Doran, a young man of 17, married a 17-year-old woman. After the wedding they moved to another city, where they both found work and began to buy furniture and appliances. When they realized that they had been unwise in some of their purchases, they attempted to rescind the contracts, claiming they were minors. Will the Dorans be successful in avoiding the contracts? Principle of Law: Decision:
> The trustees of a labor union pension fund delivered various stocks and bonds to a bank under an agreement that provided that the bank would act as the trustees’ agent in investing the fund’s assets. The agreement also provided that the bank was “authori
> Can common law and statutory law operate side by side? What are the advantages of each?
> Aversa, the personal representative of her late father’s estate, was presented with evidence that there was still $12,000 owing on his automobile. Rather than have the car repossessed, she borrowed $6,000 and refinanced the balance. Objection was made on
> Corbin was named as executor in his father’s will. While going through his late father’s papers, he discovered a promissory note made by Fulsom in the amount of $10,000 that reflected a personal loan the decedent had made before he died. Corbin approache
> Harmon, the owner of a suburban house, rented it for one year to Wagner and his wife, who had just moved into the city from another state. Two months after moving into the house, the Wagners divorced, and both husband and wife moved to smaller facilities
> An intruder entered through a window and raped McCutchen in her apartment. McCutchen sued the landlord, Ten Associates, for failure to provide adequate security and failure to warn her of the risk of intrusion through a window. Ten Associates claimed tha
> Knight purchased an apartment building that was occupied by tenants Hallsthammer, Decaprio, and Breit. The day after acquiring the building, Knight informed the tenants that their rent was being increased. A week later, Breit, on behalf of himself and ot
> The Marglin family moved from Indianapolis to New York and rented an apartment smaller than the one they had left. Marglin arranged to have the excess furniture stored at Global Transportation and Storage Company. During the year that the furniture was i
> Gilder entered a parking garage enclosed within the Washington Hilton Hotel, where he was directed to a parking space by an attendant. Some of the spaces were designated for park-and-lock and others were not. He locked the car and kept the keys. When Gil
> Noble, a resident of Washington, D.C., ordered a stereo tuner from a store in Maine. The unit was shipped and was received by McLean, the receptionist/ switchboard operator in Noble’s apartment building. She placed the tuner in a small room where package
> Wall parked his car in the parking lot at O’Hare Airport in Chicago. After he received a parking ticket from a ticket-dispensing machine, an automatic gate was raised and he entered the lot and parked his car in a space of his choosing. On the reverse si
> Paset, a renter of a safety deposit box at Old Orchard Bank and Trust Company, found $6,325 in currency on the seat of a chair in an examination booth in the safety deposit vault. The chair was partially under a table. Paset notified officers of the bank
> Explain the three characteristics of valid consideration and provide an example of an agreement having these characteristics.
> Rae owned a farm and each summer allowed a neighbor, Fuller, to set up a stand on Rae’s property to sell worms to people who drove by on their way to fish in the nearby lake. After 10 years of regularly using the small piece of property, Rae and Fuller h
> Bryer purchased a suburban home. At the time of the sale, the real estate salesperson pointed to a decorative stone fence as the boundary of the property. Because Bryer had several dogs he wanted to keep on his property, he erected a chain-link fence on
> Gentilotti, father of an illegitimate son, drew a check for $20,000 in 1969 payable to the son’s order. The check was dated July 1, 1985, but provided on the face of the check that, should Gentilotti die before that date, “this check shall be payable imm
> Locke gave two promissory notes to Consumer Food Inc. in payment for merchandise he purchased. The notes said, “Buyer agreed to pay to seller.” Consumer Food assigned the notes to Aetna Acceptance Corporation. Were these notes negotiable instruments? [Lo
> Poulakis sold a computer using fraudulent means to Welson, who paid for the machine with a promissory note for $1,200. When Welson discovered the fraud, she refused to honor the note when it was presented for payment by a subsequent holder. Welson claime
> Higgins was a used car dealer. He purchased a Corvette, giving the seller a draft drawn by him on the First State Bank of Albertville in the amount of $8,115. This draft was later presented by the seller to the bank for payment. Meanwhile, Higgins sold t
> Graver gave Srau a postdated check for $2,000 as a deposit on a sailboat as acceptance of Srau’s offer to sell the boat. Later, after Srau sold the boat to someone else, he claimed that the check was not really part of a binding contract because it was p
> Grove Hotel hired Fortas, an electrical contractor, and paid him with a promissory note for $3,400. The note stated that it was “with interest at prevailing bank rates.” Did the stipulation about interest rates affect the negotiability of the note? Princ
> Following months in which Chrysler experienced deepening losses and received billions in bailout funds from the federal government, the company, now referred to as Old Chrysler, filed a bankruptcy petition under Chapter 11. The filing unsuccessfully soug
> Jensen was involved in a motor vehicle accident with Boyer. Jensen brought suit against Boyer, alleging that her negligence caused the accident. Boyer then brought a countersuit against Jensen, claiming that it was actually Jensen’s negligence that cause
> Provide an example of a contracting party offering consideration by doing something that he or she is not legally required to do.
