Jorge’s Appliance Corp. was a new
retail seller of appliances in Sunrise City. Because of its inno- vative sales techniques and financing, Jorge’s attracted many
customers. As a result, the appliance department of No-Glow Department Store, a large chain store with a great deal of buy- ing power, lost a substantial number of sales. No-Glow told
a number of appliance manufacturers from whom it made
large-volume purchases that if they continued to sell to Jorge’s, No-Glow would stop buying from them. The manufacturers immediately stopped selling appliances to Jorge’s. Jorge’s filed a suit against No-Glow and the manufacturers, claiming that their actions constituted an antitrust violation. No-Glow and the manufacturers were able to prove that Jorge’s was a small retailer with a small market share. They claimed that because the relevant market was not substantially affected, they were not guilty of restraint of trade. Discuss fully whether there was an antitrust violation.

For many years, New York City has had to deal with the vandalism and defacement of public property caused by unauthorized graf- fiti. In an effort to stop the damage, the city banned the sale of aerosol spray-paint cans and broad-tipped indelible markers to persons under twenty-one years of age. The new rules also prohibited people from possessing these items on property other than their own. Within a year, five people under age twenty-one were cited for violations of these regulations, and 871 individuals were arrested for actually making grafiti. Lindsey Vincenty and other artists wished to create graf- fiti on legal surfaces, such as canvas, wood, and clothing. Unable to buy supplies in the city or to carry them into the city from elsewhere, Vincenty and others filed a lawsuit on behalf of themselves and other young artists against Michael Bloomberg, the city’s mayor, and others. The plaintifis claimed that, among other things, the new rules violated their right to freedom of speech.

(c) A third group will argue that the city’s ban violates the equal protection clause because it applies only to persons under age twenty-one.

Patricia Garcia and Bernardo Lucero were in a romantic relationship. While they were seeing each other, Garcia and Lucero acquired an electronics service center, paying $30,000 apiece. Two years later, they purchased an apartment complex. The property was deeded to Lucero, but neither Garcia nor Lucero made a down payment. The couple considered both properties to be owned “50/50,” and they agreed to share profits, losses, and management rights. When the couple’s romantic relationship ended, Garcia asked a court to declare that she had a partnership with Lucero. In court, Lucero argued that the couple did not have a written partnership agreement. Did they have a partnership? Why or why not? [Garcia v. Lucero, 366 S.W.3d 275 (Tex. App. 2012)]

Patricia Garcia and Bernardo Lucero were in a romantic relationship. While they were seeing each other, Garcia and Lucero acquired an electronics service center, paying $30,000 apiece. Two years later, they purchased an apartment complex. The property was deeded to Lucero, but neither Garcia nor Lucero made a down payment. The couple considered both properties to be owned$"50/50,"$ and they agreed to share profits, losses, and management rights. When the couple's romantic relationship ended, Garcia asked a court to declare that she had a partnership with Lucero. In court, Lucero argued that the couple did not have a written partnership agreement. Did they have a partnership? Why or why not? (See Formation and Operation.)

J.C., Inc., had a franchise agreement with McDonald's Corp. to operate McDonald's restaurants in Lancaster, Ohio. The agreement required J.C. to make monthly payments of certain percentages of gross sales to McDonald's. If any payment was more than thirty days late, McDonald's had the right to terminate the franchise. The agreement also stated that even if McDonald's accepted a late payment, that would not "constitute a waiver of any subsequent breach." From time to time, McDonald's accepted J.C.'s late payments, but when J.C. defaulted on one particular payment, McDonald's gave notice of thirty days to comply or surrender possession of the restaurants. J.C. missed the deadline. McDonald's demanded that J.C. vacate the restaurants, but J.C. refused. McDonald's alleged that J.C. had violated the franchise agreement. J.C. claimed that McDonald's had breached the implied covenant of good faith and fair dealing. Which party should prevail, and why ?

Maria, Pablo, and Vicky are recent college graduates who would like to go into business for themselves. They are considering purchasing a franchise. If they enter into a franchising arrangement, they would have the support of a large company that could answer any questions they might have. Also, a firm that has been in business for many years would be experienced in dealing with some of the problems that novice businesspersons might encounter. These and other attributes of franchises can lessen some of the risks of the marketplace. What other aspects of franchising-positive and negative-should Maria, Pablo, and Vicky consider before committing themselves to a particular franchise ?

Basic Research, L.L.C., advertised its products on television networks owned by Rainbow Media Holdings, Inc., through an ad agency, Icebox Advertising, Inc. As Basic’s agent, Icebox had the express authority to buy ads from Rainbow on Basic’s behalf, but the authority was limited to buying ads with cash in advance. Despite this limit, Rainbow sold ads to Basic through Icebox on credit. Basic paid Icebox for the ads, but Icebox did not pass all of the payments on to Rainbow. Icebox led for bankruptcy. Can Rainbow recoup the unpaid amounts from Basic? Explain.

Thomas Huskin and his wife entered into a contract to have their home remodeled by House Medic Handyman Service. Todd Hall signed the contract as an authorized representative of House Medic. It turned out that House Medic was a fictitious name for Hall Hauling, Ltd. The contract did not indicate this, however, and Hall did not inform the Huskins about Hall Hauling. When a contract dispute later arose, the Huskins sued Todd Hall personally for breach of contract. Can Hall be held personally liable? Why or why not?(See Liability for Contracts.)

A condominium complex was purchased by a group of private investors for $1.4 million and sold 6 years later for$3.6 million. Find the annual rate of return (compounded continuously) on their investment.

For the following service department, select the activity base listed that is most appropriate for charging service expenses to responsible units.

A department store has two locations in a city. From 2004 through 2008, the profits for each of the store’s two branches are modeled by the functions

$$f ( x ) = - 0.44 x + 13.62$$

and

$$g ( x ) = 0.51 x + 11.14$$

. In each model, x represents the number of years after 2004, and f and g represent the profit, in millions of dollars. Find f + g, What is the slope of this function? What does this mean?

Select the best answer the multiple-choice question below.

Department B is the second stage of Boswell Corporation’s production cycle. On November 1, beginning work in process contained 50,000 units, which were 30 percent complete as to conversion costs. During November, 320,000 units were transferred in from the first stage of the production cycle. On November 30, ending work in process contained 40,000 units, which were 65 percent complete as to conversion costs. Materials are added at the end of the process. Using the weighted-average method, the equivalent units produced during November were shown below:

For the following service department, select the activity base listed that is most appropriate for charging service expenses to responsible units.

The quality-control department at a sewing machine factory has determined that 1 out of 40 machines does not pass inspection. Let X be the number of machines on an assembly line that passes inspection before a machine is found that fails inspection.

(a) Write the formula for Pr(X=n).

(b) What is the probability that, of five machines coming off the assembly line, the first four pass inspection and the fifth does not?