BLAW 201-900 Business Law Week 1 Discussion Question
Week 1: Question 1
Hanna owned a Honda and sometimes had work done on it at Henry’s Garage. One day she drove up with a flat tire, parked her car beside the garage, and called to Henry that she had a flat tire and would be back in an hour. Henry fixed the tire. Hanna refused to pay, saying that she had intended to make the repair herself. (A) Was there a contract? Explain completely why or why not and how much Hanna would pay. (B) Suppose Henry also adjusted the carburetor and straightened a fender. Could he recover for this? Explain. (Due: Friday, 11 PM. Comment to classmate post is due before 11PM Sunday)
Week 1: Question 2
Ron Dexter is engaged in the business of towing and storing vehicles. On February 14, 2008, the police recovered a stolen automobile and had it stored at Dexter’s lot. The legal owner of the car, Outback Insurance Company, learned that the automobile, valued at $11,350, was located at Dexter’s facility on May 8, 2008, but took no action to take possession of the vehicle. On July 12, 2008, Dexter discovered that Outback owned the automobile. On July 15, 2008, Dexter gave written notice to Outback that the car was at his storage facility. He enclosed a bill for storage fees at the rate of $30 a day. Outback refused to pay the fees. On July 10, 2009, Outback sued to take possession of the car. Dexter released the car to Outback on July 17, 2009, but sued Outback to recover $15,510 in storage fees. Is Outback obligated to pay $15,510 to Dexter for the storage of the vehicle? Discuss fully why or why not. What legal theories are at issue? (Post is due before 11 PM Saturday. Comment to classmate post is due before 11PM Sunday.)
BLAW 201-900 Business Law Week 1 Chapter 12 – Review Case Problems
Review Case Problems
Chapter 12
1.) Ofler, a physician in a small town, learned that there was a homeless man by the name of Stauffer living in the same town who was suffering from cancer and in dire need of a physician’s services. Ofler called upon Stauffer, who informed him that he had no money and could not afford to pay a doctor, whereupon Ofler said, “Don’t let that bother you. I have a professional interest in your case.” He performed a very intricate operation on Stauffer, treated him for a period of two months, and affected an entire cure. Stauffer later received a large legacy from the estate of a deceased relative. The physician, hearing this, makes a claim upon Stauffer for the value of his services. Can he recover on the basis of: (a) Express contract (b) Implied contract? (c) Quasi contract? Explain treating each part separately.
2.) Peters was the auditor for a building and loan association who, for a flat sum of $24,000 per year, made monthly audits of the association’s account. This sum was credited at the end of each year to the reduction of mortgage debt owed by Peters to the association. Lance was employed as the association’s real estate manager at the annual salary of $58,000. Lance’s duties were to supervise maintenance and repair of properties owned by the association, secure tenants, attend to payments, and advise the directors at their regular meetings of the conditions of the property, what rental was being obtained, whether the rental was adequate, and whether certain properties should be sold. Lance resigned and Peters, on his own initiative, took over all of Lance’s former duties. The directors, although aware of this, never raised the question of who had hired him or how much, if anything, he was to be paid over his regular fee of $24,000 per year for the auditing work. After Peters had performed these managerial duties for one year, he requested the association to credit an additional $58,000 on his mortgage debt. On its refusal he sued the association for $58,000, the amount formerly paid to Lance. How much, if anything, should he recover? Explain.
3.) Blaine Gas Co. discovered that gas was being consumed at 410 Main Street although there was no record of an account or meter at that address. The last account at that address had been closed twelve years earlier. Janet Duffy was living at 410 Main Street. Blaine sued her for the gas consumed at that location. Explain fully whether or not Janet is obligated to pay for the gas usage. What legal theories are at issue?
