Question Question 1. 1. (TCOs B, C, G, I) Lonestar

Question 1. 1. (TCOs B, C, G, I) Lonestar Trucking, a large freight 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? How would they challenge if the law was passed? (Points : 10)

Question 2. 2. (TCO C) Three professors from Keller’s Massachusetts campus, Damaggio, Nixon, and Kennedy, decide to visit KLM Go-kart facility together in Maine. This decision is made after a lengthy faculty brunch, at which unlimited alcoholic mimosas were served. KLM 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”; “KLM 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 MAINE.”

Professor Damaggio, who lives in New Hampshire, 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!”

Kennedy and Nixon, 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, Tommy, KLM’s mechanic, fed up with low pay, did not do the usual morning inspection of the brakes and tires on either vehicle that morning. KLM had been contemplating firing Tommy due to his erratic work habits. KLM instructed Tommy to inspect the PrimoKarts daily as they never trusted their brake mechanism. PrimoKartss are regularly marketed to amusement parks. Their instruction manual states that they are not to be used for racing.

After two laps, Kennedy’s brakes fail as he tries to aggressively pass Nixon. He crashes into Nixon’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 Damaggio 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 Damaggio’s wrist. At the hospital, Damaggio 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 Damaggio had been rendered brain dead by accident at the KLM Go-kart facility.

(a) What claims may Professor Damaggio’s widow bring against the various parties?

(b) What defenses might each party bring against the possible claims asserted by Professor Damaggio’s widow?

(c) In what state should the case be brought? (Points : 15)

Question 3. 3. (TCOs A, D, E) Daphne Vega Rueben, a then-unknown salsa singer, signed a three album recording contract with Rainbow Music, Inc. Rainbow Music was a boutique label specializing in Latin artists. Vega Rueben’s first album for Rainbow was moderately successful. The second album, unfortunately, was panned by the critics and did not sell. Rainbow Music was acquired by BigMusicMedia, Inc. BigMusicMedia, in an effort to re-vitalize Vega Rueben’s career, encouraged her to leave the salsa style she was committed to and do more commercially viable pop material. Vega Rueben rejected this request. Furious with BigMusicMedia, Vega Rueben 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 BigMusicMedia. Using her concert band, she recorded tracks for over 30 songs. Due to the financial failure of Vega Rueben’s second album and her recent unsuccessful concert tour, BigMusicMedia did not do the final production work on Vega Rueben’s third album.

Vega Rueben, then entered into a contract with BonitaCancion Communications, Inc. She began recording a new salsa album with BonitaCancion in conjunction with a concert tour that they financed and produced. At her concerts, Vega Rueben would regularly introduce the new material that would be on her new album.

Shortly after the concert tour began, BigMusicMedia brings suit against Daphne Vega Rueben and BonitaCancion Communications, Inc.

(a) What causes of action might BigMusicMedia bring against Vega Rueben and BonitaCancion?

(b) What causes of action might Vega Rueben and BonitaCancion bring against BigMusicMedia?

(c) What types of relief might either party seek? (Points : 10)

Question 4. 4. Why was microsoft considered a monopoly? State which section of law monopolies are in violation of. Give an example of a company that would be considered a monopoly today.

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