4-7 McGraw and Duffy have a contract that includes a binding arbitration clause. The clause provides for arbitration of any dispute arising out of the contract. The clause also provides that the arbitrator is authorized to award damages of up to $100,000 in any dispute arising out of the contract. McGraw allegedly breaches the contract. Duffy seeks arbitration, and the arbitrator, given the willfulness of the breach and the magnitude of its consequences, awards Duffy $150,000 in damages. Would a court uphold the award? Why or why not?

4-8 Sam and Mary enter into a contract that does not include a provision for arbitration. Mary wants to arbitrate the dispute, but Sam believes that arbitration is not possible because there is no binding arbitration clause in the contract. How can the parties secure arbitration?

4-9 Howard and Hannah decide to resolve a contract dispute through arbitration. They select their arbitrator through a private service. The arbitrator returns a significant award for Howard. The weekend after receiving a notice of the award, Hannah finds out from one of Howard’s coworkers that, although the arbitrator and Howard acted as if they did not know each other, they had actually been college roommates. Does Hannah have any basis for getting the award set aside?

4-10 Eloise is hired as a pharmacist and signs an employment agreement that includes a provision stating that she will submit any employment disputes to arbitration. After being on the job for three years, she is denied a promotion that she feels she deserved. She files a sex discrimination charge with the EEOC and a lawsuit in the federal district court. The employer files a motion to compel arbitration. Will Eloise be forced to arbitrate her claims? Why or why not?


14-7 Matt creates a small doughnut shop called DoGos. He uses the term DoGo surrounded by three concentric blue circles on all packaging. He starts selling his specialty DoGo doughnuts in local grocery stores, and soon develops a strong customer base, although he never sells the product outside of the state of Ohio. After five years of increasing business, he notices a sudden dropoff in sales. He soon discovers that a competitor is producing a similar product, but at a lower price, packaged in almost identical packaging, but with the name DoGoos inside the three concentric blue circles. Matt finds out who the producer of DoGoos is and sends him a request that he change his product name and packaging. Simon, the producer of DoGoos, refuses, saying that because Matt has no trademark, his signature packaging has no protection. Explain why Simon either is or is not correct.

14-8 Grover creates a machine that enables a manufacturer to make screws with 50 percent less waste than the industry norm. He patents his process and then decides to license the patent to Markham Manufacturing for a small royalty fee and a promise that Markham will buy a key ingredient needed to produce the screws from Grover. Is there anything wrong with this contract?

14-9 Plaintiffs created an original screenplay and copyrighted it before trying to pitch it to a major motion picture producer, who rejected the screenplay. That same company, five years later, produced a major motion picture with the same basic theme that the plaintiffs had pitched, but the plot, mood, setting, and pace of the two works were different. Do you think the plaintiffs had a case for copyright infringement?

14-10 Thrifty Inn decides to open a motel along an interstate that will provide cheap lodging. It calls the motel Sleep McCheap. McDonald’s seeks to enjoin Thrifty Inns from using the name, claiming that it violates the McDonald’s trademark as well as the McStop trademark that McDonald’s has for its one-stop business that provides cheap food, cheap lodging, and cheap gas. Will the injunction be granted? Why or why not?