Business law help needed

*Answers are highlighted in bold In a brief filed in Lea’s suit against Mica in a court, Neil, Lea’s attorney, cites, Ole! Cafe v. Pan Foods Corp., an unpublished opinion. With respect to the persuasiveness of unpublished opinions, most states
a. allow their courts to consider such opinions.
b. do not allow their courts to consider such opinions.
c. impose certain hierarchical rankings.
d. require their courts to consider such opinions.

2.

Capital Credit Company files a suit against Downtown Developers, Inc., and seeks, as part of discovery, certain electronic documents in Downtown’s possession. Responding to this request will most likely be required if the documents contain data that is relevant and
a. accessible.
b. privileged.
c. recoverable.
d. text only.
3.

Macro Retail Corporation operates stores in forty-two countries. It is important for the ” culture”; at Macro, and other domestic, foreign, and international business firms, to distinguish among actions that are
a. ethical and legal.
b. unethical and illegal.
c. unethical but legal.
d. all of the choices.

4.

Ethical behavior on the part of Beta Products Company may be inhibited by
a. clear ethical standards.
b. collective decision making.
c. legislative determinations of what represents society’s best interest.
d. managers’ dissent to unethical decisions.
5.
Mike casts unwarranted doubts on Nina, a co-worker, to gain a job promotion. This is unethical
a. only if Mike is caught.
b. only if Mike gets the promotion.
c. under any circumstances.
d. under no circumstances.
6.
In a brief filed in Gene’s suit against Hoyt in a federal court, Ilsa, Gene’s attorney, cites, Jon v. Klint, an unpublished opinion. According to a ruling of the United States Supreme Court, the judge in Gene’s suit
a. may consider the unpublished opinion persuasive.
b. must apply the unpublished opinion as binding.
c. must ignore the unpublished opinion.
d. must issue a judgment in Hoyt’s favor.

7.
Nevada enacts a law to regulate Internet prescription transactions. New York enacts a ban on the Internet sale of tobacco products to New York residents. Texas prohibits automakers from selling vehicles on their Web sites. State regulation of Internet activities
a. always violates the dormant commerce clause.
b. is not subject to evaluation under the dormant commerce clause.
c. may violate the dormant commerce clause.
d. never violates the dormant commerce clause.
8.
International Business Corporation engages in bribery of potential clients, including government agencies, private companies, and the representatives of labor organizations. Bribery is
a. ethical but illegal.
b. legal but unethical.
c. neither unethical nor illegal.
d. wrong.
9.

Quality Sales Company develops its marketing strategies in terms of what its management perceives as its ethical obligations, which represent its
a. legal liability.
b. profitability.
c. standards of right and wrong.
d. unilateral corporate duties.
10.
Commercial Wholesale, Inc., conducts its operations unethically, which, when revealed, will likely affect its
a. good will only.
b. profits only.
c. reputation only.
d. good will, profits, and reputation.
11.
The Federal Trade Commission is a government agency that issues rules, orders, and decisions. The Georgia state legislature enacts statutes. The Jackson County Board and the Peach City Council enacts ordinances. Administrative law includes
a. all law that affects a business’s operation.
b. the rules, orders, and decisions of the Federal Trade Commission.
c. statutes enacted by the Georgia state legislature.
d. ordinances created by the Jackson County Board and the city council of Peach City, Georgia.
12.

As a judge, Jay applies common law rules. These rules develop from
a. decisions of the courts in legal disputes.
b. regulations issued by administrative agencies.
c. statutes enacted by Congress and the state legislatures.
d. uniform laws drafted by legal scholars.
13.

In an action against Elin, Frank obtains a remedy. This is
a. an administrative agency’s enforcement of its rule.
b. a principle of the law derived from earlier court cases.
c. a statute enacted by a state legislature or Congress.
d. the legal means to recover a right or to redress a wrong.

