Kendall Gardner agreed to buy from B&C Shavings a specially built shaving mill to produce wood shavings for poultry processors. B&C faxed an invoice to Gardner reflecting a purchase price of $86,200, with a 30 percent down payment and the “balance due before shipment.” Gardner paid the down payment. B&C finished the mill and wrote Gardner a letter telling him to “pay the balance due or you will lose the down payment.” By then, Gardner had lost his customers for the wood shavings, could not pay the balance due, and asked for the return of his down payment. Did these parties have an enforceable contract under the Statute of Frauds? Explain.
> The U.S. federal courts are accepting too many lawsuits initiated by foreigners that concern matters not relevant to this country.
> No express warranties should be created by the oral statements made by salespersons about a product.
> Rather than being allowed to file Chapter 7 bankruptcy petitions, individuals and couples should always be forced to make an effort to pay off their debts through Chapter 13.
> All works created by independent contractors should be considered works for hire under copyright law.
> The distinction between shipment and destination contracts for the purpose of deciding who will bear the risk of loss should be eliminated in favor of a rule that requires the buyer to always buy insurance for the goods being shipped.
> The UCC should require the same degree of definiteness of terms, especially with respect to price and quantity, as contract law does.
> Courts should always uphold limitation-of-liability clauses, no matter what are the respective bargaining powers of the two parties to the contract.
> The doctrine of commercial impracticability should be abolished.
> As a matter of public policy, personal injury tort claims cannot be assigned. This public policy is wrong and should be changed.
> Kurt receives from Nabil a check that is made out “Pay to the order of Kurt.” Kurt turns it over and writes on the back, “Pay to Adam. [Signed] Kurt.” What type of endorsement is this? What effect does this endorsement have on whether the check is consid
> Many countries have eliminated the Statute of Frauds except for the sale of real estate. The United States should do the same.
> The concept of caveat emptor (“let the buyer beware”) should be applied to all sales, including those of real property.
> After agreeing to an exculpatory clause or purchasing some item, minors often seek to avoid the contracts. Today’s minors are far from naïve and should not be allowed to avoid their contractual obligations.
> Courts should not be able to rule on the adequacy of consideration. A deal is a deal.
> The terms and conditions in click-on agreements are so long and detailed that no one ever reads the agreements. Therefore, the act of clicking “I agree.” is not really an acceptance.
> Companies should be able to make or break employment contracts whenever and however they wish.
> Because of over criminalization, particularly by the federal government, Americans may be breaking the law regularly without knowing it. Should Congress rescind many of the more than four thousand federal crimes now on the books?
> Congress has amended copyright law several times so that copyright holders now have protection for many decades. Was Congress right in extending these copyright time periods? Why or why not?
> All liability suits against tobacco companies for lung cancer should be thrown out of court now and forever.
> Each time a state legislature enacts a law that applies the assumption of risk doctrine to a particular sport, participants in that sport suffer.
> Ben contracts with Amy to fix her roof. Amy writes Ben a check, but Ben never makes the repairs. Carl knows Ben breached the contract but cashes the check anyway. Can Carl become an HDC? Why or why not?
> Executives in large corporations are ultimately rewarded if their companies do well, particularly as evidenced by rising stock prices. Consequently, should we let those who run corporations decide what level of negative side effects of their goods or ser
> Legislation aimed at “protecting people from themselves” concerns the individual as well as the public in general. Protective helmet laws are just one example of such legislation. Should individuals be allowed to engage in unsafe activities if they choos
> Some consumer advocates argue that high attorney contingency fees—sometimes reaching 40 percent—unfairly deprive winning plaintiffs of too much of their awards. Should the government put a cap on contingency fees at, say 20 percent? Why or why not?
> In this age of the Internet, when people communicate via e-mail, texts, tweets, Facebook, and Skype, is the concept of jurisdiction losing its meaning?
