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Questions and Answers of
Business Law
a) On what theory did Boeken sue Philip Morris? b) How did he claim Philip Morris committed fraud? c) Boeken testified that he read the Surgeon General's warning about smoking in the 1960's, so how
a) On what theory did the franchisees sue Carvel? b) What must a plaintiff prove to win on this theory? c) What does "economic advantage" mean? d) How does this tort differ from tortious interference
a) Was the railroad liable? b) Should an individual be held responsible for all injuries of his conduct?
a) The two lower courts found for all defendants. Why? b) What is the logic behind the lower courts' position that a person or organization that pours alcohol has no duty to the general public?
a) What are the criteria for res ipsa loquitur to apply? b) Which element do the parties dispute in this case?
a) What is assumption of the risk? b) Is the court saying that death is an obvious danger when jet skiing? c) But Rachel was a passenger on a jet ski out for fun on a warm afternoon, how is that
a) Who won? b) Did Alden Leeds start the fire that led to the release of toxic fumes? c) Way? d) They why is Alden Leeds liable? e) What did Alden Leeds do that subjected it to strict liability? f)
Did Cyber heat know its affiliates were sending sexually explicit emails? But, Cyber heat told its affiliates specifically not to violate the Act and discouraged them from using email. How can Cyber
a) What are the elements for a claim of intrusion in this case? b) Are expectations of privacy governed by subjective or objective standards? c) What is the concept of "limited privacy?"
a) Davis made three primary arguments. What were they? b) Is there any substance to Davis's argument that the restrictions were too broad? c) Does the court suggest that an employer is free to make
a) What should Britt argue to convince the court of his implied contract claim? b) What should the college argue to refute Britt's claim?
a) What are the elements of promissory Superior in this case? b) How did Harmon reasonably rely on the Commission's promise and take action to his detriment? c) Who is the promise in this case?
a) In this case, Novak never agreed to the services. Isn't one element of a contract that there must be an agreement; an offer and acceptance? b) The court laid out some specific reasons why people
a) What was the basis for the Caterer's claim? b) On what law was the Caterer's claim based? c) Then why does this court's opinion discuss the UCC? d) Why does he argue that? e) When a contract
a) Was this a bilateral or unilateral contract?b) How can you tell?c) Did Nationwide intend this offer to be taken seriously?d) If Nationwide didn't intend it to be taken seriously then why did the
a) The parties agreed to a letter of intent with the purchase price, payment terms, and contingency clauses. Why wasn't that enough to create a binding agreement? b) Why did they go to the trouble of
a) Chase said he would "take care of" Baer and pay him "in a manner commensurate with the true value of his services." Don't those statements show Chase's intent to compensate Baer? b) Then why does
a) What is the disputed clause? b) Which party proposed this term? c) When did OMT first see the tax clause? d) But Bayway sent a fax confirming the agreement. Didn't that fax contain the tax
a) What is Netscape asking the court to do? b) Why does Netscape want to deny plaintiffs their day in court? c) What do plaintiffs say? d) Where were the arbitration provisions? e) If they were on a
a) What did Soldau do that was wrong? b) How did the court rule in favor of Organon? c) But Soldau got the letter back - doesn't that mean the mailbox rule doesn't apply?
