Commercial Law 1
Under what circumstances might a judge rely on case law to determine the intent and
purpose of a statute? - correct answer-Case law includes courts' interpretations of statutes,
as well as constitutional provisions and administrative rules. Statutes often codify common
law rules. For these reasons, a judge might rely on the common law as a guide to the intent
and purpose of a statute.
After WWll, several Nazis were convicted of "crimes against humanity" by an international
court. Assuming that these convicted war criminals had not disobeyed any law of their
country and had merely been following their government's orders, what law had they
violated? - correct answer-At the time of the Nuremberg trials, "crimes against humanity"
were new international crimes. The laws criminalized such acts as murder, extermination,
enslavement, deportation, and other inhumane acts committed against any civilian
population. These international laws derived their legitimacy from "natural law".
Natural law, which is the oldest and one of the most significant schools of jurisprudence,
holds that governments and legal systems should reflect the moral and ethical ideals that are
inherent in human nature. Because natural law is universal and discoverable by reason, its
adherents believe that all other law is derived from natural law. Natural law, therefore,
supersedes laws created by humans and in a conflict between the two, national or positive
law loses its legitimacy.
The Nuremberg defendants asserted that they had been acting in accordance with German
law. The judges clearly believed the tenets of natural law and expected that the defendants,
too, should have been able to realize that their acts ran afoul of it. The fact that the "positivist
law" of Germany at the time required them to commit these acts is irrelevant. Under natural
law theory, the international court was justified in finding the defendants guilty of crimes
against humanity.
Sue uses her smartphone to purchase a video security system for her architectural firm from
Tipton, Inc., a company located in a different state. The system arrives a month after the
projected delivery date, is poor quality, and does not function as advertised. Sue files a suit
against Tipton in a state court. Does the court in Sue's state have jurisdiction over Tipon?
What factors will the court consider in determining jurisdiction? - correct answer-Yes, the
court in Sue's state has jurisdiction over Tipton on the basis of the company's minimum
contracts with the state.
Courts look at the following factors:
Quantity
Nature and Quality
Source and Connection
Interest of the forum state
Convenience of the parties
Attempting to exercise jurisdiction without sufficient minimum contacts would violate the due
process clause. Generally, courts have found that jurisdiction is proper when there is
substantial business conducted online.
, At the trial, after Sue calls her witnesses, offers her evidence, and otherwise presents her
side of the case, Tom has at least two choices between courses of actions. Tom can call his
first witness. What else might he do? - correct answer-Tom could file a motion for a directed
verdict. This motion asks the judge to direct a verdict for Tom on the ground that Sue
presented no evidence that would justify granting Sue relief. The judge grants the motion if
there is insufficient evidence to raise an issue of fact.
After the trial, the judge issues a judgement that includes a grant of relief for Sue, but the
relief is less than Sue wanted. Neither Sue nor Tom is satisfied with this result. Who can
appeal to a higher court? - correct answer-Either a plaintiff or a defendant, or both, can
appeal a judgement to a higher court. An appellate court can affirm, reverse, or remand a
case, or take any of these actions in combination. To appeal successfully, it is best to appeal
on the basis of an error of law, because appellate courts do not usually reverse on findings
of fact.
Dyna tells Ed that she will pay him $1,000 to set fire to her store so that she can collect
under a fire insurance policy. Ed sets fire to the store, but Dyna refuses to pay. Can Ed
recover? Why or why not? - correct answer-No. This contract, although not fully executed, is
for an illegal purpose and therefore is void. A void contract gives rise to no legal obligation
on the party of any party. A contract that is void is no contract. There is nothing to enforce.
Alison receives a notice of property taxes due from a local tax collector. The notice is for tax
on Jerry's property, but Alison believes that the tax is on her property and pays it. Can Alison
recover from Jerry the amount that she paid? Why or why not? - correct answer-Yes,
because a person who is unjustly enriched at the expense of another can be required to
account for the benefit under the theory of quasi contract. The parties here did not have a
contract, but the law will impose one to avoid the unjust enrichment.
Fidelity Corporation offers to hire Ron to replace Monica, who has given Fidelity a month's
notice of intent to quit. Fidelity gives Ron a week to decide whether to accept. Two days
later, Monica decides not to quit and signs an employment contract with Fidelity for another
year. The next day, Monica tells Ron of the new contract. Ron immediately faxes a formal
letter of acceptance to Fidelity. Do Fidelity and Ron have a contract? Why or why not? -
correct answer-No. Revocation of an offer may be implied by conduct inconsistent with the
offer. When the corporation hired someone else, and the offeree learned of the hiring, the
offer was revoked. The acceptance was too late.
Applied Products, Inc., does business with Beltway Distribution, Inc., online. Under the
Uniform Electronic Transactions Act, what determines the effect of the electronic documents
evidencing the parties' deal? Is a party's "signature" necessary? Explain - correct
answer-First, it might be noted that the UETA does not apply unless the parties to a contract
agree to use e-commerce in their transaction. In this deal, of course, the parties used
e-commerce. The UETA removes barriers to e-commerce by giving the same legal effect to
e-records and e-signatures as to paper documents and signatures. The UETA does not
include rules for those transactions, however.
