Joseph Eugene Dodson, age sixteen, purchased a used pickup truck from Burns and Mary Shrader. The Shraders owned and operated Shrader’s Auto Sales. Dodson paid $14,900 in cash for the truck. At the time of sale, the Shraders did not question Mr. Dodson’s age, but thought he was eighteen or nineteen. Dodson made no misrepresentation concerning his age. Nine months after the date of purchase, the truck began to develop mechanical problems. A mechanic diagnosed the problem as a burnt valve but could not be certain. Dodson, who could not afford the repairs, continued to drive the truck until one month later, when the engine “blew up.” Dodson parked the vehicle in the front yard of his parents’ home and contacted the Shraders to rescind the purchase of the truck and to request a full refund. (a) What arguments would support Dodson’s termination of the contract? (b) What arguments would support Shrader’s position that the contract is not voidable? (c) Which side should prevail? Explain.
> Henry and Wilma, an elderly immigrant couple, agreed to purchase from Harris a refrigerator with a fair market value of $450 for twenty-five monthly installments of $60 per month. Henry and Wilma now wish to void the contract, asserting that they did not
> Edwin sells a sofa to Jack for $800. Edwin and Jack both know that the sofa is in Edwin’s warehouse, located approximately ten miles from Jack’s home. The contract does not specify the place of delivery, and Jack insists that the place of delivery is eit
> Sam Sharpe executed and delivered to Don Dole the following instrument: Knoxville, Tennessee May 29, 2015 Thirty days after date I promise to pay Don Dole or order Five Thousand Dollars. The holder of this instrument shall have the election to require th
> Pablo agreed to lend Marco $500. Thereupon Marco made and delivered his note for $500 payable to Pablo or order “ten days after my marriage.” Shortly thereafter Marco was married. Is the instrument negotiable? Explain.
> A route salesperson for Ideal Milk Company delivered a half-gallon glass jug of milk to Allen’s home. The next day, when Allen grasped the milk container by its neck to take it out of his refrigerator, it shattered in his hand and caused serious injury.
> Explain whether the following instrument is negotiable. March 1, 2015 One month from date, I, James Jimson, hereby promise to pay Edmund Edwards: Six Thousand, Seven Hundred Fifty ($6,750.00) Dollars, plus 8 ¾ % interest. Payment for cutting machines to
> Debbie Dean issued a check to Betty Brown payable to the order of Cathy Cain and Betty Brown. Betty indorsed the check, “Payable to Elizabeth East, (signed) Betty Brown.” What rights, if any, does Elizabeth acquire in the check?
> Simon Sharpe executed and delivered to Ben Bates a negotiable promissory note payable to the order of Ben Bates for $500. Bates indorsed the note, “Pay to Carl Cady upon his satisfactorily repairing the roof of my house, (signed) Ben Bates,” and delivere
> Alpha issues a negotiable check to Beta payable to the order of Beta in payment of an obligation Alpha owed Beta. Beta delivers the check to Gamma without indorsing it in exchange for 100 shares of General Motors stock owned by Gamma. How has Beta transf
> Calvin uses fraud to induce Maria to promise to pay money in return for goods he has delivered to her. Has a contract been formed? If so, what kind? What are the rights of Calvin and Maria?
> Jonathan writes to Willa, stating “I'll pay you $150 if you reseed my lawn.” Willa reseeds Jonathan's lawn as requested. Has a contract been formed? If so, what kind?
