The Brineys (defendants) owned a large farm on which was located an abandoned farmhouse. For a ten-year period the house had been the subject of several tres passings and housebreakings. In an attempt to stop the intrusions, Briney boarded up the windows and doors and posted “no trespassing” signs. After one break-in, however, Briney set a spring gun in a bedroom. It was placed over the bedroom window so that the gun could not be seen from outside, and no warning of its presence was posted. The gun was set to hit an intruder in the legs. Briney loaded the gun with a live shell, but he claimed that he did not intend to injure anyone. Katko (plaintiff) and a friend, McDonough, had broken into the abandoned farmhouse on an earlier occasion to steal old bottles and fruit jars for their antique collection. They returned for a second time after the spring gun had been set, and Katko was seriously wounded in the leg when the gun discharged as he entered the bedroom. He then brought action for dam- ages. Decision?
> Peter Diamond owed Carter $500,000 secured by a first mortgage on Diamond’s plant and land. Stephens was a surety on this obligation in the amount of $250,000. After Diamond defaulted on the debt, Carter demanded and received payment of $250,000 from Ste
> Allen, Barker, and Cooper are cosureties on a $750,000 loan by Durham National Bank to Kingston Manufacturing Co., Inc. The maximum liability of the sureties is as follows: Allen, $750,000; Barker, $300,000; and Cooper, $150,000. If Kingston defaults on
> Victor sells to Bonnie a refrigerator for $600 payable in monthly installments of $30 for twenty months. Bonnie signs a security agreement granting Victor a security interest in the refrigerator. The refrigerator is installed in the kitchen of Bonnie’s a
> The Johnson Company, a corporation organized under the laws of State X, after proper authorization by the shareholders, sold its entire assets to the Samson Company, also a State X corporation. Ellen, an unpaid creditor of the Johnson Company, sues the S
> Mitchell, Nelson, Olsen, and Parker, experts in manufacturing baubles, each owned fifteen out of one hundred authorized shares of Baubles, Inc., a corporation in a State with an incorporation statute that does not permit cumulative voting. On July 7, 201
> Old Island Fumigation, Inc., fumigated buildings A and B of a condominium complex using Vikane gas. Buildings A and B, together with building C, form a U shape; buildings B and C have between them an atrium and were thought to be separated by an impenetr
> Almega Corporation, organized under the laws of State S, has outstanding twenty thousand shares of $100 par value nonvoting preferred stock calling for noncumulative dividends of $5 per year; ten thousand shares of voting preferred stock with $50 par val
> Paul Bunyan is the owner of noncumulative 8 percent preferred stock in the Broadview Corporation, which had no earnings or profits in 2019. In 2020, the corporation had large profits and a surplus from which it might properly have declared dividends. The
> Adam, Stanley, and Rosalind formed a partnership in State X to distribute beer and wine. Their agreement provided that the partnership would continue until December 31, 2024. Which of the following events would cause the ABC partnership to dissolve? If s
> Jason, who has extremely poor vision, went to an auto- mated teller machine (ATM) to withdraw $200 on February 1. Joshua saw that Jason was having great difficulty reading the computer screen and offered to help. Joshua obtained Jason’s personal identifi
> Jones drew a check for $1,000 on The First Bank and mailed it to the payee, Thrift, Inc. Caldwell stole the check from Thrift, Inc.; chemically erased the name of the payee; and inserted the name of Henderson as payee. Caldwell also increased the amount
> As payment in advance for services to be performed, Acton signed and delivered the following instrument: December 1, 2021 LAST NATIONAL BANK MONEYVILLE, STATE X Pay to the order of Olaf Owen $10,500.00 Ten Thousand Five Hundred Dollars for services to be
> On April 1, Moore gave Pipkin a check properly drawn by Moore on Zebra Bank for $5,000 in payment of a painting to be framed and delivered the next day. Pipkin immediately indorsed the check and gave it to Yeager Bank as payment in full of his indebtedne
> Jones, a food wholesaler whose company has an account with City Bank in New York City, is traveling in California on business. He finds a particularly attractive offer and decides to buy a carload of oranges for delivery in New York. He gives Saltin, the
> Assume that Dinah draws a check on Oxford Bank, payable to the order of Pam; that Pam indorses it to Amy; that Amy deposits it to her account in Houston Bank; that Houston Bank presents it to Oxford Bank, the drawee; and that Oxford Bank dishonors it bec
> Tom Jones owed Bank of Cleveland $10,000 on a note due November 17, with 1 percent interest due the bank for each day delinquent in payment. Jones issued a $10,000 check to Bank of Cleveland and deposited it in the night vault the evening of November 17.