> Under the doctrine of stare decisis, courts are obligated to follow the precedents established in their jurisdictions unless there is a compelling reason not to. Should U.S. courts continue to adhere to this common law principle, given that our governmen
> Read through the subsection in this chapter entitled “Decisions and Opinions.” (See How to Read and Understand Case Law.) (a) One group will explain the difference between a concurring opinion and a majority opinion. (b) Another group will outline the di
> Country Fruit Stand orders eighty cases of peaches from Downey Farms. Without stating a reason, Downey delivers thirty cases instead of eighty and delivers at the wrong time. Does Country have the right to reject the shipment? Explain.
> What choices do disgruntled Uber and Lyft drivers have?
> What benefits can delivery by commercial drone provide to consumers?
> Altisource Portfolio Solutions, Inc., is a global corporation that provides real property owners with a variety of services, including property preservation—repairs, debris removal, and so on. Lucas Contracting, Inc., is a small trade contractor in Carro
> Marit worked for Town & Garden, a landscape design service owned by Donald. Marit signed a note payable to Donald to become a co-owner of Town & Garden. The note, which was undated, required installment payments, but Donald never asked for them. Is Marit
> Mark Wooden sent an e-mail to an alderwoman for the city of St. Louis. Attached was a nineteen-minute audio file that compared her to the biblical character Jezebel. The audio said she was a “bitch in the Sixth Ward,” spending too much time with the rich
> Heather Reason over opted to try Internet service from Clear wire Corp. Clear wire sent her a confirmation e-mail and a modem. When Reason over plugged in the modem, an “I accept terms” box appeared. Without clicking on the box, Reason over quit the page
> Duval Ford, LLC, sold a new Ford F-250 pick-up truck to David Sweat. Before taking delivery, Sweat ordered a lift kit to be installed on the truck by a Duval subcontractor. Sweat also replaced the tires and modified the suspension system to increase the
> Irvin Smith was charged in a Georgia state court with burglary and theft. Before the trial, during the selection of the jury, the state prosecutor asked the prospective jurors whether they knew Smith. No one responded affirmatively. Jurors were chosen an
> Robert Gutkowski, a sports marketing expert, met numerous times with George Steinbrenner, the owner of the New York Yankees, to discuss the Yankees Entertainment and Sports Network (YES). Gutkowski was paid as a consultant. Later, he filed a suit, seekin
> White Plains Coat & Apron Co. is a New York– based linen rental business. Cintas Corp. is a competitor. White Plains had five-year exclusive contracts with some of its customers. As a result of Cintas’s soliciting of business, dozens of White Plains’ cus
> After the fall of the Soviet Union, the new government of Azerbaijan began converting certain state-controlled industries to private ownership. Ownership in these companies could be purchased through a voucher program. Frederic Bourke, Jr., and Viktor Ko
> LG Electronics, Inc., a South Korean company, and nineteen other foreign companies participated in the global market for cathode ray tube (CRT) products. CRTs were integrated as components in consumer goods, including television sets, and were sold for m
> Angelica Westbrook was employed as a collector for Franklin Collection Service, Inc. During a collection call, Westbrook told a debtor that a $15 processing fee was an “interest” charge. This violated company policy. Westbrook was fired. She filed a clai
> Nellie Lumpkin, who suffered from various illnesses, including dementia, was admitted to the Picayune Convalescent Center, a nursing home. Because of her mental condition, her daughter, Beverly McDaniel, filled out the admissions paperwork and signed the
> Sasha owes $600 to Dale, who asks her to sign an instrument for the debt. Consider each of the following alternatives for the wording on that instrument: (a) “I.O.U. $600,” (b) “I promise to pay $600.” (c) An instruction to Sasha’s bank stating, “I wish
> AOL, LLC, mistakenly made public the personal information of 650,000 of its members. The members filed a suit, alleging violations of California law. AOL asked the court to dismiss the suit on the basis of a “forum-selection clause” in its member agreeme
> Michelle Fleshner worked for Pepose Vision Institute (PVI), a surgical practice. She was fired after she provided information to the U.S. Department of Labor about PVI’s overtime pay policy. She sued for wrongful termination, and the jury awarded her $12