> The FTC brings a deceptive trade practice action against Beneficial Finance Company based on Beneficial’s use of its “instant tax refund” slogan. The FTC argues that Beneficial’s advertising a tax refund loan or instant tax refund is deceptive in that th
> The stock in Hotel Management, Inc., a hotel management corporation, was divided equally between two families. For several years the two families had been unable to agree on or cooperate in the management of the corporation. As a result, no meeting of sh
> Upon George Welch’s death, he was survived by his third wife, Dorothy Welch, and his daughter by his first marriage, Patricia Fisher. At the time George and Dorothy were married, George was in very poor health and he relied on Dorothy to care for him. Ge
> Playtime Theaters and Sea-First Properties purchased two theaters in Renton, Washington, with the intention of exhibiting adult films. About the same time, they filed suit seeking injunctive relief and a declaratory judgment that the First and Fourteenth
> John Doe purchased a bottle of “Bleach-All,” a well-known brand, from Roe’s combination service station and grocery store. When John used the “Bleach-All,” his clothes severely deteriorated due to an error in mixing the chemicals during the detergent’s m
> On June 30, 2006, Martin Hendrickson and Solveig Hendrickson were married, and on January 3, 2007, a home previously owned by Martin was conveyed to them as joint tenants and not as tenants in common. Solveig Hendrickson paid no part of the consideration
> The plaintiffs are public utilities providing telecommunications services in New Hampshire. The plaintiffs commenced separate actions for abatement of real estate taxes against sixteen municipalities. The plaintiffs disputed the defendants’ treatment of
> The Commercial Office of Spain hired Enrique Segni to develop a market for Spanish wines in the U.S. Midwest. The Commercial Office is an arm of the Spanish government. Seven months later, Segni was fired, whereupon he filed a lawsuit in a U.S. district
> When considering an application for a special use permit to develop and operate a ski resort at Sandy Butte, a mountain in Washington that is part of a national forest, the Forest Service prepared an environmental impact statement (EIS). The EIS recommen
> Kevin Miller, bought a house in Atlanta in 2007 and took out a mortgage. He lived in the house until 2010, when he accepted a job in Chicago; from then on, he rented the house. He received a letter demanding payment from a law firm on behalf of the mortg
> Arthur Young & Co., a firm of certified public accountants, was the independent auditor for Amerada Hess Corporation. During its review of Amerada’s financial statements as required by federal securities laws, Young confirmed Amerada’s statement of its c
> The California Dental Association (CDA) is a voluntary nonprofit association of local dental societies to which some nineteen thousand dentists belong, about three-quarters of those practicing in the state. The CDA lobbies on behalf of its members’ inter
> Mark Hunger was the safety director at Grand Central Sanitation. On September 7, Hunger “became aware” that hazardous materials consisting of blasting caps were being deposited into garbage containers at Shu-Deb, Inc. Grand Central collected garbage from
> Southwire Company and Essex Group, Inc. are direct competitors in the cable and wire industry. Southwire’s logistics system is a warehouse organizational system with components extending from architectural layout features to customized equipment and modi
> Basic, Inc. was a publicly traded company. Combustion Engineering, Inc. and Basic began discussions concerning the possibility of a merger of the two companies. During the next two years, Basic made three public statements denying that it was engaged in
> The plaintiff’s children purchased an Aero Cycle exercise bike for their mother to use in a weight loss program. The Aero Cycle bike was manufactured by DP and purchased from Walmart. The second time the plaintiff, Judy Dunne, used the bike (the first ti
> Wilcox, chief executive officer and chairman of the board of directors, owned 60 percent of the shares of Sterling Corporation. When the market price of Sterling’s shares was $22 per share, Wilcox sold all of his shares in Sterling to Conrad for $29 per
> Sinclair Oil Corporation organized a subsidiary, Sinclair Venezuelan Oil Company (Sinven) for the purpose of operating in Venezuela. Sinclair owned about 97 percent of Sinven’s stock. Sinclair nominates all members of Sinven’s board of directors, and non
