Question: Simon Sharpe executed and delivered to Ben

> Regan received a letter from Chase, the material portion of which stated, “Chase hereby places an order with you for fifty cases of Red Top Tomatoes. Ship them C.O.D.” As soon as he received the letter, Regan shipped the tomatoes to Chase. While en route

> Mike Moses purchased a mobile home, including installation, from Gary Newman. Newman delivered the home to Moses’s lot. Upon inspection of the home, Moses’s fiancée found a broken window and water pipe. Moses also had not received keys to the front door.

> Fred Lane, who sells boats, motors, and trailers, sold a boat, motor, and trailer to John Willis in exchange for a check for $6,285. The check was not honored when Lane attempted to use the funds. Willis subsequently left the boat, motor, and trailer wit

> Home Indemnity, an insurance company, paid one of its insureds after the theft of his car. The car reappeared in another state and was sold to Michael Schrier for $8,300 by a used car dealer. The dealer promised to give Mr. Schrier a certificate of title

> McCoy, an Oklahoma cattle dealer, orally agreed with Chandler, a Texas cattle broker, to ship cattle to a New Mexico feedlot for delivery to Chandler. The agreement was for six lots of cattle valued at $119,000. After McCoy delivered the cattle, he prese

> On December 2, 2015, Miles executed and delivered to Proctor a negotiable promissory note for $1,000, payable to Proctor or order due March 2, 2016, with interest at 14 percent from maturity, in partial payment of a printing press. On January 3, 2016, Pr

> A seller had manufactured forty thousand pounds of plastic resin pellets especially for a buyer, who agreed to accept them at the rate of one thousand pounds per day upon his issuance of shipping instructions. Despite numerous requests by the seller, the

> Johnson, who owns a hardware store, was indebted to Hutchinson, one of his suppliers. Johnson sold his business to Lockhart, one of Johnson’s previous competitors. Lockhart combined the inventory from Johnson’s store with his own and moved the combined i

> On February 7, Pillsbury purchased eight thousand bushels of wheat from Landis. The wheat was being stored at the Greensville Grain Company. Pillsbury also intended to store the wheat with Greensville. On February 10, the wheat was destroyed. Landis dema

> Justin told Jennifer he wished to buy Jennifer’s collection of antique watches. He told Jennifer he wanted to take the watches to his partner for evaluation. Justin then left with the watches and never returned. Justin sold the watches in another state t

> Stein, a mechanic, and Beal, a life insurance agent, entered into a written contract for the sale of Stein’s tractor to Beal for $6,800 cash. It was agreed that Stein would tune the motor on the tractor. Stein fulfilled this obligation and on the night o

> The plaintiff, while driving a pickup manufactured by the defendant, was struck in the rear by another motor vehicle. Upon impact, the plaintiff’s head was jarred backward against the rear window of the cab, causing the plaintiff serious injury. The pick

> The plaintiff brings this cause of action against a manufacturer for the loss of his leg below the hip. The leg was lost when caught in the gears of a screw auger machine sold and installed by the defendant. Shortly before the accident, the plaintiff’s c

> Fred Lyon of New York, while on vacation in California, rented a new model Home Run automobile from Hart’s Drive-A-Car. The car was manufactured by the Ange Motor Company and was purchased by Hart’s from Jammer, Inc., an automobile importer. Lyon was dri

> Testator gives property to Timothy in trust for Barney’s benefit, providing that Barney cannot assign or pledge future trust income. Barney borrows money from Linda, assigning his future income under the trust for a stated period. Can Linda obtain any ju

> Under an oral agreement, Hyer rented from Bateman a vacant lot for a filling station. Hyer placed on the lot a lightly constructed building bolted to a concrete slab and several storage tanks laid on the ground in a shallow excavation. Later, Hyer prepar

> Graham owns a building having a fair market value of $120,000. She takes out a fire insurance policy from the Bentley Insurance Company for $72,000; the policy contains an 80 percent co-insurance clause. The building is damaged by fire to the extent of $

> On July 15, Adler purchased in Chicago a Buick sedan, intending to drive it that day to St. Louis, Missouri. He telephoned a friend, Maruchek, who was in the insurance business, and told him that he wanted liability insurance on the automobile, limited i

> Seindenberg and Hutchinson (the site owners) leased a four-acre tract of land (the Bluff Road site) to a chemical manufacturing corporation (COCC). While the lease initially was for the sole purpose of allowing COCC to store raw materials and finished pr

> Atlantic Cement operated a large cement plant. Neighboring landowners sued for damages and an injunction, claiming that their properties were injured by the dirt, smoke, and vibrations coming from the plant. The lower court found that the plant constitut

> Frank finds Thomas’s wallet, which contains many credit cards and Thomas’s identification. By using Thomas’s identification and VISA card, Frank goes on a shopping spree and runs up $5,000 in charges. Thomas does not discover that he has lost his wallet

> Jane Jones, a married woman, applies for a credit card from Exxon but is refused credit. Jane is bewildered as to why she was turned down. What are her legal rights in this situation?