> Go to Case Analysis 33.3, M.J. v. Wisan. Read the excerpt and answer the following questions. (a) Issue: What conduct was at the center of the dispute in this case? Who did the plaintiff allege was liable for this conduct? Which of these parties was the
> Scotwood Industries, Inc., sells calcium chloride flake for use in ice melt products. Between July and September 2004, Scotwood delivered thirty-seven shipments of flake to Frank Miller & Sons, Inc. After each delivery, Scotwood billed Miller, which paid
> 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 we
> LO Ventures, LLC, doing business as Reefpoint Brew house in Racine, Wisconsin, contracted with Forman Awnings and Construction, LLC, for the fabrication and installation of an awning system over an outdoor seating area. After the system was complete, Ree
> Kenzie Godfrey, a college student majoring in physics, was a passenger in a taxi when it collided with a car driven by Dawn Altieri. Altieri had originally leased the car from G.E. Capital Auto Lease, Inc. By the time of the accident, she had bought it,
> To display desserts in restaurants, Mario Sclafani ordered refrigeration units from Felix Storch, Inc. Felix faxed a credit application to Sclafani. The application was faxed back with a signature that appeared to be Sclafani’s. Felix delivered the units
> Summerall Electric Co. and other subcontractors were hired by National Church Services, Inc. (NCS), which was the general contractor on a construction project for the Church of God at Southaven. As work progressed, payments from NCS to the subcontractors
> Stella bought a cup of coffee at the Roasted Bean Drive Thru. The coffee had been heated to 190 degrees and consequently had dissolved the inside of the cup. When Stella lifted the lid, the cup collapsed, spilling the contents on her lap. To recover for
> If your company instituted a policy stating stated that employees should “think carefully about ‘friending’ co-workers,” would that policy be lawful? Why or why not?
> Employees meeting around the water cooler or coffee machine have always had the right to discuss work-related matters. Is a social media outlet simply a digital water cooler? Why or why not?
> Consolidated Stores is undergoing a unionization campaign. Prior to the union election, management states that the union is unnecessary to protect workers. Management also provides bonuses and wage increases to the workers during this period. The employe
> AstroStar, Inc., has approximately five hundred shareholders. Its board of directors consists of three members—Eckhart, Dolan, and Macero. At a regular board meeting, the board selects Galiard as president of the corporation by a two-to-one vote, with Ec
> Oxy Corp. is negotiating with Wick Construction Co. for the renovation of Oxy’s corporate headquarters. Wick, the owner of Wick Construction Co., is also one of the five members of Oxy’s board of directors. The contract terms are standard for this type o
> Oya Paka and two business associates formed a corporation called Paka Corp. for the purpose of selling computer services. Oya, who owned 50 percent of the corporate shares, served as the corporation’s president. Oya wished to obtain a personal loan from
> John, Lesa, and Tabir form a limited liability company. John contributes 60 percent of the capital, and Lesa and Tabir each contribute 20 percent. Nothing is decided about how profits will be divided. John assumes that he will be entitled to 60 percent o
> Bateson Corp. is considering entering into contracts with two organizations. One is a joint stock company that distributes home products east of the Mississippi River. The other is a business trust formed by a number of sole proprietors who are sellers o
> While single, James made out a will naming his mother, Carol, as sole beneficiary. Later, James married Lisa. (a) If James died while married to Lisa without changing his will, would the estate go to his mother, Carol? Explain. (b) Assume that James made
> Sapata has an ordinary life insurance policy on her life and a fire insurance policy on her house. Both policies have been in force for a number of years. Sapata’s life insurance names her son, Rory, as beneficiary. Sapata has specifically removed her ri
> Café Rojo, Ltd., an Ecuadoran firm, agrees to sell coffee beans to Dark Roast Coffee Company, a U.S. firm. Dark Roast accepts the beans but refuses to pay. Café Rojo sues Dark Roast in an Ecuadoran court and is awarded damages, but Dark Roast’s assets ar
