A state legislature enacts a statute that prohibits the ...



Business Law 201 spring 2009

Professor Isler

Assignment 1

Directions: Read the question carefully and answer only what is asked. No points will be awarded for extraneous discussion. You may assume that jurisdiction and venue are proper, and focus exclusively on the question asked. Please also note the following:

1. This assignment may not exceed three pages;

2. The assignment must be typed;

3. The assignment is due at the start of class on Wednesday, February 4, 2009;

4. The assignment may not be e-mailed to me or the TA;

5. The assignment is worth 2.5 points; and

6. This assignment may not exceed three pages, the assignment must be typed, the assignment is due at the start of class on Wednesday, February 4, 2009, the assignment may not be e-mailed to me or the TA, and the assignment is worth 2.5 points

Question 1

Ace Trucking Corporation files a suit in a state court against Bob's Service Company (BSC), and wins. BSC appeals the court's decision, asserting that the evidence presented at trial to support Ace's claim was so scanty that no reasonable jury could have found for the plaintiff. Therefore, argues BSC, the appellate court should reverse the trial court's decision. May an appellate court ever reverse a trial court's findings with respect to questions of fact?

Question 2

In a lawsuit between Digital Sales Corporation and Engineering Associates, Inc., the court applies the doctrine of stare decisis. What is this doctrine? What does this doctrine have to do with the American legal system?

Question 3

A state legislature enacts a statute that prohibits the advertising of video games "because the games might be harmful to minors." Despite this new statute, the president of Games Marketing, Inc. (GMI), orders GMI marketers to place ads in any media. When a GMI ad appears on HDTV, a local television station, GMI and HDTV are charged with violating the statute. What is the defendants' best defense against a conviction?

Assignment #1 Sample Answer 1

An appellate court will reverse a lower court's decision on the basis of the facts only when the finding is clearly erroneous (that is, when it is contrary to the evidence presented at trial) or when there is no evidence to support the finding. Appellate courts normally defer to a judge's decision with regard to the facts of a case, however, for a number of reasons. First, trial judges routinely sit as fact finders. As a result, they develop a particular expertise in determining what kind of evidence and testimony is reliable and what kind is not. Second, trial judges and juries have the opportunity to observe witnesses and tangible evidence first hand. The appellate court sees only a cold record of the trial court proceedings and therefore cannot make the kind of judgments about the credibility of witnesses and the persuasiveness of evidence that can be gleaned only from first-hand experience.

Assignment #1 Sample Answer 2

In a common law legal system, past judicial decisions are binding in current disputes with similar facts. This feature of the common law, which is the basis of the American legal system, is unique because, unlike the law in other legal systems, it is judge-made law. Within the common law system, when possible, judges attempt to be consistent and to base their decisions on the principles suggested by earlier cases. The body of principles and doctrines that form the common law emerged over time as judges applied the principles announced in earlier cases to subsequent legal controversies. The practice of deciding cases with reference to former decisions, or precedents-the cornerstone of the American legal system-is called the doctrine of stare decisis. Under this doctrine, judges are obligated to follow the precedents established within their jurisdictions. This helps courts to be more efficient, and makes the law more stable and predictable.

Assignment #1 Sample Answer 3

GMI and HDTV cannot be convicted because a state legislature cannot enact a statute that restricts commercial speech (in this problem, marketing video games) to this extent. The First Amendment protects commercial speech. Commercial speech is not as protected as much as noncommercial speech, however, so states can place some restraints on the former. For example, to protect consumers, a state may ban certain kinds of marketing practices, such as deceptive or misleading advertising. Generally, a restriction on commercial speech will be considered valid as long as it (1) seeks to implement a substantial government interest, (2) directly advances that interest, and (3) goes no further than necessary to accomplish the objective. Here, the complete ban on video ads "because the games might be harmful to minors" is too restrictive: it goes too far in attempting to protect minors for an apparently unsubstantiated purpose.

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