Business Law Exam 1- COURT CASES

Phillip Morris USA v. Williams Precedent

1. Can't have award of so much punitive damages to parties not associated with the lawsuit 2. 100 times compensatory damages- Supreme Court does not consider Basically overturns Grimshaw unless you have very specific problems

World-Wide Volkswagen Corp. v. Woodsdon Precedent

A case must be brought forth in a plaintiff-friendly area that has sufficient minimal contracts between the defendant and state for state to exercise jurisdiction

Thor Properties v. Willspring Holdings LLC Precedent

A counteroffer generally operates as a rejection and thus terminates the power of acceptance

Neugebauer v. Neugebauer Precedent

A transaction induced by undue influence on the part of the dominant party is voidable by the unduly influenced party

Ryan v. Friesenhahn Precedent

A violation of a statute constitutes negligence per se if the injured party is a member of the class protected by the statute Status depends on state, but if someone violates a statute by ex. serving alcohol to minor or contributing to intoxication, will be held to negligence per se Made to target the last person who could've stopped the action

Soldano v. O'Daniels Precedent

Although a person may not have a duty to help another, in a case such as this, a person has a duty not to hinder others who are trying to help

Lefkowitz v. Great Minneapolis Surplus Store, Inc. Precedent

Although advertisements generally do not constitute offers, under some circumstances they do

Steinberg v. Chicago Medical School Precedent

An agreement meeting all of the requirements of a contract is binding and legally enforceable

Fox v. Mountain West Electric, Inc. Precedent

An implied in fact contract is formed by conduct of parties, in cases in which contract provides for both goods and services, common law applies if the predominant factor of the contract is the provision of services UCC (Universal Commercial Code)

Berardi v. Meadowbrook Mall Company

Berardis leased space for three restaurants from Meadowbrook Mall company- 1990 delinquent in rent and informed that lawsuit would be filed requesting judgment for total amount owed- granted-make agreement that don't need to pay if continue working restaurants- tries to refinance at same time as lein and agree to pay and then claim extorted under duress- judgment affirmed in favor of mall

Ryan v. Friesenhahn

Boy held open invitation party at his parents' home that encouraged guests to BYOB- girl Sabrina attends party, becomes intoxicated, involved in fatal accident when left- Sabrina's parents sued Friesenhahns for negligence, trial court grants summary judgment for Friesenhahns and then judgment reversed because of Alcoholic Beverage Code and negligence

Frank B. Hall & Co., Inc. v. Buck

Buck works for Frank V. Hall insurance and brought in several major accounts and produced substantial commission income, fired because claimed failed to generate substantial income, private investigator contacts firm and says Buck was disruptive, hostile and ruthless- Buck wins case and lots of money in damages

Burmingham v. Westgate Resorts, Ltd.

Burmingham and Wesstgate Resorts entered into real estate purchase contract in which Burmingham agreed to purchase Park City condo for 899,000 and makes 10 percent down payment but then market crashes and wants to sign for different price and eventually does but still argues over down payment and judgment rules in favor of Burmingham

Ford v. Grimshaw Precedent

Case stands for crook responsibility If a corporation deliberately makes something dangerous, will be subjected to damages (crook responsibility)

Klein v. Pyrodyne Corporation Precedent

Courts impose strict liability for harm resulting from an abnormally dangerous activity, as determined in light of the place, time, and manner in which the activity was conducted Strict liability: if you participate in this type of activity, only thing needed is someone to show they were injured

Bouton v. Byers Precedent

Courts will enforce a promise that the promisor should reasonably expect to induce detrimental reliance by the promise if the promise takes such action and justice requires enforcement

Frank B. Hall & Co., Inc. v. Buck Precedent

Defamation means that statements made are false, injure plaintiff's reputation, and are published.

People v. Farell

Defendant charged with theft of a trade secret because had printed specifications for computer chips on last day on the job and question becomes whether the amount of the theft applies to theft of property other than money and court concluded that applies to property of all value then court of appeal reversed then supreme court of california reversed again

Berardi v. Meadowbrook Mall Company Precedent

Economic duress consists of unlawful threats or wrongful, oppressive, or unconscionable conduct by one party that leaves the other party no reasonable alternative but to acquiesce to the terms of a contract

Palsgraf v. Long Island Railroad Co. Precedent

Even if the defendant's negligent conduct in fact caused harm to the plaintiff, the defendant is not liable if the defendant could not have foreseen injuring the plaintiff or a class of persons to which the plaintiff belonged If something can't be foreseen, it can't be prevented

Burmingham v. Westgate Resorts, Ltd. Precedent

For a mistake to render a contract voidable, it must be a mutual mistake of fact

Maroun v. Wyreless Systems, Inc. Precedent

Fraud generally must be based on a material fact and not on predictions or a person's opinions

Lefkowitz v. Great Minneapolis Surplus Store, Inc.

