LEGAL ENVIRONMENT OF BUSINESS
INSTRUCTOR: NANCY A. JOHNSON, ESQ.
1.Do Not write your name on your exam, use your student number 2.Define all legal terms used.
3.Use the IRAC approach to analyze each lawsuit
(Issue, Rule, Argument, Conclusion)
a.Issue:What is the legal basis for their suit?
b.Rule:What is/are the issues rule(s) covering this area? c.ArgumentBased on the legal rule(s), how will each side argue? d.Conclusion:How will the court most probably decide based on the legal rule(s) involved and the facts of the
case as they pertain to those rules?
On June 12, Rail Road train was traveling down a grade in the mountains which curved as it crossed over a river at the bottom of the grade. Engineer was descending the grade too rapidly and the train, loaded with pesticides, derailed into the river. Pesticides were spilled into the river and washed down stream through Small Town and into a large reservoir which served Megacity, a city with a population of 3,000,000.
Andy, a resident of Small Town was trying to sell his house but Buyer pulled out of the sale due to the death of fish and wildlife along the banks of the river bordering the property. The deaths were due to the pesticides in the water.
Chris, age 5, was swimming in the river at the time of the accident and became gravely ill from pesticides he ingested in the water.
Dave was fishing under the train bridge and was crushed to death by the train. He left a widow and six children.
Ed, who lived in Megacity, drank tap water from his home and was made ill by it.
Farmer Frank has a flower farm 100 miles upstream from the accident where he raises flowers for nurseries and florist shops. The year following the accident, none of his flowers bloomed because of the small number of bees and insects in the area which were relied on to pollinate the flowers.