> A closely held corporation sought to repurchase 25 percent of its outstanding shares from one of its shareholders. The corporation and the shareholder agreed that the corporation would purchase all of the shareholder’s stock at a price of $500,000, payab
> In May, Parr and Presba, while in the course of negotiations with Barker (a salesperson for Quaker Hill) to purchase plants and flowers, undertook to organize a corporation to be named the Denver Memorial Nursery, Inc. On May 14 and 16, Parr signed two o
> On April 5, Handy contracted to purchase land with the intent of forming a limited liability company (LLC) with Ginsburg and McKinley for the purpose of building a residential community on the property. On April 21, they learned from Coastal, an environm
> Stroud and Freeman are general partners in Stroud’s Food Center, a grocery store. Nothing in the articles of partnership restricts the power or authority of either partner to act in respect to the ordinary business of the Food Center. In November, howeve
> Chaiken entered into separate but nearly identical agreements with Strazella and Spitzer to operate a barber shop. Under the terms of the “partnership” agreements, Chaiken would provide barber chairs, supplies, and licenses, while the other two would pro
> Sonenberg Company managed Westchester Manor Apartments through its on-site property manager, Judith. Manor Associates Limited Partnership, whose general partner is Westchester Manor, Ltd., owned the complex. The entry sign to the property did not reveal
> Western Rivers Fly Fisher (Western) operates under license of the U.S. Forest Service as an “outfitter,” a corporation in the business of arranging fishing expeditions on the Green River in Utah. Michael D. Petragallo is licensed by the Forest Service as
> John Connelly suffered personal injuries when a tire manufactured by Uniroyal failed while his 1969 Opel Kadett was being operated on a highway in Colorado. Connelly’s father had purchased the automobile from a Buick dealer in Evanston, Illinois. The tir
> Trans-Aire International, Inc. (TAI), converts ordinary automotive vans into recreational vehicles. TAI had been installing carpet and ceiling fabrics in the converted vans with an adhesive made by the 3M Company. Unfortunately, during the hot summer mon
> Alabama was one of only sixteen states that permitted commercial hazardous waste landfills. From 1985 through 1989, the tonnage of hazardous waste received per year more than doubled. Of this, up to 90 percent of the hazardous waste was shipped in from o
> Section 7 (a)(2) of the Endangered Species Act of 1973 (ESA) provides (in relevant part) that [e]ach Federal agency shall, in consultation with and with the assistance of the Secretary (of the Interior), insure that any action authorized, funded, or carr
> Olivo was in the hardware area of a department store. A security guard saw him look around, take a set of wrenches, and conceal it in his clothing. Olivo looked around once more and proceeded toward an exit, passing several cash registers. The guard stop
> Edith Mitchell, accompanied by her thirteen-year-old daughter, went through the checkout at Walmart and purchased several items. As they exited, the Mitchells passed through an electronic antitheft device, which sounded an alarm. Robert Canady, employed
> Rebecca S. Dukat arrived at Mockingbird Lanes, a bowling alley in Omaha, Nebraska, at approximately 6:00 P.M. to bowl in her league game. The bowling alley’s parking lot and adjacent sidewalk were covered with snow and ice. Dukat proceeded to walk into t
> Richardson hired J. C. Flood Company, a plumbing contractor, to correct a stoppage in the sewer line of her house. The plumbing company’s “snake” device, used to clear the line leading to the main sewer, became caught in the underground line. To release
> Cushing filed an application with the office of the Adjutant General of the State of New Hampshire for the use of the Portsmouth Armory to hold a dance on the evening of April 29. The application, made on behalf of the Portsmouth Area Clamshell Alliance,
> Mrs. Audrey E. Vokes, a widow of fifty-one years and without family, purchased fourteen separate dance courses from J. P. Davenport’s Arthur Murray, Inc., School of Dance. The fourteen courses totaled in the aggregate 2,302 hours of dancing lessons at a
> Anna Feinberg began working for the Pfeiffer Company in 1965 at age seventeen. By 2002, she had attained the position of bookkeeper, office manager, and assistant treasurer. In appreciation for her skill, dedication, and long years of service, the Pfeiff
