First Development Corporation of Kentucky (FDCK) sought to purchase a fifteen-acre parcel of riverfront property owned by Martin Marietta. On May 9, FDCK made an offer to purchase the property for $300,000, which it submitted to Coldwell Banker, Martin Marietta’s real estate agent. This offer was accompanied by an ear- nest money deposit evidenced by a $1,000 check payable to Coldwell Banker. The deposit was fully refundable if transfer of title to FDCK was not completed for any reason except FDCK’s failure to perform. After this offer expired without being accepted, FDCK asked Don Gilmour, Coldwell Banker’s account agent, to seek a counteroffer. In a letter to Gilmour dated September 7, Martin Marietta agreed to sell the property for $550,000. The counteroffer stated it was to remain open for thirty days. Gilmour informed Pollitt, president of FDCK, of the counteroffer by telephone on September 7 and sent a copy of the letter to Pollitt, which was received on September 12. Within days of the expiration of FDCK’s original offer, Bill Harvey, president of Harmony Landing, a development company, initiated direct negotiations with Martin Marietta to purchase the riverfront parcel. These negotiations resulted in a contract being executed on September 21 or 22. During a September 21 phone call, Gilmour advised Pollitt of Harmony Landing’s interest in buying the property, but Pollitt remained noncommittal during the conversation. Later that day, Pollitt, along with his partner and engineer, visited the property and discussed various studies and arrived at a decision to accept the September 7 offer from Martin Marietta. However, Pollitt did not convey this acceptance to Gilmour. Rather, he consulted his attorneys regarding a contract to accept Martin Marietta’s offer. After consulting with his attorneys, Pollitt prepared an acceptance of Martin Marietta’s offer but did not put it in the mail. The next morning, Pollitt placed the acceptance in his office suite’s mail depository. However, after being informed by Gilmour that Martin Marietta had accepted Harmony Landing’s option on the river property, Pollitt retrieved the acceptance and personally delivered it to Gilmour at 4:15 p.M. The acceptance was returned to Pollitt, and he subsequently initiated this action for temporary and permanent injunction and specific performance. The district court ruled that the $1,000 check, payable to and in the possession of Cold- well Banker during the period of this controversy was, by operation of law, converted into consideration for a thirty-day irrevocable option in favor of FDCK to purchase the riverfront property in accordance with the terms of Martin Marietta’s letter of September 7. Does a contract exist between Martin Marietta and FDCK? Explain.
> Real Estate Analytics, LLC (REA), a limited liability company, became interested in Theodore Tee Vallas’s 14.13-acre Lanikai Lane property located in Carlsbad, California. REA’s primary goal in purchasing the property was to make a profit for its investo
> Joan, a patient confined in a hospital, has a rare disease that is of great interest to the public. Carol, a television reporter, requests Joan to consent to an interview. Joan refuses, but Carol, nonetheless, enters Joan’s room over her objection and ph
> In late 2017 or early 2018, the plaintiff, Lan England, agreed to sell 258,363 shares of stock to the defendant, Eugene Horbach, for $2.75 per share, for a total price of $710,498.25. Although the purchase money was to be paid in the first quarter of 201
> K&G Construction Co. was the owner of and the general contractor for a housing subdivision project. Harris contracted with the company to do excavating and earth-moving work on the project. Certain provisions of the contract stated that (a) K&G was to m
> Walker & Co. contracted to provide a sign for Harrison to place above his dry-cleaning business. According to the contract, Harrison would lease the sign from Walker, making monthly payments for thirty-six months. In return, Walker agreed to maintain and
> On August 20, Hildebrand entered into a written con- tract with the city of Douglasville whereby he was to serve as community development project engineer for three years at an “annual fee” of $19,000. This salary figure could be changed without affectin
> Potomac Electric Power Company (PEPCO) is an electric utility serving the metropolitan Washington, D.C., area. Panda-Brandywine, L.P. (Panda) is a “qualified facility” under the Public Utility Regulatory Policies Act of 1978. In August 1991, PEPCO and Pa
