Orlando borrows a gasoline driven lawn edger from his neighbor, Max. Max has not used the lawn edger for two years. Orlando has never owned a lawn edger and is not familiar with its use. Max previously used this edger often, and if he had made a reasonable inspection, he would have discovered that the blade was loose. Orlando is injured when the blade becomes detached while he is edging his yard. (a) Can Orlando hold Max liable for his injuries? Why or why not? (b) Would your answer be different if Orlando had rented the edger from Max and paid a fee? Explain.
> Executives in large corporations are ultimately rewarded if their companies do well, particularly as evidenced by rising stock prices. Consequently, should we let those who run corporations decide what level of negative side effects of their goods or ser
> Legislation aimed at “protecting people from themselves” concerns the individual as well as the public in general. Protective helmet laws are just one example of such legislation. Should individuals be allowed to engage in unsafe activities if they choos
> Some consumer advocates argue that high attorney contingency fees—sometimes reaching 40 percent—unfairly deprive winning plaintiffs of too much of their awards. Should the government put a cap on contingency fees at, say 20 percent? Why or why not?
> In this age of the Internet, when people communicate via e-mail, texts, tweets, Facebook, and Skype, is the concept of jurisdiction losing its meaning?
> Under the doctrine of stare decisis, courts are obligated to follow the precedents established in their jurisdictions unless there is a compelling reason not to. Should U.S. courts continue to adhere to this common law principle, given that our governmen
> Read through the subsection in this chapter entitled “Decisions and Opinions.” (See How to Read and Understand Case Law.) (a) One group will explain the difference between a concurring opinion and a majority opinion. (b) Another group will outline the di
> Country Fruit Stand orders eighty cases of peaches from Downey Farms. Without stating a reason, Downey delivers thirty cases instead of eighty and delivers at the wrong time. Does Country have the right to reject the shipment? Explain.
> What choices do disgruntled Uber and Lyft drivers have?
> What benefits can delivery by commercial drone provide to consumers?
> Altisource Portfolio Solutions, Inc., is a global corporation that provides real property owners with a variety of services, including property preservation—repairs, debris removal, and so on. Lucas Contracting, Inc., is a small trade contractor in Carro
> Marit worked for Town & Garden, a landscape design service owned by Donald. Marit signed a note payable to Donald to become a co-owner of Town & Garden. The note, which was undated, required installment payments, but Donald never asked for them. Is Marit
> Mark Wooden sent an e-mail to an alderwoman for the city of St. Louis. Attached was a nineteen-minute audio file that compared her to the biblical character Jezebel. The audio said she was a “bitch in the Sixth Ward,” spending too much time with the rich
> Heather Reason over opted to try Internet service from Clear wire Corp. Clear wire sent her a confirmation e-mail and a modem. When Reason over plugged in the modem, an “I accept terms” box appeared. Without clicking on the box, Reason over quit the page
> Duval Ford, LLC, sold a new Ford F-250 pick-up truck to David Sweat. Before taking delivery, Sweat ordered a lift kit to be installed on the truck by a Duval subcontractor. Sweat also replaced the tires and modified the suspension system to increase the
> Irvin Smith was charged in a Georgia state court with burglary and theft. Before the trial, during the selection of the jury, the state prosecutor asked the prospective jurors whether they knew Smith. No one responded affirmatively. Jurors were chosen an
> Robert Gutkowski, a sports marketing expert, met numerous times with George Steinbrenner, the owner of the New York Yankees, to discuss the Yankees Entertainment and Sports Network (YES). Gutkowski was paid as a consultant. Later, he filed a suit, seekin
> White Plains Coat & Apron Co. is a New York– based linen rental business. Cintas Corp. is a competitor. White Plains had five-year exclusive contracts with some of its customers. As a result of Cintas’s soliciting of business, dozens of White Plains’ cus
