Business Law Questions

Business Law 150Final
1.Franklin, a hobby-shop supplier, and Gordon, a hobby-shop owner,
entered into a contract that provided that Franklin would sell Gordon
fifty World War II battleship models at Franklin’s cost of $250 each,
plus a reasonable profit. They couldn’t agree on what a reasonable
profit would be. Gordon brought suit to enforce the contract against
Franklin, who refused to deliver the models. Franklin claimed that
there was no contract because of indefiniteness. Is Franklin correct?
2. Name 4 types of contracts that must be in wring under the Statute
of Frauds
3. Bart was a self-made millionaire who had earned his fortune by
dedicated hard work. Bart had worked so hard that he never had
developed much of a social life.Bart met Linda and fell in love with her.
When Bart proposed to Linda, she told him that she needed time
before making such an important decision. Pressing her for a
favorable response, Bart telephoned Linda and promised her
$100,000 if she would marry him. Linda then accepted the proposal.
Bart contracted with Quick Builders for the construction of a home Bart
intended to move into with Linda after their marriage. Construction by
Quick was not very quick because Quick was not paying
subcontractors the sums that they were owed. They, in turn, were not
completing their work. To expedite matters, Bart called the
subcontractors and assured them that Bart would pay any sums that
Quick Builders did not pay if they would complete the construction.
Bart and Linda married, and the subcontractors completed the work.
Quick Builders did not pay the subcontractors in full. Bart failed to pay
Linda the $100,000. Both Linda and the subcontractors sued Bart.
Discuss the probable outcome of the lawsuits.
4 Janet Jones sold the assets and liabilities of her coin-operated
laundry to Kevin Katz for $10,000. The assets of the business
included all of the washers and dryers. The liabilities included the
amounts still owing on seven new dryers, which had been purchased
recently from Dryer Company under an installment contract. Katz
agreed to make the installment payments on the new dryers as
they came due. After Katz failed to make an installment payment
when it was due, Dryer Company sued Jones. Jones claimed she no
longer was liable. How will the court decide?
5. Cyril made two contracts. The first was to have his house painted
one month from the date of the written contract. The second was for
his neighbor’s 1957 Ford Thunderbird. Each contract was definite and
clear in all respects. As to the house painting, Cyril inquired with the
painter as to when the work could begin. The painter explained that he
was extremely busy and was not sure if he could fulfill the contract.
Cyril flew into a rage and immediately hired someone else who
painted the house, but at a higher price. With regard to the automobile
purchase contract, after signing the contract, the neighbor decided
that she did not wish to sell her car and refused to complete the
transaction. Cyril attempted to purchase a similar car elsewhere, but
the car was a vintage automobile which was not available on the open
market. Cyril sued both the painter and the neighbor. Discuss the
probable outcomes of the lawsuits. What type of damages will Cyril
seek?
6.What types of contracts may be assigned without the other party’s
consent and what type of contracts need consent?
7 Name and briefly describe three types of remedies that someone
can ask for in a court of law if their contract has been breached.
8, Nelson took her computer to ABC Computer for repairs. ABC
repaired the computer at a cost of $350 and informed Nelson that her
computer was ready. Before Nelson came to pick up her computer,
ABC was burglarized, and Nelson’s computer was taken. ABC had a
commonly used alarm system that was operating properly on the night
of the burglary, and all the doors and windows were properly secured.
Nelson sued ABC for the cost of the computer. ABC denied any
liability and counterclaimed for the $350 in repairs. Who will win? Why
9. ABC Corp hired Confidential Corp. to distribute advertising to its
clients through Confidential’s e-mail service. Confidential obtained the
job because of their secure system and they knew that customer lists
were very valuable. ABC paid Confidential $15,000 in advance for the
agreed upon service. Unfortunately, Confidential’s service was hacked
into and ABC’s customer list was stolen by a competitor of ABC. The
list was worth over $150,000. ABC is suing Confidential for damages.
How much should they sue for? What are the arguments?