Great Minneapolis Surplus Store published advertisement that would sell 3 fur coats for $1 to first three customers- Lefkowitz first but refuse to sell because he is a man- next week similar ad for scarves and black lapin stole and Lefkowitz arrives and again refused to sell- Appeal from judgment awarding plaintiff sum of 138.5 for breach of contract and judgment affirmed

Ford v. Grimshaw

Grimshaw is child passenger who had severe burns from rear end collision where gas tank exploded and collision was a result of Ford knowing that gas tank problem- Ford had put price on a human life v. additional cost of production with cars and CEO of Ford signs off on not placing in cars and letting humans die- appellate court asks if can charge for punitive damages and compensation and jury agrees and awards lots of money but plaintiff didn't request punitive damages awarded- poster child for how law can change the way people act

Louisiana v. Hamed

Hamed was employee of company that had agreed to pay for fuel but then checks are returned for nonsufficient funds charged by bill of information with one count of issuing worthless check over 1500- court of appeals reverses defendant's conviction and sentence since he was acting as an agent

World-Wide Volkswagen Corp. v. Woodson

Harry and Kay Robinson purchased new Audi automobile from Volkswagen in NY and left for new home in Arizona, another car struck them from behind in Oklahoma and caused fire that severely burned Kay and her two children- Robinsons brought products liability suit in court in Oklahoma claiming injuries resulted from defective design of Audi gas tank and World-Wide (audi producer) argued that Oklahoma's exercise of jurisdiction over them offended limitations on state jurisdiction imposed by Due Process Clause-Oklahoma Supreme Court upheld but US Supreme Court reversed because sufficient minimal contracts between defendant and state must exist for jurisdiction

Jasdip Properties SC, LLC v. Estate of Richardson Precedent

Implied in law or quasi contracts are not considered contracts at all, but are akin to restitution which permits recovery of that amount the defendant has been benefited at the expense of the plaintiff in order to prevent unjust enrichment

Moore v. Kitsmiller Precedent

In cases where both parties are negligent, under comparative negligence law apportions damages between parties in proportion to degree of fault or negligence found against them

Love v. Hardee's Food Systems, Inc.

Jason Love and mother went to Hardee's Restaurant in Missouri and went to bathroom, slipped, hit head and hurt leg- underwent two back surgeries, missed work, suffered from continuing pain and limitations, manager didn't know when was last checked and sheets of schedule were thrown away- jury found verdict in plaintiff's favor in amount of 125,000 and trial court affirmed

Osprey L.L.C. v. Kelly-Moore Paint Co., Inc.

Kelly-Moore Paint Co entered into fifteen year commercial lease with Osprey and contained two five year renewal options and required lessee give notice of intent to leave at least six months prior to expiration- after 15 year continue into another 5 and then on last day of notification period, Kelly-Moore faxed letter of renewal notice and sent copy that arrived next day- Osprey denies receiving fax and says faxing wasn't accepted in contract and Osprey rejected saying too late- trial court grants judgment in favor of Kelly-Moore, Osprey appeals, Civil Appeals reverses, Court of Appeals vacated and decision of trial court affirmed

Sherrod v. Kidd

Kidd's dog bit Mikaila Sherod and guardian ad litem made claim where offer to settle then Mikaila denies and sues and Kidds raised settlement offer but then subject to arbitration and arbitrator awarded less then previous offer and so Mikaila writes that wants to get higher offer- court concludes offer properly accepted because had not been withdrawn and entered judgment in amount of first offer then trial reverses decision- offer expired when arbitrator announced award and not subject to being accepted

Moore v. Kitsmiller

Kitsmiller purchased house in Van Zandt County to use as rental property then hired B&H Shaw Co to install a replacement septic tank in backyard then rented out to Moore and wife and believed dirt around septic system firm but when went out on stoop for the first time, unable to see ground and falls and hurts back and head and Moore testified Kitsmiller should have notified him where septic tank and lateral lines located- jury determines that both were negligent but Kitsmiller was 51 percent negligent and Moore was 49 percent

Ferrell v. Mikula

Kristie and Raquel were teenagers eating at Ruby Tuesday's, paid bill and left restaurant, Waiter Robert told Mikula that table left without paying and security guard follows them down highway, marked police car arrests girls and then are released and parents file claim that were falsely imprisoned and emotional distress and trial court grants summary judgment where find there was false imprisonment but no emotional distress

Fox v. Mountain West Electric, Inc.