> After the fall of the Soviet Union, the new government of Azerbaijan began converting certain state-controlled industries to private ownership. Ownership in these companies could be purchased through a voucher program. Frederic Bourke, Jr., and Viktor Ko
> LG Electronics, Inc., a South Korean company, and nineteen other foreign companies participated in the global market for cathode ray tube (CRT) products. CRTs were integrated as components in consumer goods, including television sets, and were sold for m
> Angelica Westbrook was employed as a collector for Franklin Collection Service, Inc. During a collection call, Westbrook told a debtor that a $15 processing fee was an “interest” charge. This violated company policy. Westbrook was fired. She filed a clai
> Nellie Lumpkin, who suffered from various illnesses, including dementia, was admitted to the Picayune Convalescent Center, a nursing home. Because of her mental condition, her daughter, Beverly McDaniel, filled out the admissions paperwork and signed the
> Sasha owes $600 to Dale, who asks her to sign an instrument for the debt. Consider each of the following alternatives for the wording on that instrument: (a) “I.O.U. $600,” (b) “I promise to pay $600.” (c) An instruction to Sasha’s bank stating, “I wish
> AOL, LLC, mistakenly made public the personal information of 650,000 of its members. The members filed a suit, alleging violations of California law. AOL asked the court to dismiss the suit on the basis of a “forum-selection clause” in its member agreeme
> Michelle Fleshner worked for Pepose Vision Institute (PVI), a surgical practice. She was fired after she provided information to the U.S. Department of Labor about PVI’s overtime pay policy. She sued for wrongful termination, and the jury awarded her $12
> Go to Case Analysis 33.3, M.J. v. Wisan. Read the excerpt and answer the following questions. (a) Issue: What conduct was at the center of the dispute in this case? Who did the plaintiff allege was liable for this conduct? Which of these parties was the
> Scotwood Industries, Inc., sells calcium chloride flake for use in ice melt products. Between July and September 2004, Scotwood delivered thirty-seven shipments of flake to Frank Miller & Sons, Inc. After each delivery, Scotwood billed Miller, which paid
> M. C. and Linda Morris own a home in Gulfport, Mississippi, that was extensively damaged in Hurricane Katrina. The Morrises contracted with Inside Outside, Inc. (IO), to rebuild their kitchen. When the new kitchen cabinets were delivered, some defects we
> LO Ventures, LLC, doing business as Reefpoint Brew house in Racine, Wisconsin, contracted with Forman Awnings and Construction, LLC, for the fabrication and installation of an awning system over an outdoor seating area. After the system was complete, Ree
> Kendall Gardner agreed to buy from B&C Shavings a specially built shaving mill to produce wood shavings for poultry processors. B&C faxed an invoice to Gardner reflecting a purchase price of $86,200, with a 30 percent down payment and the “balance due be
> Kenzie Godfrey, a college student majoring in physics, was a passenger in a taxi when it collided with a car driven by Dawn Altieri. Altieri had originally leased the car from G.E. Capital Auto Lease, Inc. By the time of the accident, she had bought it,
> To display desserts in restaurants, Mario Sclafani ordered refrigeration units from Felix Storch, Inc. Felix faxed a credit application to Sclafani. The application was faxed back with a signature that appeared to be Sclafani’s. Felix delivered the units
> Summerall Electric Co. and other subcontractors were hired by National Church Services, Inc. (NCS), which was the general contractor on a construction project for the Church of God at Southaven. As work progressed, payments from NCS to the subcontractors
> Stella bought a cup of coffee at the Roasted Bean Drive Thru. The coffee had been heated to 190 degrees and consequently had dissolved the inside of the cup. When Stella lifted the lid, the cup collapsed, spilling the contents on her lap. To recover for
> If your company instituted a policy stating stated that employees should “think carefully about ‘friending’ co-workers,” would that policy be lawful? Why or why not?
> Employees meeting around the water cooler or coffee machine have always had the right to discuss work-related matters. Is a social media outlet simply a digital water cooler? Why or why not?
