Langstraat, age seventeen, owned a motorcycle that he insured against liability with Midwest Mutual Insurance Company. He signed a notice of rejection attached to the policy indicating that he did not desire to purchase uninsured motorists’ coverage from the insurance company. Later he was involved in an accident with another motorcycle owned and operated by a party who was uninsured. Langstraat now seeks to recover from the insurance company, asserting that his rejection was not valid because he is a minor. Can Langstraat recover from Midwest? Explain.
> (a) Ann owed $2,500 to Barry for services Barry rendered to Ann. The debt was due June 30, 2014. In March 2015, the debt was still unpaid. Barry was in urgent need of ready cash and told Ann that if she would pay $1,500 on the debt at once, Barry would r
> Ben Collins was a full professor with tenure at Wisconsin State University in 2007. In March 2007, 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
> Tender Loving Care, Inc. (TLC), a corporation owned and operated by Virginia Bryant, went out of business. The Secretary of State canceled its corporate charter, and a check drawn on TLC’s account made out to the Department of Human Resources (DHR) to pa
> The plaintiff, Brenner, entered into a contract with the defendant, Little Red School House, Ltd., which stated that in return for a nonrefundable tuition of $1,080, Brenner’s son could attend the defendant’s school for a year. When Brenner’s ex-wife ref
> Red Owl Stores told the Hoffman family that upon the payment of approximately $518,000 a grocery store franchise would be built for them in a new location. On the advice of Red Owl, the Hoffmans bought a small grocery store in their hometown in order to
> PLM, Inc., entered into an oral agreement with Quaintance Associates, an executive “headhunter” service, for the recruitment of qualified candidates to be employed by PLM. As agreed, PLM’s obligation to pay Quaintance did not depend on PLM actually hirin
> Baker entered into an oral agreement with Healey, the State distributor of Ballantine & Sons liquor products, that Ballantine would supply Baker with its products on demand and that Baker would have the exclusive agency for Ballantine within a certain ar
> Mrs. Laval was a patient of Dr. Leopold, a practicing psychiatrist. Dr. Leopold shared an office with two associates practicing in the same field. No receptionist or other employee attended the office. Mrs. Laval placed her coat in the clothes closet in
> Taylor assaulted his wife, who then took refuge in Ms. Harrington’s house. The next day, Mr. Taylor entered the house and began another assault on his wife. Taylor’s wife knocked him down and, while he was lying on the floor, attempted to cut his head op
> The parties entered into an oral contract in June under which the plaintiff agreed to construct a building for the defendant on a time and materials basis, at a maximum cost of $56,146, plus sales tax and extras ordered by the defendant. When the buildin
> In consideration of $1,800 paid to him by Joyce, Hill gave Joyce a written option to purchase his house for $180,000 on or before April 1. Prior to April 1, Hill verbally agreed to extend the option until July 1. On May 18, Hill, known to Joyce, sold the
> Carl, a salesperson for Smith, comes to Benson’s home and sells him a complete set of “gourmet cooking utensils” that are worth approximately $300. Benson, an eighty-year-old man who lives alone in a one-room efficiency apartment, signs a contract to buy
> On July 5, 2014, Bill and George entered into a bet on the outcome of the 2014 congressional election. On January 28, 2015, Bill, who bet on the winner, approached George, seeking to collect the $3,000 George had wagered. George paid Bill the wager but n
> Charles Leigh, engaged in the industrial laundry business in Central City, employed Tim Close, previously employed in the home laundry business, as a route salesperson. Leigh rents linens and industrial uniforms to commercial customers; the soiled linens
> The Dear Corporation was engaged in the business of making and selling harvesting machines. It sold everything pertaining to its business to the HI Company, agreeing “not again to go into the manufacture of harvesting machines anywhere in the United Stat
> Anthony promises to pay McCarthy $100,000 if McCarthy reveals to the public that Washington is a Communist. Washington is not a Communist and never has been. McCarthy successfully persuades the media to report that Washington is a Communist and now seeks
