28 May Question 1.(TCOs D, E, F) Benjamin is a long-time key salesman for Morton
Question
| 1.(TCOs D, E, F) Benjamin is a long-time key salesman for Morton and Dunderfield, a business supply company in Eastern Pennsylvania. The company decides to change its formal employer/employee relationship with all of its sales people, including Benjamin. Instead of compensating them with salary and a bonus based on quarterly sales, they change the relationship to that of an independent contractor who earns a sizeable percentage commission each month. With the change in this relationship, Morton and Dunderfield require all of their sales people to sign employment contracts which contain a clause that states upon leaving Morton and Dunderfield’s employ, they will not contact any former customers for a period of two (2) years. Benjamin, fearing he will lose his job, signs the agreement. After the first month, he realizes he will earn much less that he formerly did. He seeks your advice on his options. (Points : 15) |
| Question 2. 2.(TCOs B, C, G, I) Lonestar Trucking, a large freight carrier servicing the Southwest, learns from reading in the industry trade magazine that the Federal Motor Carrier Safety Administration (FMCSA) has proposed a regulation change. The regulation, proposed pursuant to a statute that restricts drivers from operating/driving a truck for more than twelve (12) hours a day, will now require drug testing of any driver involved in an accident. The regulation was proposed due to political pressure from Mothers Against Impaired Driving (MAID), a group dedicated to eliminating deaths due to people driving while impaired. Lonestar Trucking is concerned, not just about the costs of implementing such a regulation, but how it will comply with its requirements since accidents often occur far from their base of operations. Lonestar Trucking’s employees and their union are also very upset with the proposal. They are concerned that the field drug tests used by police officers are notorious for giving “false positive” results, and that the proposed regulation will require that a test be given even when “the other diver” is clearly at fault. What should Lonestar Trucking do regarding the proposed change? (Points : 15) |
| Question 3. 3.(TCO C) Three professors from Keller’s Illinois campus, Favre, Bush, and Clinton, decide to visit XYZ Go-kart facility together in Minnesota. This decision is made after a lengthy faculty brunch, at which unlimited alcoholic mimosas were served. XYZ Go-kart advertises at the college’s various campuses and, in fact, the professors use their faculty discount at the facility. At the facility signs are posted everywhere in bold: “BY PARTICIPATING IN Go-KART RACING, YOU VOLUNTARILY ASSUME THE RISK OF ANY DEATH OR INJURY THAT MAY RESULT. “ Additionally, the professors hurriedly sign a contract, which states: “YOU ARE GIVING UP ALL LEGAL RIGHTS”; “XYZ WILL NOT BE HELD LIABLE FOR ANY NEGLIGENCE RESULTING IN YOUR INJURY OR DEATH”; and “THE PARTIES AGREE THAT ANY POSSIBLE LEGAL ACTION WILL BE HEARD IN THE STATE OF MINNESOTA.” Professor Favre, who lives in Wisconsin, is sick and sweating profusely after consuming a great deal of alcohol. He decides not to race. He suspects that he is having a minor reaction as he is diabetic and drank more than he intended. In the Waiting Area, which is located next to the track, he takes off his helmet. There is a sign posted that says “KEEP YOUR RACE HELMET ON WHILE IN THE WAITING AREA!” Clinton and Bush, who dislike each other for unknown reasons, are the only ones on the track. They use go-carts manufactured by PrimoKarts. As they begin the race they drive very aggressively. Unbeknownst to either party, Ritchie, XYZ’s mechanic, fed up with low pay, did not do the usual morning inspection of the brakes and tires on either vehicle that morning. XYZ had been contemplating firing Ritchie due to his erratic work habits. XYZ instructed Ritchie to inspect the PrimoKarts daily as they never trusted their brake mechanism. PrimoKarts are regularly marketed to amusement parks. Their instruction manual states that they are not to be used for racing. After two laps, Clinton’s brakes fail as he tries to aggressively pass Bush. He crashes into Bush’s kart near the waiting area. The brakes on both vehicles fail to hold. A tire dislodges at a high-rate of speed, and hits Professor Favre in the head, rendering him unconscious and bleeding from head injuries. His helmet is lying on the ground nearby. An ambulance is called. The medical technicians, seeing the head injuries, fail to notice the medical alert bracelet on Professor Favre’s wrist. At the hospital, Favre dies from insulin shock and other complications due to his diabetes while the emergency room doctor was doing a procedure to prevent blood clots and a possible stroke from the head injury. At autopsy, it was later learned that Professor Favre had been rendered brain dead by accident at the XYZ Go-kart facility. (a) What claims may Professor Favre’s widow bring against the various parties? (b) What defenses might each party bring against the possible claims asserted by Professor Favre’s widow? (c) In what state should the case be brought? (Points : 30) |
| Question 4. 4.(TCOs A, D, E) Judy Collinsworth, a then-unknown folk singer, signed a three album recording contract with Mercury Apollo Music, Inc. Mercury Apollo Music was a boutique label specializing in folk artists. Collinsworth’s first album for Mercury Apollo was moderately successful. The second album, unfortunately, was panned by the critics and did not sell. Mercury Apollo Music was acquired by NastiCondiMedia, Inc. NastiCondiMedia, in an effort to re-vitalize Collinsworth’s career, encouraged her to leave the folk style she was committed to and do more commercially viable pop material. Collinsworth rejected this request. Furious with NastiCondiMedia, Collinsworth wanted to end the contract. On her own, with what remaining personal funds she had left, she immediately went to an independent recording studio and did sessions toward a third album without approval or consent by NastiCondiMedia. Using her concert band, she recorded tracks for over 30 songs. Due to the financial failure of Collinsworth’s second album and her recent unsuccessful concert tour, NastiCondiMedia did not do the final production work on Collinsworth’s third album. Collinsworth then entered into a contract with EasyListening Communications, Inc. She began recording a new folk album with EasyListening in conjunction with a concert tour that they financed and produced. At her concerts, Collinsworth would regularly introduce the new material that would be on her new album. Shortly after the concert tour began, NastiCondiMedia brings suit against Judy Collinsworth and EasyListening Communications, Inc. (a) What causes of action might NastiCondiMedia bring against Collinsworth and EasyListening? (b) What causes of action might Collinsworth and EasyListening bring against NastiCondiMedia? |
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