10. Frank has two interests in property. On property “X,” Frank has a
life estate measured by the life of his Uncle Sal. On property “Y,”
Frank has a fee simple estate. Frank wishes to transfer, upon his
death, his interest in the two properties to his wife, Samantha. Prior to
Frank’s executing his will, Uncle Sal dies. Frank still wishes to leave
the properties to his wife, but he now is uncertain whether he
has the right to do so. Can Frank leave both property interests to
Samantha? Why or why not?
11 Tucker and Hankey were adjoining property owners. Tucker
claimed that the fence separating their properties was not located
properly and that it should be moved back onto Hankey’s land.
Hankey claimed that he owned the strip between the fence and the
alleged boundary line since the fence had been there for so long. He
proved that for forty (40) years there had been on the strip in
question a barn with a cement floor, which had been built by the
person from whom he purchased his land, and that he had been told
by the former owner that the fence was the boundary line. The fence
consisted of five-foot-high barbed wire set in cement. The deeds prove
that the fence actually was built on Tucker’sproperty. Who owns the
strip? Why?
12. Dylan performs services for Columbia Day Care Center. She has
completed the job and is owed $5,000. Due to her excellent credit
rating she has obtained a commitment for a loan from Citibank for
$25,000 and has agreed to borrow the money. However, she has not
yet signed a formal loan agreement. She decides to assign her claim
to the $5,000 and the loan commitment to her friend Alyssa who
needs the money. Columbia refuses to pay Alyssa and Citibank
refuses to give the loan to Alyssa. Alyssa sues both Columbia and
Citibank to enforce the assignments Is Alyssa successful in her suits?
Why or why not?
13. Vacarro gave her son Mark a car on the day Mark left for college.
Vacarro told Mark that she expected him to use the car for school
purposes and to earn good grades. Mark flunked out of college in his
second semester. Vacarro sued to regain title to the car on the ground
that the gift was conditional on Mark’s earning good grades and
remaining in college. Will Vacarro win the case?
14. Humberto called his friend John and asked him to come over
immediately because Humberto had suffered a stroke and might be
dying. In their telephone conversation, Humberto advised John that he
wanted to give John his gold watch. Immediately after their telephone
conversation, Humberto wrote out a will that left his share in Blackacre
to John. Blackacre was the marital home of Humberto and Connie,
who owned the home as tenants by the entirety. Humberto died before
John arrived at Blackacre. John claims the watch and a share in the
home. Connie contests both matters. Decide.
15. A lawyer owned a home next door to a very beat up, neglected
home. Anne Murray purchased the home next door and made a
contract with Joe’s Home Improvements for a complete renovation of
the property. The lawyer was delighted because the improvement of
the Murray home was upgrading the neighborhood and raising the
value of the lawyer’s home. After making the last required payment on
the contract, Anne Murray became seriously ill and ultimately was
taken to a nursing home for care.When Joe learned of Murray’s illness
and confinement, Joe ceased work on the Murray home, and
breached the contract. Because the outside renovation work
had not been completed, the premises began to return to its former
rundown condition. The lawyer ultimately sued Joe as a third-party
beneficiary of the contract between Murray and Joe. What is the
probable outcome of the lawsuit?
Business Law 150
Final
1.Franklin, a hobby-shop supplier, and Gordon, a hobby-shop owner,
entered into a contract that provided that Franklin would sell Gordon
fifty World War II battleship models at Franklin’s cost of $250 each,
plus a reasonable profit. They couldn’t agree on what a reasonable
profit would be. Gordon brought suit to enforce the contract against
Franklin, who refused to deliver the models. Franklin claimed that
there was no contract because of indefiniteness. Is Franklin correct?
2. Name 4 types of contracts that must be in wring under the Statute
of Frauds
3. Bart was a self-made millionaire who had earned his fortune by
dedicated hard work. Bart had worked so hard that he never had
developed much of a social life.Bart met Linda and fell in love with her.
