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law
business law
Introduction To Business Law 3rd Edition Jeff Rey F. Beatty, Susan S. Samuelson - Solutions
1. This case involves a Chicago ordinance. What is an ordinance?2. Can an ordinance prohibit ordnance? 3. What did the ordinance in this case require?4. What was the penalty for failure to pay interest?
1. The realty company in good faith (perhaps) thought the $100 was a fee for bringing a pet into the building, not a security deposit. How can they be penalized for simply making a mistake?2. Does this court think that a double penalty is wise?
There is another security deposit situation in which a landlord often has to pay double damages. What is it?
What should a student do who has properly moved out of an apartment but never received the security deposit or a letter?
Should a landlord generally be liable for harm caused by a tenant’s dog? By a tenant’s dog off the premises?
Tran argued that Shelburne indicates that the owner of premises can be liable to a third party for harm occurring off the premises. Should the Florida court modify its common law rule about dog liability based on Shelburne?
Are the McGuires entitled to a jury trial?
Is Anderson entitled to a trial on the issue of negligence?
Was the landlord liable for the murder?
1. Gartrell did not live at the Dickinson Arms and there is no evidence that the landlord knew of Gartrell personally. Why, then, is the landlord liable for Gartrell’s murder of Campbell?2. Had there been other murders at Dickinson Arms?3. They why should the landlord have foreseen this murder?
1. What could the landlord have done to satisfy its duty to prevent foreseeable crimes?2. Is there any evidence that these steps would have made a difference to Campbell?
Match the following terms with their definitions:___ A. Extraordinary care___ B. Inter vivos gift___ C. Ordinary care___ D. Gift causa mortis___ E. Slight care1. Cannot be revoked2. Required in a bailment for the sole benefit of the bailee3. Can be revoked4. Required in a bailment for the mutual
True or False:1. A gift is unenforceable unless both parties give consideration.2. A gift causa mortis is automatically revoked if the donor dies shortly after making it.3. A bailee always has the right to possess the property.4. A finder of lost property generally may keep the property unless the
1. CPA QUESTION: Which of the following requirements must be met to create a bailment?I. Delivery of personal property to the intended baileeII. Possession by the intended baileeIII. An absolute duty on the intended bailee to return or dispose of the property according to the bailor’s
While in her second year at the Juilliard School of Music in New York City, Ann Rylands had a chance to borrow for one month a rare Guadagnini violin, made in 1768. She returned the violin to the owner in Philadelphia, but telephoned her father to ask if he would buy it for her. He borrowed money
Ronald Armstead worked for First American Bank as a courier. His duties included making deliveries between the bank’s branches in Washington, D.C. Armstead parked the bank’s station wagon near the entrance of one branch in violation of a sign saying:“No Parking Rush Hour Zone.” In the rear
Eileen Murphy often cared for her elderly neighbor, Thomas Kenney. He paid her $25 per day for her help and once gave her a bank certificate of deposit worth $25,000. She spent the money. Murphy alleged that shortly before his death, Kenney gave her a large block of shares in three corporations. He
Who owns the ring?
Who owns the money?
1. What is abandoned property?2. Who keeps abandoned property?3. What is lost property?4. Who is entitled to lost property?
1. What is mislaid property?2. Who may keep mislaid property?3. Which type of property was the cash that Benjamin found, and why?4. What is the primary goal of most statutes and common law rules concerning found property?
On the bailment claim, argue for Shana and Meng-Lu.
On the bailment claim, argue for Billy.
1. Please rule on the bailment claim.2. Please comment on the contract claim.
Was there a bailment?
1. Why did the parties care so much about whether there was a bailment?2. Why did these facts fail to persuade the court?
What is Park ‘N Go’s best argument that there was no bailment?
1. Why did these facts fail to persuade the court?2. But this wasn’t a garage, it was an open-air lot. Why should the statute apply?3. The parking ticket given to a customer contained a liability disclaimer on the back. If the lot has stated that it is not liable, isn’t that the end of the case?
Was there a bailment?
1. What law governed the Mitchells’ lease of the safe deposit box from the Bank?2. How did the box-rental agreement deal with the parties’ liability?
1. Why do the Mitchells argue that there was a bailment? Why?2. Viewed as a bailment relationship, which party is liable for the loss?
The box-rental agreement said the Bank had no possession, custody, or control over the contents of the box. Since bailment requires that the bailee exercise control over the property, how can there be a bailment?
Did the parties create a bailment?
1. Why are the parties arguing about whether there was a bailment?2. What issue was the key factor in deciding whether the parties had created a bailment?3. The court ruled that the garage did have control. Why? 4. Describe a garage in which there is no bailment.
1. Please analyze the case. What kind of a relationship do Brink’s and Happy Hocker have?2. Why is that issue so important?3. Brink’s argued that the parties had a bailment for their mutual benefit. Why did it argue this?
