Rae owned a farm and each summer allowed a neighbor, Fuller, to set up a stand on Rae’s property to sell worms to people who drove by on their way to fish in the nearby lake. After 10 years of regularly using the small piece of property, Rae and Fuller had a dispute and Rae forbade Fuller from using his land again. Fuller claimed that he now had the right to continue using the small piece of property as he had in the past, insisting that an easement had been created. Did Fuller’s continued use of the property create an easement? Principle of Law: Decision:
> Eddington operated a toy store and carried merchandise from both domestic as well as foreign manufacturers. As the holiday season approached, he found that he could reduce his costs by importing a stuffed toy from a developing country. One of the toys wa
> Kriz, an elderly man who was quite overweight, purchased a power lawnmower from a nationally known retailer. To start the lawnmower, the user needed to bend down to draw the starter cord. When Kriz bent over, he suffered a heart attack. Kriz sued the ret
> Garafolo was employed as a salesclerk at a liquor store. An armed robber entered the store one day and demanded the cash in the register. When Garafolo hesitated, the robber struck him with a pistol, causing a deep laceration. The robber left without fur
> Widra was a cashier at a large clothing store in her town. Believing her wages were below those offered by the store’s competitors, she began to speak with her co-employees about the possibility of becoming affiliated with a national union. The manager o
> Discuss novation and explain how it differs from assignment.
> Melski was a truck driver with a large shipping company. Pursuant to company policy, all drivers were required to undergo random drug testing. After being tested, Melski was informed that the results were positive. Melksi admitted to being addicted to co
> Killian was hired as a human resources manager for a company that employed about 75 people. She decided that it would be a good idea to publish an employee handbook explaining the many policies of the firm. She began to consider what provisions the handb
> Kule purchased an antique doll for $700 from Elliott through an auction website known as e-Auction. The description of the doll provided by Elliott stated that it was in “good condition,” but when Kule received the doll, she noted that it had a damaged l
> Iago started a restaurant specializing in vegetarian dishes that quickly grew. In order to raise more funds for growth, Iago decided to sell stock in the company to investors through UsFunding, a registered crowdfunding website. Iago intends to keep the
> Mikai developed an exercise device that she sold on a website. Sales were brisk, and she soon discovered that she would need additional funds to purchase materials. She included on the website an invitation to the public to invest in her company by purch
> Stanley is employed as a truck driver by a national company. As he is traveling on a cross-country trip, he discovers a closed road. After several attempts, he is unsuccessful in reaching his employer’s on-call dispatcher to notify the customer of the de
> The Department of Health and Human Services (HHS) denied Medicare coverage for the BIO-1000, a piece of durable medical equipment used to treat osteoarthritis of the knee (a degeneration of cartilage and the underlying bone). In a series of decisions, HH
> The Forest Service planned extensive timber cutting in a part of the Green Mountain National Forest but did not prepare an environmental impact statement. A coalition of conservation organizations and environmentalists, believing that the action would ha
> Bronx Reptiles Inc. imported live animals, including reptiles, into the country approximately twice per week. Edelman, the owner, knew of the International Air Transport Association guidelines for importing wildlife— how specific species should be shippe
> Midwest Suspension and Brake supplied rebuilt brake shoes for heavy-duty trucks. During an EPA inspection, numerous emissions of asbestos were documented, and detectable amounts of asbestos were found on the shop floor. The EPA then issued a “finding” th
> Explain the legal concept of assignment of contracts and provide an example of a contract that is assignable.
