2.99 See Answer

Question: Designer Surfaces, Inc., fabricated and installed


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 Arizona Tile the balance due, including amounts for materials for which Designer had already received payment. Arizona Tile filed a suit in an Arizona state court against Berger and McCarthy for diverting corporate funds. Arizona Tile argued that the use of the funds for purposes other than to pay for the materials was a breach of fiduciary duty. Berger and McCarthy argued that corporate law did not impose on corporate officers a fiduciary duty or personal liability for breach of such a duty to suppliers of materials. Which argument is more credible and why?


> 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.

> Cedric, a minor, enters into a contract with Diane. How might Cedric effectively ratify this contract?

> 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

> 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

> Why is it necessary to determine where the line between state and national powers lies?

> What is the common law?

> SDBC Holdings, Inc., acquired Stella D’oro Biscuit Company, a bakery in New York City. At the time, a collective bargaining agreement existed between Stella D’oro and the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union, Local

> New Houston Gold Exchange, Inc., (HGE) issued a $3,500 check to Shelly McKee to buy a purportedly genuine Rolex watch. The check was postdated—that is, assigned a date later than the actual one. McKee indorsed the check and presented it to RR Maloan Inve

> Jefferson Partners entered into a collective bargaining agreement (CBA) with the Amalgamated Transit Union. Under the CBA, employees had to either join the union or pay a fair share— 85 percent—of union dues, which were used to pay for administrative cos

> William Moore owned Moore Enterprises, a wholesale tire business. William’s son, Jonathan, worked as a Moore Enterprises employee while he was in high school. Later, Jonathan started his own business, called Morecedes Tire. Morecedes regrooved tires and

> Kindred Nursing Centers East, LLC, owns and operates Whitesburg Gardens, a physical rehabilitation facility in Huntsville, Alabama. Lorene Jones was admitted to the facility following knee-replacement surgery. Jones’s daughter, Yvonne Barbour, signed the

> Michael Scotto borrowed $2,970 from Cindy Vinueza. Both of their signatures appeared at the bottom of a note that stated, “I, Michael Scotto, owe Cindy Vinueza $2,970 (two thousand and nine-hundred-andseventy dollars) and agree to pay her back in full. S

> Euro International Mortgage, Inc. (EIM), held two accounts—Account 9378 and Account 3998—at Bank of America. Ravi Kadiyala was an authorized signatory on Account 9378 but not on Account 3998. Through EIM, Kadiyala obtained a username and password to gain

> Guillermo and Guadalupe Albarran and their sons, Ruben and Rolando, owned R. Cleaning Impact, Inc. (RCI). Neresh Kumar owned Amba II, Inc., a check-cashing business. The Albarrans cashed checks through Amba on a regular basis, often delivering a stack of

> Ethicon, Inc., entered into an agreement with UPS Supply Chain Solutions, Inc., to transport pharmaceuticals. Under a contract with UPS’s subsidiary, Worldwide Dedicated Services, drivers were provided by International Management Services Co. During the

> Eligio Gaitan borrowed the funds to buy real property at 4520 W. Washington St. in Downers Grove, Illinois, and signed a note payable to Encore Credit Corp. Encore indorsed the note in blank. When Gaitan defaulted on the payments, an action to foreclose

> Is a constitutional right to privacy express or implied?

> James McCoy held a credit card issued by Chase Bank USA, N.A. McCoy’s cardholder agreement with Chase stated that he would receive preferred rates (lower interest rates) if he met certain conditions, such as making at least the required minimum payment w

> Zakia Mashiri owns a home in San Diego, California. She is a member of the Westwood Club Homeowners’ Association (HOA), which charges each member an annual fee. When Mashiri failed to pay the fee, the law firm of Epsten Grinnell & Howell sent her a lette

> On Interstate 40 in North Carolina, Carroll Jett became distracted by a texting system in the cab of his tractor-trailer truck and smashed into several vehicles that were slowed or stopped in front of him, injuring Barbara Durkee and others. The injured

> Charity Bell bought a used Toyota Avalon from Awny Gobran of Gobran Auto Sales, Inc. The odometer showed that the car had been driven 147,000 miles. Bell asked whether it had been in any accidents. Gobran replied that it was in good condition. The partie

> Woodridge USA Properties, LP, bought eighty-seven commercial truck trailers from Southeast Trailer Mart, Inc. (STM). Gerald McCarty, an independent sales agent who arranged the deal, showed Woodridge the documents of title. They did not indicate that Woo

> 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 wer

> Aleris International, Inc., signed a contract to buy a John Deere loader from Holt Equipment Co. The agreement provided that “despite physical delivery of the equipment, title shall remain in the seller until” Aleris paid the full price. The next month,

