Business Law questions

Each answer has a limit of 2 pages. Each answer should be single spaced with a double space between paragraphs. Please be sure to carefully analyze each question and identify all the legal issues raised in each question. Once you have identified each legal issue, ensure that your response addresses any and all the legal issues you have identified.

Question # 1:
Neal, a twelve-year old boy, buys a pair of skis from Outdoor Outfitters (“OO”). He tells the
salesperson that he has never been skiing but “he really wants to do it.” The OO salesperson
urges Neal to take a lesson in the sport before participating in a run. Neal ignores this advice.
On his first run down the intermediate slope he loses control and runs into a tree. He suffers a
broken leg, assorted cuts and bruises and he has concussion symptoms. Neal’s parents file a
lawsuit against OO alleging that it should not have sold the skis to him when he was clearly too
young and inexperienced. Discuss the theory of liability upon which the lawsuit is based and
what, if any, defenses OO may raise.
Question # 2:
Don is an elderly man who lives with his nephew Evan. Don is dependent upon Evan for care.
Evan advises Don to “invest” in Evan’s professional gambling venture. Evan tells Don that he
will no longer provide care unless Don makes the investment. Don sells all his stocks and bonds
and signs a contract with Evan investing the proceeds of his sale of the stocks and bonds in
Evan’s professional gambling venture. Can Don set aside the contract?
Question # 3: Frank Stewart owns Evergreen Landscaping, Inc. Frank has experienced cash
flow problems and he has borrowed $5,000 from Friendly Finance Company to keep his business
open. He must pay Friendly $500 per month until the debt is repaid. Frank has a small book of
business that generates $1,500 per month in income. Frank has been awarded a contract from
Tower Apartments to maintain the common areas of the large apartment complex. The contract
will pay him $1,000 per month. The contract with Tower contains a provision that prevents
either party from assigning the contract to a third party without the consent of the other party.
Friendly is pressing Frank for a payment plan since he has had difficulty making the monthly
payments on his loan. When Friendly learns of Frank’s new contract with Tower, it demands
that Frank enter into an agreement with Friendly whereby Frank assigns to Friendly the right to
receive $500 of the $1,000 monthly payment from Tower until such time as the debt is paid in
full. The terms of their agreement are finalized in a written contract. Friendly sends a copy of
the agreement to Tower with a notice that Friendly expects to receive the monthly $500
payments beginning on the first of the next month. Friendly can prove that Tower received the
notice of assignment.
Frank performs the required work at the Tower complex for one month. He submits an invoice
to Tower for payment. Tower ignores the notice from Friendly and sends Frank a check for
$1,000.
At the beginning of the second month of the contract with Tower, Frank is injured while he is
working on the property of one of his customers and he is not able to work. To keep his business
alive until he can work again, he reaches a deal with Sunset Landscaping whereby Frank assigns
all his rights under his existing customer contracts, including the contract with Tower, to Sunset.
When Sunset learns that it will not be receiving the full $1,000 from Tower, Sunset stops
performing any work for any of Frank’s customers. When Sunset stops performing the work at
the Tower complex, Tower contracts with Friendly Landscaping Service to perform the work at
its apartment complex. Tower sues Frank for breach of contact for failure to perform the
landscaping services at its location.
Discuss the following claims:
1. Friendly claims it is entitled to a $500 payment from Tower for the work Evergreen
performed during the first month of the contract. Tower claims it does not have to honor the
agreement between Frank and Friendly because Tower never consented to the assignment of the
payment to Friendly. Is Friendly entitled to the payment. If so why, if not, why not?
2. Tower brings an action against Frank alleging breach of contract. Frank defends on the
grounds that he assigned the Tower contract to Sunset Landscaping and Sunset is liable for any
breach of the contract. Can Frank assign his rights under the Tower contract to Sunset? If so
why, if not, why not? Is Frank liable to Tower for Sunset’s failure to perform the agreement
with Tower? If so, why, if not, why not?
Question # 4:
In a transaction for the sale of a warehouse, Standard Storage Company, the seller, tells TriCounty Investment Corporation, the buyer, that the office furniture contained in the building is
included in the sale. The buyer asks the seller to include a provision in the agreement that the
office furniture and the seller agrees to do so. However, the written contract, which both parties
sign, does not mention the office furniture. The contract contains a provision that reads as
follows: “This document supersedes all oral promises relating to the sale.” Standard removes the
office furniture from the warehouse and Tri-County claims a breach of the contract for sale. Is
the furniture a part of the sale? Why or why not?
Question # 5:
Power Plus Battery Company (“PPBC”) has a production plant located in Florida. PPBC
manufactures batteries for motor vehicles. PPBC has 200 employees and sells its batteries to
customers in twenty-five different states in the United States. The Occupational Safety and
Health Administration (“OHSA”) is a federal administrative agency that has the authority to
establish safety standards, pursuant to the authority delegated to it by the United States Congress
in the Occupational Safety and Health Act. These safety standards, also known as safety rules or
regulations, apply to different industrial operations that have at least fifty (50) employees and are
engaged in interstate commerce. OSHA proposes a new safety standard governing the handling
of certain acids in the workplace. The proposed safety standard includes acids that PPBC uses in
its production processes. After reviewing the proposed rule, PPBC concludes that compliance
with the proposed rule will substantially increase its production costs and the proposed rule will
not significantly increase worker safety. PPBC sends a letter to OSHA stating its objections and
concerns to the new rule. Enclosed with the letter are independent research reports and other
materials that support PPBC’s objections to the proposed rule. What procedures must OSHA
follow when it adopts a new safety standard such as this one? What obligation does OSHA have
to consider the objections and the materials submitted by PPBC? What options does OSHA have
regarding the proposed rule? How does OSHA announce its final decision on the new rule?
Once the new rule has been adopted, what source may interested parties use to find the final
version of the new rule?