73-75 Main Avenue, LLC, agreed to lease a portion of the commercial property at 73 Main Avenue, Norwalk, Connecticut, to PP Door Enterprise, Inc. Nan Zhang, as manager of PP Door, signed the lease agreement. The lessor required the principal officers of PP Door to execute personal guaranties. In addition, the principal officers agreed to provide the lessor with credit information. Apparently, both the lessor and the principals of PP Door signed the lease and guaranty agreements that were sent to PP Door’s office. When PP Door failed to make monthly payments, 73-75 Main Avenue filed a suit against PP Door and its owner, Ping Ying Li. At trial, Li testified that she was the sole owner of PP Door but denied that Zhang was its manager. She also denied signing the guaranty agreement. She claimed that she had signed the credit authorization form because Zhang had told her he was too young to have good credit. Li claimed to have no knowledge of the lease agreement. She did admit, however, that she had paid the rent. She claimed that Zhang had been in a car accident and had asked her to help pay his bills, including the rent at 73 Main Avenue. Li further testified that she did not see the name PP Door on the storefront of the leased location. (a) Li argued that she was not liable on the lease agreement because Zhang was not authorized to bind her to the lease. Do the facts support Li? Why or why not? (b) Li claimed that the guaranty for rent was not enforceable against her. Why might the court agree?
> After Dave Conley died of lung cancer, his widow filed for benefits under the Black Lung Benefits Act. To qualify for benefits under the act, she had to show that exposure to coal dust was a substantial contributing factor to her husband’s death. Conley
> Brian Cleary and Rita Burke filed a suit against cigarette maker Philip Morris USA, Inc., seeking class-action status for a claim of deceptive advertising. Cleary and Burke claimed that “light” cigarettes, such as Marlboro Lights, were advertised as safe
> Jason Crippen and Catharyn Campbell of Knoxville, Tennessee, were involved in a romantic relationship for many months. Their relationship culminated in an engagement on December 25, 2005, when Crippen placed an engagement ring on Campbell’s finger and si
> Christie’s Fine Art Storage Services Inc. (CFASS) is in the business of storing fine works of art at its warehouse in Brooklyn, New York. The warehouse is next to the East River in a flood zone. Boyd Sullivan owns works of art by Alberto Vargas, includin
> Knox Creek Coal Corporation operates coal mines in West Virginia. The U.S. Department of Labor charged Knox’s Tiller No. 1 Mine with “significant and substantial” (S&S) violations of the Federal Mine Safety and Health Act. According to the charges, inade
> In 2006, twenty’s even entities became limited partners in two hedge funds that had invested with Bernard Madoff and his investment firm. The partners’ investment adviser gave them various investment information, including a memorandum indicating that an
> Go to Case Analysis 45.1, Friends of Animals v. Clay. Read the excerpt and answer the following questions. (a) Issue: What regulation was at issue in this case? What activity does it regulate? (b) Rule of Law: What rule of statutory interpretation did th
> Nicole Tipton and Sadik Seferi owned and operated a restaurant in Iowa. Acting on a tip from the local police, agents of Immigration and Customs Enforcement executed search warrants at the restaurant and at an apartment where some restaurant workers live
> To ensure highway safety and protect driver health, Congress charged federal agencies with regulating the hours of service of commercial motor vehicle operators. Between 1940 and 2003, the regulations that applied to long-haul truck drivers were mostly u
> Richard Vanderbrook’s home in New Orleans, Louisiana, was insured through Unitrin Preferred Insurance Co. His policy excluded coverage for “flood, surface water, waves, tidal water, overflow of a body of water, or spray from any of these, whether or not
> The U.S. National Park Service (NPS) manages the Grand Canyon National Park in Arizona under a management plan that is subject to periodic review. In 2006, after nine years of background work and the completion of a comprehensive environmental impact sta
> A Question of Ethics—Fair Debt-Collection Practices. Barry Sussman graduated from law school, but also served time in prison for attempting to collect debts by posing as an FBI agent. He theorized that if a debt collection business collected only debts t
