Question 1. 1. (TCOs B, C, G, I) Lonestar Trucking, a large
freight servicing the Southwest, learns from reading in the industry trade
magazine that the Federal Motor Carrier Safety Administration (FMCSA) has
proposed a regulation change. The regulation, proposed pursuant to a statute
that restricts drivers from operating/driving a truck for more than twelve (12)
hours a day, will now require drug testing of any driver involved in an
accident. The regulation was proposed due to political pressure from Mothers
Against Impaired Driving (MAID), a group dedicated to eliminating deaths due to
people driving while impaired. Lonestar Trucking is concerned, not just about
the costs of implementing such a regulation, but how it will comply with its
requirements since accidents often occur far from their base of operations.
Lonestar Truckings employees and their union are also very upset with the
proposal. They are concerned that the field drug tests used by police officers
are notorious for giving false positive results, and that the proposed
regulation will require that a test be given even when the other diver is
clearly at fault.
What should Lonestar Trucking do regarding the proposed
change? How would they challenge if the
law was passed? (Points : 10)

Question 2. 2. (TCO C) Three professors from Kellers
Massachusetts campus, Damaggio, Nixon, and Kennedy, decide to visit KLM Go-kart
facility together in Maine. This decision is made after a lengthy faculty
brunch, at which unlimited alcoholic mimosas were served. KLM Go-kart
advertises at the colleges various campuses and, in fact, the professors use
their faculty discount at the facility. At the facility signs are posted everywhere
in bold: BY PARTICIPATING IN Go-KART RACING, YOU VOLUNTARILY ASSUME THE RISK
OF ANY DEATH OR INJURY THAT MAY RESULT. Additionally, the professors
hurriedly sign a contract, which states: YOU ARE GIVING UP ALL LEGAL RIGHTS;
KLM WILL NOT BE HELD LIABLE FOR ANY NEGLIGENCE RESULTING IN YOUR INJURY OR
DEATH; and THE PARTIES AGREE THAT ANY POSSIBLE LEGAL ACTION WILL BE HEARD IN
THE STATE OF MAINE.
Professor Damaggio, who lives in New Hampshire, is sick and
sweating profusely after consuming a great deal of alcohol. He decides not to
race. He suspects that he is having a minor reaction as he is diabetic and
drank more than he intended. In the Waiting Area, which is located next to the
track, he takes off his helmet. There is a sign posted that says KEEP YOUR
RACE HELMET ON WHILE IN THE WAITING AREA!”
Kennedy and Nixon, who dislike each other for unknown
reasons, are the only ones on the track. They use go-carts manufactured by
PrimoKarts. As they begin the race they drive very aggressively. Unbeknownst to
either party, Tommy, KLMs mechanic, fed up with low pay, did not do the usual
morning inspection of the brakes and tires on either vehicle that morning. KLM
had been contemplating firing Tommy due to his erratic work habits. KLM
instructed Tommy to inspect the PrimoKarts daily as they never trusted their
brake mechanism. PrimoKartss are regularly marketed to amusement parks. Their
instruction manual states that they are not to be used for racing.
After two laps, Kennedys brakes fail as he tries to aggressively
pass Nixon. He crashes into Nixons kart near the waiting area. The brakes on
both vehicles fail to hold. A tire dislodges at a high-rate of speed, and hits
Professor Damaggio in the head, rendering him unconscious and bleeding from
head injuries. His helmet is lying on the ground nearby. An ambulance is
called. The medical technicians, seeing the head injuries, fail to notice the
medical alert bracelet on Professor Damaggios wrist. At the hospital, Damaggio
dies from insulin shock and other complications due to his diabetes while the
emergency room doctor was doing a procedure to prevent blood clots and a
possible stroke from the head injury. At autopsy, it was later learned that
Professor Damaggio had been rendered brain dead by accident at the KLM Go-kart
facility.
(a) What claims may Professor Damaggios widow bring against
the various parties?
(b) What defenses might each party bring against the
possible claims asserted by Professor Damaggios widow?
(c) In what state should the case be brought? (Points : 15)