> The MacGilvray Shiras was a ship owned by the Kinsman Transit Company. During the winter months, when Lake Erie was frozen, the ship and others moored at docks on the Buffalo River. As oftentimes happened, one night an ice jam disintegrated upstream, sen
> Howard Harrison, a longtime customer of Western Bank, operates a small department store, Harrison’s Store. Because his store has few experienced employees, Harrison frequently travels throughout the United States on buying trips, although he also runs th
> Advanced Alloys, Inc., issued a check in the amount of $2,500 to Sergeant Steel Corporation. The check was presented for payment fourteen months later to the Chase Manhattan Bank, which made payment on the check and charged Advanced Alloy’s account. Can
> On July 21, Boehmer, a customer of Birmingham Trust, secured a loan from that bank for the principal sum of $5,500 to purchase a boat allegedly being built for him by A.C. Manufacturing Company, Inc. After Boehmer signed a promissory note, Birmingham Tru
> On November 9, Jane Jones writes a check for $5,000 payable to Ralph Rodgers in payment for goods to be received later in the month. Before the close of business on November 9, Jane notifies the bank by telephone to stop payment on the check. On December
> Jack stole a check made out to the order of Bertha. Jack forged Bertha’s name on the back and made the instrument payable to himself. Jack then transferred the check to Sun for cash by signing his name on the back of the check in Sun’s presence. Sun was
> On July 1, Anderson sold D’Aveni, a jeweler, a necklace containing imitation gems, which Anderson fraudulently represented to be diamonds. In payment for the necklace, D’Aveni executed and delivered to Anderson her promissory note for $25,000 dated July
> In payment of the purchase price of a used motorboat that had been fraudulently misrepresented, Young signed and delivered to Armstrong his negotiable note in the amount of $2,000 due October 1, with Selby as an accommodation co-maker. Young intended to
> Alpha orally appointed Omega as his agent to find and purchase for him a 1930 Dodge automobile in good condition, and Omega located such a car. Its owner, Roe, agreed to sell and deliver the car on January 10, 2021, for $9,000. To evidence the purchase p
> Tate and Fitch were longtime friends. Tate was a man of considerable means; Fitch had encountered financial difficulties. To bolster his failing business, Fitch desired to borrow $6,000 from Farmers Bank of Erehwon. To accomplish this, he persuaded Tate
> On June 15, 2016, Justin, for consideration, executed a negotiable promissory note for $10,000, payable to Renee on or before June 15, 2021. Justin subsequently suffered financial reverses. In January 2021, Renee on two occasions told Justin that she kne
> Pro Golf Manufacturing, Inc., manufactures and repairs golf equipment as well as gives golf lessons. On September 27, the Tribune Review newspaper published an article stating that several historic buildings, including the building housing Pro Golf ’s bu
> A negotiable promissory note executed and delivered by B to C passed in due course and was indorsed in blank by C, D, E, and F. G, the present holder, strikes out D’s indorsement. What is the liability of D on her indorsement?
> While employed as a night security guard at the place of business of A. B. Cate Trucking Company, Fred Fain observed that the office safe had been left unlocked. It contained fifty payroll checks, which were ready for distribution to employees two days l
> $900.00 Smalltown, Illinois Maker, November 15, 2021 The undersigned promises to pay to the order of John Doe Nine Hundred Dollars with interest from date of note. Payment to be made in five monthly installments of One Hundred Eighty Dollars, plus accrue
> On December 2, 2021, Miles executed and delivered to Proctor a negotiable promissory note for $1,000, payable to Proctor or order, due March 2, 2022, with interest at 14 percent from maturity, in partial payment of a printing press. On January 3, 2022, P
> Adams, by fraudulent representations, induced Barton to purchase one hundred shares of the capital stock of the Evermore Oil Company. The shares were worthless. Barton executed and delivered to Adams a negotiable promissory note for $5,000, dated May 5,
> McLaughlin borrowed $10,000 from Adler, who, apprehensive about McLaughlin’s ability to pay, demanded security. McLaughlin indorsed and delivered to Adler a negotiable promissory note executed by Topping for $12,000 payable to McLaughlin’s order in twelv
> On January 2, 2021, seventeen-year-old Martin paid $2,000 for a used motorboat to use in his fishing business, after Dealer’s fraudulent misrepresentation of the condition of the boat. Martin signed an installment contract for $1,500, and gave Dealer the
> Adams, who reads with difficulty, arranged to borrow $2,000 from Bell. Bell prepared a note, which Adams read laboriously. As Adams was about to sign it, Bell diverted Adams’s attention and substituted the following paper, which was identical to the note