4.) Juan lost his dog while at the park. Within an hour, Juan had posted notices in the park stating that he would pay $500 to the person who found and returned his dog. After three days had passed, Juan and his family were heartbroken that no one had found their dog, so Juan posted new notices in the park and surrounding streets promising the sum of $1000 as payment for the return of his dog. Aisha found Juan’s dog the day after it had gone missing, but unfortunately the dog did not have any identification tags on its collar. Four days later, Aisha told her friend, Monica, about the dog. Monica informed Aisha that she had seen a notice about a similar lost dog. Aisha contacted Juan and returned the dog to him. Do Juan and Aisha have a contract? Why or why not? How much money is Juan obligated to pay to Aisha?
BLAW 201-900 Business Law Week 2 DQ
Week 2: Question 1
Hager met a homeless man, Saul, on a downtown street. Feeling sorry for the man, Hager gave him his address, and said that if he would come to Hager’s home that evening at 8 PM, he would give him $20.00 and a suit of clothing. Later in the day, Hager met with misfortune on the stock market. As a consequence, he experienced a change of heart and refused to live up to his agreement when Saul arrived that evening at 8 PM. Has Hager broken a contract? (Post is due before 11 PM Thursday.)
Week 2: Question 2
Paulson made an offer to Zahira as follows: “I offer to sell you 150 shares of Microsoft. It closed yesterday at $170. If you will buy 10 shares at that price I will give you 20 days to decide whether you want to buy the balance at the same price.” Zahira agreed, and paid Paulson for 10 shares. Three days later the price of Microsoft went up to $195. Zahira decided to buy the other 140 shares, but when he called Paulson’s office, he learned that Paulson had been killed in an automobile accident just a few moments before he called. Two weeks later, Zahira notified Paulson’s executor of his acceptance. The executor claims that the offer to sell the remaining 140 shares was ended by Paulson’s death. Is he correct? Explain.
Week 2: Question 3
On August 15, Wong, in Chicago, faxed Chang, in Philadelphia, as follows: “I offer you 100 shares Fulton Incorporated stock at $211.00 each. I suggest you answer by Fed Ex today, because I must know your answer by 10 o’clock tomorrow morning.” Chang immediately upon receipt of Wong’s offer sent a reply by Fed Ex accepting the offer, depositing his letter in the Fed Ex box at 3 o’clock, August 15. This letter, in normal course, should have reached Wong by 9 o’clock the following morning. Unknown to either party the airplane carrying the mail was delayed by an accident, and Chang’s letter did not reach Wong until noon, August 16. In the meantime, Wong had sold his holdings at 11 o’clock, August 16. Chang brings suit against Wong for breach of contract. Can he recover? Explain.
BLAW 201 Week 2 Case Problems Ch 13
Review Case Problems
Chapter 13
1.) On August 18, 1979, the Orchard Co., Inc. of Lofton, Tennessee, entered into a written agreement with L.H. Everest, Inc. of Burgton, Tennessee, under the terms of which the Orchard Co. agreed to supply “50,000 citrus fruit trees to be selected as to variety, on or before October 1, 1979, by the buyer, said trees to caliper at time of delivery 5/8 inches or larger and said trees to be from seedlings now growing in seller’s nursery.” The price was to be $1.70 per tree, delivery to be between December 1, 1980 and April 1, 1981. On September 15, 1979, L.H. Everest, Inc. ordered the following citrus trees: 2,000 Pineapple oranges, 5,000 Marsh Pink oranges, 1,000 Washington Navels and 33,000 Marsh Seedless oranges. All of these were in seedling form at the seller’s nursery. The Orchard Co. refused to perform the agreement, upon the ground that it was indefinite as to the subject matter, since the particular kinds of trees and the amount of each kind were not specified in the agreement. Is the contention of the Orchard Company sound? Explain.
