Question: Cedric, a minor, enters into a contract

> Tanner borrows $150,000 from Southeast Credit Union to buy a home, which secures the loan. Two years into the term, Tanner stops making payments on the loan. After six months without payments, Southeast informs Tanner that he is in default and that it wi

> Al’s Retail Store is a sole proprietorship. Smith & Jones is an advertising partnership. Roth & Associates, Inc., is a professional corporation. First State Savings & Loan is a savings and loan association. Which of these is not eligible for reorganizati

> Which works are copyrightable?

> Ruth Ann borrows $175,000 from Sunny Valley Bank to buy a home. Federal law regulates primarily the terms of the mortgage that must be disclosed in writing in clear, readily understandable language. What are the major terms that must be disclosed under t

> First National Bank loans $5,000 to Gail to buy a car, which is used as collateral to secure the loan. Gail has paid less than 50 percent of the loan when she defaults. First National could repossess and keep the car, but the bank does not want it. What

> Joe contracts with Larry of Midwest Roofing to fix Joe’s roof. Joe pays half of the contract price in advance. Larry and Midwest complete the job, but Joe refuses to pay the rest of the price. What can Larry and Midwest do to get the remainder of what Jo

> Interstate Corporation asks its shareholders to vote on a proposed merger with Regional, Inc. Jill, an Interstate shareholder, votes against it, but is outvoted by the other shareholders. Is there anything Jill can do to avoid being forced to go along wi

> ABC Corporation combines with DEF, Inc. ABC ceases to exist. DEF is the surviving firm. Global Corporation and Hometown Company combine. Afterwards, Global and Hometown cease to exist. GH, Inc., a new firm, functions in their place. Which of these combin

> Joe is a director and officer of United Products, Inc. Joe makes a decision about the marketing of United’s products that results in a dramatic decrease in profits for United and its shareholders. The shareholders accuse Joe of breaching his fiduciary du

> Glen is a director and shareholder of Diamond Corporation and of Emerald, Inc. If a resolution comes before the Emerald board to compete with Diamond, what is Glen’s responsibility?

> The incorporators of Consumer Investments, Inc., want their new corporation to have the authority to transact nearly all conceivable types of business. Can they grant this authority to their firm? If so, how? If not, why not?

> Wonder Corporation has an opportunity to buy stock in XL, Inc. The directors decide that, instead of Wonder buying the stock, the directors will buy it. Yvon, a Wonder shareholder, learns of the purchase and wants to sue the directors on Wonder’s behalf.

> Hal and Gretchen are partners in a delivery business. When business is slow, with out Gretchen’s knowledge, Hal leases out the delivery vehicles as moving vans. Because the vehicles would otherwise be sitting idle in a parking lot, can Hal keep the lease

> How does licensing protect intellectual property?

> Sam plans to open a sporting goods store and to hire Gil and Art. Sam will invest only his own capital. He does not expect to make a profit for at least eighteen months and to make little profit for the first three years. He hopes to expand eventually. W

> Erin, an employee of Fine Print Shop, is injured on the job. For Erin to obtain workers’ compensation, does her injury have to have been caused by Fine Print’s negligence? Does it matter whether the action causing the injury was intentional? Explain.

> Ruth is a supervisor for Subs & Suds, a restaurant. Tim is a Subs & Suds employee. The owner announces that some employees will be discharged. Ruth tells Tim that if he has sex with her, he can keep his job. Is this sexual harassment? Why or why not?

> American Manufacturing Company (AMC) issues an employee handbook that states employees will be discharged only for good cause. One day, Greg, an AMC supervisor, says to Larry, “I don’t like your looks. You’re fired.” May AMC be held liable for breach of

> Marie, owner of the Consumer Goods Company, employs Rachel as an administrative assistant. In Marie’s absence, and without authority, Rachel represents herself as Marie and signs a promissory note in Marie’s name. In what circumstance is Marie liable on

> Able Corporation wants to build a new mall on a specific tract of land. Able contracts with Sheila to buy the property. When Sheila learns the difference between the price that Able is willing to pay and the price at which the owner is willing to sell, s

> Herb steals a check from Kay’s checkbook, forges Kay’s signature, and transfers the check to Will for value. Unaware that the signature is not Kay’s, Will presents the check to First State Bank, the drawee. The bank cashes the check. Kay discovers the fo

> Lynn draws a check for $900 payable to the order of Jan. Jan indorses the check in blank and transfers it to Owen. Owen presents the check to First National Bank, the drawee bank, for payment. If the bank does not honor the check, is Lynn liable to Owen?

