BLAW 2361 - EXAM 3 - HALE

Issue

All direct descendants, such as children, grandchildren, great-grandchildren, and so on

Nuncupative will

An oral will

Alpha Company's workers go on strike. The company hires replacement workers so that it can continue to operate its business. When the strike ends, Alpha must rehire the original workers if the strike was over _______________.

An unfair labor practice

UCC §2-204

Any manner that shows agreement, moment of making is not critical, one or more terms may be left open

Scope of Article 2

Article 2 applies to the sale of goods.

An elementary school custodian hit a child who wrote graffiti on the wall. Is the school district liable for this intentional tort by its employee?

Yes but only if he was acting outside the scope of employment

Lara owns a used car lot. She emails Seth, a used car wholesaler who has a huge lot of cars in the same city. The email reads, "Confirming our agrmt—I pick any 15 cars from your lot—30% below blue book value." Seth reads the email, laughs, and deletes it. Two weeks later, Lara arrives and demands to purchase 15 of Seth's cars beneath marked value. Is he obligated to sell?

Yes he is obligated to sell as under UCC 2-201(2) , a signed memo between merchants that would be binding against the sender is sufficient to satisfy the statue of frauds against the recipient if he reads it and fails to object within 10 days and since nina had sent seth a fax that she was coming with all the details that she could pick any 15 cars from the lot and 30% below book which means that all the relevant details were mentioned in the fax and which means that nina had done her part and ball was in the court of seth and since seth chose to ignore it by laughing and throwing the paper away since under section 2-201(2) of UCC , he could have objected within 10 days but he chose not to and instead did nothing, so he is obligated to sell.

Finn learns that, despite his stellar record, he is being paid less than other salespeople at Barry Co. So he decides to start his own company. During his last month on the Barry payroll, he tells all of his clients about his new business. He also tells them that Barry is a great company, but his fees will be lower. After he opens the doors of his new business, most of his former clients move with him. Is Finn liable to Barry?

Yes, Finn has violated his duty of loyalty to Barry.

Betsy has a two-year contract as a producer at Jackson Movie Studios. She produces a remake of the movie Footloose. Unfortunately, it bombs, and Jackson is so furious that he fires her on the weekend the movie opens. Does he have the power to do this?

Yes, Jackson has the power to fire Betsy, because she has a two-year contract. Therefore, Jackson can prevent her from working at JM Studios and he must pay for damages.

Figgins is the dean of a college. He appointed Sue acting dean while he was out of the country and posted an announcement on the college web site announcing that she was authorized to act in his place. He also told Sue privately that she did not have the right to make admissions decisions. While Figgins was gone, Sue overruled the admissions committee to admit the child of a wealthy alumnus. Does the child have the right to attend this college?

Yes, because Sue had apparent authority.

Which of the following transactions is not governed by Article 2 of the UCC?

Leasing an automobile worth $35,000

Will

A legal document that disposes of the testator's property after death

UCC §2-207

An acceptance that adds or alters terms will often create a contract.

Codicil

An amendment to a will

Immediate power

Becomes effective when signed

Bradkeyne International, Ltd., an English company, bought a large quantity of batteries from Duracell, Inc. The contract specified delivery "FOB cargo ship, Jacksonville, Florida." Duracell supervised the loading of the batteries onto a ship in Jacksonville in early July, and they arrived in England in August. When loaded onto the ship, the batteries were conforming goods that could be used for normal purposes. But on board the ship, excessive heat damaged them. By the time they reached England, they were worth only a fraction of the original price. Bradkeyne sued Duracell. Who loses?

"FOB cargo ship, Jacksonville, Florida" means that the seller bears all risks until the goods are placed in the carrier's possession. From that moment onward, the buyer bears the risk. The batteries were fine when delivered, so Duracell was off the hook once they were on board. Bradkeyne bears the loss.

Lex Mercatoria (The law merchant)

A "custom made" law, created by the merchants who used it. The new doctrine focused on promises, the sale and exchange of goods, and payment.

Pretermitted child

A child who is left nothing under the parent's will

Unconscionable

A contract that is shockingly one-sided and fundamentally unfair

Power of Attorney (POA)

A document that permits the attorney-in-fact to act for the principal

Under UCC Article 9 on secured transactions, which of the following statements is correct concerning the disposition of goods by a secured creditor after a debtor defaults on a loan?

