BUSINESS law Final

How does the presence—or lack—of diversity of citizenship affect a lawsuit?

A federal district court can exercise original jurisdiction over a case involving diversity of citizenship. There is a second requirement to exercise diversity jurisdiction—the dollar amount in controversy must be more than $75,000. In a case based on diversity, a federal court will apply the relevant state law, which is often the law of the state in which the court sits.

Bret was an experienced skier when he rented equipment to ski at Hunter Mountain Ski Bowl in NY. Bret entered a difficult trail and immediately noticed it was mostly ice, not snow. Tried to exit by making a sharp right turn, but his left ski snapped off. he lost his balance, fell and slid down the mountain striking his face and head against a fence along the trail. According to a report by a rental shop employee, one of the bindings on Bret's skis had a "cracked heel housing." Bret filed a lawsuit against the bindings' manufacturer on a theory of strict product liability. The manufacturer filed a motion for summary judgment.

A. The court should grant the manufacturer's motion for summary judgment and dismiss D'Auguste's complaint; no proof that the crack was substantial enough to cause the ski to come off; no proof that the crack was in the binding attached to the ski; no evidence that the crack constituted a defect; the "snap off" of the left ski may have been caused, not by a defect in the binding, but by negligence in the setting of the bindings. B. The court should deny the manufacturer's motion for summary judgment and allow D'Auguste's claim to proceed. Despite the lack of proof with respect to the cracked heel housing noted in the previous answer, D'Auguste could still shoe that there was a defect in the binding and succeed in his action if he could prove that the product did not perform as intended and exclude all other causes for the product's failure that are not attributable to the defendant.

NYC enacted an ordinance to regulate locations of commercial establishments that featured adult entertainment; only applied to females; Buzzetti and an anonymous dancer filed a suit in a federal district court against the city, asking the court to block the enforcement of the ordinance. The plaintiffs argued, in part, that the ordinance violated the equal protection clause. Under the equal protection clause, what standard applies to the court's consideration of this ordinance? Under this test, how should the court rule? Why?

According to the standards applied to determine compliance with the equal protection clause, this ordinance's classification—a gender-based distinction—is subject to intermediate scrutiny. Under this standard, the court could dismiss the plaintiffs' complaint. Gender-based distinctions are acceptable in circumstances in which the two genders are not similarly situated. The city's objectives of preventing crime, maintaining property values, and preserving the quality of urban life, are legitimate and important. Regulation of female, but not male, topless dancing, in the context of the overall regulation of sexually explicit commercial establishments, could reasonably be interpreted as substantially related to achieving these objectives. The court might point out, for example, that males are often topless on beaches, in sporting events, during performances at the ballet, and in magazine photos without sexual suggestiveness. Female breasts are rarely exposed in public venues without sexual overtones, however. This arguably makes it permissible for the law to regard female toplessness differently from male toplessness.

BR crimestoppers offer a reward for info about the LA Serial Killer. The info was to be provided via a hotline. Dianne survived an attack by a suspect, she was able to id the man in a lineup and sought to collect the reward. BR crime refused to pay because she did not provide the info through the hot line. Did Alexander comply with the terms of the offer?

Alexander did not comply with the terms of this offer, and thus the offerors were not bound to pay her. She provided information to the police related to the arrest and indictment of the killer. But there was no indication in the offer that the police were the offerors or that they were authorized to receive acceptance of the requested information on behalf of the offerors.

Suppose that the trial court finds in Rabe's favor and grants one of these remedies. Sanchez then appeals the decision to a higher court. On appeal, which party will be the appellant (or petitioner), and which party will be the appellee (or respondent)?

Appellant- Sanchez; Appellee- Rabe

Baxter manufactures hair dryers. Julie purchased one from Ace Drugstore. Cox, a friend, took a shower and wants to dry her hair. Julie gives her the new hair dryer to use. As Cox plugs it in, sparks fly from the motor and continue as she operates it. Cox still begins to dry her hair. Suddenly, the entire dryer ignites into flames, severely burning Cox's scalp. Cox sues Baxter on the basis of negligence and strict liability in tort. Baxter admits that the dryer was defective but denies liability, particularly because Cox was not the person who purchased the dryer. In other words, Cox had no contractual relationship with Baxter. Discuss the validity of Baxter's defense. Are there any other defenses that Baxter might assert to avoid liability

Baxter's claimed defense of lack of privity of contract is invalid. Privity is not a requirement for an action either in negligence or in strict liability. Baxter's best defense is Cox's assumption of risk, which is a defense to both negligence and strict liability actions. There is no question that Cox knew of the defect in the dryer when she saw sparks upon plugging in the dryer. She also voluntarily continued to use the dryer with knowledge of the potential danger. Thus, unless such conduct would be expected from a reasonable person, Baxter has a good defense.

While gambling at PMC, Troy became angry and smashed a slot machine. He was banned. He came back despite the ban and won $9387. When he tried to collect his winnings, the casino refused to pay. Troy filed a suit for breach of contract, arguing they had a contract because he had accepted its offer to gamble. Did they have a contract?

Blackford had been banned for life from the casino. ... Under an objective test, unless the ban had been lifted, Blackford could not have reasonably believed he was among the class of individuals invited to accept Prairie Meadows's offer. The jury found that the ban against Blackford had not been lifted, and, therefore, Prairie Meadows had not extended him an offer to wager. Because there was no offer to him, no contract could result

Under what circumstances might a judge rely on case law to determine the intent and purpose of a statute?

Case law includes courts' interpretations of statutes, as well as constitutional provisions and administrative rules. Statutes often codify common law rules. For these reasons, a judge might rely on the common law as a guide to the intent and purpose of a statute

Kolchek bought a spa from Porter, a dealer selling spas at the state fair. Kochek signed an installment contract. Porter than handed her the manufacturer's paperwork and arranged for the spa to be delivered and installed. 3 months later, Kolchek left her 6 yr old daughter alone in the spa. She stuck her hand into one of the jet holes and was unable to remove her finger. She yanked hard, injuring her finger and then called for help. Kolchek had to call the local police and rescue team. After a 3 hour operation that included draining the spa, sawing out a section and slicing the jet casing the finger was freed. Spa was no longer functional. Her daughter broke her finger in two places. What defenses to product liability might Porter or Great Lakes be able to assert?

Comparative negligence allows the jury to compute the contributions of both parties to the situation. This results in the reduction or elimination of the plaintiff's recovery, depending on the state rule and the percent of negligence contributed. Leaving a six year old unattended in the spa may be deemed negligent and thereby reduce the plaintiff's ultimate recovery. ed from the time it was sold to the time the injury occurred.

State X requires people serving and preparing liquor be licensed. Mickey serves Gerald and his friends a bill of $600. When Gerald learns Mickey doesn't have a license he claims the contract is unenforceable.

Contracts made with unlicensed persons may or may not be enforceable; In this case, it appears that the license requirement is not tied to any skill necessary for the protection of the welfare of society. The only requirement is that the person be 21 years of age, but this is also the requirement for any person to be able to purchase liquors dispensed. Therefore, most courts would enforce the barbill contract Gerald owes, but would rule that Mickey is guilty of a misdemeanor.

Schmidt owns a small business, has a large piece of used farm equipment for sale. He offers to sell to Barry for $10,000. Schmidt dies prior to acceptance, and at the time he accepts, Barry is unaware of the death.

Death of either party automatically terminates offer

What is diversity of citizenship?