When Bart proposed to Linda, she told him that she needed time
before making such an important decision. Pressing her for a
favorable response, Bart telephoned Linda and promised her
$100,000 if she would marry him. Linda then accepted the proposal.
Bart contracted with Quick Builders for the construction of a home Bart
intended to move into with Linda after their marriage. Construction by
Quick was not very quick because Quick was not paying
subcontractors the sums that they were owed. They, in turn, were not
completing their work. To expedite matters, Bart called the
subcontractors and assured them that Bart would pay any sums that
Quick Builders did not pay if they would complete the construction.
Bart and Linda married, and the subcontractors completed the work.
Quick Builders did not pay the subcontractors in full. Bart failed to pay
Linda the $100,000. Both Linda and the subcontractors sued Bart.
Discuss the probable outcome of the lawsuits.
4 Janet Jones sold the assets and liabilities of her coin-operated
laundry to Kevin Katz for $10,000. The assets of the business
included all of the washers and dryers. The liabilities included the
amounts still owing on seven new dryers, which had been purchased
recently from Dryer Company under an installment contract. Katz
agreed to make the installment payments on the new dryers as
they came due. After Katz failed to make an installment payment
when it was due, Dryer Company sued Jones. Jones claimed she no
longer was liable. How will the court decide?
5. Cyril made two contracts. The first was to have his house painted
one month from the date of the written contract. The second was for
his neighbor’s 1957 Ford Thunderbird. Each contract was definite and
clear in all respects. As to the house painting, Cyril inquired with the
painter as to when the work could begin. The painter explained that he
was extremely busy and was not sure if he could fulfill the contract.
Cyril flew into a rage and immediately hired someone else who
painted the house, but at a higher price. With regard to the automobile
purchase contract, after signing the contract, the neighbor decided
that she did not wish to sell her car and refused to complete the
transaction. Cyril attempted to purchase a similar car elsewhere, but
the car was a vintage automobile which was not available on the open
market. Cyril sued both the painter and the neighbor. Discuss the
probable outcomes of the lawsuits. What type of damages will Cyril
seek?
6.What types of contracts may be assigned without the other party’s
consent and what type of contracts need consent?
7 Name and briefly describe three types of remedies that someone
can ask for in a court of law if their contract has been breached.
8, Nelson took her computer to ABC Computer for repairs. ABC
repaired the computer at a cost of $350 and informed Nelson that her
computer was ready. Before Nelson came to pick up her computer,
ABC was burglarized, and Nelson’s computer was taken. ABC had a
commonly used alarm system that was operating properly on the night
of the burglary, and all the doors and windows were properly secured.
Nelson sued ABC for the cost of the computer. ABC denied any
liability and counterclaimed for the $350 in repairs. Who will win? Why
9. ABC Corp hired Confidential Corp. to distribute advertising to its
clients through Confidential’s e-mail service. Confidential obtained the
job because of their secure system and they knew that customer lists
were very valuable. ABC paid Confidential $15,000 in advance for the
agreed upon service. Unfortunately, Confidential’s service was hacked
into and ABC’s customer list was stolen by a competitor of ABC. The
list was worth over $150,000. ABC is suing Confidential for damages.
How much should they sue for? What are the arguments?
10. Frank has two interests in property. On property “X,” Frank has a
life estate measured by the life of his Uncle Sal. On property “Y,”
Frank has a fee simple estate. Frank wishes to transfer, upon his
death, his interest in the two properties to his wife, Samantha. Prior to
Frank’s executing his will, Uncle Sal dies. Frank still wishes to leave
the properties to his wife, but he now is uncertain whether he
has the right to do so. Can Frank leave both property interests to
Samantha? Why or why not?
11 Tucker and Hankey were adjoining property owners. Tucker
claimed that the fence separating their properties was not located
properly and that it should be moved back onto Hankey’s land.
