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Questions and Answers of
Business Law
Under what circumstances might a forced sale of the property of a limited partnership on its dissolution be appropriate?
Was this relationship a partnership for a term or a partnership at will? Grace Tarnavsky and her sons, Manny and Jason, bought a ranch known as the Cowboy Palace in March 2006, and the three
Did Manny have the authority to hire additional laborers to work at the ranch after his injury? Why or why not? Grace Tarnavsky and her sons, Manny and Jason, bought a ranch known as the Cowboy
Under the current UPA, can Al’s Feed Barn bring an action against Jason individually for the Cowboy Palace’s debt? Why or why not? Grace Tarnavsky and her sons, Manny and Jason, bought a
Suppose that after his back injury in 2008, Manny sent his mother and brother a notice indicating his intent to withdraw from the partnership. Can he still be held liable for the debt to Al’s Feed
Daniel is the owner of a chain of shoe stores. He hires Rubya to be the manager of a new store, which is to open in Grand Rapids, Michigan. Daniel, by written contract, agrees to pay Rubya a monthly
Dorinda, Luis, and Elizabeth form a limited partnership. Dorinda is a general partner, and Luis and Elizabeth are limited partners. Consider each of the separate events below, and discuss fully which
Meyer, Knapp, and Cavanna establish a partnership to operate a window-washing service. Meyer contributes $10,000 to the partnership, and Knapp and Cavanna contribute $1,000 each. The partnership
Frank Kolk was the manager of Triples American Grill, a sports bar and restaurant. Kolk and John Baines opened bank accounts in the name of the bar, each signing the account signature cards as
In August 1998, Jea Yu contacted Cameron Eppler, president of Design88, Ltd.,to discuss developing a Web site that would cater to investors and provide services to its members for a fee. Yu and
Charles Chaney and Lawrence Burdett were equal partners in a partnership in Georgia known as BMW Partners. Their agreement was silent as to the effect of a partner’s death on the firm. The
At least six months before the 1996 Summer Olympic Games in Atlanta, Georgia, Stafford Fontenot, Steve Turner, Mike Montelaro, Joe Sokol, and Doug Brinsmade agreed to sell Cajun food at the Games and
Charlie Waugh owned and operated an auto parts junkyard in Georgia. Charlie’s son, Mack, started working in the business part-time as a child and full-time when he left school at the age of
In August 2003, Tammy Duncan began working as a waitress at Bynum’s Diner, which was owned by her mother, Hazel Bynum, and her stepfather, Eddie Bynum, in Valdosta, Georgia. Less than a month
In 1991, Hassan Mardanlou and Ali Ghaffarian signed a lease for 3960 South State Street in SaltLake City, Utah. Ghaffarian paid $6,000 for the first and last months’ rent, and said to Mardanlou,
The Ethical Dimension Did any of Magnolia’s members, managers, or agents act unethically? Explain.
The Legal Environment Dimension Why is the liability of the members of an LLC limited with respect to the firm’s debts and other obligations?
What If the Facts Were Different? Suppose that Kuhn and Tumminelli had signed a written operating agreement that required both members’ indorsements when cashing customers’ checks. Assuming that
The Legal Environment Dimension What does the outcome in this case suggest to potential members of LLCs who want to avoid the negative consequences of debt and litigation to which Kuhn was subject?
On what basis might Cameron maintain a suit against Anderson?
How might the outcome of this case have been different if Cameron had been merely an aircraft parts supplier, with his only profit to be from the sale of components to Anderson?
Would Davidson Masonry automatically be taxed as a partnership or a corporation? Marilyn Rowe, decided to submit a bid for a decorative concrete project that incorporated artistic metalwork.
