Gm 520: Business: Its Legal, Ehtical And Global Environment

1884 words - 8 pages

Week 5 : Agency and Discrimination Law - Midterm

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1. TCO B. Infuriated when Harry Reid is re-elected during the 2010 fall election, the Republican National Committee decides to take matters into its own hands. In 2011, the House of Representatives passes a new "Freedom isn't Free Act" that requires that anyone who wants to vote in the 2012 presidential election must prove that they paid at least $200 in federal income tax in the past year, including people aged 18 (who typically are deducted on their parents' returns and do not pay income tax). Anyone who received the "earned income credit" is barred from voting unless they return the ...view middle of the document...

As he prepared to jump into the water to tube, David's feet slipped out from under him, and he fell into the water, hitting the back of his head and neck on the ladder, knocking him out cold. He slipped under the water and drowned. The other members of the party didn't notice his absence until a passing barge pilot got their attention. He had seen the entire thing through his binoculars; he had been watching Melissa and her friend Angela (who were in bathing suits). Despite an immediate search and rescue attempt by the coast guard, David was not saved. Melissa alleged that the surface of the boat floor where David was standing and preparing to jump into the water was unreasonably slippery. In fact, at issue in the case was the manufacturing process used in coating the flooring. Melissa (and her attorney) felt that a nonslip surface should have been placed on the floor of the boat. The safety manual that came with the boat included these clauses:

"CAUTION: Wet surfaces can be slippery. Passengers should wear adequate deck shoes while boarding and underway to avoid accidental slipping and injury."

"CAUTION: Deck areas and swim platform are slippery when wet. Passengers must be careful when passing through companionway to prevent accidental slipping or tripping. Passengers should wear adequate deck shoes at all times to prevent accidental slipping. Passengers must stay off swim platform while underway to prevent falling overboard."

No warnings existed, however, in view of the passengers on the boat.


(25 points) What potential legal theories of recovery can and should Melissa allege against the following parties (provide support for your answer)?

I. The boat manufacturer
II. The boat seller
III. The coast guard

(15 points) What legal theories of defense can and should each of the above three parties use? Provide support for your answer. (Points : 40)

4. TCO D: Barney and his 16-year-old son BamBam are riding in Fred's car. Fred had taken some prescription medication that morning that stated on the bottle, "Warning, may cause drowsiness." The truck in front of them suffers a blow-out, and swerves uncontrollably. The tire remnants fly into the road, Fred swerves and hits a car to his left. He avoids hitting the truck with the blow-out but suffers damage to the left side of his car. BamBam hits his head on the side of the car, getting a concussion and permanently losing the sight in his right eye. Fred has state law required auto insurance with the minimum policy limits.
Fred's wife, Wilma, immediately calls Betty, BamBam's mom, and apologizes when she finds out about BamBam losing his eye. Wilma says to Betty, "Please don't worry. We will pay for anything the insurance doesn't cover, including the loss of BamBam's sight and anything else he needs to recover and live a normal life." Betty sobs and says, "You are too good to us. We can't accept that." Wilma says, "Of course you can." Betty cries harder and...

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