A good faith purchaser of the goods for value and without knowledge of any defects in the sale takes free of any security interest.

Administrator or administratrix

A personal representative appointed by the probate court to oversee the probate process for someone who has died intestate (or without appointing an executor). As you can guess, an administratrix is a female administrator.

Executor or executrix

A personal representative chosen by the decedent to carry out the terms of the will. An executrix is a female executor.

Holographic will

A will that is handwritten and signed by the testator, but not witnessed

The government accused Carlo Francia and another person of stealing a purse belonging to Frances Bainlardi. A policeman saw Francia sorting through the contents of the purse, which included a photo identification of Bainlardi. Francia kept some items, such as cash, while discarding others. At trial, Francia claimed that he had thought the purse was lost or abandoned. Besides the fact that Francia's accomplice was holding burglary tools, what is the weakness in Francia's defense?

Abandoned property is something that the owner has knowingly discarded because she no longer wants it. The burden is on the finder to prove that the property was abandoned, which will be impossible in this case since no one would throw away cash and credit cards. Because the purse contained photo identification, Francia could easily have located its owner. He made no attempt to do so, and his defense is unpersuasive.

Martin, a diamond wholesaler, writes Serge, a jewelry retailer, offering to sell 75 specified diamonds for $2 million. Martin's offer sheet specifies the price, quantity, date of delivery, and other key terms. The sheet also states, "Offer is made on these terms and no other." Serge sends Martin his own purchase order, naming the diamonds, price, and so forth, but adding a clause requiring any disputes to be settled by a diamond-industry arbitrator. In the diamond industry, arbitration by such a person is standard. Martin does not object to the arbitration clause. Martin delivers the gems but Serge refuses to pay the full price, claiming that many of the stones are of inferior quality. Martin sues for the balance due, but Serge insists that any dispute must be settled by arbitration. May Martin litigate, or must he arbitrate the case?

Additional terms become part of the agreement unless the original offeror insisted on its own terms, the new term materially alters the offer, or the offeror promptly rejects the new term. Martin's offer insisted on its own terms and Serge's arbitration clause does not become part of the agreement. Martin may litigate his dispute.

On Monday, Wolfe paid Aston Co., a furniture retailer, $500 for a table. On Thursday, Aston notified Wolfe that the table was ready to be picked up. On Saturday, while Aston was still in possession of the table, it was destroyed in a fire. Who bears the loss of the table?

Aston, because Wolfe had not yet taken possession of the table.

Triec, Inc., is a small electrical contracting company in Springfield, Ohio, owned by its executives, Yeazell, Jones, and Heaton. Employees contacted the International Brotherhood of Electrical Workers, which began an organizing drive, and 6 of the 11 employees in the bargaining unit signed authorization cards. The company declined to recognize the union, which petitioned the NLRB to schedule an election. The company then granted several new benefits for all workers, including higher wages, paid vacations, and other measures. When the election was held, only 2 of the 11 bargaining unit members voted for the union. Did the company violate the NLRA?

Because of the management of Triec, Inc. granted benefits in the form of higher wages, paid vacations, and other measures to discourage employees to form a union, the company did violate the NLRA.

Which of the following requirements must be met to create a bailment? I. Delivery of personal property to the intended bailee II. Possession by the intended bailee

Both I and II

Per stirpes

Each branch of the family receives an equal share

Per capita

Each heir receives the same amount

Power, Inc., which operated a coal mine, suffered financial losses and had to lay off employees. The United Mine Workers of America (UMWA) began an organizing drive. Power's general manager warned miners that if the company was unionized, it would be shut down. An office manager told one of the miners that the company would get rid of union supporters. Shortly before the election was to take place, Power laid off 13 employees, all of whom had signed union cards. A low-seniority employee who had not signed a union card was not laid off. The union claimed that Power had committed ULPs. Comment.

Each of the acts described was a ULP. Threatening layoffs or company closure are classic examples of ULPs. Laying off those who had signed union cards, but not those who refused, was clear discrimination.

Springing power

Effective sometime in the future, typically when the principle becomes incompetent

Fred assembles computers in his garage and sells them. He makes an agreement with Alpha Company under which Alpha will deliver 100 keyboards. The agreement does not specify when payment is due. Which of the following is true?