> EarthWeb provided online products and services to business professionals in the information technology (IT) industry. EarthWeb operated through a family of websites offering information, products, and services for IT professionals to use for facilitating
> For more than 40 years, Rose Cipollone smoked between one and two packs of cigarettes a day. Upon her death from lung cancer, Rose’s husband, Antonio Cipollone, filed suit against Liggett Group, Inc., Lorillard, Inc., and Philip Morris, Inc., three of th
> Stuart Studio, an art studio, prepared a new catalog for the National School of Heavy Equipment, a school run by Gilbert and Donald Shaw. When the artwork was virtually finished, Gilbert Shaw requested Stuart Studio to purchase and supervise the printing
> Pizza of Gaithersburg and The Pizza Shops contracted with Virginia Coffee Service (Virginia) to install vending machines in each of their restaurants. One year later, the Macke Company (a provider of vending machines) purchased Virginia’s assets, and the
> Associated Builders, Inc., provided labor and materials to William M. Coggins and Benjamin W. Coggins, doing business as Ben & Bill’s Chocolate Emporium, to complete a structure on Main Street in Bar Harbor, Maine. After a dispute arose regarding compens
> Sanders agreed in writing to write, direct, and produce a motion picture on the subject of lithography (a method for printing using stone or metal) for the Tamarind Lithography Workshop. After the completion of this film, Four Stones for Kanemitsu, litig
> Terminal Grain Corporation brought an action against Glen Freeman, a farmer, to recover damages for breach of an oral contract to deliver grain. According to Terminal Grain, Freeman orally agreed to two sales of wheat to Terminal Grain of four thousand b
> On February 26, 2014, William Stem purchased a used BMW from Gary Braden for $26,600. Stem’s primary purpose for buying the car was to use it to drive his child to school and various activities. Braden indicated to Stem that the car had not been wrecked
> Harrison, a men’s clothing retailer located in Westport, Connecticut, ordered merchandise from Ninth Street East, Ltd., a Los Angeles–based clothing manufacturer. Ninth Street delivered the merchandise to Denver-Chicago Trucking Company (Denver) in Los A
> Brian Felley purchased a used Ford Taurus from Thomas and Cheryl Singleton for $8,800. The car had 126,000 miles on it. After test driving the car, Felley discussed the condition of the car with Thomas Singleton, who informed Felley that the only thing k
> Daniel Martin and John Duke contracted with J & S Distributors, Inc., to purchase a KIS Magnum Speed printer for $17,000. The parties agreed that Martin and Duke would send one-half of the money as a deposit and would pay the balance upon delivery. They
> A gasoline-powered lawn mower, which had been used earlier to cut grass, was left unattended next to a water heater which had been manufactured by Sears. Expert testimony was presented to demonstrate that vapors from the mower’s gas tank accumulated unde
> Holly Hill Acres, Ltd., executed and delivered a promissory note and a purchase money mortgage to Rogers and Blythe. The note provided that it was secured by a mortgage on certain real estate and that the terms of that mortgage “are by this reference mad
> Wilson was employed as the office manager of Palmer & Ray Dental Supply of Abilene, Inc. Soon after an auditor discovered a discrepancy in the company’s inventory, Wilson confessed to cashing thirty-five checks that she was supposed to deposit on behalf
> Leonard Wolfe was killed in an automobile accident while driving his Toyota Camry. The car was rendered a total loss, and Wolfe’s insurance carrier paid his estate $17,550 for damage to the vehicle. Under the terms of Wolfe’s will, any car owned at his d
> The validly executed will of John Dane contained the following provision: “I give and devise to my daughter, Mary, Redacre for and during her natural life and, at her death, the remainder to go to Wilmore College.” The will also provide that the residue
> Arnold executed a one-page will in which he devised his farm to Burton. Later, after a quarrel with Burton, Arnold wrote the words “I hereby cancel and revoke this will /s/Arnold” in the margin of the will but did not destroy the will. Arnold then execut