Diversity of citizenship exists when the plaintiff and defendant to a suit are residents of different states (or similar independent political subdivisions, such as territories). When a suit involves multiple parties, they must be completely diverse—no plaintiff may have the same state or territorial citizenship as any defendant. For purposes of diversity, a corporation is a citizen of both the state in which it is incorporated and the state in which its principal place of business is located.

Lothar has been trying to get a contract with Martha. Starts advertising campaign. Campaign is so persuasive that Martha tries to break current contract. Is Lothar liable for the tort of wrongful interference with a contractual relationship? Is Martha liable for this tort?

Even though Lothar hoped that his advertisements would persuade Martha to break her contract with Harley, the question states that Martha's decision to change bakers was based solely on the advertising and not on anything else that Lothar did. Lothar's advertisements did not constitute a tort. Note, though, that while Harley cannot collect from Lothar for Martha's actions, he does have a cause of action against Martha for her breach of their contract.

federal statute vs. state constitution provision

Federal Statute

The Kleins were injured when a fireworks display went astray and exploded near them. They sued the pyrotechnic company that was hired to set up and discharge the fireworks. The Kleins alleged that the company should be strictly liable for the damages caused. Will the court agree? What factors will the court consider?

Furthermore, no matter how much care pyrotechnicians exercise, they cannot entirely eliminate the high risk inherent in setting off powerful explosives such as fireworks near crowds; The court agreed with the Kleins, applying the rule that "any party carrying on an 'abnormally dangerous activity' is strictly liable for ensuing damages."

Rob, a sports marketing expert, met with George the owner of the NY Yankees to discuss th Yankees Entertainment and Sports Network (YES). Rob was paid as a consultant. later he filed a suit seeking an ownership share in YES. There was no written contract for the share, but he claimed that there were discussions about this being a part owner. Does Rob have a valid claim for payment?

Gutkowski does not have a valid claim for payment, nor should he recover on the basis of a quasi contract. Quasi contracts are imposed by courts on parties in the interest of fairness and justice; Gutkowski was compensated as a consultant; his claim was dismissed

Farr signed a purchase agreement to buy a building owned by Berenstein for $2 million. They deposited $115000 toward the purchase. Before the deal closed, an environmental assessment of the property indicated the presence of chemicals used in dry cleaning which reduced its value. Do the Farr's have a good argument for the return of their deposit and rescission of the contract?

Here rescission is appropriate because the contracting parties were mutually mistaken as to the condition of the property.

GeoEx requires climbers to sign a release to participate in an expedition. The form mandated the arbitration of any dispute in San Fran and limited damages to the cost of the trip. GeoEx told climbers the terms were nonnegotiable and the same for other travel firms. Jason died on a climb. His mother filed a suit and GeoEx sought arbitration. Was the arbitration clause unconscionable?

Here, GeoEx told customers that the arbitration terms in its release form were nonnegotiable and that climbers would encounter the same requirements with any other travel company. This amounted to procedural unconscionability, underscoring the customers' lack of bargaining power. The imbalance resulted in oppressive terms, with no real negotiation and an absence of meaningful choice. Furthermore, the restriction on forum (San Francisco) and the limitation on damages (the cost of the trip)—with no limitation on GeoEx's damages—amounted to substantive unconscionability. In the actual case on which this problem is based, the court ruled that the agreement was unconscionable.

Lemen referred to Aric's wife as "Madam *****" and told neighbors that the owners were involved in illegal drugs and prostitution. Lemen told the inn's bartender Ewa Cook that Cook "worked for Satan." She repeated her statements to potential customers, and the inn's sales dropped more than 20 percent. The inn filed a suit against Lemen. Are her statements protected?

In the Balboa case, the court issued an injunction against Lemen, ordering her to, among other things, stop making defamatory statements about the Inn. On appeal, a state intermediate appellate court invalidated this part of the injunction, ruling that it violated Lemen's right to freedom of speech under the Constitution because it was a "prior restraint"—an attempt to restrain Lemen's speech before she spoke. On further appeal, the California Supreme Court phrased "the precise question before us [to be] whether an injunction prohibiting the repetition of statements found at trial to be defamatory violates the First Amendment." The court held it could enjoin the repetition of such statements without infringing Lemen's right to free speech.

What did the court conclude with respect to the parties' "diversity of citizenship" in this case?

In the Mala case, the court concluded that the parties did not have diversity of citizenship. A plaintiff who seeks to bring a suit in a federal district court based on diversity of citizenship has the burden to prove that diversity exists. Mala—the plaintiff in this case—was a citizen of the Virgin Islands. He alleged that Crown Bay admitted to being a citizen of Florida, which would have given the parties diversity. Crown Bay denied the allegation and asserted that it also was a citizen of the Virgin Islands. Mala offered only his allegation and did not provide any evidence that Crown Bay was anything other than a citizen of the Virgin Islands. There was thus no basis for the court to be "left with the definite and firm conviction that Crown Bay was in fact a citizen of Florida.

Claudia received a bank loan to buy a house. 2 years later she can't afford the payments. The bank notified her of foreclosure. Claudia filed for bankruptcy. Bank offered to modify the mortgage if she would forego bankruptcy. she agreed, but once she withdrew the filing the bank foreclosd.

In the actual case on which this problem is based, the court concluded that the bank promised to work on a loan modification if Aceves did not seek relief in bankruptcy, Aceves reasonably relied on this promise when she withdrew her filing, and this decision allowed the bank to foreclose on the property.

Hotel Lux contracts with a famous chef, Chef Perlee, to become head chef at $30,000 per month. The contract states that if he leaves for any reason, he will not work as a chef for any hotel or restaurant in NY, NY, PA for 1 year. Perlee terminates his employment and is hired by a NJ restaurant. Lux seeks to enjoin (prevent) Perlee from working in that restaurant as a chef for one year. How successful will Lux be?

In the case of Hotel Lux, the primary contract concerns employment; the covenant is ancillary and desirable for the protection of the hotel. The time period of one year may be considered reasonable for a chef with an international reputation. The reasonableness of the three-state area restriction may be questioned, however. If it is found to be reasonable, the covenant probably will be enforced. If it is not found to be reasonable, the court could declare the entire covenant illegal, allowing Perlee to be employed by any restaurant or hotel, including one in direct competition with Hotel Lux. Alternatively, the court could reform the covenant, making its terms reasonable for protecting Hotel Lux's normal customer market area.

Brenda signed a document that purported to compel arbitration of any disputes that she might have with the chiefs on her first day of work. IN the doc, she agreed to comply at all times with and be bound by the constitution and bylaws of the NFL. SHe agreed to refer all disputes to the commissioner for a binding decision. On the commissioner's decision she agreed to release the chiefs and other from any related claims. Nowhere in the doc did the Chiefs agree to do anything. Was their consideration for the arbitration provision?

In this problem, the arbitration "agreement" contains promises made only by Sniezek; there was no consideration for the arbitration provision. Consideration is required to create a bilateral contract. Consideration is something of legally sufficient value given in return for a promise;

Heather opted to try internet service from Clearwire Corp. They sent her a confirmation email with a link to its website and sent her a modem. In the enclosed materials, at the bottom of a page in small type was the website URL. When Heather plugged in the modem, an I accept terms box appeared. without accepting she quit the page. A clause in Clearwire's terms of service accessible only through its web site, required its subscribers to submit any dispute to arbitration. Is Heather bound to this clause?