Fred must pay within a commercially reasonable time.

Gina has season tickets to Cardinals games. One Monday, she promises to give her tickets to Friday's game to Ed, a friend who works across town. On Tuesday, Gina hands the tickets to Al, an administrative assistant. An hour later, when Al still has the tickets and has not given them to Ed, Gina returns. "Sorry," she says, "but my cousins are coming to town this weekend. I'll need those tickets back." Gina is entitled to get the tickets back if Al works for _______________.

Gina

When Brook went to work at an advertising agency, his employment contract stated that he was "at will and could be terminated at any time." After 28 months with the company, he was fired without explanation. Which of the following statements is true?

He could be fired for any reason except a bad reason.

Which of the following conditions must be met for an implied warranty of fitness for a particular purpose to arise? I. The warranty must be in writing. II. The seller must know that the buyer was relying on the seller in selecting the goods.

II only

Gap fillers

If there is no clear oral agreement, the Code supplies its own terms

Which of the following statements is true?

In about half the states, employees have the right to bring guns into their workplace parking lot.

Spouse's Share

In community property states, a spouse can override the will and claim one-half of all marital property acquired during the marriage, except property that the testator inherited or received as a gift. In most non-community property states, a spouse can override the will and claim some percentage of the decedent's estate (which varies by state).

The Massachusetts Bay Transit Authority (MBTA) awarded the Perini Corp. a large contract to rehabilitate a section of railroad tracks. The work involved undercutting the existing track, removing the ballast and foundation, rebuilding the track, and disposing of the old material. Perini solicited an offer from Atlantic Track & Turnout Co. for Atlantic to buy whatever salvageable material Perini removed. Perini estimated the quantity of salvageable material that would be available. Atlantic offered to purchase "all available" material over the course of Perini's deal with the MBTA, and Perini accepted. But three months into the project, the MBTA ran short of money and told Perini to stop the undercutting part of the project. That was the work that made Perini its profit, so Perini requested that the MBTA terminate the agreement, which the agency did. By that point, Perini had delivered to Atlantic only about 15 percent of the salvageable material that it had estimated. Atlantic sued. What kind of contract do the parties have? Who should win and why?

It is a dependent contract. As per UCC, the agreement should be reached upon good faith. In this case the contract between P Corp and AT&T Co. is dependent upon the contract between P Corp and MBTA. As the contract between P Corp and MBTA has terminated, the contract between P Corp and AT&T Co. stands automatically terminated but now the unique UCC comes into play. As the P Corp has only supplied 15% of total salvageable material, it is not allowed to take profit by not supplying material to AT&T Co. which is still lying with it. It should supply the salvageable material up to the part of the contract it has completed at least.

Catherine Wagenseller was a nurse at Scottsdale Memorial Hospital and an employee at will. While on a camping trip with other nurses, Wagenseller refused to join in a parody of the song "Moon River," which concluded with members of the group "mooning" the audience. Her supervisor seemed upset by her refusal. Prior to the trip, Wagenseller had received consistently favorable performance evaluations. Six months after the outing, Wagenseller was fired. She contends it was because she had not mooned. Is it legal for the hospital to fire Wagenseller for this reason?

It is implied in the contract that she can be fired for any reason other than bad reason.

Lonny Joe owned two rare 1955 Ford Thunderbird automobiles, one red and one green, both in mint condition. He stored the cars in his garage. His friend Stephanie wanted to use the red car in a music video, so Lonny Joe rented it to her for two days, for $300 per day. When she returned the red car, Lonny Joe discovered a long scratch along one side. That same day, he noticed a long scratch along the side of the green car. He sued Stephanie for harm to the red car. Lonny Joe sued an electrician for damage to the green car, claiming that the scratch occurred while the electrician was fixing a heater in the garage. Explain the different burdens of proof in the two cases.

Lonny Joe had no bailment with the electrician because the electrician never assumed control of the car. To win that case, Lonny Joe must prove that the electrician behaved unreasonably and caused the scratch. However, when Lonny Joe rented Stephanie the red car, the parties created a bailment, and the law presumes Stephanie caused the damage unless she can prove otherwise. That is a hard burden, and Stephanie will likely lose.