> Roy Rand executed and delivered the following note to Sue Sims: “Chicago, Illinois, June 1, 2021; I promise to pay to Sue Sims or bearer, on or before July 1, 2021, the sum of $7,000. This note is given in consideration of Sims’s transferring to the unde
> The following instrument was given to Matthew Andrea: Chapel Hill, N.C. April 15, 2021 Ninety days after date pay to the order of Matthew Andrea, seven hundred and fifty dollars ($750). Value received and charge the trade account of Olympia Sales Corp.,
> On July 31, Amanda Vaughn and Jason Vaughn accompanied their mother, Emma Simpson Vaughn, to a Walmart store. Amanda’s friend, Kimberly Dickerson, was also with them. Once they entered the store, Mrs. Vaughn and Jason went into separate areas of the stor
> Explain whether the following instrument is negotiable. March 1, 2021 One month from date, I, James Jimson, hereby promise to pay Edmund Edwards: Six thousand, Seven hundred Fifty ($6,750.00) dollars, plus 4 3/4% interest. Payment for cutting machines to
> Sam Sharpe executed and delivered to Don Dole the following instrument: Knoxville, Tennessee May 29, 2021 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 t
> For the balance due on the purchase of a tractor, Henry Brown executed and delivered to Jane Jones his promissory note containing the following language: January 1, 2021, I promise to pay to the order of Jane Jones the sum of $7,000 to be paid only out o
> Henry Hughes, who operates a department store, executed the following instrument: $2,600 Chicago, March 5, 2021 On July 1, 2021, I promise to pay Daniel Dalziel, or order, the sum of Twenty-Six Hundred Dollars for the privilege of one framed advertising
> On March 10, Tolliver Tolles, also known as Thomas Towle, delivered to Alonzo Craig and Abigail Craig the following instrument, written by him in pencil: For value received, I, Thomas Towle, promise to pay to the order of Alonzo Craig or Abigail Craig On
> State whether the following provisions in a note impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with the word Negotiable or Nonnegotiable and explain why. a. A note signed by Henry
> State whether the following provisions impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with either the word “Negotiable” or “Nonnegotiable” and explain why. a. A note for $2,000 paya
> On December 15, Judy wrote a letter to David stating that she would sell to David all of the mine-run coal that David might wish to buy during the next calendar year for use at David’s factory, delivered at the factory at a price of $30 per ton. David im
> Mae contracted to sell one thousand bushels of wheat to Lloyd at $5 per bushel. Just before Mae was to deliver the wheat, Lloyd notified her that he would not receive or accept the wheat. Mae sold the wheat for $4.60 per bushel, the market price, and lat
> Brilles offered to sell his used automobile to Nevarro for $12,600 cash. Nevarro agreed to buy the car, gave Brilles a check for $12,600, and drove away in the car. The next day Nevarro sold the car for $13,000 to Hough, a bona fide purchaser. The $12,60
> Garvey owned four speedboats named Porpoise, Priscilla, Providence, and Prudence. On April 2, Garvey made written offers to sell the four boats in the order named for $14,200 each to Caldwell, Meens, Smith, and Braxton, respectively, allowing ten days fo
> Gardner owned a quantity of corn, which was contained in a corncrib located on Gardner’s farm. On March 12, Gardner wrote a letter to Bassett stating that he would sell to Bassett all of the corn in this crib, which he estimated at between nine hundred a
> Seller had manufactured forty thousand pounds of plastic resin pellets specially for the 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 owned a hardware store, was indebted to Hutchinson, one of her suppliers. Johnson sold her business to Lockhart, one of Johnson’s previous competitors, who combined the inventory from Johnson’s store with his own and moved them to a new, lar
> Yount told Lewis he wished to buy Lewis’s automobile. He drove the car for about ten minutes, returned to Lewis, stated he wanted to take the automobile to show it to his wife, and then left with the automobile and never returned. Yount sold the automobi
> Explain how the result in Question 3 might change if the U.S. Electronics form contained any of the following provisions: a. “The seller’s acceptance of the purchase order to which this acknowledgment responds is expressly made conditional on the buyer’
> Browne & Assoc., a San Francisco company, orders from U.S. Electronics, a New York company, ten thousand electronic units. Browne & Assoc.’s order form provides that any dispute would be resolved by an arbitration panel located in San Francisco. U.S. Ele
> In Question 1, explain what effect, if any, would the fol- lowing letter have? International Widget: In accordance with our agreement of this date, you will deliver the one thousand previously ordered widgets within thirty days. Thank you for your cooper
> Adams orders one thousand widgets at $5 per widget from International Widget to be delivered within sixty days. After the contract is consummated and signed, Adams requests that International deliver the widgets within thirty days rather than sixty days.