> Michael is interested in promoting the passage of a bill in the State legislature. He agrees with Christy, an attorney, to pay Christy for her services in drawing the required bill, procuring its introduction in the legislature, and making an argument fo
> 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 furnish
> Sandra and Thomas McGuire entered into a purchase-and-sale agreement for “Becca’s Boutique” with Pascal and Rebecca Tursi. The agreement provided that the McGuires would buy the store for $75,000, with a down payment of $10,000 and the balance of $65,000
> Henrioulle, an unemployed widower with two children, received public assistance in the form of a rent subsidy. He entered into an apartment lease agreement with Marin Ventures that provided “INDEMNIFICATION: Owner shall not be liable for any damage or in
> Wilkins, a Texas resident licensed by that state as a certified public accountant, rendered service in his professional capacity in Louisiana to Coverton Cosmetics Company. He was not registered as a certified public accountant in Louisiana. His service
> Richard Brobston was hired by Insulation Corporation of America (ICA) in 2005. Initially, he was hired as a territory sales manager but was promoted to national account manager in 2009 and to general manager in 2013. In 2015, ICA was planning to acquire
> Michelle Marvin and actor Lee Marvin began living together, holding themselves out to the general public as man and wife without actually being married. The two orally agreed that while they lived together they would share equally any and all property an
> Robert McCart owned and operated an H&R Block tax preparation franchise. When Robert became a district manager for H&R Block, he was not allowed to continue operating a franchise. So, in accordance with company policy, he signed over his franchise to his
> In February, Brady, a general contractor, signed a written contract with the Fulghums to build for them a house in North Carolina. The contract price of the house was $206,850, and construction was to begin in March of that year. Neither during the contr
> Albert Bennett, an amateur cyclist, participated in a bicycle race conducted by the United States Cycling Federation. During the race, Bennett was hit by an automobile. He claims that employees of the Federation improperly allowed the car onto the course
> Carolyn Murphy, a welfare recipient with very limited education and with four minor children, responded to an advertisement that offered the opportunity to purchase televisions without a deposit or credit history. She entered into a rent-to-own contract
> Tovar applied for the position of resident physician in Paxton Community Memorial Hospital. The hospital examined his background and licensing and assured him that he was qualified for the position. Relying upon the hospital’s promise of permanent employ
> Merrill Lynch employed Post and Maney as account executives. Both men elected to be paid a salary and to participate in the firm’s pension and profit-sharing plans rather than take a straight commission. Thirteen years later, Merrill Lynch terminated the
> Certain partners of the Finley Kumble law firm signed promissory notes that secured loans made to the law firm by the National Bank of Washington (NBW). When Finley Kumble subsequently declared bankruptcy and defaulted on the loans, NBW filed suit to col
> Emily was a Java programmer employed with Sun Microsystems in Palo Alto, California. Upon beginning employment, Emily signed a contract which included a noncompetition clause that prevented her from taking another Java programming position with any of fi
> Adrian rents a bicycle from Barbara. The bicycle rental contract Adrian signed provides that Barbara is not liable for any injury to the renter caused by any defect in the bicycle or the negligence of Barbara. Injured when she is involved in an accident
> Johnson and Wilson were the principal shareholders in Matthew Corporation, located in the city of Jonesville, Wisconsin. This corporation was engaged in the business of manufacturing paper novelties, which were sold over a wide area in the Midwest. The c
> Ira, who in 2012 had been found not guilty of a criminal offense because of insanity, was released from a hospital for the criminally insane during the summer of 2013 and since that time has been a reputable and well-respected citizen and businessperson.