> Central Adjustment Bureau allegedly threatened Consumer with a lawsuit, service at his office, and attachment and sale of his property in order to collect a debt, although it did not intend to carry out the threat and did not have the authority to commen

> John purchased for cash a Revenge automobile manufactured by Japanese Motors, Ltd., from an authorized franchised dealer in the United States. The dealer told John that the car had a “twenty-four month 24,000-mile warranty.” Two days after John accepted

> Discount is a discount appliance chain store that continually sells goods at a price below manufacturers’ suggested retail prices. A, B, and C, the three largest manufacturers of appliances, agree that unless Discount ceases its discount pricing, they wi

> Ryan Corporation manufactures and sells a variety of household cleaning products in interstate commerce. On national television, Ryan falsely advertises that its laundry liquid is biodegradable. Has Ryan violated the Lanham Act?

> Smith, while in the course of his employment with the Bee Corporation, negligently ran the company’s truck into Williams, injuring him severely. Subsequently, the Bee Corporation and the Sea Corporation consolidated, forming the SeaBee Corporation. Willi

> A corporation is formed for the purpose of manufacturing, buying, selling, and dealing in drugs, chemicals, and similar products. The corporation, under authority of its board of directors, contracted to purchase the land and building it occupied as a fa

> The Pyro Corporation has outstanding 20,000 shares of common stock, of which 19,000 are owned by Peter B. Arson; 500 shares are owned by Elizabeth Arson, his wife; and 500 shares are owned by Joseph Q. Arson, his brother. These three individuals are the

> Grant, Arthur, and David formed a partnership for the purpose of betting on boxing matches. Grant and Arthur would become friendly with various boxers and offer them bribes to lose certain bouts. David would then place large bets, using money contributed

> Clark, who owned a vacant lot, and Bird, who was engaged in building houses, entered into an oral agreement by which Bird was to erect a house on the lot. Upon the sale of the house and lot, Bird was to have his money first. Clark was then to have the ag

> Smith, Jones, and Brown were creditors of White, who operated a grain elevator known as White’s Elevator. Heavily in debt, White was about to fail when the three creditors agreed to take title to his elevator property and pay all the debts. It was also a

> The Department of Energy (DOE) issued a subpoena requesting information regarding purchases, sales, exchanges, and other transactions in crude oil from Phoenix Petroleum Company (Phoenix). The aim of the DOE audit was to uncover violations of the Emergen

> Jonnel Enterprises, Inc., contracted to construct a student dormitory at Clarion State College. On May 6, Jonnel entered into a written agreement with Graham and Long as electrical contractors to perform the electrical work and to supply materials for th

> While Butler and his wife, Wanda, were browsing through Sloan’s used car lot, Butler told Sloan that he was looking for a safe but cheap family car. Sloan said, “That old Cadillac hearse ain’t hurt at all, and I’ll sell it to you for $5,950.” Butler said

> Marcus issues a negotiable promissory note payable to the order of Parish for the amount of $3,000. Parish raises the amount to $13,000 and negotiates it to Hilda for $12,000. (a) If Hilda is a holder in due course, how much can she recover from Marcus?

> Anthony lends money to Frank, who dies without having repaid the loan. Frank’s widow, Carol, promises Anthony to repay the loan. Upon Carol’s refusal to pay the loan, Anthony brings suit against Carol for payment. Is Carol bound by her promise to pay the

> Consider the facts in problem 8 but assume that the price was $350. Assume further that Benson wishes to avoid the contract based on the allegation that Carl befriended and tricked him into the purchase. Discuss.