Sheri signs a contract with Farmer Charlie on February 1. Under the deal, she will pay $25,000 for Charlie's entire pumpkin crop on October 1. Charlie plants pumpkin seeds on March 1, and they begin to sprout on April 1. When are the pumpkins identified?

March 1

Statue of Frauds - Exceptions

Merchant, Specially Made Goods, Judicial Admission

The Brugger Corp. owned a farm operated by Jason Weimer, who acted as the company's business agent. Tri-Circle, Inc., was a farm equipment company. On behalf of Brugger, Weimer offered to buy from Tri-Circle certain equipment for use on the farm. Tri-Circle accepted the offer, using a pre-printed form. The form included a finance charge for late payment. Weimer's offer had said nothing about finance charges, but he made no objection to the new term. Tri-Circle supplied the farm equipment but later alleged that Brugger had refused to pay for $12,000 worth of the supplies. Tri-Circle sued. In deciding whether Tri-Circle was entitled to finance charges, the court first inquired whether Brugger, Weimer, and Tri-Circle were merchants. Why did it look into that issue? Were they merchants?

Merchants in the contract are those who has knowledge or skill peculiar to the practices or goods involved in the transaction.and Between merchants means in any transaction with respect to which both parties are chargeable with the knowledge or skill of merchants. So all these three are merchants with respect to the contact as they all had knowledge or skill peculiar to the practices or goods involved in the transaction.Yes there are merchants. Accounts not paid within 30 days from date of billing will be subject to finance charge computed at a specified periodic rate. And Burgger didn't object to new terms so he is liable to finance charge, if shown on invoices. But the notice of finance charge was not given by Tri-circle.At the time of acceptance of offer there was no discussion about the finance charge and it was mentioned in the terms but still there Tri circle is not eligible to take finance charge as there was no proper finance charge intimation notice before. Just by mentioning in the pre printed form Tri circle is not entitled for finance charge. But they can charge for the cost of supplies which is included in $12000, so that part TYri circle can claim.

What if the custodian hit one of the schoolchildren for calling him a name? Is the school district liable?

No

Holding out an envelope, Alan says, "Ben, I'm giving you these opera tickets." Without taking the envelope, Ben replies, "Why would I want opera tickets? Loser." Alan leaves, crestfallen. Later that day, a girl whom Ben has liked for some time says, "I sure wish I were going to the opera tonight." Ben scrambles, calls Alan, and says, "Alan, old buddy, I accept your gift of the opera tickets. I'm on my way over to pick them up." Does Ben have a legal right to the tickets?

No because Ben did not accept the gift when offered.

At Business University, semester enrollment begins at midnight on April 1. Jasper asked his roommate, Alonso, to register him for an important required course as a favor. Alonso agreed to do so but then overslept. As a result, Jasper could not enroll in the required course he needed to graduate and had to stay in school for an additional semester. Is Alonso liable to Jasper?

No, because Alonso was not grossly negligent.

Kurt asked his car mechanic, Quinn, for help in buying a used car. Quinn recommends a Ford Focus that she has been taking care of its whole life. Quinn was working for the seller. Which of the following statements is true?

Quinn must pay Kurt the amount of money she received from the Ford's prior owner.

Sally is sent home from school with the chicken pox. Her father takes her to a pediatrician who says that she will be fine in about a week and in the meantime just needs bed rest and plenty of fluids. Is Sally's father entitled to leave under the FMLA to care for Sally?

No, because treatment for Sally's illness only needed one visit to a health-care provider, without any course of treatment or prescription medication.

Dr. James Leonard wrote Dr. Edward Jacobson to offer him the position of chief of audiology at Jefferson Medical College in Philadelphia. In the letter, Leonard stated that this appointment would have to be approved by the promotion and appointment committee. Jacobson believed that the appointment committee acted only as a rubber stamp, affirming whatever recommendation Leonard made. Jacobson accepted Leonard's offer and proceeded to sell his house and quit his job in Colorado. You can guess what happened next. Two weeks later, Leonard sent Jacobson another letter, rescinding his offer because of opposition from the appointment committee. Did Leonard have apparent authority?

No. Leonard had told Jacobson that he did not have authority. If Jacobson chose to believe otherwise, that was his problem.

Donor

Someone who makes a gift or creates a trust.