> In October 2015, Black, the owner of the Grand Opera House, and Harvey entered into a written agreement leasing the Opera House to Harvey for five years at a rental of $300,000 per year. Harvey engaged Day as manager of the theater at a salary of $1,175
> Webster, Inc., dealt in automobile accessories at whole- sale. Although he manufactured a few items in his own factory, among them windshield wipers, Webster purchased most of his inventory from a large number of other manufacturers. In January, Webster
> In March, William Proxmire, a U.S. senator from Wisconsin, initiated the “Golden Fleece of the Month Award” to publicize what he believed to be wasteful government spending. The second of these awards was given to the Federal agencies that had for seven
> Rachel bought a car from the Beautiful Used Car Agency under a written contract. She purchased the car in reliance on Beautiful’s agent’s oral representations that it had never been in a wreck and could be driven at least two thousand miles without addin
> Grant leased an apartment to Epstein for the term May 1, at $750 a month “payable in advance on the first day of each and every month of said term.” At the time the lease was signed, Epstein told Grant that he received his salary on the tenth of the mont
> Clay orally promises Trent to sell him five crops of potatoes to be grown on Blackacre, a farm in Minnesota, and Trent promises to pay a stated price for them on delivery. Is the contract enforceable? Explain.
> In a contract drawn up by Booke Company, it agreed to sell and Yermack Contracting Company agreed to buy wood shingles at $950 per bunch. After the shingles were delivered and used, Booke Company billed Yermack Company at $950 per bunch of nine hundred s
> Daniel, while under the influence of alcohol, agreed to sell his used automobile to Belinda for $13,000. The next morning, when Belinda went to Daniel’s house with the $13,000 in cash, Daniel stated that he did not remember the transaction but that “a de
> Ira, who in 2017 had been found innocent of a criminal offense because of insanity, was released from a hospital for the criminally insane during the summer of 2018 and since that time has been a reputable and well-respected citizen and businessperson. O
> On October 1, George Jones entered into a contract with Johnson Motor Company, a dealer in automobiles, to buy a used car for $10,850. He paid $1,100 down and, under the agreement, was to make monthly payments thereafter of $325 each. Jones was seventeen
> On May 7, Roy, a minor, a resident of Smithton, purchased an automobile from Royal Motors, Inc., for $18,750 in cash. On the same day, he bought a motor scooter from Marks, also a minor, for $750 and paid him in full. On June 5, two days before attaining
> Jones, a minor, owned a 2019 automobile. She traded it to Stone for a 2020 car. Jones went on a three-week trip and found that the 2020 car was not as good as the 2019 car. She asked Stone to return the 2019 car but was told that it had been sold to Tate
> Consider the same facts as in Question 8, but assume that the price was $350. Benson, nevertheless, wishes to avoid the contract based on the allegation that Carl befriended and tricked him into the purchase. Discuss.
> Plaintiff, John W. Carson, was the host and star of The Tonight Show, a well-known television program broad- cast by the National Broadcasting Company. Carson also appeared as an entertainer in nightclubs and theaters around the country. From the time he
> Carl, a salesman for Smith, comes to Benson’s home and sells him a complete set of “gourmet cooking utensils” that are worth approximately $300. Benson, an eighty year-old man living alone in a one-room efficiency apartment, signs a contract to buy the u
> On April 30, 2019, Barack and Donald entered into a bet on the outcome of the 2019 Kentucky Derby. On January 28, 2020, Barack, who bet on the winner, approached Donald, seeking to collect the $3,000 Donald had wagered. Donald paid Barack the $3,000 wage
> The Dear Corporation was engaged in the business of making and selling harvesting machines. It sold everything pertaining to its business to the ABC Company, agreeing “not again to go into the manufacture of harvesting machines anywhere in the United Sta
> Anthony promises to pay McCarthy $10,000 if McCarthy informs the public that Washington is a Communist. Washington is not a Communist and never has been. McCarthy successfully persuades the media to report that Washington is a Communist and now seeks to
> Makayla was a Java programmer employed with Sun Microsystems in Palo Alto, California. Upon beginning employment, Makayla signed a contract that included a noncompete clause that prevented her, within three months of terminating her employment, from taki
> A company prohibits any employee from making disparaging comments about the company through any social media—including online blogs, email, tweets, and other electronic media. Violation of this rule is grounds for dismissal. Explain whether this rule is
> A company adopts a policy that (a) prohibits romantic relationships between employees of different ranks and (b) permits romantic relationships between employees of the same rank only if both employees waive in writing their rights to sue the company sh
> How should the financial interests of stockholders be balanced with the varied interests of stakeholders? If you were writing a code of conduct for your company, how would you address this issue?
