Deck 52: The Legal Environment of Business

Question 1

Hal patents a new type of running shoe. Hal and Iconic Shoe Company enter into a contract that allows the firm to make and market the shoe in exchange for royalty payments to Hal that decrease after the patent expires. In a previous case, a similar agreement was held to be invalid. According to the dissent in Kimble v. Marvel Entertainment, LLC, stare decisis​

A) ​means "sticking to some wrong decisions."
B) ​does not require retaining "baseless and damaging precedents."
C) ​promotes unpredictability and inconsistency in the business world.
D) ​permits parties to negotiate a licensing agreement that reflects the true value of a patent.

Answer 1

B

Question 2

​Regional Sales Company expects its sales staff to constantly check their e-mail for work-related messages outside normal working hours. Employees' constant online connectivity with their work raises an issue about

A) ​the definition of work.
B) ​work-related stress.
C) ​the quality of workers' lives.
D) ​overburdened company servers.

Answer 2

A

Question 3

Perry, a process server, cannot locate Quinn, the defendant in Rebecca v. Quinn, to serve him with the summons. Perry's legal and effective options for serving process include delivering the summons​

A) ​as an attachment in an e-mail to Rebecca.
B) ​through a private message to Quinn's Facebook account.
C) ​via any means over the internet to Facebook.
D) ​by posting it on any social media forum that Quinn is known to visit.

Answer 3

B

Question 4

Cell Service Corporation pads all of its customers' bills with an unexpected fee, adding up to millions in profit for Cell at a small expense for each individual customer. In this situation, the customers could most affordably fight this charge by​

A) ​bringing individual lawsuits.
B) ​engaging in individual arbitration.
C) ​filing a class action.
D) ​taking their case to the state legislature.

Question 5

Bailey patents a device that allows its user to pretend to imitate the ability of a superhero copyrighted by Comic Cons, Inc. Bailey and Comic Con enter into a licensing agreement to make and sell the device as a toy to the public. Under the terms of the license, the licensee agrees to pay Bailey royalties of 4 percent. Their contract does not specify an end date. According to a majority of the United States Supreme Court in Kimble v. Marvel Entertainment, LLC, Comic Con can legally stop the payments​

A) ​immediately.
B) ​never.
C) ​when the copyright expires.
D) ​when the patent expires.

Question 6

Eduardo applies for credit with Freeway Auto Sales Ltd. Freeway informs Eduardo that "any claim arising from this deal must be resolved through mandatory arbitration." Through this clause, Freeway will most likely avoid all of the following except​

A) ​a lengthy resolution process.
B) ​engaging in individual arbitration.
C) ​responding to a class action.
D) ​settling a groundless claim.

Question 7

Laredo applies for a job with Marketing Inc. Like most employers, Marketing informs Laredo that "any claim relating to this application or employment shall be settled by​

A) ​arbitration."
B) ​class action."
C) ​collective decision making."
D) ​individual lawsuits, not class action."

Question 8

Salma wishes to file a suit in a Texas state court against Ubi. Texas allows for service of process via social media if Salma can authenticate Ubi's social media account. Allowing service of process only by means of social media raises a question whether that service comports with​

A) ​due process.
B) ​the Federal Rules of Civil Procedure.
C) ​the freedom to contract.
D) ​the rules of evidence.

Question 9

Window Glass Company, like other businesses, has in interest in staying in business. From this perspective, with respect to resolving disputes through arbitration, individual litigation, and class actions, Window is ethically required to​

A) ​curb a bad practice.
B) ​engage in harmful conduct.
C) ​exhaust its assets to litigate or settle a case.
D) ​generate fees for lawyers.

Question 10

Security Patrols Inc. requires its employees to respond to work-related text messages delivered via their company-issued smartphones while on duty in the workplace and while off duty elsewhere. Security's employees might successfully sue their employer for​

A) ​ownership of the company's smartphones.
B) ​a decrease in the quality of life.
C) ​a violation of the right to disconnect.
D) ​unpaid overtime.