> Chard completed an educational program in financial planning and was awarded the certification offered by a national association of financial planners. He set up a business to offer his financial planning services to the general public. One of his first
> Agents Mansfield contacted his insurance agent and asked him to obtain an automobile insurance liability policy to be effective as of February 10. On February 14, Mansfield was involved in an accident while operating his car. The agent provided a policy
> The Irvin family had retained Jones as the family accountant for many years. Under the contractual arrangement, Jones paid all bills, provided bookkeeping services, invested family funds and prepared all tax returns for the family. After the family recei
> Smith was represented by Lewis, an attorney, in a divorce action against her husband, General Smith. General Smith was employed by the California National Guard and, as a state employee, belonged to the State Employees’ Retirement System. Lewis advised S
> From the early 1950s until his death from smoking-related lung cancer in 1997, Williams smoked cigarettes, primarily the Marlboro brand, eventually developing a habit of three packs a day. At that point, he spent half his waking hours smoking and was hig
> Merck, a major pharmaceutical company, produced a popular painkiller called Vioxx. Despite the drug being approved by the FDA, several studies linked usage of it to cardiovascular risks relating to heart attacks and strokes. Internal e-mails indicated th
> Gentry, an employee of Export Packaging Company, reported directly to Broughton. Gentry alleged among other things that, during a period of approximately four months, Broughton subjected her to “40 hugs, 15 shoulder rubs, [and] a kiss on her cheek.” She
> Ryder, a police officer in Philadelphia, was alone in his patrol car when he received a radio call of a “man with a gun.” Ryder was the first officer to arrive and was confronted by a suspect brandishing an AR-15 semiautomatic rifle pointed at him. Ryder
> Wojewski, a cardiothoracic surgeon, became a member of the medical staff at Rapid City Regional Hospital. Wojewski’s staff status entitled him to admit patients, use the hospital’s facilities, and perform surgery. Wojewski could also use nurses to assist
> Kenneth Zippo Manufacturing Co. (ZMC) manufactured lighters at its facility in Bradford, Pennsylvania, and sold the lighters internationally. Zippo Dot Com Inc. (ZDC) is a California company that operated a website that allows subscribers to access sexua
> What are the chief provisions of the Statute of Frauds? Can you suggest other agreements that also should be in writing?
> Axeler and AvePoint are competitors producing software products, primarily for the military market. Axeler employees tweeted that “Ouch . . . Another #Federal Deployment Finds Out Where the Competition is Developed . . . #Red- Dragon.” Red Dragon referre
> Rumorville, a daily online newspaper, was part of a journalism forum on the Internet published by Fitzpatrick. Subscribers to CompuServe, an Internet service provider, had access to Rumorville. Skuttlebut was a service that distributed news and gossip ab
> Robert Tappan Morris released onto the Internet a worm that spread and multiplied. The worm found its way into computers at several educational and military sites, causing these computers to crash. Morris was charged with violating section 2(d) of the Co
> Michael A. Smith was a regional operations manager for the Pillsbury Company. In this capacity, he regularly used the company’s e-mail server. The company regularly assured its employees that all e-mail communications would remain confidential and privil
> Timothy R. McVeigh (no relation to the Oklahoma City bomber) was a highly decorated, 17-year veteran of the U.S. Navy. McVeigh was a gay male who, while using an alias, sent an e-mail message to a civilian Navy volunteer through AOL. The volunteer search
> Rural Telephone Service Company was a public utility providing telephone service to several communities in Kansas. Rural published a typical telephone directory consisting of white pages and yellow pages. Feist Publications was a publishing company speci
> Webster R. McGee developed a website using the domain name of “Card Service.” Cardservice International Inc., a separate company, maintained that the term used by McGee was confusingly similar to the word owned by Cardservice. Cardservice filed a lawsuit
> Calvin Designer Label developed a website using the terms Playboy and Playmate to direct users to the site. Calvin also used both terms in the body of its web pages to which users were directed. Playboy Enterprises Inc. owned the trademarks to both words
> Before Dora Diggs, a widow, died, she left a handwritten document that read, “I want Tom R. Preston and Mattie Price to be the administrators (executors) to settle my estate.” Following this she listed various assets. A dispute arose about whether the de
> The trustees of a labor union pension fund delivered various stocks and bonds to a bank under an agreement that provided that the bank would act as the trustees’ agent in investing the fund’s assets. The agreement also provided that the bank was “authori
> Can common law and statutory law operate side by side? What are the advantages of each?
