Randal Schweiger bought a 2008 Kia Spectra EX from Kia Motors America, Inc., for his stepdaughter, April Kirichkow. The cost was $17,231, plus sales tax and other charges, and Schweiger financed the entire amount. April soon began having trouble starting the car. The Kia dealership replaced various parts of the motor several times, but was unable to fix the problem. Schweiger sought a refund under the state’s lemon law. When Schweiger and Kia could not agree on the amount, Schweiger filed a suit in a Wisconsin state court against Kia. The court ruled in Schweiger’s favor, and Kia appealed. 1. Kia offered a refund of $3,306.24. Should this offer bar Schweiger’s claim for a refund? Why or why not? 2. Schweiger claimed that Kia’s offer did not include the $1,301 cost of a service contract that he purchased with the car. Kia argued that the amount still owed on the purchase, $13,060.16—which Schweiger agreed was the correct amount—“would by definition refund the cost of the service contract.” The court found “no logical basis” for this argument. Is it ethical for a party to argue a position for which there is no logical basis? Discuss.
> When rescission is awarded, what is the measure of recovery? What did the recovery include in this case?
> How does a college basketball team’s record of wins and losses, and its ranking in its conference, support the court’s decision in this case?
> What are compensatory damages? What is the standard measure of compensatory damages?
> Should Kolodin’s role in bringing about the “no contact” stipulation through her request for a protection order have rendered the doctrine of impossibility inapplicable? Explain.
> The repairs to the bus cost $1,341.50. Who should pay this amount? Why?
> How does the parol evidence rule save time and money for the parties to a dispute and the court that hears it? Discuss.
> Was Cypress’s conduct unethical? Why or why not?
> Did Shivley’s misrepresentations rise to the level of fraud? Explain.
> At the time Holmes signed the release, Multimedia had not yet become a sponsor of the event. Should this fact have rendered the clause unenforceable? Explain.
> Could PAK Foods successfully contend that S.L.’s minority does not bar enforcement of the arbitration agreement because medical expenses are necessaries? Discuss.
> Why would any party agree to a covenant not to sue?
> How should an offeree indicate a definite lack of consent to a counteroffer?
> Assume that, instead of exchanging e-mails, the attorneys for both sides had had a phone conversation that included all of the terms to which they actually agreed in their e-mail exchanges. Would the court have ruled differently? Why or why not?
> How might the result in this case have been different if the court had allowed Wagner’s extrinsic evidence of the prior contract regarding Love Song to be used as evidence in this dispute?
> What did the amount of the jury’s award of $686,000 in damages represent? Explain.
> How did the objective theory of contracts affect the result in this case? Explain.
> Suppose that Case Western had tolerated Al-Dabagh’s conduct and awarded him a diploma. What impact might that have had on other students at the school? Why?
> Does an organization have an ethical obligation to secure a safe and harassment-free workplace for its employees? Discuss.
> Are Salvatore’s actions likely to affect his business’s ability to profit in the long run? Discuss.
> If Miller and Marcum had used smartphones and U.S. Cellular had stored its records in the “cloud,” would the outcome likely have been different? Explain.
> Why was Sisuphan convicted of embezzlement instead of larceny? What is the difference between these two crimes?
> Who is in the best position to evaluate the credibility of the evidence and the witnesses in a case? Why?
> Go to Appendix G at the end of this text and examine the excerpt of Case No. 3, Mills v. Chauvin. Review and then brief the case, making sure that your brief answers the following questions. 1. Issue: What document was at the center of the dispute in th
> Kodiak agrees to sell one thousand espresso machines to Lin to be delivered on May 1. Due to a strike during the last week of April, there is a temporary shortage of delivery vehicles. Kodiak can deliver the espresso makers two hundred at a time over a p
> Suppose that you are a collector of antique cars and you need to purchase spare parts for a 1938 engine. These parts are not made any more and are scarce. You discover that Beem has the spare parts that you need. You contract with Beem to buy the parts a
> Mountain Stream Trout Co. agreed to buy “market size” trout from trout grower Lake Farms, LLC. Their five-year contract did not define market size. At the time, in the trade, market size referred to fish of one-pound live weight. After three years, Mount
> Assume that you are manufacturing iPad accessories and that your business is becoming more successful. You are now considering expanding operations into another country. 1. One group will explore the costs and benefits of advertising internationally on
> Frances Morelli agreed to sell Judith Bucklin a house in Rhode Island for $177,000. The sale was supposed to be closed by September 1. The contract included a provision that “if Seller is unable to convey good, clear, insurable, and marketable title, Buy
> Review the discussion of the doctrine of mitigation of damages in this chapter. What are some of the advantages and disadvantages of this doctrine?