2.) Blackwell faxed Singer “I will take 400 bushels of tomatoes at $8.00 each, F.O.B Camden.” Singer, believing that she had only 300 bushels, immediately wrote in reply, “will send you 300 bushels at the price named.” After mailing this letter, Singer discovered that she had enough tomatoes to fill Blackwell’s order for 400 bushels, and the next day sent a facsimile to Blackwell that she would ship 400 bushels according to Blackwell’s fax. The fax was received and read by Blackwell before the letter. After receipt of Singer’s letter, however, Blackwell bought from X, the price of tomatoes having fallen, and refused to accept Singer’s shipment. (a) What are Singer’s rights against Blackwell? (b) Would your answer remain the same if Blackwell had received Singer’s letter before he received Singer’s fax? Explain.
3.) Wilson Oil Co. offered to sell Vera a parcel of land in a distant state at a certain price. Vera said she would like to examine the property to see if it was as represented. The Wilson Oil Co. agreed to give Vera ten days to make the examination. Within the ten-day examination period and while Vera was examining the property, Wilson Oil Co. advised her that it would sell the land only for an advanced price, which was considerably higher than the first price mentioned. After making an examination at considerable expense, Vera decided to take the land on the terms first stated and notified Wilson Oil Co. within the ten-day period that she accepted those terms. The Wilson Oil Co. refused to convey the land. Vera sued Wilson Oil Co. for damages. Can she recover? Explain.
4.) On May 1, 2002, the Adobe Products Company wrote Peters offering to supply up to five million bricks at the rate of $428 per thousand, and expressly agreeing to keep the offer open until July 1. On June 1 the Adobe Products Company wrote Peters withdrawing their proposition, and Peters received this letter on June 2. On June 3 Peters wrote the Adobe Products Company stating that he accepted their proposition and renouncing their attempt to withdraw the offer, in as much as they had given Peters two months in which to accept. When called upon to deliver the bricks, Adobe Products Company refused to do so and Peters sued. (a) Decide and explain, assuming the case is not governed by statute. (b) Would your answer remain the same if the transaction is governed by the Uniform Commercial Code? Explain.
BLAW 201 Week 3 DQ
Week 3: Question 1
The television network CNBC and other television networks have been working to develop policies for their business correspondents and guests on their business shows because of conduct known as pump-and-dump, the practice of a Wall Street professional or network correspondent appearing on television to tout a particular stock as being a good buy. Often, unbeknown to the viewing audience, the guest or correspondent promoting the stock has a large holding in it and, after the television show runs and the stock price creeps up, sells his or her interest at a higher price than would have been possible before the show on which the person raved about the stock appeared. What category of ethical issues exists here? If you were a network executive, what would you do to remedy the problem? Should the government regulate such practices? (Post is due before 11 PM Thursday.)
Week 3: Question 2
A new trend is emerging in health insurance: premium increases based on claims. It is common practice in the auto insurance industry, for example, for insurers to revisit your premium each year and adjust it based on factors such as your driving record or number of accidents. However, health insurers have generally evaluated their insured’s health only once, at the outset, when issuing a policy. The reevaluation of health and premiums was a practice that ended in the 1950s because the insurers feared regulators would impose limitations on premiums. At least one health insurer, however, has begun to evaluate the health of its insureds annually and to adjust policy premiums accordingly. Even without examination of insureds, some insurers have increased the insureds’ premiums based simply on the nature of their claims for the year and the possibility that more claims will arise.
Those who are healthy are in favor of this annual review. Perceiving themselves as the equivalent of good drivers, they want to pay less when they stay healthy. The health discount is, in their minds, the equivalent of the safe driver discount. However, those who are less healthy argue that people buy insurance so that it will be there when they need it, and the coverage should apply without regard to claims. Consider the ethical issues in this type of pricing for health insurance. (Post is due before 11PM Friday.)
BLAW 201 Week 3 Writing assignment – Ethical Dilemma
ETHICS ASSIGNMENT
For this assignment, you will consider the consequences of acting ethically or unethically. After carefully reading the supplemental ethics materials (Jennings handout), discuss fully the ethical issues related to this case. (1) Categorize the ethical dilemma(s), (2) examine the matter from other perspectives, (3) describe any possible rationalizations, and finally, (4) use at least one of the ethics models to resolve the situation.
