Business Law

Business Law 150 Final 1.Franklin, a hobby-shop supplier, and Gordon, a hobby-shop owner, entered into a contract that provided that Franklin would sell Gordon fifty World War II battleship models at Franklin’s cost of $250 each, plus a reasonable profit. They couldn’t agree on what a reasonable profit would be. Gordon brought suit to enforce the contract against Franklin, who refused to deliver the models. Franklin claimed that there was no contract because of indefiniteness. Is Franklin correct? 2. Name 4 types of contracts that must be in wring under the Statute of Frauds 3. Bart was a self-made millionaire who had earned his fortune by dedicated hard work. Bart had worked so hard that he never had developed much of a social life.Bart met Linda and fell in love with her. When Bart proposed to Linda, she told him that she needed time before making such an important decision. Pressing her for a favorable response, Bart telephoned Linda and promised her $100,000 if she would marry him. Linda then accepted the proposal. Bart contracted with Quick Builders for the construction of a home Bart intended to move into with Linda after their marriage. Construction by Quick was not very quick because Quick was not paying subcontractors the sums that they were owed. They, in turn, were not completing their work. To expedite matters, Bart called the subcontractors and assured them that Bart would pay any sums that Quick Builders did not pay if they would complete the construction. Bart and Linda married, and the subcontractors completed the work. Quick Builders did not pay the subcontractors in full. Bart failed to pay Linda the $100,000. Both Linda and the subcontractors sued Bart. Discuss the probable outcome of the lawsuits. 4 Janet Jones sold the assets and liabilities of her coin-operated laundry to Kevin Katz for $10,000. The assets of the business included all of the washers and dryers. The liabilities included the amounts still owing on seven new dryers, which had been purchased recently from Dryer Company under an installment contract. Katz agreed to make the installment payments on the new dryers as they came due. After Katz failed to make an installment payment when it was due, Dryer Company sued Jones. Jones claimed she no longer was liable. How will the court decide? 5. Cyril made two contracts. The first was to have his house painted one month from the date of the written contract. The second was for his neighbor’s 1957 Ford Thunderbird. Each contract was definite and clear in all respects. As to the house painting, Cyril inquired with the painter as to when the work could begin. The painter explained that he was extremely busy and was not sure if he could fulfill the contract. Cyril flew into a rage and immediately hired someone else who painted the house, but at a higher price. With regard to the automobile purchase contract, after signing the contract, the neighbor decided that she did not wish to sell her car and refused to complete the transaction. Cyril attempted to purchase a similar car elsewhere, but the car was a vintage automobile which was not available on the open market. Cyril sued both the painter and the neighbor. Discuss the probable outcomes of the lawsuits. What type of damages will Cyril seek? 6.What types of contracts may be assigned without the other party’s consent and what type of contracts need consent? 7 Name and briefly describe three types of remedies that someone can ask for in a court of law if their contract has been breached. 8, Nelson took her computer to ABC Computer for repairs. ABC repaired the computer at a cost of $350 and informed Nelson that her computer was ready. Before Nelson came to pick up her computer, ABC was burglarized, and Nelson’s computer was taken. ABC had a commonly used alarm system that was operating properly on the night of the burglary, and all the doors and windows were properly secured. Nelson sued ABC for the cost of the computer. ABC denied any liability and counterclaimed for the $350 in repairs. Who will win? Why 9. ABC Corp hired Confidential Corp. to distribute advertising to its clients through Confidential’s e-mail service. Confidential obtained the job because of their secure system and they knew that customer lists were very valuable. ABC paid Confidential $15,000 in advance for the agreed upon service. Unfortunately, Confidential’s service was hacked into and ABC’s customer list was stolen by a competitor of ABC. The list was worth over $150,000. ABC is suing Confidential for damages. How much should they sue for? What are the arguments? 10. Frank has two interests in property. On property “X,” Frank has a life estate measured by the life of his Uncle Sal. On property “Y,” Frank has a fee simple estate. Frank wishes to transfer, upon his death, his interest in the two properties to his wife, Samantha. Prior to Frank’s executing his will, Uncle Sal dies. Frank still wishes to leave the properties to his wife, but he now is uncertain whether he has the right to do so. Can Frank leave both property interests to Samantha? Why or why not? 11 Tucker and Hankey were adjoining property owners. Tucker claimed that the fence separating their properties was not located properly and that it should be moved back onto Hankey’s land. Hankey claimed that he owned the strip between the fence and the alleged boundary line since the fence had been there for so long. He proved that for forty (40) years there had been on the strip in question a barn with a cement