Question

1. Gob wants to expand his successful, honey making bee business. If Gob decides to take his company public, what law would govern the initial sale of the securities?
2. Oscar contracts with Tobias to deliver lemons to some local businesses. After Tobias picks up the lemons, he runs a red light and hits a pedestrian. Can the pedestrian successfully sue Oscar for her injuries? Why or why not?
3. Lucille would like to hire a group of six year old children to work on her property doing a variety of tasks, including blasting some rock formations with dynamite. Can Lucille hire the children for this purpose? Why or why not?
4. After a pregnant waitress went into labor during her shift, Sally’s restaurant bans all waitresses from working past their 6^th month of pregnancy. Is the restaurant’s policy legal? Why or why not?
5. Michael hires Jesse as a real estate agent to sell his orange groves for $40,000. Shortly thereafter, Michael discovers that there are dinosaur bones on the property, which means the land is worth more than $1 million. He promptly informs Jesse of the value of the land. Jesse would still like to sell the land for $40,000 and to earn her sales commission. If Jesse took Michael to court to enforce their agency relationship, what would be the result?

Answer 1

• In the United States, the law which governs the sale of securities to the public is the Securities Exchange Act, 1934, and Securities Act of 1933.
• No, the pedestrian can not sue Oscar for the fault caused by Tobias. In the given scenario, Oscar act as the agent of Tobias, who is the principal. An agent won't ever be liable for the fault caused by his principal. Only a principal can be held liable for his agent's act. Therefore the pedestrian can not sue Oscar for the accident.
• No, Lucie can not hire children for the stated purpose.

According to Federal Law, it is illegal to employ children below the age of 14. So even it is for tasks other than blasting rocks, Lucie can not hire the children. It is legal to hire children between the of 14 and 16 for jobs of limited hours and children above 17 can be hired for unlimited hours of non-hazardous work.

The task in Lucie's property involves hazardous activities. Considering that too, Lucie can not hire children below the age of 6.

• According to the prevailing law, a pregnant woman can work as long as she is able to perform the functions of her job. Not hiring or firing pregnant women is against the law.

Therefore the act Sallys restaurant is against the law.

• Jesse is the agent of Micheal. According to the law of agency, an agent is liable to act according to the words of his principal. Here in the given case, even though Micheal instructed Jesse to sell his land for $40000 first, Jesse would be liable to act accordingly if he changes his demands later.

Therefore, Jesse can not insists to sell Michael's land for $40000, which was the price. As the land is found more worthy later, Micheal can instruct Jesse to sell his land for the new price and Jesse will be liable to act accordingly.