Capella University Business Law case TransUnion Question

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Business Finance

Capella University

Description

Write a 2-3 page executive briefing of a selected business-related case pertaining to the topic of contract law.

Introduction

In this introductory course to business law, you will examine real-world court decisions pertinent to the topics that you will be studying. This is not a course designed to train lawyers, and you are not expected to be an attorney-in-training. However, you will be asked to do a substantial amount of independent research in the scholarly and professional resources of the field. You will be called upon to locate court cases relevant to the topics of contracts and torts and to write an analysis for each case.

To help you get your research started, some prominent searchable databases of court cases have been recommended for you in the assessment resources. Try to imagine yourself as either the plaintiff or the defendant in the cases you review, to make these cases more meaningful to your life.

Use the resources provided to familiarize yourself with the legal terminology as early as possible, in order to help you make sense of the legal language found in court cases. The terminology that you will learn in this course will be useful in both a scholarly and everyday context.

Overview

Contracts are the heart and soul of commercial transactions. Different types of contracts bind parties together in business dealings. Review contracts that you have signed recently—a lease, an employment agreement, an extended warranty—to examine not only the language but also the scope of these agreements. Examine the language in the contract that outlines how disagreements will be resolved, and the penalties that adhere to either party for breach of the contract.

Preparation

The first step in preparing your case law analysis is to locate a published court decision and select an organization you believe would be impacted by the decision. 

  • Choose a decision about contracts. To help you get started, use the Capella University Library Legal Research Library Guide and these well-known searchable databases of court cases. Try to imagine yourself as either the plaintiff or the defendant in the cases you read to make these cases meaningful to your life:
  • Select an organization not a party to the case that you believe would be impacted by that court decision. It can be an organization you work for or have worked for, an organization you would like to work for, or some other organization.
  • Use the following media simulations to help you with this assessment:
    • Analyzing a Case.
      • This multimedia walks you through a written court decision and explains each part's purpose.
    • Business Law Foundational Concepts.
      • This multimedia will help you to understand your reading materials and articles you find.
        • Review the terms or concepts listed under the tabs Foundational Legal Terminology and Contracts and Bankruptcy Terminology. You may start by studying the terminology listed in the Transcript view (click Transcript at the lower right corner of the screen). After you've studied the terms, go back to the interactive view, and try matching the terms to their definitions.
          • Use this multimedia to view several approaches to ethical thinking that can be applied to business.
        • In addition to your textbook, use the transcript as another resource to quickly look up some of the more common terms. This terminology will be useful in personal, scholarly, and professional settings.
    • Four Ethical Theories.
      • This multimedia sets forth several approaches to ethical thinking that can be applied to business.

The Case Analysis Report: Executive Briefing Exemplar [DOCX] shows a sample case law analysis. You may wish to refer to it as you work on your assessment.

Instructions

Once you have selected a decision and an organization impacted by the decision, assume you're a senior manager in the organization you selected and that you were asked to prepare an analysis of the court decision and brief the executive team of the organization about the impact the case might have on the company. Your briefing should include a summary of the case, as well as an evaluation of how the court's decision impacts the organization from a business, legal, and ethical perspective. Be sure to list your case citation in the References page at the end of your briefing.

Step 1: Exhibit information literacy skills as applied to business law.

  • Identify the court, the parties who are before the court, and the date of the decision.
  • Ensure that your briefing provides an accurate context in terms of who brought the lawsuit and the outcome of the case.
  • Report research from a recognized authority that adds insight into the meaning, history, or impact of the case with relevant legal research from credible databases or online sources.

Step 2: Summarize the facts and ruling of a legal case and its impact on businesses.

  • Provide a brief background and context associated with the case. Summarize the facts in no more than 1–2 paragraphs.
  • Identify the specific disagreement between the parties. Was there a dissenting opinion? If so, explain it.
  • Summarize the court’s ruling, including its rationale.
  • Analyze the impact of the case on businesses, including both negative and positive impacts.

Step 3: Explain how the court decision impacts legal and ethical compliance in a business environment.

