Marjan International Corp. sells handmade oriental rugs. V. K. Putman, Inc., is a Montana trucking company. Marjan delivered valuable rugs to Putman for shipment from New York City to Tacoma, Washington. Unfortunately, there were several delays in transit. The truck driver encountered snow storms and closed roads. His truck also overheated and required repairs in a garage. Before the driver resumed the trip, he stopped to pick up and load other goods. When the truck finally arrived in Tacoma, two bales of rugs were missing. Marjan sued, on the grounds that Putman was a common carrier, but Putman claimed it was a contract carrier. What difference does it make whether Putman was a common carrier or a contract carrier, and how is that determined?
> Mary Price went for a consultation about a surgical procedure to remove abdominal fat. When Robert Britton met with her, he wore a nametag that identified him as a doctor, and was addressed as “doctor” by the nurse. Britton then examined Price, touching
> Stephen Muka owned U.S. Robotics. He hired his brother Chris to work in the company. His letter promised Chris $1 million worth of Robotics stock at the end of one year, “provided you work reasonably hard & smart at things in the next year.” (We should a
> Commercial Union Insurance Co. (CU) insured Redux, Ltd. The contract made CU liable for fire damage, but stated that the insurer would not pay for harm caused by criminal acts of any Redux employees. Fire destroyed Redux’s property. CU claimed that the “
> Ken Ward was an Illinois farmer who worked land owned by his father-in-law, Frank Ruda. To finance his operation, he frequently borrowed money from Watseka First National Bank, paying back the loans with farming profits. But Ward fell deeper and deeper i
> Kuhn Farm Machinery, a European company, signed an agreement with Scottsdale Plaza Resort, of Arizona, to use the resort for its North American dealers’ convention during March 1991. Kuhn agreed to rent 190 guest rooms and spend several thousand dollars
> Loehmann’s clothing stores, a nationwide chain with headquarters in New York, was the anchor tenant in the Lincoln View Plaza Shopping Center in Phoenix, Arizona, with a 20-year lease from the landlord, Foundation Development, beginning in 1978. Loehmann
> A disc jockey named Z-Trip made a remix of a Beastie Boys song with the hip-hop group’s permission. Monster Energy (ME), an energy drink company, wanted to use the remix as part of a video promotion. Monster Energy sent an email asking Z-Trip to approve
> Mast Industries and Bazak International were two textile firms. Mast orally offered to sell certain textiles to Bazak for $103,000. Mast promised to send documents confirming the agreement, but never did. Finally, Bazak sent a memorandum to Mast confirmi
> Jacob Deutsch owned commercial property. He orally agreed to rent it for six years to Budget Rent-A-Car. Budget took possession, began paying monthly rent, and over a period of several months expended about $6,000 in upgrading the property. Deutsch was a
> Burglar Bob breaks into Vince Victim’s house. Bob steals a flat screen TV and laptop and does a significant amount of damage to the property before he leaves. Fortunately, Vince has a state of the art security system. It captures excellent images of B
> The federal Defense of Marriage Act (DOMA) defined marriage as a union between a man and a woman. As a result, same-sex couples were not eligible for the federal marriage benefits given to heterosexual couples. Edith Windsor and Thea Spyer had been tog
> Carter was an employee of the Sheriff’s office in Hampton, Virginia. When his boss, Sheriff Roberts, was up for reelection against Adams, Carter “liked” the Adams campaign’s Facebook page. Upon winning reelection, Sheriff Roberts fired Carter, who then
> Suppose two people are living together: the suspect and a tenant. If the tenant consents to a police search of the premises, then the police are not required to first obtain a warrant. What if the suspect and the tenant disagree, with the tenant granting
> David Lucas paid $975,000 for two residential lots on the Isle of Palms near Charleston, South Carolina. He intended to build houses on them. Two years later the South Carolina legislature passed a statute that prohibited building seaward of a certain l
> In the landmark 1965 case of Griswold v. Connecticut, the Supreme Court examined a Connecticut statute that made it a crime for any person to use contraception. The majority declared the law an unconstitutional violation of the right of privacy. Justic
> In 1996, California legalized the medical use of marijuana, even though it was still illegal under federal law. Californians Angel Raich and Diane Monson used homegrown medical marijuana. When federal agents destroyed their plants, Monson and Raich sue
> The Senate recently released a report on wrongdoing at JPMorgan Chase & Co. It found that bank executives lied to investors and the public. Also, traders, with the knowledge of top management, changed risk limits to facilitate more trading and then vio
> I oversee the internal audit function at my company. Although we always use a Big Four accounting firm, we have no loyalty to any one particular firm. We hold periodic bid competitions to get the lowest price we can. At the moment, we are using Firm A
