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1. Christina Peterson, Hector Gonzolas, and John Ping are involved in the development and licensing of genetically engineered agricultural products. Unfortunately, it appears as though a competitor has copied some of their work. The competitor alleges that the genetically engineered plans were developed by independent research and not by using any of their work. They decide that it is necessary to protect their rights against the competitor and are considering filing a lawsuit. However, one of the drawbacks of the lawsuit is that the case is extremely complicated and there is a fear that a judge and/or jury will not be familiar enough with the complex issues, nor be able to educate themselves at the trial, in order to arrive at the proper result.

Please define the three (3) major alternative resolution models. Which of these may be the better choice for the plaintiffs and why.

2. Keith Loeb and his wife own stock in Waldbaum, Inc., a publicly traded company in the supermarket business. Robert Chestman is Loebs stockbroker. Chestman is aware that Loebs wife is the granddaughter of Julia Waldbaum, a member of the board of dierctors of Waldbaum and the wife of its founder. Julia is also the mother of Ira Waldbaum, the president and controlling shareholder of Waldbaum. During a four-year perios, Chestman executed several transactions involving Waldbaums stock for Keith Loeb. Subsequently, Ira Waldbaum agreed to sell Waldbaum to a buyer which would result in a stock purchase agreement selling the Waldbaum shares for $50 per share. Ire told three of his children about the pending sale and admonished them to keep the news quiet until a public announcement. He alos told his sister, Shirley Witkin, about the sale and cautioned her not to discuss it because it was to remain confidential. Ignoring that advice, Shirley told her daughter, Susan, that Ira was selling the company. Shirley warned her daughter not to tell anyone except her husband, Keith Loeb, because disclosure could ruin the sale. The next day Susan told Keith about the pending sale, but told him not to tell anyone.

The following day, Keith Loeb says he talked with Chestman and told him that Waldbaum was about to be sold at a substantially higher price than its market value. Loeb asked Chestman what he thought he should do, and Chestman responded that he could not tell Loeb what to do in a situation like this. After the phone call, Chestman bought 3,000 shares of Walbaum at $24.65 per share and purchased an additional 8,000 shares for his clients with 1,000 of those shares going to Keith Loeb.

Did Keith Loeb act ethically with regard to what he told Chestman Did Robert Chestman act ethically with regard to the information he receiver from Loeb? Pick one of the ethical standards offered in the text and show how that standard applies to this situation.

3. Kahn of Portland Oregon, sent a letter to Lischner of Los Angeles inquiring whether Lischners property in Humboldt County was for sale. Lischner replied that he was interested in selling and asked Kahn about the fair market value. Kahn wrote that it was difficult to make an offer without a legal description of the property and asked for it and the annual taxes. These were provided by Lischner. Subsequently, Kahn wrote, I hesitate to place a value on someone elses property, but I can tell you that I have been offered a similar track of property for $2,000. Since your property is closer to mine, I would prefer to buy yours, and offer a four-year term contract at a total price of $2,500. The two parties ultimately agreed on a cash price of $2,500. Shortly after contracting with Kahn, Lischner went to Humboldt county and readily learned, upon the most superficial inquiry that the property was worth more than $2,500. He sold the property to Dacoima Lumber Sales, Inc. for $7,500. Thereupon, Kahn sued Lischner for $5,000. Lischner responded that he had been induced to contract by a fraudulent misrepresentation as to the value of the property by Kahn and therefore could rescind their contract of sale.

What are the elements that must be present for fraudulent misrepresentation? Did Kahn commit fraud? Why, or why not.

4. Peterson Corporation wanted to run an ad campaign that featured popular songs sung by the original singer. The aim was to make an emotional connection with people who remembered the songs. When Bette was approached to sing for the commercial, she refused saying she did not do commercials. Peterson Corporation still wanted to use the song, so they hired a backup singer for Bette and she was told to sound as much as possible like the Bette record. The backup singer did the commercial, and people, even close acquaintances of Bette, thought it was her. Bette sued Peterson Corporation for wrongfully appropriating her likeness.

Please give a definition of misappropriation. Is this a valid example of misappropriation? Why or why not.

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