  • Identify the ethical and legal implications for a business that were suggested by the court's decision.
  • Discuss whether or not the conduct of a party in the case was ethical or unethical.
  • Propose and explain an ethical theory that describes why a party's conduct was ethical or unethical.

Step 4: Explain how a legal case could impact a specific organization not a party to the case.

  • Explain the impact of the court’s decision on your selected organization. In light of the court’s ruling, how might the executive team of the organization make future decisions or policy?
Additional Requirements

Based on your executive audience, your executive briefing should be no more than three pages, in addition to a References page, and should be well organized and written in clear, succinct language. Follow APA rules for attributing content to sources that support your analysis and conclusions.

Your submission should meet the following requirements:

  • Written communication: Write in complete sentences free from errors that detract from the overall message.
  • Font and font size: Arial, 12 point.
  • Format and length: Double-spaced, 2–3 pages.
  • Citations: Include complete citations of your sources along with a Resources page. Review Evidence and APA for more information on how to cite your sources.

Review the assessment scoring guide for details on how your assessment will be graded.

Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the course competencies through the following assessment scoring guide criteria:

  • Competency 1: Articulate the importance, context, purpose, and relevance of law in a business environment.
    • Summarize the facts and ruling of a legal case and its impact on businesses.
  • Competency 2: Evaluate key judicial concepts that influence the decisions related to business.
    • Explain how the court decision impacts legal and ethical compliance in a business environment.
    • Explain how a legal case could impact a specific organization not a party to the case.
  • Competency 4: Develop information literacy skills as applied to business law.
    • Exhibit information literacy skills as applied to business law.
  • Competency 5: Convey purpose, in an appropriate tone and style, incorporating supporting evidence and adhering to organizational, professional, and scholarly writing standards.
      • Convey purpose, in an appropriate tone and style, incorporating supporting evidence and adhering to organizational, professional, and scholarly writing standard
    • ASSESSMENT 2
    • Introduction

      Overview

      Tort law is based on the notion that if one party harms another intentionally or by being careless or reckless (“negligent”), then the aggrieved party may be entitled to restitution and be made “whole.” In some cases, there is strict liability, as in cases of defective products. If a product is found to be inherently unsafe or defective, strict liability is imposed; "strict" means that neither intent nor negligence needs to be proven.Sometimes, a tort may also be a crime, as in the case of assault. Such a case can be brought both civilly and criminally. Here, we are only concerned with civil court cases. The court (using a judge or jury as fact-finder) will attempt to determine what damages are appropriate where a tort has been committed. A court will attempt to determine exactly what needs to be done when an aggrieved party can demonstrate damages, and what those damages should be, in order to return a party to its state prior to the alleged action. This remedy is almost always money because, in reality, no one can go back and undo the wrongful action.

      Preparation

      The first step in preparing your case law analysis is to locate a published court decision and select an organization you believe would be impacted by the decision. The Case Analysis Report: Executive Briefing Exemplar [DOCX] shows a sample case law analysis. You may wish to refer to it as you work on your assessment.

