Harold Pearsall and Joe Alexander were friends for over twenty-five years. About twice a week they would

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Harold Pearsall and Joe Alexander were friends for over twenty-five years. About twice a week they would get together after work and proceed to a liquor store, where they would purchase what the two liked to refer as a "package"-a half-pint of vodka, orange juice, two cups, and two lottery tickets. Occasionally these lottery tickets would yield modest rewards of two or three dollars, which the pair would then "plow back" into the purchase of additional tickets. On December 16, Pearsall and Alexander visited the liquor store twice, buying their normal "package" on both occasions. For the first package, Pearsall went into the store alone, and when he returned to the car, he said to Alexander, in reference to the tickets, "Are you in on it?" Alexander said, "Yes." When Pearsall asked him for his half of the purchase price, though, Alexander replied that he had no money. When they went to Alexander's home, Alexander snatched the tickets from Pearsall's hand and "scratched" them, only to find that they were both worthless. Later that same evening Alexander returned to the liquor store and bought a second "package." This time, Pearsall snatched the tickets from Alexander and said that he would "scratch" them. Instead, he gave one to Alexander, and each man scratched one of the tickets. Alexander's was a $20,000 winner. Alexander cashed the ticket and refused to give Pearsall anything. Can Pearsall recover half of the proceeds from Alexander? Explain.
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Smith and Robersons Business Law

ISBN: 978-0538473637

16th edition

Authors: Richard A. Mann, Barry S. Roberts

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