> Roy signs corporate checks for Standard Corporation. Roy writes a check payable to U-All Company, to whom Standard owes no money. Roy signs the check, forges U-All’s indorsement, and cashes the check at First State Bank, the drawee. Does Standard have an

> Adam issues a $500 note to Bill due six months from the date is¬sued. One month later, Bill negotiates the note to Carol for $250 in cash and a check for $250. To what extent is Carol an HDC of the note?

> Which trademarks are protected by the law?

> Jack Caldwell gets his paycheck from his employer, indorses the back of the check by signing his name, and goes to cash it at his credit union. On the way, he loses the check. Paige finds the check. Has the check been negotiated to Paige? How might Jack

> Jim owes Sherry $700. Sherry asks Jim to sign a negotiable instrument regarding the debt. Which of the following, if included on that instrument, would make its negotiable: “I.O.U. $700,” “I promise to pay $700,” or an instruction to Jim’s bank stating,

> Sweet Candy Company wants to sell its candy in a normal-sized package labeled “Gigantic Size.” Fine Fabrics, Inc., wants to advertise its sweaters as having “That Wool Feel,” but does not want to specify on labels that the sweaters are 100 percent polyes

> Top Electronics, Inc., advertises GEM computers at a low price. Top keeps only a few in stock and tells its sales staff to switch consumers attracted by the price to more expensive brands. Top tells its staff, “If all else fails, refuse to show the GEMs,

> Anchor, Inc., makes prewrapped mattress springs. Through an employee’s carelessness, an improperly wrapped spring is sold to Bloom Company, which uses it in the manufacture of a mattress. Bloom sells the mattress to Beds Unlimited, which sells it to Kay.

> General Construction Company (GCC) tells Industrial Supplies, Inc., that it needs an adhesive to do a particular job. Industrial provides a five-gallon bucket of a certain brand. When it does not perform to GCC’s specifications, GCC sues Industrial, whic

> Pic Post-Stars agrees to sell Ace Novelty five thousand posters of celebrities, to be delivered on April 1. On March 1, Pic tells Ace, “The deal’s off.” Ace says, “I expect you to deliver. I’ll be waiting.” Can Ace sue Pic without waiting until April 1?

> Mike agrees to sell one thousand espresso makers to Jenny to be delivered on May 1. Due to a strike, Mike can deliver the espresso makers two hundred at a time over a period of ten days, with the first delivery on May 1. Does Mike have a right to deliver

> Paula boards her horse, Blaze, at Gold Spur Stables. She sells the horse to George and calls Gold Spur to say, “I sold Blaze to George.” Gold Spur says, “Okay.” That night, Blaze is kicked in the head by another horse and dies. Who pays for the loss?

> Adams Textiles in Kansas City sells certain fabrics to Silk & Satin Stores in Oklahoma City. Adams packs the fabric and ships it by rail to Silk. While the fabric is in transit across Kansas, a tornado derails the train and scatters and shreds the fabric

> When does trademark infringement occur?

> Smith & Sons, Inc., sells truck supplies to J&B, which services trucks. Over the phone, J&B and Smith negotiate for the sale of eighty-four sets of tires. Smith sends a letter to J&B detailing the terms. Smith ships the tires two weeks later. J&B refuses

> Brad orders 150 computer desks. Fred ships 150 printer stands. Is this an acceptance of Brad’s offer or a counteroffer? If it is an acceptance, is it a breach of the contract? What if Fred told Brad that he was sending printer stands as an accommodation?

> Amy contracts to sell her ranch to Mark, who is to take possession on June 1. Amy delays the transfer until August 1. Mark incurs expenses in providing for livestock that he bought for the ranch. When they made the contract, Amy had no reason to know of

> George contracts to build a storage shed for Ron, who pays George in advance, but George completes only half the work. Ron pays Paula $500 to finish the shed. If Ron sues George, what would be the measure of recovery?