      Instructions

      Once you have selected a decision and an organization impacted by the decision, assume you’re a senior manager in the organization you selected and that you were asked to prepare an analysis of the court decision and brief the executive team of the organization about the impact the case might have on the company. Your briefing should include a summary of the case, as well as an evaluation of how the court’s decision impacts the organization from a business, legal, and ethical perspective. Be sure to list your case citation in the References page at the end of your briefing.Step 1: Exhibit information literacy skills as applied to business law.
      • Identify the court, the parties who are before the court, and the date of the decision.
      • Ensure that your briefing provides an accurate context in terms of who brought the lawsuit and the outcome of the case.
      • Report research from a recognized authority that adds insight into the meaning, history, or impact of the case with relevant legal research from credible databases or online sources.
      Step 2: Summarize the facts and ruling of a legal case and its impact on businesses.
      • Provide a brief background and context associated with the case. Summarize the facts in no more than 1–2 paragraphs.
      • Identify the specific disagreement between the parties. Was there a dissenting opinion? If so, explain it.
      • Summarize the court’s ruling, including its rationale.
      • Analyze the impact of the case on businesses, including both negative and positive impacts.
      Step 3: Explain how the court decision impacts legal and ethical compliance in a business environment.
      • Identify the ethical and legal implications for a business that were suggested by the court's decision.
      • Discuss whether or not the conduct of a party in the case was ethical or unethical.
      • Propose and explain an ethical theory that describes why a party's conduct was ethical or unethical.
      Step 4: Explain how a legal case could impact a specific organization not a party to the case.
      • Explain the impact of the court’s decision on your selected organization. In light of the court’s ruling, how might the executive team of the organization make future decisions or policy?
      Additional Requirements
      Based on your executive audience, your executive briefing should be no more than three pages, in addition to a References page, and should be well organized and written in clear, succinct language. Follow APA rules for attributing content to sources that support your analysis and conclusions.Your submission should meet the following requirements:
      • Written communication: Write in complete sentences free from errors that detract from the overall message.
      • Font and font size: Arial, 12 point.
      • Format and length: Double-spaced, 2–3 pages.
      • Citations: Include complete citations of your sources along with a References page. Review Evidence and APA for more information on how to cite your sources.
      Review the assessment scoring guide for details on how your assessment will be graded.

      Competencies Measured

      By successfully completing this assessment, you will demonstrate your proficiency in the course competencies through the following assessment scoring guide criteria:
      • Competency 1: Articulate the importance, context, purpose, and relevance of law in a business environment.
        • Summarize the facts and ruling of a legal case and its impact on businesses.
      • Competency 2: Evaluate key judicial concepts that influence the decisions related to business.
        • Explain how the court decision impacts legal and ethical compliance in a business environment.
        • Explain how a legal case could impact a specific organization not a party to the case.
      • Competency 4: Develop information literacy skills as applied to business law.
        • Exhibit information literacy skills as applied to business law.
      • Competency 5: Convey purpose, in an appropriate tone and style, incorporating supporting evidence and adhering to organizational, professional, and scholarly writing standards.
        • Convey purpose, in an appropriate tone and style, incorporating supporting evidence and adhering to organizational, professional, and scholarly writing standards.
        • Write a 3-page briefing of potential factors and issues associated with four types of business entities in the context of U.S. contract law.

          Introduction ASSESSMENT3

          One of the most common ways in which business managers are involved with business law is in relation to contracts. Organizations of almost any size will most likely need to create, negotiate, review, approve, adhere to, and resolve conflicts associated with contracts. A business determines its legal standing by determining what type of legal entity it should be identified as. The type of legal entity can significantly impact:
          • How lawsuits can be brought.
          • How contracts are handled.
          • How the courts interpret contract.
          • How the organization enters into contracts.
          • How the income from the organization’s contracts is taxed.
          • How liability for breach of contract is assigned.
          • How the business is sold.

          Preparations

          For this assessment, assume that you work as a manager in a relatively small, privately-owned U.S. business. The company president (who is also the owner) inherited the company from his mother and has never started a business. He is considering creating a spin-off business (possibly with one or two associates) but is unsure about what form of business entity would be best to use for the new business. It is expected that contracts will play a major role in the success of the business as it utilizes numerous suppliers and distributors. The president knows you took a university-level business law class and has asked you to write a paper analyzing the four most common business entities in the context of contracts to help him decide which type of organization to choose for the new operation.Research each of the following forms of business entities:
          • Sole proprietorship.
          • General partnership.
          • Corporation.
          • Limited liability company (LLC).