During a job interview with Venetia, Jack reveals that he and his wife are expecting twins. Venetia asks him if he is planning to take a leave once the babies are born. When Jack admits that he would like to take a month off work, he can see her face fall. She ultimately decides not to hire him because of the twins. Which of the following statements are true?

None of the above.

Additional terms

Proposed contract terms that raise issues not included in the offer

Life insurance

Provides for payments to a beneficiary upon the death of the insured

Quick Corp. agreed to purchase 200 typewriters from Union Suppliers, Inc. Union is a wholesaler of appliances and Quick is an appliance retailer. The contract required Union to ship the typewriters to Quick by common carrier, "FOB Union Suppliers, Inc. Loading Dock." Which of the parties bears the risk of loss during shipment?

Quick, because the risk of loss passes when the typewriters are delivered to the carrier

UCC §2-201

Requires a writing for any sale of goods of $500 or more

Fay Witcher owned a Ford Bronco. Steve Risher operated a used car lot. Witcher delivered his automobile to Risher, asking him to resell it if he could. Witcher specified that he wanted all cash for his car, not cash plus a trade-in. Risher sold the car to Richard Parker for $12,800, but he took a trade-in as part payment. Risher promised to deliver the Bronco's certificate of title to Parker within a few days but never did. He was also obligated to deliver proceeds of the sale to Witcher, and, of course, he failed to do that. Parker claimed that the car was rightfully his. Witcher argued that Parker owned nothing because he never got the title and because Witcher never got his money. Who loses?

Risher was a merchant dealing in automobiles, meaning that Witcher did entrust the car to him. Parker was a BIOC: He acted in good faith, without knowing that the sale violated the agreement between Witcher and Risher. Parker wins, and he keeps the car.

Ralph has worked as model builder at Snowdrop Architects for thirty years. The firm replaces him with Charlotte who is only 24 and willing to work for 30% less than his salary. The firm never offered to let him stay for less pay. When he left, one of the partners told him, "Frankly, it's not a bad thing to have a cute young person working with the clients." Which of the following statement is true?

Snowdrop is not liable because age was not the deciding factor in Ralph's firing.

Grantor or settlor

Someone who creates a trust.

Healthcare proxy

Someone who is appointed to make healthcare decisions on behalf of a person who is not competent to do so

When Sony released its PlayStation 3 (PS3), it represented that the gaming system: (1) connected to the PlayStation Network, (2) had the ability to run other operating systems, and (3) was expected to last for over ten years. But the product's terms of service provided that future updates might disable some functions. Four years later, Sony's software update forced users to choose between features (1) and (2) listed above. Disgruntled gamers sued, claiming that Sony made an express warranty that the PS3 would work as promised for ten years, but took away a fundamental product feature after only four years. Was Sony's representation an enforceable express warranty?

Sony's representation is not very clear in terms of if features 1 and 2 are supposed to last/supported for 10 years. The 3rd representation can simply mean Sony planned to support PS3 for 10 years i.e. service or replacement of parts if required. The 3rd point does not necessarily mean the features 1 and 2 are for 10 years. Hence, from a buyer's perspective, Sony's representation of point 3 is not an enforceable express warranty.

Different terms

Terms that contradict those in the offer

Cookie Co. offered to sell Distrib Markets 20,000 pounds of cookies at $1.00 per pound, subject to certain specified terms for delivery. Distrib replied in writing as follows: "We accept your offer for 20,000 pounds of cookies at $1.00 per pound, weighing scale to have valid city certificate." Under the UCC:

The "valid city certificate" phrase raises a new issue; it does not contradict anything in Cookie's offer. That means it is an additional term and becomes part of the deal unless Cookie insisted on its own terms, the additional term materially alters the offer, or Cookie promptly rejects it. Cookie did not insist on its terms, this is a minor addition, and Cookie never rejected it. The new term is part of a valid contract.

Dale turns 18. For his birthday, he gets $500 cash and his grandmother's ancient station wagon. And yes, it is the kind with wood paneling on the side. Dale cannot do much about how the car looks, but he decides that he can at least make it sound awesome. So, he immediately takes the car to Big Mike's Custom Stereo. At Big Mike's, Dale makes a verbal agreement to buy an amplifier and two Rockford Fosgate speakers and to have them installed at a cost of $499. The amp and speakers come to $420, and the installation charge is $79. He decides to have them installed while he waits. After an hour, a clerk finds him and says, "Hey, man, we're out of stock on those speakers. But I can get you some Alpines right now—same size, same price, just as loud." Dale is eager to drive out with a new system, and agrees to the speaker substitution. Moments later, Dale finds the clerk and says, "Wait, I'm not sure about all of this. I don't think I want to buy any of it after all." Can Dale get his money back, or is he stuck with his purchases?

