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BUSN 420 Week 8 Final Exam

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1. (TCO 1) As an assistant in the legal department of a major corporation, your supervisor has
asked you to do some research on how various laws may be applied in an upcoming case. Your
department needs to coordinate with outside counsel and wants to be up to speed on how the law
works. Explain the sources of law in the American legal system. Is our civil law system more or
less advantageous than the common law system? Why is it important to understand all sources of
law and where to find them? Explain your answer with examples in a business context. (Points :
25)
2. (TCO 2) Given the current economic climate nationwide and locally, the state of Delmarva
would like to impose a higher tax on out-of-state companies doing business in the state than it
imposes on in-state companies. The reason behind the legislatures enactment of this law is to
protect the local firms from out-of-state competition because they are losing local business,
which is affecting the states economy. Is this law legal, or is it a violation of equal protection for
a state to impose? What legal standards could the court apply in evaluating the constitutionality
of a law and which would apply in this instance? Explain. (Points : 25)
3. (TCO 3) Create a brief scenario and walk it through the litigation process, beginning with how
to select the proper jurisdiction of a court, and progressing through the basic steps leading to a
resolution of the dispute through appeal.(Points : 25)
4. (TCO 4) Sandy mails a letter back to Andrea that she has signed; the letter makes reference to
a car Andrea has for sale and Andreas desired price. When Andrea later delivers the car to
Sandy, Sandy returns the car, claiming she does not want the car and that they did not have a

contract, so she is not bound to keep the car. Andrea, however, claims they do have a contract
and wants to enforce said contract for the price of the car. What standard would the court use to
determine whether there is a contract between the parties for the sale of the car?(Points : 25)
5. (TCO 5) There are several distinctions in contract law between the UCC and common law as it
relates to certain principles. As it relates to modification of a contract, how is the UCCs
treatment of this subject different from that of common law? What are the important factors to be
considered? Provide an example that demonstrates the difference.(Points : 25)
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1. (TCO 6) Explain your understanding of administrative law. How would you classify
administrative law from a categorical standpoint as it fits in the context of other areas of law and
what procedures are involved in the administrative process as it pertains to an agencys function
and purpose?(Points : 25)
2. (TCO 7) Smart Corporation began marketing phone in 2002 under the mark Smart. In 2008,
Smart.com, Inc., a different company selling different products, such as school supplies and the
like, begins using smart as part of its website URL and registers sMART as its domain name.
Can Smart Corporation stop this use of sMART? If so, what must the company show? Use the
scenario given to explain your answer in this context.(Points : 25)
3. (TCO 8) Your Company, Inc. wants to do business with My Company, LLC. Because our
companies are both savvy, they would like to conduct their business online. What determines the
effect (or lack thereof) of the electronic documents evidencing the parties deal according to the
Uniform Electronic Transactions Act (UETA)? Is a signature from one of the companys a
necessary part of the deal? Explain you answer by elaborating on the scenario with the facts you
think are necessary to support your position.(Points : 25)
4. (TCO 9) Agency law plays a big part in corporate responsibility (and liability). Differentiate
between an employee and an independent contractor. What is the difference and what are the key
factors that must be considered in determining ones status as an employee or independent
contractor? Once status is determined, what affect will it have on the responsibilities of the
agent? The principal? Is one status better than another? Why? Explain your answers using a
representative example involving a principal, an agent, and a situation that would call the agents
status into question.(Points : 25)
5. (TCO 10) Tim and Tom are twins. They live and work near the beach and are also partners in
TnT, Inc., a bicycle messenger service. When deliveries are few, especially in the summer, Tom
without telling Tim, rents the extra bicycles to tourists who want to explore the resort area.
Because the bicycles arent being used for deliveries, is it acceptable for Tom to keep the
proceeds he receives from renting leasing the unused bicycles? Explain your answer based on the
facts in the scenario in the context of partnership law.(Points : 25)

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