IHI 96.doc


Question 1
In the “old days” in Orlando, Florida, a real estate agent began to make some very nice offers to buy local orange growers’ and farmers’ land. The agent did not disclose the fact that her principal was the Walt Disney Company. Yet she secretly was working as an agent for the Walt Disney Company which was afraid of skyrocketing prices if the “word got out” that Disney was the buyer. When the farmers discovered that the agent was working for Disney, and that they had sold their land to Disney, they claimed the contracts they made were invalid due to the fact that Disney, the principal, was undisclosed. The likely result of any legal dispute among the parties will be:
The agent is liable on the contracts.
Disney can enforce the contracts even those it was not disclosed as the principal.
The farmers are liable on the contracts assuming that the agent did not fraudulently misrepresent that she was acting alone and that Disney was not her principal.
All of the above are likely results.
Question 2
Marcus, an entrepreneur, has developed an excellent business plan for a proposed business. He wants to show it to some venture capitalists with the hope that they will invest in the venture, but he is concerned about protecting his business plan from appropriation and wants to protect it as a legal trade secret. Can the business plan be protected as a trade secret?
No, because it cannot be kept secret since Marcus obviously has to show it to people.
No, because it does not have actual worth, rather only potential worth since it is a proposed business.
No, because it contains only “soft” information, such as ideas, concepts, strategies, and plans, and not “hard” scientific information, such as formulas.
Yes if Marcus takes reasonable efforts to keep the plan secret such as putting a confidentiality notice and warning on the plan.
Question 3
The state of Mississippi passes a law that prohibits waste hauling companies from bringing out-of-state garbage to dumps located in Mississippi. Mississippi garbage would still be permitted. This law is challenged as unconstitutional by an out-of-state waste hauling company that plans to bring garbage from another state into Mississippi for dumping. The likely result of such a lawsuit would be?
The Mississippi law would be upheld as part of the power of the state to protect its citizens and residents from unpleasant sights and smells.
The Mississippi law would be struck down as unconstitutional because it discriminates against interstate commerce.
The Mississippi law would be struck down because only the federal government and the Environmental Protection Agency can regulate garbage transportation and dumping.
The Mississippi law would be upheld since transportation of garbage is not really “commerce.”
Question 4
Pursuant to U.S. statutory immigration law, immigrant visas can be granted to immigrants who possess “extraordinary” knowledge, abilities, and talents since they will benefit the United States. Idi Obuku is a drum-maker from Uganda who specializes in making native drums and other local cultural artifacts. He is denied an immigrant visa by the Immigration Division of Homeland Security after an administrative hearing because he was not deemed to be sufficiently “extraordinary.” He appeals the agency’s decision to the federal court. The result of this lawsuit likely will be:
Idi Obuku will win since all immigration determinations have to be made after a trial in federal district court.
He will lose because he is from Africa.
He will lose because there is no right to appeal immigration decisions now that Immigration is part of Homeland Security.
He will win if he can convince the federal court to substitute its interpretation and application of the law for that of the agency.
Question 5
Applying Aristotle’s Doctrine of the Mean to corporate social responsibility, one can best say that:
A company should give generously to local charities or else it will get a reputation in the community for being mean.
A company need not get involved in civic and community affairs and give to charities unless legally obligated to do so.
A company should focus on profit first but also do “good deeds” in the community but in a prudent manner.
A company should require its employees to donate their own money and time to charities but make sure that the company gains the good reputation from their efforts.
Question 6
In the old, American, pre-Civil War South, slavery ethically could be considered:
a. Moral if one was a Legal Positivist.
b. Moral if one was an Ethical Relativist
c. Immoral if one was a Kantian
d. All of the above.