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Andersons Business Law And The Legal Environment 1st Edition David P. Twomey - Solutions

On ee 1, Neptune Fisheries Protracted | in writing with West Markets to deliver to West 3,000 pounds a lobster at $4.00 a pound. Delivery of the lobsters was due October 1, with payment due November
The Ohio Department of Public Welfare made a contract with an accountant to audit the accounts of health care providers who were receiving funds under the Medicaid program. Windsor House, which operated six nursing homes, claimed that it was a thirdparty beneficiary of that contract and could sue
Industrial Construction Co. wanted to raise money to construct a canning factory in Wisconsin. Various persons promised to subscribe the needed amount, which they agreed to pay when the construction was completed. The construction company assigned its rights and delegated its duties under the
Henry was owed $10,000 by Jones Corp. In consideration of the many odd jobs performed for him over the years by his nephew, Henry assigned the $10,000 claim to his nephew Charles. Henry died, and his widow claimed that the assignment was ineffective so that the claim was part of Henry’s estate.
Zoya operated a store in premises rented from Peerless.The lease required Zoya to maintain liability insurance to protect Zoya and Peerless. Caswell entered the store, fell through a trap door, and was injured. She then sued Zoya and Peerless on the theory that she was a third-party beneficiary of
The New Rochelle Humane Society made a contract with the city of New Rochelle to capture and impound all dogs running at large. Spiegler, a minor, was bitten by some dogs while in her schoolyard. She sued the school district of New Rochelle a the Humane Society. With respect to the Humane Society,
Lone Star Life Insurance Co. agreed to make a longterm loan to Five Forty Three Land, Inc., whenever that corporation requested one. Five Forty Three wanted this loan to pay off its short-term debts. The loan was never made, as it was never requested by Five Forty Three, which owed the Exchange
Helen obtained an insurance policy insuring her life and naming her niece Julie as beneficiary. Helen died, and about a year later the policy was found in her house. When Julie claimed the insurance money, the insurer refused to pay on the ground that the policy required that notice of death be
Washington purchased an automobile from Smithville Motors. The contract called for payment of the pur chase price in installments and contained the defense preservation notice required by the Federal Trade Commission regulation. Smithville assigned the contract to Rustic Finance Co. The car was
Jessie borrows $1,000 from Thomas and agrees to repay the money in 30 days. Thomas assigns the right to the $1,000 to Douglas Finance Co. Douglas sues Jessie. Jessie argues that she had agreed to pay the money only to Thomas and that when she and 9.Thomas had entered into the transaction, there was
Lee contracts to paint Sally’s two-story house for$1,000. Sally realizes that she will not have sufficient money, so she transfers her rights under this agreement to her neighbor Karen, who has a three-story house.Karen notifies Lee that Sally’s contract has been 8.assigned to her and demands
A court order required John Baldassari to make specified payments for the support of his wife and child.His wife needed more money and applied for Pennsylvania welfare payments. In accordance with the law, she assigned to Pennsylvania her right to the sup--port payments from her husband.
Give an example of a third-party oe contract.
