Question 1

According to the United States Supreme Court, under the First Amendment, if speech is the means for the commission of a specific criminal act,

Accepted Answer

Speech that is the means for committing a specific criminal act is not protected under the First Amendment. This principle allows the government to restrict speech that would otherwise be protected if it is directed to inciting or producing imminent lawless action and is likely to incite or produce such action.

Question 2

Bud patents a device that allows its user to pretend to imitate the ability of a superhero copyrighted by Comic Con Inc. Bud 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 Bud 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

Accepted Answer

The Supreme Court in Kimble v. Marvel Entertainment, LLC held that a patent licensor cannot charge royalties for the use of his invention after its patent term has expired.

Question 3

When making a business decision, those responsible for making it sometimes focus on short-run profit maximization in preference to ethical considerations. Subject to analysis according to the IDDR framework, this decision would most likely

Accepted Answer

The decision to focus on short-run profit maximization in preference to ethical considerations would not survive under any ethical standard because it violates the principle of beneficence, which requires that we act in a way that benefits others.

Question 4

Hosni patents a new type of running shoe. Hosni and Iconic Shoe Company enter into a contract that allows the firm to make and market the shoe in exchange for royalty payments to Hosni 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

Accepted Answer

According to the dissent in Kimble v. Marvel Entertainment, LLC, stare decisis does not require retaining "baseless and damaging precedents." This principle suggests that not all precedents must be adhered to, especially if they are found to be without a solid foundation and harmful.

Question 5

Smelting Company has in interest in staying in business. From this perspective, with respect to resolving disputes through arbitration, individual litigation, and class actions, Smelting is ethically required to

Accepted Answer

Curbing a bad practice is ethically required for a company interested in staying in business, as it aligns with maintaining a good reputation and ensuring long-term sustainability. Engaging in harmful conduct, exhausting assets for litigation, or generating fees for lawyers do not directly address ethical obligations towards resolving disputes in a manner that is beneficial for the company and its stakeholders.

Question 6

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

Accepted Answer

Service of process via social media raises due process concerns because it must be reasonably calculated, under all the circumstances, to apprise interested parties of the pendency of the action and afford them an opportunity to present their objections. The method must be such as one desirous of actually informing the absentee might reasonably adopt to accomplish it.

Question 7

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

Accepted Answer

Arbitration is a common method for resolving disputes related to employment, as it is often stipulated in employment contracts or agreements that any claims will be settled through this process rather than through court proceedings.

Question 8

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

Accepted Answer

The answer of Regional Sales Company expects its sales staff...

Question 9

An important reason for applying the IDDR approach to a review of the ethical conflicts in a given business situation, and one of the difficulties in evaluating its consequences, is to

Accepted Answer

The IDDR approach (Identify, Decide, Defend, Review) is designed to proactively identify potential ethical problems before they occur, allowing for preventative measures to be taken. This forward-looking aspect is crucial for ethical decision-making in business.

Question 10

Bey, a process server, cannot locate Cate, the defendant in Demi v. Cate , to serve her with the summons. Bey's legal and effective options for serving process include delivering the summons

Accepted Answer

Service of process through a private message to Cate's Facebook account can be considered a legal and effective option if traditional methods of service are impracticable and if the court authorizes this method, recognizing that the defendant is likely to receive notice this way.

Question 11

In evaluating the reasonableness of a state statute prohibiting sex offenders from accessing all social media, a court must strike a balance between

Accepted Answer

The court must balance the government's obligation to protect its citizens and uphold their rights with the rights of individuals, including sex offenders, to access social media as a form of free speech and expression.

Question 12

Fuel-Co Gas Stations LLC pads all of its customers' bills with an unexpected fee, adding up to millions in profit for Fuel-Co at a small expense for each individual customer. The customers could most affordably fight this charge by

Accepted Answer

Filing a class action allows customers to pool their resources and share the legal costs, making it a more affordable option for challenging the fee compared to individual lawsuits or arbitration. It also has a greater potential impact by addressing the issue collectively.

Question 13

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

Accepted Answer

The answer of Security Patrols Inc. requires its employees to...

Question 14

Senta applies for credit with Truck Sales Inc. The company informs Senta that "any claim arising from this deal must be resolved through mandatory arbitration." Through this clause, Truck Sales will most likely avoid all of the following except

Accepted Answer

Mandatory arbitration clauses typically aim to avoid lengthy court processes, class actions, and groundless claims, but they do not necessarily avoid engaging in individual arbitration, which is the intended resolution method.

Quiz 49: The Legal Environment of Business