In September, Sharyn agreed to work for Totem Productions, Inc., at $500 a week for a year
beginning January 1. In October, Sharyn is offered the same work at $600 a week by Umber
Under what circumstances might a judge rely on case law to determine the intent and
purpose of a statute? - correct answer-Case law includes courts' interpretations of statutes,
as well as constitutional provisions and administrative rules. Statutes often codify common
law rules. For these reasons, a judge might rely on the common law as a guide to the intent
and purpose of a statute.
After WWll, several Nazis were convicted of "crimes against humanity" by an international
court. Assuming that these convicted war criminals had not disobeyed any law of their
country and had merely been following their government's orders, what law had they
violated? - correct answer-At the time of the Nuremberg trials, "crimes against humanity"
were new international crimes. The laws criminalized such acts as murder, extermination,
enslavement, deportation, and other inhumane acts committed against any civilian
population. These international laws derived their legitimacy from "natural law".
Natural law, which is the oldest and one of the most significant schools of jurisprudence,
holds that governments and legal systems should reflect the moral and ethical ideals that are
inherent in human nature. Because natural law is universal and discoverable by reason, its
adherents believe that all other law is derived from natural law. Natural law, therefore,
supersedes laws created by humans and in a conflict between the two, national or positive
law loses its legitimacy.
The Nuremberg defendants asserted that they had been acting in accordance with German
law. The judges clearly believed the tenets of natural law and expected that the defendants,
too, should have been able to realize that their acts ran afoul of it. The fact that the "positivist
law" of Germany at the time required them to commit these acts is irrelevant. Under natural
law theory, the international court was justified in finding the defendants guilty of crimes
against humanity.
Sue uses her smartphone to purchase a video security system for her architectural firm from
Tipton, Inc., a company located in a different state. The system arrives a month after the
projected delivery date, is poor quality, and does not function as advertised. Sue files a suit
against Tipton in a state court. Does the court in Sue's state have jurisdiction over Tipon?
What factors will the court consider in determining jurisdiction? - correct answer-Yes, the
court in Sue's state has jurisdiction over Tipton on the basis of the company's minimum
contracts with the state.
Courts look at the following factors:
Quantity
Nature and Quality
Source and Connection
Interest of the forum state
Convenience of the parties
Attempting to exercise jurisdiction without sufficient minimum contacts would violate the due
process clause. Generally, courts have found that jurisdiction is proper when there is
substantial business conducted online.
, At the trial, after Sue calls her witnesses, offers her evidence, and otherwise presents her
side of the case, Tom has at least two choices between courses of actions. Tom can call his
first witness. What else might he do? - correct answer-Tom could file a motion for a directed
verdict. This motion asks the judge to direct a verdict for Tom on the ground that Sue
presented no evidence that would justify granting Sue relief. The judge grants the motion if
there is insufficient evidence to raise an issue of fact.
After the trial, the judge issues a judgement that includes a grant of relief for Sue, but the
relief is less than Sue wanted. Neither Sue nor Tom is satisfied with this result. Who can
appeal to a higher court? - correct answer-Either a plaintiff or a defendant, or both, can
appeal a judgement to a higher court. An appellate court can affirm, reverse, or remand a
case, or take any of these actions in combination. To appeal successfully, it is best to appeal
on the basis of an error of law, because appellate courts do not usually reverse on findings
of fact.
Dyna tells Ed that she will pay him $1,000 to set fire to her store so that she can collect
under a fire insurance policy. Ed sets fire to the store, but Dyna refuses to pay. Can Ed
recover? Why or why not? - correct answer-No. This contract, although not fully executed, is
for an illegal purpose and therefore is void. A void contract gives rise to no legal obligation
on the party of any party. A contract that is void is no contract. There is nothing to enforce.
Alison receives a notice of property taxes due from a local tax collector. The notice is for tax
on Jerry's property, but Alison believes that the tax is on her property and pays it. Can Alison
recover from Jerry the amount that she paid? Why or why not? - correct answer-Yes,
because a person who is unjustly enriched at the expense of another can be required to
account for the benefit under the theory of quasi contract. The parties here did not have a
contract, but the law will impose one to avoid the unjust enrichment.
Fidelity Corporation offers to hire Ron to replace Monica, who has given Fidelity a month's
notice of intent to quit. Fidelity gives Ron a week to decide whether to accept. Two days
later, Monica decides not to quit and signs an employment contract with Fidelity for another
year. The next day, Monica tells Ron of the new contract. Ron immediately faxes a formal
letter of acceptance to Fidelity. Do Fidelity and Ron have a contract? Why or why not? -
correct answer-No. Revocation of an offer may be implied by conduct inconsistent with the
offer. When the corporation hired someone else, and the offeree learned of the hiring, the
offer was revoked. The acceptance was too late.
Applied Products, Inc., does business with Beltway Distribution, Inc., online. Under the
Uniform Electronic Transactions Act, what determines the effect of the electronic documents
evidencing the parties' deal? Is a party's "signature" necessary? Explain - correct
answer-First, it might be noted that the UETA does not apply unless the parties to a contract
agree to use e-commerce in their transaction. In this deal, of course, the parties used
e-commerce. The UETA removes barriers to e-commerce by giving the same legal effect to
e-records and e-signatures as to paper documents and signatures. The UETA does not
include rules for those transactions, however.
In September, Sharyn agreed to work for Totem Productions, Inc., at $500 a week for a year
beginning January 1. In October, Sharyn is offered the same work at $600 a week by Umber