> Melvin and his brother, Russell Ballantyne, formed an oral partnership, which started out as a farming operation but grew into oil and gas exploration. Russell was in charge of the farming operation, while Melvin was in charge of the oil and gas explorat
> Dale, an assistant scoutmaster for the Boy Scouts, lost his position when the organization learned that he was gay. Dale contended that he was the victim of discrimination, while the Boy Scouts argued that they were exercising their First Amendment right
> Holley and Holley, an interracial couple, alleged that they were the victims of discrimination in housing as a result of actions by Crank, an employee of Triad Inc. The Holleys sued Meyer, the sole shareholder, the president, and a broker of Triad. Meyer
> Blodgett, while walking on a public sidewalk, was injured when a large piece of wood fell from a construction job at the offices of Olympic Savings and Loan Association. The construction work was being done by Drury Construction Company. Blodgett sued bo
> Washington purchased an automobile from Courtesy Motor Sales, a Ford automobile dealer. After the car was delivered, she discovered that the car she thought was new was, in fact, used and that the odometer had been turned back to conceal the mileage. Was
> Ferrara made a contract with Perret without informing her that he was acting on behalf of National Steel Wire Company. Ferrara had actual express authority, as provided in his contract of agency with National. The contract was breached and Perret sued Na
> Adano Restaurant Supply, which sells only to commercial customers, sold 200 plastic dishes to Airport Diner. When the owner of the diner attempted to wash the dishes in the dishwasher, they were distorted by the heat. Airport Diner claimed that there was
> Walters bought a power lawnmower. Attached to the engine was a tag that read in part, “For 90 days from purchase date Power Engine Company will replace for the original purchaser, free of charge, any part or parts found, upon examination at any factory a
> Gates entered into a contract with Mennonite Deaconess Home & Hospital for the installation of a new, “one-ply roofing system.” The work was to be done by an installer chosen by Mennonite but approved by Gates. When the work was nearly complete, but befo
> Bundeson, a farmer, attended an auction of used farm equipment and successfully bid $1,600 for a tractor. When he returned home, he learned that a real estate developer was eager to buy his farm and build a shopping center on the property. Bundeson agree
> Identify the major provisions of the privacy rule in the HIPAA.
> Gagne made a good living selling snacks, hamburgers, and refreshments at athletic events. He placed a written order with Pacific Container Company for 4,000 Styrofoam containers to be used to package hamburgers. Gagne requested that delivery be made thre
> Hughes purchased a new Lincoln Continental automobile from Al Greene Inc., an authorized new car dealership. On the day of the sale, Hughes made a cash down payment and signed a purchase contract and an application for the title certificate. The understa
> Kiang, a sales representative working for Prat’s Appliances, sold a refrigerator to Pogany. After several weeks, Pogany changed her mind and wanted to repudiate the sales contract. Her argument was that a valid contract did not exist because Kiang did no
> Alttarbi was on a group vacation tour when he discovered that his camcorder was not where he had left it on the tour bus. Later on the tour, Alttarbi noticed another vacationer, Carlsen, with a similar camcorder. When Carlsen was confronted, he claimed t
> Blackburn, a painting contractor, agreed in writing to paint DeSoto’s house for a certain price. After the house was painted, DeSoto asked Blackburn to paint his garage. Blackburn had other painting jobs scheduled and refused the additional work. DeSoto
> Weintraub wished to donate a music rehearsal room to Northern College, from which she had graduated. She hired Hazelton, an architect who specialized in acoustics, to design the room. Shortly after the agreement was made, Weintraub died. Hazelton refused
> Birmingham Automotive Supply Company entered into a contract with the Excel Construction Company to build a chain-link fence around the property of the auto supply company. Included in the contract was a provision that the fence must be manufactured by T
> The employees of Powder Power Tools Corp. were represented by a labor union that had negotiated an agreement covering pay rates. A number of employees did not receive the higher rates of pay specified in the union contract. Springer, an employee, brought
> A restaurant, Pizza of Gaithersburg Inc. (PG), agreed with Virginia Coffee Service (VCS) to have vending machines installed in PG’s restaurants. The contract was to run for one year and was automatically renewable unless PG gave 30 days’ notice. One year
> Dennison agreed to purchase land from Harden with the understanding that the land contained fruit trees. To prove that there were fruit trees on the property, Harden provided nursery reports stating that Pacific Gold peach trees were growing on the land.