NO, In Reasonover's situation, the confirmation e-mail sent by Clearwire was not adequate notice of its "Terms of Service" (TOS). The e-mail did not contain a direct link to the terms— accessing them required clicks on further links through the firm's homepage

5 year old Stark was in the backseat of her parents Ford, not in a booster seat. She was using a seat belt, designed by Ford, but with the shoulder belt behind her back. There was an accident and she suffered a spinal cord injury and was paralyzed from the waist down. The family filed a suit against Ford Motor Co., alleging that the seat belt was defectively designed. Could Ford successfully claim that Cheyenne had misused the seat belt?

No, Ford could not succeed on a claim that Cheyenne had misused the seat belt. Product misuse occurs when a product is used for a purpose that was not intended. Manufacturers and suppliers are required to expect reasonably foreseeable misuses and to design products that are safe when misused or marketed with a protective device, such as a childproof cap. In the facts of this problem, Cheyenne was too young to be negligent, and it is reasonably foreseeable that a child would wear a seat belt incorrectly without understanding the risks. In the actual case on which this problem is based, the court issued a judgment in Cheyenne's favor.

Leo loaned Lewis $100000. Lewis made 15 payments, but not then entire amount. More than 10 years after the loan, but less than 2 after the last payment, Leo filed a suit agains Lewis to recover the outstanding balance. Lewis claimed the suit was barred by a 10 year statute of limitations. Does Leo need to prove a new promise with new consideration to collect the unpaid debt?

No, Kranzler does not need to prove a new promise with new consideration to collect the unpaid debt. A statute of limitations requires a creditor to sue within a specified period to collect a debt. If the creditor fails to sue in time, recovery is barred by the statute. Even if recovery is barred by the statute, a debtor who promises to pay the debt makes an enforceable promise. This promise does not need new consideration. The promise extends the limitations period, and the creditor can sue to recover; Each one of the payments triggered a new ten-year limitation period. Kranzler filed his suit less than two years after the date of the last payment. This was well within the time limit.

Fidelity offers to hire Ron to replace Monica, who has given her one month notice. Fidelity gives Ron a week to accept. 2 days later, Monica decided not to quit and signs a contract for another year. Monica tells Ron of the contract and Ron immediately faxes a formal letter of acceptance. Do Fidelity and Ron have a contract?

No, an offer may be implied by conduct inconsistent with the offer. When the corporation hired someone else, and the offeree learned of the hiring, the offer was revoked. The acceptance was too late

Dyna tells Ed that she will pay him $1,000 to set fire to her store so that she can collect under a fire insurance policy. Ed sets fire to the store, but Dyna refuses to pay. Can Ed recover?

No, contract is illegal and therefore void.

Wooden sent an email to alderwoman that was threatening. Feeling threatened, the alderwoman called the police. Wooden was convicted of harassment under a state criminal statute. Was this conviction unconstitutional under the First Amendment?

No, speech that violates criminal laws is not protected under first amendment

David bought a new Ford truck. 1 year later the truck spontaneously caught fire in the driveway. Truck was destroyed, no other other property damage and no one was injured. David filed a suit in Nebraska against Ford on a theory of strict liability to recover the cost of the truck. Nebraska limits the application of strict product liability to situations involving personal injuries. Is Chris's claim likely to succeed? Is there another basis for liability on which he might recover?

No, the claim is not likely to succeed; The purpose of strict product liability is to ensure that the costs of injuries resulting from defective products are borne by the manufacturers rather than by the injured persons. Recovery can be sought on a contract theory for breach of warranty. Product value and quality are the purposes of warranties. Thus, even though the court is likely to deny Dobrovolny's strict product liability claim, he might seek to recover for breach of warranty on contract principles for the loss of his truck. If there were no express warranties that the truck would not spontaneously combust, relief may be possible for breach of the implied warranty of merchantability or fitness for a particular purpose. In the actual case on which this problem is based, the court issued a decision in Ford's favor.

Dorothy suffered from dementia and chronic confusion. When she became unable to manager hew own affairs her son Eddie arranged for assisted living. She signed a residency agreement that included an arbitration clause. After she sustained injuries in a fall at the facility a suit was filed to recover damages. The facility asked the court to compel arbitration. Was Dorothy bound to the residency agreement?

No. Contracts made by mentally incompetent persons can be void, voidable, or valid. Mentally incompetent persons not previously so adjudged by a court may enter voidable contracts if they do not know they are entering into a contract or if they lack the mental capacity to comprehend its subject matter, nature, and consequences.

Can a state, in the interest of energy conservation, ban all advertising by power utilities if conservation could be accomplished by less restrictive means? Why or why not?

No. Even if commercial speech is not related to illegal activities nor misleading, it may be restricted if a state has a substantial interest that cannot be achieved by less restrictive means. In this case, the interest in energy conservation is substantial, but it could be achieved by less restrictive means. That would be the utilities' defense against the enforcement of this state law

Sun Airlines prints that it is not liable for any injury caused by the airline's negligence on its tickets. If the cause of an accident is found to be the airline's negligence, can it use the clause as defense to liability?

No. Generally, an exculpatory clause (a clause attempting to absolve parties of negligence or other wrongs) is not enforced if the party seeking its enforcement is involved in a business that is important to the public as a matter of practical necessity, such as an airline. Because of the essential nature of such services, the parties have an advantage in bargaining strength and could insist that anyone contracting for its services agree not to hold it liable

Daniel is on his way home and gets caught in a snowstorm. An elderly couple takes him in and provides food and shelter. When the roads are cleared, Daniel goes home. Daniel's father is appreciative and writes a letter promising to pay the couple $500. The couple accepts, but because of a feud b/w Daniel and his dad, he pulls the support. Can the couple hold Fred liable in contract for the services rendered to David?

Nope, promise to pay for an event that has already happened is not enforceable; Also, there is no consideration if the promise is based on a moral duty (obligation) to pay. Because Daniel is presumed to be an adult responsible for his own care, Fred has no legal duty of care to Daniel

Joan who is 16 years old, moves out of her parents' home and signs a 1-year lease at Kenwood. Joan's parents tell her she can move home anytime. Unable to pay rent, Joan moves back to her parents' 2 months later. Can Kenwood enforce the lease?

Nope, she is a minor; contract is voidable at her option

Rabe is suing Sanchez for breaching contract in which Sanchez promised to sell Rabe a painting by Vincent Van Gogh for $30 million. Who is Plaintiff? Who is the Defendant?

Plaintiff- Rabe; Defendant- Sanchez

Jana leaves her truck's motor running while she enters a Kwik-Pik Store. The truck's transmission engages and the vehicle crashes into a gas pump, starting a fire that spreads to a warehouse on the next block. The warehouse collapses, causing its billboard to fall and injure Lou, a bystander. Can Lou recover from Jana? Why or why not?

Probably, To recover on the basis of negligence, the injured party as a plaintiff must show that the truck's owner owed the plaintiff a duty of care, that the owner breached that duty, that the plaintiff was injured, and that the breach caused the injury. In this problem, the owner's actions breached the duty of reasonable care. The billboard falling on the plaintiff was the direct cause of the injury, not the plaintiff's own negligence. Thus, liability turns on whether the plaintiff can connect the breach of duty to the injury. This involves the test of proximate cause—the question of foreseeability. The consequences to the injured party must have been a foreseeable result of the owner's carelessness.

