Please write brief and complete answers to any two (2) scenarios. Please use the file entitled

Exam1Essays-Fall20.docx

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12 Test Bank to Accompany Business Law Today: The Essentials

BUS 340 – exam #1

Student Name _______________________________________________

ESSAY QUESTIONS – Answer all four (4) questions – use other side of page if necessary

1. Donald Waddell got a job at the Boyce Thompson Institute for Plant Research. Waddell did not have an employment contract for a fixed term, and the institute’s employee manual said that his job was “terminable at will.” Soon after he was hired, the institute implemented a whistleblower policy designed to encourage “the highest standards of financial reporting and lawful and ethical behavior.” Waddell repeatedly told his supervisor, Sophia Darling, that she needed to file certain financial documents more promptly. Darling fired Waddell, telling him that he was disrespectful and insubordinate. Define “at will” employment and wrongful termination. Based on the evidence given, was Waddell wrongfully terminated? Why, or why not.

2. Keith Loeb and his wife own stock in Waldbaum, Inc., a publicly traded company in the supermarket business. Robert Chestman is Loeb’s stockbroker. Chestman is aware that Loeb’s wife is the granddaughter of Julia Waldbaum, a member of the board of dierctors of Waldbaum and the wife of its founder. Julia is also the mother of Ira Waldbaum, the president and controlling shareholder of Waldbaum. During a four-year perios, Chestman executed several transactions involving Waldbaum’s stock for Keith Loeb. Subsequently, Ira Waldbaum agreed to sell Waldbaum to a buyer which would result in a stock purchase agreement selling the Waldbaum shares for $50 per share. Ire told three of his children about the pending sale and admonished them to keep the news quiet until a public announcement. He alos told his sister, Shirley Witkin, about the sale and cautioned her not to discuss it because it was to remain confidential. Ignoring that advice, Shirley told her daughter, Susan, that Ira was selling the company. Shirley warned her daughter not to tell anyone except her husband, Keith Loeb, because disclosure could ruin the sale. The next day Susan told Keith about the pending sale, but told him not to tell anyone.

The following day, Keith Loeb says he talked with Chestman and told him that Waldbaum was about to be sold at a substantially higher price than its market value. Loeb asked Chestman what he thought he should do, and Chestman responded that he could not tell Loeb what to do in a situation like this. After the phone call, Chestman bought 3,000 shares of Walbaum at $24.65 per share and purchased an additional 8,000 shares for his clients with 1,000 of those shares going to Keith Loeb.

Did Keith Loeb act ethically with regard to what he told Chestman Did Robert Chestman act ethically with regard to the information he receiver from Loeb? Pick one of the ethical standards offered in the text and show how that standard applies to this situation.

1. Tri-M Group, LLC, a Pennsylvania electrical contractor, was hired to work on a veterans’ home in Delaware that was partially state funded. Delaware’s regulations allowed contractors on state-funded projects to pay a lower wage rate to apprentices if the contractors had registered their apprenticeship programs in the state. Out-of-state contractors, however, were not eligible to pay the lower rate unless they maintained a permanent office in Delaware. Tri-M filed a suit in federal court claiming that Delaware’s regulations discriminated against out-of-state contractors in violation of the dormant commerce clause. Is this a valid claim of discrimination by the State of Delaware/ Why do you think so?

4. A Louisiana resident, Daniel Crummey, purchased a used recreational vehicle (RV) from sellers in Texas after viewing photos of it on eBay. The sellers’ statements on eBay claimed that “everything works great on this RV and will provide comfort and dependability for years to come. This RV will go to Alaska and back without problems!”

Crummey picked up the RV in Texas, but on the drive home, the RV quit working. He filed a suit in Louisiana against the sellers alleging that the vehicle was defective, but the sellers claimed that the Louisiana court lacked jurisdiction. Because the sellers regularly used eBay to market and sell vehicles to remote parties and had sold this RV to a Louisiana buyer, the court found that jurisdiction was proper. Which court has jurisdiction here…Louisiana State, Texas State, or Federal Court? Why? Can more than one court have jurisdiction? If so, which courts?