> Consolidated Stores is undergoing a unionization campaign. Prior to the union election, management states that the union is unnecessary to protect workers. Management also provides bonuses and wage increases to the workers during this period. The employe
> AstroStar, Inc., has approximately five hundred shareholders. Its board of directors consists of three members—Eckhart, Dolan, and Macero. At a regular board meeting, the board selects Galiard as president of the corporation by a two-to-one vote, with Ec
> Oxy Corp. is negotiating with Wick Construction Co. for the renovation of Oxy’s corporate headquarters. Wick, the owner of Wick Construction Co., is also one of the five members of Oxy’s board of directors. The contract terms are standard for this type o
> Oya Paka and two business associates formed a corporation called Paka Corp. for the purpose of selling computer services. Oya, who owned 50 percent of the corporate shares, served as the corporation’s president. Oya wished to obtain a personal loan from
> John, Lesa, and Tabir form a limited liability company. John contributes 60 percent of the capital, and Lesa and Tabir each contribute 20 percent. Nothing is decided about how profits will be divided. John assumes that he will be entitled to 60 percent o
> Bateson Corp. is considering entering into contracts with two organizations. One is a joint stock company that distributes home products east of the Mississippi River. The other is a business trust formed by a number of sole proprietors who are sellers o
> While single, James made out a will naming his mother, Carol, as sole beneficiary. Later, James married Lisa. (a) If James died while married to Lisa without changing his will, would the estate go to his mother, Carol? Explain. (b) Assume that James made
> Sapata has an ordinary life insurance policy on her life and a fire insurance policy on her house. Both policies have been in force for a number of years. Sapata’s life insurance names her son, Rory, as beneficiary. Sapata has specifically removed her ri
> Café Rojo, Ltd., an Ecuadoran firm, agrees to sell coffee beans to Dark Roast Coffee Company, a U.S. firm. Dark Roast accepts the beans but refuses to pay. Café Rojo sues Dark Roast in an Ecuadoran court and is awarded damages, but Dark Roast’s assets ar
> Assume that a statute in your state requires that all civil lawsuits involving damages of less than $50,000 be arbitrated. Such a case can be tried in court only if a party is dissatisfied with the arbitrator’s decision. The statute also provides that if
> Patrick contracts with an Ajax Insurance Co. agent for a $50,000 ordinary life insurance policy. The application form is filled in to show Patrick’s age as thirty-two. In addition, the application form asks whether Patrick has ever had any heart ailments
> In early 2014, Bennett, Inc., offered a substantial number of new common shares to the public. Harvey Helms had a long-standing interest in Bennett because his grandfather had once been president of the company. On receiving a prospectus prepared and dis
> James owns a three-story building. He leases the ground floor to Juan’s Mexican restaurant. The lease is to run for a five-year period and contains an express covenant of quiet enjoyment. One year later, James leases the top two stories to the Upbeat Clu
> Madison owned a tract of land, but he was not sure that he had full title to the property. When Rafael expressed an interest in buying the land, Madison sold it to Rafael and executed a quitclaim deed. Rafael properly recorded the deed immediately. Sever
> Atka owns a valuable speedboat. She is going on vacation and asks her neighbor, Regina, to store the boat in one stall of Regina’s double garage. Regina consents, and the boat is moved into the garage. Regina, in need of some grocery items for dinner, dr
> Allitron, Inc., and Donovan, Ltd., are interstate competitors selling similar appliances, principally in the states of Illinois, Indiana, Kentucky, and Ohio. Allitron and Donovan agree that Allitron will no longer sell in Indiana and Ohio and that Donova
> Larkin, Inc., retains Howard Patterson to manage its books and prepare its financial statements. Patterson, a certified public accountant, lives in Indiana and practices there. After twenty years, Patterson has become a bit bored with generally accepted
> David Gain was the chief executive officer (CEO) of Forest Media Corp., which became interested in acquiring RS Communications, Inc. To initiate negotiations, Gain met with RS’s CEO, Gill Raz, on Friday, July 12. Two days later, Gain phoned his brother M
> Gary Mendel drew up a will in which he left his favorite car, a 1966 red Ferrari, to his daughter, Roberta. A year prior to his death, Mendel sold the 1966 Ferrari and purchased a 1969 Ferrari. Discuss whether Roberta will inherit the 1969 Ferrari under
> Alyssa owes Don $5,000 and refuses to pay. Don obtains a garnishment order and serves it on Alyssa’s employer. If the employer complies with the order and Alyssa stays on the job, is one order enough to garnish all of Alyssa’s wages for each pay period u
> Jorge’s Appliance Corp. was a new retail seller of appliances in Sunrise City. Because of its innovative sales techniques and financing, Jorge’s attracted many customers. As a result, the appliance department of No-Glow Department Store, a large chain st
