Woodsmill Park Limited Partnership borrowed $6.2 million secured by real property in Chicago, Illinois. Bill and Brian Bruce, and Matthew O’Malley, signed guaranties to meet Woodsmill’s obligation on the loan. Woodsmill defaulted on the payments. Northbrook Bank & Trust Company filed an action in an Illinois state court against Woodsmill and the Bruces to foreclose on the property. The defendants agreed to modify the contract to resolve the claim. In exchange for Northbrook not pursuing foreclosure' data-toggle="tooltip" data-placement="top" title="Click to view definition...">foreclosure proceedings, the defendants promised to pay the difference between the value of the property and the unpaid amount of the loan. As part of the contract modification, the parties also stipulated, “Nothing in this Agreement shall release or reduce O’Malley’s obligations under O’Malley’s Guaranty.” Was it ethical of Northbrook and the Bruces to agree to these terms? Explain.
> Suppose that Sierra stated she was eighteen years old when she signed the arbitration agreement. How might this affect her right to disaffirm it?
> Did Sierra have the contractual capacity to enter into a contract? Why or why not?
> Steven wants to make a binding promise to give $30,000 of stock in DP Chemical Corporation to his son Doug. Knowing that a gratuitous promise is not binding, Steven writes out and signs a false statement that says Doug presented him with an expensive ca
> Gustavo offers to buy Donna’s business—Donna’s Dry Cleaners—and to pay Donna $50,000 in exchange. Donna accepts and gives the keys to the shop and papers of ownership to Gustavo. Is there consideration for Gustavo’s promise?
> When would one party’s acceptance of the other’s terms have been considered binding in this situation?
> How can an offeror or offeree terminate an offer?
> Assuming that the parties had not included an expiration date for their settlement offers and could revoke them at any time, what actions might have constituted an effective revocation?
> Suppose that the concertgoer claimed to have recorded the concert by “mistake.” Would a court accept such an assertion to excuse a party’s breach?
> Define the terms contract, promise, and breach of contract.
> Suppose that a foreign nation does not prosecute cyber criminals and does not cooperate with U.S. authorities to investigate cyber crimes against U.S. citizens. What effect might this have on the deterrence or proliferation of cyber crime?
> Why will cyber crime always be a worldwide problem?
> Suppose that the site using candyland.com had not been sexually explicit but had sold candy. Would the result have been the same? Explain.
> How can companies protect themselves from others who create Web sites that have similar domain names, and what limits each company’s ability to be fully protected?
> What is the purpose of tort law?
> What is a tort?
> Why might protection of commercial speech be limited?
> What do formal contracts require to be enforceable?
> When and why does a court apply the decision of another court to determine the result in a case?
> Is the free flow of commercial information essential to a free enterprise system? Why?
> Imagine that Ace Corporation employs sales representatives in New York to market Ace products in that state. Ace has no offices in New York, however, and does not keep any inventory there. Could a New York state court exercise jurisdiction over Ace?
> Would the answer to this problem be different if Rob were a corporation, or other business, instead of an individual?
> If a corporation fails to conduct its operations ethically or respond quickly to an ethical crisis, what might happen?
> What should be the measure of corporate responsibility?
> What are statutes?
> What are the differences between remedies at law and in equity?
> What overall effect do the principle of comity and the other international legal doctrines discussed here have on the protection for U.S. firms that own property abroad?
> What is the principle of comity, and why do courts deciding disputes involving a foreign law or judicial decree apply this principle?
> Apple, Inc., controls which apps—such as ringtones, instant messaging, and video—can run on its iPhone software. Apple’s App Store is a website where iPhone users can buy and download the apps. Apple prohibits third-party developers from selling iPhone a
> Which steps normally establish an implied contract?
> Should all commercial arrangements subject to the antitrust laws be evaluated under the rule of reason? Discuss.
> The Delaware River Port Authority (DRPA) solicited bids to repaint the Commodore Barry Bridge, a mile-long structure spanning the Delaware River between New Jersey and Pennsylvania. Alpha Painting & Construction Company, an experienced contractor that ha
> Should an individual or organization sue an agency before the agency takes formal enforcement action? Discuss your answer.
> Ann Dewey’s financial planner, Timothy Bultman, referred her to his friend Robert Wilmot for estate-planning services. Wilmot did not know Dewey, her family situation, or anything about her affairs until they met. He drafted a will for her and named hims
> Under what circumstances might it be appropriate to ignore the provisions in a will?
> F.A. Investment Group, Inc., owned an apartment building in Philadelphia, Pennsylvania. Over a two-year period, the city cited F.A. Investment for a variety of housing code violations. These violations included failure to maintain regular electrical serv
> What is a landlord’s ethical duty with respect to keeping rental premises “fit for human habitation”?