> Anita sold and delivered an automobile to Marvin, a minor. Marvin, during his minority, returned the automobile to Anita, saying that he disaffirmed the sale. Anita accepted the automobile and said she would return the purchase price to Marvin the next d
> Rebecca entered into a written contract to sell certain real estate to Mary, a minor, for $80,000, payable $4,000 on the execution of the contract and $800 on the first day of each month thereafter until paid. Mary paid the $4,000 down payment and eight
> On October 1, George Jones entered into a contract with Johnson Motor Company, a dealer in automobiles, to buy a used car for $10,600. He paid $1,100 down and, under the agreement, was to make monthly payments thereafter of $325 each. Although Jones was
> On May 7, Roy, a minor, a resident of Smithton, purchased an automobile from Royal Motors, Inc., for $12,750 in cash. On the same day, he bought a motor scooter from Marks, also a minor, for $1,750 and paid him in full. On June 5, two days before attaini
> Jones, a minor, owned a 2010 automobile. She traded it to Stone for a 2011 car. Jones went on a three-week trip and found that the 2011 car was not as good as the 2010 car. She asked Stone to return the 2010 car but was told that it had been sold to Tate
> Explain the outcome of each of the following transactions: (a) On March 20, Andy Small became seventeen years old, but he appeared to be at least eighteen (the age of majority).On April 1, he moved into a rooming house in Chicago where he orally agreed
> Turman executed a deed of trust note for $107,500 payable to Ward’s Home Improvement, Inc. (Ward’s). The note was in consideration of a contract for Ward’s to build a house on Turman’s property. On the same day, Ward’s executed an assignment of the note
> Rogers was a nineteen-year-old (the age of majority then being twenty-one) high school graduate pursuing a civil engineering degree when he learned that his wife was expecting a child. As a result, he quit school and sought assistance from Gastonia Perso
> On April 29, 2013, Kirsten Fletcher and John E. Marshall III jointly signed a lease to rent an apartment for the term beginning on July 1, 2013, and ending on June 30, 2014, for a monthly rent of $525 per month. At the time the lease was signed, Marshall
> Halbman, a minor, purchased a 2010 Mercury from Lemke for $11,250. Under the terms of the contract, Halbman would pay $1,000 down and the balance in $250 weekly installments. Halbman purchased the car as a way to get around and have some fun. Upon making
> Carol White ordered a $225 pair of contact lenses through an optometrist. White, an emancipated minor, paid $100 by check and agreed to pay the remaining $125 at a later time. The doctor ordered the lenses, incurring a debt of $110. After the lenses were
> Haydocy Pontiac sold Jennifer Lee an automobile for $7,500, of which $6,750 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 then, and
> A fifteen-year-old minor was employed by Midway Toyota, Inc. On August 18, 2013, the minor, while engaged in lifting heavy objects, injured his lower back. In October 2013he underwent surgery to remove a herniated disk. Midway Toyota paid him the appropr
> L. D. Robertson bought a pickup truck from King and Julian, who did business as the Julian Pontiac Company. At the time of purchase, Robertson was seventeen years old, living at home with his parents, and driving his father’s truck around the county to d
> G.A.S. married his wife, S.I.S., on January 19, 1997. He began to have mental health problems in 2010; that year, he was hospitalized at the Delaware State Hospital for eight weeks. Similar illnesses occurred in 2008 and in the early part of 2014, with G
> Mark, a minor, operates a one-man automobile repair shop. Rose, having heard of Mark’s good work on other cars, takes her car to Mark’s shop for a thorough engine overhaul. Mark, while overhauling Rose’s engine, carelessly fits an unsuitable piston ring
> Stanley A. Erb became a vice president of the Shearson Lehman Brothers, Inc. branch office in Provo, Utah. That year, Erb was contacted by McKay Matthews, the controller for the Orem, Utah–based WordPerfect Corporation and its sister corporation, Utah So
> Ann bought a car from the Used Car Agency (Used) under a written contract. She purchased the car in reliance on Used’s agent’s oral representations that it had never been in a wreck and could be driven at least two thousand miles without adding oil. Ther
> Rachel leased an apartment to Bertha for a one-year term beginning May 1, at $800 a month, “payable in advance on the first day of each and every month of said term.” At the time the lease was signed, Bertha told Rachel that she received her salary on th
> Blair orally promises Clay to sell him five crops of potatoes to be grown on Blackacre, a farm in Idaho, and Clay promises to pay a stated price for them on delivery. Is the contract enforceable?