You will also be graded on grammar, spelling and punctuation. Your answer must be typed (double-spaced, font size 12) and between 500 to 1000 words in length. This assignment is to be added to your “iWebFolio”.
GRADING RUBRIC
Writing assignments will be graded on the depth of the arguments, the analysis, coherence, and editing (grammar and mechanical correctness). (75 points)
The Case
An employee at the supermarket you manage mopped one of the aisles in the store and placed signs at the ends of the aisle to warn people not to use the aisle until the floor dried. One customer walked around the sign, slipped, fell, and suffered serious injuries. Her lawyer comes to you with the following story. She says that she is going to sue the store for the negligence that led to the customer’s injuries. However, she says that she doubts that she can win, since case law in the state makes it clear that the sign is considered a reasonable warning so that contributory negligence by the customer would eliminate the liability of the store. This means that the customer will get nothing, but one can never be completely sure. The worst part is that the customer has no insurance, has incurred large hospital bills, cannot work for several months, and has no source of support.
The lawyer makes the following deal. She will forgo any fee for the case and will sue only for an amount equal to the medical costs incurred and the wages lost, if you will agree to testify that there was no sign in place to warn that the floor was wet. The payment will be made by the insurance company. This will not affect your position with the insurance company, and you will save attorney’s fees. Should you make such a deal? What if you knew that the law in most states would provide an award because their laws hold that warning signs are insufficient and a complete physical barrier has to be in place? Discuss the ethical issues as instructed above.
BLAW 201 Week 3 Review Case Problems Ethics
Review Case Problems
Ethics
1. Geneva Mapack, a recent graduate of Drexel University, is a first-year associate with the MacAndrews Consulting Group. The partner in charge of a major strategy study for an important new client in the shipping business has asked Mapack to call low-level employees in competing shipping companies to gather competitive data to be used to devise a winning strategy for the client. She was instructed not to identify the client but to introduce herself as a consultant doing an analysis of the shipping industry.
Assume that Mapack knows that senior managers in the competing firms would consider the data she is collecting proprietary and would not talk with her at all if they knew that she worked for a direct competitor. Is it ethical for Mapack to question the lower-level employees without revealing that she is working for a direct competitor? What should she do if after telling the partner that she considers it unethical to make the calls, she is told that consultants do this all the time and that refusal to do it would be a career-limiting move?
2. Cassandra Washington is a manager/buyer in charge of purchasing children’s shoes for a large retail store chain. She is also a die-hard football fan. This year, the Super Bowl will be played in the Superdome in New Orleans, Louisiana, her hometown. Washington’s favorite team, the Eagles, is expected to reach the Super Bowl.
Currently, the store chain carries four brands of children’s rain boots. In an effort to streamline its product line, the CEO has decided to cut back to three brands of rain boots, leaving to Washington the decision of which brand to cut. Assume that all four brands are equally profitable. If the makers of Brand One send Washington a pair of Super Bowl tickets, should she accept them? Does it matter whether the maker of Brand One is also a close friend of hers?
BLAW 201 Week 4 Discussion Question
Week 4: Question 1
Blake, who had been diagnosed with Alzheimer’s disease, sold and conveyed two acres of land to Khron, who paid $14,000. At the time of the sale and conveyance, Blake appeared to be competent and Khron had no knowledge of Blake’s illness. One year later, Blake died. During the prior year, Blake had spent the $14,000 received from Khron. The executrix of Blake’s estate sued Khron to set aside the deed and recover the land conveyed to Khron. The executrix made no offer to pay $14,000 to Khron. Will the executrix succeed? Suppose it was shown that Khron knew about Blake’s condition at the time of the sale and conveyance of the land. Would this affect your answer? (Post is due before 11 PM Thursday.)