14.
Net Corporation files a suit against Omega, Inc., alleging that Omega breached a contract to sell Net a computer system for $100, 000. Net is
a. the appellant.
b. the appellee.
c. the defendant.
d. the plaintiff.
15.
(Points: 1)
Fact Pattern 1-1A
The Montana Supreme Court decides the case of National Co. v. Overseas Corp. Of nine justices, six believe the judgment should be in National’s favor. Justice Peel, one of the six, writes a separate opinion. The four justices who believe the judgment should be in Overseas’s favor join in a third separate opinion.
Refer to Fact Pattern 1-1A. Peel’s opinion is known as
a. a concurring opinion.
b. a dissenting opinion.
c. a majority opinion.
d. a propounding opinion.
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16.
(Points: 1)
The basis for the U. S. legal system is natural law.
TrueFalse
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17.
(Points: 1)
Constitutional law includes only the U. S. Constitution.
TrueFalse
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18.
(Points: 1)
A state law that conflicts with the U. S. Constitution will be deemed unconstitutional.
TrueFalse
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19.
(Points: 1)
Common law is a term for law that is common throughout the world.
TrueFalse
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20.
(Points: 1)
Damages is a remedy at law.
TrueFalse
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21.
(Points: 1)
In most states, the courts no longer grant ” equitable” remedies.
TrueFalse
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22.
(Points: 1)
A defendant is a person against whom a lawsuit is brought.
TrueFalse
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23.
(Points: 1)
Courts do not depart from precedents.
TrueFalse
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24.
(Points: 1)
How the courts interpret a statute determines how that statute is applied.
TrueFalse
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25.
(Points: 1)
Criminal law focuses on duties that exist between persons.
TrueFalse
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26.
(Points: 1)
The Federal Trade Commission developed the Uniform Commercial Code.
TrueFalse
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27.
(Points: 1)
Common law is a term for the laws that are familiar to most of us.
TrueFalse
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28.
(Points: 1)
A decision on a given issue by a court is not binding on an inferior court.
TrueFalse
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29.
(Points: 1)
Common law is no longer a source of legal authority.
TrueFalse
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30.
(Points: 1)
Rules and regulations adopted by federal administrative agencies are compiled in the Code of Federal Regulations.
TrueFalse
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31.
(Points: 1)
The Ohio state legislature passes a law to regulate local delivery services. The final authority regarding the constitutionality of this law is
a. the judicial system.
b. the president of the United States.
c. the governor of Ohio.
d. the U. S. Congress.
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32.
(Points: 1)
Hua, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the ownership of the warehouse with Jac, a resident of Kentucky. Jac files a suit against Hua in Indiana. Regarding this suit, Indiana has
a. diversity jurisdiction.
b. in personam jurisdiction.
c. in rem jurisdiction.
d. no jurisdiction.
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33.
(Points: 1)
Alpha Company files a suit against Beta, Inc., in a Colorado court with general jurisdiction. In a Delaware court with limited jurisdiction, E-Sales Corporation files a suit against First State Bank. The difference between general and limited jurisdiction is
a. the subject matter of the cases that the courts can decide.
b. whether a case is being heard for the first time.
c. whether a suit is filed against a single individual or many people.
d. whether a suit is filed by a citizen or by a business.
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34.
(Points: 1)
Stan, a citizen of Texas, wants to file a suit against Uma, a citizen of Virginia. Their diversity of citizenship may be a basis for
a. any court to exercise in rem jurisdiction.
b. a federal district court to exercise original jurisdiction.
c. a U. S. court of appeals to exercise appellate jurisdiction.
d. the United States Supreme Court to issue a writ of certiorari.
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35.
(Points: 1)
LCD TV Company, a firm in Minnesota, advertises on the Web. A court in North Dakota would be most likely to exercise jurisdiction over LCD if the firm
a. conducted substantial business with North Dakota residents through its Web site.
b. interacted with any North Dakota resident through its Web site.
c. only advertised without interactivity at its Web site.
d. suddenly removed its ad from the Internet.
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36.
(Points: 1)
Edie files a suit against Frank. If this suit is like most cases, it will be
a. dismissed during a trial.
b. dismissed or settled before a trial.
c. resolved only after a trial.
d. settled at a trial.
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37.
(Points: 1)
Fact Pattern 2-1A
Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract.
Refer to Fact Pattern 2-1A. The least expensive method to resolve the dispute between Java and Kaffe may be
a. arbitration because the case will be heard by a mini-jury.
b. litigation because each party will pay its own legal fees.
c. mediation because the dispute will be resolved by a non-expert.
d. negotiation because no third parties are needed.
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38.
(Points: 1)
Fact Pattern 2-1A
Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract.
Refer to Fact Pattern 2-1A. If Java and Kaffe have a long-standing business relationship that they would like to continue, a preferred method of settling their dispute may be mediation because
a. the case will be heard by a mini-jury.
b. the dispute will eventually go to trial.
c. the process is not adversarial.
d. the resolution of the dispute will be decided an expert.
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39.
(Points: 1)
Vince files a suit against Will. Vince and Will meet, and each party’s attorney argues the party’s case before a judge and jury. The jury presents an advisory verdict, after which the judge meets with the parties to encourage them to settle their dispute. This is
a. court-ordered arbitration.
b. early neutral case evaluation.
c. a mini-trial.
d. a summary jury trial.
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40.
(Points: 1)
Dick submits his claim against EZ Sales Corporation to FairSettle. com, a private, online dispute resolution forum. At any time, an appeal of the dispute to a court may be made by
a. Dick only.
b. Dick or EZ.
c. EZ only.
d. neither Dick nor EZ.
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41.
(Points: 1)
Federal courts are superior to state courts.
TrueFalse
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42.
(Points: 1)
Minimum contacts with a jurisdiction are never enough to support jurisdiction over a nonresident defendant.
TrueFalse
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43.
(Points: 1)
The decisions of state trial courts of limited jurisdiction may sometimes be appealed to state trial courts of general jurisdiction.
TrueFalse
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44.
(Points: 1)
Venue is the term for the subject matter of a case.
TrueFalse
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45.
(Points: 1)
A justiciable controversy is a case in which the court’s decision–the ” justice” that will be served–will be controversial.
TrueFalse
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46.
(Points: 1)
The federal equivalent of a state trial court is a U. S. court of appeals.
TrueFalse
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47.
(Points: 1)
Negotiation is the most complex form of alternative dispute resolution.
TrueFalse
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48.
(Points: 1)
In early neutral case evaluation, a third party’s evaluation of each party’s strengths and weaknesses forms the basis for negotiating a settlement.
TrueFalse
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49.
(Points: 1)
Most online dispute resolution services apply general, universal legal principles to resolve disputes.
TrueFalse
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50.
(Points: 1)
A choice-of-law clause is a provision in a contract that excuses a party from liability for nonperformance due to ” acts of God.”
TrueFalse
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51.
(Points: 10)
Quik Results, Inc., a Maine corporation, makes and sells Power Up!, a weight-gain and muscle-building supplement. Orin, a citizen of New York, sees an ad for Power Up! in WorkOut magazine and buys it in New York City at a local health club. Within ten days of beginning to use Power Up!, Orin suffers internal injuries. Alleging that the injuries are caused by Power Up!, Orin files a suit against Quik in a New York state court. Quik asks the court to dismiss the suit on the ground that it does not have personal jurisdiction over Quik. What is the court most likely to rule and why
Paragraph Quik is still liable for their products since they are sold in New York. The court will rule for the plaintiff. (See more about Question 51 after quiz.)
Insert equation
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52.
(Points: 1)
To initiate a lawsuit, Allen files a complaint against Beth, who responds with an answer. Taken together, the complaint and answer are
a. depositions and interrogatories.
b. discovery.
c. hearsay.
d. the pleadings.
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53.
(Points: 1)
Emil wants to initiate a suit against Fast Credit Company by filing a complaint. The complaint should include
a. an explanation of the proof to be offered at trial.
b. a motion for judgment n. o. v.
c. a motion for judgment on the pleadings.
d. a statement of the grounds for the court to exercise jurisdiction.
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54.
(Points: 1)
Ruth files a suit against Solid Products, Inc. Solid responds that even if Ruth’s statement of the facts is true, according to the law Solid is not liable. This is
a. a counterclaim.
b. a motion for judgment on the pleadings.
c. a motion for summary judgment.
d. a motion to dismiss.
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55.
(Points: 1)
Fact Pattern 3-1B
Orin and Pia engage in a business transaction from which a dispute arises. Orin initiates a lawsuit against Pia by filing a complaint.
Refer to Fact Pattern 3-1B. If Pia files a motion to dismiss, she is asserting that
a. Orin did not state a claim for which relief can be granted.
b. Orin’s statement of the facts is not true.
c. Orin’s statement of the law is not true.
d. Pia suffered greater harm than Orin.
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56.
(Points: 1)
Fact Pattern 3-1B
Orin and Pia engage in a business transaction from which a dispute arises. Orin initiates a lawsuit against Pia by filing a complaint.
Refer to Fact Pattern 3-1B. If Pia files a motion to dismiss, and the court grants it
a. Orin will be given more time to file an amended complaint.
b. Orin will have a judgment entered in his favor.
c. Pia will be given more time to file another response.
d. Pia will have a judgment entered in her favor.
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57.
(Points: 1)