> On behalf of himself and other similarly situated options investors, Rick Lockwood sued defendant, Standard & Poor’s Corporation (Standard & Poor’s), for breach of contract. Lockwood alleged that he and other options investors suffered lost profits on ce
> Members of Local 100, Transport Workers Union of America (TWU), engaged in an eleven-day mass transit strike that paralyzed the life and commerce of the city of New York. Plaintiffs are engaged in the practice of law as a profession, maintaining offices
> In 1952, the estate of George Bernard Shaw granted to Gabriel Pascal Enterprises, Limited, the exclusive rights to produce a musical play and a motion picture based on Shaw’s play Pygmalion. The agreement contained a provision terminating the license if
> On February 9, George Jackson and his neighbors, Karen and Steve Devenyn, drafted and signed a document that purported to convey a seventy-nine-acre parcel of land owned by Jackson. By the terms of the agreement, Jackson wished to reserve a 1.3-acre port
> On July 5, 2009, Richard Price signed a written employment contract as a new salesman with the Mercury Sup- ply Company. The contract was of indefinite duration and could be terminated by either party for any reason upon fifteen days’ notice. Between 200
> In 1963 the Saturday Evening Post featured an article entitled “The Story of a College Football Fix,” characterized in the subtitle as “A Shocking Report of How Wally Butts and Bear Bryant Rigged a Game Last Fall.” Butts was athletic director of the Univ
> Shane Quadri contacted Don Hoffman, an employee of Al J. Hoffman & Co. (Hoffman), to procure car insurance. Later, Quadri’s car was stolen on October 25 or 26. Quadri contacted Hoffman, who arranged with Budget Rent-a-Car for a rental car for Quadri unti
> Katz offered to purchase land from Joiner, and after negotiating the terms, Joiner accepted. On October 13, over the telephone, both parties agreed to extend the time period for completing and mailing the written contract until October 20. Although the o
> After working for the Phelps Dodge Corporation under an oral contract for approximately twenty-three years, Louie E. Brown was suspended from work for unauthorized possession of company property. The next year, Phelps Dodge fired Brown after discovering
> Presti claims that he reached an oral agreement with Wilson by telephone in October 2016 to buy a horse for $60,000. Presti asserts that he sent Wilson a bill of sale and a postdated check, which Wilson retained. Presti also claims that Wilson told him t
> David and Nancy Songer planned to travel outside the United States and wanted to acquire medical insurance prior to departure. They spoke with an agent of Continental who requested that Nancy Songer undergo a medical examination based on a statement that
> Alice solicited an offer from Robett Manufacturing Company to manufacture certain clothing that Alice intended to supply to the government. Alice contends that in a telephone conversation, Robett made an oral offer that she immediately accepted. She then
> Ethel Greenberg acquired the ownership of the Carlyle Hotel on Miami Beach. Having had little experience in the hotel business, she asked Miller to participate in and counsel her operation of the hotel, which he did. He claims that because his efforts pr
> On September 29, just under two weeks before his eighteenth birthday, Bagley, a highly skilled and experienced snowboarder, purchased a season pass from the Mt. Bachelor ski resort. Upon purchasing the season pass, he executed a release agreement as requ
> On April 29, Kirsten Fletcher and John E. Marshall III jointly signed a lease to rent an apartment for the term beginning on July 1 and ending on June 30 of the follow- ing year, for a monthly rent of $525 per month. At the time the lease was signed, Mar
> On June 11, Chagnon bought a used Buick from Keser for $9,950. Chagnon, who was then a minor, obtained the contract by falsely advising Keser that he was over the age of majority. On September 25, two months and four days after reaching his majority, Cha
> The Environmental Protection Agency (EPA) administrator issued an order suspending the registration of the pesticides heptachlor and chlordane under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA).Velsicol Chemical Corp., the sole manufac
> Halbman, a minor, purchased a used car from Lemke for $11,250. Under the terms of the contract, Halbman would pay $1,000 down and the balance in $125 weekly installments. Upon making the down payment, Halbman received possession of the car, but Lemke ret
