The Legal Environment of Business

The Legal Environment of Business. 11th Edition

  1. Each scenario should:
  2. Be explored and analyzed fully.
  3. Be supported by case law.
  4. Integrating concepts.
  5. Principles from the text.
  6. Be in APA format.
  7. Be at least two pages in length.
  8. Scenario One:

E-Z Rid disposes of toxic wastes. Elmo worked for E-Z. He contacted clients, negotiated contracts, and oversaw the daily operations at E-Z. The company is so busy its safety procedures are overlooked to get all the work done.

Elmo knew safety lapses at E-Z (including improperly burying toxic waste) were common, but he overlooked this because he wanted the company to succeed.

Elmo was happy until one day he and Jo Wong, president of the E-Z, had an argument. Elmo quit and began to look for another job. Extracto, a rival of E-Z, needed someone like Elmo. He interviewed and thought he would get the job. But when Extracto got a letter describing Elmo?s work, they told him they could not hire him. Jo had written a negative and partly untrue account of his work record.

Elmo started his own business and contacted many of E-Z?s clients. He told them that E-Z was having safety problems, that they could be financially liable for E-Z?s negligence, and that Jo was unstable. Many of E-Z?s customers switch to do business with Elmo.

When Jo discovered what Elmo had done, she was furious. She bought a one-page ad in the local paper that stated that Elmo was a careless businessman whose business was bound to be awful, and who embezzled funds from clients in the past (not true). Elmo then stormed onto E-Z?s property and went into Jo?s office. After calling her a no-good liar, Elmo slapped her.

Legal Environment of Business

  1. Questions that are to be addressed in your essay:
  2. How can E-Z Rid be made responsible for its actions under which administrative agency/agencies and for what cause?
  1. Jo?s letter to Extracto concerning Elmo?s work record was partly true and partly untrue. If Elmo sued Jo and E-Z based on the lies, on what theory would he base his claim?

iii. Jo?s ad asserted that Elmo embezzled funds (untrue) and that Elmo is careless (probably true). If Elmo sues Jo over the ad, what would he be suing for and on what basis?

  1. Elmo?s reaction to Jo?s one-page advertisement may subject him to which legal action(s) by Jo?
  2. Scenario Two: Legal Environment of Business

Lulene makes the best lemon meringue pies in Mississippi. So Ellen, who owns Ellen?s Old Fashion Cafe, had a verbal contract with Lulene to buy 50 pies per week at the price of $5.00 per pie. Lulene said: ?I will supply you with lemon meringue pies for however long you want them at $5.00 per pie.? Ellen said: ?That?s great, I?ll take them.? Both women were pleased.

Soon Lulene had a problem. Between a hurricane in Florida and brush fires in California, the price of lemons increased by 200 percent. Now, instead of the $5.00 per pie price she intended to charge Ellen, she feels she must charge $7.00 per pie to make a little profit.

Lulene calls Ellen with the bad news and Ellen has a fit. She tells Lulene that the deal is off. Lulene says, ?

That?s what you think!? and goes to see Amanda, her attorney.

  1. Questions that are to be addressed in your essay:
  2. What kind of contract did Lulene and Ellen have? What kinds of issues may arise with their contract?
  3. Suppose the Mississippi legislature passes a law, one day after Lulene and Ellen make their contract, that the

sale of lemon pies is prohibited in the state because lemons have been found to cause cancer. How would that

affect the contract?

iii. Assume that when Lulene and Ellen entered into the agreement Ellen was an enterprising 16-year-old. Would the

contract be enforceable? Why or why not?

  1. Instead of meeting to discuss the deal, Lulene had sent Ellen a letter offering to sell her lemon pies for

$5.00 per pie for as long as Ellen likes. Lulene says she must receive Ellen?s answer by May 10. On May 8 Ellen

signs a letter accepting the offer and mails it. On May 9 Lulene calls to withdraw her offer. Ellen says it?s too

late, she has accepted. Who wins and why?

  1. Assume that Ellen doesn?t call the deal off when she is told the price is now $7.00, but wants to hold Lulene

to the deal to supply pies at $5.00. If Lulene fails to supply the pies, and if Ellen then sues her for a breach

of contract, what is Lulene most likely to argue to avoid liability?

  1. Draft a contract between Lulene and Ellen based on the original agreement using legal principles from the text

and other sources. Make it as specific as possible, use assumptions of time limits and so on. Attach it as an

addendum to the essay.

  1. Scenario Three:

Loretta worked for Minute Dry Cleaners as a cashier, and also did ironing when extra help was needed. Soon after

she was hired her boss, John, began to make suggestive comments to her. He complimented Loretta on her clothes and

her looks. Several times, when they were in the store alone, John cornered Loretta and told her that she was

driving him crazy, and that she just had to date him. Loretta told John that she already seeing someone and backed


John cornered her again. He told her that he had waited long enough, and that if she wanted to keep her job she

was going to have to ?put out.? He grabbed her arm, but she got away to the counter. She told John to keep away

from her. He laughed, and asked her what she was going to do. He said he knew she needed the job, because she was

fired from her previous jobs for drug problems. If she didn?t get along with him, he would fire her and tell

people it was because she came to work stoned.

Loretta quit the next day. She filed a complaint against John with the local EEO office. John told EEO he fired

Loretta was because she was drinking on the job. He referred them to Loretta?s past work record, which showed a

drug problem. Loretta insisted that John harassed her and that she had not been drinking while at Minute.

  1. Questions that are to be addressed in your essay:
  2. On what basis can Loretta file a complaint? Explain the legislation that may apply.
  3. What are the steps that Loretta need to take to file a complaint?

iii. If the case does go to court, what would be the likely outcome and why?

  1. Suppose when John found out that Loretta had a drug problem he became furious, because he knows that employees

with drug problems tend to have higher medical costs. Assume that Loretta had a drug addiction in the past but is

not currently using drugs. Could John have fired Loretta for her prior drug problem? Why or why not? Please reference statute(s) or case law to support your opinion.



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