In negotiations with Andrews for the lease of Kemp's warehouse, Kemp orally agreed to pay one-half of the cost of the utilities. The written lease, later prepared by Kemp's attorney, provided that Andrews pay all of the utilities. Andrews failed to carefully read the lease and signed it. When Kemp
With regard to an agreement for the sale of real estate, the statute of fraudsa. Requires that the entire agreement be in a single writingb. Requires that the purchase price be fair and adequate in relation to the value of the real estatec. Does vot require that the agreement be signed by all
Which Ge the following statements is true with oe to the statute of Gandaa. All contracts involving consideration of more than$500 must be in writing.b. The written contract must be signed by all parties.c. The statute of frauds applies to contracts that can be fully performed within one year from
Beck and Co., a brewery, gave Gianelli Distributing Co. a franchise to distribute Beck’s Beer. The franchise agreement specified that it would continue “unless and until terminated at any time by 30 days’ written notice by either party to the other.” Some time thereafter, Beck notified
The Dickinson Elks club conducted an annual Labor Day golf tournament. Charbonneau Buick-Pontiac offered to give a new car as a prize to anyone making“a hole in one on hole no. 8.” The golf course of the club was only nine holes. To play 18 holes, the players would go around the course twice,
Physicians Mutual Insurance Co. issued a policy covering Brown's life. The policy declared that it did not cover any deaths resulting from “mental disorder, alcoholism, or drug addiction.” Brown was killed when she fell while intoxicated. The insurance company refused to pay because of the
Norwest Bank had been lending money to Tresch to run a dairy farm. The balance due the bank after sev eral years was $147,000. The loan agreement stated that Tresch would not buy any new equipment in excess of $500 without the express consent of the bank. Some time later, Tresch applied to the bank
Integrated, Inc., entered into a contract with the state of California to construct a building. It then subcontracted the electrical work to Alec Fergusson Electrical Contractors. The subcontract was a printed form with blanks filled in by typewriting. The printed payment clause required Integrated
A contract made for the sale of a farm stated that the buyer's deposit would be returned “if for any reason the farm cannot be sold.” The seller later stated that she had changed her mind and would not sell, and she offered to return the deposit. The buyer refused to take the deposit back and
Panasonic Industrial Co. (PIC) created a contract making Manchester Equipment Co., Inc. (MECI), nonexclusive wholesale distributor of its products. The contract stated that PIC reserved the unrestricted right to solicit and make direct sales of the products to anyone, anywhere. The contract also
In letters berween the two, Rita Borelli contracted to sell “my car” to Viola Smith for $2,000. It was later shown that Borelli owned two cars. Borelli refused to deliver either car to Smith, and Smith sued Borelli for breach of contract. Borelli raised the defense that the contract was too
In February or March, Corning Glass Works orally agreed to retain Hanan as management consultant from May 1 of that year to April 30 of the next year for a present value fee of $200,000. Was this agreement binding? Is this decision ethical? [Hanan v Corning Glass Works, 314 NYS2d 804 (App Div)]
Louise Pulsifer owned a farm. She wanted to sell the farm and ran an ad in the local newspaper. After Russell Gillespie agreed to purchase the farm, Pulsifer wrote him a letter stating that she would not sell it. He sued her to enforce the contract, and she raised the defense of the statute of
Boeing Airplane Co. contracted with Pittsburgh—Des Moines Steel Co. for the latter to construct a supersonic wind tunnel. R.H. Freitag Manufacturing Co.sold materials to York-Gillespie Co., which subcontracted to do part of the work. To persuade Freitag to keep supplying materials on credit,
Jackson signed an agreement to sell 79 acres of land to Devenyns. Jackson owned 80 acres and was apparently intending to keep for himself the acre on which his home was located. The written agreement also stated that “Devenyns shall have the option to buy on property —__,” but nothing was
Lawrence loaned money to Moore, who died without repaying the loan. Lawrence claimed that when he mentioned the matter to Moore’s widow, she promised to pay the debt. She did not do so, and Lawrence sued her on her promise. Does she have any defense?[Moore v Lawrence, 480 SW2d 941 (Ark)}
Martin made an oral contract with Cresheim Garage to work as its manager for two years. Cresheim wrote Martin a letter stating that the oral contract had been made and setting forth all its terms. Cresheim later refused to recognize the contract. Martin sued Cresheim for breach of the contract and
Kelly made a written contract to sell certain land to Brown and gave Brown a deed to the land. Thereafter, Kelly sued Brown to get back a 20-foot strip of the land. Kelly claimed that before making the written contract, it was agreed that Kelly would sell all of his land to Brown to make it easier