> Williamson, her mortgage in default, was threatened with foreclosure on her home. She decided to sell the house. The Matthewses learned of this and contacted her about the matter. Williamson claims that she offered to sell her equity for $17,000 and that
> Haydocy Pontiac sold Jennifer Lee a used automobile for $21,552, of which $20,402 was financed with a note and security agreement. At the time of the sale Lee, age twenty, represented to Haydocy that she was twenty-one years old, the age of majority, and
> L. D. Robertson bought a pickup truck from King and Julian, doing business as the Julian Pontiac Company. Robertson, at the time of purchase, was seventeen years old, living at home with his parents and driving his father’s truck around the county to dif
> A fifteen-year-old minor was employed by Midway Toyota, Inc. On August 18, 2018, the minor, while engaged in lifting heavy objects, injured his lower back. In October 2018, he underwent surgery to remove a herniated disk. Midway Toyota paid him the appro
> G.A.S. married his wife, S.I.S., on January 19, 2009. He began to suffer mental health problems in 2015, during which year he was hospitalized at the Delaware State Hospital for eight weeks. Similar illnesses occurred in 2017 and the early part of 2019,
> Octavio Sanchez worked as a delivery driver at a Domino’s Pizza restaurant owned by Western Pizza. He drove his own car in making deliveries. His hourly wage ranged from the legal minimum wage to approximately $0.50 above minimum wage. Western Pizza reim
> Universal City Studios, Inc. (Universal), entered into a general contract with Turner Construction Company (Turner) for the construction of the Jurassic Park ride. Turner entered into a subcontract with Pacific Custom Pools, Inc. (PCP), for PCP to furnis
> Between 2015 and 2020, Williams purchased a number of household items on credit from Walker-Thomas Furniture Co., a retail furniture store. Walker-Thomas retained the right in its contracts to repossess an item if Williams defaulted on an installment pay
> Richard Brobston was hired by Insulation Corporation of America (ICA) in 2009 as a territory sales manager but was promoted to national account manager in 2013 and to general manager in 2017. In 2019, ICA was planning to acquire computer-assisted design
> a. Johnson tells Davis that he paid $150,000 for his farm in 2016 and that he believes it is worth twice that at the present time. Relying upon these statements, Davis buys the farm from Johnson for $225,000. Johnson did pay $150,000 for the farm in 2016
> In February, Brady contracted to construct a house for Fulghum for $206,850. Brady began construction on March 13. Neither during the negotiation of this contract nor when he began performance was Brady licensed as a general contractor as required by Nor
> Ben Collins was a full professor with tenure at Wisconsin State University in 2015. In March 2015, Parsons College, in an attempt to lure Dr. Collins from Wisconsin State, offered him a written contract promising him the rank of full professor with tenur
> Vernon and Janene Lesher agreed to purchase an eighteen-acre parcel of real property from the Strids with the intention of using it to raise horses. In purchasing the property, the Leshers relied on their impression that at least four acres of the subjec
> International Underwater Contractors, Inc. (IUC), entered into a written contract with New England Telephone and Telegraph Company (NET) to assemble and install certain conduits under the Mystic River for a lump sum price of $149,680. Delays caused by NE
> Jane Francois married Victor H. Francois. At the time of the marriage, Victor was a fifty-year-old bachelor living with his elderly mother, and Jane was a thirty-year-old, twice-divorced mother of two. Victor had a relatively secure financial portfolio;
> Columbia University brought suit against Jacobsen on two notes signed by him and his parents. The notes represented the balance of tuition he owed the University. Jacobsen counterclaimed for money damages due to Columbia’s deceit or fraudulent misreprese
> Plaintiff, Gibson, entered into negotiation with W. S. May, president of Home Folks Mobile Home Plaza, Inc., to buy Home Plaza Corporation. Plaintiff visited the mobile home park on several occasions, at which time he noted the occupancy, visually inspec