> Twin Creeks Entertainment signed a deal with U.S. JVC Corp. in which JVC would buy 60,000 feature film videocassettes from Twin Creeks over a three-year period. JVC intended to distribute the cassettes nationwide. Relying on its deal with JVC, Twin Cre
> A century and a half ago an English judge stated: “All painters do not paint portraits like Sir Joshua Reynolds, nor landscapes like Claude Lorraine, nor do all writers write dramas like Shakespeare or fiction like Dickens. Rare genius and extraordinar
> Nationwide Discount Furniture hired Rampart Security to install an alarm in its warehouse. A fire would set off an alarm in Rampart’s office, and the security company was then supposed to notify Nationwide immediately. A fire did break out, but Rampart
> Intercontinental Metals Corp. (IMC) contracted with the accounting firm of Cherry, Bekaert & Holland to perform an audit. Cherry issued its opinion about IMC, giving all copies of its report directly to the company. IMC later permitted Dun & Bradstreet
> Judith and John Brooks hired Wayne Hayes to build a house. The contract required Hayes to “provide all necessary labor and materials and perform all work of every nature whatsoever to be done in the erection of the residence.” Hayes hired subcontractor
> David Ricupero suspected his wife Polly of having an affair, so he taped her phone conversations and, based on what he heard, sued for divorce. David’s lawyer, William Wuliger, had the recorded conversations transcribed for use at trial. The parties set
> Darin bought his fiancée Sarah a 3-carat diamond ring for $43,121 from Mandarin Gems. Later, Mandarin supplied Erstad with a written appraisal valuing the engagement ring at $45,500. Years later, the couple divorced and Sarah kept the ring. When she ha
> Police arrested Hank on a warrant issued in a neighboring county. When they searched him, the police found drugs and a gun. Only later did the police discover that when they had used the warrant, it was not valid because it had been recalled months earli
> Woodson Walker and Associates leased computer equipment from Park Ryan Leasing. The lease said nothing about assignment. Park Ryan then assigned the lease to TCB as security for a loan. Park Ryan defaulted on its loan, and Walker failed to make several
> Richard Griffin and three other men owned a grain company called Bearhouse, Inc., which needed to borrow money. First National Bank was willing to loan $490,000, but insisted that the four men sign personal guaranties on the loan, committing themselves t
> Lonnie Hippen moved to Long Island, Kansas, to work in an insurance company owned by Griffiths. After he moved there, Griffiths offered to sell Hippen a house he owned, and Hippen agreed in writing to buy it. He did buy the house and moved in, but two ye
> After filing for bankruptcy, Yvonne Brown sought permission of the court to reaffirm a $6,000 debt to her credit union. The debt was unsecured and she was under no obligation to pay it. The credit union had published the following notice in its newslette
> When Deana Byers married Steven Byers, she was pregnant with another man’s child. Shortly after the marriage Deana gave birth. The marriage lasted only two months, and the couple separated. In divorce proceedings, Deana sought child support. She claimed
> Because of his success in a big case, a lawyer named Melbourne promised his assistant, Barbara . a large bonus. After the case settled, Melbourne met with Barbara to discuss when and how much he would pay her. In the conversation that she secretly record
> Landlord owned a clothing store and agreed in writing to lease the store’s basement to another retailer. The written lease, which both parties signed, (1) described the premises exactly, (2) identified the parties, and (3) stated the monthly rent clearly
> When Steven Simkin and Laura Blank divorced in 2006, they agreed to split their $13.5 million fortune evenly. Two years later, it became evident that Simkin had a problem: his half was invested in Bernard Madoff’s giant Ponzi scheme and he lost million
> Paula was alone, pregnant, and confused. She needed help and support, which she found at Methodist Mission Home of Texas. In the days following her child’s birth, representatives of Methodist Mission forcefully told her that she had no moral or legal r
> Ball-Mart, a baseball card store, had a 1968 Nolan Ryan rookie card in almost perfect condition for sale. Any baseball collector would have known that the card was worth at least $1,000; the published monthly price guide listed its market value at $1,200
> A group of medical schools conducted a study on very premature babies—those born between 24 and 27 weeks of gestation (instead of the normal 40 weeks). These children face a high risk of blindness and death. The goal of the study was to determine which
> Suzy Tomlinson, 74, met a tragic end – she drowned, fully-clothed, in her bathtub after a night out partying with 36 year old J.B. Carlson. He had taken her home at 1 a.m. and was the last person to see her alive. The two were not only party buddies, Suz
> If your grandparents were to die leaving a large estate and all of their children were also dead, would you prefer a per stirpes or per capita distribution?