> Aversa, the personal representative of her late father’s estate, was presented with evidence that there was still $12,000 owing on his automobile. Rather than have the car repossessed, she borrowed $6,000 and refinanced the balance. Objection was made on
> Corbin was named as executor in his father’s will. While going through his late father’s papers, he discovered a promissory note made by Fulsom in the amount of $10,000 that reflected a personal loan the decedent had made before he died. Corbin approache
> Harmon, the owner of a suburban house, rented it for one year to Wagner and his wife, who had just moved into the city from another state. Two months after moving into the house, the Wagners divorced, and both husband and wife moved to smaller facilities
> An intruder entered through a window and raped McCutchen in her apartment. McCutchen sued the landlord, Ten Associates, for failure to provide adequate security and failure to warn her of the risk of intrusion through a window. Ten Associates claimed tha
> Knight purchased an apartment building that was occupied by tenants Hallsthammer, Decaprio, and Breit. The day after acquiring the building, Knight informed the tenants that their rent was being increased. A week later, Breit, on behalf of himself and ot
> The Marglin family moved from Indianapolis to New York and rented an apartment smaller than the one they had left. Marglin arranged to have the excess furniture stored at Global Transportation and Storage Company. During the year that the furniture was i
> Gilder entered a parking garage enclosed within the Washington Hilton Hotel, where he was directed to a parking space by an attendant. Some of the spaces were designated for park-and-lock and others were not. He locked the car and kept the keys. When Gil
> Noble, a resident of Washington, D.C., ordered a stereo tuner from a store in Maine. The unit was shipped and was received by McLean, the receptionist/ switchboard operator in Noble’s apartment building. She placed the tuner in a small room where package
> Wall parked his car in the parking lot at O’Hare Airport in Chicago. After he received a parking ticket from a ticket-dispensing machine, an automatic gate was raised and he entered the lot and parked his car in a space of his choosing. On the reverse si
> Paset, a renter of a safety deposit box at Old Orchard Bank and Trust Company, found $6,325 in currency on the seat of a chair in an examination booth in the safety deposit vault. The chair was partially under a table. Paset notified officers of the bank
> Explain the three characteristics of valid consideration and provide an example of an agreement having these characteristics.
> Bryer purchased a suburban home. At the time of the sale, the real estate salesperson pointed to a decorative stone fence as the boundary of the property. Because Bryer had several dogs he wanted to keep on his property, he erected a chain-link fence on
> Gentilotti, father of an illegitimate son, drew a check for $20,000 in 1969 payable to the son’s order. The check was dated July 1, 1985, but provided on the face of the check that, should Gentilotti die before that date, “this check shall be payable imm
> Locke gave two promissory notes to Consumer Food Inc. in payment for merchandise he purchased. The notes said, “Buyer agreed to pay to seller.” Consumer Food assigned the notes to Aetna Acceptance Corporation. Were these notes negotiable instruments? [Lo
> Poulakis sold a computer using fraudulent means to Welson, who paid for the machine with a promissory note for $1,200. When Welson discovered the fraud, she refused to honor the note when it was presented for payment by a subsequent holder. Welson claime
> Higgins was a used car dealer. He purchased a Corvette, giving the seller a draft drawn by him on the First State Bank of Albertville in the amount of $8,115. This draft was later presented by the seller to the bank for payment. Meanwhile, Higgins sold t
> Graver gave Srau a postdated check for $2,000 as a deposit on a sailboat as acceptance of Srau’s offer to sell the boat. Later, after Srau sold the boat to someone else, he claimed that the check was not really part of a binding contract because it was p
> Grove Hotel hired Fortas, an electrical contractor, and paid him with a promissory note for $3,400. The note stated that it was “with interest at prevailing bank rates.” Did the stipulation about interest rates affect the negotiability of the note? Princ
> Following months in which Chrysler experienced deepening losses and received billions in bailout funds from the federal government, the company, now referred to as Old Chrysler, filed a bankruptcy petition under Chapter 11. The filing unsuccessfully soug
> Jensen was involved in a motor vehicle accident with Boyer. Jensen brought suit against Boyer, alleging that her negligence caused the accident. Boyer then brought a countersuit against Jensen, claiming that it was actually Jensen’s negligence that cause
> Provide an example of a contracting party offering consideration by doing something that he or she is not legally required to do.