Carlos was campaigning to be elected the next governor of the state. Helena was a rival candidate. Carlos promised Helena that if she would withdraw as a candidate and support him for governor, he would appoint her the next attorney general for the state. She withdrew, and her support gave Carlos
A state law required builders of homes to be licensed and declared that an unlicensed contractor could not recover compensation under a contract made for the construction of a residence. Although Annex Construction, Inc., did not have a license, it built a home for French. When he failed to pay
The English publisher of a book called Cambridge gave a New York publisher permission to sell thac book any place in the world except in England. The New York publisher made several bulk sales of the book to buyers who sold the book throughout the world, including England. The English publisher
Potomac Leasing Co. leased an automatic telephone system to Vitality Centers. Claudene Cato signed the lease as guarantor of payments. When the rental was not paid, Potomac Leasing brought suit against Vitality and Cato. They raised the defense that the rented equipment was to be used for an
Vodra was employed as a salesperson and contracting agent for American Security Services. As part of his contract of employment, Vodra signed an agreement that for three years after leaving this employment, he would not solicit any customer of American. Vodra had no experience in the security field
Central Water Works Supply, a corporation, had a contract with its shareholders that they would not compete with it. There were only four shareholders, of whom William Fisher was one, but he was not an employee of the corporation. When he sold his shares in the corporation and began to compete with
Smith was employed as a salesman for Borden, Inc., which sold food products in 63 counties in Arkansas, 2 counties in Missouri, 2 counties in Oklahoma, and 1 county in Texas. Smith’s employment contract prohib-ited him from competing with Borden after leaving its employ. Smith left Borden and
Onderdonk entered a retirement home operated by Presbyterian Homes. The contract between Onderdonk and the home required Onderdonk to make a specified monthly payment that could be increased by the home as the cost of operations ae increased. The contract and the payment plan were thoroughly
Siddle purchased a quantity of fireworks from Red Devil Fireworks Co. The sale was illegal, however, because Siddle did not have a license to make the purchase, which the seller knew because it had been so informed by the attorney general of the state. Siddle did not pay for the fireworks, and Red
The Minnesota adoption statute requires that any agency placing a child for adoption make a thorough investigation and not give a child to an applicant unless the placement is in the best interests of the child. Tibbetts applied to Crossroads, Inc., a private adoption agency, for a child to adopt.
Ewing was employed by Presto-X-Co., a pest exterminator. His contract of employment specified that he would not solicit or attempt to solicit customers of Presto-X for two years after the termination of his employment. After working several years, his employment was terminated. Ewing then sent a
Alman made a contract to purchase an automobile from Crockett Motors on credit but failed to make payments on time. When Crockett sued to enforce the contract, Alman raised the defense that the price of the car had been increased because she was buying on credit and this increase was
John Iwen sued U.S. West Direct because of a negli-gently constructed yellow pages advertisement. U.S.West Direct moved to stay litigation and compel arbitration under the yellow pages order form, which required advertisers to resolve all controversies through arbitration, but allowed U.S. West
Hoffman wanted to acquire a franchise for a Red Owl grocery store. (Red Owl was a corporation that main tained a system of chain stores.) An agent of Red Owl informed Hoffman and his wife that if they would sell their bakery in Wautoma, acquire a certain tract of land in Chilton (another Wisconsin
Radio Station KSCS broadcast a popular music program. It announced that it would pay $25,000 to any listener who detected that it did not play three consecutive songs. Steve Jennings listened to and heard a program in which two songs were followed by a commercial program. He claimed the $25,000.
On the death of their mother, the children of Jane Smith gave their interests in their mother's estate to their father in consideration of his payment of $1 to each of them and his promise to leave them the property on his death. The father died without leaving them the property. The children sued
Kathy left her classic 1978 Volkswagen convertible at Freddie’s Service Station, requesting a “tune-up.”When she returned that evening, Freddie’s bill was$374. Kathy stated that Firestone and Sears advertise tune-ups for $70, and she asked Freddie, “How can you justify this bill?”
