Legal Environment of Business I

Legal Environment of Business I
Short Writing Assignment Three
Professor Less
Fall, 2020

Discuss the concept of a “material fact” in fraud situations.


A man named George Thomas believes that he is Santa Claus. He is not Santa, but he has believed this for many years and signs his name “Santa” and refers to his wife as “Mrs. Claus” even though her name is Elizabeth Thomas. She puts up with it, because he really does believe he is Santa, she loves him and his wages from his job at Hasbro pay the bills. One day he enters a contract with your company to build him a gigantic workshop in his backyard so he can build his toys and house his reindeer. In return he will pay you $120,000 for the construction. When his wife learns of this deal, she tries to reject it. Is this contract valid and enforceable? Why or why not? Fully explain your answer.


In a telephone conversation with a sales representative of a textbook company, the manager of a bookstore ordered $1,000 worth of textbooks. Following the conversation, the manager of the bookstore wrote a memo to her file documenting the agreement, initialed it, and sent a copy to the sales representative. A dispute arose between the parties and the textbook company sued the bookstore. Does the Statute of Frauds create a defense to the lawsuit against the bookstore? Why or why not? Now suppose the textbook company breached the contract, instead of the bookstore—does the Statute of Frauds create a defense to the lawsuit against the textbook company? Why or why not?


Tiffany is a fairly new employee at Oxtron, Inc., assigned to the sales department. Oxtron is a national company with offices across the United States. The office Tiffany works in has had low sales numbers for the last twelve months compared to other Oxtron offices. One day, her boss takes all the sales representatives aside and asks that they “pad” (increase) their sales numbers. Most employees agree to do so in order to achieve comparable numbers compared to competing company offices. Tiffany refuses to pad her reports and is fired. She is not covered by an employment contract and wishes to sue for wrongful termination. Does Tiffany have a legitimate claim for wrongful termination, and, if so, on what basis.


Explain the purpose behind the Fair Labor Standards Act and its main provisions.


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