> Linda and Eddie had two children before they were divorced. Under the terms of their divorce, Eddie became the owner of their house. When he died suddenly, their children inherited the property. Linda moved into the house with the children and began payi
> When William Cook died, his will left all of his property to his brother Eugene. There were two other pieces of paper in the safe with the will. One said that that his stamp collection should go to his housekeeper, Bertha. This document was signed by two
> When Gregg died, his will left his money equally to his two children, Max and Alison, whom he explicitly named. Max had died a few years earlier, leaving behind a widow and four children. Who will get Gregg’s money?
> Clyde received a letter from his automobile insurance company notifying him that it would not renew his policy that was set to expire on February 28. Clyde did not obtain another policy, and, in a burst of astonishing bad luck, on March 1, at 2:30 a.m.,
> Shawn was caught stealing letters from mailboxes. After pleading guilty, he was sentenced to two months’ in prison and three years’ supervised release. One of the supervised release conditions required him to stand outside a post office for eight hours w
> Dannie Harvey sued her employer, O. R. Whitaker, for sexual harassment, discrimination, and defamation. Whitaker counter-claimed for libel and slander, requesting $1 million in punitive damages. Both Whitaker and Harvey were insured by Allstate, under id
> Dan checks into a nice beachfront hotel. He does not want to expose his $10,000 Patek Philipe wristwatch to saltwater, and so he leaves it in the dresser in the room. When he returns from the beach, the watch is gone. He is shocked to learn that the h
> Ronald Armstead worked for First American Bank as a courier. His duties included making deliveries between the bank’s branches in Washington, DC Armstead parked the bank’s station wagon near the entrance of one branch in violation of a sign saying: “No P
> During her second year at the Juilliard School of Music in New York City, Ann Rylands had a chance to borrow for one month a rare Guadagnini violin, made in 1768. She returned the violin to the owner in Philadelphia, but telephoned her father to ask if h
> Eileen Murphy often cared for her elderly neighbor, Thomas Kenney. He paid her $25 per day for her help and once gave her a bank certificate of deposit worth $25,000. She spent the money. Murphy alleged that shortly before his death, Kenney gave her a
> During the Great Depression of the 1930s, the federal government’s Works Progress Administration hired artists to create public works of art. The goal was to provide employment and beautify the nation. The artist James Daugherty painted six murals on the
> In 1944, W. E. Collins conveyed land to the Church of God of Prophecy. The deed said: “This deed is made with the full understanding that should the property fail to be used for the Church of God, it is to be null and void and property to revert to W. E.
> Lisa Preece rented an apartment from Turman Realty, paying a $300 security deposit. Georgia law states: “Any landlord who fails to return any part of a security deposit which is required to be returned to a tenant pursuant to this article shall be liable
> Kenmart Realty sued to evict Mr. and Ms. Alghalabio for nonpayment of rent and sought the unpaid monies, totaling several thousand dollars. In defense, the Alghalabios claimed that their apartment was infested with rats. They testified that there were nu
> Karin made illegal firearm purchases at a gun show. At her trial, she alleged that she had committed this crime because her boyfriend had threatened to harm her and her two daughters if she did not. Her lawyer asked the judge to instruct the jury that th
> Frank Deluca and his son David owned the Sportsman’s Pub on Fountain Street in Providence, Rhode Island. The Delucas applied to the city for a license to employ topless dancers in the pub. Did the city have the power to deny the Delucas’ request? Argumen
> Nome 2000, a partnership, owned a large tract of wilderness land in Alaska. The Fagerstrom family had used the property for camping and holidays since about 1944. In 1966, Charles and Peggy Fagerstrom marked off an area for a cabin and brought material t
> In New Orleans, Mardi Gras “Indians” are carnival revelers who dress up for Mardi Gras in costumes influenced by Native American ceremonial attire. “Indians” often spend the entire year and thousands of dollars crafting their intricate designs with feath
> Fredrik Colting wrote a book entitled, 60 Years Later: Coming Through the Rye, a riff on J. D. Salinger’s famous Catcher in the Rye. Colting’s book imagined how Salinger’s protagonist, Holden Caulfield would view life as a 76-year old. Alice Randall wro
> While in college, David invented a new and useful machine to make macaroni and cheese (he called it the “Mac ‘n’ Cheeser”). It was like nothing on the market, but David did not apply for a patent. At that time, he offered to sell his invention to several
> Roger Schlafly applied for a patent for two prime numbers. (A prime number cannot be evenly divided by any number other than itself and 1. Examples of primes are 2, 3, 5, 7, 11, and 13.) Schlafly’s numbers are a bit longer—one is 150 digits, the other i
> Rebecca Reyher wrote (and copyrighted) a children’s book entitled My Mother Is the Most Beautiful Woman in the World. The story was based on a Russian folktale told to her by her own mother. Years later, the children’s TV show Sesame Street televised a s