To prepare for a trial between Large Lots Development Corporation (LLDC) and MiniMansion Construction Company (MMCC), MMCC’s attorney places LLDC’s president under oath. A court reporter makes a record of the attorney’s questions and the officer’s answers. This is
a. a cross-examination.
b. a deposition.
c. an imposition.
d. an interrogatory.
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58.
(Points: 1)
During the trial phase of Fuel Corporation’s suit against Gas Stations, Inc., their attorneys engage in voir dire. This is
a. the assessment of the arguments on the issues.
b. the determination of the issues to be argued.
c. the litigation of the issues and arguments.
d. the selection of jurors.
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59.
(Points: 1)
Toppers, Inc., files a suit against Unique Hat Company. Toppers’s attorney calls Vicky, the first witness, and questions her. This questioning is
a. cross-examination.
b. direct examination.
c. recross-examination.
d. redirect examination.
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60.
(Points: 1)
Irma files a civil suit against Jim. To succeed, Irma must prove her case
a. beyond a reasonable doubt.
b. by a preponderance of the evidence.
c. by indisputable proof.
d. within an iota of the truth.
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61.
(Points: 1)
Fact Pattern 3-2B
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
Refer to Fact Pattern 3-2B. After a final determination in the case of Kelly v. Lewis, any judgment will be satisfied
a. if the losing party pays the judgment, or his or her property is sold and the proceeds paid to the winner.
b. only if the court orders the sheriff to pay the winner.
c. only if the losing party pays the judgment in cash.
d. only if the losing party’s property is sold and the proceeds paid to the winner.
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62.
(Points: 1)
The three major stages of litigation are filing, answering, and appealing.
TrueFalse
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63.
(Points: 1)
A counterclaim may be raised by a plaintiff against a defendant’s response to a complaint.
TrueFalse
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64.
(Points: 1)
Only a plaintiff may file a motion for summary judgment.
TrueFalse
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65.
(Points: 1)
A motion for summary judgment may be supported with materials outside the pleadings.
TrueFalse
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66.
(Points: 1)
A plaintiff’s rebuttal includes evidence to refute the defendant’s case.
TrueFalse
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67.
(Points: 1)
A judge instructs a jury as to the law that applies in a case.
TrueFalse
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68.
(Points: 1)
A motion for a judgment notwithstanding the verdict seeks to set aside a verdict and enter a new verdict in favor of the nonprevailing party.
TrueFalse
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69.
(Points: 1)
A party who files an appeal is known as an appellant.
TrueFalse
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70.
(Points: 1)
A reviewing court reverses a trial court’s judgment only in cases in which the plaintiffs lost.
TrueFalse
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71.
(Points: 1)
In an appeal, the parties’ attorneys cannot present oral arguments.
TrueFalse
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72.
(Points: 1)
Business Markets Coalition (BMC), a political lobbying group, wants a certain policy enacted into law. If BMC’s policy conflicts with the U. S. Constitution, a law embodying it can be enacted by
a. any state legislature and Congress.
b. any state legislature but not Congress.
c. Congress but not any state legislature.
d. none of the choices.
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73.
(Points: 1)
Eli, a citizen of Florida, wants to obtain a business license in Georgia. The Georgia state legislature enacts a law that imposes a $2, 000 license fee on nonresidents. Georgia residents pay $0. This most likely violates
a. no provision in the U. S. Constitution.
b. the commerce clause.
c. the full faith and credit clause.
d. the privileges and immunities clause.
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74.
(Points: 1)
The Constitution sets out the authority and the limits of the branches of the government. The term checks and balances means that
a. Congress writes checks and the president balances the budget.
b. each branch of government has some power to limit the actions of the other branches.
c. each branch of government may exercise the authority of the other branches.
d. the president ” checks” the courts, which ” balance” the laws.
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75.
(Points: 1)
The Motor Vehicle Insurance Association wants the federal government to spend money to build a new highway. Congress can spend revenues
a. only to carry out Congress’s enumerated powers.
b. to promote any objective that Congress deems worthwhile.
c. without regard to whether the expense violates the Bill of Rights.
d. without regard to whether the expense violates the Constitution.
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76.
(Points: 1)
Mike, an advocate of a certain religion, publishes an article in New Times magazine insisting that Congress base all federal law on his religion’s principles. The First Amendment guarantees Mike’s freedom of
a. religion only.
b. speech only.
c. the press only.
d. the press, speech, and religion.
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77.
(Points: 1)
Len, a citizen of Maryland, obtains a federal license to operate a commercial fishing boat in Chesapeake Bay. The Maryland state legislature enacts a law that bans all commercial fishing in the bay. The state law most likely violates
a. no provision in the U. S. Constitution.