Is Davidson Masonry member managed or manager managed? Marilyn Rowe, decided to submit a bid for a decorative concrete project that incorporated artistic metalwork. They contacted Shana
When Davidson Masonry and Lafayette entered an agreement to work together, what kind of special business form was created? Explain. Marilyn Rowe, decided to submit a bid for a decorative
Suppose that during construction, Lafayette had entered into an agreement to rent space in a warehouse that was close to the bridge so that she could work on her sculptures near the site where they
John, Lesa, and Tabir form a limited liability company. John contributes 60 percent of the capital, and Lesa and Tabir each contribute 20 percent. Nothing is decided about how profits will be
Bateson Corp. is considering entering into two contracts—one with a joint stock company that distributes home products east of the Mississippi River and the other with a business trust formed by a
Joe, a resident of New Jersey, wants to open a restaurant. He asks Kay, his friend, an experienced attorney and a New Yorker, for her business and legal advice in exchange for a 20 percent ownership
Gloria Duchin, a Rhode Island resident, was the sole shareholder and chief executive officer of Gloria Duchin, Inc. (Duchin, Inc.), which manufactured metallic Christmas ornaments and other novelty
Walter Matjasich and Cary Hanson organized Capital Care, LLC, in Utah. Capital Care operated, and Matjasich and Hanson managed, Heartland Care Center in Topeka, Kansas. LTC Properties, Inc., held a
Michael Collins entered into a three-year employment contract with E-Magine, LLC. E-Magine was in business for only a brief time, during which it incurred considerable losses. In terminating
In 1993, TOG Acquisition Co. attempted to acquire the Orleander Group, a manufacturer of bicycle accessories, but failed for lack of financing. Orleander then granted to Herrick Co. an exclusive
Westbury Properties, Inc., and others (collectively, the Westbury group) owned, managed, and developed real property. Jerry Stoker and the Stoker Group, Inc. (the Stokers), also developed real
A “Certificate of Formation” (CF) for Grupo Dos Chiles, LLC, was filed with the Delaware secretary of state in February 2000. The CF named Jamie Rivera as the “initial member.”The next month,
Blushing Brides, L.L.C., a publisher of wedding planning magazines in Columbus, Ohio, opened an account with Gray Printing Co. in July 2000. On behalf of Blushing Brides, Louis Zacks, the firm’s
What If the Facts Were Different? If Gauthier had been an independent contractor rather than Angelo’s employee, would the result in this case have been different? Explain.
The Legal Environment Dimension Under what circumstances might an employee’s supervisor, or even a corporate officer or director, be held liable for the employee’s crime?
What is the relationship between NAC and its shareholders, and how is that relationship different from the usual relationship between a corporation and its shareholders?
There are about two hundred sovereign nations in the world today, but only thirty have signed the Cyber-Crime Convention. Why do you think so many nations’ governments have been reluctant to be
With respect to click fraud, which was the heart of Feldman’s claim in this case, what circumstances might suggest unethical behavior by Google?
Under what different facts might the court have held that the plaintiff did not have reasonable notice of the terms of the agreement and thus did not assent to them?
Suppose that the individual who clicked on the “Yes” button and installed the software was not authorized to do so. Would the result have been different?
If DocMagic had e-mailed the forum-selection clause to Mortgage Plus and Mortgage Plus had not responded, could the “silence” be construed as an acceptance of the clause? Explain your answer.
Under the UCC, a contract for a sale of goods must normally state a quantity so that a court will have a basis for determining a remedy. Here, Amber’s alleged oral contract did not include a
Reilly included with each shipment a standard invoice stating that it constituted the parties’ entire agreement and that its “Standard Terms” could be modified only in a writing signed by the
Did the Hyatts accept the list of contract terms included in the computer box? Why or why not? What is the name used for this type of e-contract?Ted and Betty Hyatt live in California, a state that
What type of agreement did the Hyatts form with Cyber Tool?Ted and Betty Hyatt live in California, a state that has extensive statutory protection for consumers. The Hyatts decided to buy a computer
Suppose that the Hyatts experienced trouble with the computer’s components after they had used the computer for two months. What factors will a court consider in deciding whether to enforce the
Are the Hyatts bound by the contract terms specified on Cyber Tool’s “Terms of Service” page that they did not read? Which of the required elements for contract formation might the Hyatts’
Paul is a financial analyst for King Investments, Inc., a brokerage firm. He uses the Internet to investigate the background and activities of companies that might be good investments for King’s
Anne is a reporter for Daily Business Journal, a print publication consulted by investors and other businesspersons. She often uses the Internet to conduct research for the articles that she writes
Bob, a sales representative for Central Computer Co., occasionally uses the Internet to obtain information about his customers and to look for new sales leads. While visiting the Web site of
Ticketmaster Corp. operates a Web site that allows customers to buy tickets to concerts, ball games, and other events. On the site’s home page are instructions and an index to internal pages (one
1-A Equipment Co. signed a sales order to lease Accware 10 User NT software, which is made and marketed by ICode, Inc. Just above the signature line, the order stated: “Thank you for your order. No
America Online, Inc. (AOL), provided e-mail service to Walter Hughes and other members under a click-on agreement titled “Terms of Service.” This agreement consisted of three parts: a “Member
Stewart Lamle invented “Farook,” a board game similar to “Tic Tac Toe.” In May 1996, Lamle began negotiating with Mattel, Inc., to license Farook for distribution outside the United States.