floor, which had been built by the person from whom he purchased his land, and that he had been told by the former owner that the fence was the boundary line. The fence consisted of five-foot-high barbed wire set in cement. The deeds prove that the fence actually was built on Tucker’sproperty. Who owns the strip? Why? 12. Dylan performs services for Columbia Day Care Center. She has completed the job and is owed $5,000. Due to her excellent credit rating she has obtained a commitment for a loan from Citibank for $25,000 and has agreed to borrow the money. However, she has not yet signed a formal loan agreement. She decides to assign her claim to the $5,000 and the loan commitment to her friend Alyssa who needs the money. Columbia refuses to pay Alyssa and Citibank refuses to give the loan to Alyssa. Alyssa sues both Columbia and Citibank to enforce the assignments Is Alyssa successful in her suits? Why or why not? 13. Vacarro gave her son Mark a car on the day Mark left for college. Vacarro told Mark that she expected him to use the car for school purposes and to earn good grades. Mark flunked out of college in his second semester. Vacarro sued to regain title to the car on the ground that the gift was conditional on Mark’s earning good grades and remaining in college. Will Vacarro win the case? 14. Humberto called his friend John and asked him to come over immediately because Humberto had suffered a stroke and might be dying. In their telephone conversation, Humberto advised John that he wanted to give John his gold watch. Immediately after their telephone conversation, Humberto wrote out a will that left his share in Blackacre to John. Blackacre was the marital home of Humberto and Connie, who owned the home as tenants by the entirety. Humberto died before John arrived at Blackacre. John claims the watch and a share in the home. Connie contests both matters. Decide. 15. A lawyer owned a home next door to a very beat up, neglected home. Anne Murray purchased the home next door and made a contract with Joe’s Home Improvements for a complete renovation of the property. The lawyer was delighted because the improvement of the Murray home was upgrading the neighborhood and raising the value of the lawyer’s home. After making the last required payment on the contract, Anne Murray became seriously ill and ultimately was taken to a nursing home for care.When Joe learned of Murray’s illness and confinement, Joe ceased work on the Murray home, and breached the contract. Because the outside renovation work had not been completed, the premises began to return to its former rundown condition. The lawyer ultimately sued Joe as a third-party beneficiary of the contract between Murray and Joe. What is the probable outcome of the lawsuit? Business Law 150 Final 1.Franklin, a hobby-shop supplier, and Gordon, a hobby-shop owner, entered into a contract that provided that Franklin would sell Gordon fifty World War II battleship models at Franklin’s cost of $250 each, plus a reasonable profit. They couldn’t agree on what a reasonable profit would be. Gordon brought suit to enforce the contract against Franklin, who refused to deliver the models. Franklin claimed that there was no contract because of indefiniteness. Is Franklin correct? 2. Name 4 types of contracts that must be in wring under the Statute of Frauds 3. Bart was a self-made millionaire who had earned his fortune by dedicated hard work. Bart had worked so hard that he never had developed much of a social life.Bart met Linda and fell in love with her. When Bart proposed to Linda, she told him that she needed time before making such an important decision. Pressing her for a favorable response, Bart telephoned Linda and promised her $100,000 if she would marry him. Linda then accepted the proposal. Bart contracted with Quick Builders for the construction of a home Bart intended to move into with Linda after their marriage. Construction by Quick was not very quick because Quick was not paying subcontractors the sums that they were owed. They, in turn, were not completing their work. To expedite matters, Bart called the subcontractors and assured them that Bart would pay any sums that Quick Builders did not pay if they would complete the construction. Bart and Linda married, and the subcontractors completed the work. Quick Builders did not pay the subcontractors in full. Bart failed to pay Linda the $100,000. Both Linda and the subcontractors sued Bart. Discuss the probable outcome of the lawsuits. 4 Janet Jones sold the assets and liabilities of her coin-operated laundry to Kevin Katz for $10,000. The assets of the business included all of the washers and dryers. The liabilities included the amounts still owing on seven new dryers, which had been purchased recently from Dryer Company under an installment contract. Katz agreed to make the installment payments on the new dryers as they came due. After Katz failed to make an installment payment when it was due, Dryer Company sued Jones. Jones claimed she no longer was liable. How will the court decide? 