          Instructions

          Write a 3–page executive briefing of potential factors and issues associated with four types of business entities in the context of U.S. contract law.Analyze the following for each type of business entity.Step 1: Explain creation, negotiation, and approval of contracts for the most common types of business entities.
          • Analyze the pros and cons of each entity in this context.
          • For each type of business form, indicate who or what in the legal structure of the business has the authority to perform these functions: create, negotiate, and approve contracts.
          • Explain the advantages and disadvantages inherent in each of the four business forms with regard to contract creation, negotiation, and approval of contracts.
          Step 2: Explain contract liability for the most common types of business entities.
          • Analyze the pros and cons of each entity in this context.
          • For each of the four business types, who or what has liability associated with the contract? If the business breaches a contract and is found liable for damages, who in the business might bear personal liability, and what are the consequences for that individual? What liability might the business itself bear, if any?
          • Explain the advantages and disadvantages inherent in each of the four business forms with regard to contract liability.
          Step 3: Explain how the income of each type of business entity is taxed, specifying whether the entity, the owner, or both, are taxed.
          • Analyze the advantages and disadvantages of each entity in this context.
          • What are the income tax implications for each type of business? How is the income of the business and its owners taxed?
          • Analyze the advantages and disadvantages inherent in each of the four business forms with regard to taxation of income.
          Step 4: Explain the effects of the type of business entity on the ability to contract for the sale of the business.
          • Can the business be sold, in whole and/or in part?
          • How is ownership of the business transferred in terms of what is sold?
          • Explain the advantages and disadvantages inherent in each of the four business forms with regard to selling the business.
          Additional Requirements
          Based on your executive audience, your executive briefing should be no more than three pages, in addition to a References page, and should be well organized and written in clear, succinct language. Follow APA rules for attributing sources that support your analysis and conclusions.Your submission should meet the following requirements:
          • Written communication: Write in complete sentences free from errors that detract from the overall message.
          • Font and font size: Arial, 12 point.
          • Format and length: Double-spaced, 2–3 pages.
          • Citations: Include complete citations of your sources along with a References page. Review Evidence and APA for more information on how to cite your sources.
          Review the assessment scoring guide for details on how your assessment will be graded.

          Competencies Measured

          By successfully completing this assessment, you will demonstrate your proficiency in the course competencies through the following assessment scoring guide criteria:
          • Competency 3: Evaluate legal options to create a business entity.
            • Explain creation, negotiation, and approval of contracts for the most common types of business entities.
            • Explain contract liability for the most common types of business entities.
            • Explain how the income of each type of business entity is taxed, specifying whether the entity, the owner, or both, are taxed.
            • Explain the effects of the type of business entity on the ability to contract for the sale of the business.
          • Competency 5: Convey purpose, in an appropriate tone and style, incorporating supporting evidence and adhering to organizational, professional, and scholarly writing standards.
            • Convey purpose, in an appropriate tone and style, incorporating supporting evidence and adhering to organizational, professional, and scholarly writing standards.

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Explanation & Answer

Please view explanation and answer below.

1

Business Law

Name
Department
Institutional Affiliation
Course
Professor
Date

2
TransUnion LLC v. Ramirez
The case TransUnion LLC v. Ramirez was debated before the US Supreme
Court on March 30, 2021. Sergio Ramirez was the representative for class-action
litigation against TransUnion, a credit report organization. Ramirez supposed that
TransUnion deliberately dishonored the Fair Credit Reporting Act by designating on his
credit report that his name was on a list of people banned from carrying out business in
the US. A bench in the US district court bestowed more than sixty million dollars in
damages to the class associates. The 9th Circuit asserted the district court's ruling upon
appeal but lowered the per-member penal damages sum.
Consequently, TransUnion had to appeal to the Supreme Court. The issue in the
appeal was the position of complainants in a class-action claim. The question presented
is whether either Article III or Rule 23 allows a damages class action where the huge
majority of the class underwent no real injury (TransUnion LLC v. Ramirez, 2021). The
outcome was the court reversing the judgment of the US Court of Appeals
and remanded the case for more actions in a 5-4 ruling, indicating that associates of the
class-action complaint whose credit documents were not given to 3rd-party companies
did not suffer real harm from TransUnion's engagements, and thus, was short
of standing to litigate under Article III.
Step 2: Facts and Ruling of the Case and Impact on Businesses
Background and Context
When the trial for the case started, the Office of Foreign Assets Control (OFAC)
circulated a list of people with whom US companies were forbidden from conducting
business because of national security. On the other hand, TransUnion highlighted