> Fleet Trucking leases a delivery truck to Grocers Express. The lease prohibits Grocers from assigning its rights without Fleet’s consent. When the truck needs repair, Grocers leaves it with Harland’s Truck Service. Unable to pay for the repair, Grocers a

> Brian owes Jeff $100. Ed tells Brian to give him the $100 and he will pay Jeff. Brian gives Ed the $100. Ed never pays Jeff. Can Jeff successfully sue Ed for the $100?

> Paula orally agrees to work with Next Corporation in New York City for two years. Paula moves her family and begins work. Three months later, Paula is fired for no stated cause. She sues for reinstatement or pay. Next Corporation argues that there is no

> GamesCo orders $800 worth of game pieces from Midstate Plastic, Inc. Midstate delivers, and GamesCo pays for, $450 worth. GamesCo then says it wants no more pieces from Midstate. GamesCo and Midstate have never dealt with each other before and have noth

> In selling a house, Matt tells Ann that the wiring, fixtures, and appliances are of a certain quality. Matt knows nothing about the quality, but it is not as specified. Ann buys the house. On learning the true quality, Ann confronts Matt. He says he wasn

> Brad, an accountant, files Dina’s tax returns. When the Internal Revenue Service assesses a large tax against Dina, she retains Brad to contest the assessment. The day before the deadline for replying to the IRS, Brad tells Dina that unless she pays a hi

> State the two questions that determine whether a defendant’s act caused a plaintiff’s injury.

> Potomac Airlines, Inc., prints on the backs of its tickets that it is not liable for any injury to a passenger caused by Potomac’s negligence. Ron buys a ticket and boards the plane. On takeoff, the place crashes, and Ron is injured. If the cause of the

> Diane bets Tex $1,000 that the Green Bay Packers will win the Super Bowl. A state law prohibits gambling. Do Diane and Tex have an enforceable contract? Explain.

> Joan, who is sixteen years old, moves out of her parents’ home and signs a lone-year lease for an apartment at Kenwood Apartments. Joan’s parents tell her that she can return to live with them at any time. Unable to pay the rent, Joan moves to her parent

> Before Maria starts her first year of college, Fred promises to pay her $5,000 when she graduates. She goes to college, borrowing and spending more than $5,000. At the beginning of the spring semester of her senior year, she reminds Fred of the promise.

> In September, Sharon agrees to work for Cole Productions, Inc., at $500 a week for a year beginning January 1. In October, Sharon is offered the same work at $600 a week by Quintero Shows, Ltd. When Sharon tells Cole about the other offer, they tear up t

> While visiting the Web site of Cyber Investments, Dani encounters a popup box that reads, “Our e-mail daily newsletter E-Profit is available by subscription at the rate of one dollar per issue. To subscribe, enter your e-mail address below and click on

> Molly tells Nick that she will pay him $10,000 to set fire to her store, so that she can collect the money from her fire insurance policy. Nick sets fire to the store, but Molly refuses to pay him. Can Nick recover the $10,000 from Molly? Why or why not?

> Alison receives a notice of property taxes due from the local tax collector. The notice is for tax on Jerry’s property, but Alison believes that the tax is hers and pays it. Can Alison recover from Jerry the amount that she paid? Why or why not?

> Carl appears on television talk shows touting a cure for AIDS that he knows is fraudulent. He frequently mentions that he needs funds to make the cure widely available, and donations pour into local television stations to be forwarded to Carl. Has Carl c

> Which tort is the civil side of crimes related to theft?

> Without Jim’s permission, Lee signs Jim’s name to several checks that were issued to Jim and then cashes them. Jim reports that the checks were stolen and receives replacements. Has Lee committed forgery? Why or why not?