> Kelly-Moore Paint Company, entered into a fifteen-year commercial lease with Osprey, for a property in Edmond, Oklahoma. The lease contained an option for two five-year renewals. The lease required that the Kelly-Moore give notice of its intent to renew
> The Cornillies listed with a real estate agent a home for sale. Patrick and Anne Giannetti offered $155,000 for the home and submitted a deposit in the amount of $2,500. The Cornillies countered this offer with an offer to sell the house for $160,000. Th
> Edith Mitchell, accompanied by her thirteen-year-old daughter, went through the checkout at Walmart and purchased several items. As they exited, the Mitchells passed through an electronic antitheft device, which sounded an alarm. Robert Canady, employed
> Olivo was in the hardware area of a department store. A security guard saw him look around, take a set of wrenches, and conceal it in his clothing. Olivo looked around once more and proceeded toward an exit, passing several cash registers. The guard stop
> John Connelly suffered personal injuries when a tire manufactured by Uniroyal failed while his 1969 Opel Kadett was being operated on a highway in Colorado. Connelly’s father had purchased the automobile from a Buick dealer in Evanston, Illinois. The tir
> On June 30, 2012, Martin Hendrickson and Solveig Hendrickson were married, and on January 3, 2013, a home previously owned by Martin was conveyed to them as joint tenants and not as tenants in common. Solveig Hendrickson paid no part of the consideration
> Kevin Miller bought a house in Atlanta in 2016 and took out a mortgage. He lived in the house until 2019, when he accepted a job in Chicago; from then on, he rented the house. He received a letter demanding payment from a law firm on behalf of the mortga
> While driving his car in Virginia, Carpe Diem, a resident of North Carolina, struck Butt, a resident of Alaska. As a result of the accident, Butt suffered more than $80,000 in medical expenses. Butt would like to know, if he personally serves the proper
> Leonard and Arlene Warner sold the Warner Manufacturing Company to Elliott and Carol Archer for $610,000. A few months later, the Archers sued the Warners in a State court for fraud connected with the sale. The parties settled the law- suit for $300,000.
> James Koontz agreed to purchase a Plymouth Sundance from Chrysler Credit Corporation (Chrysler) in exchange for sixty payments of $185.92. Koontz soon thereafter defaulted, and Chrysler notified Koontz that unless he made the payments, it would repossess
> Mary Mansi claims that eighteen checks on her account contain forgeries but were nevertheless paid by her bank, Sterling National Bank. The checks bore signatures that, according to Mansi’s handwriting expert, were apparently “written by another person w
> Saul sold goods to Bruce, warranting that the goods were of a specified quality. The goods were not of the quality warranted, however, and Saul knew this at the time of the sale. Bruce drew and delivered a check payable to Saul and drawn on Third Nationa
> On February 26, 2020, William Stem purchased a used BMW from Gary Braden for $26,600. Stem’s primary purpose for buying the car was to use it to drive his child to school and various activities. Braden indicated to Stem that the car had not been wrecked
> EarthWeb provided online products and services to business professionals in the information technology (IT) industry. EarthWeb operated through a family of Websites offering information, products, and services for IT professionals to use for facilitating
> Anna Feinberg began working for the Pfeiffer Company in 1972 at age seventeen. By 2010, she had attained the position of bookkeeper, office manager, and assistant treasurer. In appreciation for her skill, dedication, and long years of service, the Pfeiff
> On November 15, I. Sellit, a manufacturer of crystalware, mailed to Benny Buyer a letter stating that Sellit would sell to Buyer one hundred crystal “A” goblets at $100 per goblet and that “the offer would remain open for fifteen (15) days.” On November
> Michael, a minor, operates a one-man automobile repair shop. Anderson, having heard of Michael’s good work on other cars, takes her car to Michael’s shop for a thorough engine overhaul. Michael, while overhauling Anderson’s engine, carelessly fits an uns
> Leonard Wolfe was killed in an automobile accident while driving his Toyota Camry. The car was rendered a total loss, and Wolfe’s insurance carrier paid his estate $18,550 for damage to the vehicle. Under the terms of Wolfe’s will, any car owned at his d