Kolchek bought a spa from Porter, a dealer selling spas at the state fair. Kochek signed an installment contract. Porter than handed her the manufacturer's paperwork and arranged for the spa to be delivered and installed. 3 months later, Kolchek left her 6 yr old daughter alone in the spa. She stuck her hand into one of the jet holes and was unable to remove her finger. She yanked hard, injuring her finger and then called for help. Kolchek had to call the local police and rescue team. After a 3 hour operation that included draining the spa, sawing out a section and slicing the jet casing the finger was freed. Spa was no longer functional. Her daughter broke her finger in two places. Under which theories of product liability can Kolchek sue Porter to recover for Litisha's injuries?

Product liability based upon negligence; and upon design defects associated with the spa and inadequate warnings with respect to its use

Rabe is suing Sanchez for breaching contract in which Sanchez promised to sell Rabe a painting by Vincent Van Gogh for $30 million. Rabe wants to cancel the contract because Sanchez fraudulently misrepresented the painting as an original Van Gogh when in fact it is a copy. What remedy would Rabe seek?

Recisssion

Rabe is suing Sanchez for breaching contract in which Sanchez promised to sell Rabe a painting by Vincent Van Gogh for $30 million. Will the remedy Rabe seeks in either situation be a remedy at law or a remedy in equity? What is the difference b/w legal and equitable remedies?

Remedies in equity

David Hall, a convicted sex offender in New York, moved to Virginia, where he did not update his registration. He was charged with violating SORNA. He claimed that the statute is unconstitutional, arguing that Congress cannot criminalize interstate travel if no commerce is involved. Is that reasonable? Why or why not?

SORNA—which makes it a crime for a sex offender to fail to re-register as an offender when he or she travels in interstate commerce—is a legitimate exercise of congressional authority under the commerce clause. In the actual case on which this problem is based, a federal district court dismissed Hall's indictment. On the government's appeal, the U.S Court of Appeals for the Second Circuit reversed the dismissal and remanded the case for further proceedings, based on the reasoning stated above.

Rabe is suing Sanchez for breaching contract in which Sanchez promised to sell Rabe a painting by Vincent Van Gogh for $30 million. Rabe wants Sanchez to perform the contract as promised. What remedy would Rabe seek from the court?

Specific Performance

Hughes had a contract with Medtronic as a sales manager that prohibited him from working for a competitor for one year after leaving. St. Jude told Hughes his contract was unenforceable and offered him a job. Hughes accepted. Medtronic filed a suit, alleging wrongful interference. Which type of interference was most likely the basis for this suit? Did it occur here? Explain.

St. Jude offered Hughes a sales position that he was prohibited from accepting due to this agreement, and Hughes accepted the position before he had resigned from Medtronic. These actions by St. Jude resulted in Hughes's breach of his contract with Medtronic. St. Jude intentionally induced Hughes's breach of his Medtronic employment contract by making the offer that Hughes accepted. In the facts as stated in the problem, St Jude had nothing to show that its actions were justified. In the actual case on which this problem is based, the court held that Medtronic was entitled to judgment on the reasoning stated above. On appeal, a state intermediate appellate court affirmed this judgment.

Ball emails Sullivan and inquires the price of a 40 acre tract of land she owns. Sullivan says she will not take less than 60000. Ball sends a fax stating " I accept your offer". Discuss whether Ball can hold her to a contract for the sale.

Sullivan stated only a price from which to bargain further, not an intention of a definite commitment to sell at $60,000. There is no contract between Sullivan and Ball

Main Co agrees to buy Merrick's crops of blueberries under a contract that left the price unliquidated. Merrick delivers, but there is a dispute over price. Maine sent a check saying it was the final settlement. Merrick cashed the check but filed for breach of contract, claiming that he was owed more. What will the court likely decide?

The accord and satisfaction created by Merrick's cashing the check would bar any recovery. An accord and satisfaction is created by cashing a check that is accompanied by a letter with restrictive language. In this case, the language in the letter is unambiguous

Roberto and Raquel do not speak english, and responded to a spanish TV sponsored ad for Dodge. Dodge's staff understood they didn't speak English and explained the English contract in spanish, leaving out the accompanying arbitration agreement. The agreement limited the amount of damages the buyer could seek to less than $5000 but didn't limit Dodges right to pursue greater damages. They bought the car and left parts of the contract blank. Dodge later filled in a lower trade in allowance than agreed and refused to change it. The buyers returned the van, having driven only 7 miles and asked for a return of their trade in vehicle, but it had been sold. Buyers filed a suit. Dealer sought arbitration. Was the arbitration agreement unconscionable?

The arbitration agreement in this case was both procedurally and substantively unconscionable. Procedural unconscionability concerns the manner in which a contract is entered into. Here, the buyers did not speak or read English, and the sale was conducted in Spanish. The written contract was in English and explained in Spanish, but the accompanying arbitration agreement was not explained in any language. Having undertaken to explain the terms of the contract in Spanish, the dealer's staff was obliged to do so accurately to give the buyers a meaningful opportunity to understand the contract and bargain. Substantive unconscionability can occur when a contract leaves one party to the agreement without a remedy for the nonperformance of the other. The contract in this case limited the buyers' right in a court to seek relief for no more than $5,000 against the dealer. The dealer, however, had the right to seek a higher amount of damages in a court against the buyers. This made the agreement substantively unconscionable. The court refused to compel arbitration. On the dealer's appeal, a state intermediate appellate affirmed the ruling.

A water pipe bursts, flooding a Metal Fabrication Company utility room and tripping the circuit breakers on a panel in the room. Metal Fabrication contacts Nouri, a licensed electrician with five years experience, to check the damage and turn the breakers back on. Without testing for short circuits, which Nouri knows that he should do, he tries to switch on a breaker. He is electrocuted and his wife sues Metal Fabrication for damages, alleging negligence. What might the firm successfully claim in defense?

The company might defend against this electrician's claim by asserting that the electrician should have known of the risk and, therefore, the company had no duty to warn. According to the problem, the danger is common knowledge in the electrician's field and should have been apparent to this electrician, given his years of training and experience. In other words, the company most likely had no need to warn the electrician of the risk. The firm could also raise comparative negligence. Both parties' negligence, if any, could be weighed and the liability distributed proportionately. The defendant could also assert assumption of risk, claiming that the electrician voluntarily entered into a dangerous situation, knowing the risk involved.

Kiwanuka signed an employment contract with Anne and moved to the US to work as a babysitter and maid. When she arrived, Anne confiscated her passport, held her in isolation and forced her to work long hours under the threat of being deported. K worked 7 days a week with no breaks and was subject to verbal and psych abuse. K filed a complaint against Anne for intentional infliction of emotional distress, among other claims. Anne wanted the complaint dismissed b/c allegations were insufficient. If you were the judge whose favor would you rule?

The court found that the facts alleged in the complaint, if true, were sufficient to establish Kiwanuka's claim of intentional infliction of emotional distress. There was evidence that Bakilana, on a daily basis, used her position of power and control over Kiwanuka to engage in an intentional pattern of outrageous verbal abuse against her. The complaint further alleged that Bakilana intentionally interfered with Kiwanuka's attempts to form relationships or acquaintances, thereby deepening Kiwanuka's suffering of isolation and distress. These allegations were sufficient to show extreme and outrageous conduct, intentionally committed, that resulted in severe emotional distress to Kiwanuka. Therefore, the court held that Kiwanuka's claim for intentional infliction of emotional distress could be tried.

IBM hired Jensen as a software sales rep. The brochure for the sales incentive plan (SIP) says the more you sell, the more earnings for you. But the SIP doesn't constitute a promise by IBM, and they reserve the right to change the program at any time. Jensen was given a quota letter that said base salary of $75000 and if he achieved quota an additional $75000. Jensen closed on a deal worth more than $24 million dollars and was given less than $500000 as commission. Jensen filed a suit arguing that the SIP was a unilateral offer that became a binding contract when he closed the sale.

