would fulfill the dishwashing
requirements of a large restaurant. The dishwasher was purchased but it was not
powerful enough for the restaurant. Under the Sales Article of the UCC, what
warranty was violated? (Points : 10)
The implied
warranty of marketability.
The implied
warranty of merchantability.
The express
warranty that the goods conform to the seller’s promise.
The express
warranty against infringement.
Question 4.4. (TCO 8) Mars, Inc. manufactures and sells VCRs
on credit directly to wholesalers, retailers, and consumers. Mars can perfect
its security interest in the VCRs it sells without having to file a financing
statement or take possession of the VCRs if the sale is made to _____ (Points :
10)
retailers.
wholesalers
that sell to distributors for resale.
consumers.
wholesalers
that sell to buyers in the ordinary course of business.
Question 5.5. (TCO 8) Under the UCC Secured Transactions
Article, perfection of a security interest by a creditor provides added
protection against other parties in the event the debtor does not pay its
debts. Which of the following parties is not affected by perfection of a
security interest? (Points : 10)
Other
prospective creditors of the debtor.
The trustee in
a bankruptcy case.
A buyer in the
ordinary course of business.
A subsequent
personal injury judgment creditor.