> Moonbay is a homebuilding corporation that primarily develops retirement communities. Farmtex owns a number of feedlots in Sunny Valley. Moonbay purchases 20,000 acres of farmland in the same area and begins building and selling homes on this acreage. In
> Andrew, a resident of California, received an advertising circular in the U.S. mail announcing a new line of regional cookbooks distributed by the Every-Kind Cookbook Co. Andrew didn’t want any books and threw the circular away. Two days later, Andrew re
> Assume that the Food and Drug Administration (FDA), using proper procedures, adopts a rule describing its future investigations. This new rule covers all future circumstances in which the FDA wants to regulate food additives. Under the new rule, the FDA
> For decades, the Federal Trade Commission (FTC) resolved fair trade and advertising disputes through individual adjudications. In the 1960s, the FTC began promulgating rules that defined fair and unfair trade practices. In cases involving violations of t
> Huron Corp. has 300,000 common shares outstanding. The owners of these outstanding shares live in several different states. Huron has decided to split the 300,000 shares two for one. Will Huron Corp. have to file a registration statement and prospectus o
> Estrada Hermanos, Inc., a corporation incorporated and doing business in Florida, decides to sell $1 million worth of its common stock to the public. The stock will be sold only within the state of Florida. José Estrada, the chair of the board, says the
> Alitech Corp. is a small midwestern business that owns a valuable patent. Alitech has approximately a thousand shareholders with 100,000 authorized and outstanding shares. Block Corp. would like to have the use of the patent, but Alitech refuses to give
> Paradise Pools, Inc. (PPI) entered into a contract with Vittorio, LLP, to build a pool as part of a hotel being developed by Takahashi Development. PPI built the pool, but Vittorio, the general contractor, defaulted on other parts of the project. Takahas
> Alir owns 10,000 shares of Ajax Corp. Her shares represent a 10 percent ownership interest in Ajax. Zeta Corp. is interested in acquiring Ajax in a merger, and the board of directors of each corporation has approved the merger. The shareholders of Zeta h
> After graduating from college, Tina works briefly as a salesperson before filing for bankruptcy. Tina’s petition states that her only debts are student loans, taxes accruing within the last year, and a claim against her based on her misuse of customers’
> Adia owns a house and has an elderly third cousin living with her. Adia decides she needs fire insurance on the house and a life insurance policy on her third cousin to cover funeral and other expenses that will result from her cousin’s death. Adia takes
> Lehor collects antique cars. He contracts to purchase spare parts for a 1938 engine from Beem. These parts are not made anymore and are scarce. To obtain the contract with Beem, Lehor agrees to pay 50 percent of the purchase price in advance. Lehor sends
> Moore contracted in writing to sell her 2017 Hyundai Santa Fe to Hammer for $18,500. Moore agreed to deliver the car on Wednesday, and Hammer promised to pay the $18,500 on the following Friday. On Tuesday, Hammer informed Moore that he would not be buyi
> Moon, a farmer, needs to install a two-thousand-pound piece of equipment in his barn. This will require lifting the equipment thirty feet up into a hayloft. Moon goes to Davidson Hardware and tells Davidson that he needs some heavy-duty rope to be used o
> Taconic Plastics, Ltd., is a manufacturer incorporated in Ireland with its principal place of business in New York. Taconic enters into a contract with a German firm, Werner Voss Architects and Engineers, acting as an agent for the government of Saudi Ar
> The U.S. pineapple industry alleged that producers of canned pineapple from the Philippines were selling their canned pineapple in the United States for less than its fair market value (dumping). In addition to canned pineapple, the Philippine producers
> Macrotech, Inc., develops an innovative computer chip and obtains a patent on it. The firm markets the chip under the trademarked brand name “Flash.” Macrotech wants to sell the chip to Nitron, Ltd., in Pacifica, a foreign country. Macrotech is concerned
> Tandy purchased a washing machine from Marshall Appliances. The sales contract included a provision explicitly disclaiming all express or implied warranties, including the implied warranty of merchantability. The disclaimer was printed in the same size a
> Adam’s checks are imprinted with the words “Pay to the order of” followed by a blank. Adam fills in an amount on one of the checks and signs it, but he does not write anything in the blank following the phrase “Pay to the order of.” Adam gives this check
> Edward owned a retail sporting goods shop. A new ski resort was being constructed in his area, and to take advantage of the potential business, Edward decided to expand his operations. He borrowed a large sum from his bank, which took a security interest
> Nero needs $500 to buy textbooks and other supplies. Olivia agrees to loan Nero $500, accepting Nero’s computer as collateral. They put their agreement in writing. How can Olivia let other creditors know of her interest in the computer?
