read the scenario below and answer the questions that follows
Subject: Business / Management
Question
1)
Mark is a college student who works as a driver for the driver service, Uber. Mark gets paid $12 an hour for the hours he drives his car for Uber. Sometimes Mark drives as much as 50 hours in a week for Uber, and other times he drives only 20 hours in a week for Uber. Uber must approve the hours that Mark will drive in a week and sets the prices its drivers may charge customers. Uber’s website advertises for drivers, stating that “Uber Needs Partners Like You. Drive with Uber and earn great money as an independent contractor.” While Mark is driving a passenger in his car for Uber, he drives too fast, loses control of his car and has an accident severely injuring his passenger, Alek. Alek plans to sue the Mark for his negligent driving and is seeking $10,000,000 in damages for his injuries, which include broken arm, two broken legs, and a spinal injury that has left him paralyzed. Mark has insurance coverage in the amount of $500,000. Mark notifies Uber of the accident. The Director of Loss Management asks you to advise her of Uber’s risk should Alek file a lawsuit against Uber seeking damages from Uber as a result of Mark’s accident. Explain the legal risks to Uber in this scenario, discussing in detail the legal principles involved in your analysis. Set forth the facts you need to know to help you analyze Uber’s risk.
2)
Reacting to the massive recall of the potentially contaminated eggs from major egg producers in Iowa, the California legislature passed a law prohibiting the sale of eggs within the state of California that are not obtained from egg laying chickens raised and caged in accordance with “humane standards” set by the California Department of Agriculture. Total Eggs is a major egg producer in the state of Iowa selling close to two billion eggs annually throughout United States. Total Eggs does not meet the standards passed by the California Department of Agriculture, and has recently been cited by federal health inspectors for violations of federal sanitation standards. 40% of Total Eggs' sales are to purchasers within California. Total Eggs claims it will lose millions of dollars in profits and its business will be substantially harmed by the California legislation. Total Egg claims that the California law is designed to protect California egg producers from out-state competition. Total Eggs has filed a lawsuit in the federal district court in California seeking to have the California law declared void as both a violation of the dormant Commerce Clause and the Equal Protection Clause. You are the judge. How do you decide? Thoroughly explain your answer.
3)
Parker Papillon operates a textile mill in Savannah, Georgia. Papillon has a contract to deliver specialty cotton cloth to Lindenwood Fashions, a high end clothing manufacturer. Delivery of the cloth is due by October 15, 2011. Papillon purchases most of his raw cotton from two cotton farmers in Texas. Almost 50% of all the cotton grown in the U.S. is grown in Texas. For the past 2 years Texas has suffered a terrible drought which ruined the cotton crop in that state. Although other cotton producing areas in the U.S. have not been affected by the drought, more than 80% of the cotton crop in Texas has been devastated by the drought. As a result of the drought, Papillon's suppliers notified him on June 21, 2011 that they would be unable to honor their contracts with him, leaving Papillon without a supply of cotton to manufacture the cotton cloth needed for him to honor his contract with Lindenwood Fashion. On August 15, 2011, Papillon notified called Lindenwood Fashions that he would not be able to deliver the specialty cotton cloth because of the drought in Texas. Lindenwood Fashions told Papillon that it needed the specialty fabric to fulfill its requirements on numerous contracts Lindenwood Fashions had with major designers. Lindenwood Fashions demanded Papillon to honor the contract. Papillon did not deliver the specialty cotton cloth by the required date. Lindenwood Fashions made no plans to obtain an alternative supply of cloth and sued Papillon for breach of contract. Lindenwood argues that Papillon could have sought other sources for cotton and honored its contract. Papillon argues that the situation in Texas was desperate leaving it with few options and that Lindenwood Fashions could have tried to locate other suppliers of specialty cloth to meet its needs. The case is tried before you. How would you decide the case? Explain your answer using the contract principles discussed in class.
4)
College Java, Inc. operates a chain of coffee shops called Java Brothers. Chandler is the regional manager for Java Brothers and oversees all of its coffee shops located in metropolitan St. Louis area. Joey is the manager of the Java Brothers location in St. Charles and is responsible for all decisions relating to hiring, firing and scheduling employees at the St. Charles location. Ross works at the St. Charles location a barista, as does Rachel, who works as a waitress taking orders and waiting tables. Rachel places her orders with Ross, who fills the orders and announces when the order is ready. Rachel accuses Ross of sexually harassing her by making lewd and vulgar remarks in her presence. Rachel claims Ross has grabbed her and touched her inappropriately. Ross has also made unwanted sexual advances to Rachel and has threatened to get her fired if Rachel does not sleep with him. Because Rachel knows that Joey and Ross are close friends, Rachel does not tell Joey about Ross's conduct and threats, but she does tell some of the other employees about Ross' conduct. When Rachel learns that Chandler has approved Joey's recommendation that Ross be promoted to head barista, Rachel quits her job. Rachel claims that Ross's conduct has made the work environment intolerable for her. Rachel sues Ross and Java Brothers for both quid pro quo and indirect sexual harassment. Rachel seeks your advice as to the merits of her claim of sexual harassment against Ross and Java Brothers. What advice do you give?