Niels owned three adjoining parcels of land in Arizona. Hannah wanted to buy one. Over dinner, the two sketched and signed this agreement: "Binding Contract: Niels agrees to sell one of his three
When a Tom Cat Bakery delivery van struck Elizabeth Nadel, she suffered significant injuries, Nadel filed suit. Before the trial, Tom Cat's attorney offered a $100,000 settlement, which Nadel
a) Before we discuss the contracts issue, can you explain how Hamer wound up as the plaintiff? b) Why did the uncle's estate deny payment to Hamer? c) How did the estate characterize this
a) What is an accord and satisfaction?b) What is an unliquidated debt?c) What is the unliquidated debt in this case?d) How much did Taylor think he owed Henches?e) How much did Henches think Taylor
a) What is an option contract? b) Question: What is an "escrow?" c) How did the escrow work in this case? d) Brodsky gave a $5,000 check to the bank. Why wasn't that consideration? e) Brodsky
Sami walks into a restaurant. She is given a menu, which indicates that lobster is $30. Sami orders the lobster. It arrives, and Sami thinks it is very tasty. When the bill arrives, Sami tries to
a) How does life insurance work? b) Why does the law require that the person taking out a life insurance policy have an insurable interest in the life of the insured? c) Chem was Michael, the
a) Authentic did get its license shortly after it began the work for Mayo. Isn't this result a triumph of form over substance? b) Mayo is taking advantage of a loophole-is that a result the law
a) How does the court analyze the reasonableness of this noncompetition agreement? b) Why does it rule that the noncompetition is invalid? c) Since it ruled the clause to be invalid, is King free to
a) What is an exculpatory clause? b) Why did the court hold this exculpatory clause to be unenforceable? c) Is that always true? d) Many of the examples in the text show exculpatory clauses to be
a) Star Chevrolet either did not know that Green was entitled to his money back, or knew but refused to honor it. Why was that a particularly costly mistake by Star? b) Why was Kevin Green permitted
a) What is "flipping?" b) Is flipping illegal or inherently fraudulent? c) What made this flipping scheme fraudulent? d) What is "100 percent financing?" e) What was Hoffman's role in this scam? f)
a) What is the issue in this case? b) I thought we had a rule called "caveat emptor"- let the buyer beware? c) What is the difference between fraud in the inducement of a contract and fraud in the
a) I thought an advertisement was merely an invitation for an offer. Why did this advertisement create an offer? b) The dealer could have caught this serious typo by proofreading the ad before the
Ball-Mart, a baseball card store, had a 1968 Nolan Ryan rookie card in almost perfect condition for sale. Any baseball collector would have known that the card was worth at least $1,000; the
Paula was alone, pregnant, and confused. She needed help and support, which she found at Methodist Mission Home of Texas. In the days following her child's birth, representatives of Methodist Mission
a) What is the purpose of the statute of frauds? b) Why has the statute of frauds historically included the six types of contract listed in the text? c) What is the effect of the statute of
a) What is a life interest? b) What evidence does the court rely on in ruling for Baker? c) What argument did the Daves make based on the courtroom testimony? d) Question: Did they rely on anything
a) Why wasn't the clerking sheet alone sufficient to satisfy the Statute of Frauds? b) Why doesn't UCC Section 2-201(2), the Merchant's Exception, apply in this case? c) What is the purpose of the
a) What is missing from each fax? b) Natalie and Butch both refuse to go through with their agreements, and Antonia sues both. Who will win her suit against Natalie? c) Who will win Antonia's suit
a) What does the parol evidence state? b) What is an integrated contract? c) What is the source of this dispute? d) Why? e) Was this rule part of Mayo's employment agreement with the University? f)
A disc jockey named Z-Trip made a remix of a Beastie Boys song with the hip-hop group's permission. Monster Energy (ME), an energy drink company, wanted to use the remix as part of a video promotion.
a) Why did Tenet want to assign their lease to pelican? b) If that is the case, why would West Jefferson deny the assignment to Pelican? c) Isn't it reasonable for West Jefferson to not want to
a) What is UCC §9 403?b) How does UCC §9 403 apply to this case?c) What argument does Brooks America make to try to get around UCC §9 403?d) Why-was there something wrong with the
a) Why is Strategic the plaintiff in this case when the dispute arose with Brighton's ads? b) What if the ads had been 10% smaller? Would the result have been different? c) What facts does the court
a) How did O'Brien breach the contract? b) If he breached the contract, why does OSU have to pay anyway? c) But, if the parties agreed to the terms of the contract, and O'Brien did not honor those
a) First, a refresher: what is a requirements contract? b) What problems might this force majeure clause cause you? c) What steps can one take to protect against non-performance based on force
Westinghouse sold uranium in long-term contracts at fixed prices, betting that market prices would be stable or fall (as they had been). But this was a bad bet: Uranium prices skyrocketed as a result
Jacobs Builders entered into a contract with Kent to build him a home. The agreement stated that Jacobs would use only certain brand-name materials. Upon completion of the home, Kent discovered that
a) Baxendale was obviously late in transporting the shaft. What is the dispute about? b) Why does Baxendale argue it would it be unfair to hold him liable for lost profits? c) Isn't it obvious that
a) What are consequential damages? b) What were the unique circumstances of Bi-Economy? c) Wasn't the unique circumstance that it went out of business? d) What point was the court trying make by
a) On what claim did the trial court award damages to Toscano? b) On what promise did Toscano rely? c) What harm did Toscano suffer in reliance on Green's promise? d) Why wasn't Toscano successful on
a) Generally, when does an agreement concerning an exchange of promises require performance to be exchanged? b) On what authority did the court rely in determining whether to award restitution in
a) What did the trial court consider in the Hylers' claim of misrepresentation? b) What does Autorama argue?