> McDonald’s Corp.’s Happy Meal® meal selection consists of an entrée, a small order of french fries, a small drink, and a toy. In the early 1990s, McDonald’s began to aim its Happy Meal marketing at children aged one to three. In 1995, McDonald’s began ma
> Go to Case Analysis 41.1 In re Trulia, Inc. Stockholder Litigation. Read the excerpt and answer the following questions. (a) Issue: On what basis did the plaintiffs in this case seek to enjoin the proposed merger? (b) Rule of Law: What is the standard fo
> A well-documented rise in global temperatures has coincided with a significant increase in the concentration of carbon dioxide in the atmosphere. Many scientists believe that the two trends are related, because when carbon dioxide is released into the at
> The Investment Company Act prohibits a mutual fund from engaging in certain transactions when there may be a conflict of interest between the manager of the fund and its shareholders. Under rules issued by the Securities and Exchange Commission (SEC), ho
> In New York City, 2406-12 Amsterdam Associates LLC brought an action in a New York state court against Alianza Dominicana and Alianza LLC to recover unpaid rent. The plaintiff asserted cause to pierce the corporate veil, alleging that Alianza Dominicana
> Dilean Reyes-Rivera was the president of Global Reach Trading (GRT), a corporation registered in Puerto Rico. His brother Jeffrey was the firm’s accountant. Along with GRT sales agents and other promoters, the brothers solicited funds from individuals by
> Three and a half years after Lauren and Warren Woodward were married, they were informed that Warren had leukemia. At the time, the couple had no children, and physicians told the Wood wards that the leukemia treatment might leave Warren sterile. The cou
> Peaberry Coffee, Inc., owned and operated about twenty company stores in the Denver area. The company began a franchise program and prepared a disclosure document as required by the Federal Trade Commission (FTC). Peaberry sold ten franchises, and each f
> In 2004, the Watergate Hotel in Washington, D.C., obtained a loan from PB Capital. At this time, hotel employees were represented by a labor union, and under a collective bargaining agreement, the hotel agreed to make contributions to an employees’ pensi
> While Deer Valley Resort Co. (DVRC) was developing its ski resort in the Wasatch Mountains near Park City, Utah, it sold parcels of land in the resort village to third parties. Each sales contract reserved the right of approval over the conduct of certai
> Designer Surfaces, Inc., supplied countertops to homeowners who shopped at stores such as Lowe’s and Costco. The homeowners paid the store, which then contracted with Designer to fabricate and install the countertops. Designer bought materials from Arizo
> Topps Co. makes baseball and other trading cards, includCo. makes baseball and other trading cards, includCo. makes baseball and other trading cards, includ ing the Pokemon collection, and distributes Bazooka bubble gum and other confections. One of the
> FCR Realty, LLC, and Clifford B. Green & Sons, Inc., were co-owned by three brothers—Frederick, Clifford Jr., and Richard Green. Each brother was a shareholder of the corporation. Frederick was a controlling shareholder, as well as president. Each brothe
> Jamel Blanton was a male employee at a Pizza Hut restaurant operated by Newton Associates, Inc., in San Antonio, Texas. Blanton was subjected to sexual and racial harassment by the general manager, who was female. Newton had a clear, straightforward anti
> Bill McCann was the president and chief executive officer of McCann Ranch & Livestock Co. He and his brother Ron each owned 36.7 percent of the stock. Ron had been removed from the board of directors on their father’s death, however, and was not authoriz
> Stanka Woods was the sole member of Hair Ventures, LLC. Hair Ventures owned 3 million shares of stock in Biolustré, Inc. For several years, Woods and other Biolustré shareholders did not receive notice of shareholders’ meetings or financial reports. On l
> FS Partners is a general partnership whose partners are Jerry Stahlman, a professional engineer, and Fitz & Smith, Inc., a corporation in the business of excavating and paving. Timothy Smith signed the partnership agreement on Fitz & Smith’s behalf and d