> After Edward Miller left his job as a salesperson at the New England Insurance Agency, Inc., he took some of his New England customers to his new employer. At New England, the customer lists had been kept in file cabinets. Although the company did not re
> Frank B. McMahon wrote one of the first psychology textbooks to feature a light, easily readable style. He also included many colloquialisms and examples that appealed to a youthful student market. Charles G. Morris wrote a psychology textbook that copie
> Sequenom developed a noninvasive prenatal diagnostic test to assess the risk of Down syndrome or other chromosomal abnormalities in fetuses. The test analyzes DNA from the fetus that is found in the mother’s blood. Prior to this test, women had to underg
> Conley owned video poker machines. Although they are outlawed in Pennsylvania, he placed them in bars and clubs. He used profits from the machines to buy more machines. Is he guilty of money laundering?
> Victoria’s Secret, a well-known lingerie company, found out that a man named Victor Moseley was running a small store in Kentucky named “Victor’s Little Secret.” Moseley’s shop sold clocks, patches, temporary tattoos, stuffed animals, coffee mugs, leathe
> The Navy wanted to conduct training exercises off the coast of California for sonar submarines. Scientists were concerned that the sounds emitted by the sonar would harm marine mammals, such as whales, dolphins, and sea lions. Environmental groups filed
> The Lordship Point Gun Club operated a trap and skeet shooting club in Stratford, Connecticut, for 70 years. During this time, customers deposited millions of pounds of lead shot and clay target fragments on land around the club and in Long Island Sound.
> The marbled murrelet is a seabird on the list of endangered species. Pacific Lumber Co. received permission to harvest trees from land on which the murrelet nested, on the condition that it would cooperate with regulators to protect the murrelet. But be
> Tariq Ahmad decided to dispose of some of his laboratory’s hazardous chemicals by shipping them to his home in Pakistan. He sent the chemicals to Castelazo (a company in the United States) to prepare the materials for shipment. Ahmad did not tell the dri
> Before the Department of Agriculture issued regulations on genetically modified beets, what steps did it need to take under the environmental statutes?
> Shell Oil sold pesticides to B&B, which allowed these chemicals to leak into the ground. Shell neve owned or operated the site, and never transported wastes to the site. B&B ultimately went bankrupt. Is Shell liable for the costs of cleaning up this site
> Thomas worked at a Sherwin-Williams paint store that James managed. Thomas and James had a falling out when, according to Thomas, “a relationship began to bloom between Thomas and one of the young female employees, the one James was obsessed with.” After
> Josephine was a 60-year-old widow who suffered from high blood pressure and epilepsy. A bill collector from Collections Accounts Terminal, Inc., called her and demanded that she pay $56 she owed to Cabrini Hospital . She told him that Medicare was suppos
> After TNT Motor Express hired Joseph Bruce Drury as a truck driver, it ordered a background check from Robert Arden & Associates. TNT provided Drury’s Social Security number and date of birth, but not his middle name. Arden discovered that a Joseph Thoma
> While driving his SUV, George Xinos struck and killed a pedestrian. He then fled the scene of the crime. A year later, the police downloaded information from his car’s onboard computer which they were able to use to convict him of the crime. Should this
> Thomas Waldock purchased a used BMW 320i from Universal Motors, Inc. It was warranted “to be free of defects in materials or workmanship for a period of three years or 36,000 miles, whichever occurs first.” Within the warranty period, the car’s engine fa
> In October, Renie Guimond discovered that her credit report at TransUnion incorrectly stated that she was married, used the name “Ruth Guimond,” and had a credit card from Saks Fifth Avenue. After she reported the errors, TransUnion wrote her in November
> Processed cheese food slices must contain at least 51 percent natural cheese. Imitation cheese slices, by contrast, contain little or no natural cheese and consist primarily of water, vegetable oil, flavoring, and fortifying agents. Kraft, Inc., makes Kr
> Clarice, a young woman with a mental disability, brought a malpractice suit against a doctor at the Medical Center. As a result, the Medical Center refused to treat her on a nonemergency basis. Clarice then went to another local clinic, which was later a
> American Academic Suppliers (AAS) and Beckley-Cardy (B-C) both sold educational supplies to schools. When B-C’s sales began to plummet, it responded by reducing its catalog prices. It also offered an additional discount in states in which AAS was making
> After acquiring the Schick brand name and electric shaver assets, North American Phillips controlled 55 percent of the electric shaver industry in the United States. Remington, a competitor, claimed that the acquisition of such a large market share was a
> Samantha manufactures 60 percent of the titanium screws sold in the United States. Does she have a monopoly on this product? What would you need to know to answer this question?