b. the commerce clause.
c. the due process clause.
d. the supremacy clause.
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78.
(Points: 1)
Serene City enacts an ordinance that bans the use of ” sound amplifying systems” on public streets. Tom wants to campaign for a seat on the city council by broadcasting his message through speakers mounted on a truck. In Tom’s suit against the city, a court would likely hold this ordinance to be
a. constitutional under the First Amendment.
b. not subject to the U. S. Constitution.
c. unconstitutional under the commerce clause.
d. unconstitutional under the First Amendment.
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79.
(Points: 1)
Congress enacts the Tight Money Act (TMA) of 2006 to ban ” major business entities” from making political contributions that individuals can make. A court would likely hold the TMA to be
a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect state interests.
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80.
(Points: 1)
Myra claims that a Nebraska state statute infringes on her ” procedural due process” rights. This claim focuses on
a. procedures used in making decisions to take life, liberty, or property.
b. the content of the statute.
c. the similarity of the treatment of similarly situated individuals.
d. the steps to be taken to protect Mary’s privacy.
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81.
(Points: 1)
South Carolina enacts a statute to impose a prison term, without a trial, on all street vendors who operate in certain areas. A court would likely hold this to be
a. constitutional under the due process clause.
b. constitutional under the equal protection clause.
c. unconstitutional under the due process clause.
d. unconstitutional under the equal protection clause.
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82.
(Points: 1)
A federal form of government is a confederation of independent states with a central government of very limited powers.
TrueFalse
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83.
(Points: 1)
The federal government retains all powers not specifically delegated to the states.
TrueFalse
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84.
(Points: 1)
Whether the federal government has preempted a certain area is always clear.
TrueFalse
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85.
(Points: 1)
The taxing and spending clause of the U. S. Constitution has had a greater impact on business than any other clause in the Constitution.
TrueFalse
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86.
(Points: 1)
Some constitutional protections apply to business entities.
TrueFalse
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87.
(Points: 1)
The Bill of Rights confers absolute rights, not subject to interpretation by the United States Supreme Court.
TrueFalse
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88.
(Points: 1)
Political speech that would otherwise be protected by the First Amendment loses that protection if its source is a corporation.
TrueFalse
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89.
(Points: 1)
The establishment clause of the U. S. Constitution prohibits the federal government from establishing an official religion.
TrueFalse
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90.
(Points: 1)
Any law that distinguishes between or among individuals violates the equal protection clause.
TrueFalse
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91.
(Points: 1)
Review of a law on a substantive due process basis and review of a law on an equal protection basis considers some similar questions.
TrueFalse
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92.
(Points: 10)
Old Oak Brewery, Inc., makes and sells alcoholic beverages with labels that display a drawing of a squirrel making the gesture generally known as ” giving the finger.” Old Oak applies to the Ohio State Liquor Authority (OSLA) for brand-label approval to sell the beer in Ohio. Without considering alternatives, OSLA denies approval because ” the label could appear in grocery stores, with obvious exposure on the shelf to children of tender age.” Why would a court hold that the denial of Old Oak’s application violates the First Amendment
Paragraph This is speech that would not incite a riot, therefore it would be a violation of the First Amendment. (See more about Question 92 after the quiz.)
Insert equation
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93.
(Points: 1)
Mina works in the public relations department of National Sales Company. Her job includes portraying National’s activities in their best light. In this context, ethics consist of
a. a different set of principles from those that apply to other activities.
b. the same moral principles that apply to non-business activities.
c. those principles that produce the most favorable financial outcome.
d. whatever saves National’s ” face.”
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94.
(Points: 1)
Fact Pattern 5-1B
Leo runs an asset recovery business. In one case, he recruits clients by misrepresenting the facts and pretending to be licensed to practice law in Mississippi. He files gratuitous, malicious pleadings, lies to the court, and otherwise abuses the judicial process. Later, he involves himself in other cases in which he uses similar tactics.
Refer to Fact Pattern 5-1B. According to the description quoted by the court in Case 5. 1, Baum v. Blue Moon Ventures LLC, Leo’s conduct is
a. ” an example of guerilla warfare through litigation.”
b. ” praiseworthy for its ingenuity in recovering hidden assets.”
c. ” understandable in the pursuit of profit but not laudable.”
d. ” unjustifiable but not seriously reprehensible.”
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95.
(Points: 1)
Dona, an accountant for Engineering Services, Inc., attempts to apply the duty-based approach to ethical reasoning in conflicts that occur on the job. This approach is based on the idea that a person