> ABC Clothiers, Inc., has a contract with John Taylor, owner of Taylor & Sons, a retailer, to deliver one thousand summer suits to Taylor’s place of business on or before May 1. On April 1, John receives a letter from ABC informing him that ABC will not b
> The concept of substantial performance permits a party to be discharged from a contract even though the party has not fully performed her or his obligations according to the contract’s terms. Is this fair? Why or why not? What policy interests are at iss
> Jason Novell, doing business as Novell Associates, hired Barbara Meade as an independent contractor. The parties orally agreed on the terms of employment, including payment of a share of the company’s income to Meade, but they did not put anything in wri
> Melissa Faraj owns a lot and wants to build a house according to a particular set of plans and specifications. She solicits bids from building contractors and receives three bids: one from Carlton for $160,000, one from Feldberg for $158,000, and one fro
> To download a specific app to your smartphone or tablet device, you usually have to check a box indicating that you agree to the company’s terms and conditions. Most individuals do so without ever reading those terms and conditions. Print out a specific
> Go to Appendix G at the end of this text and examine the excerpt of Case No. 2, Gyabaah v. RivLab Transportation Corp. Review and then brief the case, making sure that your brief answers the following questions. 1. Issue: The dispute between the parties
> Pfizer, Inc., developed a new antibiotic called Trovan (trovafloxacinmesylate). Tests showed that in animals Trovan had life-threatening side effects, including joint disease, abnormal cartilage growth, liver damage, and a degenerative bone condition. Se
> Assume that you are a high-level manager for a shoe manufacturer. You know that your firm could increase its profit margin by producing shoes in Indonesia, where you could hire women for $100 a month to assemble them. You also know that human rights advo
> Cyber crime costs consumers millions of dollars every year. It costs businesses, including banks and other credit-card issuers, even more. Nonetheless, when cyber criminals are caught and convicted, they are rarely ordered to pay restitution or sentenced
> Ray steals a purse from an unattended car at a gas station. Because the purse contains money and a handgun, Ray is convicted of grand theft of property (cash) and grand theft of a firearm. On appeal, Ray claims that he is not guilty of grand theft of a f
> Peter Gowin was an employee of a granite countertop business owned by Joann Stathis. In November 2016, Gowin signed a promissory note agreeing to pay $12,500 in order to become a co-owner of the business. The note was dated January 15, 2016 (ten months b
> Clarence Morgan, Jr., owned Easy Way Automotive, a car dealership in D’Lo, Mississippi. Easy Way sold a truck to Loyd Barnard, who signed a note for the amount of the price payable to Trustmark National Bank in six months. Before the note came due, Barna
> Thao Thi Duong signed a note in the amount of $200,000 in favor of Country Home Loans, Inc., to obtain a loan to buy a house in Marrero, Louisiana. The note was indorsed “PAY TO THE ORDER OF [blank space] WITHOUT RECOURSE COUNTRY HOME LOANS, INC.” Almost
> Eligio Gaitan borrowed the funds to buy real property in Downers Grove, Illinois, and signed a note payable to Encore Credit Corp. Encore indorsed the note in blank. Later, when Gaitan defaulted on the payments, an action to foreclose on the property was
> Angela Brock borrowed $544,000 and signed a note payable to Amerifund Mortgage Services, LLC, to buy a house in Silver Spring, Maryland. The note was indorsed in blank and transferred several times “without recourse” before Brock fell behind on the payme
> Sandra Ford signed a note and a mortgage on her home in Westwood, New Jersey, to borrow $403,750 from Argent Mortgage Co. Argent transferred the note and mortgage to Wells Fargo Bank, N.A., without indorsement. The following spring, Ford stopped making p
> Thomas Klutz obtained a franchise from Kahala Franchise Corp. to operate a Samurai Sam’s restaurant. Under their agreement, Klutz could transfer the franchise only if he obtained Kahala’s approval and paid a transfer fee. Without telling Kahala, Klutz so
> Abby Novel signed a handwritten note that read, “Glen Gallwitz 1-8-2002 loaned me $5,000 at 6 percent interest a total of $10,000.00.” The note did not state a time for repayment. Novel used the funds to manufacture and market a patented jewelry display
> Williams purchased a used car from Stein for $1,000. Williams paid for the car with a check (written in pencil) payable to Stein for $1,000. Stein, through careful erasures and alterations, changed the amount on the check to read $10,000 and negotiated t
> Muriel Evans writes the following note on the back of an envelope: “I, Muriel Evans, promise to pay Karen Marvin or bearer $100 on demand.” Is this a negotiable instrument? Discuss fully.
