Business LAW Assignment

Make sure your answers are complete. Name legal theories, defines them and name and define any required elements. Apply facts to your analysis of elements to answer questions.

1. Roy who just turned eighteen is out with several friends. They decide to see a movie, but it is sold out. Roy decides to hide in the back of the theatre and yelled “Fire” as loudly so people would leave and there would be room for Roy and his friends. Roy yells “Fire” as loudly as possible. Everyone ran out of the theatre, and a number got in their vehicles and left. Roy and his friends thought that seeing the movie was now possible. Unfortunately, a theatre employee saw Roy yelling, called the police, and he was arrested. Roy told the police officers that he was only exercising his free speech rights. He also told the police that the theatre employee lied and that he personally saw him stealing money from the register. The theatre employee told Roy that he was going to sue for defamation, and he told him that he would win based on his right to free speech.

Discuss whether or not Roy is right on both counts and why.

2. When is a strict-scrutiny standard used to examine laws, how is this standard applied, and what presumption do courts apply, if any, in cases involving this standard?

3. Sally is the president of AAA Components, a company that makes small parts for the automotive industry. Customers of AAA components are primarily auto manufacturers. Sally’s cousin, Frank, works at the company as a sales representative. A promotion to the sales manager position is open. Frank has applied and so has Susan, another sales representative. While both Frank and Susan are good employees, they are skilled in different areas. Susan is excellent with technology and with placing orders. She does an excellent job in following through with order problems. Frank, on the other hand, is better with customer relations, and customers seem to like him better. Sally would like to promote Frank but she has two concerns. Her first concern is that she does not want it to be perceived that she is being unfair because Frank is family. Her second concern is that she has a suspicion that some customers are somewhat prejudiced against Susan because she is female. Most customers with whom the sales representatives deal are male, and Sally suspects that they may give Frank more consideration than Sally.

Define and discuss the WPH framework for business ethics, and within that framework propose a solution. Be sure to fully address the populations, purposes, and guidelines included within “W,” “P,” and “H.”

4. Penny, who is the president of XYZ Corporation, tells Andy that buying stock in XYZ Corporation right now is a good idea. Andy is only casually acquainted with Penny and did not know that she was an officer of the corporation. He, however, acting on her information investigated the company somewhat and proceeded to buy some stock. Both Penny and Andy were charged with insider trading. Both Penny and Andy say that they did not know that insider trading was against the law. Also, Andy says that he did not even know that Penny was an officer of XYZ Corporation and that he thought the information at issue was public information. Provide the legal definitions for the defenses asserted and discuss whether they are adequate.


Questions 5 fact scenario for questions 5a-5c.

“Divorce fallout.” Dr. Fred, following a messy divorce, has encountered significant financial difficulties. Dr. Fred has a friend named Slick Slim who tells Dr. Fred that he has been making lots of money by selling people a wristband that allegedly places pressure on a nerve that signals hunger resulting in a lack of appetite. Slick Slim tells Dr. Fred that, although the device does not really work, people who want to lose weight and look good in their bathing suits will do anything. Slick says the wristband sells like hotcakes. Slick also tells Dr. Fred that he will pay Dr. Fred five dollars for every band that Dr. Fred can sell to his patients. Dr. Fred proceeds to mail letters to patients suggesting the use of the band for weight loss. He also uses UPS to mail samples of the band to some patients along with letters encouraging purchase of the bands. Dr. Fred then proceeds to bill Medicare for office consultations he has with patients when they come in to purchase the bands. The scheme is wildly successful. Dr. Fred is able to entirely satisfy his alimony obligations within just a few months. Unfortunately, as patients begin to see that they are not having any weight loss, he has been receiving numerous complaints, and a friend of his told him that he could even be facing some criminal prosecution.

5a. By mailing correspondence to patients encouraging purchase of the band, what offenses, if any, did Dr. Fred commit?  Name the criminal offense, define it and indicate if it would be a misdemeanor or felony offense and why you think so

5b. Which of the following offenses, if any, did Dr. Fred commit when he used UPS to send correspondence and samples of the bands to patients?

a. Defalcation
b. Mail fraud
c. False pretenses
d. Fraudulent use of transit

e. He is not guilty of any offense

5c. By which of the following acts, if any, did Dr. Fred commit health care fraud?

a. Dr. Fred did not commit any acts of healthcare fraud

b.  By the submission of false claims to Medicare only

c. By the submission of false claims to Medicare and also by the receipt of kick-backs from Slick Slim

d. By the receipt of kick-backs from Slick Slim only

e. By submitting false claims to Medicare, by receiving kick-backs from Slick Slim, and also by merely listening to what Slick Slim had to say


6. Assume a jurisdiction has a law that all residential swimming pools must have a fence that is at least six feet tall surrounding the swimming pool. Larry has a pool in her backyard; but it was built only a few months ago, and Larry has not had the extra money with which to build the fence. Unfortunately, one of the neighborhood children goes swimming in the pool and drowns. The parents of the child sue Larry.

What type of negligence lawsuit would the parents file against Larry? Discuss the parents would likely go about proving their case and the elements that would be required. Your answer should discuss more than one lawsuit option (more than one type of negligence theory and define the theory)

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