> Suppose that Masi Bikes insists that retailers cannot sell its Soulville 10 model for less than $1,099. The company threatens to cut off any retailers who discount that price. But bicycle stores would like to use these bikes as a loss leader—selling them
> In New York City, 50 bakers formed an association. They developed a system of distribution under which stores were only allowed to buy from a single baker. A store that wanted to shift to another baker had to consult the association and pay cash to the f
> David Sokol worked at Berkshire Hathaway for legendary investor Warren Buffett, who is renowned not only for his investment skills but also his ethics. Bankers suggested to both Sokol and the CEO of Lubrizol that the company might be a good buy for Berks
> Which court(s) have jurisdiction as to each of these lawsuits—state or federal? Explain your reasoning with each. (a) Pat wants to sue his next-door neighbor, Dorothy, claiming that Dorothy promised to sell him the house next door. (b) Paula, who lives
> Fluor, an engineering and construction company, was awarded a $1 billion project to build a coal gasification plant in South Africa. Fluor signed an agreement with a South African client that prohibited them both from announcing the agreement until March
> Gary Griffiths was a vice president for a railroad. The CEO asked him to prepare an inventory of all the rolling stock the company owned and to arrange trips among its rail yards for a group of men in suits. Employees began asking Griffiths if the compan
> Do you love ice cream? Here is an opportunity for you! For only $800, you can buy a cow from Berkshire Ice Cream. The company gets milk from the cow and you get to share in the profits from the sale of ice cream. Just last month, Berkshire mailed $32,000
> On November 5, Hawes, Inc., a small subcontractor, opened an account with Basic Corp., a supplier of construction materials. Hawes promised to pay its bills within 30 days of purchase. Although Hawes purchased a substantial quantity of goods on credit fr
> Corporate executives are not the only people to earn fabulous salaries. Some athletes earn even more than CEOs. What is the difference between athletes and executives (besides a hook shot)?
> DeVry Inc. runs for-profit schools. Its shareholders submitted a proposal that would require the company to “annually report to shareholders on the expected ability of students at Company-owned institutions to repay their student loans.” Must DeVry inclu
> Pfizer Inc. paid $2.3 billion to settle civil and criminal charges alleging that it had illegally marketed 13 of its most important drugs. This settlement made history, but not in a good way. It was both the largest criminal fine and the largest settleme
> Two shareholders of Bruce Co., Harry and Yolan Gilbert, were fighting management for control of the company. They asked for permission to inspect Bruce’s stockholder list so that they could either solicit support for their slate of directors at the upcom
> Edgar Bronfman, Jr., dropped out of high school to go to Hollywood and write songs and produce movies. Eventually, he left Hollywood to work in the family business—the Bronfmans owned 36 percent of Seagram Co., a liquor and beverage conglomerate. Promote
> William H. Sullivan, Jr., purchased all the voting shares of the New England Patriots Football Club, Inc. (the Old Patriots). He organized a new corporation called the New Patriots Football Club, Inc. The boards of directors of the two companies agreed t
> You plan to open a store in Chicago, specializing in rugs imported from Turkey. You will work with a native Turk who will purchase and ship the rugs to your store. You are wise enough to insist on a contract establishing the rights and obligations of b
> Shareholders lost their gamble when they bought stock of Jackpot Enterprises, Inc. Fed up with management, a shareholder asked the company to include a proposal in the proxy statement that would require the board of directors to sell or merge the company
> Ronald O. Perelman, chairman of the board and CEO of Pantry Pride, met with his counterpart at Revlon, Michel C. Bergerac, to discuss a friendly acquisition of Revlon by Pantry Pride. Revlon rebuffed Pantry Pride’s overtures, perhaps in part because Berg