The court issued a summary judgment in favor of IBM, holding that there was no contract between the parties because they had not agreed on the commission arrangement; The terms of IBM's Sales Incentive Plan make clear that they are not to be construed as an offer that can be accepted to form a contract; Under the terms displayed on the intranet and stated in the letter, IBM indicated that Jensen could not rely on the description of potential commissions in the SIP brochure because "IBM could modify or cancel the Sales Incentive Plan at any time

Puerto Rico enacts law that requires specific labels on cement sold in Puerto Rico and imposes fines for any violations. Law prohibits the sale or distribution of cement mfg outside of PR that does not carry required label. Firm that imports cement filed a complaint in Fed court, claiming that this restriction violated the dormant commerce clause. Did the 2001 PR law violate the clause?

The court ruled that like a state, Puerto Rico generally may not enact policies that discriminate against out-of-state commerce. The law requiring companies that sell cement in Puerto Rico to place certain labels on their products is clearly an attempt to regulate the cement market.

Jason, an experienced hunter, bought a paintball gun. He practiced with the gun, and chose not to buy protective eye wear. He had taken safety classes and understood it was "common sense" not to shoot anyone in the face. Chris also owned a paintball gun and was also familiar with its use and risks. They played a game that involved shooting at each others cars. One night Chris shot at Jason's car and hit him in the eye. Clark filed a product liability lawsuit against the manufacturer of Wright's paintball gun to recover for the injury. Clark claimed that the gun was defectively designed. During the trial, Wright testified that his gun "never malfunctioned." In whose favor should the court rule?

The court should rule in favor of the manufacturer, finding that the gun did not malfunction but performed exactly as Clark and Wright expected; The court should also point out that Clark and Wright appreciated the danger of using the guns without protective eye wear. Clark offered no proof that the paintball gun used in the incident failed to function as expected.

How did the court's conclusion affect the outcome in the Mala case?

The court's conclusion determined the outcome in this case. Mala sought a jury trial on his claim of Crown Bay's negligence, but he did not have a right to a jury trial unless the parties had diversity of citizenship. Because the court concluded that the parties did not have diversity of citizenship, Mala was determined not to have a jury-trial right. The outcome very likely would have been different if the court had concluded otherwise. The lower court had empaneled an advisory jury, which recommended a verdict in Mala's favor. This verdict was rejected, however, and a judgment issued in favor of Crown Bay. On appeal, the U.S. Court of Appeals for the Third Circuit affirmed the lower court's judgment.

10 Commandments hung in court room; ACLU filed a suit alleging the poster violated the establishment clause. Judge responded with purpose of sign was not to promote religion, but to express his view about "warring" legal philosophies—moral relativism and moral absolutism. "Our legal system is based on moral absolutes from divine law handed down by God through the Ten Commandments." Does this poster violate the establishment clause? Why or why not?

The establishment clause prohibits the government from passing laws or taking actions that promote religion or show a preference for one religion over another. In assessing a government action, the courts look at the predominant purpose for the action and ask whether the action has the effect of endorsing religion. Although here DeWeese claimed to have a nonreligious purpose for displaying the poster of the Ten Commandments in a courtroom, his own statements showed a religious purpose. This plainly constitutes a religious purpose that violates the establishment clause because it has the effect of endorsing Judaism or Christianity over other religions. In the case on which this problem is based, the court ruled in favor of the American Civil Liberties Union.

While working, Richard backs into a passenger vehicle driven by Green. Richard's second accident in 6 months. Owner Dun learns of accident and fires Richard. He also writes a letter to the union speaking negatively of Richard and telling people not to hire him. Richard files a suit against Dun, alleging libel on the basis of the statements made in the letters. Discuss results.

The legal issue is whether Dun has libeled Richard's character. For Richard to recover in a legal action, he must prove the following elements: (a) that the defendant's writing contained a false statement, not privileged, presented as fact (called a false statement of fact), or a statement of opinion that was overpublicized, or even a true statement of fact that was overpublicized; (b) that the writing was made known to others besides the plaintiff; and (c) that damage occurred, if damages are sought by plaintiff. In this case, the writing of the letter and its distribution could not be considered privileged. One could argue that privilege may be extended to Dun if a union contract required that specific notice and reasons for firing union members be given to union officials. Such privilege, however, would not extend to the other construction businesses. Dun could also argue that the statements were true. Truth is a defense against a defamation suit. Richard would then argue that the statements were presented as facts, not merely opinion, and were false, or that even if they were true, they were overpublicized. Proof of publication is already established. Finally, if Richard cannot secure comparable work because of the letters, he might be able to recover lost wages. (Note here that if compensatory damages are proved, Richard will probably also be awarded punitive damages.)

Yeagle is an Asst. to the VP of student affairs at VA tech. The student newspaper published an article about the success of a program that Yeagle assisted with. There was a block quotation attributed to Yeagle with the phrase "Dir. of Butt Licking". Yeagle sued for defamation. What is the paper's defense?

The newspaper's defense was that the statement was not actionable defamation because it did not convey any factual information about Sharon Yeagle. The court noted that the phrase was disgusting and in extremely bad taste, but agreed with the newspaper.

Access hired Andy to sell produce. Andy signed an agreement not to compete with Access for 2 years following termination of his employment. He did not receive a pay increase or any other new benefits in return for signing. When Access encountered financial trouble, Andy left and began to compete with his former employee. Access filed a lawsuit. Is the noncompete agreement enforceable?

The non-compete agreement fails for lack of consideration. Promises made in return for actions that have already taken place are unenforceable. They lack consideration because the element of bargained-for exchange is missing;

MIllers had a son, Landon. When they divorced they entered into a joint plan. Under the JP Darrell agreed to "begin setting funds aside for Landon to attend college". After Landon's 18th bday, Lisa asked the court to order Darrell to pay college based on the JP. Darrell contended that the JP was not clear on this point. Do the rules of contract interpretation support Lisa or Darrell?

The provision is ambiguous. Lisa, however, did not offer any evidence to support her asserted interpretation of the provision. Without such evidence, the ambiguity should be interpreted in favor of Darrell. In this case, the court ordered Darrell to pay, but on appeal, a state intermediate appellate court reversed the order.

Janine hospitalized with severe ab pain and placed in ICU. Dr. told nurses to order around-the-clock nursing car for her. Nursing Services Unlimited provided 2 weeks in-hospital care and 2 weeks additional care once Janine was back home. During the at-home period, Janine was fully aware that she was receiving these services. Nursing Services billed her $4000, and she refused to pay on the ground that she had never contracted for the services, either orally or in writing. In view of the fact that no express contract was ever formed, can Nursing Services recover the $4,000 from Janine? If so, under what legal theory?

This is known as a quasi contract and provides a basis for Nursing Services to recover the value of the services it provided while Janine was in the hospital; As for the at-home services that were provided to Janine, because Janine was aware that those services were being provided for her, Nursing Services can recover for those services under an implied-in-fact contract;

For employment with Firestorm Smokejumpers, crew of elite paratroopers, applicants must complete a series of tests. The crew chief sends an acceptance letter to the most qualified candidates. Jake received a letter and passed the exams, but a new crew chief changes the selection process and rejects him. Is there a contract b/w Jake and Firestorm? What type if so?