Hankey claimed that he owned the strip between the fence and the
alleged boundary line since the fence had been there for so long. He
proved that for forty (40) years there had been on the strip in
question a barn with a cement floor, which had been built by the
person from whom he purchased his land, and that he had been told
by the former owner that the fence was the boundary line. The fence
consisted of five-foot-high barbed wire set in cement. The deeds prove
that the fence actually was built on Tucker’sproperty. Who owns the
strip? Why?
12. Dylan performs services for Columbia Day Care Center. She has
completed the job and is owed $5,000. Due to her excellent credit
rating she has obtained a commitment for a loan from Citibank for
$25,000 and has agreed to borrow the money. However, she has not
yet signed a formal loan agreement. She decides to assign her claim
to the $5,000 and the loan commitment to her friend Alyssa who
needs the money. Columbia refuses to pay Alyssa and Citibank
refuses to give the loan to Alyssa. Alyssa sues both Columbia and
Citibank to enforce the assignments Is Alyssa successful in her suits?
Why or why not?
13. Vacarro gave her son Mark a car on the day Mark left for college.
Vacarro told Mark that she expected him to use the car for school
purposes and to earn good grades. Mark flunked out of college in his
second semester. Vacarro sued to regain title to the car on the ground
that the gift was conditional on Mark’s earning good grades and
remaining in college. Will Vacarro win the case?
14. Humberto called his friend John and asked him to come over
immediately because Humberto had suffered a stroke and might be
dying. In their telephone conversation, Humberto advised John that he
wanted to give John his gold watch. Immediately after their telephone
conversation, Humberto wrote out a will that left his share in Blackacre
to John. Blackacre was the marital home of Humberto and Connie,
who owned the home as tenants by the entirety. Humberto died before
John arrived at Blackacre. John claims the watch and a share in the
home. Connie contests both matters. Decide.
15. A lawyer owned a home next door to a very beat up, neglected
home. Anne Murray purchased the home next door and made a
contract with Joe’s Home Improvements for a complete renovation of
the property. The lawyer was delighted because the improvement of
the Murray home was upgrading the neighborhood and raising the
value of the lawyer’s home. After making the last required payment on
the contract, Anne Murray became seriously ill and ultimately was
taken to a nursing home for care.When Joe learned of Murray’s illness
and confinement, Joe ceased work on the Murray home, and
breached the contract. Because the outside renovation work
had not been completed, the premises began to return to its former
rundown condition. The lawyer ultimately sued Joe as a third-party
beneficiary of the contract between Murray and Joe. What is the
probable outcome of the lawsuit?
3
6
9
12
1. Professor Jones is employed at Pace University on a year-by-year basis. In
April of 2021, Jones meets with Dean Smith regarding being employed for the
school year beginning September 2021-May 31, 2022. They verbally agree on
a contract and shake hands. Prof. Jones prefers to get paid at the end of May,
as opposed to getting weekly paychecks. Professor Jones writes down all of
the details of the contract and e-mails them to the Dean. The dean never
responded to the e-mail. After the first semester, only one student signed up
for Prof. Jones’ class in the spring, so the Dean decided that Prof. Jones
should not be allowed to teach in the spring. Pace refuses to pay Prof. Jones.
Jones sues for payment. What are the arguments of each party? What is the
outcome?
15
Format
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Question 2 (6.6666 points)
1. Diane and Zelda entered into a written contract for the purchase of a business by Zelda. The contract was
carefully drafted to set forth the agreement of the parties. It was signed by both parties. Zelda subsequently
claimed that the contract did not cover all the terms included in the written and oral agreements that the
parties had made during their prior negotiations. In addition, Zelda also claimed that they made oral
modifications to the contract after it was signed. Diane does not deny that what Zelda claims is true. Zelda
wants all of the additional terms enforced and Diane refuses to do so. Will Zelda be allowed to present
evidence to support some, none or all of her claims in a legal action? Why?5
8
6
a
11
12
14
15
Question 3 (6.6666 points)
1. Calvin Company was a general contractor hired by Binge, LLC to design and build an oil seed processing
plant. Calvin contracted with James Corp. to supply critical seed processing equipment for the project.
