1. David is driving within speed limits down a four-lane street where there are children playing. Kevin, a 15-year-old, runs into the street chasing a soccer ball. David, without looking over his shoulder, swerves into the other lane to avoid Kevin and in the process, he hits a car, driven by Peter, that was over speeding past him in the left-hand lane going in the same direction. Peter loses control of his car, hits a telephone pole and is seriously injured.

If Peter wants to sue David for his injuries under negligence:

A) What elements should Peter establish? Apply those to the facts and explain.

The elements that Peter can establish is that David did not look over his should before switching lanes as well as failed to indicate that he was switching into peters lane before doing so.

B) Does David have any defenses against Peters claim? Explain. (3 points)

David has no claim against peter due to his own reckless driving. Regardless of David driving the speed limit he still failed to look over his shoulder before switching lanes and collided with peters vehicle.

2. Ford Corp. manufactures F150s. The truck was distributed by Sasan Auto Inc. and sold by Garys Dealership to Sara Ward. On a road trip, the breaks malfunction and Sara gets seriously injured in an accident. If Sara were to sue a party under a tort liability:

A) What may her tort claims be? Explain.

B) Who may she sue? And Why? (2 points)

3. Take into consideration the following scenario:

Merchant Seller via text: I sell you my car for $10,000.

Reply by Merchant Buyer via text: Deal! Though I want a 30-Day money back guarantee.

Later that day: Merchant seller makes shipment arrangements.

Few days later: Buyer via text: Sorry, deal is off! I need the money for cancer treatment.

In this scenario, is there a valid contract formed under the UCC? If yes, based on what terms? If no, why? Explain.

(1 points)

4. A high school graduate decided to and was very excited about taking a job at a welding shop. His grandmother told him that if he went to college instead, she would reimburse the graduate for tuition at the end of each semester. She also promised that if he earned all A grades in any semester, then shell also buy him a car (a 2016 Dodge Dart). The graduate completed his first semester and earned a B+ average. He demanded the tuition and car. The grandmother said: I only intended to show you that you can get good grades and an education, well done, Im proud of you kid! The graduate believes that he has a contract with the grandmother and wants to uphold the grandmother to her promise. Does the graduate have any breach of contract claims against the grandmother for the tuition and car? Explain. (2 points)

The contract was breached when the graduate didnt Earn a A average but earn a B+ average for his grades, so his grandmother is not obligated to give him the car of his desire. The graduate is still entitled to reimbursement on his tuition cost.

5. David Belk, an accountant, decided to purchase a personal yacht called SeaQueen from his friend Jerry Springer, a famous artist in Tampa, FL. Jerry offered to sell SeaQueen for $500K in writing. David needed two weeks to secure a loan to purchase the yacht and finalize the deal. On January 1^st, Jerry agreed in writing and promised to take the yacht off the market for two weeks while David secured the loan. After three days, Jerry eventually decided to sell the yacht to his mentor, Audrey Wing, for $550K. On January 13^th, David contacted Jerry, left a voice mail and said: I have secured the loan my friend, and I accept to purchase SeaQueen for $500K. Ill deposit the money in a couple days. Jerry heard the voicemail right away. Jerry texted David and said: Sorry Dave, you snooze you lose, I sold it to my mentor.

1. Is there a contract formed between David and Jerry? Explain.

Yes, there was a contract formed when the two parties made agreements and promises in writing.

B) Now assume that Jerry (the seller) instead of being an artist, was a used yacht seller in Tampa. Would there be a contract formed between David and Jerry? Explain. (2 points)

Yes, because the two parties made contracts in writing which made the deals official.

6. Tim Shaw is wandering around at Lowes. He is looking for a chainsaw that would cut the thick and wet limbs off his 120 years-old Pine tree without much hassle. Tim asked a manager to show him a chainsaw for tough trees. The manager showed him one and said I think this one is just great, I used it on my Oak tree and it did the job. Tim buys the chainsaw. After an hour of cutting limbs without hassle, the chainsaw stops working, and it wont start. Does Tim Shaw have any claims against Lowes under the UCC? If so what claim(s)? Explain. (2 points)

7. Lilly Little is a cashier at Walmart! Billy Ray, a good-looking guy, is about to pay for his new expensive fishing rod. Since Lilly really likes Billys looks and manners, she gives Billy an unauthorized 50% discount on the fishing rod. A manager at Walmart finds out about this transaction and charges Billys credit card for the discount to be paid back to Walmart. Billy decides to sue Walmart for breach of contract. Considering the principles of Agency Law, will Billy win against Walmart? Explain. (2 points)

8. Three friends A, B and C agree to go into business installing home insulation as a Limited Partnership. A and B are limited partners and C is the general partner. Despite opposition by A and B; C signs a contract to undertake an insulation project for a shopping center, a type of commercial project the business has never undertaken before. When the project falters, the shopping center sues. Who is liable for the clients damages? Why? Explain. (2 points)

9. Three friends A, B and C agree to go into business installing home insulation. They agree to share profits and properly register their business as HomeInsulate LLP. Despite opposition by A and B; C signs a contract to undertake an insulation project for a shopping center, a type of commercial project the business has never undertaken before. When the project falters, the shopping center sues. Who is liable for the clients damages? Why? Explain. (2 points)

10. Lara Cross is the owner of MoutainHomeFurnishing, Inc. (MHF), a small, closely held corporation. She started the company with $1000 capital and used the companys bank account as her own and regularly took home furnishings from the store. After several accidents where chair legs bought at MHF were falling off, a number of customers sued MHF. However, because Lara spent most of the companys money and had let its insurance policy lapse, the customers wanted to hold her personally liable. MHF soon filed for Bankruptcy. In court, Lara pleaded that because MHF was a corporation and she was only a shareholder, she was not personally liable for the debts and obligations of the company. How would you decide the case if you were the judge? Explain. (2 points)

11. Hirbod Motors Company's Board of Directors (BoD) is considering shutting down its production line for SUV Model X. The profit margin on the product have been shrinking and the product is becoming extremely costly. Eventually, in a meeting BoD decides that discontinuing the product would free up resources necessary to focus on more profitable areas. However, majority of the shareholders of Hirbod (mostly business professionals and wealthy investors) predict and believe that the product will prove very profitable after minor changes in the design of the SUV Model X. They predict so based on a competitors company, experiencing the same issue with one of their SUV models and fixing the problem with minor design changes. Since the shareholders firmly disagree with the Board and believe that the Boards decision will adversely affect the future of the Company, they decide to file an injunction against Board members on behalf of the Company to stop shutting down the production line. What advice do you have for the Board members? Explain. (2 points)

12. Tim Atkinson is a city councilman and board member of Bloom Inc. Tim, while acting in his capacity for the city, learns that a division of Bloom is about to purchase a fairly sizeable tract of land in his town including a small piece of property that Tim owns and placed up for sale two years ago. Tim does nothing in either of his jobs to help promote that his land be purchased in the company's deal except to vote that the deal go forward in the Board meeting. Subsequently, the land is purchased by Bloom, and a shareholder sues the firm for wasting assets after the firm discovers that the property adjacent to the one that Tim owned that was included in the purchase, had a major environmental liability attached. In this situation:

A) What claim(s) would the shareholder have against Tim? Explain.

B) Also, discuss if Tim could have avoided any such claim/liability at all. Explain. (3 points)