Kelsoe worked for International Wood Products, Inc., for a number of years. One day Hernandez, a director and major stockholder of the company, promised Kelsoe that the corporation would give her 5 percent of the company’s stock. This promise was never kept, and Kelsoe sued International for
Bogart owed several debts to Security Bank & Trust Co. and applied to the bank for a loan to pay the debts. The bank’s employee stated that he would take the application for the loan to the loan committee and“within two or three days, we ought to have something here, ready for you to go
Kemp leased a gas filling station from Baehr. Kemp, who was heavily indebted to Penn-O-Tex Oil Corp., transferred to it his right to receive payments on all claims. When Baehr complained that the rent was not paid, he was assured by the corporation that the rent would be paid to him. Baehr did not
Sears, Roebuck and Co. promised to give Forrer permanent employment. Forrer sold his farm at a loss to take the job. Shortly after beginning work, he was discharged by Sears, which claimed that the contract could be terminated at will. Forrer claimed that promissory estoppel prevented Sears from
Alexander Proudfoot Co. was in the business of devising efficiency systems for industry. It told Sanitary Linen Service Co. that it could provide an improved system for Sanitary Linen that would save Sanitary Linen money. It made a contract with Sanitary Linen to provide a money-saving system. The
Fedun rented a building to Gomer, who did business under the name of Mike's Cafe. Later, Gomer was about to sell the business to Brown and requested Fedun to release him from his liability under the lease.Fedun agreed to do so. Brown sold the business shortly 12, thereafter. The balance of the rent
Koedding hired West Roofers to put a roof on her house. She later claimed that the roofing job was defective, and she threatened to sue West. Both parties discussed the matter in good faith. Finally, West guaranteed that the roof would be free from leaks for 20 years in return for the guarantee by
Charles Sanarwari retained Stan Gissel to prepare his income tax return for the year 2003. The parties agreed on a fee of $400. Charles had done a rough estimate based on last year’s return and believed he would owe the IRS approximately $2,000. When Stan’s work was completed, it turned out
Dale Dyer, who was employed by National ByProducts, Inc., was seriously injured at work as the result of a job-related accident. He agreed to give up his right to sue the employer for damages in consideration of the employer's giving him a lifetime job. The employer later claimed that this
William E. Story agreed to pay his nephew, William E.Story II, a large sum of money (roughly equivalent to$50,000 in 2004 dollars) “if he would refrain from drinking liquor, using tobacco, swearing, and playing cards or billiards for money until he should come to be 21 years of age.” William II
Sarah’s house caught on fire. Through the prompt assistance of her neighbor Odessa, the fire was quickly extinguished. In gratitude, Sarah promised to pay Odessa $1,000. Can Odessa enforce this promise if Sarah does not pay the money?
Vern Westby inherited a “ticket” from Anna Sjoblom, | a survivor of the sinking of the Titanic, which had been pinned to the inside of her coat. He also inherited an album of postcards, some of which related to the Titanic. The ticket was a one-of-a-kind item in good condition. Westby needed
The city of Salinas entered into a contract with Souza& McCue Construction Co. to construct a sewer. City officials knew unusual subsoil conditions (including extensive quicksand) existed that would make performance of the contract unusually difficult. This information was not disclosed when city
C&J Publishing Co. told a computer salesman thar it wanted a computer system that would operate its printing presses. C&J specified that it wanted only new equipment and no used equipment would be acceptable. The seller delivered a system to C&J that was a combination of new and secondhand parts
Scott at any time for any reason or for no reason.Reprographics told Scott that if he wanted to keep his job, he would have to sign a contract stating that he would not compete with Reprographics when he was no longer employed by it. He signed the contract but later claimed he was not bound by it
Pileggi owed Young money. Young threatened to bring suit against Pileggi for the amount due. Pileggi feared the embarrassment of being sued and the possibility that he might be thrown into bankruptcy. To avoid being sued, Pileggi executed a promissory note to pay Young the amount due. He later
Sippy was thinking of buying Christich’s house. He noticed watermarks on the ceiling, but the agent show- ing the house stated that the roof had been repaired and was in good condition. Sippy was not told that the roof still leaked and that the repairs had not been able to stop the leaking. Sippy
Blubaugh was a district manager of Schlumberger Well Services. Turner was an executive employee of Schlumberger. Blubaugh was told that he would be fired unless he chose to resign. He was also told that if he would resign and release the company and its employees from all claims for wrongtul
