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Java Company hires Ken to manage one of its stores. Although their employment agreement says nothing about Ken being able to hire employees to work in the store, Ken has the authority. This is
ABC Sales Corporation wants to protect its customer lists as legally protected trade secrets. Accordingly, it should:
Take reasonable steps to maintain the secrecy and confidentiality of the information in the list.
Copyright them since customer lists are not sufficiently scientific and technological to deserve trade secret protection.
Demonstrate that the customer list has economic value since it gives ABC a business and competitive advantage.
A and C.
Poole Company enters into a contract to build a pool for homeowner for $20,000. During the construction process, Poole discovers the remnants of a big, old, partially buried, tree trunk on the property. Poole can remove it but it will add additional time and cost to the project. Accordingly, Poole asks homeowner for an extra $1000 to complete the job, which homeowner reluctantly agrees to. When the tree trunk is removed and the job is finished, Homeowner only pays the original $20,000. Poole Company sues for the promised additional $1000. The likely result of the lawsuit will be:
Poole will prevail since homeowner clearly breached the promise to pay $1000.
Poole will prevail since it is a fair result since everyone knows how difficult it is to remove old tree trunks.
Poole will prevail since $1000 was very reasonable consideration under the circumstances.
Poole will lose as it gave no new consideration for the promise to pay the additional $1000.
Chavez is a manager of X Corporation. Another company asks for a recommendation about a former employee of X, Burke, who is now applying for a job. The reference is sent to the new potential employer, where it is received and read by the HR director. It is very negative, and truthful in most respects, but inaccurate to some degree about Burke's attendance record. Burke does not get the job and sues Chavez for the tort of defamation. The likely result of such a lawsuit will be:
Burke will lose since the recommendation was not published to more people at the new potential employer.
Burke will prevail since he has been falsely maligned in part in the reference.
Burke will prevail since Chavez interfered with Burke's livelihood.
Burke will lose since Chavez typically would be protected by a conditional or qualified privilege assuming that that Chavez did not act with malice or bad faith.
Louie, Hughie, Dewey, and Daffy Duck formed a partnership. Since they had a lot in common and were good friends and had high hopes, they did not include in their partnership agreement a provision pertaining to the expulsion of a partner. Unfortunately, acrimony developed and now Louie, Hughie, and Dewey vote to expel Daffy from the partnership. The legal result can be:
There is no legal effect on the partnership since majority rules.
Daffy can dissolve the partnership and force a liquidation and termination.
The partnership is dissolved, and, with Daffy's agreement, he is paid his interest in the partnership, and the partnership continues with Louie, Hughie, and Dewey.
B and C.
Pat is a director of Quik Buy, Inc. Without informing Quik Buy, Pat goes into business with Fast Sales, Inc., to compete with Quik Buy. This violates
the business judgment rule.
the duty of care.
the duty of loyalty.
none of the above.
Beta, Inc., includes a shrink-¬wrap agreement with its products. A court would likely enforce this agreement if a buyer used the product
after having had an opportunity to read the agreement.
before having had an opportunity to read the agreement.
only after actually reading the agreement.
Juana works for Zorro Company. She is an employee at-will. Zorro neither believes in nor adheres to "Take Your Child to Work Day," as Zorro feels there will be too many disruptions with all those "kids running around." Zorro tells the employees of this policy. Nonetheless, Juana brings her daughter to work. There are no problems, and Juana does her regular job; but when Zorro discovers the child was at work, he fires Juana. Juana wants to sue for wrongful discharge. What will be the likely result of her lawsuit?
She will prevail since she clearly was treated unethically and there were no problems and Juana is a single mother.
She will prevail since she is protected by the federal Family Medical Leave Act.
She will lose since she was an employee at-will.
She will prevail since she was discriminated against because of her and her daughter's gender and because she was a parent.
ABC, Inc., orally contracts for a lease of its storage facilities to DEF Company. DEF pays part of the price, takes possession, and makes permanent improvements to the property. The contract is most likely enforceable against
ABC and DEF.
neither ABC nor DEF.
Yard Work, Inc., makes and sells garden tools. Under the strict liability doctrine, a tool could be unreasonably dangerous and defective
only if, in making the tool, Yard Work failed to use a less dangerous but economically feasible alternative.
only if the tool is dangerous beyond the ordinary consumer's expectation.
if, in making the tool, Yard Work failed to use a less dangerous but economically and practically feasible alternative.
Latisha is seriously injured when she is shopping at Public Store when a can of soda on a shelf explodes while she is going down the aisle. The manufacturer, distributor, and Public Store all express their sympathy but they all say they have no idea as to how and why the can of soda exploded. Latisha sues them for negligence. What legal doctrine would be most beneficial to her?
Res ipsa loquitur.
Assumption of the risk.
Tasty Treat Company advertises that its cereal, "Fiber Rich," reduces cholesterol. After an investigation and a hearing, the FTC finds no evidence to support the claim. To correct the public's impression of Fiber Rich, the most appropriate action would be
a cease-and desist order.
a civil fine.
a criminal fine.
counter advertising or corrective advertising.
Gamma Company owns a hazardous waste disposal site that it sells to Omega Properties, Inc. Later, the EPA discovers a leak at the site and cleans it up. The EPA can recover the cost from
Gamma or Omega.
neither Gamma nor Omega.
Omega Sales, Inc., promotes employees on the basis of color. Employees with darker skin color are passed over in favor of those with lighter skin color, regardless of their race. This is prohibited by
the Americans with Disabilities Act of 1990.
the Equal Pay Act of 1963.
Title VII of the Civil Rights Act of 1964.
Central Brokerage Associates sells securities. The definition of a security does not include, as an element,
a common enterprise
a reasonable expectation of profits
profits derived entirely from the efforts of the investors
Susan and her neighbors who live in an older, working-class neighborhood had their homes seized by the city pursuant to eminent domain since the city wants to turn the property over to a big private developer who plans to build a mall, thereby increasing the tax base of the city. Susan and her neighbors have been evicted; but they are promised "fair market value" for their homes. However, they want to stay in their homes. They sue the city for acting in an unconstitutional manner. The likely result of that lawsuit would be:
Susan and her neighbors will win since the city seized their properties merely for a mall and not something major like an airport extension.
Susan and her neighbors will win because the city did not use the properties itself but turned them over to a private developer.
Susan and her neighbors will win since under the old common law, "An Englishman's home is his castle," and thus government cannot constitutionally seize private property.
Susan and her neighbors will lose, assuming they receive fair market value for their properties, since the city acted in a constitutional manner.
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