Lockheed Martin Idaho Technical Company requested bids for comprehensive fire alarm system in twelve buildings located in Idaho Falls and Mountain West Electric worked together to install- agreed on dividing joint fixed price contract but then could not agree on arrangement for compensation- Fox left project and MWE contracted with diff place to complete project- Fox compalined seeking money owed for materials and services- district court in favor of MWE and decision reaffirmed

Petition of Kinsman Transit Co.

MacGilvray Shiras ship owned by Kinsman and during winter when lake was frozen, ship held at docks on buffalo river, one night ice jam disintegrated upstream and sent large chunks of ice that began to pile up against Shiras- ship hit bridge and both ships crashed and dammed river for three miles- trial court found defendants liable and trial court affirmed

State of South Dakota v. Morse

Morse hired to convert bedroom into bathroom, took longer and cost more then had to abandon project because of injury and licensed plumber brought to assess and concluded work was bad so charged with theft by deception- state reverses guilty decision because didn't have intent to do a bad job

Neugebauer v. Neugebauer

Neugebauers owned farm and after death of father, child Lincoln (1 of 7 children), took care of land and then with other son, Dennis, formed partnership that had an option to purchase farm for price and then Pearl continued to live there- Dennis dropped and Lincoln left in charge- meets with attorney and forms contract that has mom sign who is very old and claims wasn't aware of what was signing-once realizes what contract was asks for it to end- Lincoln refuses- trial court affirms that Lincoln exerted undue influence

Sherrod v. Kidd Precedent

Offer is open only for a reasonable amount of time

Love v. Hardee's Food Systems, Inc. Precedent

Owner or possessor of property is liable to an invitee if the owner knew or, by using ordinary care, could have known of the dangerous condition and failed to use ordinary care to remove it, barricade it, or warn of it, and the invitee sustained damage as a direct result of such failure Because was a business invitee, must keep the inside safe to a reasonable extent and not having records makes them liable

Palumbo v. Nikirk Precedent

Owners and possessors of domestic animals are subject to strict liability if they knew, or had reason to know, of the animal's vicious propensities Every dog allowed one free bite

Palsgraf v. Long Island Railroad Co

Palsgraf was on railroad station platform buying a ticket when a train stopped at the station- when departed two men ran to catch it, after first was safely aboard, second jumped and guard pushed man from behind, package with fireworks exploded, knocked over scale on other side that landed on Palsgraf, railroad appealed from trial and appellate courts and judgment reversed

Palumbo v. Nikirk

Palumbo was mail carrier who sustained injuries when was bitten and attacked by dog on front steps of defendant's home

Texaco, Inc. v. Pennzoil, Co.

Penzoil makes a contract to purchase all of oil stock held by Getty Oil and Museum for $110/share plus bonus- after info released, Texaco tries to come up with with better deal and Penzoil withdrew and takes Texaco and Penzoil sues Texaco and wins 7.53 billion in compensatory and 3 billion in punitive damages based on tortious interference with contract

Bouton v. Byers

Plaintiff Bouton held tenure track teaching position on Washburn U School of Law faculty and earned about 100,000/year but quit when believed father promised to give valuable ranch but he denied promise- Byers effectively disinherited Bouton by selling land and signing new trust- Bouton filed action seeking damages on a promissory estoppel theory in an amount equal to what would have earned had continued- District Court didn't find evidence of promise but appealed and was reversed and remanded

Thor Properties v. Willspring Holdings, LLC

Plaintiff Thor properties brought action for breach of contract to sell it mixed used building in Manhattan- Thor emailed Wisspring letter of intent offering to buy property for 111 million under terms that include Willspring's transfer of property free of liens and then goes back and forth until eventually Thor claims that accepted offer even though had made changes to the offer that weren't reviewed- Willspring decides to sell to third party- supreme court NY grants willspring's motion for summary judgment and dismiss then judgment reaffirmed

Kelin v. Pyrodyne Corporation

Pyrodyne corporation contracted to conduct fireworks display at Washington State Fairgrounds and one five inch mortar was knocked and shell inside ignited and discharged and exploded near onlookers- Danny and Marion Klein injured with burns and eye injuries and courts rule in favor of kleins

Reed v. King

Reed bought house from King for 76,000- King knew that woman and her four children had been murdered in house ten years earlier and allegedly knew that the event had materially affected market value but did not tell Reed about murder- after sale, neighbors told Reed about murders and cost of home only 65,000- Reed brought action against King alleging fraud- judgment ruled in favor of Reed