> After less than a year in business, Elite Fitness Club surpasses Good Health Club in numbers of members. Elite’s marketing strategies attract many Good Health members, who then change clubs. Does Good Health any recourse against Elite? Explain your answe

> A burst water pipe floods a Metal Fabrication Company utility room and trips the circuit breakers on a panel in the room. Metal Fabrication contacts Nouri, a licensed electrician with five years experience, to check the damage and turn the breakers back

> Suppose that a state taxes out-of-state companies doing business in the state at a rate higher than the rate for in-state companies. The state’s purpose is to protect local firms from out-of-state competition. Does this tax violate the equal protection c

> Ron wants to sue Art’s Supply Company for Art’s failure to deliver supplies that Ron needed to prepare his work for an appearance at a local artists’ fair. What must Ron establish before a court will hear the suit?

> Carlos, a citizen of California, is injured in an automobile accident in Arizona. Alex, the driver of the other car, is a citizen of New Mexico. Carlos wants Alex to pay Carlos’s medical expenses and car repairs, which total $125,000. Can Carlos sue in f

> The First Amendment provides protection for the free exercise of religion. A state legislature enacts a law that outlaws all religions that do not derive from the Judeo-Christian tradition. Is this law valid within that state? Why or why not?

> Mac Tools, Inc., markets a product that under some circumstances is capable of seriously injuring consumers. Does Mac have an ethical duty to remove this product from the market, even if the injuries result only from misuse?

> Under what circumstances might a judge rely on case law to determine the intent and purpose of a statute?

> Under what circumstances would Pop’s Market, a small store in a small, isolated town, be considered a monopolist? If Pop’s is a monopolist, is it in violation of Section 2 of the Sherman Act? Discuss your answer.

> What are the two categories of wrongful interference?

> Hi-Cola Corporation, a U.S. company, markets a popular soft drink. The formula is secret, but with careful chemical analysis, its ingredients could be discovered. What can Hi-Cola do to prevent its product from being pirated abroad?

> Dayton Superior Corp. makes and distributes commercial concrete construction products. Dayton’s customers, including Spa Steel Products, Inc., compete with each other to sell Dayton’s products. Spa Steel’s customers begin to buy Dayton’s products from co

> Manitou North America, Inc., makes and distributes telehandlers—forklifts with extendable telescopic booms—to dealers throughout the United States. Manitou agreed to make McCormick International, LLC, its exclusive dealer in the state of Michigan. Later,

> Michael Manin, an airline pilot, was twice convicted of disorderly conduct, a minor misdemeanor. To renew his flight certification with the National Transportation Safety Board (NTSB), Manin filed an application that asked him about his criminal history.

> Knox Creek Coal Corp. operates coal mines in West Virginia. The U.S. Department of Labor charged Knox with “significant and substantial” (S&S) violations of the Federal Mine Safety and Health Act. According to the charges, inadequately sealed enclosures

> Under an agreement with the town of Monroe, North Carolina, the town of Midland began to acquire the rights to local land for the installation of a natural gas pipeline. When the owners refused to sell, Midland used its eminent domain authority to condem

> A California state statute requires sellers to provide a real estate “Transfer Disclosure Statement” (TDS) to buyers of residential property. Required disclosures include information about significant defects, including hazardous materials, encroachments

> Ocean Prime, LLC, owns buildings at 1 West Street and 17 Battery Park Place in New York City in an area known to be vulnerable to flooding. The buildings include nearly five hundred residential apartments and fifteen floors of commercial space. During Su

> In Tarrytown, New York, Citibank operated a branch that included a building and a parking lot with thirty-six spaces. Tarrytown leased twenty-one of the spaces from Citibank for use as public parking. When Citibank closed the branch and decided to sell t

> Bob Moreland left his plane at Don Gray’s aircraft repair shop to be painted. Disappointed by the quality of the paint job, Moreland refused to pay Gray and flew the plane to another shop to have the work redone. Gray sued to collect, contending that Mor

> Define fraud.