The UCC governs this contract because the speakers are much more expensive than the labor. The contract does not have to be in writing because it is for less than $500. The agreement to use Alpine speakers rather than Rockford Fosgates is enforceable, even without consideration for the change. Dale will have to live with the deal, including the Alpine speakers.

Shannon borrows Marty's car, but when she returns the auto, she hands the keys to Scott, who claims he is Marty's brother. Scott offers a driver's license and passport to reassure Shannon. Scott is actually a con artist. Marty sues Shannon. Outcome? (a) Marty will win. (b) Marty will win only if a reasonable person would have spotted the fraud. (c) Marty will win only if he in fact has no brother named Scott. (d) Marty will lose because Scott offered reasonable identification.

The bailee is strictly liable to redeliver the goods to the bailor. There are no excuses. The "reasonable person" standard does not apply. Marty will win.

Assume that a contract is modified. New consideration must be present for the modification to be binding if the deal is governed by which of the following?

The common law

When Theodore Staats went to his company's "Council of Honor Convention," he was accompanied by a woman who was not his wife, although he told everyone she was. The company fired him. Staats alleged that his termination violated public policy because it infringed upon his freedom of association. He also alleged that he had been fired because he was too successful—his commissions were so high, he out-earned even the highest-paid officer of the company. Has Staats's employer violated public policy?

The court held that freedom of association is an important social right and should be protected. However, being fired for bringing a lover to an employer's convention is not a threat to public policy. Nor is discharge for being too successful.

When Phil McConkey interviewed for a job as an insurance agent with Alexander & Alexander, the company did not tell him that it was engaged in secret negotiations to merge with Aon. When the merger went through soon thereafter, Aon fired McConkey. Was Alexander liable for not telling McConkey about the possible merger?

The court held that when Alexander hired him, it was making an implied promise that he would not be fired immediately. The company was liable for not having revealed the merger negotiations.

On September 10, Bell Corp. entered into a contract to purchase 50 lamps from Glow Manufacturing. Bell prepaid 40 percent of the purchase price. Glow became insolvent on September 19 before segregating, in its inventory, the lamps to be delivered to Bell. Bell will not be able to recover the lamps because:

The lamps were not identified to the contract.

Estate

The legal entity that holds title to assets after the owner dies and before the property is distributed.

For a contract governed by the UCC sales article, which one of the following statements is correct?

The obligations of the parties to the contract must be performed in good faith.

UCC §2-305

The parties may conclude a contract even though they have not settled the price.

Forced share or statutory share

The percentage of a decedent's estate that a spouse is entitled to claim, regardless of the will's content

Probate

The process of carrying out the terms of a will.

Estate planning

The process of giving away property after (or in anticipation of) death.

While shopping at his local mall, Fred buys an iPad for $399, a barbecue grill for $509, and then pays $25 to have his watchband cleaned. Which of Fred's transactions are governed by Article 2 of the UCC?

The purchases of the iPad and the barbecue grill are covered by Article 2 of the UCC. Both agreements involve goods.

Noelle was the principal of a charter school and an employee at will. The head administrator imposed a rule requiring cafeteria workers to stamp the hands of children who did not have sufficient funds in their lunch accounts. Some of these children were entitled to free lunches, others needed to ask their parents to replenish their accounts. Noelle directed the cafeteria workers to stop this humiliating practice. The administrator fired her. Does Noelle have a valid claim for wrongful termination?

The school administrator can fire her for any reason except for any bad reason.

Under the UCC sales article, an action for breach of the implied warranty of merchantability by a party who sustains personal injuries may be successful against the seller of the product only when:

The seller is a merchant of the product involved

While drunk, the driver of a subway car plows into the back of the car ahead of him, killing a passenger. It was against the rules for the driver to be drunk. Is the subway authority liable for the negligence of its employee?

The subway authority is liable.