> Peter hires Alice as an agent to sell a piece of property he owns. The price is to be at least $30,000. Alice discovers that the fair market value of Peter’s property is actually at least $45,000 and could be higher because a shopping mall is going to be
> Nabil is the owner of a relatively old home valued at $105,000. The home’s electrical system is failing, and the wiring needs to be replaced. Nabil contracts with Kandhari Electrical to replace the electrical system. Kandhari performs the repairs, and on
> Kanahara is employed part-time by the CrossBar Packing Corp. and earns take-home pay of $400 per week. He is $2,000 in debt to the Holiday Department Store for goods purchased on credit over the past eight months. Most of this property is nonexempt and i
> Niles sold Kennedy a small motorboat for $1,500, telling Kennedy that the boat was in excellent condition. Kennedy gave Niles a check for $1,500, which Niles indorsed and gave to Frazier for value. When Kennedy took the boat for a trial run, she discover
> Waldo makes out a negotiable promissory note payable to the order of Grace. Grace indorses the note by writing on it “Without recourse, Grace” and transfers the note for value to Adam. Adam, in need of cash, negotiates the note to Keith by indorsing it w
> A check drawn by Cullen for $500 is made payable to the order of Jordan and issued to Jordan. Jordan owes his landlord $500 in rent and transfers the check to his landlord with the following endorsement: “For rent paid, [signed] Jordan.” Jordan’s landlor
> Bertram writes a check for $200 payable to “cash.” He puts the check in his pocket and drives to the bank to cash the check. As he gets out of his car in the bank’s parking lot, the check slips out of his pocket and falls to the pavement. Jerrod walks by
> Through negotiation, Emilio has received from dishonest payees two checks with the following histories: (a) The drawer issued a check to the payee for $9. The payee cleverly altered the numeral amount on the check from $9 to $90 and the written word from
> A college student, Austin Keynes, wished to purchase a new entertainment system from Friedman Electronics, Inc. Because Keynes did not have the cash to pay for the entertainment system, he offered to sign a note promising to pay $150 per month for the ne
> Juan Sanchez writes the following note on the back of an envelope: “I, Juan Sanchez, promise to pay Kathy Martin or bearer $500 on demand.” Is this a negotiable instrument? Discuss fully.
> Jorge contracts with Larry of Midwest Roofing to fix Jorge’s roof. Jorge pays half of the contract price in advance. Larry and Midwest complete the job, but Jorge refuses to pay the rest of the price. What can Larry and Midwest do?
> Sabrina Runyan writes the following note on a sheet of paper: “I, the undersigned, do hereby acknowledge that I owe Leo Woo one thousand dollars, with interest, payable out of the proceeds of the sale of my horse, Lightning, next month. Payment is to be
> Paul Gett is a well-known, wealthy financial expert living in the city of Torris. Adam Wade, Gett’s friend, tells Timothy Brown that he is Gett’s agent for the purchase of rare coins. Wade even shows Brown a local newspaper clipping mentioning Gett’s int
> On May 1, Sikora goes into Carson’s retail clothing store to purchase a suit. Sikora finds a suit he likes for $190 and buys it. The suit needs alterations. Sikora is to pick up the altered suit at Carson’s store on May 10. Consider the following separat
> Mackey orders from Pride one thousand cases of Greenie brand peas from lot A at list price to be shipped F.O.B. Pride’s city via Fast Freight Lines. Pride receives the order and immediately sends Mackey an acceptance of the order with a promise to ship p
> In which of the following situations would specific performance be an appropriate remedy? Discuss fully. (a) Thompson contracts to sell her house and lot to Cousteau. Then, on finding another buyer willing to pay a higher purchase price, she refuses to d
> On May 1, Jennings, a car dealer, e-mails Wheeler and says, “I have a 1955 Thunderbird convertible in mint condition that I will sell you for $13,500 at any time before June 9. [Signed] Peter Jennings.” By May 15, having heard nothing from Wheeler, Jenni
> Cohen contracts to sell his house and lot to Windsor for $100,000. The terms of the contract call for Windsor to pay 10 percent of the purchase price as a down payment. The terms further stipulate that if the buyer breaches the contract, Cohen will retai
> Junior owes creditor Iba $1,000, which is due and payable on June 1. Junior has been in a car accident, has missed a great deal of work, and consequently will not have the funds on June 1. Junior’s father, Fred, offers to pay Iba $1,100 in four equal ins
> The Caplans contract with Faithful Construction, Inc., to build a house for them for $360,000. The specifications state “all plumbing bowls and fixtures to be Crane brand.” The Caplans leave on vacation, and during their absence, Faithful is unable to bu
> Discuss whether either of the following contracts will be unenforceable on the ground that voluntary consent is lacking: (a) Simmons finds a stone in his pasture that he believes to be quartz. Jenson, who also believes that the stone is quartz, contracts
> Winona contracted with XtremeCast, a broadcast media firm, to cohost an Internet-streaming sports program. Winona and XtremeCast signed a new contract for each episode. In each contract, Winona agreed to work a certain number of days for a certain salary
> Marsala, a college student, signs a one year lease agreement that runs from September 1 to August 31. The lease agreement specifies that the lease cannot be assigned without the landlord’s consent. In late May, Marsala decides not to go to summer school
