Questions from Business Law

Q: While waiting in line in a supermarket, you observe a woman

While waiting in line in a supermarket, you observe a woman trying to pay with food stamps. Under the law, food stamps cannot be used to pay for prepared items so the register would not accept the st...

Q: Many European nations fear the effects of genetically modified foods, so

Many European nations fear the effects of genetically modified foods, so they choose to restrict their importation. The EU banned the entry of these foods and subjected them to strict labeling requir...

Q: Lewis signed a contract for the rights to all timber located on

Lewis signed a contract for the rights to all timber located on Nine Mile Mine. He agreed to pay $70 per thousand board feet ($70/mbf). As he began work, Nine Mile became convinced that Lewis lacked...

Q: Racicky was in the process of buying 320 acres of ranch land

Racicky was in the process of buying 320 acres of ranch land. While that sale was being negotiated, Racicky signed a contract to sell the land to Simon. Simon paid $144,000, the full price of the la...

Q: Parkinson was injured in an auto accident by a driver who had

Parkinson was injured in an auto accident by a driver who had no insurance. Parkinson filed a claim with her insurer, Liberty Mutual, for $2,000 under her “uninsured motorist” coverage. Liberty Mutu...

Q: John and Susan Verba sold a Vermont lakeshore lot to Shane and

John and Susan Verba sold a Vermont lakeshore lot to Shane and Deborah Rancourt for $115,000. The Rancourts intended to build a house on the property, but after preparing the land for construction, t...

Q: PepsiCo entered into a contract to sell its corporate jet to Klein

PepsiCo entered into a contract to sell its corporate jet to Klein for $4.6 million. Before the deal closed, the plane was sent to pick up PepsiCo’s chairman of the board, who was stranded at Dulles...

Q: Walgreens operated a pharmacy in the Sara Creek mall. As part

Walgreens operated a pharmacy in the Sara Creek mall. As part of this long-term lease, Sara Creek agreed not to lease mall space to another pharmacy. During an economic recession, Sara Creek’s large...

Q: Slimline and Distributor signed a contract which provided that Distributor would use

Slimline and Distributor signed a contract which provided that Distributor would use reasonable efforts to promote and sell Slimline’s diet drink. Slimline was already being sold in Warehouse Club. Af...

Q: Chip bought an insurance policy on his house from Insurance Co.

Chip bought an insurance policy on his house from Insurance Co. The policy covered damage from fire but explicitly excluded coverage for harm caused “by or through an earthquake.” When an earthquake s...