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BUSINESS LAW – BUAD 381
MID-TERM EXAMINATION – OPEN BOOK
Using the book and class discussions, the objective for the student taking
this exam is to use what was learned during class and from the reading
assignments, to answer each question following the IRAC format.
Additionally, the student taking this exam is expected to answer each
question it its entirety, i.e. provide an answer that demonstrates that the
student knows how to fully complete the legal process from beginning to
end. The applicable rule(s) for each question/scenario is in the book
and/or was discussed in class. Each written question is worth 50
points (5 points for IRAC, 10 points for Rule Identification, 20 points
for analysis, 5 points for conclusion, and 10 points for fully
demonstrating the complete legal process in the answer) and True/False
Questions are worth 10 points. The examination is due, type-written,
via email by 9:00 p.m (EST)., Friday, April 15, 2016 @, NO
EXCEPTIONS. 9:01 p.m and after is LATE.
QUESTION NO. 1:
FACTS:
Jerry Maguire is an at-will employee of Sports Management, Inc.
(“SMI”) and represents 100 of the 1500 clients the agency has. Mr.
Maguire authors a publishing that he believes is a “mission
statement” but is considered a “memorandum” suggesting that the
business needs to be “smaller, fewer clients, less money, more
personal attention.” Mr. Maguire is terminated seven days after
presenting the writings to the entire agency. In the seven days
before Mr. Maguire was terminated, Bob Sugar contacted all of Mr.
Maguire’s 100 clients to have the clients terminate Mr. Maguire as
their agent and/or representative and sign with SMI. On the date
that Mr. Maguire was terminated by SMI, he learned that Mr.
Sugar had been in contact with his clients and when he spoke to
each client, 98 of them informed Mr. Maguire that they would stay
with SMI, 1 (Frank Cushman) was unavailable by phone, and 1,
Rod Tidwell, stated he would keep Mr. Maguire as his agent. Mr.
Maguire flies to Texas to Matt Cushman’s house, i.e. Frank’s father,
to meet in person to keep Frank Cushman as a client. When Mr.
Maguire arrived, Matt informed Mr. Maguire that they were
keeping Mr. Maguire as Frank’s agent. Matt informed Mr.
Maguire that he “doesn’t do contracts, but what you have is my
word, and its more solid than oak.” Frank Cushman is the top draft
prospect destined to be the top pick by either San Diego or Denver.
Matt wants Frank to play in Denver. Mr. Maguire attends all the
pre-draft events as Frank’s agent and has begun negotiating with
both San Diego and Denver. Mr. Maguire takes an hour break to
give attention to Mr. Tidwell, who also attended the pre-draft events
for publicity. During the hour break, Mr. Sugar meets with Matt
Cushman and informs him that Denver does not want to work with
Mr. Maguire. Frank Cushman signs a written contract with Mr.
Sugar and SMI. Mr. Maguire learns of the written contract
between Frank and Mr. Sugar and is no longer the agent of Frank
Cushman, who is drafted first overall the next day. You have been
hired to represent the legal interests of Mr. Maguire? What actions
do you take on Mr. Maguire’s behalf? (Note: Breach of Contract,
Intentional Interference with Contract have been discussed in class).
QUESTION NO. 2:
FACTS:
You are the owner and operator of a new electronics store in
Baltimore City. Your grand opening will be Thanksgiving for a preBlack Friday sale. You are selling brand new 70 inch Samsung
televisions for $800.00 and the first 20 of those televisions for
$500.00. Your doors will open at 9pm on Thanksgiving. You have
5 employees working at the store as cashiers and your other 5
employees working that day in other capacities, 2 of whom will open
the doors at 9 pm. At approximately 8 pm, approximately 250
people are standing outside of your store’s entrance.
At
approximately 9 pm, the doors open and people storm your store.
During the storm of people into your store, 3 people are injured.
One person was injured when she fell and was trampled. The
second person was in a wheelchair and was injured when they fell
from their chair and was trampled. The third person was one of
your employees that opened the door and he was trampled when as
soon as he opened the doors, the people that stormed the store
trampled him. All three persons file a lawsuit claiming negligence
and/or gross negligence for the injuries they sustained. Who are
they suing and what will the results be?
QUESTION NO. 3:
FACTS:
You are the owner and operator of a restaurant that stays open 24
hours a day. On Friday night, a group of teenage patrons entered
your restaurant, dined and were disorderly in their conduct towards
other patrons. Your employee, Shelly, the manager, kindly asked
the group of teenage patrons to leave. One teenager, Ashanti,
responded with profanities to Shelly telling her that she was not
leaving and threatened to “kick her ass.” Shelly, responded, “I wish
you would,” at which time, Ashanti physically attacked Shelly by
punching her repeatedly. Ashanti defended herself and got Shelly
off of her and then proceeded to strike Ashanti repeatedly causing
Ashanti to fall back and hit her head awkwardly on the ground,
causing Ashanti to become paralyzed from the waist down. Ashanti
files a lawsuit against Shelly and your company. What are the legal
theories of the lawsuit and what will be the result?
QUESTION NO. 4 (10 points):
TRUE OR FALSE:
If you file a lawsuit against someone for breach of contract and are
successful at trial, you are always guaranteed to have your
attorney’s fees paid.
QUESTION NO. 5 (10 points):
TRUE OR FALSE:
In Maryland’s circuit court, during discovery, you can only make 30
requests for production of documents.
QUESTION NO. 6 (10 points):
TRUE OR FALSE:
In a corporation, the Board of Directors is required to follow the
Articles of Incorporation.
QUESTION NO. 7 (10 points):
TRUE OR FALSE:
The State of Maryland is part of the U.S. Court of Appeals’ Fourth
Circuit.
QUESTION NO. 8 (10 points):
TRUE OR FALSE:
The State of Maryland is part of the U.S. Court of Appeals’ Fourth
Circuit.
QUESTION NO. 9 (10 points):
TRUE OR FALSE:
Rescission is the voiding of an offer before acceptance.
QUESTION NO. 10 (10 points):
TRUE OR FALSE:
The purpose of discovery is to give the parties a chance to settle the
case before trial.

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