> Edwin Fuller, a bachelor, prepared his will in his office. The will, which contained no residuary clause, provided that one-third of his estate would go to his nephew, Tom Fuller, one-third to the city of Emanon to be used for park improvements, and one-
> On March 10, John Carver executed his will, which was witnessed by William Hobson and Sam Witt. By his will, Carver devised his farm, Stonecrest, to his nephew, Roy White. The residue of his estate was given to his sister, Florence Carver. A codicil to h
> Joe Brown gave $350,000 to his wife, Mary, with which to buy real property. They orally agreed that title to the real property should be taken in the name of Mary Brown but that she should hold the property in trust for Joe Brown. There were two witnesse
> Collins was trustee for Indolent under the will of Indolent’s father. Indolent, a middle-aged doctor, gave little concern to the management of the trust fund, contenting himself with receiving the income paid to him by the trustee. Among the assets of th
> George Washington Croom died testate. In his will Croom left various bequests of real and personal property to his children and a grandchild. In Item Eight of his will Croom stated “I leave nothing whatsoever to my daughter Kathryn Elizabeth Turner, and
> For sixteen years, the late Mrs. Dorothy Mae Palmer was married to Mr. Schultz, an insulator who worked with asbestos products. Mrs. Palmer was not exposed to asbestos dust in a factory setting; rather, she was exposed when Mr. Schultz brought his work c
> Mamie Henry, a widow, died leaving no children but she was survived by several nieces and nephews. At first no will was found, and Joe Barksdale, a nephew, was appointed administrator of Mrs. Henry’s estate. Later, Rita Pendergrass produced a copy of a w
> John Hobelsberger lived alone on his farm near Kranzburg, South Dakota. A grandniece, Phyllis Raml, and her husband, Ralph, lived on and operated a farm about two miles away. Hobelsberger and the Ramls had a friendly and cordial relationship. The Ramls v
> Rodney Sharp was a fifty-six-year-old dairy farmer whose education did not go beyond the eighth grade. Upon the death of his wife of thirty-two years, Sharp developed a very close relationship with Jean Kosmalski, a schoolteacher sixteen years his junior
> By his last will and testament, Henry Nussbaum made a residual bequest and devise of his estate to his niece, Jane Blair, as trustee, in trust for the education of his grandchildren. If the trust could not be fulfilled, the residue was to revert to the p
> Grace Peterson, a spinster then aged seventy-four, asked Chester Gustafson, a Minneapolis attorney, to draw a will for her. Gustafson, who had also probated Peterson’s sister’s estate, drew this first will and six subsequent wills and codicils free of ch
> State whether or not a trust is created in each of the following situations: (a) A declares herself trustee of “the bulk of my securities” in trust for B. (b) A, the owner of Blackacre, purports to convey to B in trust for C “a small part” of Blackacre.
> For seven years, Desford Potts had owned a 6-acre tract of land within the corporate limits of the city of Franklin. The tract contained a livestock barn in which Potts stored lumber and other building materials. Bricks were also stored in stacks 4 or 5
> The City of Boston sought to condemn land in fee simple for use in constructing an entrance to an underground terminal for a subway. The owners of the land contend that no more than surface and subsurface easements are necessary for the terminal entrance
> Alda and Mattingly are residents of Unit I of Chimney Hills Subdivision. The lots owned by Alda and Mattingly are subject to the following restrictive covenant: “Lots shall be for single-family residence purposes only.” Alda intends to convert her carpor
> In adjoining locations along one side of a single suburban village block, Barker operated a retail bakery; Davidson, a drugstore; Farrell, a food store; Gibson, a gift shop; and Harper, a hardware store. As the population grew, the business section devel
> Heckman, an employee of Clark Equipment Company, severely injured his left hand when he caught it in a power press that he was operating at work. The press was manufactured by Federal Press Company and sold to Clark eight years earlier. It could be opera
> On January 1, 2014, Davis and Hershey owned Blackacre as tenants in common. On July 1, 2014, Davis made a written contract to sell Blackacre to Dibbert for $125,000. Pursuant to this contract, Dibbert paid Davis $125,000 on August 1, 2014, and Davis exec