5. Cyril made two contracts. The first was to have his house painted one month from the date of the written contract. The second was for his neighbor’s 1957 Ford Thunderbird. Each contract was definite and clear in all respects. As to the house painting, Cyril inquired with the painter as to when the work could begin. The painter explained that he was extremely busy and was not sure if he could fulfill the contract. Cyril flew into a rage and immediately hired someone else who painted the house, but at a higher price. With regard to the automobile purchase contract, after signing the contract, the neighbor decided that she did not wish to sell her car and refused to complete the transaction. Cyril attempted to purchase a similar car elsewhere, but the car was a vintage automobile which was not available on the open market. Cyril sued both the painter and the neighbor. Discuss the probable outcomes of the lawsuits. What type of damages will Cyril seek? 6.What types of contracts may be assigned without the other party’s consent and what type of contracts need consent? 7 Name and briefly describe three types of remedies that someone can ask for in a court of law if their contract has been breached. 8, Nelson took her computer to ABC Computer for repairs. ABC repaired the computer at a cost of $350 and informed Nelson that her computer was ready. Before Nelson came to pick up her computer, ABC was burglarized, and Nelson’s computer was taken. ABC had a commonly used alarm system that was operating properly on the night of the burglary, and all the doors and windows were properly secured. Nelson sued ABC for the cost of the computer. ABC denied any liability and counterclaimed for the $350 in repairs. Who will win? Why 9. ABC Corp hired Confidential Corp. to distribute advertising to its clients through Confidential’s e-mail service. Confidential obtained the job because of their secure system and they knew that customer lists were very valuable. ABC paid Confidential $15,000 in advance for the agreed upon service. Unfortunately, Confidential’s service was hacked into and ABC’s customer list was stolen by a competitor of ABC. The list was worth over $150,000. ABC is suing Confidential for damages. How much should they sue for? What are the arguments? 10. Frank has two interests in property. On property “X,” Frank has a life estate measured by the life of his Uncle Sal. On property “Y,” Frank has a fee simple estate. Frank wishes to transfer, upon his death, his interest in the two properties to his wife, Samantha. Prior to Frank’s executing his will, Uncle Sal dies. Frank still wishes to leave the properties to his wife, but he now is uncertain whether he has the right to do so. Can Frank leave both property interests to Samantha? Why or why not? 11 Tucker and Hankey were adjoining property owners. Tucker claimed that the fence separating their properties was not located properly and that it should be moved back onto Hankey’s land. Hankey claimed that he owned the strip between the fence and the alleged boundary line since the fence had been there for so long. He proved that for forty (40) years there had been on the strip in question a barn with a cement floor, which had been built by the person from whom he purchased his land, and that he had been told by the former owner that the fence was the boundary line. The fence consisted of five-foot-high barbed wire set in cement. The deeds prove that the fence actually was built on Tucker’sproperty. Who owns the strip? Why? 12. Dylan performs services for Columbia Day Care Center. She has completed the job and is owed $5,000. Due to her excellent credit rating she has obtained a commitment for a loan from Citibank for $25,000 and has agreed to borrow the money. However, she has not yet signed a formal loan agreement. She decides to assign her claim to the $5,000 and the loan commitment to her friend Alyssa who needs the money. Columbia refuses to pay Alyssa and Citibank refuses to give the loan to Alyssa. Alyssa sues both Columbia and Citibank to enforce the assignments Is Alyssa successful in her suits? Why or why not? 13. Vacarro gave her son Mark a car on the day Mark left for college. Vacarro told Mark that she expected him to use the car for school purposes and to earn good grades. Mark flunked out of college in his second semester. Vacarro sued to regain title to the car on the ground that the gift was conditional on Mark’s earning good grades and remaining in college. Will Vacarro win the case? 14. Humberto called his friend John and asked him to come over immediately because Humberto had suffered a stroke and might be dying. In their telephone conversation, Humberto advised John that he wanted to give John his gold watch. Immediately after their telephone conversation, Humberto wrote out a will that left his share in Blackacre to John. Blackacre was the marital home of Humberto and Connie, who owned the home as tenants by the entirety. Humberto died before John arrived at Blackacre. John claims the watch and a share in the home. Connie contests both matters. Decide. 15. A lawyer owned a home next door to a very beat up, neglected home. Anne Murray purchased the home next door and made a contract with Joe’s Home Improvements for a complete renovation of the property. The lawyer was delighted because the improvement of the Murray home was upgrading the neighborhood and raising the value of the lawyer’s home. After making the last required payment on the contract, Anne Murray became seriously ill and ultimately was taken to a nursing home for care.When Joe learned of Murray’s illness and confinement, Joe ceased work on the Murray home, and breached the contract. Because the outside renovation work had not been completed, the premises began to return to its former rundown condition. The lawyer ultimately sued Joe as a third-party beneficiary of the contract between Murray and Joe. What is the probable outcome of the lawsuit?