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BUS 3021 Unit 5 Assignment 2 Reflections on Business Law Evaluation

Case: Encino Motorcars, LLC v. Navarro

The case of Encino Motorcars, LLC v. Navarro revolves around the issue of overtime pay and the exemptions provided by federal law. It is legally required to compensate employees with overtime pay unless they are exempted. The law specifically does not require overtime compensation for employees working in the sales department. 

In this case, Hector Navarro’s eligibility for overtime pay was disputed, and it was argued that if he fell under the exemption, the company must comply with the law. What made the case particularly interesting was the challenge faced by the United States Court of Appeals when three justices voted against the advisors.

BUS 3021 Unit 5 Assignment 2 Reflections on Business Law Evaluation

There are concerns among certain parties that justice might not be served if the agency prevails over Encino Motorcars, LLC. The pivotal question is whether the service advisors can be considered salespeople according to the description provided by the Fair Labor Standards Act (FLSA). 

Justice Thomas firmly believes that they are indeed salesmen and should be exempt from receiving overtime pay. This case highlights Justice Thomas’s objective stance in his dissenting opinion, where he firmly stood his ground to clarify the matter and ultimately led to the reversal of the Ninth Circuit based on the same rationale (Mann, 2018).

Basics of Contract Law: Formation, Breach, and Remedies

Regarding contract law, honoring contractual promises is of utmost importance, and breaching a contract occurs when one party fails to fulfill their obligations or deliver as agreed upon. For instance, if a painter fails to bear the increased cost of paint and instead transfers it to the customer when prices rise, it would be a breach of contract. The painter should have anticipated such market fluctuations and should be legally obligated to fulfill the terms of the agreement without fail (Smith, 2014, p.37).

Are Rules that Protect Minors from the Enforcement of Contracts Archaic?

In legal terms, a minor refers to an individual under 18. The rules that protect children from the enforcement of contracts are not archaic; instead, they aim to safeguard minors from making uninformed decisions. These rules ensure that children are protected until they reach an age where they can fully comprehend the implications of contracts. By voiding a contract, minors can exercise their right to withdraw from an agreement they cannot understand due to age and legal capacity (HG.org Legal Resources, 2019). BUS 3021 Unit 5 Assignment 2 Reflections on Business Law Evaluation

Intellectual Property Case Law Analysis

Intellectual property law encompasses the protection of artistic, literary, and scientific works; broadcasts and performances; inventions; unique designs; service marks, trademarks, and commercial names; and prevention of unfair competition, among other individual works (Lianos et al. Law and Intellectual Property (IP) Rights: Analysis, Cases and Materials, 2016).

BUS 3021 Unit 5 Assignment 2 Reflections on Business Law Evaluation

The court’s decision in the aforementioned intellectual property case was justified, as patent owners must protect their inventions and innovations from potential infringers. Patenting is vital in safeguarding their rights and ensuring they are not subject to unauthorized use or exploitation. It is important to note that the court cannot patent a product on behalf of the complainant; it is the complainant’s responsibility to secure the necessary patents for their products once they are introduced into the market (Levy, 2018).


HG.org Legal Resources. (2019). Can a Minor Enter into a Contract? Retrieved from


Levy, R. (2018). Proceed with Caution When Acquiring a Licensor’s Patents. IPWatchdog. Retrieved from


Lianos, I. (2016). Competition Law and Intellectual Property (IP) Rights: Analysis, Cases, and Materials. Chapter 13 in Ioannis Lianos & Valentine Korah with Paolo Siciliani, Competition Law (Hart Pub. 2017 Forthcoming). Available at SSRN:

https://ssrn.com/abstract=2863814 or http://dx.doi.org/10.2139/ssrn.2863814

Mann, A. (2018). Opinion analysis: Justices reject Fair Labor Standards Act protections for service personnel at car dealerships. SCOTUSblog. Retrieved from


Smith, S. A. (2014). Contract theory. Oxford: Oxford University Press. Retrieved from


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