> After years of research, your company develops a product that might revolutionize the green (environmentally conscious) building industry. The product is made from relatively inexpensive and widely available materials combined in a unique way that can su
> In 1997, Leon Greenblatt, Andrew Jahelka, and Richard Nichols incorporated Loop Corp. with only $1,000 of capital. Three years later, Banco Panamericano, Inc., which was run entirely by Greenblatt and owned by a Greenblatt family trust, extended a large
> Smith Services, Inc., a trucking business owned by Tony Smith, charged its fuel purchases to an account at Laker Express. When Smith Services was not paid on several contracts, it ceased doing business and was dissolved. Smith continued to provide trucki
> J.C., Inc., had a franchise agreement with McDonald’s Corp to operate McDonald’s restaurants in Lancaster, Ohio. The agreement required J.C. to make monthly payments of certain percentages of gross sales to McDonald’s. If any payment was more than thirty
> Randall and Peggy Norman operated a dairy farm in Pine River, Minnesota. About ten years after the operation was begun, the cows started to experience health issues. Over the next eighteen years, the herd suffered many serious health problems. Eventually
> After Hurricane Katrina struck the Gulf Coast, James Williford, Patricia Mosser, Marquetta Smith, and Michael Floyd formed Bluewater Logistics, LLC, to bid on construction contracts. Under Mississippi law, every member of a member-managed LLC is entitled
> Coco Investments, LLC, and other investors participated in a condominium conversion project to be managed by Zamir Manager River Terrace, LLC. The participants entered into a new LLC agreement for the project. The investors subsequently complained that Z
> Executive Home Care Franchising, LLC, sells in-home health-care franchises. Clint, Massare, and Greer Marshall entered into a franchise agreement with Executive Home Care. The agreement provided that the franchisees’ failure to comply with the agreement’
> Jefferson Partners LP entered into a collective bargaining agreement (CBA) with the Amalgamated Transit Union. Under the CBA, drivers had to either join the union or pay a fair share—85 percent—of union dues, which were used to pay for administrative cos
> Carol Garcia and Pedro Salgado were bus drivers for Latino Express, Inc., a transportation company. Garcia and Salgado began soliciting signatures from other drivers to certify the Teamsters Local Union No. 777 as the official representative of the emplo
> The franchise agreement of Domino’s Pizza, L.L.C., sets out operational standards, including safety requirements, for a franchisee to follow but provides that the franchisee is an independent contractor. Each franchisee is free to use its own means and m
> Brent Avery, on behalf of his law firm—The Law Office of Brent Avery—contracted with Marlin Broadcasting to air commercials on KRTV, a local radio station. Avery, who was the sole member of his firm, helped to create the commercials. The ads featured his
> In 1999, after working for Atchison Leather Products, Inc., for ten years, Beverly Tull began to complain of hand, wrist, and shoulder pain. Atchison recommended that she contact a certain physician, who in April 2000 diagnosed the condition as carpal tu
> Go to Case Analysis 38.3, Reese v. Newman. Read the excerpt and answer the following questions. (a) Issue: Which party’s choice between two alternatives was at the heart of the issue on the appeal of the Reese case? Reese case? Reese (b) Rule of Law: Wha
> Blushing Brides, LLC, a publisher of wedding planning magazines in Columbus, Ohio, opened an account with Gray Printing Co. in July 2000. On behalf of Blushing Brides, Louis Zacks, the firm’s member-manager, signed a credit agreement that identified the
> The Northeast Independent School District in Bexar County, Texas, hired STR Constructors, Ltd., to renovate a middle school. STR subcontracted the tile work in the school’s kitchen to Newman Tile, Inc. (NTI). The project had already fallen behind schedul
> L.V.R.V., Inc., sells recreational vehicles (RVs) in Las Vegas, Nevada, as Wheeler’s Las Vegas RV. In September 1997, Wheeler’s sold a Santara RV made by Coachmen Recreational Vehicle Co. to Arthur and Roswitha Waddell. The Waddells hoped to spend two or
> Assume that you want to read the entire court opinion in the case of Equal Employment Opportunity Commission v. Auto zone, Inc., 809 F.3d 916 (7th Cir. 2016). Refer to the subsection entitled “Finding Case Law” in this chapter, and then explain specifica
