1. Assume that Virginia enacted a law prohibiting, until further notice, all grocery stores in Virginia from selling all powdered spices manufactured in, or shipped from, Maryland. This law was enacted because it was discovered that the spices recently manufactured in Maryland were infected with bacteria. Determine the constitutionality of the Maryland statute. The statute is:
a) Unconstitutional; it violates grocery store owners’ substantive and procedural due process rights under the 5th and 14th Amendments because they are private businesses.
b) Unconstitutional; the statute imposes an undue burden on interstate commerce.
c) Constitutional; it is a valid exercise of Maryland’s police power.
d) Constitutional; the statute involves the sale of goods which is valid under UCC rules, thus, the state constitution does not apply.
2. Pete, who collects antique cars, hired Ann as his agent to find and purchase a 1965 Ford Mustang on his behalf. Ann found a Mustang just like Pete wanted, but Ann fell in love with the car and purchased it for herself.
Which of the following illustrates Ann’s liability, if any, in her duty as agent to Pete in this situation?
a) Ann has not violated the duty of loyalty to Pete; she can find another Mustang for him.
b) Ann has not engaged in self-dealing because she did not purchase the Mustang with Pete’s funds.
c) Ann usurped an opportunity for Pete, but has not violated the duty of loyalty to Pete by competing with Pete’s interests.
Ann violated the duty of loyalty to Pete by competing with Pete’s interests, and has usurped an opportunity for Pete.