a. has a duty to engage in ethical behavior no matter the consequences.
b. has a duty to conform one’s behavior to society’s ethical standards.
c. has a duty to one’s employer that is superior to any other duty.
d. may engage in unethical behavior if it achieves a greater good.
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96.
(Points: 1)
Eve, the chief executive officer of Federated Corporation (FC), wants to ensure that FC’s activities are legal and ethical. The best course of Eve and FC is to act in
a. good faith.
b. ignorance of the law.
c. regard for the firm’s shareholders only.
d. their own self interest.
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97.
(Points: 1)
Make-It Construction Corporation makes a side payment to a government official in Nigeria to obtain a contract. In the United States, this is
a. illegal and unethical.
b. illegal only.
c. neither illegal nor unethical.
d. unethical only.
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98.
(Points: 1)
Managers must apply different standards to themselves than they apply to their employees.
TrueFalse
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99.
(Points: 1)
According to utilitarianism, an action that affects a minority adversely is morally wrong.
TrueFalse
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100.
(Points: 1)
Corporate ethical policies must be clearly communicated to be effective.
TrueFalse
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101.
(Points: 1)
The legality of a particular action is always clear.
TrueFalse
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102.
(Points: 1)
Ignorance of a law excuses a business from liability for its violation.
TrueFalse
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103.
(Points: 10)
Olaf, an executive with Product Distribution, Inc., has to decide whether to market a product that might have undesirable side effects for a small percentage of users. What is the balance that must be struck in deciding whether to sell the product How does the standard of ethics that is applied affect this balance
Paragraph
Insert equation Olaf must decide that he is not going to sell the product because of his liability for that small percentage of customers that would be harmed, or consider attaching a warning label to the product. (See more about Question 103 after quiz.)
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Three Essay Questions
Answer to Question 51. Quik, although it is a company based in Maine, still has to appear in court due to the fact that the jurisdiction of where the plaintiff, Orin, resided-New York-was where the offense took place due to the fact that the product was distributed in New York.
Most likely the court would advocate for in rem jurisdiction. ” Rem is Latin for ‘thing.’ When a court exercises in rem jurisdiction, it exercises authority over a thing, rather than a personUsually, the property must be located in the same county as the court for it to have in rem1 jurisdiction.” 2
Technically, the court could decide to prosecute either in Maine or in New York, depending on where the court decided where the case should be held. Typically cases such as these are held in the states where the plaintfiff filed the grievance.
While it is not entirely impossible that the case could be pursued in a court of law in Maine, this is highly unlikely. Since the plaintiff was injured within New York, technically torts law would dictate that the legal proceedings, therefore, would then concurrently take place in New York as well.
This is simply a jurisdictional matter. The fact that the original parent company of the brand name item through which Orin became ill resides in Maine is of no consequence, and consequentially has no bearing on the fact that the damage occurred in New York.
In light of these facts, the case would most likely be tried in New York courts.
Answer to Question 92. Although Old Oak’s particular brand of humor may have been found offensive by OSLA, the main issue at stake is the concept of free speech. What is key here is one must decide if this is a question of law or a question of fact.
In this case, all the facts are clear. OSLA’s claim that children would see the offensive material in stores is of no consequence to the fact that the rejection of Old Oaks’s right to free speech guaranteed by the First Amendment.
In the First Amendment, basically any kind of speech (even hate speech or offensive speech) is guaranteed by the free speech clause-so long as the speech being used does not incite a riot, which is illegal.
Technically Old Oaks was within its right to sue and they should be allowed to have their beer on the shelves with their logo of the squirrel ” giving the finger.”
Answer to Question 103. On one hand, Olaf wants to sell his product. On the other hand, he does not want to see anyone harmed due to the fact that they used his product. How can he strike a balance Instead of not selling the product altogether because of the potential liability it would pose for a small fraction of his consumers, Olaf should sell the product with a warning label that would alert said population to the potential harm the product could cause. This is not unlike how some soda companies alert phenylketonurics that their products contain phenylalanine. Ethically, if the potential harm is great to this small sector of people, he should not sell the product at all-the thought being that, if the product contains something that would cause adverse harm but is preventable and highly likely to cause serious damage, it would probably be best for Olaf to consider not selling the product at the cost of great liability to himself.
REFERENCES
‘Lectric Law Library’s Legal Lexicon on ‘In Rem’ Jurisdiction.
Available: http://ow. ly/p9cN. Retrieved 13 September 2009.