Week 4: Question 2
Walters, a business owner, filed tax returns for 2001, 2002, and 2003 using the cash basis. In 2004, Walters hired Erlich, a CPA, to prepare his income tax for 2004 using the accrual basis. While preparing the 2004 return, Erlich examined the prior years’ returns. Based on Erlich’s suggestions, Erlich prepared revised returns for the prior years, and Walters submitted these to the Internal Revenue Service (IRS), claiming an $18,000 refund. Instead of receiving the refund, the IRS claimed Walters owed $134,000 in unpaid taxes and fines. Erlich told Walters that the IRS was mistaken and that he could clean up the simple problem for a fee of $1000.
After granting several extensions, the IRS notified Walters that Monday, October 5, 2008 was the deadline for filing a protest to the proposed assessment. On Saturday, October 3, Erlich called Walters to his office to sign the protest. When Walters arrived, Erlich produced a written contract with a fee agreement whereby Erlich was to receive $1000 plus 8 percent of any monies saved on the assessment. When Walters refused to sign the new fee agreement, Erlich told him that the protest had to be in the mail that afternoon to reach the IRS by Monday and that if the protest were not filed on time Walters would be liable for the $134,000 plus additional fines that had accrued since 2005. Walters signed the fee agreement, and the protest was filed on time. After reviewing the protest, the IRS reduced the assessment to $21,000. Erlich sent Walters a bill for $10,040. Walters sued to have the new fee arrangement rescinded. What legal theory will Walters argue? Who wins? How much does Walters owe Erlich for the service of preparing the protest? (Post is due before 11 PM Saturday.)
BLAW 201 Week 4 Review Case Problems
Review Case Problems
Ethics
1. Geneva Mapack, a recent graduate of Drexel University, is a first-year associate with the MacAndrews Consulting Group. The partner in charge of a major strategy study for an important new client in the shipping business has asked Mapack to call low-level employees in competing shipping companies to gather competitive data to be used to devise a winning strategy for the client. She was instructed not to identify the client but to introduce herself as a consultant doing an analysis of the shipping industry.
Assume that Mapack knows that senior managers in the competing firms would consider the data she is collecting proprietary and would not talk with her at all if they knew that she worked for a direct competitor. Is it ethical for Mapack to question the lower-level employees without revealing that she is working for a direct competitor? What should she do if after telling the partner that she considers it unethical to make the calls, she is told that consultants do this all the time and that refusal to do it would be a career-limiting move?
2. Cassandra Washington is a manager/buyer in charge of purchasing children’s shoes for a large retail store chain. She is also a die-hard football fan. This year, the Super Bowl will be played in the Superdome in New Orleans, Louisiana, her hometown. Washington’s favorite team, the Eagles, is expected to reach the Super Bowl.
Currently, the store chain carries four brands of children’s rain boots. In an effort to streamline its product line, the CEO has decided to cut back to three brands of rain boots, leaving to Washington the decision of which brand to cut. Assume that all four brands are equally profitable. If the makers of Brand One send Washington a pair of Super Bowl tickets, should she accept them? Does it matter whether the maker of Brand One is also a close friend of hers?
BLAW 201 Week 5 Review Case Problems
Review Case Problems
Chapter 15
1) Calley sold an automobile to Bailey, delivered the car and received the full purchase price. Ten days after the sale Bailey discovered that Calley had sold similar cars and had made agreements with the buyers to keep the cars in repair for one year free of charge. Bailey drove the car to Calley’s garage and demanded that Calley make a similar agreement with him. Calley accordingly gave Bailey a written agreement stipulating that he would cover all necessary repairs for a period of one year free of charge. At the end of nine months the car required overhauling and Bailey had the repairs made at Calley’s garage at the cost of $850. Is Calley liable for the repairs?
