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Questions and Answers of Business Law

International Business Machines Corp. (IBM) hired Niels Jensen in 2000 as a software sales representative. In 2001, IBM presented a new “Software Sales Incentive Plan” (SIP) at a conference for
Go to Case 10.3, Wagner v. Columbia Pictures Industries, Inc., 146 Cal. App. 4th 586, 52 Cal. Rptr.3d 898 (2 Dist.2007), on pages 226–227. Read the excerpt and answer the following questions.(a)
Go to this text’s Web site at academic. cengage.com/blaw/clarkson and select “Chapter 10.” Click on “Video Questions” and view the video titled Bowfinger. Then answer the following
Did Amstel’s bid meet the requirements of an offer? Explain.Shane Durbin wanted to have a recording studio custom-built in his home. He sent invitations to a number of local contractors to submit
Was there an acceptance of the offer? Why or why not?Shane Durbin wanted to have a recording studio custom-built in his home. He sent invitations to a number of local contractors to submit bids on
Suppose that the court determines that the parties did not reach an agreement. Further suppose that Amstel, in anticipation of building Durbin’s studio, had purchased materials and refused other
How is an offer terminated? Assuming that Durbin did not inform Amstel that he was rejecting the offer, was the offer terminated at any time described here? Explain.Shane Durbin wanted to have a
Suppose that the day after Lucy signed the purchase agreement for the farm, he decided that he didn’t want it after all, and Zehmer sued Lucy to perform the contract. Would this change in the facts
Besides breach of contract, Trell charged the defendants with fraud, misappropriation of property, breach of fiduciary duty, unfair competition, conversion, and conspiracy with intent to defraud.
Should the court have made an exception to the rule applied in this case because the ad was posted on the Internet? Why or why not?
Why must the terms of a contract be “sufficiently definite” before a court will enforce the contract?
What might a court consider when looking for a “sufficiently definite meaning” to make a contract term enforceable?
Ball writes to Sullivan and inquires how much Sullivan is asking for a specific forty-acre tract of land Sullivan owns. In a letter received by Ball, Sullivan states, “I will not take less than
Schmidt, operating a sole proprietorship, has a large piece of used farm equipment for sale. He offers to sell the equipment to Barry for $10,000. Discuss the legal effects of the following events on
Perez sees an advertisement in the newspaper indicating that the ABC Corp. is offering for sale a two-volume set of books, How to Make Repairs around the House, for $39.95. All Perez has to do is
On Thursday, Dennis mailed a letter to Tanya’s office offering to sell his car to her for $3,000. On Saturday, having changed his mind, Dennis sent a fax to Tanya’s office revoking his offer.
Southwick Homes, Ltd., develops and markets residential subdivisions. William McLinden and Ronald Coco are the primary owners of Southwick Homes. Coco is also the president of Mutual Development Co.
The Pittsburgh Board of Public Education in Pittsburgh, Pennsylvania, as required by state law, keeps lists of eligible teachers in order of their rank or standing. According to an “Eligibility
Music that is distributed on compact discs and similar media generates income in the form of “mechanical” royalties. Music that is publicly performed, such as when a song is played on a radio,
In 2000, David and Sandra Harless leased 2.3 acres of real property at 2801 River Road S.E. in Winnabow, North Carolina, to their son-in-law and daughter, Tony and Jeanie Connor. The Connors planned
In August 2000, in California, Terry Reigelsperger sought treatment for pain in his lower back from chiropractor James Siller. Reigelsperger felt better after the treatment and did not intend to
In 1980, Kenneth McMillan and his associate in a dental practice obtained life insurance policies that designated each the beneficiary of the other. They set up automatic withdrawals from their bank
Go to this text’s Web site at academic, cengage.com/blaw/clarkson and select “Chapter 11.” Click on “Video Questions” and view the video titled Offer and Acceptance. Then answer the
Are the basic elements of consideration present in the neighbor’s promise to help John reassemble the garage? Why or why not?John operates a motorcycle repair shop from his home but finds that his
Suppose that the neighbor starts to help John but then realizes that, because of the layout of John’s property, putting the building back together will take much more work than dismantling it took.
