1. Explain the function and purpose of an administrative agency. At what level of government do we find agencies, and how and by whom or what are they empowered to do what they do?
2. Smart Corporation began marketing phone in 2002 under the mark "Smart." In 2008, Smart.com, Inc., a different company selling different products, such as school supplies and the like, begins using "smart" as part of its website URL and registers "sMART" as its domain name. Can Smart Corporation stop this use of "sMART"? If so, what must the company show? Use the scenario given to explain your answer in this context.
3. What are the four principal types of Electronic Fund Transfer (EFT) systems today? Distinguish between the four types of electronic funds transfer systems used by banks. When is an electronic transaction binding under the Uniform Electronic Transactions Act? Using a real-life example, distinguish the liability of the bank, the customer and the payee in an electronic transfer of funds situation.
4. Sue owns as company called Tons of Toys, Inc. (TOT). TOT, has just a few employees, including Lori, Sue's personal assistant. Due to Sue's extensive travel requirements to market her company, Lori has the authority in her absence to keep things running. On Sue's latest trip, Lori without consulting Sue or having the proper authority, represents herself as Sue and signs a promissory note in Sue's name. Will Sue be liable on the note? If so, under what circumstances? If not, why not? Explain in your answer in the context of this scenario as it relates to authority from an agency standpoint.
5. What are the main features of a traditional corporation? What are the main features of a Limited Liability Company? What are the similarities and differences we can look to when trying to determine which entity will best suit our needs in a given situation? In the context of entity selection, discuss the main features of these two entities and compare the liability that a corporation would be exposed to as it relates to shareholders/owners of a corporation as opposed to the members of a limited liability company (LLC). Would your choice change if the situation involved an act of fraud? Why or why not?