What is the key analytical issue in deciding this bailment case?
1. Was Brink’s right? What kind of a bailment did the parties have?2. Why is this bailment for the sole benefit of the bailor?3. What level of care was Happy Hocker obligated to use?4. Who wins?
Match the following terms with their definitions:___ A. Executor___ B. Intestate___ C. Testator___ D. Administrator___ E. Testatrix1. Woman who has signed a valid will2. Man who has signed a valid will3. Personal representative chosen by the decedent to carry out the terms of a will4. To die
True or False:1. Under the Uniform Probate Code, one spouse is not required to leave any money to the other spouse.2. A holographic will does not need to be witnessed.3. A nuncupative will does not need to be witnessed.4. A principal may not revoke a durable power of attorney.5. A grantor may
1. What is a fiduciary duty? 2. What should Despatch have done to protect itself from liability?3. Was this transaction entirely fair?
1. CPA QUESTION: A personal representative of an estate would breach her fiduciary duties if she:A. Combined personal funds with funds of the estate so that both could purchase Treasury billsB. Represented the estate in a lawsuit brought against it by a disgruntled relative of the decedentC.
If managers act in the best interest of the shareholders, are they protected by the business judgment rule?
Is that what happened with Despatch?
William Cook was a very successful undertaker. When he died, his will left all of his property to his brother Eugene. There were two other pieces of paper in the safe with the will. One said that that his stamp collection should go to his housekeeper, Bertha. This document was signed by two
1. Did Herrig breach his duty of loyalty to Cookies by engaging in self-dealing?2. Did Herrig engage in self-dealing?
Kevin Fitzgerald represented the down-and-out Mission Hill and Roxbury Districts in the Massachusetts House of Representatives. A priest alerted him that Mary Guzelian, a street person who roamed his district, had trash bags in her ghetto apartment stuffed with cash, bonds, and bank books.
When Bill died, he left all of his property in a trust to take care of his wife, Dorris, for the rest of her life. On her death, the money would go to their son, Rob. The Bank of Tulsa was the trustee of this trust. Fifty years later, Rob needed money, so he began writing checks out of Dorris’s
After nearly 40 years of marriage, Frank Honigman executed a new will that left his wife only the minimum required by law. The balance went to his brothers and sisters (the couple had no children). For some time before his death, Honigman had repeatedly told both friends and strangers, using
When Gregg died, his will left his money equally to his two children, Max and Alison. Max had died a few years earlier, leaving behind a widow and four children. Who will get Gregg’s money?
1. Is Herrig protected by the business judgment rule?2. So, is Herrig liable to Cookies?3. Was this transaction fair?
Virtually everyone needs a will. Why?
Is Iola’s second will valid?
Did the directors of RSL Plc violate their duty of care to the corporation?
How did Iola executive her will?
What procedure did Arkansas law require?
The board members of RSL Plc and RSL Ltd overlapped. RSL Plc claims that because of this overlap, both boards were aware of what was going on with RSL Plc. Shouldn’t that make a difference when determining whether the board of RSL Plc was making an informed decision?
1. Why wasn’t the will valid?2. Is there any doubt that Iola intended to make this will and that it represented her wishes?3. Does this law make any sense then?
Are Evelyn’s children entitled to a share of Josiah’s estate?
Does the fact that the board did not formally meet to discuss the loan or the draw down mean that the members acted improperly?
1. What is a pretermitted heir? 2. Is a child entitled to inherit something? 3. How can courts tell if a child is left out by accident?
1. What must a parent do then if he doesn’t want to leave money to a child?2. Why does the law presume that a child who is left nothing has been forgotten?3. What happens to the pretermitted heir?
Did the directors of Trans Union violate their duty of care to the corporation by making an uninformed decision? Did the shareholders consent to this decision?
1. How much is that?2. In this case, did Josiah forget Evelyn?3. Why did the court ignore his clear intent?4. What should Josiah have done?
Should Young and her mother be able to recover damages from the hospital that treated Young against the instructions of her mother? On what legal theories might Young and her mother base their claims?
1. Does a shareholder have the right to obtain corporate records?2. What does “proper purpose” mean?3. Would any of the records that Bergmann requested aid him in managing and protecting his investment?
What arguments might the hospital make?
Shareholders own the company. Why shouldn’t they be entitled to any records they want?
If you were on the jury, what would you decide?
Does a state have the right to punish those who assist the terminally ill to commit suicide?
1. Could you argue that the other items, such as information regarding sexual harassment and discrimination complaints against Lee, might help a shareholder determine if the company was well run?2. Could you argue that some of this information might harm the company?
1. What is the difference between this case and the Cruzan case?2. Why does the state care if someone wants to commit suicide?3. Why did the patients in this case want a physician to help them commit suicide?