An agent of Thor Food Service Corp. was seeking to sell Makofske a combination refrigerator-freezer and food purchase plan. Makofske was married and had three children. After being informed of the eating habits of Makofske and his family, the agent stated that the cost of the freezer and food would
Adams claimed that Boyd owed him money but was under the impression that Boyd did not have much money. On the basis of this impression, Adams made a settlement agreement with Boyd for a nominal amount. When Adams later learned that Boyd was in fact reasonably wealthy, Adams sought to set the
Aldrich and Co. sold goods to Donovan on credit. The amount owed grew steadily, and finally Aldrich refused to sell any more to Donovan unless Donovan signed a promissory note for the amount due. Donovan did not want to but signed the note because he had no money and needed more goods. When Aldrich
Thomas Bell, a minor, went to work in the Pittsburgh beauty parlor of Sam Pankas and agreed that when he left the employment, he would not work in or run a beauty parlor business within a 10-mile radius of downtown Pittsburgh for a period of two years.Contrary to this provision, Bell and another
High-Tech Collieries borrowed money from Holland.High-Tech later refused to be bound by the loan contract, claiming the contract was not binding because it had been obtained by duress. The evidence showed that the offer to make the loan was made on a take-itor-leave-it basis. Was the defense of
Paden signed an agreement dated May 28 to purchase the Murrays’ home. The Murrays accepted Paden’s offer the following day, and the sale closed on June 27.Paden and his family moved into the home on July 14, 1997. Paden had the home inspected prior to closing.The report listed four minor
Helen, aged 17, wanted to buy a Harley-Davidson“Sportster” motorcycle. She did not have the funds to pay cash but persuaded the dealer to sell the cycle to her on credit. The dealer did so partly because Helen said that she was 22 and showed the dealer an identification card that falsely stated
Lester purchased a used automobile from MacKintosh Motors. He asked the seller if the car had ever been in a wreck. The MacKintosh salesperson had never seen the car before that morning and knew nothing of its history but quickly answered Lester’s question by stating: “No. It has never been in
On June 15, Peters orally offered to sell a used lawn mower to Mason for $125. Peters specified that Mason had until June 20 to accept the offer. On June 16, Peters received an offer to purchase the lawn mower for $150 from Bronson, Mason’s neighbor. Peters accepted Bronson’s offer. On June 17,
On September 27, Summers sent Fox a letter offering to sell Fox a vacation home for $150,000. On October 2, Fox replied by mail agreeing to buy the home for$145,000. Summers did not reply to Fox. Do Fox and Summers have a binding contract?a. No, because Fox failed to sign and return Summers’s
Able Sofa, Inc., sent Noll a letter offering to sell Noll a custom-made sofa for $5,000. Noll immediately sent a telegram to Able purporting to accept the offer.However, the telegraph company erroneously delivered the telegram to Abel Soda, Inc. Three days later, Able mailed a letter of revocation
Sanchis owned a building. He agreed to rent it to Rosell for commercial purposes for three years at$50,000 a year. The agreement provided that at the end of that time Rosell had the option to extend the lease for another three years at a rent to be determined then. The first three years expired,
Calvin and Audrey Bones listed their ranch for sale with their real estate agent, Loren Johnson. On July 17, 1997, Dean Keller submitted an offer to buy the ranch for $490,000, with a deposit of $49,000 payable to the agent. The terms of the offer stated that it would be withdrawn if not accepted
Ackerley Media Group, Inc., claimed to have a threeseason advertising Team Sponsorship Agreement(TSO) with Sharp Electronics Corporation to promote Sharp products at all Seattle Supersonics NBA basketball home games. Sharp contended that a valid agreement did not exist for the third season
Buster Cogdill, a real estate developer, made an offer to the Bank of Benton to have the bank provide construction financing for the development of an outlet mall, with funds to be provided at prime rate plus two percentage points. The bank’s president Julio Plunkett thanked Buster for the
Wheeler operated an automobile service station, which he leased from W. C. Cornitius, Inc. The lease ran for three years. Although the lease did not contain any provision for renewal, it was in fact renewed six times for successive three-year terms. The landlord refused to renew the lease for a
A signed a contract agreeing to sell land he owned but reserved the right to take the hay from the land until the following October. He gave the contract form to B, a broker. C, a prospective buyer, agreed to buy the land and signed the contract but crossed out the provision regarding the hay crop.