> Assume that a statute in your state requires that all civil lawsuits involving damages of less than $50,000 be arbitrated. Such a case can be tried in court only if a party is dissatisfied with the arbitrator’s decision. The statute also provides that if
> Patrick contracts with an Ajax Insurance Co. agent for a $50,000 ordinary life insurance policy. The application form is filled in to show Patrick’s age as thirty-two. In addition, the application form asks whether Patrick has ever had any heart ailments
> In early 2014, Bennett, Inc., offered a substantial number of new common shares to the public. Harvey Helms had a long-standing interest in Bennett because his grandfather had once been president of the company. On receiving a prospectus prepared and dis
> James owns a three-story building. He leases the ground floor to Juan’s Mexican restaurant. The lease is to run for a five-year period and contains an express covenant of quiet enjoyment. One year later, James leases the top two stories to the Upbeat Clu
> Madison owned a tract of land, but he was not sure that he had full title to the property. When Rafael expressed an interest in buying the land, Madison sold it to Rafael and executed a quitclaim deed. Rafael properly recorded the deed immediately. Sever
> Orlando borrows a gasoline driven lawn edger from his neighbor, Max. Max has not used the lawn edger for two years. Orlando has never owned a lawn edger and is not familiar with its use. Max previously used this edger often, and if he had made a reasonab
> Atka owns a valuable speedboat. She is going on vacation and asks her neighbor, Regina, to store the boat in one stall of Regina’s double garage. Regina consents, and the boat is moved into the garage. Regina, in need of some grocery items for dinner, dr
> Allitron, Inc., and Donovan, Ltd., are interstate competitors selling similar appliances, principally in the states of Illinois, Indiana, Kentucky, and Ohio. Allitron and Donovan agree that Allitron will no longer sell in Indiana and Ohio and that Donova
> Larkin, Inc., retains Howard Patterson to manage its books and prepare its financial statements. Patterson, a certified public accountant, lives in Indiana and practices there. After twenty years, Patterson has become a bit bored with generally accepted
> David Gain was the chief executive officer (CEO) of Forest Media Corp., which became interested in acquiring RS Communications, Inc. To initiate negotiations, Gain met with RS’s CEO, Gill Raz, on Friday, July 12. Two days later, Gain phoned his brother M
> Gary Mendel drew up a will in which he left his favorite car, a 1966 red Ferrari, to his daughter, Roberta. A year prior to his death, Mendel sold the 1966 Ferrari and purchased a 1969 Ferrari. Discuss whether Roberta will inherit the 1969 Ferrari under
> Alyssa owes Don $5,000 and refuses to pay. Don obtains a garnishment order and serves it on Alyssa’s employer. If the employer complies with the order and Alyssa stays on the job, is one order enough to garnish all of Alyssa’s wages for each pay period u
> Jorge’s Appliance Corp. was a new retail seller of appliances in Sunrise City. Because of its innovative sales techniques and financing, Jorge’s attracted many customers. As a result, the appliance department of No-Glow Department Store, a large chain st
> Moonbay is a homebuilding corporation that primarily develops retirement communities. Farmtex owns a number of feedlots in Sunny Valley. Moonbay purchases 20,000 acres of farmland in the same area and begins building and selling homes on this acreage. In
> Andrew, a resident of California, received an advertising circular in the U.S. mail announcing a new line of regional cookbooks distributed by the Every-Kind Cookbook Co. Andrew didn’t want any books and threw the circular away. Two days later, Andrew re
> Assume that the Food and Drug Administration (FDA), using proper procedures, adopts a rule describing its future investigations. This new rule covers all future circumstances in which the FDA wants to regulate food additives. Under the new rule, the FDA
> For decades, the Federal Trade Commission (FTC) resolved fair trade and advertising disputes through individual adjudications. In the 1960s, the FTC began promulgating rules that defined fair and unfair trade practices. In cases involving violations of t
> Huron Corp. has 300,000 common shares outstanding. The owners of these outstanding shares live in several different states. Huron has decided to split the 300,000 shares two for one. Will Huron Corp. have to file a registration statement and prospectus o