> On December 23, Wyman, a lawyer representing First National Bank & Trust (defendant), wrote to Zeller (plaintiff) stating that he had been instructed to offer a building to Zeller for sale at a price of $240,000. Zeller had previously expressed an intere
> On March 10, John Carver executed his will, which was witnessed by William Hobson and Sam Witt. By his will, Carver devised his farm, Stonecrest, to his nephew, Roy White. The residue of his estate was given to his sister, Florence Carver. A codicil to h
> Grace Peterson, a never-married and childless woman, then age seventy-four, asked Chester Gustafson, a Minneapolis attorney, to draw a will for her. Gustafson, who had also probated Peterson’s sister’s estate, drew this first will and six subsequent will
> Barker operated a retail bakery, Davidson a drugstore, Farrell a food store, Gibson a gift shop, and Harper a hardware store in adjoining locations along one side of a single suburban village block. As the population grew, the business section developed
> On January 1, 2021, Davis and Hershey owned Blackacre as tenants in common. On July 1, 2021, Davis made a written contract to sell Blackacre to Grigg for $250,000. Pursuant to this contract, Grigg paid Davis $250,000 on August 1, 2021, and Davis executed
> Robert and Stanley held legal title of record to adjacent tracts of land, each consisting of a number of five acres. Stanley fenced his five acres in 1996, placing his east fence fifteen feet onto Robert’s property. Thereafter, he was in possession of th
> In 2009, Roy Martin and his wife, Alice, their son, Hiram, and Hiram’s wife, Myrna, acquired title to a 240-acre farm. The deed ran to Roy Martin and Alice Martin, the father and mother, as joint tenants with the right of survivorship, and to Hiram Marti
> Ames leased an apartment to Boor at $200 a month, pay- able the last day of each month. The term of the written lease was from January 1, 2020, through April 30, 2021. On March 15, 2020, Boor moved out, telling Ames that he disliked all the other tenants
> Decide and explain your decision for each of the following problems: a. A chimney sweep found a jewel and took it to a goldsmith, whose apprentice removed the stone and refused to return it. The chimney sweep sues the goldsmith. b. One of several boys wa
> On June 1, Cain delivered his 2013 automobile to Barr, the operator of a repair shop, for necessary repairs. Barr put the car in his lot on Main Street. The lot, which is fenced on all sides except along Main Street, holds one hundred cars and is unguard
> On July 15, Adler purchased in Chicago a Buick sedan, intending to drive it that day to St. Louis, Missouri. He telephoned a friend, Maruchek, who was in the insurance business, and told him that he wanted liability insurance on the automobile, limited i
> Lee Calan Imports advertised a used Volvo station wagon for sale in the Chicago Sun-Times. As part of the information for the advertisement, Lee Calan Imports instructed the newspaper to print the price of the car as $1,795. However, due to a mistake mad
> John Swan rented a safe deposit box at the Tenth Citizens Bank of Emanon, State ofX. On December 17, 2018, Swan went to the bank with stock certificates to place in the safe deposit box. After he was admitted to the vault and had placed the stock certifi
> Girard & Company, Certified Public Accountants, audited the financial statements included in the annual report submitted by PMG Enterprises, Inc., to the Secu- rities and Exchange Commission (SEC). The audit failed to detect numerous false and misleading
> Venable Corporation has 750,000 shares of common stock outstanding, which are owned by 2,640 shareholders. The assets of Venable Corporation are valued at more than $10 million. In March, Underhill began purchasing shares of Venable’s common stock in the
> Gooddecade manufactures and sells automobile parts throughout the eastern United States. Among its fulltime employees are 220 fourteen-and fifteen-year-olds. These teenagers are employed throughout the company and are paid an hourly wage rate of $5 per h
> Discuss when a limited partner does or does not have the following rights or powers: (a) to assign his interest in the limited partnership, (b) to receive repayment of loans made to the partnership on a pro rata basis with general creditors, (c) to ma
> Magnum Company produces 77 percent of the coal utilized in the United States. Coal provides 25 percent of all of the energy used in the United States. In a suit brought by the United States against Magnum for violation of the antitrust laws, what result?