> Melvin and his brother, Russell Ballantyne, formed an oral partnership, which started out as a farming operation but grew into oil and gas exploration. Russell was in charge of the farming operation, while Melvin was in charge of the oil and gas explorat
> Dale, an assistant scoutmaster for the Boy Scouts, lost his position when the organization learned that he was gay. Dale contended that he was the victim of discrimination, while the Boy Scouts argued that they were exercising their First Amendment right
> Holley and Holley, an interracial couple, alleged that they were the victims of discrimination in housing as a result of actions by Crank, an employee of Triad Inc. The Holleys sued Meyer, the sole shareholder, the president, and a broker of Triad. Meyer
> Blodgett, while walking on a public sidewalk, was injured when a large piece of wood fell from a construction job at the offices of Olympic Savings and Loan Association. The construction work was being done by Drury Construction Company. Blodgett sued bo
> Washington purchased an automobile from Courtesy Motor Sales, a Ford automobile dealer. After the car was delivered, she discovered that the car she thought was new was, in fact, used and that the odometer had been turned back to conceal the mileage. Was
> Ferrara made a contract with Perret without informing her that he was acting on behalf of National Steel Wire Company. Ferrara had actual express authority, as provided in his contract of agency with National. The contract was breached and Perret sued Na
> Adano Restaurant Supply, which sells only to commercial customers, sold 200 plastic dishes to Airport Diner. When the owner of the diner attempted to wash the dishes in the dishwasher, they were distorted by the heat. Airport Diner claimed that there was
> Walters bought a power lawnmower. Attached to the engine was a tag that read in part, “For 90 days from purchase date Power Engine Company will replace for the original purchaser, free of charge, any part or parts found, upon examination at any factory a
> Gates entered into a contract with Mennonite Deaconess Home & Hospital for the installation of a new, “one-ply roofing system.” The work was to be done by an installer chosen by Mennonite but approved by Gates. When the work was nearly complete, but befo
> Bundeson, a farmer, attended an auction of used farm equipment and successfully bid $1,600 for a tractor. When he returned home, he learned that a real estate developer was eager to buy his farm and build a shopping center on the property. Bundeson agree
> Identify the major provisions of the privacy rule in the HIPAA.
> Gagne made a good living selling snacks, hamburgers, and refreshments at athletic events. He placed a written order with Pacific Container Company for 4,000 Styrofoam containers to be used to package hamburgers. Gagne requested that delivery be made thre
> Hughes purchased a new Lincoln Continental automobile from Al Greene Inc., an authorized new car dealership. On the day of the sale, Hughes made a cash down payment and signed a purchase contract and an application for the title certificate. The understa
> Kiang, a sales representative working for Prat’s Appliances, sold a refrigerator to Pogany. After several weeks, Pogany changed her mind and wanted to repudiate the sales contract. Her argument was that a valid contract did not exist because Kiang did no
> Alttarbi was on a group vacation tour when he discovered that his camcorder was not where he had left it on the tour bus. Later on the tour, Alttarbi noticed another vacationer, Carlsen, with a similar camcorder. When Carlsen was confronted, he claimed t
> Blackburn, a painting contractor, agreed in writing to paint DeSoto’s house for a certain price. After the house was painted, DeSoto asked Blackburn to paint his garage. Blackburn had other painting jobs scheduled and refused the additional work. DeSoto
> Weintraub wished to donate a music rehearsal room to Northern College, from which she had graduated. She hired Hazelton, an architect who specialized in acoustics, to design the room. Shortly after the agreement was made, Weintraub died. Hazelton refused
> Birmingham Automotive Supply Company entered into a contract with the Excel Construction Company to build a chain-link fence around the property of the auto supply company. Included in the contract was a provision that the fence must be manufactured by T
> The employees of Powder Power Tools Corp. were represented by a labor union that had negotiated an agreement covering pay rates. A number of employees did not receive the higher rates of pay specified in the union contract. Springer, an employee, brought
> A restaurant, Pizza of Gaithersburg Inc. (PG), agreed with Virginia Coffee Service (VCS) to have vending machines installed in PG’s restaurants. The contract was to run for one year and was automatically renewable unless PG gave 30 days’ notice. One year
> Dennison agreed to purchase land from Harden with the understanding that the land contained fruit trees. To prove that there were fruit trees on the property, Harden provided nursery reports stating that Pacific Gold peach trees were growing on the land.