> Western Fire Truck, Inc., contracted with Emergency One, Inc. (EO), to be its exclusive dealer in Colorado and Wyoming through December 2003. James Costello, a Western salesperson, was authorized to order EO vehicles for his customers. Without informing
> Standard Oil of Connecticut, Inc., sells home heating, cooling, and security systems. Standard schedules installation and service appointments with its customers and then contracts with installers and technicians to do the work. The company requires an i
> William and Maxine Miller were shareholders of Claimsco International, Inc. They filed a suit against the other shareholders, Michael Harris and Kenneth Hoxie, and the accountant who worked for all of them—John Verchota. Among other things, the Millers a
> Robert Helmer and Percy Helmer, Jr., were authorized signatories on the corporate checking account of Event Marketing, Inc. The Helmers signed a check drawn on Event Marketing’s account and issued to Rummel Technologies, Inc. (RTI), in the amount of $84,
> Primesouth Bank issued a loan to Okefenokee Aircraft, Inc. (OAI), to buy a plane. OAI executed a note in favor of Primesouth in the amount of $161,306.25 plus interest. The plane secured the note. When OAI defaulted, Primesouth repossessed the plane. Ins
> Wesley Hall, an independent contractor managing property for Acree Investments, Ltd., lost control of a fire he had set to clear ten acres of Acree land. The runaway fire burned seventy-eight acres of Earl Barrs’s property. Russell Acree, one of the owne
> Caroline McAfee loaned $400,000 to Carter Oaks Crossing. Joseph Harman, president of Carter Oaks Crossing, signed a promissory note providing that the company would repay the amount with interest in installments beginning in 1999 and ending by 2006. Harm
> G&K Farms, a North Dakota partnership, operated a farm in Texas. G&K was insured under the Supplemental Revenue Assistance Payments Program (SURE), through which the federal government provides financial assistance for crop losses caused by natural disas
> Go to Case 29.1, Picerne Construction Corp. v. Villas. Read the excerpt and answer the following questions. (a) Issue: What statutory term was the focus of the dispute in this case? Why? (b) Rule of Law: Under the state statute that applied in this case,
> Nuclear power plants use low-enriched uranium (LEU) as a fuel. LEU consists of feed uranium enriched by energy to a certain assay—the percentage of the isotope necessary for a nuclear reaction. The amount of energy required is described by an industry st
> In June 1995, Michael and Debra Boudreaux, doing business as D&J Enterprises, Inc., bought a retail electronics store operated under a franchise from Radio Shack. They borrowed from Cabool State Bank to pay for the business and signed loan documents and
> LaSalle Bank loaned $8 million to Cypress Creek 1, LP, to build an apartment complex. The loan was secured by a mortgage. Cypress Creek hired contractors to provide concrete work, plumbing, carpentry, and other construction services. Cypress Creek later
> As an assistant comptroller for Interior Crafts, Inc., in Chicago, Illinois, Todd Leparski was authorized to receive checks from Interior’s customers and deposit the checks into Interior’s account. Over a period of five months, Leparski stole more than $
> Damion and Kiya Carmichael took out a loan from Ameriquest Mortgage Co. to refinance their mortgage. They signed a note to make monthly payments on the loan. Later, Deutsche Bank National Trust Co. acquired the note. The Carmichaels stopped making paymen
> Celine issues a ninety-day negotiable promissory note payable to the order of Hayden. The amount of the note is left blank, pending a determination of the amount that Hayden will need to purchase a used car for Celine. Celine authorizes any amount not to
> Germanie Fequiere executed and delivered a promissory note in the principal amount of $240,000 to BNC Mortgage. As security for the note, Fequiere executed and delivered a mortgage on real property. BNC indorsed the promissory note in blank. Later, Chase
> Go to Case Analysis Case 27.2, Mills v. Chauvin. Read the excerpt and answer the following questions. (a) Issue: What document was at the center of the dispute in this case? (b) Rule of Law: What are the elements of consideration? What are the requiremen