What if John’s neighbor made his promise to help reassemble the garage at the time he and John were moving it to John’s property, saying, “Since you helped me take it down, I will help you put
Under what doctrine discussed in the chapter might John seek to recover the profits he lost when he declined to do repair work for one week?John operates a motorcycle repair shop from his home but
Some jurisdictions maintain that it would be irrational to apply the doctrine of promissory estoppel to a promise of at-will employment, given that the employee could be fired after working for only
If the nephew had not had a legal right to engage in the behavior that he agreed to forgo, would the result in this case have been different? Explain.
In most circumstances, parties are free to make whatever promises they wish, but only those promises made with consideration will be enforced as contracts. What is the purpose of this requirement?
The courts generally do not weigh the sufficiency of consideration according to the comparative economic value of what is exchanged. Should they? Why or why not?
What might Blackmon have done to secure payment for Iverson’s use of “The Answer” as a nickname before that use became valuable?
Suppose that only five minutes had elapsed between Blackmon’s suggestion that Iverson use “The Answer” as a marketing slogan and Iverson’s promise to give Blackmon a part of the proceeds.
Tabor is a buyer of file cabinets manufactured by Martin. Martin’s contract with Tabor calls for delivery of fifty file cabinets at $40 per cabinet in five equal installments. After delivery of two
Bernstein owns a lot and wants to build a house according to a particular set of plans and specifications. She solicits bids from building contractors and receives three bids: one from Carlton for
Daniel, a recent college graduate, is on his way home for the Christmas holidays from his new job. He gets caught in a snowstorm and is taken in by an elderly couple, who provide him with food and
Costello hired Sagan to drive his racing car in a race. Sagan’s friend Gideon promised to pay Sagan $3,000 if she won the race. Sagan won the race, but Gideon refused to pay the $3,000. Gideon
E. S. Herrick Co. grows and sells blueberries. Maine Wild Blueberry Co. agreed to buy all of Herrick’s 1990 crop under a contract that left the price unliquidated. Herrick delivered the berries,
As a child, Martha Carr once visited her mother’s 108-acre tract of unimproved land in Richland County, South Carolina. In 1968, Betty and Raymond Campbell leased the land. Carr, a resident of New
New England Rock Services, Inc., agreed to work as a subcontractor on a sewer project on which Empire Paving, Inc., was the general contractor. For drilling and blasting a certain amount of rock,
In 1995, Helikon Furniture Co. appointed Tom Gaede as an independent sales agent for the sale of its products in parts of Texas. The parties signed a one-year contract that specified, among other
Shoreline Towers Condominium Owners Association in Gulf Shores, Alabama, authorized Resort Development, Inc. (RDI), to manage Shoreline’s property. On Shoreline’s behalf, RDI obtained a property
John Sasson and Emily Springer met in January 2002. John worked for the U.S. Army as an engineer. Emily was an attorney with a law firm. Six months later, John bought a townhouse in Randolph, New
Did Beaver have the contractual capacity to enter a contract with an exculpatory clause? Why or why not?Renee Beaver started racing go-karts competitively in 1997, when she was fourteen. Many of the
Assuming that Beaver did, in fact, sign the exculpatory clause, did she later disaffirm or ratify the contract? Explain.Renee Beaver started racing go-karts competitively in 1997, when she was
Now assume that Beaver had stated that she was eighteen years old at the time that she signed the exculpatory clause. How might this affect Beaver’s ability to disaffirm or ratify the
If Beaver did not actually sign the exculpatory clause, could a court conclude that she impliedly accepted its terms by participating in the race? Why or why not?Renee Beaver started racing go-karts
What might have happened in future cases if the court had held that there was no implied-in-law contract between Fountain and Yale Diagnostic Radiology?
How does the result in this case encourage payment on contracts for necessaries?
