(TCO 7) Todd and Yolanda Robinson are selling their house. One of reasons they are selling their house is that they have noticed that a large crack is developing in their foundation. Their basement also floods when it rains. They have decided to sell the home themselves and not hire a real estate agent. They are concerned that if a prospective buyer walks through the basement and sees the crack, they will begin asking questions about flooding and then not purchase the house. So, they decided to put a large cabinet in front of the crack in the basement so that it will not be visible when buyers walk through the basement and they tell prospective buyers that the cabinet stays with the house. They receive a favorable offer and sell the home. Two months later there is a heavy rain in their community which caused a bridge to wash out. Three months after this, the Robinsons get a letter from an attorney who represents the buyers. The letter states that the buyers intend to sue the Robinsons.
Were the actions of the Robinsons fraudulent? Was the failure to disclose the crack in the foundation a material fact in the transaction? Identify all elements of fraudulent misrepresentation and whether it applies in this situation. (Points : 50)
Question 2. 2. (TCO 8) What are some of the criticisms about the North American Free Trade Agreement (NAFTA)? (Points : 25)
Question 3. 3. (TCO 5) Define insider trading under Section 10(b) of the Securities and Exchange Act of 1934, and provide an example. You should create your own hypothetical example, and not cite to actual examples such as the Martha Stewart case. (Points : 25)
Question 4. 4. (TCO 4) Ray Johnson and his son, David, were waiting for a “walk” sign before crossing a street. A truck owned by Newspaper Agency Corp. (NAC) and operated by its employee Mark Wilson, crossed the intersection and jumped the curb, killing David and injuring Ray. Before reporting for work on the evening of the accident, Wilson had consumed seven mixed drinks containing vodka and a 27-ounce drink containing two mini bottles of tequila. His blood alcohol content after the accident was 0.18 percent. Evidence showed that use of drugs and alcohol was widespread at NAC and the company made no effort to stop its use. NAC vehicles had been returned at the end of a shift with beer cans on more than one occasion. Further, evidence showed that a NAC supervisor had seen drivers smoking marijuana at the business and told them to “do it on the road.”
Ray Johnson sued NAC for wrongful death and for his physical injuries. Is NAC liable for Mark Wilson’s actions? Why or why not? What legal concepts are implicated in these facts? (Points : 50)
Question 5. 5. (TCO 1) The city of Anytown, Florida, enacts a city zoning ordinance that prohibits outdoor advertising display signs, which includes neon signs and billboards, because it is concerned about traffic safety and aesthetics. A local business, Billboards R Us, believes that this ordinance is unconstitutional in that it violates the First Amendment protection of commercial speech. Billboards R Us sues the city of Anytown alleging that the zoning ordinance is unconstitutional.
What is commercial speech? What parameters has the Supreme Court placed on commercial speech? Based on the definition of commercial speech, analyze whether this zoning ordinance would be considered constitutional. If it is unconstitutional, can the city place any restrictions on commercial speech? (Points : 25)
Question 6. 6. (TCO 8) Anita Rodriguez registers multiple domain names resembling the names of famous personalities and companies to gather attention to her personal business. Under the circumstances, can the Anticybersquatting Consumer Protection Act (ACPA) statute be applied? What are the requirements for its application? (Points : 25)
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