a) How did this dispute arise? b) On what basis did he disaffirm? c) Did he fail to disaffirm properly? d) Then why didn't BMC honor his disaffirmance? e) In this part of its opinion does the court
Walgreens operated a pharmacy in the Sara Creek mall. As part of this long-term lease, Sara Creek agreed not to lease mall space to another pharmacy. During an economic recession, Sara Creek's
a) Why is ambiguity interpreted against the drafter? b) How does the court define "ambiguous?" c) How must the ambiguity in the contract at issue be resolved?
a) According to the court, what does the implied covenant of good faith and fair dealing protect? b) How is it possible for approximately half the states to disagree with the Court and not imply a
What are the advantages and disadvantages of hiring a lawyer to draft or review a contract? Discuss in detail.
a) Only one of the two plaintiffs succeeded. Which one? b) Why did Maude's claim succeed? c) Why did Harold's claim fail?
a) What is the basis for i.LAN's and Next Point's dispute? b) What law governs the software licenses in question? c) Then what law does the court use to resolve the dispute? d) Why? e) Do you mean
a) What is the predominant purpose test? b) Why is this important? c) What is the point the Naffziger's are making, albeit unsuccessfully, about the predominant purpose of the contract? d) Why does
a) How did this lawsuit arise? b) Why didn't the parties clear up the disagreement before going ahead with the deal? c) Sanders explicitly said it needed the boilers in August. Superior did not
a) What three issues does this case raise? b) What sections of the UCC does the court look at to resolve these issues? c) According to the court, why are suits alleging breach of good faith in
a) What sections of Article 2 govern this case? b) There are several questions in this case. Which issue is the most important? c) Who is actually litigating this case? d) Ignore the law for a moment
a) What is a bona fide purchaser? b) What is voidable title? c) What is an example of voidable title? d) Simmons purchased the diamond ring with a bad check. How can he have any title to it? e) We
a) What title did Sitton obtain when he purchased the watch? b) Kotis paid $3,550 for the watch; he clearly gave value. What evidence supports Kotis's argument that he acted in good faith? c) What
a) First things first. Why are these animals called "Tennessee Walking Horses." Are they such good walkers? b) Enough trivia. What is a bailment? c) Who was the bailor and who was the bailee? d) Why
What is the result if the parties did not allocate the risk of loss in their contact?
a) What is an express warranty? b) Would you classify Sony's claims about the ten year life cycle as more akin to puffery or an affirmation of fact?
a) Does the ruling mean that Wendy's has breached its implied warranty of merchantability? b) If a defendant has breached the implied warranty of merchantability does it mean the defendant has also
a) What is the outcome? b) Why is Pedro entitled to both trucks? c) Does either Mia or Brianna have any remedy? d) Assume that Roger has absconded and cannot be sued. Does either Mia or Brianna have
a) What is the difference between a warranty disclaimer and a remedy limitation? b) Give an example of each. c) Sellers often include this language: "Sold as is." What does that mean, legally? d)
a) Why does the UCC require that a seller have a chance to cure? b) What was the basis of Murphy's warranties? c) What was the cause of the nonconformities? d) What should happen when the case is
a) The trailer had water damage before the Kiesel's purchased it. Why did Lile argue that they were not entitled to their money back? b) Why would Lile want to fix the trailer, wouldn't it be easier
a) Neither party said anything about warranties. Did the goods come with any warranties? b) What was the express warranty? c) What were the implied warranties and how were they created? d) What does
The UCC's cover provision requires the plaintiff act in good faith and a reasonable manner. Why was Hessler's conduct reasonable?