James’ proposal to get the contract specifically identified the Binge project and the proposal included a
diagram of the planned Binge plant. James won the contract but did a terrible job and the project was a
failure. While Binge and James never entered into a contract, Binge sues James under the James – Calvin
contract. What is Binge’s argument? What is James’ argument? Who wins?
C
Format
A
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A
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Question 4 (6.6666 points)
1. Bryan performs services for Pace University. He has completed the job and is owed $7,000. Due to his
excellent credit rating he has entered into an agreement with Toyota to purchase a car for $25,000. Toyota
will be loaning him $20,000 towards the purchase price. Bryan decides to assign his rights to receive the
money from Pace and the rights and obligations with respect to his contract with Toyota to his best friend
Joe. Neither Pace nor Toyota agree to the assignments. Joe sues both Pace and Toyota to enforce the
assignments. What is the outcome of each lawsuit? Why?
Ω
Format
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a
3
Question 5 (6.6666 points)
C
1. Gregory, a comedy writer, entered into a contract with Wessel, a comedian. The contract provided that
Gregory would provide Wessel with a 15-minute monologue for his upcoming appearance on Comedy Hour
and that Wessel would pay Gregory $250. All performers on Comedy Hour make $600 per appearance.
Comedy Hour provides great opportunities for local comedians. As Gregory knows, the last 5 times that
Wessel appeared on Comedy Hour he was asked to make special guest appearances at three national
comedy clubs using the same monologue. He earned a total of $10,000 for each of the three performances.
Shortly before Wessel was scheduled to appear on Comedy Hour, Gregory informed him that he was unable
to provide the monologue. As a result, Wessel had to cancel his appearance. Wessel sued Gregory for
breach of contract. How much in damages should he sue for? What is the rationale?
Format
BIU
2
11.
Question 6 (6.6666 points)
1. Joanne agreed to sell a valuable piece of art to Alice for $3,000,000. The contract contained a clause that
stated that if either breached the contract that the damages would be $250,000. Alice decided to buy a
different piece of art and did not carry out her purchase with Joanne. Two months later, Joanne sold the
piece of art to Mary for $5,000,000. Joanne sues Alice for the $250,000. Alice claims that not only was
Joanne not damaged by her breach, but she actually made an additional $ 2,000,000. Therefore, she should
not have to pay the $250,000. What is the likely outcome of their lawsuit? Why?
Format
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る8
5
2
3
9
Question 7 (6.6666 points)
Charles entered into a valid written agreement to sell his apartment in a Manhattan condominium to
Samantha. The agreed upon price was $1 million. There was no liquidated damages clause in the contract.
The sale was supposed to take place on March 1, 2020. Charles moved to his new house on March 1, 2020,
leaving the apartment empty. Samantha backed out of and breached the contract. At first, Charles was
happy because he thought he could sell the apartment for more than $1 million. However, COVID came to
New York and real estate prices started to drop. Charles received an offer for the apartment for $900,000
and for the sale to take place on April 1, 2020. Charles, thinking that COVID would be short-term, and that
he could get a higher price within a short time, rejected the offer. Charles was wrong about COVID and
couldn’t sell the apartment until May 1, 2021. Charles sold the apartment for $600,000. Charles
maintenance fees for the apartment were $3,000 per month. Charles now sues Samantha for $445,000 in
damages. $400,000 for the decrease in price and $45,000 for the extra maintenance fees. Samantha hires
you to represent her. You can’t contest that she breached the contract. What arguments, if any, can you
make
on her behalf? What is the likely outcome with respect to the lawsuit brought by Charles?
11
12
14
15
a
Format
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A
Question 8 (6.6666 points)
1. Paul and Paula are friends. Paul gives Paula a diamond ring. They have a disagreement and Paul demands
that Paula give him back the ring. Paul clams it was an engagement ring. Paula claims it was a birthday gift.