> Class A Investors Post Oak and the Cosmopolitan Condominium Owners Association each owned adjacent pieces of property in Houston, Texas. Each organization planned to build a high-rise tower on its lot. They signed an agreement that granted each of them a
> What public policies might underlie the doctrine of adverse possession
> KZY Logistics, LLC, transported a load of Mrs. Ressler’s Food Products from New Jersey to California. When KZY’s driver delivered the cargo, the customer rejected it—its temperature was higher than expected, making it unsafe. Mrs. Ressler’s filed a suit
> Identify the element that is of prime importance in determining whether a contract has been formed.
> What standard of care over bailed property should be expected of bailees?
> Mansoor Akhtar lived rent-free in the basement of Anila Dairkee’s duplex in Minneapolis, Minnesota, for more than a year. When Dairkee asked Akhtar to move out, he refused. She then changed the locks and advised him to remove his property from the duplex
> Is it unethical to download a digital file without the owner’s permission? Discus.
> Bernd Moving Systems owned a warehouse in Yakima, Washington. American Guarantee & Liability Insurance Company insured Bernd under a policy that included coverage of “Personal property of others in your care, custody and control.” Before storing property
> Should an insurance agent be held to a duty to advise applicants about coverage? Why or why not?
> Jevic Transportation Corporation filed a petition in a federal bankruptcy court for a Chapter 11 reorganization. A group of former Jevic truck drivers filed a suit and won a judgment against the firm for unpaid wages. This judgment entitled the workers t
> What are some of the factors that might be considered in deciding whether a debtor should be allowed to declare bankruptcy?
> Carmen Johnson operated CJ Lending as a so-called credit-repair business. Real estate agent Edgar Tibakweitira paid Johnson to fabricate credit histories for certain individuals who had no such histories. Johnson submitted the data to credit-reporting ag
> What purpose is served by the seizure and sale of property on the mortgagor’s default? Why notify the mortgagor of the foreclosure?
> Define contract.
> Does the potential harm of allowing a creditor to repossess collateral on a debtor’s default, without going to court, outweigh the benefit? Discuss.
> Ian Bell loaned $250,000 to Bio Defense Corporation, a waste management company in Massachusetts. Before Bell’s loan came due, Boston Local Development Corp. (BLDC) foreclosed on its own loan to Bio Defense, forcing Bio Defense to cease operations and be
> Why should shareholders be required to approve certain types of corporate actions?
> Hewlett-Packard Company (HP) monitored the phones of its directors to find the sources of leaks of company information to the media. When the government learned of the monitoring, criminal charges were brought against HP’s officers. Mark Hurd, HP’s chief
> Under what circumstances might a director’s sale of corporate property to himself or herself be justified?
> Lester Fulmer sold H2O Lifts and Ramps, LLC (H2O), to Hurt-Hoover Investments, LLC (HHI). HHI agreed to pay $550,000 of the price by a note in thirty-six installments. From the installments, HHI deducted offsets, including charges for expenses incurred b
> Why do companies need to be careful about whom they hire and how much they supervise or monitor their employees?
> Tom George was the sole owner of Turbine Component Super Market, LLC (TCSM), when its existence was terminated by the state of Texas. Turbine Resources Unlimited filed and won a suit in a Texas state court against George for breach of contract. The plain
> Why should partnership agreements be in writing?
> McLane Company supplies and distributes goods to retailers. McLane requires employees with physically demanding jobs to take physical evaluations. Damiana Ochoa had such a job with McLane for eight years before she took maternity leave. When she returned
> How are trade secrets protected by the law?
> Should English-only policies in the workplace be considered a form of national-origin discrimination? Explain.
> Split Rail Fence Company sells and installs fencing materials in Colorado. U.S. Immigration and Customs Enforcement (ICE) sent Split Rail a list of the company’s employees whose documentation did not satisfy the Form I-9 employment eligibility verificati
> Should workers’ compensation be denied to a worker who is injured off the employer’s premises, regardless of the reason the worker is off the premises? Why or why not?
> Devin Fink was the manager of Precision Tune Auto Care in Charlotte, North Carolina. Randall Stywall brought her car to the shop to have its rear shocks replaced. Fink filled out the service order, which included a cost estimate. Later, Stywall returned
> Are there situations in which the duty of loyalty could conflict with other duties? Explain your answer.
> While working as David Ducote’s assistant, Michelle Freytag fraudulently obtained a credit card in his name from Whitney National Bank in Louisiana. Freytag told the bank to pay the credit card balances with funds from Ducote’s bank account. The bank sen
> Why should a customer have to report a forged or unauthorized signature on a paid check within a certain time to recover the amount of the payment?