Question 3. 3. (TCOs A, D, E) Daphne Vega Rueben, a
then-unknown salsa singer, signed a three album recording contract with Rainbow
Music, Inc. Rainbow Music was a boutique label specializing in Latin artists.
Vega Ruebens first album for Rainbow was moderately successful. The second
album, unfortunately, was panned by the critics and did not sell. Rainbow Music
was acquired by BigMusicMedia, Inc. BigMusicMedia, in an effort to re-vitalize
Vega Ruebens career, encouraged her to leave the salsa style she was committed
to and do more commercially viable pop material. Vega Rueben rejected this
request. Furious with BigMusicMedia, Vega Rueben wanted to end the contract. On
her own, with what remaining personal funds she had left, she immediately went
to an independent recording studio and did sessions toward a third album
without approval or consent by BigMusicMedia. Using her concert band, she
recorded tracks for over 30 songs. Due to the financial failure of Vega
Ruebens second album and her recent unsuccessful concert tour, BigMusicMedia
did not do the final production work on Vega Ruebens third album.
Vega Rueben, then entered into a contract with BonitaCancion
Communications, Inc. She began recording a new salsa album with BonitaCancion
in conjunction with a concert tour that they financed and produced. At her
concerts, Vega Rueben would regularly introduce the new material that would be
on her new album.
Shortly after the concert tour began, BigMusicMedia brings
suit against Daphne Vega Rueben and BonitaCancion Communications, Inc.
(a) What causes of action might BigMusicMedia bring against
Vega Rueben and BonitaCancion?
(b) What causes of action might Vega Rueben and
BonitaCancion bring against BigMusicMedia?
(c) What types of relief might either party seek? (Points :
10)

Question 4. 4. Why was microsoft considered a monopoly?
State which section of law monopolies are in violation of. Give an example of a
company that would be considered a monopoly today.
(Points : 5)

Question 5. 5. There is an amusement park that restricts
entry to people of a certain race. The park sells food and is located
approximately 1 mile off of the highway. Conclude whether or not this is valid
under the U.S. constitution and demonstrate why or why not.
(Points : 4)

Question 6. 6. Papaya Inc., is a New York corporation that
manufactures jeans, tops, and sweaters under a line called Glory. Joyce used to
be one of their salespeople. During a trade show, Joyce signed orders with
several stores, but Papaya did not ship because Joyce was not their agent.
Joyce did still have display samples and order forms. Discuss the issues fully
and conclude whether Papaya is required to fill the orders?
(Points : 6)

Question 7. 7. Provide three examples of how an agency can
be terminated and then provide an example for each way you have presented.
(Points : 7)

Question 8. 8. A debt collector contacts a consumer via
telephone at 8 a.m. on a Saturday. The
consumer does not pick up so the collector meets them at church on Sunday. Having had a previous conversation with the
consumer, the collector knows where the consumer will go. At the service the collector discusses the
debt with consumer and then calls the consumer at 9:15 p.m. to confirm their
agreements. Discuss any violations by
the debt collector.
(Points : 5)

Question 9. 9. Mrs. Bonet purchased a glass baking dish
manufactured by Walmart. She purchased the dish at a retail drug store in New
Jersey. Walmart manufactures its glassware in Ohio and distributes nationally.
When Mrs. Phillips removed the baking dish from her oven (while making a
casserole), the dish exploded and Mrs. Bonet was injured. Mrs. Bonets attorney
wants to bring a product liability lawsuit in New Jersey. Walmart does not
believe it can be forced to defend a lawsuit in New Jersey because it has no
offices there. Can the New Jersey courts take jurisdiction? Demonstrate the
liability of Walmart. Discuss an ethical business strategy to minimize
liability for claims of product liability and breach of warranty.
(Points : 8)

Question 10. 10. Provide three examples of how an agency can
be terminated and then provide an example for each way you have presented.
(Points : 7)

Question 11. 11. Beyonce has a New York corporation that
manufactures jeans, tops, and sweaters. Samantha is her agent. During a trade
show, Beyonce told Samantha not to let vendors know that Samantha had a
principal. Discuss Samantha’s liability
to the vendors if Beyonce did not honor the contracts. What would Samantha’s liability be if she
told the vendors that she was working for Beyonce when she signed orders with
several stores?
(Points : 5)

Question 12. 12.
What is ethics? Apply it to a situation currently going on (
at work, in the news, at home, school, etc.) and determine which ethical model
would help the most. Provide the
elements of the model you chose in your answer.

(Points : 5)

Question 13. 13. Demonstrate the reason why we have anti-trust
laws dealing with monopolies. Give an
example of a company that is/was a monopoly. Finally, state which section of
law monopolies are in violation of.
(Points : 4)

Question 14. 14. Describe 3 types of contracts that must be
in writing. Explain why it is this way
with each description. (Points : 3)

Question 15. 15. Simone sold a ski shop franchise to
Tanya. Although Simone did not
contribute equity to the business or share in the profits, she did give Tanya
advice and share his experience to help him get started. Most of Tanyas capital came in the form of a
loan from Union Bank. When Tanya failed
to pay, Union Bank sued Simone for payment under the theory that Simone was a
partner by implication or estoppels.
Determine whether or not Simone was a partner.
(Points : 6)