> Identify two ways that regulators propose to make health insurance more affordable.
> Anderson was seriously injured in a traffic accident. Anderson’s daughter called a doctor, Lawrence, and told him to “give my father the best care you can give him, and I’ll pay whatever you charge.” The doctor provided the care, but the father died befo
> Jason decided to declare bankruptcy because his financial situation was desperate and his only property was a nearly new car worth about $14,000. In an attempt to conceal the value of his property, he sold the car to his friend Dane for $2,000. He planne
> Alfino borrowed money from Yakutsk and agreed in writing to pay a rate of interest higher than that allowed by local law. Later, when Alfino was called upon to pay, he refused, claiming that the agreement was void because of the usurious rate. Yakutsk, t
> Maitland, a fund-raiser for Arbor College, solicited contributions for the college’s building program. Hamill Manufacturing pledged a contribution to the program. When the company did not pay, Maitland sued. Hamill claimed there was no consideration. Wil
> The Spring Well Drilling Company entered into a contract with Towne Construction Company to drill a well to supply water to a particular piece of property where Towne was building a house. Spring Well offered no guarantee that water would, in fact, be pr
> Power-Sports wished to obtain Harley-Davidson’s permission to purchase a motorcycle dealership. Power-Sports provided written and oral statements about its business model, and based upon these statements, Harley-Davidson approved the purchase. Later Harl
> Malina, the owner of an old, multistory factory building, offered to lease the building to Larson, a manufacturer. Larson wanted to know whether the construction of the floors was strong enough to support the heavy machinery he planned to install. Malina
> Weaver, a high school dropout, leased a gas station from American Oil Company and signed a standard agreement prepared by the oil company’s lawyers. The lease (contract) contained a clause in fine print that provided that the oil company would not be lia
> Browne offered to sell Houlihan his recently purchased 50-inch plasma screen television set for $6,400. Houlihan sent Browne an e-mail message accepting the offer but asked if she could pay Browne in four equal monthly installments of $1,600. Browne did
> List six types of health-related insurance benefits typically available to employees.
> Grogan, a marketing consultant, was hired by Kreger Bottling Company to conduct market research into the taste preferences of consumers in a major city. Before he concluded the project, he was asked to take on the additional task of analyzing the appeal
> Hodge, a 54-year-old employee of a bank, discussed his job and future with Tilley, president of Evans Financial Corporation and his employer. They agreed orally on a number of matters, including job title and location. After eight months on the new job,
> Fortrell, an aide in a child care center, was particularly concerned about the behavior of a certain child who frequently fought with and teased other children at the center. LaRena, the mother of one of the children who had been a victim of the troubles
> Robin Williams, famous entertainer and comedian, gave a performance at a San Francisco nightclub, The Great American Music Hall. As part of his comedy routine, he disparaged a particular brand of wine, Rege, by suggesting that it would be a great success
> Muscarello illegally sold marijuana, which he transported in a small truck. Police discovered a handgun in the locked glove compartment of the truck. A provision in the firearms chapter of the federal law demands a five-year required prison term for pers
> Searle, office manager of Entro Products, had access to the firm’s checks to be used in paying for office supplies. However, Searle was not authorized to sign them. Each time he wanted to pay invoices, Searle had to have the firm’s president sign them. A
> Franken, president of Monarch Pharmaceuticals Incorporated, was one of only three persons who knew that one of the firm’s experimental drugs had just been approved by the federal government. The drug had been found to cure several serious diseases. As so
> DeCoster and his son, owners of a large egg production company, negligently sold eggs contaminated by salmonella poisoning, causing illness to 1,939 people, according to an estimate by the U.S. Centers for Disease Control and Prevention. According to est
> Buckley, a worker in a restaurant, stole a credit card from the coat of its owner with the intention of using it to charge goods. He purchased some merchandise at a retail store and paid for these goods by presenting the stolen credit card to the salespe
> At a special meeting, the board of directors of Family Federal Savings & Loan Association asked Newton, its president, manager, and director, to resign. He did so. Shortly thereafter, a reporter for the Oregon Statesman talked about Newton’s resignation
> List the most common of the numerous forms of medical insurance available to individuals and employers.
