Examination Two – Business Law

1. PLEASE RESPOND TO ALL FIVE ESSAYS.
2. Your RESPONSES/ANSWERS should be submitted by typewritten assignment which follows the following guidelines:
3. 1 Inch Margins: Top, Bottom, Left, and Right
4. Line Spacing: Double Spaced
5. Questions: DO NOT RESTATE the questions – just answer after numbering.
6. File name: Your Last Name-Ex02
7. Formatting: Make sure to include the following in the upper right-hand corner of the first page of your submission:

YOUR LAST NAME, Your First Name

Online

Exam Two Essays

Due: 

• When you complete Essay Question #01, you should start a new page to begin your Response to Essay Question #02.
• Explain your answer thoroughly using logic and the information you learned in your textbook and Online lectures.  Cite any information that you did not originate.
• Be as detailed as possible in your response including citations to the appropriate information in the textbook and your lectures.  Make sure to number your responses as listed and start each new question on a new page.  You do not need to restate the question.

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Question E2-A  (Worth 10 points)

Roman is the chief executive officer of RoadKill Corporation.  Roman’s responsibilities include decisions on product development, marketing, and other significant business directions. Roman is subject to the approval and oversight of RoadKill’s board of directors.  Val is a RoadKill manager whose duties include the firm’s day-to-day hiring, firing, purchasing, and selling.  Amber is a RoadKill salesperson, whose daily activities are controlled by Val.  Sandy writes sales manuals and promotional materials for RoadKill’s products according to Roman’s instructions and subject to RoadKill’s control, but has no dealings with the company’s customers or suppliers.  Gary writes copy on a contract-per-project basis and is not otherwise subject to RoadKill’s control.

1. Who is a principal?  Explain how you made this conclusion.
2. Who is an agent?  Explain how you made this conclusion.
3. Who is an employee?  Explain how you made this conclusion.
4. Who is an independent contractor?  Explain how you made this conclusion.

Question E2-B  (Worth 10 points)

Breathe-In Company, a major supplier of air filters sold throughout the U.S., employs one hundred workers at its principal manufacturing plant.  The plant is located in Davenport, which has a population that is 50 percent white and 25 percent African American, with the balance Hispanic American, Asian American, and others.  Breathe-In requires a high school diploma as a condition of employment for its cleaning crew.  Three-fourths of the white population completed high school, compared with only one-fourth of those in the minority groups.  Breathe-In has an all-white cleaning crew.

Has Breathe-In violated the Civil Rights Act?  Explain in detail.

Question E2-C  (Worth 10 points)

Christi is a purchasing agent for Honda Motors Corporation.  Dan, a Honda corporate officer, gives Christi written authority to buy for the firm as much tires as necessary.  The next day, Dan calls Christi and tells her to buy only a certain quantity of tires and no more.  Christi shows the written authority to Goodyear Tires, Inc., and enters into a contract to buy more than the quantity specified by Dan.  Goodyear ships the order to Honda.

1. Is Honda liable to Goodyear under the contract?  If so, why?  If not, why not?  Explain in detail.
2. Is Christi liable for the purchase?  If so, why?  If not, why not?  Explain in detail.

Question E2-D  (Worth 10 points)

American Manufacturing Company (AMC) requires that its employees wear uniforms and protective clothing while on the job. AMC provides a locker room for the employees to leave their street clothes and personal items while working. A sign on the back of the locker room door states, “American Manufacturing is not responsible for the loss of any property in the locker room.” Bob, an AMC employee, changes his clothes in the locker room before starting work and leaves his wallet and watch in a pocket of his jacket hanging in his locker. When he returns after his shift, the wallet and watch are gone.

1. Does Bob’s leaving personal items in the locker room constitute a bailment?
2. If so, what type of bailment? If not, what legal relationship is it?
3. Does AMC’s sign exculpate the com­pany for Bob’s loss? Why or why not?

Question E2-E  (Worth 10 points)

Chesapeake Energy Company is subject to mandatory workers’ compensation laws in the states in which it does business.  Russell and Steven work for Chesapeake Energy as part of a crew that travels to remote locations to repair broken pumps and other damaged equipment.  At a distant site, Russell is injured in an accident that is entirely Steven’s fault.  Russell files a claim for workers’ compensation.

1. Should the claim be granted?  Explain in detail.
2. What would be Chesapeake’s best defense against it?  Explain in detail.