> Daniel, while under the influence of alcohol to the extent that he did not know the nature and consequences of his acts, agreed to sell his 2013automobile to Belinda for $13,000. The next morning when Belinda went to Daniel’s house with the $13,000 in ca

> Rose, a minor, bought a new Buick Riviera from Sheehan Buick. Seven months later, while still a minor, he attempted to disaffirm the purchase. Sheehan Buick refused to accept the return of the car or to refund the purchase price. Rose, at the time of the

> Amos orally agrees to hire Elizabeth for an eight-month trial period. Elizabeth performs the job magnificently, and after several weeks Amos orally offers Elizabeth a six-month extension at a salary increase of 20 percent. Elizabeth accepts the offer. At

> Virginia induced Charles to sell Charles’s boat to Virginia by misrepresentation of material fact on which Charles reasonably relied. Virginia promptly sold the boat to Donald, who paid fair value for it and knew nothing concerning the transaction betwee

> Henry and Wilma, an elderly immigrant couple, agreed to purchase from Harris a refrigerator with a fair market value of $450 for twenty-five monthly installments of $60 per month. Henry and Wilma now wish to void the contract, asserting that they did not

> Edwin sells a sofa to Jack for $800. Edwin and Jack both know that the sofa is in Edwin’s warehouse, located approximately ten miles from Jack’s home. The contract does not specify the place of delivery, and Jack insists that the place of delivery is eit

> Sam Sharpe executed and delivered to Don Dole the following instrument: Knoxville, Tennessee May 29, 2015 Thirty days after date I promise to pay Don Dole or order Five Thousand Dollars. The holder of this instrument shall have the election to require th

> Pablo agreed to lend Marco $500. Thereupon Marco made and delivered his note for $500 payable to Pablo or order “ten days after my marriage.” Shortly thereafter Marco was married. Is the instrument negotiable? Explain.

> A route salesperson for Ideal Milk Company delivered a half-gallon glass jug of milk to Allen’s home. The next day, when Allen grasped the milk container by its neck to take it out of his refrigerator, it shattered in his hand and caused serious injury.

> Explain whether the following instrument is negotiable. March 1, 2015 One month from date, I, James Jimson, hereby promise to pay Edmund Edwards: Six Thousand, Seven Hundred Fifty ($6,750.00) Dollars, plus 8 ¾ % interest. Payment for cutting machines to

> Debbie Dean issued a check to Betty Brown payable to the order of Cathy Cain and Betty Brown. Betty indorsed the check, “Payable to Elizabeth East, (signed) Betty Brown.” What rights, if any, does Elizabeth acquire in the check?

> Alpha issues a negotiable check to Beta payable to the order of Beta in payment of an obligation Alpha owed Beta. Beta delivers the check to Gamma without indorsing it in exchange for 100 shares of General Motors stock owned by Gamma. How has Beta transf

> Calvin uses fraud to induce Maria to promise to pay money in return for goods he has delivered to her. Has a contract been formed? If so, what kind? What are the rights of Calvin and Maria?

> Jonathan writes to Willa, stating “I'll pay you $150 if you reseed my lawn.” Willa reseeds Jonathan's lawn as requested. Has a contract been formed? If so, what kind?

> The FTC brings a deceptive trade practice action against Beneficial Finance Company based on Beneficial’s use of its “instant tax refund” slogan. The FTC argues that Beneficial’s advertising a tax refund loan or instant tax refund is deceptive in that th

> The stock in Hotel Management, Inc., a hotel management corporation, was divided equally between two families. For several years the two families had been unable to agree on or cooperate in the management of the corporation. As a result, no meeting of sh

> Upon George Welch’s death, he was survived by his third wife, Dorothy Welch, and his daughter by his first marriage, Patricia Fisher. At the time George and Dorothy were married, George was in very poor health and he relied on Dorothy to care for him. Ge

> Playtime Theaters and Sea-First Properties purchased two theaters in Renton, Washington, with the intention of exhibiting adult films. About the same time, they filed suit seeking injunctive relief and a declaratory judgment that the First and Fourteenth

> John Doe purchased a bottle of “Bleach-All,” a well-known brand, from Roe’s combination service station and grocery store. When John used the “Bleach-All,” his clothes severely deteriorated due to an error in mixing the chemicals during the detergent’s m

> On June 30, 2006, Martin Hendrickson and Solveig Hendrickson were married, and on January 3, 2007, a home previously owned by Martin was conveyed to them as joint tenants and not as tenants in common. Solveig Hendrickson paid no part of the consideration

> The plaintiffs are public utilities providing telecommunications services in New Hampshire. The plaintiffs commenced separate actions for abatement of real estate taxes against sixteen municipalities. The plaintiffs disputed the defendants’ treatment of

> The Commercial Office of Spain hired Enrique Segni to develop a market for Spanish wines in the U.S. Midwest. The Commercial Office is an arm of the Spanish government. Seven months later, Segni was fired, whereupon he filed a lawsuit in a U.S. district