2) DeLuca owed Caruso $5,000 which was due and unpaid. DeLuca was negotiating for the purchase of a new house and realized that if Caruso demanded payment of the $5,000 after he had invested all his available cash in the new house, he, DeLuca, would be in an unfortunate predicament. He therefore went to Caruso and explained the whole situation to him, and requested a one-year extension of the $5,000 debt. Caruso expressed willingness to go along under the circumstance and gave DeLuca a written promise not to sue on that obligation for the period of one year. Two days later, and before DeLuca had entered into a binding agreement to purchase the new house, DeLuca received a letter from Caruso revoking his promise and demanding immediate payment of the $5,000 debt, and in which he threatened to sue for the debt if payment was not made immediately. Answer the following questions relating to these facts, and discuss your reasons fully:
(a) Is there consideration for the promise of Caruso not to sue for one year?
(b) Could the written promise not to sue be subject to any other argument for enforceability by DeLuca?
(c) In what regards, if any, would your answers to (a) and (b) above be changed if DeLuca had entered into an agreement to purchase the house before his receipt of Caruso’s letter?
3) West mailed the following note to Carter:
January 8, 1989
Because of our long friendship, I promise to send you $2,000 within a week. I know you can use the money for your son’s college tuition, and you can sue me for it if I don’t pay. Witness my hand and seal.
(Signed) John B. West
West never paid the $2,000. The week having passed, Carter brings suit against West. Who wins? Discuss fully the principles of law involved.
BLAW 201 Week 6 Review Case Problems Chapter 16
Review Case Problems
Chapter 16
1. In 2007, Justin’s Inc. suspected and accused one of its employees, Alfred R. Albrect, of theft. The union to which Albrect belonged negotiated an oral contract with Justin’s whereby Albrect agreed to accept a permanent layoff if Justin’s would not report the suspected theft to the state’s unemployment agency so that Albrect could collect unemployment benefits. Justin’s agreed. It is a crime for an employer and employee to withhold relevant information from the state’s unemployment agency. Justin’s subsequently reported the suspected theft to the state’s unemployment agency, and Albrect was denied unemployment benefits. Albrect sued Justin’s for damages for breach of contract. Can Albrect recover against Justin’s?
2. John Soifer paid an unsolicited $3,000 bribe to Judge Susan Whitehead so that the judge would be lenient to a friend of Soifer’s who had a case pending before Judge Whitehead. Judge Whitehead reported the incident and turned the money over to the state’s attorney general. The state of Maine indicted Soifer for bribery and sentenced him to four years in prison. Soifer filed a motion to recover the $3,000 from the state. Can Soifer recover the money?
BLAW 201 Week 7 Review Case Problems Chapter 17
Review Case Problems
Chapter 17
1. In 1955, Robert Baxter and his wife purchased a home located at 456 Privet Drive, Newtown Square, Pennsylvania. They made a $100 down payment and borrowed the balance of $11,600 on a 30 year mortgage. In late 1961, when the Baxters were behind in their mortgage payments, they entered into an agreement to sell the house to Winston and Emily Severson if the Seversons would pay the three months arrearages on the loan and agree to make the future payments on the mortgage. Ms. Baxter and Ms. Severson were sisters. The Seversons paid the arrearages, moved into the house, and have lived there to date. In 1970, the Seversons spent $2000 to finish the basement. In 1976, Mr. Baxter sued to evict the Seversons from the house, claiming that they had never purchased it and thus had no right to live there. What is the basis for Mr. Baxter’s claim that they did not have a contract for the sale of the house? What defense can the Seversons use? Who will succeed?
2. On May, 17, 2009, Dennis Broward met with Stan Kingston, a loan officer with Hometown Bank, to discuss borrowing $30,000 from the bank to start a new business. After learning that he did not qualify for the loan on the basis of his own financial strength, Broward told Kingston that his former employers, James and Dawn Westerman of California, might be willing to guarantee the payment of the loan. On May 18, 2009, Kingston talked to Mr. Westerman, who stated that he would personally guarantee the loan to Broward. Based on this guaranty, the bank loaned Broward $30,000. The bank sent the guarantee to the Westermans, but it was never returned to the bank. When Broward defaulted on the loan, the bank filed suit against the Westermans to recover on their guarantee. Are the Westermans liable?