Should shareholders be allowed to pass binding resolutions?
Did the Disney directors have the right to pay $130 million to an employee who had worked at the company unsuccessfully and for only 14 months?
If the doctor and patient are willing, then why shouldn’t the patient be allowed to seek help in killing herself?
What was Michael Ovitz’s career path at Disney? Why?
Why should patients be allowed to ask for help from doctors to kill themselves?
What did the courts decide?
When they approved his severance package, Disney’s board did not know how much his severance package would cost. How could this be considered an informed decision under the business judgment rule?
Why did these two men—both rich and famous—treat their assets so differently at death?
Wasn’t the payment ridiculously excessive?
Match the following terms with their definitions:___ A. Insured___ B. Insurer___ C. Owner___ D. Beneficiary___ E. Insurable interest1. The person who issues the insurance policy2. The person who receives the proceeds from the insurance policy3. The person who takes out the policy would be harmed by
Should something be done about executive compensation? If so, what?
True or False:1. If the insured makes any false statement in the application process, the insurance policy is voidable.2. Once an insurance company issues a binder, the policy is irrevocable.3. Although whole life insurance is more expensive than term, it is the best choice because it forces the
Match the following terms with their definitions:___ A. Securities Act of 1933___ B. Per se___ C. Misappropriation___ D. Rule of reason___ E. Securities Exchange Act of 19341. Only a violation if it has an anticompetitive impact2. Regulates companies once they have gone public3. Illegal insider
1. Lucas has bought the following insurance this week:I. A life insurance policy on his brotherII. A life insurance policy on the partner in his accounting practiceIII. A fire insurance policy on the fitness club he belongs to so that if it burns down, he will receive a large enough payment to
Linda Richmond and Eddie Durham had two children before they were divorced. Under the terms of their divorce decree, Durham obtained title to their house. When he died suddenly of a heart attack, the children inherited the house. Richmond moved into the house with the children and began paying the
True or False:1. Before permitting a company to issue new securities, the SEC investigates to ensure that the company has a promising future.2. Small off erings of securities do not need to be registered with the SEC.3. Price-fi xing is legal as long as it does not have an anticompetitive impact.4.
Armeen ran a stop sign and hit the Smiths’ car, killing their child. He had $1.5 million in insurance. The Smiths offered to settle the case for that amount, but Liberty State, Armeen’s insurance company, refused and proposed $300,000 instead. At trial, the jury awarded the Smith’s $1.9
Dannie Harvey sued her employer, O. R. Whitaker, for sexual harassment, discrimination, and defamation. Whitaker counterclaimed for libel and slander, requesting $1 million in punitive damages. Both Whitaker and Harvey were insured by Allstate, under identical homeowner’s policies. This policy
Multiple-Choice Questions1. Under Regulation D, an issuer:A. May not sell to a thousand accredited investorsB. May not sell to 27 unaccredited investorsC. Must make disclosure to accredited investorsD. Must make disclosure to unaccredited investorsE. May advertise the stock publicly2. Which of the
Clyde Anderson received a letter from his automobile insurance company notifying him that it would not renew his policy that was set to expire on February 28. Anderson did not obtain another policy, and, on March 1, at 2:30 a.m., he struck another vehicle, killing two men. Later that day, Anderson
Christopher Stenger bought 12 Impressionist paintings from R. H. Love Galleries for $1.5 million. Love told Stenger that art investment would produce a safe profit. The two men agreed that Stenger could exchange any painting within five years for any one or two other paintings with the same or
Jason lived in an apartment with Miri, to whom he was not married. When he applied for homeowner’s insurance, the form asked their marital status. He checked the box that said “married.” Later, the apartment was robbed and Jason filed a claim with his insurance company. When the company
Did Tim’s have an insurable interest in the building?
You’re in line at the movie theater when you overhear a stranger say: “The FDA has just approved Hernstrom’s new painkiller. When the announcement is made on Monday, Hernstrom stock will take off.” What if you buy stock of the company before the announcement on Monday?
Did Hopkins materially misrepresent his health when applying for insurance? Does Golden Rule have the right to rescind his insurance policies?
Fifty bakeries in New York agreed to raise the retail price of bread from 75¢ to 85¢. All the association’s members printed the new price on their bread sleeves. Are the bakeries in violation of the antitrust laws?
1. Why did Hopkins apply for health and life insurance?2. Did he accurately answer all the questions on the insurance application?3. Does it matter if Hopkins knew he had AIDS?4. In the end, did Hopkins accomplish anything by lying on his application?5. What is the moral of the story?
Did he know he was HIV positive or had AIDS when he applied for the insurance?
Suppose that Disney insists that retailers cannot sell DVDs of the High School Musical series for less than $14.95. The company threatens to cut off any retailers who discount that price. But video stores would like to use these movies as a loss leader—selling them at a very low price to lure
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