Cox engaged Datz as her agent. It was mutually agreed that Datz would not disclose that he was acting as Cox's agent. Instead he was to deal with prospective customers as if he were a principal acting on his own behalf. This he did and made several contracts for Cox. Assuming Cox, Datz, or the customer seeks to avoid liability on one of the contracts involved, which of the following statements is correct?

The third party may choose to hold either Datz or Cox liable.

Universal Consolidated Cos. contracted with China Metallurgical Import and Export Corp. (CMIEC) to provide CMIEC with new and used equipment for a cold rolling steel mill. Universal then contracted with Pittsburgh Industrial Furnace Co. (Pifcom) to engineer and build much of the equipment. The contract required Pifcom to deliver the finished equipment to a trucking company, which would then transport it to Universal. Pifcom delivered the goods to the trucking company as scheduled. But before all of the goods reached Universal, CMIEC notified Universal it was canceling the deal. Universal, in turn, notified Pifcom to stop work, but all goods had been delivered to the shipper and ultimately reached Universal. Pifcom claimed that it retained title to the goods, but Universal claimed that title had passed to it. Who is right?

The title had passed on to Universal as the goods had reached Universal.

Jonah tells his friend Derek that he would like to go parasailing. Derek suggests that they try an outfit called Wind Beneath Your Wings because he has heard good things about it. Derek offers to arrange everything. He makes a reservation, puts the $600 fee on his credit card, and picks Jonah up to drive him to the Wings location. What a friend! But the day does not turn out as Jonah had hoped. While he is soaring up in the air over the Pacific Ocean, his sail springs a leak, he goes plummeting into the sea and breaks both legs. During his recuperation in the hospital, he learns that Wings is unlicensed. He also sees an ad for Wings offering parasailing for only $350. And Derek is listed in the ad as one of the company's owners. Was Derek Jonah's agent? Has he violated his fiduciary responsibility?

There is an agency relationship: Derek had agreed to help Jonah; it was Jonah who set the goal for the relationship (parasailing); the purpose of this relationship was for one person to benefit another. It does not matter if Derek was not paid or the agreement not written. Derek has violated his duty to exercise due care. He should not have taken Jonah to an unlicensed company. He has also violated his duty to provide information: He should have told Jonah the true cost for the lessons and also revealed that he was a principal of the company. And he violated his duty of loyalty when he worked for two principals whose interests were in conflict.

A.C. Furniture (ACF) manufactured custom furniture for national restaurant chains. A representative of Arby's Restaurant Group emailed ACF an order for 4,500 chairs at $44 per chair, with detailed specifications of seat pads, model numbers, and Arby's signature colors. A year later, Arby's emailed a request for 3,300 more of the same chairs. ACF custom made 7,800 chairs to Arby's specs, but Arby's only purchased 1,117. ACF sued Arby's, but the restaurant chain argued that the parties never had an enforceable contract and moved to dismiss. Who wins and why?

This contract are create fraud and case of the court are win A.C. furniture group. 1) Ans: Uniform Commercial Code are the apply of manufacturing company. This contract are also must be enforce and legal contract between two parties. 2) Ans: Yes, i am believe the case and win A.C furniture. ACF are the legal contract to the other parties but second parties are create fraud to ACF.

Coffee Retailer sends a form to Cupper, ordering 100 cartons of specified coffee cups to be delivered the first of each month for six months. The order form says nothing about price. For three months, Cupper delivers on time and sends an invoice, which Retailer pays. On the fourth month, Cupper's invoice is 8 percent higher than before. Retailer refuses to pay the increase and informs Cupper that it will accept no more deliveries. Cupper sues. Retailer claims there was no enforceable contract. Cupper says there was a bargain and that it has the right to determine the price. Who is right?

This contract neither stated a price nor allowed one party to determine it. That means that the price is a reasonable one at the time of delivery. A court will use market value, and any comparable sales, to determine the price.

One afternoon while visiting friends, tennis star Vitas Gerulaitis fell asleep in their pool house. A mechanic had improperly installed the swimming pool heater, which leaked carbon monoxide fumes into the house where he slept, killing him. His mother filed suit against the owners of the estate. On what theory would they be liable?

This could fall under the theory of the principle's liability for independent contractor. Here, the owner could be liable for the mechanic's negligence if the owner was negligent in hiring or supervising him.