This was a unilateral contract. Here, Scott accepted the offer by passing the medical exam. Firestorm breached the contract when the new crew chief rejected Jake, who had already received the offer and accepted it. The appropriate remedy would be to allow Jake to attend Firestorm's training sessions.

Brandon was driving a golf car made by Textron, Inc to transport guests at a Christmas Party. Golf car didn't have lights, but there was a warning not to use it on public roads at night. When Brandon attempted to cross a road at 8:30 PM he was struck by Joe and was killed. His estate filed a suit against Textron, alleging strict product liability and product liability based on negligence. The charge was that the golf car was defective and unreasonably dangerous. What defense might Textron assert?

To establish a strict product liability claim, a plaintiff must show among other things that the product was in a defective condition, unreasonably dangerous to the user. For example, a bicycle is safer when it is equipped with lights, but a bicycle not so equipped is not defective and unreasonably dangerous. Textron could argue that the same reasoning could be applied here: the golf car was not defective and unreasonably dangerous merely because it did not have light; Textron could contend that the operation of an unlighted golf car on a public highway at night presents a commonly known risk; As for the negligence claim, there is similarly no duty to warn of a danger that is commonly known. Against the negligence claim, Textron might also assert a defense of comparative negligence, contending that Stroud was negligent in driving the unlit golf car at night on a public road. On these defenses, the court granted a summary judgment in Textron's favor. On the plaintiffs' appeal, a state intermediate appellate court affirmed.

federal statute conflicts with the US Constitution

US Constitution

state constitutional amendment vs. US Constitution

US Constitution

Joli receives a letter from Kerin saying that he has a book at a certain price. Joli signs and returns the letter to Kerin. When Kerin delivers the book, Joli sends it back, claiming that they do not have a contract. Kerin claims they do. What standard determines whether these parties have a contract?

Under the objective theory of contracts, if a reasonable person would have thought that Joli had accepted Kerin's offer when she signed and returned the letter, then a contract was made, and Joli is obligated to buy the book.

Schmidt owns a small business, has a large piece of used farm equipment for sale. He offers to sell to Barry for $10,000. Barry pays $100 for a 30 day option to purchase the equipment. During this period, Barry dies and Barry's estate accepts Schmidt's offer within the time period.

When the offer is irrevocable, under an option contract, death of the offeree also does not terminate the offer. Because the option is a separate contract, the contract survives and passes to the offeree's estate, which can exercise the option by acceptance within the option period. Thus, acceptance by Barry's estate binds Schmidt to a contract for the sale of the equipment.

Schmidt owns a small business, has a large piece of used farm equipment for sale. He offers to sell to Barry for $10,000. Barry pays $100 for a 30 day option to purchase the equipment. During the period, Schmidt dies and later Barry accepts offer knowing of Schmidt's death.

When the offer is irrevocable, under an option contract, death of the offeror does not terminate the option contract, and the offeree can accept the offer to sell the equipment, binding the offeror's estate to performance. Performance is not personal to Schmidt, as the estate can transfer title to the equipment.

PEMS agreed to find a buyer for Rupp for a commission of 2% of the purchase price, which was to be paid by the buyer. Using PEMs services, an investment group bought Rupp for 20 million and changed its name to Temp Air. PEMS asked Temp Air to pay the commission and they refused claiming that PEMs acted as a broker in the deal without a license. The applicable statute defines a broker as any person who deals with the sale of a business. If this statute was intended to protect the public, can PEMs collect its commission?

Whether a contract with an unlicensed person is legal and enforceable depends on the purpose of the statute. If the purpose is to protect the public from unauthorized practitioners, then a contract involving an unlicensed practitioner is generally illegal and unenforceable; In the actual case on which this problem is based, the court dismissed PEMS's claim on the ground that the unlicensed firm was acting as a broker.

Rim Corporation makes tire rims that it sells to Superior Vehicles, Inc., which installs them on cars. One set of rims is defective, which an inspection would reveal. Superior does not inspect the rims. The car with the defective rims is sold to Town Auto Sales, which sells the car to Uri. Soon, the car is in an accident caused by the defective rims, and Uri is injured. Is Superior Vehicles liable? Explain your answer.

Yes, A manufacturer is liable for its failure to exercise due care to any person who sustains an injury proximately caused by a negligently made (defective) product. In this problem, the failure.

Ralph had car and house insurance through Allstate. Bank of America had a mortgage on the house and paid the premiums on the homeowner's policy from Ralph's account. After Ralph died, Allstate cancelled the car insurance, but the bank continued to pay house. Doug inherited the house. When a fire destroyed the house, Allstate denied coverage claiming the policy was still in Ralph's name. Douglas filed a suit in fed court. Was Allstate liable?

Yes, Allstate was liable under the homeowner's policy. A contract that is implied from the conduct of the parties; the homeowner's policy was a mix of express and implied terms. As for the elements showing the existence of the implied terms, the payments for the premiums on the policy continued after Ralph's death, but the amounts were paid from Douglas's account. Undoubtedly, Douglas expected to receive coverage under the policy in return for his payments.

Thomas worked in the nonmilitary operations of a large firm; his dept was closed and he was moved to a military dept; quit his job b/c military violated religious beliefs; Did the state's denial of unemployment benefits to Thomas violate the free exercise clause of the First Amendment? Explain.

Yes, Employers are obligated to make reasonable accommodations for their employees' beliefs, right or wrong, that are openly and sincerely held.

Anne is a reporter for DBJ. She uses the internet for research. While visiting the Web site of Cyberspace Investments Corp, Anne reads a pop-up window that states, our business newsletter, E commerce Weekly is available at a 1 year subscription for a rate of $5 per issue. To subscribe enter your email. By subscribing you agree to terms and conditions. To read, click agreement. Anne enters her address, but does not read agreement. Has Anne entered into an enforceable contract to pay?

Yes, she chose not read the agreement button when she selected "subscribe

In Sept, Sharyn agrees to work for Totem Productions at $500 per week beginning January 1st. In October, Sharyn is offered the same work at $600 per week bu Umber. When Sharyn tells Totem about the offer they tear up their contract and agree to $575, is the new contract binding?

Yes, the original contract was executory; If Sharyn had broken the contract to accept a contract with another employer, she might have been held liable for damages for the breach.

TracFone sells phones for less than their cost, which TracFone recoups by selling prepaid airtime for their use on its network. The phones cannot be used on other networks. The phones are sold subject to the condition that the buyer agrees not to tamper with or alter the software. It is printed on the packaging. Beq Corp bought at least 18,000 phones, disabled the software so that they could be used on other networks and resold them. Is Beq liable for breach of contract?

Yes. A shrink-wrap agreement is an agreement whose terms are expressed inside the box in which the goods are packaged. The party who opens the box may be informed that he or she agrees to the terms by keeping whatever is in the box. by including the terms with the product, the seller proposed a contract that the buyer accepted by using the product after having an opportunity to read the terms

Kim went to Ling's Market. It was stormy, weather had blown through the door when it opened. Kim slipped and fell. Manager knew of weather conditions, but had not posted any warning sign. Kim injured back and sued Ling. Can Ling be held liable for negligence?

Yes. An occupier of the premises has a duty to use ordinary care to keep its premises in a reasonably safe condition and to warn customers of any foreseeable hazards.

Suppose that a state imposes a higher tax on out-of-state companies doing business in the state than it imposes on in-state companies. Is this a violation of equal protection if the only reason for the tax is to protect the local firms from out-of-state competition? Explain.