> Explain the due process and equal protection clauses of the Fourteenth Amendment.
> Fletcher-Harlee Corp., a general contractor, solicited bids from subcontractors on various aspects of a building project for which it intended to compete. In response, Pote Concrete Contractors Inc. submitted a written price quotation for providing the c
> Sanderson Mart ran an advertisement in the Daily Tribune that stated, “Special offer to our customers—3/8-inch Electric Hand Drills, Saturday only— $14.99, only 100 in stock, while they last! Be here when we open for the bargain of the year!” Cruz arrive
> An inspector from the department of weights and measures in a particular city made a routine examination of the gasoline pumps at a service station to check their accuracy. The inspector found that one pump delivered only 4.5 gallons when the meter showe
> English was an employee of the city of Long Beach, California. His fitness to perform his duties was brought into question by an administrative agency of the city that customarily held hearings where such decisions were made. English was not notified of
> Stotts was employed as a technician in the engineering department of Raytron Corporation. All the engineers on staff were required to sign agreements that they would not accept employment with another company in the industry within three years of leaving
> The law in a particular state provided that the commissioner of insurance had the authority to approve or not approve the rates charged consumers for automobile insurance. The managers of a particular insurance company believed that the services they pro
> Siwek took his new Buick to his dealer for minor repairs. While the car was in the dealer’s repair shop, the dealer informed Siwek that the car was equipped with a Chevrolet engine. The standard engine for a car of the model and year in question was a 2.
> Dasey was employed as a state trooper by the Massachusetts Department of State Police. In his employment application, Dasey stated that he had not used illegal drugs during the previous five years. Later, during an unrelated homicide investigation, a vid
> The GDGS Corporation adopted an arbitration policy and announced it to its employees via e-mail. The policy stated that arbitration was the exclusive means of resolving legal disputes between employees and the company. When Campbell, one of the employees
> Ayer, an engineer with product development responsibilities, was confronted with an ethical dilemma. He knew that a product being manufactured by the firm was unsafe for consumer use as a result of cost cutting. He also believed that if he complained to
> Distinguish between the two most commonly used advance directives—the living will and the durable power of attorney for health care.
> Packerd owned a restaurant that employed several employees as servers. When sales began to decline, Packerd decided to fire three servers. He selected Artemuk, who had numerous complaints about her service; Bednerz, who would soon be leaving for jury dut
> Zanucky was employed by a furniture store as a driver of a delivery truck. While making a delivery, he negligently drove through a red light, and the delivery truck struck a vehicle operated by Gittins, who was injured in the accident. a. Can Gittins sue
> What are the three major classifications of crimes?
> What is the difference between a tort and a crime?
> Explain why legislatures establish regulatory agencies.
> Discuss several responses by businesses to ethical issues.
> Discuss the relationship between ethics and the law.
> Suggest several unfavorable consequences facing a business firm that consistently engages in unethical practices.
> Discuss and provide examples of values that are highly regarded in our society.
> Identify some typical issues for people who are ethically concerned with the environment.
> Discuss five exceptions to foreign sovereign immunity pursuant to the Foreign Sovereign Immunities Act.
> Describe the two broad categories of ethical reasoning, including the similarities and differences between the two.
> Define negligence and distinguish between the different types of negligence.
> Describe conversion and explain its main purpose.
> Explain the two common defenses to charges of defamation.
> Explain the differences between libel and slander.
> Describe defamation.
> Explain the nature of torts and identify some common torts.
> Discuss several common crimes of particular concern to businesses and employees.
> Identify the three major classifications of crimes.
> Define crime and distinguish between crimes and torts.
