Questions and Answers of Business Law Principles

Beng-Yu Woo, Xiaoming Li, and Vivian Hsiun created and patented an invention titled “Full Duplex Single Chip Video Codec.” At the time, Woo, Li, and Hsiun were employees of Infochips Systems,
CGI Federal, Inc., is a corporation that provides a number of services to the United States Passport Agency, included the processing of passport application. Passport applicants must submit sensitive
In 2001, the City of New York and the Dormitory Authority of the State of New York (DASNY) entered into an agreement to build a forensic biology laboratory in Manhattan. Per the agreement, DASNY
The Anchor Glass Container Corporation and its parent company, Consumers Packaging, Inc. (CPI), entered into a series of agreements with Encore Glass, Inc., to supply glass containers of a specific
Mind & Motion entered into a real estate purchase contract (REPC) with Celtic Bank to buy a large piece of the bank’s foreclosed property. Although the county had approved plans to construct
In July 2017, Latrice Merritt entered a residential lease with Doran 610 Apartments, LLC. Under the terms of the lease agreement, Merritt was prohibited from installing a private security system in
Hemlock Semiconductor Operations, LLC, and SolarWorld Industries Sachsen GmbH, are both companies involved in the manufacture of components for solar power products. Prior to the lawsuit, the two
Zachary and Carrie Sexton (the Buyers) were searching for a home in the Kings wood neighborhood of Atlanta, Georgia. The Buyers’ real estate agent learned that Russell and Linda Sewell (the
Fresh Food Direct, LLC, entered into a lease agreement with Jet Star Realty, LLC. Fresh Food terminated the lease before its term’s end, and the parties disputed the amount of rent that Fresh Food
Texas Inpatient Consultants, LLLP, is a partnership that employs physicians to deliver medical care to hospitalized patients of other physicians. Texas Inpatient recruited Julius Tabe, M.D., to work
The agreement contained a liquidated damages clause that held, “Should Employee voluntarily terminate or the Employer terminates his/her employment … within one year of executing this Agreement,
Extreme Machine manufactures machines and parts for various industries; they have an office in Youngstown, Ohio. Avery Dennison manufactures and sells labels from a plant in Mentor, Ohio. They use
Plaintiff visited South Chicago on January 10, 2008, seeking a new 2008 Nissan Versa (Versa) with manual transmission, anti-lock brakes, and other features. He was told by the employees of South
In February 2014, defendant Ibrahim M. Shihadeh, d/b/a Creative Designs Kitchen and Baths, agreed to purchase 25% of his anticipated natural gas needs at a fixed price for the 2014–15 and 2015–16
This case deals with several issues regarding contract formation under the UCC. Logan and Kanawha Coal agreed to purchase coal from Detherage via a fax dated March 9, 2010. The fax stated that it had
Should the requirements of the UCC be subject to the application of reliance theories? Go back and review the facts in Case 21-3 about the coal contract. Should silence followed by contract execution
In a 1975 contract, Eureka was given the exclusive right to sell spring water and other products under the Ozarka trade name in 60 Oklahoma counties in exchange for $$9,000$ paid to Arrowhead,
A contract is created to refurbish a luxury yacht: new color schemes, new furniture, new wall and floor coverings, new light fixtures, and window treatments—the whole works. Of course, it is not
In a contract dispute between a US company and a Canadian company, the contract itself referred to provisions of the Uniform Commercial Code. Do these references alone preempt the contract from being
10.A company contracted with a marketing firm to construct software and create a business website. A quote was requested and accepted. Sometime later, the business asked for updates and revisions but
George Oppenheimer, an agent for Wellington Farms of Massachusetts, Inc., had contacted Mark Kiriakou from the Capital Area Food Bank regarding an order for frozen turkey meat. In an exchange of
Ormet Primary Aluminum Corporation, operated an aluminum smelter plant in Hannibal, Ohio. The facility ceased production in October 2013 in order to liquidate its assets after filing for bankruptcy
This case arose after Felix DeWeldon, a well-known sculptor and art collector, sold three paintings to Robert McKean in 1994.Felix DeWeldon declared bankruptcy in 1991. In 1992, DeWeldon, Ltd.,