> Reefpoint Brewhouse 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, Reefpoint expressed concerns about the w
> Erb Poultry, Inc., is a distributor of fresh poultry products in Lima, Ohio. CEME, LLC, does business as Bank Shots, a restaurant in Trotwood, Ohio. CEME ordered chicken wings and “dippers” from Erb, which were delivered and for which CEME issued a check
> Bariven, S.A., agreed to buy 26,000 metric tons of powdered milk for $123.5 million from Absolute Trading Corp. to be delivered in shipments from China to Venezuela. After the first three shipments, China halted dairy exports due to the presence of melam
> Padma Paper Mills, Ltd., converts waste paper into usable paper. In 2007, Padma entered into a contract with Universal Exports, Inc., under which Universal Exports certified that it would ship white envelope cuttings to Padma in exchange for a payment of
> Alan Vitt purchased an iBook G4 laptop computer from Apple, Inc. Shortly after the one-year warranty expired, the laptop stopped working due to a weakness in the product manufacture. Vitt sued Apple, arguing that the laptop should have lasted “at least a
> Woodridge USA Properties, L.P., bought eighty-seven commercial truck trailers from Southeast Trailer Mart, Inc. (STM). Gerald McCarty, an independent sales agent who arranged the deal, showed Woodridge the documents of title. The documents did not indica
> Moore contracted in writing to sell her 2010 Hyundai Santa Fe to Hammer for $16,500. Moore agreed to deliver the car on Wednesday, and Hammer promised to pay the $16,500 on the following Friday. On Tuesday, Hammer informed Moore that he would not be buyi
> Genix, Inc., has contracted to sell Larson five hundred washing machines of a certain model at list price. Genix is to ship the goods on or before December 1. Genix produces one thousand washing machines of this model but has not yet prepared Larson’s sh
> Daniel Fox owned Fox & Lamberth Enterprises, Inc., a kitchen remodeling business. Fox leased a building from Carl Hussong. When Fox planned to close his business, Craftsmen Home Improvement, Inc., expressed an interest in buying his assets. Fox set a pri
> Allied Shelving and Equipment, Inc., sells and installs shelving systems. National Deli, LLC, contracted with Allied to provide and install a parallel rack system (a series of large shelves) in National’s warehouse. Both parties were dissatisfied with th
> Ethicon, Inc., a pharmaceutical company, entered into an agreement with UPS Supply Chain Solutions, Inc., to transport pharmaceuticals. The drivers were provided by International Management Services Co. under a contract with a UPS subsidiary, Worldwide D
> Kendall Gardner agreed to buy a specially built shaving mill from B&C Shavings. He planned to use the 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 pay
> Douglas Singletary bought a manufactured home from Andy’s Mobile Home and Land Sales. The contract stated that the buyer accepted the home “as is where is.” Singletary paid the full price, and his crew began to ready the home to relocate it to his proper
> B.S. International, Ltd. (BSI), makes costume jewelry. JMAM, LLC, is a wholesaler of costume jewelry. JMAM sent BSI a letter with the terms for orders, including the necessary procedure for obtaining credit for items that customers rejected. The letter s
> Kenzie Godfrey 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, but she had not fully paid for it or com
> Fallsview Glatt Kosher Caterers ran a business that provided travel packages, including food, entertainment, and lectures on religious subjects, to customers during the Passover holiday at a New York resort. Willie Rosenfeld verbally agreed to pay Fallsv
> Strike offers to sell Bailey one thousand shirts for a stated price. The offer declares that shipment will be made by Dependable Truck Line. Bailey replies, “I accept your offer for one thousand shirts at the price quoted. Delivery to be by Yellow Expres
> On December 21, 1988, Pan Am Flight 103 exploded 31,000 feet in the air over Lockerbie, Scotland, killing all 259 passengers and crew on board and 11 people on the ground. Among those killed was Roger Hurst, a U.S. citizen. An investigation determined th
