Business Law Section 2.1

Question 1

How many deaths are attributed to alcohol each year?

Answer 1

About 50 deaths per year

Question 2

What is an example of a company that does have to tell the truth about their products?

Answer 2

Pharmaceutical Companies

Question 3

How much arsenic is there in drinking water?

Answer 3

40 parts per million

Question 4

What does the moving of softwood production to Canada tell us about regulations?

Answer 4

Regulations can have unintended consequences.

Question 5

What was the major cause of the housing collapse?

Answer 5

Sub Prime Loans

Question 6

What was the cause of so many sub prime loans being handed out?

Answer 6

Regulation on banks, making them have to give out loans so they don’t discriminate.

Question 7

What is a Sub Prime Loan?

Answer 7

A loan that is greater then then can be repaid.

Question 8

How much profit does Exxon make on the dollar?

Answer 8

8 cents

Question 9

What are retained earnings?

Answer 9

Earnings that the company uses to further its business

Question 10

Who has the highest corporate tax rate and what is the percent?

Answer 10

The U.S. at 35%

Question 11

What are dividends and what is there tax rate?

Answer 11

Dividends are earnings that are paid out to the stock holders and they are taxed at 15%

Question 12

What is chapter 11 bankruptcy?

Answer 12

The company establishes a plan for the repayment of debts

Question 13

What is chapter 7 bankruptcy?

Answer 13

The companies assets are completely liquidated and the proceeds are distributed to the creditors.

Question 14

What happens to a corporation if one of the proprietors dies?

Answer 14

Nothing, unlike a partnership which is dissolved if one of the partners dies, a corporation can continue on indefinitely.

Question 15

What are the details pertaining to the employee theft case in Dixon Illinois?

Answer 15

$50+ million dollars stolen from a city of about 2000

Question 16

If an accounting firm is held liable, what insurance can prefect them?

Answer 16

Errors and Omissions

Question 17

How can you protect your business from an employee who steals?

Answer 17

Buy theft insurance or require workers to be bonded by a surety company

Question 18

What is the downside to theft insurance?

Answer 18

Its pricey

Question 19

What happens when an employee is bonded by a surety company?

Answer 19

A fidelity bond is established to protect your business against theft.

Question 20

What is the downside to an employee being bonded?

Answer 20

They are only bonded based on the assets that they have.

Question 21

How does the supreme court view corporations? And what right does this give them?

Answer 21

Corporations are seen as associations of people – basically a person – and they therefore have the right to free speech.

Question 22

What does the liberal left want to do to corporations in regards to politics?

Answer 22

They want to ban business involvement in politics and create campaign finance laws

Question 23

How are state laws handled when they differ from federal laws?

Answer 23

Federal law always trumps state laws.

Question 24

How does marijuana legalization show how state and federal laws are handled?

Answer 24

While marijuana may be legal in some states, it is still federal illegal and therefore people who buy/sell marijuana may be federally prosecuted.

Question 25

If you are charged with a federal crime where will you be tried? Where will an appeal go?

Answer 25

You will be tried in the federal district court in Missoula. Your appeal will be handled in the federal district court of appeals in your area.

Question 26

What federal district court of appeals does Montana reside in?

Answer 26

District 9 In San Fran

Question 27

What does the NHL lockout demonstrate about labor laws?

Answer 27

That there is a balance between labor laws. While the players can go on strike, the owners can lock the players out

Question 28

If users of the iPhone want to sue apple about the mapping software, how would it be handled?

Answer 28

Victims would be people who bought the iPhone and they would be claiming damages of lost gas money due to faulty mapping software.

Question 29

Who would handle the iPhone lawsuit and what kind of case would it be?

Answer 29

A trial lawyer would handle the case as a class action lawsuit.

Question 30

What is the common name for a class action lawsuit?

Answer 30

A coupon suit because the plaintiffs usually are awarded a coupon if they win the case while trial lawyers get millions.

Question 31

Who would the plaintiffs be in the iPhone suit? Who wouldn’t be included?

Answer 31

Anyone who bought an iPhone would be considered a plaintiff in the iPhone suit unless the OPT OUT.

Question 32

Why would someone opt out of a class action lawsuit? What would the downside me?

Answer 32

Someone who opts out of the class action lawsuit is able to file their own cases, however they get nothing from the class action lawsuit.

Question 33

What is the Burdon of proof for a criminal case?

Answer 33

The Burdon of proof is beyond a reasonable doubt and there must be a unanimous decision by the jury

Question 34

What percent of defendants plead in a criminal case?

Answer 34

97%

Question 35

If Johnson wins the criminal case can the victim still sue in a civil case?

Answer 35

Yes

Question 36

What is the Burdon of proof in a civil case?

Answer 36

Preponderance of the evidence – 51% that he is guilty. Less evidence is needed and only a majority vote of the jury is required.

Question 37

Could the victim sue the UM? Would she win?

Answer 37

Yes she could sue. The case has settlement value.

Question 38

What does it mean when a case has settlement value?

Answer 38

That the defendant will want to settle to avoid going to trial. i.e. UM wanting to settle to avoid bad publicity.

Question 39

What is the biggest business news of the last quarter century?

Answer 39

Bakkan oil field in North Dakota and fraking that could make the U.S. energy independent if it is ever used.