Business Law Exam

1) The New City council recently passed an ordinance revising the hiring criteria for public transportation workers. The criteria apply to those who operate and maintain public transportation equipment, but not to those on the City's Public Transportation Board, which sets policy for the transit system. One criterion is that transportation employees be United States citizens. The council defended the citizenship requirement as serving the city's interest in having workers of undivided loyalty.

Mark Sheehan, a permanent resident of the United States, sued New City on the constitutionality of the new ordinance. What is the likely outcome?

2) A local entertainment section of a newspaper published a story on the town's business district, accompanied by photos of various businesses in the district. A minister who happened to be walking on the sidewalk in front of an adult bookstore when a photo was taken for the story became very upset when he saw it in the newspaper, because the camera angle made it appear that he was exiting the bookstore.

If the minister sues the newspaper, what is the best legal basis (cause of action) to win the case?

3) A 12-year-old boy went to the beach by himself. To his overwhelming excitement, he went to the water with no warming-up exercise, and it left him with cardiac arrest right in the water. A man walking by the boy noticed that the boy was drowning. As much as the man wished to help out him out of the water, which he knew that he could have saved the boy's life, he decided not to do so because he did not want to be late for his work. Later that day, the boy died, and his parents sue the man for wrongful death. What is the likely outcome?

4) A man mailed a letter to a woman promising to sell her his motorcycle for $1,000. After receiving the letter, the woman sent the man a fax that stated, "The price is little high, I will give you $800." The man responded by fax, "I will not accept $800." The next day, the woman telephoned the man and said, "I changed my mind, I will pay $1,000 for the motorcycle." The man refused to sell the woman his motorcycle.

If the woman sues the man for breach of contract, what would be the likely outcome?

5) A soldier has just been discharged. His aunt, who lives on the other side of the country, suggests that he move to her area. "There are plenty of jobs for a dependable young man like you, and you could stay with me until you get on your feet," she says. The solider thinks it over for a few days, and decides to move to his aunt's state. He arrives at her house, and says he will be staying with her. The aunt tells him that she will be unable to put him up.

Has the aunt breached a contract with the solider? Why or why not?

Extra Credit Question

Ken, a research chemist, has been promised a fellowship with a stipend of $10,000 to do research on synthetic fuel oil. Under the terms of the fellowship, Ken is free to use the money as he sees fit. Ken decides to build his own laboratory, so he will not have to rent one. He hires a carpenter who begins working on shelving and cabinets in the laboratory. Then Ken receives a telegram saying the fellowship has been canceled. No reason is given for the cancellation. If Ken sues, will he be able to collect the money from the foundation which promised the fellowship? Explain your answer using legal analysis.