Douglas Singletary purchased a mobile home from P&A Investments, Inc. d/b/a Andy’s Mobile Home and Land Sales. On November 17, 2007, Singletary entered in a sales agreement with Andy’s to
Pileri Industries shipped goods to Consolidated Industries, Inc., via a common carrier. The goods were lost in transit. Pileri claimed that the sale was a shipment contract, thus putting the risk of
A person donates a bag of clothes to Goodwill completely unaware that there is valuable sterling silver in the bag. The clothing and silver are subsequently sold, for a very economical price, to
Design Data sold a piece of machinery to HHB Drafting Company. However, after HHB had taken possession of the machine, it discovered damage and revoked the contract. The court found that the
Founded in 1966 as a trader of oil and oil products, Vitol is a company with no external shareholders. All shareholders are also employees. It is a conglomerate company of energy companies that work
XCBob, Inc. is an online motorcycle and ATV parts business from the owner’s home. XCBob entered into oral agreements with the defendant, Ed Tucker Distributers, for purchases of various materials
On February 11, 2009, plaintiff Levista, Inc. (plaintiff) filed against defendant Ranbaxy Pharmaceuticals, Inc. (defendant), pursuant to this Court’s diversity jurisdiction under 28 U.S.C. §
Cat Auto Tech. Corp. purchased 10,000 gift certificates from DeJesus. Cat Auto Tech. Corp., an Amoco gasoline station operator, contracted with DeJesus to make 10,000 gift certificates of various
William Stem filed an action against Gary Braden, seeking to rescind a contract for the sale of an automobile and to obtain the return of the purchase price plusinterest. The trial court granted Stem
Plaintiff purchases a new car that has defects in its paint job. Three times the dealership repaints the care, but to no avail. The plaintiff continues to drive the car as he has no other option in
On April 20, 1992, Daniel Hubbard (plaintiff), a potato farmer, and UTZ Quality Foods, Inc. (UTZ) (defendant), a potato chip manufacturer, entered an installment contract under which Hubbard agreed
Plaintiff contracted to install a boiler for defendant. After plaintiff had installed and tested the boiler, but before final payment to plaintiff had been made, defendant took custody of the boiler
Abbott Industries is a well-known supplier of pharmaceuticals worldwide. Founded by Dr. Wallace Abbott, the company was incorporated in 1900 after he had been developing and making pharmaceuticals
Barbara Vigil, Chief Justice, New Mexico Supreme Court Ken Badilla bought a pair of Brahma brand work boots from Wal-Mart on October 19, 2003. The boots’ packaging had these express descriptions:
Purina entered in a contract with the defendant to sell the defendant piglets, known as weanlings—baby pigs that have been weaned. It is uncontested that the buyer breached and that Purina is
On February 20, 2009, Cedar Valley Aviation, a wholly owned subsidiary of Aerial Services, Inc. (ASI), brought a Piper 522AS (Cheyenne II) in for maintenanceto Des Moines Flying Service, Inc. (DMFS).
Almetals, Inc., a Michigan company, entered into a contract with the German firm Wickeder Westfalenstahl regarding the purchase of “clad metal,” a specialty metal used in a variety of industries
A significant issue when a contract is breached is whether the cause of action is strictly in breach of contract or may be expanded to negligence and strict liability. The significance comes into
The defendant, Sterile Technologies, Inc., purchased a sterilizer from the plaintiff, Troy Boiler Works, on an installment payment plan. The defendant was to make installment payments charged with
5 percent interest per month. The sterilizer was delivered on August 23, 1996.The last payment was received on April 21, 1998. At the time of the last payment, the defendant still owed the plaintiff
An often-ignored concept in breach of contract is the availability, if any, of the award of punitive damages. Often, cases incorporate both breach of contract and tort actions. The tort actions
Linda Budd went searching for a new friend … and she found one for $$400.1$ A brand new puppy. She purchased the puppy from Bernadette Vicidomine, a person who regularly sells puppies. Budd took
Jason Cannon purchased a defective tractor for which Cannon brought numerous causes of action against Bodensteiner Implement Company (Bodensteiner).One of the claims was breach of express warranties.