> When considering an application for a special use permit to develop and operate a ski resort at Sandy Butte, a mountain in Washington that is part of a national forest, the Forest Service prepared an environmental impact statement (EIS). The EIS recommen

> Kevin Miller, bought a house in Atlanta in 2007 and took out a mortgage. He lived in the house until 2010, when he accepted a job in Chicago; from then on, he rented the house. He received a letter demanding payment from a law firm on behalf of the mortg

> Arthur Young & Co., a firm of certified public accountants, was the independent auditor for Amerada Hess Corporation. During its review of Amerada’s financial statements as required by federal securities laws, Young confirmed Amerada’s statement of its c

> The California Dental Association (CDA) is a voluntary nonprofit association of local dental societies to which some nineteen thousand dentists belong, about three-quarters of those practicing in the state. The CDA lobbies on behalf of its members’ inter

> Mark Hunger was the safety director at Grand Central Sanitation. On September 7, Hunger “became aware” that hazardous materials consisting of blasting caps were being deposited into garbage containers at Shu-Deb, Inc. Grand Central collected garbage from

> Southwire Company and Essex Group, Inc. are direct competitors in the cable and wire industry. Southwire’s logistics system is a warehouse organizational system with components extending from architectural layout features to customized equipment and modi

> Basic, Inc. was a publicly traded company. Combustion Engineering, Inc. and Basic began discussions concerning the possibility of a merger of the two companies. During the next two years, Basic made three public statements denying that it was engaged in

> The plaintiff’s children purchased an Aero Cycle exercise bike for their mother to use in a weight loss program. The Aero Cycle bike was manufactured by DP and purchased from Walmart. The second time the plaintiff, Judy Dunne, used the bike (the first ti

> Wilcox, chief executive officer and chairman of the board of directors, owned 60 percent of the shares of Sterling Corporation. When the market price of Sterling’s shares was $22 per share, Wilcox sold all of his shares in Sterling to Conrad for $29 per

> Sinclair Oil Corporation organized a subsidiary, Sinclair Venezuelan Oil Company (Sinven) for the purpose of operating in Venezuela. Sinclair owned about 97 percent of Sinven’s stock. Sinclair nominates all members of Sinven’s board of directors, and non

> A closely held corporation sought to repurchase 25 percent of its outstanding shares from one of its shareholders. The corporation and the shareholder agreed that the corporation would purchase all of the shareholder’s stock at a price of $500,000, payab

> In May, Parr and Presba, while in the course of negotiations with Barker (a salesperson for Quaker Hill) to purchase plants and flowers, undertook to organize a corporation to be named the Denver Memorial Nursery, Inc. On May 14 and 16, Parr signed two o

> On April 5, Handy contracted to purchase land with the intent of forming a limited liability company (LLC) with Ginsburg and McKinley for the purpose of building a residential community on the property. On April 21, they learned from Coastal, an environm

> Stroud and Freeman are general partners in Stroud’s Food Center, a grocery store. Nothing in the articles of partnership restricts the power or authority of either partner to act in respect to the ordinary business of the Food Center. In November, howeve

> Chaiken entered into separate but nearly identical agreements with Strazella and Spitzer to operate a barber shop. Under the terms of the “partnership” agreements, Chaiken would provide barber chairs, supplies, and licenses, while the other two would pro

> Sonenberg Company managed Westchester Manor Apartments through its on-site property manager, Judith. Manor Associates Limited Partnership, whose general partner is Westchester Manor, Ltd., owned the complex. The entry sign to the property did not reveal

> Western Rivers Fly Fisher (Western) operates under license of the U.S. Forest Service as an “outfitter,” a corporation in the business of arranging fishing expeditions on the Green River in Utah. Michael D. Petragallo is licensed by the Forest Service as

> John Connelly suffered personal injuries when a tire manufactured by Uniroyal failed while his 1969 Opel Kadett was being operated on a highway in Colorado. Connelly’s father had purchased the automobile from a Buick dealer in Evanston, Illinois. The tir

> Trans-Aire International, Inc. (TAI), converts ordinary automotive vans into recreational vehicles. TAI had been installing carpet and ceiling fabrics in the converted vans with an adhesive made by the 3M Company. Unfortunately, during the hot summer mon

> Alabama was one of only sixteen states that permitted commercial hazardous waste landfills. From 1985 through 1989, the tonnage of hazardous waste received per year more than doubled. Of this, up to 90 percent of the hazardous waste was shipped in from o

> Section 7 (a)(2) of the Endangered Species Act of 1973 (ESA) provides (in relevant part) that [e]ach Federal agency shall, in consultation with and with the assistance of the Secretary (of the Interior), insure that any action authorized, funded, or carr

