Question

In: Economics

NO COPIED ANSWER 1–4. Spotlight on AOL—Common Law. AOL, LLC, mistakenly made public the personal information...

NO COPIED ANSWER

1–4. Spotlight on AOL—Common Law. AOL, LLC, mistakenly made public the personal information of 650,000 of its members. The members filed a suit, alleging violations of California law. AOL asked the court to dismiss the suit on the basis of a “forum-selection” clause in its member agreement that designates Virginia courts as the place where member disputes will be tried. Under a decision of the United States Supreme Court, a forum-selection clause is unenforceable “if enforcement would contravene a strong public policy of the forum in which suit is brought.” California has declared in other cases that the AOL clause contravenes a strong public policy. If the court applies the doctrine of stare decisis, will it dismiss the suit? Explain. [Doe 1 v. AOL, LLC, 552 F.3d 1077 (9th Cir. 2009)] (See Common Law Tradition.)

Solutions

Expert Solution

If the court applies the doctrine of Stare Decisis, it will use the IRAC method for legal reasoning.

The IRAC (Issue, Rule, Analysis, Conclusion) application to our case

Issue- The issue here is whether the forum-selection clause is unenforceable in our case. In other words, if enforcement would contravene a strong public policy of the forum in which suit is brought. The suit is bought in California. So, does California have a strong public policy on this matter?

Rule- California public policy against waivers of class action remedies and rights under California's consumer protection statutes.

Analysis- The crux of the matter is to decide if the clause from AOL means only the Virginia State court or Federal courts in Virginia too. This is because if the clause means only Virginia state court, then class action suit cant be brought there. If so, it violates California public policy favoring consumer class actions and renders the forum selection clause unenforceable. But if the clause means federal courts in virginia too, then it does not violate california public policy and is enforceable.

The precedent here are the cases under california public policy. If the state courts in the forum selection means that a particular suit can't be bought there, then it cant be enforced.

Conclusion- I believe the court will not dismiss the suit since AOL clause does mean only state courts. This will mean the precedent will require the court to hear the plaintiffs.


Related Solutions

Use the following information for 1-4 ( this is the only information I have) Please answer...
Use the following information for 1-4 ( this is the only information I have) Please answer as much as you can. Zurich Inc. reports pretax financial income of $100,000 in 2017. The following items cause taxable to be different from pretax financial income. 1. Depreciation reported on the tax return is greater than the depreciation on the income statement by $20,000. 2. Prepaid Rent collected and reported on the tax return is greater than rent revenue recognized on the income...
1. Use information in the balanced chemical formula below to answer the next 4 questions   ...
1. Use information in the balanced chemical formula below to answer the next 4 questions    C2H6                    +       7   F2             →           2 CF4             +         6 HF mw = 30.06 amu                           mw = 37.99 amu                           mw = 88.00 amu               mw=20.00 amu          a) How many moles of C2H6 would be consumed when reacted with 9.24 moles of F2? b) If you consume 7.50 moles of F2, how many grams...
Use the following information about HamsterFarm Industries to answer the next 4 questions. On January 1,...
Use the following information about HamsterFarm Industries to answer the next 4 questions. On January 1, 2012, HamsterFarm Industries issued a four‐year, $20,000, 6% bond. The interest is payable semi‐annually each June 30 and December 31. The market rate of interest on January 1, 2012 is 7%. Tonika uses the effective‐ interest amortization method. What is the issue price of the bonds on January 1, 2012? (Round to the nearest dollar. No dollar signs or commas). What is the carrying...
Use the following information to answer Questions 6 and 7. The 1-, 2-, 3-, and 4-year...
Use the following information to answer Questions 6 and 7. The 1-, 2-, 3-, and 4-year oil forward prices are $60, $58.35, $57.40, and $55 per barrel, respectively. Your firm is thinking about starting up an offshore drilling station and needs to forecast revenue over the next 4 years. Assume the risk-free rate is 5.25% each year and initial costs are $150,000,000. 6. (1 point) If your firm expects to extract 1,100,000 barrels of oil per year and each barrel...
1. Answer questions 1-4 based on the information provided here: NechMenTin, Inc., has given the following...
1. Answer questions 1-4 based on the information provided here: NechMenTin, Inc., has given the following information to you. They want you to calculate their weighted average cost of capital. The company has always followed their ideal capital structure which the management insists is 40% debt and 60% equity capital. The company can issue bonds for 9% coupon rate. The interest is paid semi-annually. The bonds have 22 years to maturity. The bonds can be issued to net the company...
Ralston Inc. has provided the following information. Use it to answer #1-4. Give all variances as...
Ralston Inc. has provided the following information. Use it to answer #1-4. Give all variances as a positive number. Round ONLY your final answer to dollars. HINT: first correctly identify your variables as per the study guide                                                                                                                                                                   Per Unit Standards:                                                                                                                                      Direct Materials 10 lb @ $2.60/lb 26 Direct Labor 2 hours @ $22.50/hr 45 Variable Overhead 2 hours @ $18/hr 36 Fixed Overhead 25                                                                         Total 132 Budgeted Production = 7,000 Units Actual Results Material Purchased 74,959 lbs $192,200 Material...
Use this information to answer Questions 1 - 4 below. You cross two homozygous pea plants....
Use this information to answer Questions 1 - 4 below. You cross two homozygous pea plants. One parent has round peas, terminal flowers, violet petals, and constricted pods, while the other parent expresses the alternate phenotypes of wrinkled peas, axial flowers, white petals, and full pods. The four traits are controlled by four different genes, each on a separate chromosome.In the F1, all plants have round peas, axial flowers, violet petals, and full pods. In the F2, all possible combinations...
Use the following comparative balance sheets and additional information to answer questions (1) through (4). MKH...
Use the following comparative balance sheets and additional information to answer questions (1) through (4). MKH Company Comparative Balance Sheets For the year ended December 31 20X1 20X0 Change Current assets Cash $324,700 $217,600 $107,100 Accounts receivable 132,600 165,200 (32,600) Inventory 175,100 137,200 37,900 Prepaid rent 25,500 14,400 11,100 Total current assets $657,900 $534,400 $123,500 Long-term assets Land $326,400 $345,600 ($19,200) Equipment (net) 321,300 356,300 (35,000) Total long-term assets $647,700 $701,900 $(54,200) Total assets $1,305,600 $1,236,300 $69,300 Current liabilities Accounts...
Use the following information to answer questions 1-4. You have achieved a dream job working for...
Use the following information to answer questions 1-4. You have achieved a dream job working for the Toledo Mud Hens. You estimate the demand for general admission tickets as follows. Price Quantity 15 5000 14 6000 13 7000 12 8000 11 9000 10 10000 The marginal cost of selling a ticket is $2. Other fixed costs per game equal $5000. Finally, the seating capacity is 9000. Question 1 (0.5 points) What is the profit maximizing price? Question 1 options: 15...
Answer questions 1-4 from the following information. Beginning PBO: $800,000 Contributions: $64,000 Beginning Plan Assets: $700,000...
Answer questions 1-4 from the following information. Beginning PBO: $800,000 Contributions: $64,000 Beginning Plan Assets: $700,000 Benefits Paid: $42,000 Amendment-January 1: $150,000 Actual Return: $9,000 Service Cost: $35,000 Amortization PSC: $11,000 Discount Rate: 4% Expected Rate of Return: 5% 1. Compute interest costs. 2. Compute the expected return. 3. Compute the ending balance of the plan assets. 4. Compute the ending balance of the unrecognized net gain or loss in AOCI.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT