New Beginnings provides rehabilitation services for alcohol and drug abuse to both adults and adolescents. New Beginnings entered into negotiation with Adbar for the lease of a building in the city of St. Louis and subsequently entered into a three-year lease. The total rent due for the three-year term was $273,000. After the lease was executed, the city denied an occupancy permit because Alderman Bos- ley and residents testified at a hearing in vigorous opposition to the presence of New Beginnings in the neighborhood. A court ordered the permit issued. Alderman Bosley thereafter contacted the chair of the state ’ s appointment committee and asked her to pull the agency ’ s funding. He received no commitment from her on this matter. After a meeting with the state director of Alcohol and Drug Abuse where it was asserted that the director said the funding would be pulled if New Beginnings moved into the Adbar location, New Beginnings ’ board decided not to occupy the building. Adbar brought suit for breach of the lease, and New Beginnings asserted that it was excused from performance because of commercial impracticability and frustration of purpose. Do you believe the doctrine of commercial impracticability should be limited in its application so as to preserve the certainty of contracts? What rule of law applies to this case? Decide. [ Adbar v. New Beginnings , 103 S.W.2d 799 (Mo. App.)]
> Richard Schewe and others placed personal property in a building occupied by Winnebago County Fair Association, Inc. Prior to placing their property in the building, they signed a “ Storage Rental Agreement ” prepared by the County Fair Association, whic
> Motorola manufactured cell phones for Nextel of Mexico at its facility in Plantation, Florida. Nextel used Westwind International to arrange transporta- tion of the cell phones. Westwind utilized Transpro Logistics to administer the transportation proces
> Doyle Harms applied to his state ’ s Public Utilities Commission for a Class B permit authorizing performance as a common carrier. Doyle testified that it was not his intention to haul in a different direction than he was already going, stating in part:
> Compare warehouse receipts and bills of lading as to negotiability.
> Compare the limitations of the liability of a ware-house and of a hotelkeeper.
> Compare the liens of carriers, warehouses, and hotels in terms of being specific.
> Ronald Sadler, a California resident, owned a helicopter distribution company in West Germany, Delta Avia. This company distributed U.S.-made Hughes civilian helicopters in western Europe. Sadler’s German firm purchased 85 helicopters from Hughes Aircraf
> American Cyanamid shipped 7,000 vials of DPT — a vaccine for immunization of infants and children against diphtheria, pertussis, and tetanus — from its Pearl River, New York, facility to the U.S. Defense Department depot in Mechanicsburg, Pennsylvania, b
> What social forces are involved in the rule of law governing the liability of a common carrier for loss of freight?
> Tate hired Action-Mayflower Moving & Storage to ship his belongings. Action prepared a detailed inventory of Tate ’ s belongings, loaded them on its truck, and received the belongings at its warehouse, where they would be stored until Tate asked that the
> Frosty Land Foods shipped a load of beef from its plant in Montgomery, Alabama, to Scott Meat Co. in Los Angeles via Refrigerated Transport Co. (RTC), a common carrier. Early Wednesday morning, December 7, at 12:55 A . M ., two of RTC ’ s drivers left th
> When de Lema, a Brazilian resident, arrived in New York City, his luggage consisted of three suitcases, an attaché case, and a cylindrical bag. The attaché case and the cylindrical bag contained jewels valued at $300,000. De Lema went from JFK Airport to
> On March 30, Emery Air Freight Corp. picked up a shipment of furs from Hopper Furs, Inc. Hopper ’ s chief of security filled in certain items in the airbill. In the box entitled ZIP Code, he mistakenly placed the figure “ 61,045, ” which was the value
> Garrett and his wife checked into the St. Louis Air- port North Holiday Inn on March 29, taking advantage of the hotel ’ s “ Park and Fly ” package, which provided one night of lodging to individuals, provided a shuttle service to Lambert International A
> Glen Smith contracted with Dave Watson, a com- mon carrier, to transport 720 hives of live bees along with associated equipment from Idabel, Oklahoma, to Mandan, North Dakota. At 9:00 A . M . on May 24, 1984, while en route, Watson ’ s truck skidded off
> Buffett sent a violin to Strotokowsky by International Parcel Service (IPS), a common carrier. Buffett declared the value of the parcel at $500 on the pick-up receipt given him by the IPS driver. The receipt also stated: “Unless a greater value is declar
> Charles and Nicolette went to Italy in November 2008, where Charles proposed marriage and presented Nicolette with a diamond ring. She accepted the proposal and the ring. On the same day, Nicolette asked Charles where he had purchased the ring. She becam
> Able Time Inc. imported a shipment of watches into the United States. The watches bore the mark “TOMMY,” which is a registered trademark owned by Tommy Hilfiger. U.S. Customs seized the watches pursuant to the Tariff Act, which authorizes seizure of any
> Newman underwent physical therapy at Physical Therapy Associates of Rome, Inc. (PTAR), in Rome, Georgia, for injuries sustained in an auto accident. At a therapy session on February 6, it was necessary for Newman to take off two necklaces. She placed one
> Rhodes parked his car in the self-service park- and-lock lot of Pioneer Parking Lot, Inc. The ticket that he received from the ticket meter stated the following: “notice. This contract limits our liability. Read it. We rent space only. No bailment is cre
> John Hayes and Lynn Magosian, auditors for a public accounting firm, went to lunch at the Bay View Restaurant in San Francisco. John left his raincoat with a coatroom attendant, but Lynn took her new raincoat with her to the dining room, where she hung i
> Schroeder parked his car in a parking lot operated by Allright, Inc. On the parking stub given him was printed in large, heavy type that the lot closed at 6:00 P . M . Under this information, printed in smaller, lighter type, was a provision limiting the
> Baena Brothers agreed to reupholster and reduce the size of the arms of Welge ’ s sofa and chair. The work was not done according to the contract, and the furniture when finished had no value to Welge and was not accepted by him. Baena sued him for the
> Martin Acampora purchased a shotgun at a garage sale years ago, never used the weapon, and did not know of any defects in it. His 31-year-old son Marty borrowed the shotgun to go duck hunting. As Marty attempted to engage the safety mechanism, the shotgu
> New York ’ s banking law provides that a presumption arises that a joint tenancy has been created when a bank account is opened in the names of two persons “ payable to either or the survivor. ” While he was still single, Richard Coddington opened a savi
> In 1971, Harry Gordon turned over $40,000 to his son, Murray Gordon. Murray opened two $20,000 custodial bank accounts under the Uniform Gifts to Minors Act for his minor children, Eden and Alexander. Murray was listed as the custodian of both accounts.
> Arthur Grace, a world-renowned photo-journalist, had an agreement with Sygma-Paris and Sygma-New York whereby Grace turned well over 40,000 of his photographic images to Sygma, and Sygma agreed to act as Grace ’ s agent to license the images and administ
> Joyce Clifford gave a check for $5,000 to her nephew Carl to help with living expenses for his last year of college. The face of the check stated, “ As a loan. ” Years later, Carl wrote to his aunt asking what he should do about the loan. She responded o
> Sensor, a Netherlands business organization wholly owned by Geosource, Inc., of Houston, Texas, made a contract with C.E.P. to deliver 2,400 strings of geophones to Rotterdam by September 20, 1982. The ultimate destination was identified as the USSR. The
> On March 6, Colt Manufacturing Co., a handgun manufacturer, sponsored a farewell dinner for one of its officers, Marc Fontane. At the dinner, two Colt officials presented Fontane with a .45-caliber Colt revolver. After the presentation an agent of Colt ’
> Charter Apparel, Inc., supplied fabric to Marco Apparel, Inc., in December to manufacture finished articles of clothing at its Walnut Grove, Mississippi, facilities. The fabric arrived just before the Christmas holiday shutdown and was stacked on cutting
> Ruth and Stella were sisters. They owned a house as joint tenants with right of survivorship. Ruth sold her half interest to Roy. Thereafter, Stella died, and Roy claimed the entire property by survivorship. Was he entitled to it?
> Joe obtained a box of antique Lenox china dishes that had been left at the Mashpee town dump. He supplemented the sizable but incomplete set of dishes with other Lenox pieces found at antique dealers. At dinner parties, he proudly told of the origin of h
> Soden, a contractor, made a contract to build a house for Clevert. The sales contract stated that “ if either party defaults in the performance of this contract, ” that party would be liable to the other for attorneys ’ fees incurred in suing the default
> Wassenaar worked for Panos under a three-year contract stating that if the contract were terminated wrongfully by Panos before the end of the three years, he would pay as damages the salary for the remaining time that the contract had to run. After three
> Ken Sulejmanagic, aged 19, signed up for a course in scuba diving taught by Madison at the YMCA. Before the instruction began, Ken was required to sign a form releasing Madison and the YMCA from liability for any harm that might occur. At the end of the
> Melodee Lane Lingerie Co. was a tenant in a building that was protected against fire by a sprinkler and alarm system maintained by the American District Telegraph Co. (ADT). Because of the latter ’ s fault, the controls on the system were defective and a
> FNBC is a business brokerage firm that assists in the purchase and sale of businesses. Jennings and Hennessey were independent contractors working for FNBC. They left FNBC, and FNBC sued them for breach of their contracts with FNBC. The trial court issue
> The buyer of real estate made a down payment. The contract stated that the buyer would be liable for damages in an amount equal to the down payment if the buyer broke the contract. The buyer refused to go through with the contract and demanded his down p
> How does the selling of subsidized foreign goods in the United States adversely affect free trade?
> Protein Blenders, Inc., made a contract with Gingerich to buy from him the shares of stock of a small corporation. When the buyer refused to take and pay for the stock, Gingerich sued for specific performance of the contract on the ground that the value
> Manny Fakhimi agreed to buy an apartment com- plex for $697,000 at an auction from David Mason. Fakhimi was obligated to put up 10 percent of the agreed-to price at the auction as a deposit. The agreement allowed Mason to keep this deposit should Fakhimi
> Rogers made a contract with Salisbury Brick Corp. that allowed it to remove earth and sand from land he owned. The contract ran for four years with pro- vision to renew it for additional four-year terms up to a total of 96 years. The contract provided fo
> Self-described “ sports nut ” Gary Baker signed up for a three-year club-seat “ package ” that entitled him and a companion to tickets for 41 Boston Bruin hockey games and 41 Boston Celtic basketball games at the New Boston Garden Corporation ’ s Fleet C
> The Forsyth School District contracted with Textor Construction, Inc., to build certain additions and alter school facilities, including the grading of a future softball field. Under the contract, the work was to be completed by August 1. Various delays
> Shepherd-Will made a contract to sell Emma Cousar: 5 acres of land adjoining property owned by the purchaser and this being formerly land of Shepherd- Will, Inc., located on north side of Highway 223. This 5 acres to be surveyed at earliest time possible
> Protection Alarm Co. made a contract to provide burglar alarm security for Fretwell ’ s home. The contract stated that the maximum liability of the alarm company was the actual loss sustained or $50, whichever was the lesser, and that this provision was
> RC Trading Corp (JRC) bought computer software and hardware from Progressive Data Systems (PDS) for $167,935, which it paid in full, to track movement of its trucks with inventory and to process transactions. The purchase agreement also called for a $7,5
> Kuznicki made a contract for the installation of a fire detection system by Security Safety Corp. for $498. The contract was made one night and canceled at 9:00 the next morning. Security then claimed one- third of the purchase price from Kuznicki by vir
> The Column is a sculpture of 19 stainless steel statues depicting a squad of soldiers on patrol; it is a key part of the Korean War Veterans Memorial on the National Mall in Washington, D.C. The Column was created by sculptor and World War II veteran Fra
> Beeson Company made a contract to construct a shopping center for Sartori. Before the work was fully completed, Sartori stopped making the payments to Beeson that the contract required. The contract provided for liquidated damages of $1,000 per day if Be
> Union Pacific Railroad ’ s long-term coal-hauling contract with electric utility WEPCO provided that if the railroad is prevented by “ an event of Force Majeure ” from reloading empty coal cars (after it has delivered coal to WEPCO) with iron ore destine
> Suburban Power Piping Corp., under contract to construct a building for LTV Steel Corp., made a subcontract with Power & Pollution Services, Inc., to do some of the work. The subcontract provided that the subcontractor would be paid when the owner (LTV)
> Farmer William Weber sued the North Loup Irrigation District for breach of contract because North Loup failed to deliver water to his farm during the 2010 season as a result of the destruction of a diversion dam caused by catastrophic flooding in June 20
> Northwest Construction, Inc., made a contract with the state of Washington for highway construction. Part of the work was turned over under a subcontract to Yakima Asphalt Paving Co. The contract required that any claim be asserted within 180 days. Yakim
> Oneal was a teacher employed by the Colton Consolidated School District. Because of a diabetic condition, his eyesight deteriorated so much that he offered to resign if he would be given pay for a specified number of “sick leave” days. The school distri
> A lessor leased a trailer park to a tenant. At the time, sewage was disposed of by a septic tank system that was not connected with the public sewage system. The tenant knew this, and the lease declared that the tenant had examined the premises and that
> Dickson contracted to build a house for Moran. When it was approximately 25 percent to 40 percent completed, Moran would not let Dickson work anymore because he was not following the building plans and specifications and there were many defects. Moran hi
> Christopher Bloom received a medical school scholarship created by the U.S. Department of Health and Human Services to increase the number of doctors serving rural areas. In return for this assistance, Bloom agreed to practice four years in a region iden
> The Tinchers signed a contract to sell land to Creasy. The contract specified that the sales transaction was to be completed in 90 days. At the end of the 90 days, Creasy requested an extension of time. The Tinchers refused to grant an extension and sta
> The American Geophysical Union and 82 other publishers of scientific and technical journals brought a class-action lawsuit against Texaco, claiming that Texaco’s unauthorized photocopying of articles from their journals constituted a copyright infringeme
> Metalcrafters made a contract to design a new earth- moving vehicle for Lamar Highway Construction Co. Metalcrafters was depending on the genius of Samet, the head of its research department, to design a new product. Shortly after the contract was made b
> American Bank loaned Koplik $50,000 to buy equipment for a restaurant about to be opened by Casual Citchen Corp. The loan was not repaid, and Fast Foods, Inc., bought out the interest of Casual Citchen. As part of the transaction, Fast Foods agreed to pa
> Lymon Mitchell operated a Badcock Home Furnishings dealership, under which as dealer he was paid a commission on sales and Badcock retained title to merchandise on display. Mitchell sold his dealership to another and to facilitate the sale, Bad- cock pre
> CIT entered into a sale/leaseback contract with Condere Tire Corporation for 11 tire presses at Condere ’ s tire plant in Natchez, Mississippi. Condere ceased making payments on these presses owned by CIT, and Condere filed for Chapter 11 bankruptcy. CIT
> 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 t
> Zoya operated a store in premises rented from Peer- less. 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 t
> 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 and the Human
> Lone Star Life Insurance Co. agreed to make a long- term 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 b
> 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 th
> 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 Thomas
> Michael Cram alleged that he was the sole creator of a unique talking bottle opener. His product was very successful and he licensed the product to numerous NCAA schools, Major League Baseball, the National Football League, NASCAR, and various movie and
> Assume that Lee agrees to the assignment of the house-painting contract to Karen as stated in question 3. Thereafter, Lee fails to perform the contract to paint Karen ’ s house. Karen sues Sally for damages. Is Sally liable? “Karen notifies Lee that Sal
> Lee contracts to paint Sally ’ s two-story house for $2,500. Sally realizes that she will not have sufficient money, so she transfers her rights under this agree- ment to her neighbor Karen, who has a three-story house. Karen notifies Lee that Sally ’ s
> 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 s
> Give an example of a third-party beneficiary contract.
> Ibberson Co., the general contractor hired by AgGrow Oils, LLC, to design and build an oilseed processing plant, contracted with subcontractor Anderson International Corp. to supply critical seed processing equipment for the project. Anderson ’ s formal
> 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, th
> 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 insuran
> Consolidated Credit Counseling Services, Inc. (Consolidated), sued Affinity Internet, Inc., doing business as SkyNetWEB (Affinity), for breach of its contract to provide computer and Web hosting services. Affinity moved to compel arbitration, and Consoli
> 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 bu
> Panasonic Industrial Co. (PIC) created a contract making Manchester Equipment Co., Inc. (MECI), a nonexclusive wholesale distributor of its products. The contract stated that PIC reserved the unrestricted right to solicit and make direct sales of the pro
> Mineral Deposits, Ltd. (MD, Ltd.), an Australian company, manufactures the Reichert Spiral, a device used for recovering gold particles from sand and gravel. The spiral was patented in Australia, and MD, Ltd., had applied for a patent in the United State
> Catherine (wife) and Peter (husband) Mallen had lived together unmarried for some four years when Catherine got pregnant and a marriage was arranged. Peter asked Catherine to sign a prenuptial agreement. Although his financial statement attached to the a
> 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. Co
> Boeing Airplane Co. contracted with Pittsburgh – Des Moines Steel Co. for the latter to construct a super- sonic wind tunnel. R.H. Freitag Manufacturing Co. sold materials to York-Gillespie Co., which subcontracted to do part of the work. To persuade Fre
> 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 bu
> 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 of its terms. Cresheim later refused to recognize the contract. Mart
> Kelly made a written contract to sell certain land to Brown and gave Brown a deed to the land. There- after, 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 s
> Tambe Electric Inc. entered into a written agreement with Home Depot to provide copper wire to Tambe at a price set forth in the writing, and allowing the contractor the option of paying for the wire over a period of time. Home Depot did not fulfill this
> Lawrence loaned money to Moore, who died with- out repaying the loan. Lawrence claimed that when he mentioned the matter to Moore ’ s widow, she promised to pay the debt. She did not pay it, and Lawrence sued her on her promise. Does she have any defense
> 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. T
> Louise Pulsifer owned a farm that she wanted to sell 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 r
> The plaintiff, Herbert Rosenthal Jewelry Corporation, and the defendant, Kalpakian, manufactured jewelry. The plaintiff obtained a copyright registration of a jeweled pin in the shape of a bee. Kalpakian made a similar pin. Rosenthal sued Kalpakian for i
> China is a signatory country to the Madrid Protocol on the international registration of trademarks. Star- bucks opened its first café in China in 1999 and has added outlets in numerous locations including Shanghai and at the Great Wall and the imperial
> The balancing item in the Dynamic long-term planning model is borrowing. What is meant by balancing item? How would the model change if dividends were made the balancing item instead? In that case how would you suggest that planned borrowing be determine
> Corporate financial plans are often used as a basis for judging subsequent performance. What do you think can be learned from such comparisons? What problems are likely to arise, and how might you cope with these problems?
> Our long-term planning model of Dynamic Mattress is an example of a top-down planning model. Some firms use a bottom-up financial planning model, which incorporates forecasts of revenues and costs for particular products, advertising plans, major investm
> Dynamic Mattress decides to lease its new mattress-stuffing machines rather than buy them. As a result, capital expenditure in the first quarter is reduced by $50 million, but the company must make lease payments of $2.5 million for each of the four quar
> Work out a short-term financing plan for Dynamic Mattress Company, assuming the limit on the line of credit is raised from $100 to $120 million. Otherwise keep to the assumptions used in developing Table 29.7. Table 29.7: Firs