In March, Amy contracted for Gino Fashion Tuxedo to outfit her groom on their wedding day. The contract provided that any cancellation would automatically result in forfeiture of the deposit. Weeks
Under the terms of a long-term supply contract, Linde supplied United Aluminum Corporation (UAC) with nitrogen at $0.23 per unit. Upon expiration, that contract gave UAC the sole option to renew the
a) What is a "loan-to-value" ratio? b) Can you explain LTV in the context of this case? c) How did this lawsuit arise? d) Which course did Johnson and Layne take? e) Why did the court rule for Bank
a) What kind of goods was the mobile home? b) Why? c) What kind of a security interest did the bank have? d) So what? e) Therefore, Oak Hill won the dispute between creditors-right? f) Oak Hill
What could Tele Maker have done to prevent this disaster?
a) What is so special about a PMSI? b) How does one obtain a PMSI? c) Are the goods in this case inventory or non-inventory? d) What is the difference? e) To obtain priority for a non-inventory PMSI,
a) Pursuant to the UCC, what is "breach of peace?" b) What is default? c) What does the secured party have the right to do when the debtor defaults?
After a federal judge refused to dismiss criminal charges against him, Michael Reed took revenge by electronically filing a UCC financing statement listing the judge, the prosecuting attorney, and
a) What does the Code require to create a negotiable instrument? b) Why are these requirements essential for negotiability? c) Why is a negotiable instrument like a courier without luggage? d) Is the
a) What was going on in this case? b) Why didn't Mayflower keep the note that Mary Johnson signed? c) Was the Lender, in the end, a holder in due course? d) Why did Mayflower and the Lender think
a) To be negotiable, what must a note look like? b) Was this note in writing? c) Was it signed by Blasco? d) Did it contain an unconditional promise or order to pay? e) Presumably Blasco knew the
What are the differences between order paper and bearer paper?
a) What did Rosenbaum and Bowen agree to do? b) What does "secured by her house" mean? c) Is this arrangement fair? d) Is this arrangement with Rosenbaum legal? e) Why did Rosenbaum agree to Bowen's
a) Is this a fair result? b) Should American Express have been on notice when it received checks payable to Amerex? Similarly, should the Metropolitan Opera Company have wondered why it got checks
a) Why are both real and personal defenses valid against a holder; but only real defenses are valid against a holder in due course? What is the difference between real and personal defenses? b) In
Does the holder of this commercial paper have an unconditional right to be paid?
a. Why didn't Messing just deposit the check in his own checking account instead of trying to cash it at a bank where he had no account? b. Is there anything wrong with that? c. Why did Messing
a. Let me get this straight: a Merrill Lynch employee twice told Harrington that the MacNab's account contained sufficient funds to cover the check-once orally, once in writing. The employee promised
a. In this diagram, who is primarily liable on the note? b. Who is secondarily liable to Trustie if Shane refuses to pay? c. If Hannah pays Trustie, can she demand payment from Christian? d. Why
Has John violated his transfer warranty to St. Joseph? John and Nancy Augustine hired Hanover Homes to build a house. They took out a construction loan from South Bend Bank. When directed by the
If students were asked to bring in checks, this would be the appropriate time to look at them. How much space is usually left on the lines? a. Would it be easy or difficult to change the name of the
a. Who is negligent in this case? b. Who lost? A stranger knocked on Sam Crisp's door one day to warn him that his lightning rod needed repair. Crisp, who was in his late 70s, agreed to $12.50 worth
a. The embezzler is a "low level" clerk. Did she have responsibility for issuing checks? What difference does it make whether or not she had responsibility? b. Did Nichols commit single or double
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