> Marcia executed a mortgage of Blackacre to secure her indebtedness to Ajax Savings and Loan Association in the amount of $125,000. Later, Marcia sold Blackacre to Morton. The deed contained the following provision: “This deed is subject to the mortgage e
> Robert and Stanley held legal title of record to adjacent tracts of land, each consisting of a number of five acres. Stanley fenced his five acres in 1985, placing his east fence 15 feet onto Robert’s property. Thereafter, he was in possession of this 15
> Arkin, the owner of Redacre, executed a real estate mortgage to the Shawnee Bank and Trust Company for $100,000. After the mortgage was executed and recorded, Arkin constructed a dwelling on the premises and planted a corn crop. After Arkin defaulted in
> In 1972, South Carolina enacted a Coastal Zone Management Act requiring any person using land in a “critical area” to obtain a permit for any uses other than those to which the critical area was devoted when the act went into effect on September 28, 1977
> Sam and Eleanor Gaito purchased a home from Howard Frank Auman, Jr., in the spring of 2013. Auman had completed the construction of the house in November 2008. In the interim, three different parties had lived in the house for brief periods, but Auman ha
> Robert V. Gross owned certain land on which he proposed to construct an eighty-three-unit apartment house. The land, however, was subject to a restriction imposed by a 1972 deed to a predecessor in title that provided that no part of the premises could b
> The Glendale Church purchased a 21-acre parcel of land in a canyon along the banks of Mill Creek in Angeles National Forest. The church used the 12 flat acres next to the stream to operate a campground for disabled children. This area had a number of imp
> Leo owned a one-story, one-family dwelling in a single-family residential zoning district in Detroit. He attempted to sell the house with its adjoining lot for $138,500. Houses in the neighborhood generally sold for $120,000 to $125,000. Immediately to t
> The Gerwitz family resides on a piece of land known as Lot 24 of the Belleville tract, which they acquired by deed in 1995. Shortly thereafter, the Gerwitzes began to use the adjacent vacant Lot 25. At various times they planted grass seed, flowers, and
> Vlases, a coal miner who had always raised small flocks of chickens, spent two years building a new two-story chicken coop large enough to house 4,000 chickens. After its completion, he purchased 2,200 one-day-old chicks from Montgomery Ward for the purp
> In May 2005, Fred Parramore executed four deeds, each conveying a life estate in his land to him and his wife and a remainder interest in one-fourth of his land to each of his four children: Alney, Eudell, Bernice, and Iris. Although Fred executed and ac
> Arthur was the father of Bridgette, Clay, and Dana and the owner of Redacre, Blackacre, and Greenacre. Arthur made and executed a warranty deed conveying Redacre to Bridgette. The deed provided that “this deed shall become effective only on the death of
> At the time of his marriage to Ann, Robert owned several parcels of real estate in joint tenancy with his brother, Sam. During his marriage, Robert purchased a house and put the title in his name and his wife’s name as joint tenants, not as tenants in co
> Otis Olson, the owner of two adjoining city lots, A and B, built a house on each. He laid a drainpipe from lot B across lot A to the main sewer pipe under the alley beyond lot A. Olson then sold and conveyed lot A to Fred Ford. The deed, which made no me
> In her will, Teressa granted a life estate to Amos in certain real estate, with remainder to Brenda and Clive in joint tenancy. All the rest of Teressa’s estate was left to Hillman College. While going to Teressa’s funeral, the car in which Amos, Brenda,
> In 2003, Roy Martin and his wife, Alice; their son, Hiram; and Hiram’s wife, Myrna, acquired title to a 240-acre farm. The deed ran to Roy Martin and Alice Martin, the father and mother, as joint tenants with the right of survivorship, and to Hiram Marti
> Jay signed a two-year lease containing a clause that expressly prohibited subletting. After six months, Jay asked the landlord for permission to sublet the apartment for one year. The landlord refused. This angered Jay, and he immediately assigned his ri
> Ames leased an apartment to Boor for $600 a month, payable the last day of each month. The term of the written lease was from January 1, 2014, through April 30, 2015. On March 15, 2014, Boor moved out, telling Ames that he disliked all the other tenants.