> Holocaust survivors and the heirs of Holocaust victims filed a suit in a federal district court in the United States against the Hungarian national railway, the Hungarian national bank, and several private Hungarian banks, alleging that the defendants ha
> The Wind Tower Trade Coalition is an association of domestic manufacturers of utility-scale wind towers. The coalition filed a suit in the U.S. Court of International Trade against the U.S. Department of Commerce, challenging its decision to impose only
> In 1954, the government of Bolivia began expropriating land from Francisco Loza for public projects, including an international airport. The government directed the payment of compensation in exchange for at least some of his land. But the government nev
> Bell Helicopter Textron, Inc., designs, makes, and sells helicopters with distinctive and famous trade dress that identifies them as Bell aircraft. Bell also owns the helicopters’ design patents. Bell’s Model 206 Series includes the Jet Ranger. Thirty-si
> U.S. citizens who were descendants of victims of the Holocaust (the mass murder of 6 million Jews by the Nazis during World War II) in Europe filed a claim for breach of contract in the United States against an Italian insurance company, Assicurazioni Ge
> U.S. pineapple producers 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). The Philippine producers also exported other products, such a
> Antex Industries, a Japanese firm, agreed to purchase 92,000 electronic integrated circuits from Electronic Arrays. The Swiss Credit Bank issued a letter of credit to cover the transaction. The letter of credit specified that the chips would be transport
> On a weekday, Tamara Cohen, a real estate broker, showed a townhouse owned by Ray and Harriet Mayer to Jessica Seinfeld, the wife of comedian Jerry Seinfeld. On the weekend, when Cohen was unavailable because her religious beliefs prevented her from work
> Mia Eriksson was a seventeen-year-old competitor in horseback-riding events. Her riding coach was Kristi Nunnink. Eriksson signed an agreement that released Nunnink from all liability except for damages caused by Nunnink’s “direct, willful and wanton neg
> Cuesport Properties, LLC, sold a condominium in Anne Arundel County, Maryland, to Critical Developments, LLC. As part of the sale, Cuesport agreed to build a wall between Critical Developments’ unit and an adjacent unit within thirty days of closing. If
> After submitting the high bid at a foreclosure sale, David Simard entered into a contract to purchase real property in Maryland for $192,000. Simard defaulted (failed to pay) on the contract, so a state court ordered the property to be resold at Simard’s
> Before buying a house, Dean and Donna Testa hired Ground Systems, Inc. (GSI), to inspect the sewage and water disposal system. GSI reported a split system with a watertight septic tank, a wastewater tank, a distribution box, and a leach field. The Testas
> Planned Pethood Plus, Inc. (PPP), a veterinary clinic, borrowed $389,000 from KeyBank. The term of the loan was ten years. A “prepayment penalty” clause provided a formula to add an amount to the balance due if PPP offered to repay its loan early. The ad
> Middleton Motors, Inc., a struggling Ford dealership in Wisconsin, sought managerial and financial assistance from Lindquist Ford, Inc., a successful Ford dealership in Iowa. While the two dealerships negotiated the terms for the services and a cash infu
> Lauren Barton, a single mother with three children, lived in Portland, Oregon. Cynthia VanHorn also lived in Oregon until she moved to New York City to open and operate an art gallery. VanHorn asked Barton to manage the gallery under a one-year contract
> Carnack contracts to sell his house and lot to Willard for $100,000. The terms of the contract call for Willard to make a deposit of 10 percent of the purchase price as a down payment. The terms further stipulate that if the buyer breaches the contract,