Why are they claiming that the gift was made for different reasons?
Ω
Format
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2
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Question 9 (6.6666 points)
1. Abby and Arnold are married and own a home that is worth $1 million. Both Abby and Arnold each own a
small business. Abby borrowed $250,000 from Citibank to start her business and Arnold borrowed $300,000
from TD Bank to start his business. Unfortunately, both businesses failed. TD Bank claims that it has a right
to a $300,000 share of the house and Citibank claims that they are entitled to a right to $250,000 claim
against the house. Are they correct? Why or why not?
C
Format
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A
Question 10 (6.6666 points)
1. I ask a friend of mine to store my furniture, worth $100,000, over the summer because I am moving in May
and won’t be leasing a new apartment until September. I will be traveling in Europe during that time. My
friend agrees to store the furniture for no charge. There was a flood in my friend’s apartment that he was
20% responsible for. My furniture was ruined, and I sue my friend for 100,000, its value. Am I successful in
my lawsuit? If so, how much money am I awarded?
C
Format
B
IUQuestion 11 (6.6666 points)
1. Jerry owns property with a lake on it. I live in the area and he allows me to fish and swim in the lake on his
property. I do this for 15 years. Mary knows that Jerry has allowed me to fish and swim in the lake. Jerry
sells his house to Mary, and Mary doesn’t let me use the lake anymore. I sue Mary to force her to allow me
to use the lake. What arguments does Mary make? What arguments do I make? Who wins?
C
Format
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A
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1.
Question 12 (6.6666 points)
1. Craig is a CPA employed by Alyssa in her small CPA firm. Craig signs an employment agreement with Alyssa
that states that Craig must give one month’s notice if he wants to quit his job and Alyssa must give him 2
weeks’ notice if she wants to fire him without cause. In addition, the agreement states that if Craig quits, he
will not open a CPA firm within the United States for a period of 10 years. Assume Craig quit, gave one day’s
notice and immediately opened his own CPA firm within 2 blocks of Alyssa’s firm. Alyssa sues Craig asking
the court to prohibit him from opening the CPA firm since he is breaching the contract. What is the likely
outcome of Alyssa’s suit?A 11.
tion 13 (6.6666 points)
1. Amy, an adult and her nephew Billy, 14 years like to go on a roof of an apartment building close to Amy’s
house to sunbathe. The apartment building is owned by Peerless Corp. One day, while on the roof, they
decide to jump onto the roof of an adjoining building. There is a 3 – foot gap between the buildings. Peerless
Corp. knew that people occasionally jump from one building to another. They both jump at the same time
and unfortunately neither makes it to the adjoining building. They are both severely hurt and sue Peerless
Corp. for damages. What is the likely outcome of their lawsuits? Why?
Ω
Format
B
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AA
1.
estion 14 (6.6666 points)
1. I buy a home for $700,000. I build a cabinet into the wall that I use to display small antiques and small works
of art. The cabinet can’t be removed from the wall without causing great damage. I also install a wireless
state of the art sound system in each bedroom, living room and den with portable speakers. Which can all
be removed easily. I sell the house for $750,000 and the contract states that it is for the sale of real
property. I claim that all I sold was the house and land, but the buyer claims that she also bought the
cabinet and the sound system with the speakers. Who wins? What are the arguments?
C
Format
B
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HA 11.
stion 15 (6.6667 points)
1. Brenda bought Blackrock from Giselle but never recorded the deed. Giselle stayed on the property as a tenant
for three (3) years. Near the end of the three (3) years, Giselle learned that Brenda had never recorded the
deed. Giselle advertised Blackrock for sale and Avery negotiated with Giselle thinking that Giselle was the
owner. Finally, Avery checked the records at the recording office and, finding no reason to question Giselle’s
ownership of the property, purchased Blackrock from Giselle. Avery recorded the deed and Giselle fled with
the purchase money. Ultimately, Avery and Brenda had a dispute over the ownership of the property. Decide
the case between Avery and Brenda.
C
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