Yes. The tax would limit the liberty of some persons (out of state businesses), so it is subject to a review under the equal protection clause. Protecting local businesses from out-of-state competition is not a legitimate government objective. Thus, such a tax would violate the equal protection clause.

Before Maria starts her first year of college, Fred promises to give her $5000 when she graduates. She goes to college borrowing and spending far more than $5000. At the beginning of the Spring semester of her senior year, she reminds Fred of the promise. Fred sends her a note that says I revoke the promise. Is Fred's promise binding?

Yes. Under the doctrine of detrimental reliance, or promissory estoppel, the promisee is entitled to payment of $5,000 from the promisor on graduation.

Real Chocolate Company makes a box of candy and sells it to Sweet Things, Inc., a distributor. Sweet sells the box to a Tasty Candy store, where Jill buys it. Jill gives it to Ken, who breaks a tooth on a stone the same size and color as a piece of the candy. If Real, Sweet, and Tasty were not negligent, can they be liable for the injury? Why or why not?

Yes. Under the doctrine of strict liability, persons may be liable for the results of their acts regardless of their intentions or their exercise of reasonable care (that is, regardless of fault).

While driving on Interstate 40 in North Carolina, Carroll Jett became distracted by a texting system in the cab of his tractor-trailer truck. He smashed into several vehicles that were slowed or stopped in front of him, injuring Barbara and Michael Durkee and others. The injured motorists filed a suit in a federal district court against Geologic Solutions, Inc., the maker of the texting system, alleging product liability. Was the accident caused by Jett's inattention or the texting device? Should a manufacturer be required to design a product that is incapable of distracting a driver?

accident was caused by Jett's inattention, not the texting device; in a product liability case on design defect, the plaintiff has to prove the product was defective at the time of the accident; must also show the defective condition made it "unreasonably dangerous to the user; plaintiffs could arge that the manufacturer owed them a duty of care b/c injuries to vehicle drivers and passengers was reasonably foreseeable due to the products design; But manufacturers are not required to design a product incapable of distracting a driver; he duty owed by a manufacturer to the user or consumer of a product does not require guarding against hazards that are commonly known or obvious or protecting against injuries that result from a user's careless conduct

Under the doctrine of stare decisis, courts are obligated to follow the precedents established in their jurisdictions unless there is a compelling reason not to. Should U.S. courts continue to adhere to this common law principle, given that our government now regulates so many areas by statute?

even though more common law is being turned into statutory law, stare decisis is still valid; even statutes have to be interpreted by courts contrast: federal and state governments increasingly are regulating more aspects of commercial transactions between merchants and consumers, perhaps the courts should simply stick to statutory language when disputes arise

Joanne's family is worried she may have Alzheimer's disease. No diagnosis or court order. One day, Joanne enters into a 15 year installment contract for a grand piano. When it arrives, Joanne is confused and repeatedly asks why it is being delivered. She claims she does not recall the purchase. Explain whether the contract is void, voidable or valid.

her buying an expensive piano on a limited budget and repeated questioning of the delivery person seems to indicate incompetence. She has not yet apparently disaffirmed the contract, however. If she does, and it is determined that she is incompetent, the store's best defense might be that she was experiencing a lucid interval at the time of the purchase

Thomas and Joe developed Psycho Chihuahua, a caricature of a dog with a "do not back down" attitude. It was promoted through Wrench LLC. Reps of Taco Bell learned of psycho chihuahua and met with the guys to talk about using it as a taco bell icon. Wrench sent TB art work, merchandise, and ideas. TB didn't accept Wrenchs terms but still promoted the character within. TB hired a new agency which proposed a campaign involving a chihuahua. Wrench filed a suit in the federal court claiming that it had an implied contract . Do these facts satisfy the requirements for an implied contract?

implied contract; "Taco Bell concedes that there is sufficient evidence in the record to support Plaintiff's allegation that the parties had a basic understanding that if Taco Bell used the Psycho Chihuahua idea, concept, or image, that Taco Bell would compensate Plaintiffs for the fair value of such use

Chow tried to unclog a floor drain in the kitchen where he worked. He used a cleaner called Lewis Red Devil Lye that contained crystalline sodium hydroxide. Product label said to wear eye protection, to put one tbs of lye into the drain and to keep face away because of dangerous backsplash. W/out eye protection, Chow mixed 3 tbs and poured it down the drain while bending over it. Liquid splashed back into his face, causing injury. He brought a product liability suit based on inadequate warnings and design defect. The trial court granted summary judgment to the manufacturer, and Chow appealed. An expert for Chow stated that the product was defective because it had a tendency to backsplash. Is that a convincing argument?

inadequacies in the warning label, or not a substantial factor in bringing about the injuries; it was Chow's responsibility to read the label, claim of an expert that backsplash is a common problem does not mean there is a safer design; no evidence of a safer design so claim was dismissed

Kolchek bought a spa from Porter, a dealer selling spas at the state fair. Kochek signed an installment contract. Porter than handed her the manufacturer's paperwork and arranged for the spa to be delivered and installed. 3 months later, Kolchek left her 6 yr old daughter alone in the spa. She stuck her hand into one of the jet holes and was unable to remove her finger. She yanked hard, injuring her finger and then called for help. Kolchek had to call the local police and rescue team. After a 3 hour operation that included draining the spa, sawing out a section and slicing the jet casing the finger was freed. Spa was no longer functional. Her daughter broke her finger in two places. Would privity of contract be required for Kolchek to succeed in a product liability action against Great Lakes?

injured consumers may bring claims sounding in product liability or strict liability against manufacturers despite the absence of a direct contractual relationship. Potential defendants to such actions include manufacturers, sellers, and lessors.

What does stare decisis mean, and why has this doctrine been so fundamental to the development of our legal tradition?

means " to stand on decided cases"; The doctrine of stare decisis is fundamental to the development of our legal tradition because without the acceptance and application of this doctrine, the evolution of any objective legal concepts—and thus a legal "tradition"—would have been impossible

Martin has a contract with Tabor for delivery of 50 file cabinets at $40 per cabinet in 5 equal installments. After delivery of two installments, Martin informs Tabor that b/c of inflation they are losing money. They promise to deliver the remaining cabinets for $50 per cabinet. Tabor agrees in writing. Can Martin legally collect the additional money on deliver to Tabor of the next installment of 10 cabinets?

modifying a contract for the sale of goods needs no consideration to be binding [UCC 2-209(1)]. Therefore, the agreement by Tabor to pay the additional $10 per cabinet (a good) may be binding, even though no consideration (detriment) is given by Martin for the increase in price.

Kolchek bought a spa from Porter, a dealer selling spas at the state fair. Kochek signed an installment contract. Porter than handed her the manufacturer's paperwork and arranged for the spa to be delivered and installed. 3 months later, Kolchek left her 6 yr old daughter alone in the spa. She stuck her hand into one of the jet holes and was unable to remove her finger. She yanked hard, injuring her finger and then called for help. Kolchek had to call the local police and rescue team. After a 3 hour operation that included draining the spa, sawing out a section and slicing the jet casing the finger was freed. Spa was no longer functional. Her daughter broke her finger in two places. For an action in strict product liability against Great Lakes, what six requirements must Kolchek meet?

must show the product was in a defective condition when it was sold, the defendant sells or distributes such products in the ordinary course of business, the product was unreasonably dangerous, the plaintiff suffered physical harm or injury to property as a result of use of the product, the injury was proximately caused by the defect, and the product was not substantially changed from the time it was sold to the time of the injury

After World War II, several Nazis were convicted of "crimes against humanity" by an international court. Assuming that these convicted war criminals had not disobeyed any law of their country and had merely been following their government's orders, what law had they violated? Explain

natural law: legal systems should reflect the moral and ethical ideals that are inherent in human nature

Costello hires Sagan to race a car. Gideon, Sagan's friend, promises to pay$3000 if Sagan wins. He wins, and Gideon refused to pay. Sagan sued for breach of contract. What rule would support Gideon?

no contract existed because Sagan had given no consideration for Gideon's promise—is supported by the preexisting duty rule.