> Peter and Tanya Rothing operated Diamond R Stables near Belgrade, Montana, where they bred, trained, and sold horses. Arnold Kallestad owned a ranch in Gallatin County, Montana, where he grew hay and grain, and raised Red Angus cattle. For more than twen
> In December 1999, Space makers of America, Inc., hired Jenny Triplett as a bookkeeper. Triplett was responsible for maintaining the company checkbook and reconciling it with the monthly statements from SunTrust Bank. She also handled invoices from vendor
> Videotape is recorded magnetically. The magnetic particles that constitute the recorded image are bound to the tape’s polyester base. The binder that holds the particles to the base breaks down over time. This breakdown, which is called sticky shed syndr
> Denise and Nick Purificato signed a note secured by real property in Florida. The note was transferred through several parties to Aurora Loan Services, LLC. The Purificatos defaulted on the payments. Aurora filed a suit in a Florida state court against t
> In November 2000, Monay Jones signed a promissory note in favor of a mortgage company in the amount of $261,250. Jones used the deed to her home in Denver, Colorado, as collateral. Fifth Third Bank soon became the holder of the note. After Jones defaulte
> Mark Denton cosigned a $101,250 loan issued by the First Interstate Bank (FIB) in Missoula, Montana, to Denton’s friend Eric Anderson. Denton’s business assets—a mini-warehouse operation—secured the loan. On his own, Anderson obtained a $260,000 U.S. Sma
> Go to Case Analysis 21.1, BMW Group, LLC v. Castle Oil Corp. Read the excerpt and answer the following questions. (a) Issue: What goods are at the center of this case? Why? (b) Rule of Law: What does the Uniform Commercial Code provide with respect to ca
> John Warren wanted to buy a condominium in California. Hildegard Merrill was the agent for the seller. Because Warren’s credit rating was poor, Merrill told him he needed a co-borrower to obtain a mortgage at a reasonable rate. Merrill said that her daug
> Kenneth West agreed to sell his car, a 1975 Corvette, to a man representing himself as Robert Wilson. In exchange for a cashier’s check, West signed over the Corvette’s title to Wilson and gave him the car. Ten days later, when West learned that the cash
> Technical Consumer Products, Inc. (TCP), makes and distributes energy-efficient lighting products. Emily Bahr was TCP’s district sales manager in Minnesota, North Dakota, and South Dakota when the company announced the details of a bonus plan. A district
> Planned Pethood Plus, Inc., is a veterinarian-owned clinic. It borrowed $389,000 from KeyBank at an interest rate of 9.3 percent to extinguish the obligation. The sooner the loan was paid off, the higher the prepayment penalty. After a year, the veterina
> Premier Building & Development, Inc., entered into a list Development, Inc., entered into a list Development, Inc., entered into a list ing agreement giving Sunset Gold Realty, LLC, the exclusive right to find a tenant for some commercial property. The t
> New England Precision Grinding, Inc. (NEPG), sells precision medical parts in Massachusetts. NEPG agreed to supply Kyphon, Inc., with stylets and nozzles. NEPG contracted with Simply Surgical, LLC, to obtain the parts from Iscon Surgicals, Ltd. The contr
> After a series of e-mails, Jorge Bonilla, the sole proprietor of a printing company in Uruguay, agreed to buy a used printer from Crystal Graphics Equipment, Inc., in New York. Crystal Graphics, through its agent, told Bonilla that the printing press was
> Robert Morris was a licensed insurance agent working for his father’s independent insurance agency when he contacted Farmers Insurance Exchange in Alabama about becoming a Farmers agent. According to Farmers’ company policy, Morris was an unsuitable cand
> Dr. Kevin Bardwell owns Northfield Urgent Care, LLC, a Minnesota medical clinic. Northfield ordered flu vaccine from Clint Pharmaceuticals, a licensed distributer of flu vaccine located in Tennessee. The parties signed a credit agreement that specified t
> Bruce Albea Contracting, Inc., was the general contractor on a state highway project. Albea subcontracted the asphalt work to APAC Southeast, Inc. Their contract prohibited any delegation without Albea’s consent. In mid project, APAC delegated its duties
> King County, Washington, hired Frank Coluccio Construction Co. (FCCC) to act as general contractor for a public works project involving the construction of a small utility tunnel under the Duwamish Waterway. FCCC hired Donald B. Murphy Contractors, Inc.