Catamount Slate Products, Inc. v. Sheldon

Reed family owns and operates slate products, a slate quarry- Sheldon is neighbor and two have been fighting over access to road for years, state funded mediation with judge- mediation held and after hours reach agreements and lawyers are to make necessary documents- Reeds to pay Sheldon 250/month for right to use access road, parties also agree to series of terms governing operation of slate quarry- continue going back in forth so checks delivered to escrow account- Reeds daughter believes road is actually owned by state and Reeds refuse to proceed- Sheldon files motion to enforce settlement agreement- trial court grants opinion, judgment of trial reversed and remanded

Steinberg v. Chicago Medical School

Robert Steinberg applied for admission and got rejected and brought action claiming decision primarily based on non-academic considerations (family connections and wealth) which breached contract when school accepted $15 acceptance fee- trial court grants defendant's motion to dismiss and trial court's dismissal reversed and remanded

White v. Samsung Electronics

Samsung uses a robotic representation of Vanna White, hostess of wheel of fortune, in an advertisement but White had not consented to this and wasn't paid for ads and sued for using her identity/image that was exploited without her permission- court granted summary judgment against White then was reversed

Soldano v. O'Daniel's

Soldano was shot and killed at Happy Jack Saloon- defendant owns and operates Circle Inn across the street- patron of Happy Jack went to Circle Inn and informed of threat and requested call to police and then asked to use phone but bartender refused both- plaintiff alleges actions of employee were breach of legal duty that Circle Inn owed- trial court dismissed case on defendant's motion for summary judgment and appellate court reersed and remanded case for trial

Jasdip Properties SC, LLC v. Estate of Richardson

Stewart Richardson and JASDIP properties (buyer) entered into agreement for purchase of property in South Carolina for 537,000 and buyer paid initial deposit of 10,000 then Richardson granted buyer extensions to closing date in return for additional payments but buyer unable to close in timely fashion and rescinded contract- buyer claimed seller unjustly enriched if allowed to keep money despite rescinding- jury decides neither breached contract and trial court denied claim but court of appeals reversed and remanded

Catamount Slate Products, Inc. v. Sheldon Precedent

The intent of the parties to be bound to a contract is determined by an objective standard of what a reasonable person would have believed based on the words and conduct of the parties

People v Farell Precedent

The requirement imposing a minim term in county jail applies to the theft of property other than money, including trade secrets--> even if one has not sold something, if intend to sell it is still theft by intent

State of South Dakota v. Morse Precedent

There must be mental intent (mens rea) in order to commit a crime (theft by intent)

Maroun v. Wyreless Systems, Inc.

Tony Y. Maroun employed by Amkor when accepts to work for Wyreless start up and Wyreless promises annual salary of 300,000, 300,000 bonus for successful org, 15 percent of issued equity, and organization bonus, full medical benefits, etc. but is fired before can receive and claims fraud and district court rules in favor of Wyreless

Texaco Inc. v. Pennzoil, Co. Precedent

Tort of interference with contractual relations protects a party to a contract from a third party who intentionally and improperly induces the other contracting party not to perform the contract

Louisiana v. Hamed Precedent

Under Louisiana statute, offense of issuing a bad check requires that defendant knew that he had not sufficient credit with the bank, not whether his actual monetary balance was insufficient to cover a check, draft or order for payment- if one is acting as an agent and funds are not within control, found not guilty

Petition of Kinsman Transit Co. Precedent

Unforeseeability of the exact manner and extent of a loss will not limit liability where the persons injured and the general nature of the damage were foreseeable Even if couldn't see exact damages, should have been able to see that there could be these damages

Osprey L.L.C. v. Kelly-Moore Paint Co., Inc. Precedent

Where the language in the offer or the circumstances does not otherwise indicate, an offer to make a contract shall be construed as authorizing acceptance in any reasonable matter

Philip Morris USA v. Williams

Williams died of lung cancer at age 67 after life spent smoking 3 packs of Marlboro cigarettes per day and widow sues maker alleging that company had engaged in a deliberate, wide-spread campaign of misinformation on danger of smoking and jury awarded her 800,000 in compensatory and 79.5 million in punitive damages

Reed v. King Precedent

a representation is material if it is likely to influence or affect a reasonable person

Ferrell v. Mikula Precedent

false imprisonment is unlawful detention of the person of another, for any length of time, whereby such person is deprived of his personal liberty unless there is a legally recognized justification emotional distress must be intentional or reckless conduct that is extreme and outrageous and that causes severe emotional distress

White v. Samsung Electronics Precedent

tort of appropriation protects a person's exclusive right to exploit the value of her identity