A county court in Illinois is deciding a case involving an issue that has never been addressed before in that state's courts. The Iowa Supreme Court, however, recently decided a case involving a very similar fact pattern. Is the Illinois court obligated to follow the Iowa Supreme Court's decision on the issue? If the United States Supreme Court had decided a similar case, would that decision be binding on the Illinois court? Explain.

not obligated to follow Iowa's decision; US Supreme Court is binding

Schmidt owns a small business, has a large piece of used farm equipment for sale. He offers to sell to Barry for $10,000. night before Barry accepts, fire destroys equipment.

offer terminated by destruction

Ohio University announced in a press conference that it had found "rampant and flagrant plagiarism" in the theses of mechanical engineering graduate students. Faculty singled out for "ignoring their ethical responsibilities" included Jay Gunasekera, chair of the department. Gunasekera was prohibited from advising students. He filed a suit against Dennis Irwin, the dean of Russ College, for violating his due process rights. What does due process require in these circumstances? Why?

question is what process is due to deprive a faculty member of this interest and in this case whether Gunasekera was provided it. When an employer inflicts a public stigma on an employee, the only way that an employee can clear his or her name is through publicity. The court held that Gunasekera was entitled to a public name-clearing hearing.

state statute vs. common law of that state

state statute

Kim borrowed 4750 from her sister to make a mortgage payment. Hours latered Kim asked to borrow 1100. Kris took a cash advance for this amount. When Kim didn't pay it back, Kris filed a suit arguing that she had "loaned" Kim thre money. Can the court impose a contract b/w the sisters?

the court in this case could impose a quasi contract to avoid the unjust enrichment of Kim at Kris's expense. To recover on this basis, one party must confer a benefit on another party, the other party must appreciate or know of the benefit, and the other party must retain the benefit under circumstances that would make it inequitable to do this without paying for it.

Stoller was killed at a railroad crossing when a train hit his car. The crossing was marked with a stop sign and a railroad crossing symbol, but no flashing lights. Stoller's parents filed a suit against AMTRAK and Railroad Corp, alleging negligence in the design and maintenance of the crossing. Defendants argued that Galen hadn't stopped at the stop sign. Was AMTRAK negligent? What was the proximate cause of the accident?

the evidence did not show that the defendant breached its duty of reasonable care to make the crossing safe for motorists. The crossing was properly marked with signs that were not obstructed by vegetation. Because the law requires a complete stop, and because the crossing was adequately marked, Galen's failure to stop could be considered the proximate cause of the accident. In the case on which this problem is based, the court granted a summary judgment in favor of the railroad, and the plaintiffs appealed. The U.S. Court of Appeals for the Tenth Circuit affirmed the judgment.

Sue lived with her 4 daughters (Amanda, 11, Victoria, 5, Jenna and Jillian, 3). Sue bought an Aim N Flame utility lighter which she stored on the top shelf in the kitchen. trigger can ignite once On/off switch is slid into "on" Position. On the night of March 31, Calles and Victoria left to get videos. Jenna and Jillian were in bed, and Amanda was watching television. Calles returned to find fire trucks and emergency vehicles around her home. Robert Finn, a fire investigator, determined that Jenna had started a fire using the lighter. Jillian suffered smoke inhalation, was hospitalized, and died on April 21. Calles filed a suit in an Illinois state court against Scripto-Tokai Corp., which distributed the Aim N Flame, and others. In her suit,which was grounded, in part, in strict liability claims, Calles alleged that the lighter was an "unreasonably dangerous product." Scripto filed a motion for summary judgment.

the expectations regarding the Aim N Flame's use and safety must be viewed from the point of view of the adult consumer." The court held that the lighter met this test; the Aim N Flame did not fail to perform as an ordinary consumer would expect when used in a reasonably foreseeable manner. Thus, as a matter of law, no fact finder could conclude that the Aim N Flame was unreasonably dangerous under the consumer-expectation test.

Weatherford Hotel in Arizona, in Room 59, a balcony extends across thirty inches of the room's only window, leaving a twelve-inch gap with a three-story drop to the concrete below. A sign prohibits smoking in the room but invites guests to "step out onto the balcony" to smoke. Toni was a guest when she climbed out of the window and fell to her death. Patrick McMurtry, her estate's personal representative, filed a suit against the Weatherford. Did the hotel breach a duty of care to Locario? What might the Weatherford assert in its defense? Explain.

the hotel owed her a duty of reasonable care to make its premises safe for her use; And it could be concluded that the hotel created or knew of the condition and failed to take reasonable steps to warn of it or correct it; Of course, the Weatherford might argue that the window/ balcony configuration was so obvious that the hotel was not liable for Lucario's fall; In the actual case on which this problem is based, the court concluded that the Weatherford did not breach its duty of care to Lucario. On McMurtry's appeal, a state intermediate appellate court held that this conclusion was in error, vacated the lower court's judgment in favor of the hotel on this issue, and remanded the case

Judy, Kristy and their mother Joyce owned 78 acres of land on Eagle Creek in Montana. When Joyce died, she left her interest in the property to Kristy. Kristy wrote to Judy offering to buy Judy's Interest to sell her own interest to Judy. Letter said to respond to Bruce. In a letter to Kristy, not Bruce, Judy accepted the offer. Kristy had also made the same offer to their brother Dave, and he had accepted. Did judy and Kristy have an enforceable binding contract? Or did Kristy's offer specifying one exclusive mode of acceptance mean that Judy's reply was not effective?

the offer didn't limit its acceptance to one exclusive mode; thus judy's reply was acceptance of an offer; court ruled for specific performance

Rocky Mountain Races, Inc., sponsors the "Pioneer Trail Ultramarathon" with an advertised first prize of $10,000. The rules require the competitors to run 100 miles from the floor of Blackwater Canyon to the top of Pinnacle Mountain. The rules also provide that Rocky reserves the right to change the terms of the race at any time. Monica enters the race and is declared the winner. Rocky offers her a prize of $1,000 instead of $10,000. Did Rocky and Monica have a contract?

there was a unilateral contract, but it was not breached because Rocky could change the terms at anytime

A Georgia state law requires the use of contoured rear-fender mudguards on trucks and trailers operating within Georgia state lines. The statute further makes it illegal for trucks and trailers to use straight mudguards. In approximately thirty-five other states, straight mudguards are legal. Moreover, in Florida, straight mudguards are explicitly required by law. There is some evidence suggesting that contoured mudguards might be a little safer than straight mudguards. Discuss whether this Georgia statute violates any constitutional provisions.

violates the commerce clause; According to the facts in this hypothetical, the contoured mudguard is not clearly superior in safety to the straight mudguard.

AOL made public personal info of members. Members filed suit alleging violations of Cali law. AOL asks courts to dismiss on basis of "forum-selection" clause within member agreement that designates VA courts for disputes. Under US Supreme Court, forum-selection clause is unenforceable. If court applies the doctrine of stare decisis will dismiss the suit?

yes