3. Six people, including Betty Rosen and Alicia Feldman, were members of the board of directors of the Tensile Corporation. A bank agreed to loan the corporation $1.2 million if the board members would personally guarantee the payment of the loan. Feldman objected to signing the guaranty to the bank because of other pending personal financial negotiations that the contingent liability of the guaranty might adversely affect. Feldman agreed with Rosen and the others board members that if they were held personally liable on the guaranty, she would pay her one-sixth share of that amount to them directly. Rosen and the other members of the board signed the personal guaranty with the bank, and the bank made the loan to the corporation. When the corporation defaulted on the loan, the five guarantors had to pay the loan amount to the bank. When they attempted to collect a one-sixth share from Feldman, she refused to pay, alleging that her promise was unenforceable. Does Feldman have to pay the one-sixth share to the other board members?
4. Nathan and Carmelita Costanza were married in 1959. Carmelita had a son from a previous marriage, Carmine Bruno, who lived with them. Nathan and Carmelita moved to California where they invested $400,000 in agricultural property. Carmine, then in his early teens, moved with them to California. In 1966, Carmine, then 18 years old, decided to leave home and seek an independent living. Nathan and Carmelita, however, wanted him to stay with them and participate in the family venture. They made a promise to Carmine that if he stayed home and worked, they would leave their property to him by will. Carmine agreed and remained home and worked the family venture. He received only his room and board and spending money. When Carmine married, Nathan told him that his wife should move in with the family and that Carmine need not worry, for he would receive all the property when Nathan and Carmelita died. Nathan and Carmelita entered into identical wills leaving their property to Carmine when they died. Nathan died in the late 1980s. Shortly before his death, without the knowledge of Carmine or Carmelita, he had changed his will and left his share of the property to his grandson from his first marriage, Marco Fenestra. Carmine sued to enforce Nathan’s promise. What arguments will Carmine and Marco use? Who will succeed?
5. Pacific Wholesale is in the business of buying and selling gold and silver for customers’ accounts. Garrett Soldano became a customer of Pacific in 1999 and thereafter made several purchases through Pacific. On January 28, 2000, Soldano telephoned Pacific and received a quotation on silver bullion. Soldano then bought 300 ounces of silver for a total price of $12,978. Pacific immediately contacted US Precious Metals and purchased the silver for Soldano. The silver was shipped to Pacific, who paid for it. Pacific placed the silver in its vault while it waited for payment from Soldano. When Pacific telephoned Soldano about payment, he told Pacific to continue to hold the silver in its vault until he decided whether to sell it. Meanwhile, the price of silver had fallen substantially and continued to fall. When Soldano refused to pay for the silver, Pacific sold it for $4,650, sustaining a loss of $8,328. Pacific sued Soldano to recover the loss. What arguments will Pacific and Soldano use? Who will succeed?
BLAW 201 Week 8 Review Case Problems Chapter 18
Review Case Problems
Chapter 18
1. Mrs. Albert divorced her husband, and the court ordered their child, Daniel, to live with his mother. The husband promised Mrs. Albert to give Daniel a college education if Mrs. Albert would allow Daniel to live with him, which she did. When Mrs. Albert died, Daniel sued his father for an alleged breach of the contract between his mother and father, alleging that he, Daniel, had not obtained the college education. Can Daniel recover?
2. Aliki contracted to purchase at ten cents per pound all of the grapes produced by the Sunrise Vineyards for a period of ten years. Aliki subsequently assigned her right to these crops to the Claret Winery. Must the Sunrise Vineyards deliver to the Claret Winery?