> Explain what relevance ethics has to business.
> You are a project manager for a company making a major proposal to a Middle Eastern country. Your major competition is from Japan. a. Your local agent, who is closely tied to a very influential sheikh, would receive a 5 percent commission if the proposal
> On February 10, Kelm secured a loan for $6,000 from Ms. Joan Williams. Kelm told Williams that the loan was to finance a real estate transaction. Five days later, Ms. Williams received a check drawn by Kelm in the amount of $6,000 from Kelm’s attorney. A
> a. Ann owed $2,500 to Barry for services Barry rendered to Ann. The debt was due June 30, 2019. In March 2020, the debt was still unpaid. Barry was in urgent need of ready cash and told Ann that if she would pay $1,500 of the debt at once, Barry would re
> Negligent in failing to give warning of the approach of its train to a crossing, CC Railroad thereby endangers Larry, a blind man who is about to cross. Mildred, a bystander, in a reasonable effort to save Larry, rushes onto the track to push Larry out o
> Willie Mae Arant executed her Last Will and Testament in her home with two witnesses present. The original will could not be found after Arant’s death, so a copy of the will was filed and admitted in Probate Court. The will left the bulk of the estate to
> By his last will and testament, Henry Nussbaum made a residual bequest and devise of his estate to his niece, Jane Blair, as trustee, in trust for the education of his grandchildren. If the trust could not be fulfilled, the residue was to revert to the p
> Rodney Sharp was a fifty-six-year-old dairy farmer whose education did not go beyond the eighth grade. Upon the death of his wife of thirty-two years, Sharp developed a very close relationship with Jean Kosmalski, a schoolteacher sixteen years his junior
> In May 2011, Fred Parramore executed four deeds, each conveying a life estate in his land to him and his wife and a remainder interest in one-fourth of his land to each of his four children: Alney, Eudell, Bernice, and Iris. Although Fred executed and ac
> Barba & Barba Construction, Inc., constructed a multilevel addition to a single-family house in Glenview, Illinois. Before the addition, the residence consisted of approximately 2,300 square feet. After the addition, the house consisted of approximately
> Sam and Eleanor Gaito purchased a home from Howard Frank Auman, Jr., in the spring of 2018. Auman had completed the construction of the house in November 2013. In the interim, three different parties had lived in the house for brief periods, but Auman ha
> The Gerwitz family resides on a piece of land known as Lot #24 of the Belleville tract, which they acquired by deed in 2002. Shortly thereafter, the Gerwitzes began to use the adjacent vacant Lot #25. At various times, they planted grass seed, flowers, a
> Fay and Loretta O’Connell were married and owned several bank accounts as joint tenants with rights of survivorship. While accompanied by Loretta’s sister, Mary Ann, Fay went to the banks where Fay and Loretta had joint accounts and withdrew all the fund
> A Massachusetts statute established differential methods by which wineries may distribute wines in Massachusetts. The statute allows only “small” wineries, defined as those producing 30,000 gallons or less of grape wine a year, to obtain a “small winery
> On January 14, 2017, Eura Mae Redmon deeded land to her daughter, Melba Taylor, and two sons, W. C. Sewell and Billy Sewell, “jointly and severally, and unto their heirs, assigns and successors forever,” with the grantor retaining a life estate. W. C. Se
> Clayton and Margie Gulledge owned a house at 532 Somerset Place, N.W. (the Somerset property) as ten- ants by the entirety. They had three children: Bernis Gulledge, Johnsie Walker, and Marion Watkins. When Margie Gulledge died in 1994, Clayton became th
> Robert and Majorie Wake owned land that they used as both a cattle ranch and a farm. Each spring and autumn, the Wakes would drive their cattle from the ranch portion of the operation across an access road on the farm- land to Butler Springs, which was a
> In 1978, a deed for land in Pitt County was executed and delivered by Joel and Louisa Tyson “unto M. H. Jackson and wife Maggie Jackson, for and during the term of their natural lives and after their death to the children of the said M. H. Jackson and Ma
> On January 1, Mrs. Irene Kern leased an apartment from Colonial Court Apartments, Inc., for a one-year term. When the lease was entered into, Mrs. Kern asked for a quiet apartment, and Colonial assured her that the assigned apartment was in a quiet, well
> In 1993, Ogle was the owner of two adjoining lots numbered 6 and 7 fronting at the north on a city street. In that year, she laid out and built a concrete driveway along and two feet in front of what she erroneously believed to be the west boundary of lo