> 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, includ

> James Heal owned a vehicle salvage yard in Homestead, Iowa. Brian Anderson contracted with Heal to run the business. Anderson cleaned up the property, removed trash, installed heat and fixed the plumbing in the buildings, and brought in tools and equipme

> Jennifer Koerner adopted a dog—the Stig— from the Anti-Cruelty Society in Chicago, Illinois, for $95. Koerner wrote a poem and presented it to Kent Nielsen, her live-in boyfriend. In the poem, she expressed her intent to give the Stig to him as a gift. W

> Sara Simon lost her cellphone in Manhattan, Kansas. Days later, Shawn Vargo contacted her, claiming to have the phone. He promised to mail it to her if she would wire him $100 through a third party, Mark Lawrence. When Simon spoke to Lawrence about the w

> American MultiCinema, Inc. (AMC) owns movie theaters. To determine the amount of taxes it owed to Texas, AMC subtracted its cost of goods sold (COGS) from its total revenue. AMC included the cost of showing movies in its COGS. In other words, it treated

> Barbara Hann financed her education partially through $22,500 in loans. Hann believed that she had repaid the loans, but when she later filed a Chapter 13 petition, Educational Credit Management Corp. (ECMC) filed an unsecured proof of claim based on the

> First Brownsville Company borrowed funds from Beach Community Bank to build and operate a mini-warehouse storage business. The loan was secured by a mortgage. First Brownsville defaulted on the payments. Beach filed an action in a Florida state court to

> American National Property and Casualty Co. issued a policy to Robert Houston to insure a residence and its contents against fire and other hazards. Twenty months later, Houston issued a deed to the property to John and Judy Sykes. John paid the premiums

> Jeffrey Krueger and Michael Torres, shareholders of Cru Energy, Inc., were embroiled in litigation in a Texas state court, charging each other with attempts to control Cru through fraud. To delay the state court proceedings, Krueger filed a petition for

> Mortgage, Inc., issued Antonio Ibanez a $103,500 home loan. The loan changed hands several times until, finally, U.S. Bank National Association (USBNA) held the mortgage. Ibanez defaulted. USBNA foreclosed, bought the property, and then filed suit to obt

> What must a plaintiff normally prove to establish defamation?

> Douglas and Archondoula Edmonds borrowed funds from Chase Bank USA, National Association (N.A.), secured by a mortgage on real property in Cape Coral, Florida. The mortgage required the lender to give the borrowers notice of default and an opportunity to

> Designer Surfaces, Inc., fabricated and installed countertops. Designer’s corporate officers were Howard Berger and John McCarthy. The company bought materials from Arizona Tile, LLC, on an open account. When Designer became insolvent, it could not pay A

> Grand Adventures Tour & Travel Publishing Corp. (GATT) provided travel services. Duane Boyd, a former GATT director, incorporated Interline Travel & Tour, Inc. At a public sale, Interline bought GATT’s assets. Interline moved into GATT’s office building,

> Grand Harbour Condominium Owners Association, Inc., obtained a judgment in an Ohio state court against Gene and Nancy Grogg for $45,458.86. To satisfy the judgment, Grand Harbour filed a notice of garnishment with the court, seeking funds held by the Gro

> Lockheed Martin Corp. owned an aluminum refinery in St. Croix, Virgin Islands. Lockheed sold the refinery to Glencore, Ltd. Their contract provided that the buyer would assume the seller’s liability for preexisting environmental conditions. Alcoa World A

> Cynthia Horn worked as a janitor for Knight Facilities Management–GM, Inc., in Detroit, Michigan. When Horn developed a sensitivity to cleaning products, her physician gave her a “no exposure to cleaning solutions” restriction. Knight then discussed poss

> Country Contractors, Inc., contracted to provide excavation services for A Westside Storage of Indianapolis, Inc. Country did not complete the job and later filed for bankruptcy. Stephen Songer and Jahn Songer were Country’s sole shareholders and officer

> Dan and Lori Cole operated a Curves exercise facility in Angola, Indiana, as a partnership. The firm entered into a lease for commercial space from Flying Cat, LLC, for a renewable three-year term. At the end of the three-year term, Lori signed an extens

> Jennifer Hoffman took her smartphone to a store owned by R&K Trading, Inc., for repairs. Later, Hoffman filed a suit in a New York state court against R&K and Verizon Wireless, Inc., seeking to recover damages for a variety of torts. She alleged that an

> Dennis Wallace was a deputy sheriff for Stanislaus County, California, when he injured his left knee. After surgery, he was subject to limits on prolonged standing, walking, and running. The county assigned him to work as a bailiff. The sergeants who sup