> Should a bank that acts in “bad faith” be barred from raising the fictitious payee rule as a defense? Explain your answer.
> Why is good faith required to attain HDC status?
> Should legal problems be anticipated? Why and why not?
> How is cyber crime distinguished from other crimes?
> Carlos Pardo signed a note to obtain $627,500 to buy a house in Stamford, Connecticut. The note was secured by a mortgage. Later, Pardo signed a loan modification agreement that increased the balance due. The modification was not referenced in the note.
> Should the requirements for negotiability be strictly enforced? Explain your answer.
> In Richland, Washington, Robert Ingersoll planned his wedding to include one hundred guests, a photographer, a caterer, a wedding cake, and flowers. Ingersoll had been a customer of Arlene’s Flowers and Gifts for more than nine years and had spent severa
> Suppose a borrower attempts to avoid paying a debt by asserting that a creditor’s unintended failure to comply with a strict legal requirement excuses the obligation. Should consumer protection laws be strictly enforced when a consumer appears to abuse t
> George Gregory is a competitive shotgun shooter. When the top and bottom ribs of his Winchester Model 21 became loose, he sent it to Connecticut Shotgun Manufacturing Company (CSM) for repairs. While CSM was working on the Model 21, Gregory contacted Lou
> Do pharmacists have a duty to warn customers about the side effects of drugs?
> Samsung Telecommunications America, LLC, makes Galaxy phones. Daniel Norcia bought a Galaxy S4 phone at a Verizon store in San Francisco, California. A Verizon employee opened the box, unpacked the phone, and helped Norcia transfer his contacts to the ne
> How does the doctrine of commercial impracticability attempt to balance the rights of both parties to a contract?
> Indiana enacted the Vapor Pens and E-Liquid Act to regulate the manufacture and distribution of e-cigarettes. The act was based on the state’s interest in public health and safety. Requirements included childproof packaging and labels designating active
> If the parties to a contract do not specify when the risk of loss passes, the risk generally rests with the party who has possession of the goods or the right to their possession. Why is this the rule?
> When can a person refuse to give information to law enforcement officers?
> Camal Terry signed a “Sales Contract” to buy a 1995 BMW 3 Series from Robin Drive Auto, a car dealership in Delaware. Terry agreed to pay $4,995 and Robin Drive agreed to hold the BMW for him in contemplation of a sale within twenty-one days. Also specif
> Should merchants be required to act in good faith? Why or why not?
> Lisa Goldstein reserved space for a wedding in a building owned by Orensanz Events, LLC, in New York City. The rental agreement provided that on cancellation of the event “for any reason beyond” Orensanz’s control, the client’s sole remedy was another da
> Should the courts allow the defense of impossibility of performance to be be used more often?
> The Health Care Providers Self Insurance Trust (the trust) provided workers’ compensation coverage to the employees of its members, including Accredited Aides Plus, Inc. The trust contracted with Program Risk Management, Inc. (PRM), to serve as the progr
> Should incidental beneficiaries have any legal recourse against parties who do not perform their contracts? Why or why not?
> Robert and Lynette Knigge owned a B&L Food Store in Redfield, South Dakota. Robert, diagnosed with brain cancer and given five months to live, entered into an oral contract with his brother, David, to manage the store. Robert died five months after the d
> Should prenuptial agreements be enforced if one party did not have the advice of counsel? Discuss.
> Data Consulting Group contracted with Weston Medsurg Center—a health-care facility in North Carolina—to install, maintain, and manage Weston’s computers and software. At about the same time, Ginger Blackwood began to work for Weston as a medical billing
> Is honesty an implicit duty of every employee? Discuss.
> What is the definition of white-collar crime?
> Surya Challa worked for TransUnion Risk and Alternative Data Solutions, Inc. (TRADS), a data fusion company. Under a covenant not to compete, Challa agreed to not work for any TRADS’s competitor for one year after the end of his employment. Challa quit h
> How can states enforce gambling laws in the age of the Internet?
> Sky High Sports Nashville Operations, LLC, operated a trampoline park in Nashville, Tennessee. During a dodgeball tournament at Sky High, Jacob Blackwell, a minor, suffered a torn tendon and a broken tibia. His mother, Crystal, filed a lawsuit on his beh
> Should the goal of protecting minors from the consequences of unwise contracts ever outweigh the goal of encouraging minors to behave in a responsible manner? Discuss.
> Carmen White signed a lease with Sienna Ridge Apartments in San Antonio, Texas. The lease required White to reimburse Sienna Ridge for any damage to the apartment not caused by the landlord’s negligence or fault. After moving in, White received a new was
> Can a moral obligation satisfy the requirements of consideration? Why or why not?