After returning from a skiing vacation in Vermont, Leslie Adel came down with Legionnaire’s Disease. He claimed it was from the water drunk at the ski resort and provided by Greensprings of Vermont
Melissa Khan alleges that on May 27, 2004, she entered into a lease and warranty agreement with Riverbank Motors Corporation, Inc. (the Dealership), for a new, 2004 Volkswagen Toureg (the
Priscilla Webster was dining at her favorite Massachusetts seafood restaurant when matters went horribly wrong. She began choking on a fishbone that had been lurking in her seafood chowder. After a
Plaintiff purchased stain and paint from defendant that, upon application, presented significant issues: discoloration and cracking. These issues became apparent 30 days after receipt of the
As a gambling facility, MGM Desert Inn, Inc., regularly holds and executes negotiable instruments. During a period of two months, patron William E. Shack Jr. entered MGM and delivered eight checks to
On June 14, 1988, Thomas John Heck Jr. executed a note promising to pay Paul D. Heck $$51,000$ at 7 percent interest compounded annually. The note contains the following payment terms: “Perpetual
In December 2008, Jason Garcia signed a motor vehicle sales contract with Mac Haik Dodge Chrysler Jeep, a dealer. In the contract, Garcia agreed to purchase a 2009 Dodge Ram 1500. The contract
On April 4, 2014, Athanasios Valsamis lost his appeal to get his money back from a friend to whom he had loaned $$700,000.$ As you will read, this case underscores the consequence of failing to
T. Christian Cooper was a partner to Sanders and Richard Campbell d/b/a The Mullen Company. In 2001, Cooper helped bring about a management agreement between The Mullen Co. and Newnan Crossing
On February 16, 2005, Joseph and Margaret Buset borrowed $192,000 from Fremont Investment & Loan (the Originator). The loan was secured by a mortgage on a residential condominium. The mortgage named
Thomas Rusnack and his then-wife, Analisa Rusnack, opened a home equity line of credit (HELOC) with Cardinal Bank in August 2003.Between 2003 and 2006, the Rusnacks periodically drew on the HELOC
Leicht Transfer & Storage provides warehousing services and often purchases pallets from Pallet Central. The companies followed a standard practice for documenting these transactions in which Pallet
Dr. Walter Sullivan was one of several plastic surgeons in Las Vegas visited by Julie Jones. Jones, an exotic dancer, sought plastic surgery to improve her ability to make money in her profession.
On June 8, 2017, Eugene Weiner made a post on Isaac Aflalo’s Facebook page. The post read, “Yurim and Isaac took advantage of a old 94plus sick man elder abuse [sic].” Alflalo took umbrage to
On December 14, 2011, appellant Aaron Olson contracted to receive telephone service from respondent CenturyLink and also applied for reduced-rate service that CenturyLink provides through
At 3:00 a.m. on November 22, 2010, 16-year-old Sydney McLemore was driving a Mazda3 with her friend, Natalie Hurst, in the front passenger seat. The vehicle was traveling south on Ross Bridge Highway
In the months leading up to the 2016 election, Christopher Steele, a former British intelligence agent, was hired by a Washington, D.C., research firm to investigate whether then-candidate Donald
Sabrina Ederly worked as a reporter and contributing editor for Rolling Stone magazine. Ederly intended to write an article for the magazine that focused on the alleged rape of a University of
Rockstar Games, a subsidiary of Take-Two Interactive, released the video game Grand Theft Auto V in 2013. The game features a character named Lacey Jonas, a self-proclaimed “actress slash singer”
Defendants Jack and Claire Lein owned and lived on Willow Creek Farm from 1980 through 2004. The farm manager, Stewart, and his girlfriend, plaintiff Tambra Curtis, also lived on the farm during this
Mrs. Palsgraf was waiting for a train on a platform of a railroad. When a different train came into the station, two men ran to get on that train before it left the station. While one of the men
Tom Bonacci brought his Jeep to Brewer Service Station to investigate a strange noise the vehicle was making. The Jeep was raised up on an automobile lift so that Brewer employee Paul Gebing could
SWIGART v. BRUNO CALIFORNIA COURT OF APPEALS 13 CAL. APP. 5TH 529 2017 According to the American Endurance Ride Conference, endurance riding is a “highly competitive and demanding sport.” It is
What is the plain-meaning rule?