> Identify two ways that regulators propose to make health insurance more affordable.
> Anderson was seriously injured in a traffic accident. Anderson’s daughter called a doctor, Lawrence, and told him to “give my father the best care you can give him, and I’ll pay whatever you charge.” The doctor provided the care, but the father died befo
> Jason decided to declare bankruptcy because his financial situation was desperate and his only property was a nearly new car worth about $14,000. In an attempt to conceal the value of his property, he sold the car to his friend Dane for $2,000. He planne
> Alfino borrowed money from Yakutsk and agreed in writing to pay a rate of interest higher than that allowed by local law. Later, when Alfino was called upon to pay, he refused, claiming that the agreement was void because of the usurious rate. Yakutsk, t
> Doran, a young man of 17, married a 17-year-old woman. After the wedding they moved to another city, where they both found work and began to buy furniture and appliances. When they realized that they had been unwise in some of their purchases, they attem
> Maitland, a fund-raiser for Arbor College, solicited contributions for the college’s building program. Hamill Manufacturing pledged a contribution to the program. When the company did not pay, Maitland sued. Hamill claimed there was no consideration. Wil
> The Spring Well Drilling Company entered into a contract with Towne Construction Company to drill a well to supply water to a particular piece of property where Towne was building a house. Spring Well offered no guarantee that water would, in fact, be pr
> Power-Sports wished to obtain Harley-Davidson’s permission to purchase a motorcycle dealership. Power-Sports provided written and oral statements about its business model, and based upon these statements, Harley-Davidson approved the purchase. Later Harl
> Malina, the owner of an old, multistory factory building, offered to lease the building to Larson, a manufacturer. Larson wanted to know whether the construction of the floors was strong enough to support the heavy machinery he planned to install. Malina
> Weaver, a high school dropout, leased a gas station from American Oil Company and signed a standard agreement prepared by the oil company’s lawyers. The lease (contract) contained a clause in fine print that provided that the oil company would not be lia
> Browne offered to sell Houlihan his recently purchased 50-inch plasma screen television set for $6,400. Houlihan sent Browne an e-mail message accepting the offer but asked if she could pay Browne in four equal monthly installments of $1,600. Browne did
> List six types of health-related insurance benefits typically available to employees.
> Grogan, a marketing consultant, was hired by Kreger Bottling Company to conduct market research into the taste preferences of consumers in a major city. Before he concluded the project, he was asked to take on the additional task of analyzing the appeal
> Hodge, a 54-year-old employee of a bank, discussed his job and future with Tilley, president of Evans Financial Corporation and his employer. They agreed orally on a number of matters, including job title and location. After eight months on the new job,
> Fortrell, an aide in a child care center, was particularly concerned about the behavior of a certain child who frequently fought with and teased other children at the center. LaRena, the mother of one of the children who had been a victim of the troubles
> Robin Williams, famous entertainer and comedian, gave a performance at a San Francisco nightclub, The Great American Music Hall. As part of his comedy routine, he disparaged a particular brand of wine, Rege, by suggesting that it would be a great success
> Muscarello illegally sold marijuana, which he transported in a small truck. Police discovered a handgun in the locked glove compartment of the truck. A provision in the firearms chapter of the federal law demands a five-year required prison term for pers
> Searle, office manager of Entro Products, had access to the firm’s checks to be used in paying for office supplies. However, Searle was not authorized to sign them. Each time he wanted to pay invoices, Searle had to have the firm’s president sign them. A
> Franken, president of Monarch Pharmaceuticals Incorporated, was one of only three persons who knew that one of the firm’s experimental drugs had just been approved by the federal government. The drug had been found to cure several serious diseases. As so
> DeCoster and his son, owners of a large egg production company, negligently sold eggs contaminated by salmonella poisoning, causing illness to 1,939 people, according to an estimate by the U.S. Centers for Disease Control and Prevention. According to est