> Z sells cameras to A, B, C, and D for $110 per camera. Y, one of Z’s competitors, sells a comparable camera to A for $101.50. Z, in response to this competitive pressure from Y, lowers its price to A to $101.50. B, C, and D insist that Z lower its price
> Discuss the validity and effect of each of the following: a. A, B, and C, manufacturers of stereos, orally agree that due to the disastrous, cutthroat competition in the market, they will establish a reasonable price to charge their purchasers. b. D, E,
> Jones, having filed locally an affidavit required under the assumed name statute, has been operating and advertising his exclusive toy store for twenty years in Centerville, Illinois. His advertising has consisted of large signs on his premises reading “
> B, a chemist, was employed by A, a manufacturer, to work on a secret process for A’s product under an exclusive three-year contract. A employed C, a salesperson, on a week-to-week basis. B and C resigned their employment with A and accepted employment in
> On May 5, Stewart Richardson (Seller) and Jasdip Properties SC, LLC (Buyer) entered into an agreement for the purchase of certain property in Georgetown, South Carolina, for $537,000. Buyer paid an initial earnest money deposit of $10,000, half of which
> A conceived a secret process for the continuous freeze- drying of foodstuffs and related products and constructed a small pilot plant that practiced the process. A, however, lacked the financing necessary to develop the commercial potential of the proces
> Karen has filed a voluntary petition for a Chapter 7 proceeding. The total value of her estate is $35,000. Ben, who is owed $18,000, has a security interest in property valued at $12,000. Lauren has an unsecured claim of $9,000, which is entitled to a pr
> John Bunker has assets of $130,000 and liabilities of $185,000 owed to nine creditors. Nonetheless, his cash flow is positive, and he is making payment on all of his obligations as they become due. I. M. Flintheart, who is owed $22,000 by Bunker, files a
> Alex is a wage earner with a regular income. He has unsecured debts of $42,000 and secured debts owing to Betty, Connie, David, and Eunice totaling $120,000. Eunice’s debt is secured only by a mortgage on Alex’s house. Alex files a petition under Chapter
> Ross Corporation is a debtor in a reorganization proceeding under Chapter 11 of the Bankruptcy Code. By fair and proper valuation, its assets are worth $100,000. The indebtedness of the corporation is $105,000, and it has outstanding $100 par value prefe
> Rosinoff and his wife, who were business partners, entered bankruptcy. A creditor, Baldwin, objected to their discharge in bankruptcy on the grounds that a. the partners had obtained credit from Baldwin on the basis of a false financial statement; b. the
> A debtor went through bankruptcy under Chapter 7 and received his discharge. Explain which of the following debts were completely discharged and which will remain as future debts against him. a. A claim of $9,000 for wages earned within five months immed
> Jessica sold goods to Stacy for $2,500 and retained a security interest in them. Two months later, Stacy filed a voluntary petition in bankruptcy under Chapter 7. At this time, Stacy still owed Jessica $2,000 for the purchase price of the goods, the valu
> Bradley goes into bankruptcy under Chapter 7 owing $25,000 as wages to his four employees. There is enough in his estate to pay all costs of administration and enough to pay his employees, but nothing will be left for general creditors. Do the employees
> a. Benson goes into bankruptcy. His estate is not sufficient to pay all taxes owed. Explain whether Benson’s taxes are discharged by the proceedings. b. Benson obtained property from Anderson on credit by representing that he was solvent when in fact he
> Hannaford is a national grocery chain whose electronic payment processing system was breached by hackers as early as December 7, 2007. The hackers stole up to 4.2 million credit and debit card numbers, expiration dates, and security codes, but did not st
> Jones bought a used car from the A-Herts Car Rental Sys- tem, which regularly sold its used equipment at the end of its fiscal year. First National Bank of Roxboro had previ- ously obtained a perfected security interest in the car based upon its financin
> Aaron bought a television set for personal use from Penny. Aaron properly signed a security agreement and paid Penny $125 down, as their agreement required. Penny did not file, and subsequently Aaron sold the tele- vision for $800 to Clark, his neighbor,
> Anita bought a television set from Bertrum for her personal use. Bertrum, who was out of security agreement forms, showed Anita a form he had executed with Nathan, another consumer. Anita and Bertrum orally agreed to the terms of the form. Anita subseque
> On May 1, Lincoln lends Donaldson $200,000 and receives from Donaldson his agreement to pay this amount in two years and takes a security interest in the machinery and equipment in Donaldson’s factory. A proper financing statement is filed with respect t
> On September 5, Wanda, a widow who occasionally teaches piano and organ in her home, purchased an electric organ from Murphy’s music store for $4,800, trading in her old organ for $1,200 and promising in writing to pay the balance at $120 per month and g
> Finley Motor Company sells an automobile to Sara and retains a security interest in it. The automobile is insured, and Finley is named beneficiary. Three days after the automobile is totally destroyed in an accident, Sara files a petition in bankruptcy.
