Case Problem:
A. Contracts
John, age 16, goes to the internet to purchase some computer software. John locates Ace Inc. Computer Software web site. Ace has the software John wants and John places the order by identifying himself and orders two types of software and agrees to pay the price listed on the website. Ace then sends John a letter accepting the offer. When the software arrives at John’s place, John refuses to accept and refuses delivery. After placing the order, John found the same software at a cheaper price. Applying “common law contract principles” was there proper formation of the contract? Was there proper proof of the contract? Are there problems with conditions and performance? Is there a breach? What are the available remedies?
B. Contracts
Erma, a merchant, receives a brochure from Ammco regarding some merchandise that is sold in Erma’s business. Erma then sends in a purchase order ordering 25 units of merchandise (which exceeds $500.00 in value). Ammco upon receipt of the order, sends a letter of confirmation containing additional information which states that the price did not include shipping and insurance costs and that the shipping costs and insurance would be added on to the total contract price. Furthermore, Ammo delegates the obligation of shipping the merchandise to Ecco. While the goods were in transit, the truck was hijacked and all the merchandise, including Erma’s order. Applying “common law contract principles” are there Party issues? Formation issues? Proof issues? Performance issues? Breach and Discharge issues? What are the available remedies?
C. Intra-Business Relationships
Rudolf has a chain store operation in Country x. Rudolf decides to expand his business operation into the United States. To cover the cost of expansion, Rudolf decides to "franchise" the operation into the United States. Carl, a resident of country X, enters a franchise agreement with Rudolf to open a franchise in the United States. The franchise agreement requires that Carl make a substantial investment of funds to open the franchise in the United States. Furthermore, the franchise agreement requires that Carl's franchise employ only US residents as employees and that the franchise funds be used to purchase land and construction of a building in the United States.
Rudolf realizes that Carl does not have the business acumen to run the franchise in the United States. Rudolf send Robert, a resident of country X, to manage and direct the franchise on a temporary basis until Carl is competent to run the franchise in the United States. To make sure the franchise complies with US accounting laws, Roberts contacts Flow (who has a small accounting firm) in the United States. However, requires that Flo works for the franchise exclusively and full time, that Flo maintain an office on the premises of the franchise and Robert constantly reviews the records and documents of Flow to make sure the records and financial statements are accurate. Since Flo spends a lot of time at the franchise, Robert is always asking Flo out for a date and is always making "sexual comments" about her. Discuss the various adjustments of status. What is the immigration status of Carl? What is the immigration status of Robert? What is the legal status of Flo? Can Flo maintain a "sexual harassment" claim against Robert.
D. Corporation
Arthur is the vice president of Finance at Inco Incorporated. Arthur is an officer of the corporation. Arthur is responsible for determining if the corporation will give out dividends. The dividends are to be given in the next quarter. Arthur reviews the financial status of the corporation and determines that no dividends could be given in the next quarter. Arthur and his staff decides to remove some funds from the "employee retirement account", they also remove funds from the "unemployment compensation account", worker's compensation account, and the quarterly tax payment account (manipulating the books) to show a profit for the current quarter. Based on Arthur's report, the Board of Directors declare a dividend. When the dividend is declared, the market value of stock increases and Inco receives paid in surplus and gives Arthur the opportunity to replenish the accounts where the funds were withdrawn. Also, Author exercises his stock option when the price of the shares in Inco increases. Who controls a corporation? What are the "fiduciary obligation of officers and directors"? Has Arthur violated any corporate laws? Are the Directors liable? Are the shareholders liable?
E. Intra-business
Shelly is a graduate student at X University. As a part of the graduate grant program, Shelly must teach sections on various courses, she must attend the main lecture of the professor, she has a schedule when to teach, she must report to a classroom at a specified time and she is under the direction of the professor. Shelly and other students want to unionize and receive additional benefits. The university classifies them as "graduate students" and not employees. What is the status of "Shelly"? What rights accrue to Shelly if she is classified as an employee? Be sure to discuss all work place relationships and distinguish each.
F. Unfair Competition
MC was a famous entertainer. MC estate is owned by his surviving spouse, Mary. Mary has formed MC, Incorporated, and the major asset of the MC Inc is the MC name. Mary did some research on the life and times of MC and published the article in the MC Inc. magazine. A local newspaper reprinted the article in total in their paper. Also, a local business is selling tee shirts under the MC name (with his pitcher on the tee shirt) and also the tee shirts depict MC as a major drug user and criminal. In addition, the business alleges that MC Inc. is nothing but a criminal enterprise.
G. Tort
Arthur has just graduated from CSUSB. Arthur has a number of employment opportunities. Arthur decides to discontinue his relationship with Wilma. Wilma become very upset. In retaliation, Wilma goes to Arthur's Facebook account and places information on the account that Arthur was caught cheating on an exam, was arrested for drunk driving and had misappropriated another students work and turned it in for a grade.. All of which is untrue. Also, Wilma placed some pitchers of Arthur that were extremely embarrassing and when the pitchers were taken, the pitchers were never intended to go public. Potential employers review Arthur's Facebook account and decide not to employ him. Discuss
H. Crimes
Congress passes the "Child On Line Protection Act", which essentially states that it is a crime to put "obscene material" on the internet with intent to place said obscene material on the internet. Obscene materials is not clearly defined. Oscar, places a "pornographic movie" on the internet which is easily accessible for a fee. Oscar is arrested for violating the "Child On Line Protection Act". In answering the question discuss the elements of a crime with special emphasis on "constitutional limitations".
I. Intellectual Property
Angela works in a PH.d program at X University. Angela has developed a program that makes it easier to teach advanced math to elementary school students. Angela consults a "patent attorney" to patent this business program Angela files the patent application. Angela's professor gains access to the program, makes some minor changes and files his own patent based on Angela's application. Angela sues for patent infringement. What steps must Angela take to make sure the information qualifies as a "trade secret"? Could Angela file for "copyright protection'? Is there a "patent infringement on the part of the professor.
J. Discuss the factors that must be taken into consideration when starting a business. What are the various forms of business ownership in the United States? What are the advantages or disadvantages of each.