> Estrada Hermanos, Inc., a corporation incorporated and doing business in Florida, decides to sell $1 million worth of its common stock to the public. The stock will be sold only within the state of Florida. José Estrada, the chair of the board, says the
> Alitech Corp. is a small midwestern business that owns a valuable patent. Alitech has approximately a thousand shareholders with 100,000 authorized and outstanding shares. Block Corp. would like to have the use of the patent, but Alitech refuses to give
> Paradise Pools, Inc. (PPI) entered into a contract with Vittorio, LLP, to build a pool as part of a hotel being developed by Takahashi Development. PPI built the pool, but Vittorio, the general contractor, defaulted on other parts of the project. Takahas
> Alir owns 10,000 shares of Ajax Corp. Her shares represent a 10 percent ownership interest in Ajax. Zeta Corp. is interested in acquiring Ajax in a merger, and the board of directors of each corporation has approved the merger. The shareholders of Zeta h
> After graduating from college, Tina works briefly as a salesperson before filing for bankruptcy. Tina’s petition states that her only debts are student loans, taxes accruing within the last year, and a claim against her based on her misuse of customers’
> Adia owns a house and has an elderly third cousin living with her. Adia decides she needs fire insurance on the house and a life insurance policy on her third cousin to cover funeral and other expenses that will result from her cousin’s death. Adia takes
> Lehor collects antique cars. He contracts to purchase spare parts for a 1938 engine from Beem. These parts are not made anymore and are scarce. To obtain the contract with Beem, Lehor agrees to pay 50 percent of the purchase price in advance. Lehor sends
> Moore contracted in writing to sell her 2017 Hyundai Santa Fe to Hammer for $18,500. Moore agreed to deliver the car on Wednesday, and Hammer promised to pay the $18,500 on the following Friday. On Tuesday, Hammer informed Moore that he would not be buyi
> Moon, a farmer, needs to install a two-thousand-pound piece of equipment in his barn. This will require lifting the equipment thirty feet up into a hayloft. Moon goes to Davidson Hardware and tells Davidson that he needs some heavy-duty rope to be used o
> Taconic Plastics, Ltd., is a manufacturer incorporated in Ireland with its principal place of business in New York. Taconic enters into a contract with a German firm, Werner Voss Architects and Engineers, acting as an agent for the government of Saudi Ar
> The U.S. pineapple industry alleged that producers of canned pineapple from the Philippines were selling their canned pineapple in the United States for less than its fair market value (dumping). In addition to canned pineapple, the Philippine producers
> Macrotech, Inc., develops an innovative computer chip and obtains a patent on it. The firm markets the chip under the trademarked brand name “Flash.” Macrotech wants to sell the chip to Nitron, Ltd., in Pacifica, a foreign country. Macrotech is concerned
> Tandy purchased a washing machine from Marshall Appliances. The sales contract included a provision explicitly disclaiming all express or implied warranties, including the implied warranty of merchantability. The disclaimer was printed in the same size a
> Adam’s checks are imprinted with the words “Pay to the order of” followed by a blank. Adam fills in an amount on one of the checks and signs it, but he does not write anything in the blank following the phrase “Pay to the order of.” Adam gives this check
> Edward owned a retail sporting goods shop. A new ski resort was being constructed in his area, and to take advantage of the potential business, Edward decided to expand his operations. He borrowed a large sum from his bank, which took a security interest
> Nero needs $500 to buy textbooks and other supplies. Olivia agrees to loan Nero $500, accepting Nero’s computer as collateral. They put their agreement in writing. How can Olivia let other creditors know of her interest in the computer?
> Peter hires Alice as an agent to sell a piece of property he owns. The price is to be at least $30,000. Alice discovers that the fair market value of Peter’s property is actually at least $45,000 and could be higher because a shopping mall is going to be
> Nabil is the owner of a relatively old home valued at $105,000. The home’s electrical system is failing, and the wiring needs to be replaced. Nabil contracts with Kandhari Electrical to replace the electrical system. Kandhari performs the repairs, and on