> James McCoolidge, a Nebraska resident, saw a used Honda Element for sale online. He contacted the seller, Daniel Oyvetsky, who offered to sell the vehicle for $7,500 on behalf of Car and Truck Center, a dealership in Nashville, Tennessee. McCoolidge paid

> Arnold Kazery was the owner of a hotel leased to George Wilkinson. The lease included renewal options of ten years each. When Arnold transferred his interest in the property to his son, Sam, no one notified Wilkinson. For the next twenty years, Wilkinson

> Kendall Gardner agreed to buy from James Bowen and Richard Cagle—doing business as B&C Shavings—a specially built shaving mill to produce wood shavings for poultry processors. B&C sent an invoice to Gardner reflecting a purchase price of $86,200, with a

> What does “equal protection” mean?

> New England Precision Grinding, Inc. (NEPG), sells parts for medical equipment in Massachusetts. NEPG agreed to supply Kyphon, Inc., with probes and nozzles. NEPG contracted with Simply Surgical, LLC, to obtain the parts required. After half a dozen tran

> Russ Wyant owned Humble Ranch in South Dakota. Edward Humble was Wyant’s uncle and held a two-year option to buy the ranch from Wyant. The option included specific conditions. Once it was exercised, for instance, the parties had thirty days to enter into

> H&J Ditching & Excavating, Inc., was hired by JRSF, LLC, to perform excavating and grading work on a residential construction project in Tennessee. Cornerstone Community Bank financed the project with a loan to JRSF. When JRSF defaulted on the loan, Corn

> David Desgro hired Paul Pack to inspect a house that Desgro wanted to buy. Pack had Desgro sign a contract that included a twelve-month limit for claims based on the agreement. Pack reported that the house had no major problems, but after Desgro bought i

> Randy Jones is an agent for Farmers Insurance Company 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 Arizon

> When Steven Simkin divorced Laura Blank, they agreed to split their assets equally. At the time, they owned an account with Bernard L. Madoff Investment Securities estimated to be worth $5.4 million. Simkin kept the account and paid Blank more than $6.5

> Madeline Castellotti was the sole shareholder of Whole Pies, Inc., which owns John’s Pizzeria in New York City. Her other assets included an interest in a real estate partnership, a residence on Staten Island, and bank accounts. When Madeline’s son Peter

> Vianna Stibal owns and operates the ThetaHealing Institute of Knowledge (THIK) in Idaho Falls, Idaho. ThetaHealing is Stibal’s “self-discovered” healing method. To induce people to take THIK classes, Stibal claimed that she had been diagnosed with cancer

> Kathy Wright and real estate agent Jennifer Crilow orally agreed to a contract with a “protection period.” Under this provision, if Wright’s property sold after the contract expired to a party who had been shown the property during the term of the contra

> Sue Ann Apolinar hired a guide through Arkansas Valley Adventures, LLC, for a rafting excursion on the Arkansas River. At the outfitter’s office, Apolinar signed a release that detailed potential hazards and risks, including overturning, unpredictable cu

> What does due process require?

> William Zurenda was disabled by post-traumatic stress disorder (PTSD), but had not been adjudged mentally incompetent. During divorce proceedings, he agreed to pay his spouse $5,000 within six months. The settlement was read aloud in court, and the judg

> Bonney McWilliam’s father deeded a house in Norfolk County, Massachusetts, to Bonney and her daughter, Mechelle. Each owned a one-half interest. Described as “an emotionally troubled teenager,” Mechelle had a history of substance abuse and a fractured re

> Farrokh and Scheherezade Sharabianlou agreed 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 the presence of chemi

> Lucas Contracting, Inc., is a small contractor in Carrollton, Ohio. Altisource Portfolio Solutions, Inc., hired Lucas to work on certain foreclosed properties. When payment for the work was not forthcoming, Lucas filed a suit in an Ohio state court again

> While riding her motorcycle, Amy Kemper was seriously injured when Christopher Brown hit her with his vehicle. Kemper wrote to Statewide Claims Services, the administrator for Brown’s insurer, asking for “all the insurance money that Mr. Brown had under

> Hanjuan Jin, a Chinese citizen, worked at Motorola in the United States as a software engineer in a division that created proprietary standards for cellular communications. After a few years, she started corresponding with a company in China about a poss

> Regency Transportation, Inc., operates a freight business throughout the eastern United States. Regency maintains its corporate headquarters and other facilities in Massachusetts. The vehicles in Regency’s fleet were bought in other states. Massachusetts

> Lehman Brothers, Inc. (LBI), wrote a letter to Mary Ortegón offering her employment. The offer included a salary of $150,000 per year and an annual “minimum bonus” of $350,000. The bonus was not a “signing” bonus—it was clearly tied to her performance on

2.99

See Answer