3. Henderson made a contract with the City of Chicago for the cleaning of its streets for a period of five years, and after performing for two years, conveyed his interest in the contract to Dierwechter. Upon hearing of this, the city treated the contract with Henderson as discharged and refused to permit Dierwechter to perform. Dierwechter then brought suit against the city. Can he recover?
4. Ajax Co. contracted with Baxter to drill on the latter’s land, for $150,000, a gas well according to certain plans and specifications. Baxter was to pay $75,000 when the work was half done and $75,000 upon completion. Baxter left that state to attend to some business. Ajax Co. assigned the contract to Xiao. Xiao, acting under the contract, began to drill the well but became insolvent and abandoned the operation when the well was only one-third completed. Upon returning to the state and discovering what had happened, Baxter asked Ajax Co. to complete the well, but Ajax refused. Baxter had the drilling of the well completed by another at a cost of $180,000. He then sued Ajax to recover damages for breach of contract. Will he recover?
BLAW 201 Week 9 Review Case Problems Chapter 19
Review Case Problems
Chapter 19
1. A landlord leased a trailer park to a tenant. At the time, sewage was disposed of by a septic tank system that was not connected with the public sewage system. The tenant knew this, and the lease declared that the tenant had examined the premises and that the landlord made no representation or guarantee as to the condition of the premises. Some time thereafter, the septic system stopped working properly, and the county health department notified the tenant that he was required to connect the septic tank system with the public sewage system or else the department would close the trailer park. The tenant claimed that he was released from the lease and was entitled to a refund of the deposit that he had made. Was he correct?
2. The Metropolitan Park District of Tucson gave Grant a concession to run the district’s parks. The agreement gave the right to occupy the parks and use any improvements found therein. The district later wished to set this agreement aside because it was making insufficient money from the transaction. While it was seeking to set the agreement aside, a boathouse and a gift shop in one of the parks were destroyed by fire. The district then claimed that the concession contract with Grant was discharged by impossibility of performance. Was it correct?
BLAW 201 Week 10 Review Case Problems Chapter 20
Review Case Problems
Chapter 20
1. Murphy Construction Co. agreed to build a house for Lester in accordance with certain specifications. The price stipulated was $345,000. The contract provides that the house was to be completed and ready for occupancy by June 1, 2010. Murphy wrongfully refused to perform and repudiated the contract before anything was done there under. Lester, after some trouble, located another contractor who built the house, according to the same specifications, for $378,000. The house was built and completed on September 1, 2010. Lester then sued Murphy Construction to recover damages for breach of contract. What is the measure of damages recoverable by Lester?
2. Myers operated a grocery store in Glassboro, New Jersey, and sold to consumers throughout Glassboro. He sold the business to Battavio and agreed as part of the consideration for the contract of sale, not to engage in the grocery business in Glassboro for three years. Two years later, Myers opened a new grocery store in Glassboro in competition with Battavio, who sued to obtain an injunction against Myers. Will the injunction be granted?
3. Brady owned a schooner which broke from its moorings during a gale. She located the boat which was leaking and took it to the nearest available place, a stone quarry dock, and fastened it with rope, a chain, and two pieces of cable. This, of course, was insufficient protection against damage, but was the best that she could do under the circumstances. Brady therefore immediately informed Weichert of these facts and Weichert contracted to tow in the schooner to a designated place. Calm weather prevailed for a few days, but Weichert failed to tow in the schooner. A storm broke out and the schooner was completely wrecked. Brady sued Weichert to recover the value of the schooner. Will Brady succeed?
4. Fleming was the owner and manager of the Fleming Theater. She entered into a contract with Gerard, whereby Gerard agreed to play the leading part in a certain drama in the Fleming Theater for a stated period of weeks. Prior to the expiration of the term of this contract, Gerard refused to continue playing the part. Fleming brought a bill in equity for specific performance. Will the court grant the decree?