When a movement was organized to build Charles City College, Hauser and others signed pledges to contribute to the college. At the time of signing, Hauser inquired what would happen if he should die or be unable to pay. The representative of the college stated that the pledge would then not be
Lessack Auctioneers advertised an auction sale that was open to the public and was to be conducted with reserve. Gordon attended the auction and bid $100 for a work of art that was worth much more. No higher bid, however, was made. Lessack refused to sell the item for $100 and withdrew the item
Nelson wanted to sell his home. Baker sent him a writ- ten offer to purchase the home. Nelson made some changes to Baker’s offer and wrote him that he, Nelson, was accepting the offer as amended. Baker notified Nelson that he was dropping out of the trans- action. Nelson sued Baker for breach of
Katherine mailed Paul an offer stating that it was good for 10 days. Two days later, she mailed Paul another letter stating that the original offer was revoked. That evening Paul phoned Katherine to say he accepted the otter. She said that he could not because she had mailed him a letter of
Brown made an offer to purchase Overman’s house on a standard printed form. Underneath Brown's signature was the statement: “ACCEPTANCE ON REVERSE SIDE.” Overman did not sign the offer on the back but sent Brown a letter accepting the offer. Later, Brown refused to perform the contract, and
Decide.
Bernie and Phil’s Great American Surplus store placed an ad in the Sunday Times stating, “Next Saturday at 8:00 A.M. sharp 3 brand new mink coats worth $5,000 each will be sold for $500 each! First come, First served.” Marsha Lufklin was first in line when the store opened and went directly
Smith made a contract to sell automatic rifles to a foreign country. Because the sale of such weapons to that country was illegal under an act of Congress, Smith was prosecuted by the U.S. government for making the contract. He raised the defense that because the contract was illegal, it was void
The teacher did and then demanded additional compensation for the time spent in preparing the report.He claimed that the college was liable to provide compensation on an implied contract. Was he correct?[Zadrozny v City Colleges of Chicago, 581 NE2d 44 (Ill App)]
Lombard insured his car, and when it was damaged, the insurer sent the car to General Auto Service for repairs. The insurance company went bankrupt and did not pay the repair bill. General Auto Service then sued Lombard for the bill because he had benefited from the repair work. Was he liable?When
Carriage Way was a real estate development of approxi-mately 80 houses and 132 apartments. The property owners were members of the Carriage Way Property Owners Association. Each year, the association would take care of certain open neighboring areas that were used by the property owners, including
Margrethe and Charles Pyeatte, a married couple, agreed that she would work so that he could go to law echoa! and that when he finished, she would go back to school for her master’s degree. After Chases was admitted to the bar and before Margrethe went back to school, the two were divorced. She
When Harriet went away for the summer, Landry, a house painter, painted her house. He had a contract to paint a neighbor's house but painted Harrict’s house by mistake. When Harriet returned from vacation, Landry billed her for $1,200, which was what the painting was worth. She refused to pay.
Dozier and his wife, daughter, and grandson lived in the house Dozier owned. At the request of the daughter and grandson, Paschall made some improvements to the house. Dozier did not authorize these, but he knew that the improvements were being made and did not object to them. Paschall sued Dozier
While Clara Novak was sick, her daughter Janie helped her in many ways. Clara died, and Janie then claimed that she was entitled to be paid for the services she had rendered her mother. This claim was opposed by three brothers and sisters who also rendered services to the mother. They claimed that
Edward Johnson IT, the CEO and principal owner of the world’s largest mutual fund company, Fidelity Investments, Inc., was a longtime tennis buddy of Richard Larson. In 1995, Johnson asked Larson, who had construction experience, to supervise the construction of a house on Long Pond, Mount Desert
A made a contract to construct a house for Subsequently, B sued A for breach of contract. A raised g the defense that the contract was not binding because it was not sealed. Is this a valid defense? [Cooper v G. E. Construction Co., 158 SE2d 305 (Ga App)|

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