Jim Dan, Inc., owned a golf course that had trouble with crabgrass. Jim Dan bought 20 bags of Scotts Pro Turf Goosegrass/Crabgrass Control for $835 and applied it to the greens. The Pro Turf caused over $36,000 in damage to the greens. Jim Dan sued Scotts. Scotts defended by claiming that it sold the Pro Turf with a clearly written, easy-to-read disclaimer that stated that in the event of damage, the buyer's only remedy would be a refund of the purchase price. Jim Dan, Inc., argued that the clause was unconscionable. Please rule.

This is a bargain between two businesses, and courts rarely find clauses in such agreements unconscionable. The assumption is that sophisticated business people understand what they are getting into and are able to protect themselves. If Jim Dan could run a golf course, the company was sophisticated enough to understand the simple disclaimer in this contract. Scotts wins.

John C. Clark, using an alias, rented a Lexus from Alamo Rent-A-Car in San Diego, California. Clark never returned the car to Alamo and obtained a California "quick title" using forged signatures. He then advertised in the Las Vegas Review Journal newspaper and sold the car to Terry and Yvonne Mendenhall for $34,000 in cash. The Mendenhalls made improvements to the car and had it insured, smog- and safety-tested, registered, licensed, and titled in the state of Utah. When Alamo reported the car stolen, the Nevada Department of Motor Vehicles seized the auto and returned it to Alamo. The Mendenhalls sued Alamo. The trial court concluded that the Mendenhalls had purchased the car for value and without notice that it was stolen, and so they were bona fide purchasers entitled to the Lexus. Alamo appealed. Please rule.

Thus, in the given case time has elapsed from the time of stealing the vehicle till the time it was sold to the Mendenhalls is crucial and too long. Thus, the Trial Court's decision stands good.

Intestate

To die without a will

Estate planning has two primary goals:

To ensure that property is distributed as the owner desires and to minimize estate taxes

Franklin Miller operated Miller Seed Co. in Pea Ridge, Arkansas. He bought, processed, and sold fescue seed, which is used for growing pasture and fodder grass. Farmers brought seed to Miller, who would normally clean, bag, and store it. In some cases, the farmers authorized Miller to sell the seed, in some cases not. Miller mixed together the seed that was for sale with the seed in storage so that a customer could not see any difference between them. Miller defaulted on a $380,000 loan from the First State Bank of Purdy. First State attempted to seize all of the seed in the store. Tony Havelka, a farmer, protested that his 490,000 pounds of seed was merely in storage and not subject to First State's claim. Who is entitled to the seed?

Tony Halvelka would win and be entitled to his share of seeds as he acted in good faith and commercially reasonable manner and Franklin must bear the loss.

Consider the following: I. A house (value: $250,000) II. The giant high-definition smart television in the house (value: $2,999) III. The land that the house sits upon (value: $30,000) IV. An old car in the house's garage (value: $5,001) How many of these items are personal property?

Two of them

A principal will not be liable to a third party for a tort committed by an agent:

Unless the tort was committed within the scope of the agency relationship.

Durable power

Valid even if the principal can no longer make decisions for herself

Vick bought a used boat from Ocean Marina that disclaimed "any and all warranties." Ocean was unaware that the boat had been stolen from Kidd. Vick surrendered it to Kidd when confronted with proof of the theft. Vick sued Ocean. Who prevails?

Vick, because the implied warranty of title has been breached

An unemployed CPA generally would receive unemployment compensation benefits if the CPA _______________.

Was fired as a result of the employer's business reversals.

Under the UCC Statute of Frauds, a contract must be signed by the _______________ to count as being "in writing." Also, the _______________ of the goods must be written.

defendant; quantity

Sam obtains a Patek Philipe watch from Greg by fraud. It has a retail price of $10,000. He sells it to Melissa for $9000. She believes he owns the watch. Melissa ________ a bona fide purchaser. Sam disappears. If Greg discovers that she has the watch and demands that it be returned, Melissa _________ have to give the watch to Greg.

is; will not

Craig finds a rare 1955 doubled-die penny, worth $1,500, on a city sidewalk outside a coin collectors' convention. The penny is _______________ property. If the true owner cannot be found, then the penny will belong to _______________.

lost; Craig