Determining what is and what is not gambling does not always lend itself to an easy answer. If you buy a mutual fund that consists of a broad array of stocks and your purpose is to enhance your
To determine the enforceability of a covenant not to compete, the courts balance the rights of an employer against those of a former employee. What are these rights? How did S & C’s covenant not to
Should an employer be permitted to restrict a former employee from engaging in a competing business on a global level? Why or why not?
If the “customer agreement” had precluded only class litigation and mandated class arbitration, would the court have considered the provision unconscionable? Why or why not?
Forums for arbitration and other methods of alternative dispute resolution (ADR) are available online. Should the reduced cost and other factors favoring online ADR be considered in determining the
After Kira had had several drinks one night, she sold Charlotte a diamond necklace worth thousands of dollars for just $100.The next day, Kira offered the $100 to Charlotte and requested the return
A famous New York City hotel, Hotel Lux, is noted for its food as well as its luxury accommodations. Hotel Lux contracts with a famous chef, Chef Perlee, to become its head chef at $6,000 per month.
Joanne is a seventy-five-year-old widow who survives on her husband’s small pension. Joanne has become increasingly forgetful, and her family worries that she may have Alzheimer’s disease (a
In 1993, Mutual Service Casualty Insurance Co. and its affiliates (collectively, MSI) hired Thomas Brass as an insurance agent. Three years later, Brass entered into a career agent’s contract with
Frank Rodziewicz was driving a Volvo tractor-trailer on Interstate 90 in Lake County, Indiana, when he struck a concrete barrier. His tractor-trailer became stuck on the barrier, and the Indiana
Millennium Club, Inc., operates a tavern in South Bend, Indiana. In January 2003, Pamela Avila and other minors gained admission by misrepresenting themselves to be at least twenty-one years old.
Gary Forsee was an executive officer with responsibility for the U.S. operations of BellSouth Corp., a company providing global telecommunications services. Under a covenant not to compete, Forsee
Under California law, a contract to manage a professional boxer must be in writing, and the manager must be licensed by the State Athletic Commission. Marco Antonio Barrera is a professional boxer
Dow AgroSciences, LLC (DAS), makes and sells agricultural seed products, in 2000, Timothy Glenn, a DAS sales manager, signed a covenant not to compete. He agreed that for two years from the date of
Go to this text’s Web site at academic, cengage.com/blaw/clarkson and select “Chapter 13.” Click on “Video Questions” and view the video titled The Money Pit. Then answer the following
Can Marta obtain rescission of the contract based on undue influence? If the sale to Janis had been completed before her death, could Janis have obtained rescission based on undue influence?
Can Marta sue Chelene for fraudulent misrepresentation? Why or why not? What element(s) might be lacking?Chelene had been a caregiver for Marta’s eighty-year-old mother, Janis, for nine years.
Now assume that Chelene knew that the basement walls were cracked and bowed and that she had hired someone to install paneling prior to offering to sell the house. Did she have a duty to disclose
If Chelene knew about the problem with the walls but did not know that the house was structurally unsound, could she be liable for negligent misrepresentation? Why or why not?Chelene had been a
Can Marta avoid the contract on the ground that both parties made a mistake about the condition of the house? Explain.Chelene had been a caregiver for Marta’s eighty-year-old mother, Janis, for
Why did the court in this case consider Dr. Markworth’s misdiagnosis a bilateral mistake rather than a unilateral mistake?
Why are situations such as the one presented in this case often sources of litigation appealed to the states’ highest courts?
As long as each click on an ad link on the Web triggers a commission that has to be paid, we will be facing a financial formula that gives rise to unethical behavior.” Do you think that technology
If one of Vokes’s fellow students, rather than her instructor, had praised her ability and encouraged her to buy more lessons, should the result in this case have been different? Explain.
Could the court have severed the unconscionable portions of the arbitration clause and otherwise allowed arbitration to proceed? Why or why not?