> On March 1, Lucas called Craig on the telephone and offered to pay him $90,000 for a house and lot that Craig owned. Craig accepted the offer immediately on the telephone. Later in the same day, Lucas told Annabelle that if she would marry him, he would
> Moriarity and Holmes enter into an oral contract by which Moriarity promises to sell and Holmes promises to buy Blackacre for $10,000. Moriarity repudiates the contract by writing a letter to Holmes in which she states accurately the terms of the bargain
> Ames, Bell, Cain, and Dole each orally ordered LCD (liquid crystal display) television sets from Marvel Electronics Company, which accepted the orders. Ames’s set was to be specially designed and encased in an ebony cabinet. Bell, Cain, and Dole ordered
> Rowe was admitted to the hospital suffering from a critical illness. He was given emergency treatment and later underwent surgery. On at least four occasions, Rowe’s two sons discussed with the hospital the payment for services to be rendered by the hosp
> Mary Iacono and Carolyn Lyons had been friends for almost thirty-five years. Mary suffers from advanced rheumatoid arthritis and is in a wheelchair. Carolyn invited Mary to join her on a trip to Las Vegas, Nevada, for which Carolyn paid. Mary contended t
> Jesse Carter and Jesse Thomas had an auto accident with a driver insured by Allstate. Carter and Thomas hired an attorney Joseph Onwuteaka to represent them. Mr. Onwuteaka sent a demand letter for settlement of the plaintiffs’ claims to Allstate’s adjust
> Plaintiffs leased commercial space from the defendant to open a florist shop. After the lease was executed, the plaintiffs learned that they could not place a freestanding sign along the highway to advertise their business because the Deschutes County Co
> L&M Home Health Corporation (L&M) had a checking account with Wells Fargo Bank. L&M engaged Gentner and Company, Inc. (Gentner) to provide consulting services, and paid Gentner for services rendered with a check drawn on its Wells Fargo account in the am
> Thomson Printing Company is a buyer and seller of used machinery. On April 10, the president of the company, James Thomson, went to the surplus machinery department of B.F. Goodrich Company in Akron, Ohio, to examine some used equipment that was for sale
> On July 5, 2003, Richard Price signed a written employment contract as a new salesman with the Mercury Supply Company. The contract was of indefinite duration and could be terminated by either party for any reason upon fifteen days’ notice. Between 2003a
> The defendant, Shane Quadri, contacted Don Hoffman, an employee of defendant Al J. Hoffman & Co., 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, a plaintiff in
> Enrique Gittes was a financial consultant for NCC, an English holding company that invested capital in other businesses in return for a stake in those businesses. One of NCC’s investments was a substantial holding in Simplicity Pattern Company. Gittes’s
> 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
> Butler Brothers Building Company sublet all of the work in a highway construction contract to Ganley Brothers, Inc. Soon thereafter, Ganley brought this action against Butler for fraud in the inducement of the contract. The contract, however, provided: “
> Green was the owner of a large department store. On Wednesday, January 26, he talked to Smith and said, “I will hire you to act as sales manager in my store for one year at a salary of $48,000. You are to begin work next Monday.” Smith accepted and start
> When Mr. McClam died, he left the family farm, heavily mortgaged, to his wife and children. To save the farm from foreclosure, Mrs. McClam planned to use insurance proceeds and her savings to pay off the debts. She was unwilling to do so, however, unless
> 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
> Louie E. Brown worked for the Phelps Dodge Corporation under an oral contract for approximately twenty-three years. In 2011, he was suspended from work for unauthorized possession of company property. In 2012, Phelps Dodge fired Brown after discovering t
> Stephens delivered 184 bushels of corn to Aubrey, for which he was to receive $478.23. Aubrey issued a check with $478.23 typewritten in numbers, and on the line customarily used to express the amount in words appeared “$100478 and 23 cts” imprinted in r
> Lavinia Lane received a check from Wilmore Enterprises, Inc., drawn on the Citizens Bank of Erehwon, in the sum of $10,000. Mrs. Lane indorsed the check “Mrs. Lavinia Lane for deposit only, Account of Lavinia Lane” and placed it in a “Bank by Mail” envel
> Presti claims that he reached an oral agreement with Wilson by telephone in October 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 that f
> Yokel, a grower of soybeans, had sold soybeans to Campbell Grain and Seed Company and other grain companies in the past. Campbell entered into an oral contract with Yokel to purchase soybeans from him. Promptly after entering into the oral contract, Camp
> Dean was hired on February 12 as a sales manager of the Co-op Dairy for a minimum period of one year with the dairy agreeing to pay his moving expenses. By February 26, Dean had signed a lease, moved his family from Oklahoma to Arizona, and reported for
> Ethel Greenberg acquired the ownership of the Carlyle Hotel on Miami Beach but 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 produ