Mary DeFontes bought a computer and a service contract from Dell Computers Corp. DeFontes was charged $950.51, of which $13.51 was identified on the invoice as “tax.” This amount was paid to the
Internet Archive (IA) is devoted to preserving a record of resources on the Internet for future generations. IA uses the “Wayback Machine” to automatically browse Web sites and reproduce their
In 2000 and 2001, Dewayne Hubbert, Elden Craft, Chris Grout, and Rhonda Byington bought computers from Dell Corp. through its Web site. Before buying, Hubbert and the others configured their own
Go to this text’s Web site at academic. cengage.com/blaw/clarkson and select “Chapter 19.” Click on “Video Questions” and view the video titled E-Contracts: Agreeing Online. Then answer the
If neither Thompson nor Morris had any experience in the business of cattle trading, how might the result in this case have been different?
Suppose that the transactions in which Thompson acted as an order-buyer had occurred in other countries. Would the court have still ruled that Thompson was a merchant? Why or why not?
How does the UCC’s obligation of good faith relate to the application of the principles concerning additional terms?
Applying the correct principles to the facts in this case, how would you have decided the issue? Explain.
Why would the seller’s knowledge of the buyers’ limited resources support a finding of unconscionability? Explain.
Why didn’t the court rule that the Joneses, as adults, had made a decision of their own free will and therefore were bound by the terms of the contract, regardless of the difference between the
Would a court be likely to decide that the transaction between Holcomb and TCG was covered by the Uniform Commercial Code (UCC)? Why or why not?
Would a court be likely to consider Holcomb a merchant under the UCC? Why or why not?
Did the parties have a valid contract under the UCC? Were any terms left open in the contract? If so, which terms? How would a court deal with open terms?
Suppose that Holcomb and TCG meet in October in an attempt to resolve their problems. At that time, the parties reach an oral agreement that TCG will continue to work without demanding full payment
Strike offers to sell Bailey one thousand shirts for a stated price. The offer declares that shipment will be made by the Dependable Truck Line. Bailey replies, “I accept your offer for one
Flint, a retail seller of television sets, orders one hundred Color-X sets from manufacturerMartin. The order specifies the price and that the television sets are to be shipped by Hummingbird Express
Shane has a requirements contract with Sky that obligates Sky to supply Shane with all the gasoline Shane needs for his delivery trucks for one year at $2.30 per gallon. A clause inserted in small
Heatway Radiant Floors and Snowmelting Corp. sell parts for underground radiant heating systems. These systems circulate warm fluid under indoor flooring as an alternative to conventional heating
Quality Pork International is a Nebraska firm that makes and sells custom pork products.Rupari Food Services, Inc., buys and sells food products from and to retail operations and food brokers. In
Propulsion Technologies, Inc., a Louisiana firm doing business as PowerTech Marine Propellers, markets small steel boat propellers that are made by a unique tooling method. Attwood Corp., a Michigan
In 1998, Johnson Controls, Inc. (JCI), began buying auto parts from Q.C. Onics Ventures, LP. For each part, JCI would inform Onics of its need and ask the price. Onics would analyze the
Clear Lakes Trout Co. operates a fish hatchery in Idaho. Rodney and Carla Griffith are trout growers. Clear Lakes agreed to sell “small trout” to the Griffiths, who agreed to sell the trout back
Daniel Fox owned Fox and Lamberth Enterprises, Inc., a kitchen and bath remodeling business, in Dayton, Ohio. Fox leased a building from Carl and Bellulah Hussong. Craftsmen Home Improvement, Inc.,
Go to this text’s Web site at academic. cengage.com/blaw/clarkson and select “Chapter 20.” Click on “Video Questions” and view the video titled Sales and Lease Contracts: Price as a Term.