The dealer’s contract also provided that Addy did not have to submit to arbitration any claims it might have against Simpson for “monies owed” and that these claims “shall not be stayed
Juan is an elderly man who lives with his nephew, Samuel. Juan is totally dependent on Samuel’s support. Samuel tells Juan that unless he transfers a tract of land he owns to Samuel for a price 35
Grano owns a forty-room motel on Highway 100. Tanner is interested in purchasing the motel. During the course of negotiations, Grano tells Tanner that the motel netted $30,000 during the previous
Discuss whether either of the following contracts will be unenforceable on the ground that voluntary consent is lacking:(a) Simmons finds a stone in his pasture that he believes to be quartz. Jenson,
Lund offered to sell Steck his car and told Steck that the car had been driven only 25,000 miles and had never been in an accident. Steck hired Carvallo, a mechanic, to appraise the condition of the
In 1987, United Parcel Service Co. and United Parcel Service of America, Inc.(together known as UPS), decided to change the parcel delivery business from relying on contract carriers to establishing
Cleveland Chiropractic College (CCC) promised prospective students that CCC would provide clinical training and experience—a critical part of a chiropractic education and a requirement for
The law firm of Traystman, Coric and Keramidas represented Andrew Daigle in a divorce in Norwich, Connecticut. Scott McGowan, an attorney with the firm, handled the two-day trial. After the first day
According to the student handbook at Cleveland Chiropractic College (CCC) in Missouri, academic misconduct includes “selling . . . any copy of any material intended to be used as an instrument of
On behalf of BRJM, LLC, Nicolas Kepple offered Howard Engelsen $210,000 for a parcel of land known as lot five on the north side of Barnes Road in Stonington, Connecticut. Engelsen’s company,
Go to this text’s Web site at academic, cengage.com/blaw/clarkson and select “Chapter 14.” Click on “Video Questions” and view the video titled Mistake. Then answer the following
Would a court likely decide that Odin’s employment contract falls within the Statute of Frauds? Why or why not?Charter Golf, Inc., manufactures and sells golf apparel and supplies. Ken Odin had
Assume that the court does find that the contract falls within the Statute of Frauds and that the state in which the court sits recognizes every exception to the Statute of Frauds discussed in the
Now suppose that Montieth had taken out a pencil, written “10 percent for life” on the back of a register receipt, and handed it to Odin. Would this satisfy the Statute of Frauds? Why or why
Assume that Odin had signed a written employment contract at the time he was hired to work for Charter, but it was not completely integrated. Would a court allow Odin to present parol evidence of
Would an oral agreement between Sawyer and Mills to begin the bonus’s installment payments on a certain date—July 1, 2001, for example—and complete them no later than fifteen months from that
Sawyer contended that the writing requirement of the Statute of Frauds was met through the combination of the recording of the parties’ conversation on June 25 and the checks Mills signed to Sawyer
Some observers argue that enforcing prenuptial agreements when both parties did not have the advice of independent counsel unduly burdens the financially weaker party to the marriage, customarily the
Are there additional theories on which ARI’s request for relief could be based in this case? What common thread underlies these theories?
Could ARI have successfully asserted a claim against SLT based on fraudulent misrepresentation? Explain.
Suppose that the Steelers had not sent Yocca a diagram with the letter notifying him of his seat’s section and that the SBL documents had not included an integration clause. Would the result have
Could Yocca and the other plaintiffs have plausibly argued that the terms of the SBL brochure must have been integrated within the SBL agreement because those terms were needed to define and describe
On May 1, by telephone, Yu offers to hire Benson to perform personal services. On May 5, Benson returns Yu’s call and accepts the offer. Discuss fully whether this contract falls under the Statute
Mallory promises a local hardware store that she will pay for a lawn mower that her brother is purchasing on credit if the brother fails to pay the debt. Must this promise be in writing to be
On January 1, Damon, for consideration, orally promised to pay Gary $300 a month for as long as Gary lived, with the payments to be made on the first day of every month. Damon made the payments
Jeremy took his mother on a special holiday to Mountain Air Resort. Jeremy was a frequent patron of the resort and was well known by its manager. The resort required each of its patrons to make a

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