> Olivo was in the hardware area of a department store. A security guard saw him look around, take a set of wrenches, and conceal it in his clothing. Olivo looked around once more and proceeded toward an exit, passing several cash registers. The guard stop

> Edith Mitchell, accompanied by her thirteen-year-old daughter, went through the checkout at Walmart and purchased several items. As they exited, the Mitchells passed through an electronic antitheft device, which sounded an alarm. Robert Canady, employed

> Rebecca S. Dukat arrived at Mockingbird Lanes, a bowling alley in Omaha, Nebraska, at approximately 6:00 P.M. to bowl in her league game. The bowling alley’s parking lot and adjacent sidewalk were covered with snow and ice. Dukat proceeded to walk into t

> Richardson hired J. C. Flood Company, a plumbing contractor, to correct a stoppage in the sewer line of her house. The plumbing company’s “snake” device, used to clear the line leading to the main sewer, became caught in the underground line. To release

> Cushing filed an application with the office of the Adjutant General of the State of New Hampshire for the use of the Portsmouth Armory to hold a dance on the evening of April 29. The application, made on behalf of the Portsmouth Area Clamshell Alliance,

> Mrs. Audrey E. Vokes, a widow of fifty-one years and without family, purchased fourteen separate dance courses from J. P. Davenport’s Arthur Murray, Inc., School of Dance. The fourteen courses totaled in the aggregate 2,302 hours of dancing lessons at a

> Anna Feinberg began working for the Pfeiffer Company in 1965 at age seventeen. By 2002, she had attained the position of bookkeeper, office manager, and assistant treasurer. In appreciation for her skill, dedication, and long years of service, the Pfeiff

> EarthWeb provided online products and services to business professionals in the information technology (IT) industry. EarthWeb operated through a family of websites offering information, products, and services for IT professionals to use for facilitating

> For more than 40 years, Rose Cipollone smoked between one and two packs of cigarettes a day. Upon her death from lung cancer, Rose’s husband, Antonio Cipollone, filed suit against Liggett Group, Inc., Lorillard, Inc., and Philip Morris, Inc., three of th

> Joseph Eugene Dodson, age sixteen, purchased a used pickup truck from Burns and Mary Shrader. The Shraders owned and operated Shrader’s Auto Sales. Dodson paid $14,900 in cash for the truck. At the time of sale, the Shraders did not question Mr. Dodson’s

> Stuart Studio, an art studio, prepared a new catalog for the National School of Heavy Equipment, a school run by Gilbert and Donald Shaw. When the artwork was virtually finished, Gilbert Shaw requested Stuart Studio to purchase and supervise the printing

> Pizza of Gaithersburg and The Pizza Shops contracted with Virginia Coffee Service (Virginia) to install vending machines in each of their restaurants. One year later, the Macke Company (a provider of vending machines) purchased Virginia’s assets, and the

> Associated Builders, Inc., provided labor and materials to William M. Coggins and Benjamin W. Coggins, doing business as Ben & Bill’s Chocolate Emporium, to complete a structure on Main Street in Bar Harbor, Maine. After a dispute arose regarding compens

> Sanders agreed in writing to write, direct, and produce a motion picture on the subject of lithography (a method for printing using stone or metal) for the Tamarind Lithography Workshop. After the completion of this film, Four Stones for Kanemitsu, litig

> Terminal Grain Corporation brought an action against Glen Freeman, a farmer, to recover damages for breach of an oral contract to deliver grain. According to Terminal Grain, Freeman orally agreed to two sales of wheat to Terminal Grain of four thousand b

> On February 26, 2014, William Stem purchased a used BMW from Gary Braden for $26,600. Stem’s primary purpose for buying the car was to use it to drive his child to school and various activities. Braden indicated to Stem that the car had not been wrecked

> Harrison, a men’s clothing retailer located in Westport, Connecticut, ordered merchandise from Ninth Street East, Ltd., a Los Angeles–based clothing manufacturer. Ninth Street delivered the merchandise to Denver-Chicago Trucking Company (Denver) in Los A

> Brian Felley purchased a used Ford Taurus from Thomas and Cheryl Singleton for $8,800. The car had 126,000 miles on it. After test driving the car, Felley discussed the condition of the car with Thomas Singleton, who informed Felley that the only thing k

> Daniel Martin and John Duke contracted with J & S Distributors, Inc., to purchase a KIS Magnum Speed printer for $17,000. The parties agreed that Martin and Duke would send one-half of the money as a deposit and would pay the balance upon delivery. They