Amanda Forbes was hired as a nail technician by Showmann, Inc., in 2011. In 2017, Forbes attended a work-related holiday party where Showmann distributed raffle tickets to employees. One of the
In 2004, Jui-Chen Lin, a citizen of China, entered into an agreement with Robert Chiu and Charles Cobb, citizens of the United States, to form an LLC to acquire and operate a fast-food restaurant in
Panther Racing, LLC, is involved in competitive racing, including the development, maintenance, and operation of a racing team in the IndyCar series. Beginning in 2008, the National Guard annually
Many single women and married couples use donated sperm to conceive children each year. Pennsylvania resident Donna Donovan decided to use donated sperm from Idant Laboratories, a New York sperm bank
Nereus Montemayor was an employee of VZ Hogs, a company that raises hogs and produces hog feed. VZ Hogs used an extruder manufactured by Sebright Products, Inc. to create hog feed out of discarded
Plaintiff grounds manager sued a manufacturer, Monsanto, alleging that herbicide use caused his non-Hodgkin’s lymphoma. The jury awarded the plaintiff $$39.3$ million in compensatory damages and
Mr. Prestage’s foot and lower leg were caught in a combine manufactured by defendant Sperry–New Holland. He and his wife sued Defendant for damages arising out of the accident. Their first cause
Brian Rafferty ingested finasteride, a drug prescribed to him to treat an enlarged prostate. Finasteride is a generic version of Proscar, a drug manufactured by Merck. Some time after he started to
Fun-Tastic Shows, Inc., is a company that hosts carnivals and similar events. Susan Swartwood, Crystal Groth, and a minor (named in the case as M.G.S.) attended Fun-Tastic’s Rhododendron Festival
Bernardino Santos-Rodiguez was piloting a boat owned by his friend, Raul Viera-Torres, in waters near Guayama, Puerto Rico. The boat was equipped with a hydraulic steering system manufactured by
Bert C. Roberts Jr. was chairman of WorldCom’s board of directors. Immediately before that, he had been chairman of MCI, which WorldCom acquired on September 14, 1998, in a transaction valued at
Plaintiffs purchased stock warrants (rights to purchase) for blocks of Osborne Computer Corp., the manufacturer of the first mass-market portable personal computer. Because of inability to produce a
The wreck of the S.S. Central America waited 130 years at the bottom of the ocean for someone to come along and claim its trove of gold. Thomas G. Thompson, funded by a multitude of investors, was
Shiloh supplies equipment to the automotive and commercial vehicle markets and other industrial customers. It specializes in materials and designs that reduce vehicle weight and increase fuel
Kronenberger Burgoyne, LLP, was a law firm with two equity partners who agreed to equal ownership as of 2009. Before 2009, Kronenberger had owned a majority interest in the firm, and when, in 2011,
Taj Mahabub was the founder and CEO of GenAudio, a Colorado-based audio technology company. GenAudio had struggled financially practically since its formation, and Mahabub wished to secure a
The Nielsen family formed their corporation, N. Robert Nielsen, Inc., to conduct farming operations. Morre, Grider & Co. is a certified public accounting firm that has provided accounting, tax, and
In the past five years, there have been significant innovations in technology such as smartphones and tablets. Technology companies rely on intellectual property (IP) rights, such as patents,
Mr. Tam is the “front man” for the Asian American dance-rock band The Slants. Mr. Tam named his band The Slants to “reclaim” and “take ownership” of Asian stereotypes. The band draws
Stone Brewing Co. is a San Diego brewer that has sold its beers for over two decades. Stone has maintained its trademark and brand from the beginning, registering the STONE mark in 1998. Stone has
Respondents Varsity Brands, Inc., Varsity Spirit Corporation, and Varsity Spirit Fashions & Supplies, Inc., design, make, and sell cheerleading uniforms.Respondents have obtained or acquired more
Lynn Goldsmith is a photographer known for her photographs of famous musicians. In 1981, Goldsmith had a photography session with the singer Prince. Three years later, Vanity Fair obtained a license
In 2014, Javier Ramos decided to open seafood restaurants in California and Texas. Ramos claims that he was describing the crusted glaze applied to cooked seafood to his friend Ivan Murillo when
Diageo North America, Inc., the owner of the Bulleit brand family of whiskeys, sued competitor W.J. Deutsch & Sons Ltd. for allegedly infringing upon the trade dress of Diageo’s Bulleit bottles.
Mary Kay Morrow began working for Hallmark in 1982. At the beginning of 2002, Hallmark adopted the “Hallmark Dispute Resolution Program,” which required, among other things, that claims against
Zappos.com is a popular website known mainly for its discounted shoe sales. In 2012, a hacker hacked into the Zappos website in an effort to obtain the personal account information of Zappos
In February 2007, The Elliot Group, Inc., an Illinois real estate developer, made a deal with the Village of Arlington Heights to develop property in that village.Arlington Market, LLC, was
In the spring of 1999, Source Associates, Inc. (Source), and Conrad A. Mamajek, Inc. (CAM), entered into a joint venture to act as a middleman for the sale of polymers manufactured by Mitsui
Tandrin Aviation Holdings Ltd. agreed to sell a jet aircraft to Aero Toy Store, LLC, for $$31.75$ million. ATS paid a $$3$ million deposit to a third party with the balance due upon delivery.
Juliette Shulof Furs (JSF) was a New York corporation that had been in the fur-dealing business for 15 years. George Shulof, an officer of JSF, attended two auctions conducted by Finnish Fur Sales

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