3
customer names as possible matches with people on the OFAC list. In 2011, Sergio
Ramirez and his wife filled a credit claim to buy a car at a Nissan showroom
(TransUnion LLC v. Ramirez, 2021). However, TransUnion offered a report that showed
that Ramirez's name possibly matched 2 names on the list given by OFAC. TransUnion
admitted in its plea to the US Supreme Court that Ramirez was not among the two
identified persons. As such, Ramirez's wife bought the car entirely in her name.
Ramirez contacted TransUnion and inquired about the OFAC alert and was told
that no OFAC alert was on his credit score and was given a report. He also got a letter
from TransUnion, showing that his name was considered a possible match to data
recorded on the OFAC Database. After getting the letter, Ramirez communicated with
TransUnion and omitted the OFAC alert from his prospective credit reports. He also
annulled an imminent vacation to Mexico because of anxiety about the OFAC alert.
Typically, the Fair Credit Reporting Act necessitates consumer reporting organizations
to adhere to reasonable processes to guarantee maximum accuracy in the preparation
of a credit report. Also, the agencies should clearly and precisely reveal to the customer
information in their file.
Disagreement between the Parties and the Dissenting Opinion
A group of 8,185 people prosecuted TransUnion, holding that it failed to institute
reasonable processes to guarantee the precision of their credit files. For 1,853 of them,
TransUnion offered false credit reports to 3rd-party companies. These members suffered
tangible reputational damage and have Article III standing to litigate on the reasonableprocedures assertion. The files of the other 6,332 members were not given to 3rd-party
businesses during the related time. Hence, they did not portray material harm, making

4
them lack Article III standing to prosecute on the reasonable-procedures assertion
(TransUnion LLC v. Ramirez, 2021). Nonetheless, a dissenting opinion showed that
TransUnion created credit reports that wrongly identified numerous law-abiding
individuals as possible terrorists and drug dealers. Thus, it dishonored various
provisions in the Fair Credit Reporting Act (FCRA), which sanction customers to
precision in credit-reporting processes.
Step 2 Ruling, Rationale, and Impact on Businesses
The Supreme Court reversed the judgment of the Court of Appeals. It showed
that members of the class-action litigation whose credit files were not offered to 3rd-party
businesses did not incur concrete harm based on TransUnion's activities. As such, they
did not have the standing to sue under Article III. The case prompts businesses to be
alert and ensure the precision of information they offer to customers. The keenness
would ensure a better image to the company because of the subsequent credible
information offered. However, the case will make businesses incur many expenses in
their pursuit to change systems and gather accurate information. This will increase the
cost of operation.
Step 3: Impacts on Legal and Ethical Compliance in a Business Environment
Based on the court's decision, the suggested ethical and legal implication is that
TransUnion dishonored the FCRA by instituting false OFAC warnings on customers'
credit reports. Further, they sent misleading and inadequate disclosures regarding the
warnings. Typically, it was unethical of TransUnion to fail to utilize reasonable
procedures to guarantee the precision of consumer credit files. This is based on
deontology, which is a theory proposing that actions are good or bad based on a set of

5
rules. Usually, deontology is ethics of responsibility where the morals of action are
based on the nature of the action, implying that harm is improper regardless of its
effects (Mandal et al., 2016). The conclusions of deontology can be suitable for a
person but fail to yield a good outcome for the community. In this case, TransUnion
could have used erroneous information to credit rate consumers, but that is not what is
required of them by the Fair Credit Reporting Act (FCRA).
Step 4: Impact on Berkshire Hathaway Credit Ratings Inc.
Based on the court's decision and as a credit rating agency, Berkshire Hathaway
Credit Ratings Inc. should be keen to adhere to the Fair Credit Reporting Act
requirements. This is because an agency cannot know when its reports would be used
to assess a consumer's credit rating. Failure to offer accurate information might lead to
similar litigations against the company. To be on the safe side, the executive team of
Berkshire Hathaway Credit Ratings Inc. should observe reasonable procedures to
ensure accurate credit reports. Also, they should clearly and precisely reveal to the
consumer all information found in their file. Moreover, they should offer a consumer a
written summary of their rights.

References
Mandal, J., Ponnambath, D., & Parija, S. (2016). Utilitarian and Deontologica...


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