Given that Euro Motorcars had had prior dealings with Figueroa on a number of occasions and did not suspect that Figueroa would commit theft, was the result in this case fair? Why or why not?
If automobile title documents were available online, would that have helped Euro to avoid loss in this situation? What problems might the online availability of title documents lead to?
How did the “usual and customary” methods of dealing in the art business help Malmberg deceive the other parties in this case? What additional steps might those parties have taken to thwart this
Considering the international locales in this case, why was Lindholm able to bring an action against Brant in Connecticut?
Would the result have been different if the contract between Spray-Tek and Niro had specified “F.O.B. Bethlehem, Pennsylvania”? Explain.
One of the elements required to establish a carrier’s liability is to show that the goods arrived in damaged condition. Should Robbins Motor Transportation have been absolved of liability in this
At what point is a crop of broccoli identified to the contract under the Uniform Commercial Code (UCC)? Explain. Why is identification significant?In December, Mendoza agreed to buy the broccoli
When does title to the broccoli pass from Willow Glen to Mendoza under the terms of this contract? Why?In December, Mendoza agreed to buy the broccoli grown on one hundred acres of Willow Glen’s
Suppose that while in transit, Falcon’s truck overturns and spills the entire load. Who bears the loss, Mendoza or Willow Glen?In December, Mendoza agreed to buy the broccoli grown on one hundred
Suppose that instead of buying fresh broccoli, Mendoza had contracted with Willow Glen to purchase one thousand cases of frozen broccoli from Willow Glen’s processing plant. The highest grade of
Mackey orders from Pride one thousand cases of Greenie brand peas from lot A at list price to be shipped F.O.B. Pride’s city via Fast Freight Lines. Pride receives the order and immediately sends
On May 1, Sikora goes into Carson’s retail clothing store to purchase a suit. Sikora finds a suit he likes for $190 and buys it. The suit needs alterations. Sikora is to pick up the altered suit at
Zeke, who sells lawn mowers, tells Stasio, a regular customer, about a special promotional campaign. On receipt of a $50 down payment, Zeke will sell Stasio a new Universal lawn mower for $200, even
H.S.A. II, Inc., made parts for motor vehicles. Under an agreement with Ford Motor Co., Ford provided steel to H.S.A. to make Ford parts. Ford’s purchase orders for the parts contained the term
Corvette Collection of Boston, Inc. (CCB), was a used-Corvette dealership located (despite its name) in Pompano Beach, Florida. In addition to selling used Corvettes, CCB serviced Corvettes and sold
William Bisby gave an all-terrain vehicle (ATV) to Del City Cycle in Enid, Oklahoma, to sell on his behalf. Joseph Maddox bought the ATV but paid for it with a check written on a closed checking
Pearson and Steve and Tara Carlson agreed to buy a 2004 Dynasty recreational vehicle (RV) from DeMartini’s RV Sales in Grass Valley, California. On September 29, Pearson, the Carlsons, and
Kenneth West agreed to sell his car, a 1975 Corvette, to a man representing himself as Robert Wilson. In exchange for a cashier’s check, West signed over the Corvette’s title to Wilson and gave
Go to Case 21.3,Spray-Tek, Inc. v. Robbins Motor Transportation, Inc., 426 F.Supp.2d 875 (W.D. Wis. 2006), on pages 428–430. Read the excerpt and answer the following questions. (a) Issue: What
Go to this text’s Web site at academic. cengage.com/blaw/clarkson and select “Chapter 21.” Click on “Video Questions” and view the video titled Risk of Loss. Then answer the following
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