Question 1. 1. (TCOs B, C, G, I) Lonestar Trucking, a large
freight servicing the Southwest, learns from reading in the industry trade
magazine that the Federal Motor Carrier Safety Administration (FMCSA) has
proposed a regulation change. The regulation, proposed pursuant to a statute
that restricts drivers from operating/driving a truck for more than twelve (12)
hours a day, will now require drug testing of any driver involved in an
accident. The regulation was proposed due to political pressure from Mothers
Against Impaired Driving (MAID), a group dedicated to eliminating deaths due to
people driving while impaired. Lonestar Trucking is concerned, not just about
the costs of implementing such a regulation, but how it will comply with its
requirements since accidents often occur far from their base of operations.
Lonestar Truckings employees and their union are also very upset with the
proposal. They are concerned that the field drug tests used by police officers
are notorious for giving false positive results, and that the proposed
regulation will require that a test be given even when the other diver is
clearly at fault.What should Lonestar Trucking do regarding the proposed
change? How would they challenge if the
law was passed? (Points : 10) Question 2. 2. (TCO C) Three professors from Kellers
Massachusetts campus, Damaggio, Nixon, and Kennedy, decide to visit KLM Go-kart
facility together in Maine. This decision is made after a lengthy faculty
brunch, at which unlimited alcoholic mimosas were served. KLM Go-kart
advertises at the colleges various campuses and, in fact, the professors use
their faculty discount at the facility. At the facility signs are posted everywhere
in bold: BY PARTICIPATING IN Go-KART RACING, YOU VOLUNTARILY ASSUME THE RISK
OF ANY DEATH OR INJURY THAT MAY RESULT. Additionally, the professors
hurriedly sign a contract, which states: YOU ARE GIVING UP ALL LEGAL RIGHTS;
KLM WILL NOT BE HELD LIABLE FOR ANY NEGLIGENCE RESULTING IN YOUR INJURY OR
DEATH; and THE PARTIES AGREE THAT ANY POSSIBLE LEGAL ACTION WILL BE HEARD IN
THE STATE OF MAINE.Professor Damaggio, who lives in New Hampshire, is sick and
sweating profusely after consuming a great deal of alcohol. He decides not to
race. He suspects that he is having a minor reaction as he is diabetic and
drank more than he intended. In the Waiting Area, which is located next to the
track, he takes off his helmet. There is a sign posted that says KEEP YOUR
RACE HELMET ON WHILE IN THE WAITING AREA!”Kennedy and Nixon, who dislike each other for unknown
reasons, are the only ones on the track. They use go-carts manufactured by
PrimoKarts. As they begin the race they drive very aggressively. Unbeknownst to
either party, Tommy, KLMs mechanic, fed up with low pay, did not do the usual
morning inspection of the brakes and tires on either vehicle that morning. KLM
had been contemplating firing Tommy due to his erratic work habits. KLM
instructed Tommy to inspect the PrimoKarts daily as they never trusted their
brake mechanism. PrimoKartss are regularly marketed to amusement parks. Their
instruction manual states that they are not to be used for racing.After two laps, Kennedys brakes fail as he tries to aggressively
pass Nixon. He crashes into Nixons kart near the waiting area. The brakes on
both vehicles fail to hold. A tire dislodges at a high-rate of speed, and hits
Professor Damaggio in the head, rendering him unconscious and bleeding from
head injuries. His helmet is lying on the ground nearby. An ambulance is
called. The medical technicians, seeing the head injuries, fail to notice the
medical alert bracelet on Professor Damaggios wrist. At the hospital, Damaggio
dies from insulin shock and other complications due to his diabetes while the
emergency room doctor was doing a procedure to prevent blood clots and a
possible stroke from the head injury. At autopsy, it was later learned that
Professor Damaggio had been rendered brain dead by accident at the KLM Go-kart
facility.(a) What claims may Professor Damaggios widow bring against
the various parties?(b) What defenses might each party bring against the
possible claims asserted by Professor Damaggios widow?(c) In what state should the case be brought? (Points : 15) Question 3. 3. (TCOs A, D, E) Daphne Vega Rueben, a
then-unknown salsa singer, signed a three album recording contract with Rainbow
Music, Inc. Rainbow Music was a boutique label specializing in Latin artists.
Vega Ruebens first album for Rainbow was moderately successful. The second
album, unfortunately, was panned by the critics and did not sell. Rainbow Music
was acquired by BigMusicMedia, Inc. BigMusicMedia, in an effort to re-vitalize
Vega Ruebens career, encouraged her to leave the salsa style she was committed
to and do more commercially viable pop material. Vega Rueben rejected this
request. Furious with BigMusicMedia, Vega Rueben wanted to end the contract. On
her own, with what remaining personal funds she had left, she immediately went
