Business Law
1.The state of Alabama enacted a statute that imposed a tax on premiums earned byinsurance companies. The statute imposed a 1 percent tax on domestic insurancecompanies (i.e., insurance companies that were incorporated in Alabama and hadtheir principal office in the state). The statute imposed a 4 percent tax onthe premiums earned by out-of-state insurance companies that sold insurance inAlabama. Out-of-state insurance companies could reduce the premium tax by 1percent by investing at least 10 percent of their assets in Alabama. Domesticinsurance companies did not have to invest any of their assets in Alabama.Metropolitan Life Insurance Company, an out-of-state insurance company,sued the state of Alabama, alleging that the Alabama statute violated the EqualProtection Clause of the U.S. Constitution. Who wins and why?
2.Intex Recreation Corporation designed and sold the Extreme Sno-Tube II. Thissnow tube is ridden by a user down snow-covered hills and can reach speeds of30 miles per hour. The snow tube has no steering device, and therefore a ridermay end up spinning and going down a hill backward. Dan Falkner bought anExtreme Sno-Tube II and used it for sledding the same day. During Falknerssecond run, the tube rotated him backward about one-quarter to one-third of theway down the hill. A group of parents, including Tom Higgins, stood near thebottom of the hill. Higgins saw 7-year-old Kyle Potter walking in the path ofFalkners speeding Sno-Tube. Higgins ran and grabbed Potter to save him fromharm, but while he was doing so, the Sno-Tube hit Higgins and threw him intothe air. Higgins landed on his forehead, which snapped his head back. Theimpact severed Higginss spinal cord and left him quadriplegic. Higgins suedIntex for damages based on strict liability. Is the snow tube defective?
3.Joseph Burger was the owner of a junkyard in Brooklyn, New York. His businessconsisted, in part, of dismantling automobiles and selling their parts. Thestate of New York enacted a statute that requires automobile junkyards to keepcertain records. The statute authorizes warrantless searches of vehicledismantlers and automobile junkyards without prior notice. One day, fiveplain-clothes officers of the Auto Crimes Division of the New York City Police Departmententered Burgers junkyard to conduct a surprise inspection. Burger did not haveeither a license to conduct the business or records of the automobiles andvehicle parts on his premises, as required by state law. After conducting aninspection of the premises, the officers determined that Burger was inpossession of stolen vehicles and parts. He was arrested and charged withcriminal possession of stolen property. Burger moved to suppress the evidence.Did Burger act ethically in trying to suppress the evidence? Does thewarrantless search of an automobile junkyard pursuant to a state statute thatauthorizes such a search constitute an unreasonable search and seizure inviolation of the Fourth Amendment to the U.S. Constitution?
4.James W. Newton, Jr., is an accomplished avant-garde jazz composer and flutist.Newton wrote a composition for the song Choir, a piece for flute and voicethat incorporated elements of African American gospel music. Newton owns thecopyright to the composition Choir. The Beastie Boys, a rap and hip-hopgroup, used six seconds of Newtons Choir composition in their song Pass theMic without obtaining a license from Newton to do so. Newton sued the BeastieBoys for copyright infringement. The Beastie Boys defended, arguing that theiruse of six seconds of Newtons song was de minimis and therefore fair use. Doesthe incorporation of a short segment of a copyrighted musical composition intoa new musical recording constitute fair use, or is it copyright infringement?
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