Cal Poly BUS 404 Wroldsen midterm
& final Exam Questions and Answers
Employee vs independent contractor: Microsoft example - --10,000 software
testers and technical writers working as independent contractors but had
same supervisors as employees and some only worked for Microsoft
-won $$$ bc wrongly classified
-Deception - Williams v. Gerber example - -Misleading/ deceptive
packaging?
- District court says no, appeals court says yes
-Deception- Tudor v. Jewel example - -Grocery scanners price differs from
listed and advertised price. Receipt provided, money -back guarantee
1. deceptive or unfair practice?
- Scanner right 90% of the time
2. Intend for plaintiff to rely?
-receipt issued and money back guarantee
-Deception rule - -1. Deceptive or unfair practice
2. defendant intended that plaintiff rely on the deception
-Consumer protection- Kraft Singles example - -"five ounces of milk"
campaign
- but 30% of calcium dissipates
Likely to mislead? Yes
Material? Yes
FTC made Kraft change the commercial
-Consumer Protection Defenses - Puffery - -1. expressions of opinion vs.
objective, verifiable facts (consumers should exercise reasonable judgement)
2. Opinions from experts treated differently (do consumers share in the
expertise?)
-Consumer protection - Vitt v. Apple example - -Laptop advertised as
"mobile, durable, rugged, and built to withstand reasonable shock" but
breaks after 1 year
- Vitt's case: a reasonable consumer expects a computer to last more than
one year
- False or likely to mislead ?
- Material? Yes
Judge: "inherently vague and generalized terms, not factual standard" vs.
"factual representations that a given standard has been met". Judge says
first so
, -Apple is off the hook
-Dirks as tippee ? - -1. Secrist breached a fiduciary duty? No
2. Secrist receive benefit? No
3. Can't be liable is tipper is not
-WWE example - -Employment Law
WWE classified wrestlers as independent contractors but have contracts &
arrangements that suggest employees:
A - free from control and direction (scheduling, etc.) ?
B - perform work outside scope of WWE?
C - wrestle outside of WWE?
Gotten out of it bc Connecticut laws
-Employee vs. Independent Contractor (benefits/taxes) - -Employee:
-employer pays social security, medicare, payroll taxes, unemployment
insurance, workers comp, benefits (health insurance, 401k, etc.)
-W2
Independent contractor:
-worker pays all costs
-1099 (tax form)
consequences for misclassification:
-workers recoup benefits (including minimum and overtime wages)
-gov recoups taxes (plus audit)
-non-compete analysis - --must be part of another agreement
-must include consideration
-reasonable on:
1. Activity
2. Geography
3. Time
-Schools of Legal Thought - -Natural law, Positive law, Historical Approach,
Legal Realism
-Natural Law - -School of legal thought- initial form of law, universal truths/
morals that all people know
Step 1: establish the moral law
Step 2: Relate it to the argument
-Positive Law - -School of legal thought - Written law is the only thing that
matters. If no law is written about the subject, it is not illegal
-Historical Approach - -School of legal thought - Using history to learn
lessons about the results
& final Exam Questions and Answers
Employee vs independent contractor: Microsoft example - --10,000 software
testers and technical writers working as independent contractors but had
same supervisors as employees and some only worked for Microsoft
-won $$$ bc wrongly classified
-Deception - Williams v. Gerber example - -Misleading/ deceptive
packaging?
- District court says no, appeals court says yes
-Deception- Tudor v. Jewel example - -Grocery scanners price differs from
listed and advertised price. Receipt provided, money -back guarantee
1. deceptive or unfair practice?
- Scanner right 90% of the time
2. Intend for plaintiff to rely?
-receipt issued and money back guarantee
-Deception rule - -1. Deceptive or unfair practice
2. defendant intended that plaintiff rely on the deception
-Consumer protection- Kraft Singles example - -"five ounces of milk"
campaign
- but 30% of calcium dissipates
Likely to mislead? Yes
Material? Yes
FTC made Kraft change the commercial
-Consumer Protection Defenses - Puffery - -1. expressions of opinion vs.
objective, verifiable facts (consumers should exercise reasonable judgement)
2. Opinions from experts treated differently (do consumers share in the
expertise?)
-Consumer protection - Vitt v. Apple example - -Laptop advertised as
"mobile, durable, rugged, and built to withstand reasonable shock" but
breaks after 1 year
- Vitt's case: a reasonable consumer expects a computer to last more than
one year
- False or likely to mislead ?
- Material? Yes
Judge: "inherently vague and generalized terms, not factual standard" vs.
"factual representations that a given standard has been met". Judge says
first so
, -Apple is off the hook
-Dirks as tippee ? - -1. Secrist breached a fiduciary duty? No
2. Secrist receive benefit? No
3. Can't be liable is tipper is not
-WWE example - -Employment Law
WWE classified wrestlers as independent contractors but have contracts &
arrangements that suggest employees:
A - free from control and direction (scheduling, etc.) ?
B - perform work outside scope of WWE?
C - wrestle outside of WWE?
Gotten out of it bc Connecticut laws
-Employee vs. Independent Contractor (benefits/taxes) - -Employee:
-employer pays social security, medicare, payroll taxes, unemployment
insurance, workers comp, benefits (health insurance, 401k, etc.)
-W2
Independent contractor:
-worker pays all costs
-1099 (tax form)
consequences for misclassification:
-workers recoup benefits (including minimum and overtime wages)
-gov recoups taxes (plus audit)
-non-compete analysis - --must be part of another agreement
-must include consideration
-reasonable on:
1. Activity
2. Geography
3. Time
-Schools of Legal Thought - -Natural law, Positive law, Historical Approach,
Legal Realism
-Natural Law - -School of legal thought- initial form of law, universal truths/
morals that all people know
Step 1: establish the moral law
Step 2: Relate it to the argument
-Positive Law - -School of legal thought - Written law is the only thing that
matters. If no law is written about the subject, it is not illegal
-Historical Approach - -School of legal thought - Using history to learn
lessons about the results