to an independent recording studio and did sessions toward a third album
without approval or consent by BigMusicMedia. Using her concert band, she
recorded tracks for over 30 songs. Due to the financial failure of Vega
Ruebens second album and her recent unsuccessful concert tour, BigMusicMedia
did not do the final production work on Vega Ruebens third album.Vega Rueben, then entered into a contract with BonitaCancion
Communications, Inc. She began recording a new salsa album with BonitaCancion
in conjunction with a concert tour that they financed and produced. At her
concerts, Vega Rueben would regularly introduce the new material that would be
on her new album.Shortly after the concert tour began, BigMusicMedia brings
suit against Daphne Vega Rueben and BonitaCancion Communications, Inc.(a) What causes of action might BigMusicMedia bring against
Vega Rueben and BonitaCancion?(b) What causes of action might Vega Rueben and
BonitaCancion bring against BigMusicMedia?(c) What types of relief might either party seek? (Points :
10) Question 4. 4. Why was microsoft considered a monopoly?
State which section of law monopolies are in violation of. Give an example of a
company that would be considered a monopoly today.(Points : 5) Question 5. 5. There is an amusement park that restricts
entry to people of a certain race. The park sells food and is located
approximately 1 mile off of the highway. Conclude whether or not this is valid
under the U.S. constitution and demonstrate why or why not.(Points : 4) Question 6. 6. Papaya Inc., is a New York corporation that
manufactures jeans, tops, and sweaters under a line called Glory. Joyce used to
be one of their salespeople. During a trade show, Joyce signed orders with
several stores, but Papaya did not ship because Joyce was not their agent.
Joyce did still have display samples and order forms. Discuss the issues fully
and conclude whether Papaya is required to fill the orders?(Points : 6) Question 7. 7. Provide three examples of how an agency can
be terminated and then provide an example for each way you have presented.(Points : 7) Question 8. 8. A debt collector contacts a consumer via
telephone at 8 a.m. on a Saturday. The
consumer does not pick up so the collector meets them at church on Sunday. Having had a previous conversation with the
consumer, the collector knows where the consumer will go. At the service the collector discusses the
debt with consumer and then calls the consumer at 9:15 p.m. to confirm their
agreements. Discuss any violations by
the debt collector.(Points : 5) Question 9. 9. Mrs. Bonet purchased a glass baking dish
manufactured by Walmart. She purchased the dish at a retail drug store in New
Jersey. Walmart manufactures its glassware in Ohio and distributes nationally.
When Mrs. Phillips removed the baking dish from her oven (while making a
casserole), the dish exploded and Mrs. Bonet was injured. Mrs. Bonets attorney
wants to bring a product liability lawsuit in New Jersey. Walmart does not
believe it can be forced to defend a lawsuit in New Jersey because it has no
offices there. Can the New Jersey courts take jurisdiction? Demonstrate the
liability of Walmart. Discuss an ethical business strategy to minimize
liability for claims of product liability and breach of warranty.(Points : 8) Question 10. 10. Provide three examples of how an agency can
be terminated and then provide an example for each way you have presented.(Points : 7) Question 11. 11. Beyonce has a New York corporation that
manufactures jeans, tops, and sweaters. Samantha is her agent. During a trade
show, Beyonce told Samantha not to let vendors know that Samantha had a
principal. Discuss Samantha’s liability
to the vendors if Beyonce did not honor the contracts. What would Samantha’s liability be if she
told the vendors that she was working for Beyonce when she signed orders with
several stores?(Points : 5) Question 12. 12.What is ethics? Apply it to a situation currently going on (
at work, in the news, at home, school, etc.) and determine which ethical model
would help the most. Provide the
elements of the model you chose in your answer.(Points : 5) Question 13. 13. Demonstrate the reason why we have anti-trust
laws dealing with monopolies. Give an
example of a company that is/was a monopoly. Finally, state which section of
law monopolies are in violation of.(Points : 4) Question 14. 14. Describe 3 types of contracts that must be
in writing. Explain why it is this way
with each description. (Points : 3) Question 15. 15. Simone sold a ski shop franchise to
Tanya. Although Simone did not
contribute equity to the business or share in the profits, she did give Tanya
advice and share his experience to help him get started. Most of Tanyas capital came in the form of a
loan from Union Bank. When Tanya failed
to pay, Union Bank sued Simone for payment under the theory that Simone was a
partner by implication or estoppels.
Determine whether or not Simone was a partner.(Points : 6)