> Premier Building & Development, Inc., entered a listing agreement giving Sunset Gold Realty, LLC, the exclusive right to find a tenant for some commercial property. The terms of the listing agreement stated that it was binding on both parties and “their
> Dr. Jake Lambert signed an employment agreement with Baptist Health Services, Inc., to provide cardiothoracic-surgery services to Baptist Memorial Hospital–North Mississippi, Inc., in Oxford, Mississippi. Complaints about Lambert’s behavior arose almost
> Russ Wyant owned Humble Ranch in Perkins County, South Dakota. Edward Humble, whose parents had previously owned the ranch, was Wyant’s uncle. Humble held a two-year option to buy the ranch. The option included specific conditions. Once it was exercised,
> District in Bexar County, Texas, hired STR Constructors, Ltd., to renovate a middle school. STR subcontracted the tile work in the school’s kitchen to Newman Tile, Inc. (NTI). The project had already fallen behind schedule. As a result, STR allowed other
> David and Sandra Dess contracted with Sirva Relocation, LLC, to assist in selling their home. In their contract, the Desses agreed to disclose all information about the property—information on which Sirva “and other prospective buyers may rely in decidin
> Bath Iron Works (BIW) offered a job to Thomas Devine, contingent on Devine’s passing a drug test. The testing was conducted by NorDx, a subcontractor of Roche Biomedical Laboratories. When NorDx found that Devine’s urinalysis showed the presence of opiat
> Aron, a college student, signs a one-year lease agreement that runs from September 1 to August 31. The lease agreement specifies that the lease cannot be assigned without the landlord’s consent. In late May, Aron decides not to go to summer school and as
> Wilken owes Rivera $2,000. Howie promises Wilken that he will pay Rivera the $2,000 in return for Wilken’s promise to give Howie’s children guitar lessons. Is Rivera an intended beneficiary of the Howie-Wilken contract? Explain.
> On behalf of BRJM, LLC, Nicolas Kepple offered Howard Engelsen $210,000 for a parcel of land known as lot five on the north side of Barnes Road in Stonington, Connecticut. Engelsen’s company, Output Systems, Inc., owned the land. Engelsen had the lot sur
> Before their marriage, Linda and Gerald Heiden executed a prenuptial agreement. The agreement provided that “no spouse shall have any right in the property of the other spouse, even in the event of the death of either party.” The description of Gerald’s
> Joy Pervis and Brenda Pauley worked together as talent agents in Georgia. When Pervis “discovered” actress Dakota Fanning, Pervis sent Fanning’s audition tape to Cindy Osbrink, a talent agent in California. Osbrink agreed to represent Fanning in Californ
> After twenty-nine years of marriage, Robert and Mary Lou Tuttle were divorced. They admitted in court that before they were married, they had signed a prenuptial agreement. They agreed that the agreement had stated that each would keep his or her own pro
> Rimma Vaks and her husband, Steven Mangano, executed a written contract with Denise Ryan and Ryan Auction Co. to auction their furnishings. The six-page contract provided a detailed summary of the parties’ agreement. It addressed the items to be auctione
> Newmark & Co. Real Estate, Inc., contacted 2615 East 17 Street Realty, LLC, to lease certain real property on behalf of a client. Newmark e-mailed the landlord a separate agreement for the payment of Newmark’s commission. The landlord e-mailed it back wi
> Charter One Bank owned a fifteen-story commercial building. A fire inspector told Charter that the building’s drinking-water and fire-suppression systems were linked, which violated building codes. Without disclosing this information, Charter sold the bu
> Gemma promises a local hardware store that she will pay for a lawn mower that her brother is purchasing on credit if the brother fails to pay the debt. Must this promise be in writing to be enforceable? Why or why not?
> Jerome is an elderly man who lives with his nephew, Philip. Jerome is totally dependent on Philip’s support. Philip tells Jerome that unless Jerome transfers a tract of land he owns to Philip for a price 30 percent below market value, Philip will no long