> Halsey, a widower, was living without family or housekeeper in his house in Howell, New York. Burns and his wife claim that Halsey invited them to give up their house and business in Andover, New York, to live in his house and care for him. In return, th
> In a contract drawn up by Goldberg Company, it agreed to sell and Edwards Contracting Company agreed to buy wood shingles at $650. After the shingles were delivered and used, Goldberg Company billed Edwards Company at $650 per bunch of nine hundred shing
> Rafferty was the principal shareholder in Continental Corporation, and, as a result, he received the lion’s share of Continental Corporation’s dividends. Continental Corporation was anxious to close an important deal for iron ore products to use in its b
> Lisa hired Jay in the spring, as she had for many years, to set out in beds the flowers Lisa had grown in her greenhouses during the winter. The work was to be done in Lisa’s absence for $300. Jay became ill the day after Lisa departed and requested his
> Rebecca owes Lewis $2,500 due on November 1. On August 15, Lewis assigns this right for value received to Julia, who gives notice on September 10 of the assignment to Rebecca. On August 25, Lewis assigns the same right to Wayne, who in good faith gives v
> Grant and Debbie enter into a contract binding Grant personally to do some delicate cabinetwork. Grant assigns his rights and delegates performance of his duties to Clarence. (a) On being informed of this, Debbie agrees with Clarence, in consideration of
> Walter Duester purchased a John Deere combine from St. Paul Equipment. John Deere Co. was the lender and secured party under the agreement. The combine was pledged as collateral. Duester defaulted on his debt, and the manager of St. Paul, Hansen, was ins
> Brown enters into a written contract with Ideal Insurance Company under which, in consideration of Brown’s payment of her premiums, the insurance company promises to pay Williams College the face amount of the policy, $100,000, on Brown’s death. Brown pa
> Julia contracts to sell to Hayden, an ice cream manufacturer, the amount of ice Hayden may need in his business for the ensuing three years to the extent of not more than 250 tons a week at a stated price per ton. Hayden makes a corresponding promise to
> Georgia purchased an option on Greenacre from Pamela for $10,000. The option contract contained a provision by which Georgia promised not to assign the option contract without Pamela’s permission. Georgia, without Pamela’s permission, assigned the contra
> Anne, who was unemployed, registered with the Speedy Employment Agency. A contract was then made under which Anne, in consideration of such position as the agency would obtain for her, agreed to pay the agency one half of her first month’s salary. The co
> Pauline Brown was shot and seriously injured by an unknown assailant in the parking lot of National Supermarkets. Pauline and George Brown brought a negligence action against National, Sentry Security Agency, and T. G. Watkins, a security guard and Sentr
> The Smooth Paving Company entered into a paving contract with the city of Chicago. The contract contained the clause “contractor shall be liable for all damages to buildings resulting from the work performed.” In the process of construction, one of the b
> While under contract to play professional basketball for the Philadelphia 76ers, Billy Cunningham, an outstanding player, negotiated a three-year contract with the Carolina Cougars, another professional basketball team. The contract with the Cougars was
> McDonald's has an undeviating policy of retaining the absolute control over who receives new franchises. McDonald’s granted to Copeland a franchise in Omaha, Nebraska. In a separate letter, it also granted him a right of first refusal for future franchis
> Rensselaer Water Company contracted with the city of Rensselaer to provide water to the city for use in homes, public buildings, industry, and fire hydrants. During the term of the contract a building caught fire. The fire spread to a nearby warehouse an
> Linda King was found liable to Charlotte Clement as the result of an automobile accident. King, who was insolvent at the time, declared bankruptcy and directed her attorney, Prestwich, to list Clement as an unsecured creditor. The attorney failed to carr
> Eldon’s Super Fresh Stores, Inc., is a corporation engaged in the retail grocery business. William Drexler was the attorney for and the corporate secretary of Eldon’s and was also the personal attorney of Eldon Prinzing, the corporation’s president and s
> In March, Adrian Saylor sold government bonds owned exclusively by him and with $6,450 of the proceeds opened a savings account in a bank in the name of “Mr. or Mrs. Adrian M. Saylor.” In June of the following year, Saylor deposited the additional sum of
> The International Association of Machinists (the union) was the bargaining agent for the employees of Powder Power Tool Corporation. On August 24, the union and the corporation executed a collective bargaining agreement providing for retroactively increa
> Tompkins-Beckwith, as the contractor on a construction project, entered into a subcontract with a division of Air Metal Industries. Air Metal procured American Fire and Casualty Company to be surety on certain bonds in connection with contracts it was pe
> Northwest Airlines leased space in the terminal building at the Portland Airport from the Port of Portland. Crosetti entered into a contract with the Port to furnish janitorial services for the building, which required Crosetti to keep the floor clean, t