> ABC Clothiers, Inc., has a contract with Taylor & Sons, a retailer, to deliver one thousand summer suits to Taylor’s place of business on or before May 1. On April 1, Taylor receives a letter from ABC informing him that ABC will not be able to make the d
> Evangel Temple Assembly of God leased a facility from Wood Care Centers, Inc., to house evacuees who had lost their homes in Hurricane Katrina. One clause in the lease contract said that Evangel could terminate the lease at any time by giving Wood Care n
> Randy Jones is an agent for Farmers Insurance Co. of Arizona. Through Jones, Robert and Marcia Murray obtained auto insurance with Farmers. On Jones’s advice, the Murrays increased the policy’s limits over the minimums required by the state of Arizona, e
> Ricky and Sherry Wilcox hired Esprit Log and Timber Frame Homes to build a log house, which the Wilcoxes intended to sell. They paid Esprit $125,260 for materials and services. They eventually sold the home for $1,620,000 but sued Esprit due to construct
> Brendan Coleman created and marketed Clinex, a soft Brendan Coleman created and marketed Clinex, a soft Brendan Coleman created and marketed Clinex, a software billing program. Later, Retina Consultants, P.C., a medical practice, hired Coleman as a softw
> Arkansas Missouri Forest Products, LLC (Ark-Mo), sells supplies to make wood pallets. Blue Chip Manufacturing (BCM) makes pallets. Mark Garnett, an owner of Ark-Mo, and Stuart Lerner, an owner of BCM, went into business together. Garnett and Lerner agree
> Leonard Kranzler loaned Lewis Saltzman $100,000. Saltzman made fifteen payments on the loan, but this did not repay the entire amount. More than ten years after the date of the loan, but less than two years after the date of the last payment, Kranzler fi
> PRM Energy Systems owned patents licensed to Primenergy to use in the United States. Their contract stated that “all disputes” would be settled by arbitration. Kobe Steel of Japan was interested in using the technology represented by PRM’s patents. Prime
> Farrokh and Scheherezade Sharabianlou signed a purchase agreement to buy a building owned by Berenstein Associates for $2 million. They deposited $115,000 toward the purchase. Before the deal closed, an environmental assessment of the property indicated
> Claudia Aceves borrowed from U.S. Bank to buy a home. Two years later, she could no longer afford the monthly payments. The bank notified her that it planned to foreclose on her home. (Foreclosure is a process that allows a lender to repossess and sell t
> International Business Machines Corp. (IBM) hired Niels Jensen in 2000 as a software sales representative. According to the brochure on IBM’s “Sales Incentive Plan” (SIP), “the more you sell, the more earnings for you.” But “the SIP program does not cons
> The Smiths buy a house. They borrow 80 percent of the purchase price from the local ABC Savings and Loan. Before they make their first payment, ABC transfers the right to receive mortgage payments to Citibank. (a) The first group will outline what would
> Cyber crime costs consumers millions of dollars per year, and it costs businesses, including banks and other credit-card issuers, even more. Nonetheless, when cyber criminals are caught and convicted, they are rarely ordered to pay restitution or sentenc
> 1. Finance principles focus on an individual’s a. political and economic behavior. b. economic and social behavior. c. economic and ethical behavior. d. ethical and political behavior. 2. Which principle of finance is not an economic principle? a.
> 1. When did the “Great Recession” occur? a. 1999–2000 b. 2005–2006 c. 2007–2008 d. 2008–2009 2. The reasons for studying finance are to make informed a. economic, personal and business investment, and career decisions. b. political, economic, and
> 1. Finance is the study of how individuals, institutions, governments, and businesses a. acquire, spend, and manage money and other financial assets. b. spend and manage financial assets. c. acquire and spend money. d. acquire and manage money and re
> Visit a firm’s website and obtain historical quarterly balance sheet information from it or from its SEC EDGAR filings (www.walmart.com and www.walgreens.com may be two good sites to use). Record quarterly balance sheet data for several years in a spread
> Using the information below, compute the percentage returns for the following securities:
