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AOL, LCC, mistakenly made public and personal information of 650,000 of its members. The members filed a suit, alleging violations of California law. AOL ask the court to dismiss the suit on the basis of a “forum-selection” clause in its member agreement that designates Virginia court as the place where member’s disputes will be tried. Under a decision of the United States Supreme Court, a forum- selection clause in unenforceable “if enforcement would contravene a strong public policy of the forum in which suit is bought.” California courts have declared in other cases that the AOL clause contravenes a strong public policy. If the court apples the doctrine of stare decisis, will it dismiss the suit?
How does the relative tax advantage change if the company decides to pay out all equity income as cash dividends that are taxed at 15%?
The cost of grading and spreading gravel on a short rural road is expected to be $ 300,000. The road will have to be maintained at a cost of $ 25,000 per year. Even though the new road is not very smooth, it allows access to an area that previously c..
A construction company purchased a bulldozer 5 years ago for $150K. It has been depreciated to a book value of $50K. The Caterpillar Company salesman has proposed replacing it with a new model for $160K. and taking the present bulldozer in trade for ..
Illustrate at what price can the firm sell the level of output found in the previous question.
An overallocation of resources in an industry means that for the last unit produced, In long-run perfectly competitive equilibrium, economic efficiency is achieved because. The desire to have government intervene to correct market failure and establi..
Suppose the demand for good X is Qdx=10-2Px + Py +M .the price of X is $1 the price of good Y is $10 and income is $100 given these prices and income how much of good X will be purchased?
How does the life cycle also permanent income theories resolve the seemingly contradictory pieces of evidence regarding consumption behavior?
Explain how does a firm solve this pricing problem to maximise profits. Explain, using a diagram to support your answer.
Explain the difference between import substitutions and export promotion as economic growth strategies for developing countries. Be sure to include in your response both the strengths (benefits) and weaknesses (risks) inherent in both strategies. Whi..
Assume that trade opens between Argentina and New Zealand and that, with trade, a pound of mutton exchanges for a bushel of wheat. Before trade, Argentina produced at point A and New Zealand produced at point C. Argentina moves to point B, while New ..
The theory of public choice suggests that
Suppose the Reserve Bank of India (RBI; India's central bank) expands the money supply. Consider the effects of the policy in the market where people exchange dollars for rupees (India's currency). You can drag the curves in the following graph to he..
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