week 1Hanna owned a Honda and sometimes had work done on it at Henry’s Garage. One day she drove up with a flat tire, parked her car beside the garage, and called to Henry that she had a flat tire and would be back in an hour. Henry fixed the tire. Hanna refused to pay, saying that she had intended to make the repair herself. (A) Was there a contract? Explain completely why or why not and how much Hanna would pay. (B) Suppose Henry also adjusted the carburetor and straightened a fender. Could he recover for this?Explain. (Post due Friday 11 PM.) (Comment to classmate post due Sunday 11PM.)2Ron Dexter is engaged in the business of towing and storing vehicles. On February 14, 2008, the police recovered a stolen automobile and had it stored at Dexter’s lot. The legal owner of the car, Outback Insurance Company, learned that the automobile, valued at $11,350, was located at Dexter’s facility on May 8, 2008, but took no action to take possession of the vehicle. On July 12, 2008, Dexter discovered that Outback owned the automobile. On July 15, 2008, Dexter gave written notice to Outback that the car was at his storage facility. He enclosed a bill for storage fees at the rate of $30 a day. Outback refused to pay the fees. On July 10, 2009, Outback sued to take possession of the car. Dexter released the car to Outback on July 17, 2009, but sued Outback to recover $15,510 in storage fees. Is Outback obligated to pay $15,510 to Dexter for the storage of the vehicle? Discuss fully why or why not. What legal theories are at issue? (Post is due before 11PM Saturday.) (Comment to classmate post is due before 11PM Sunday.)week 2Hager met a homeless man, Saul, on a downtown street. Feeling sorry for the man, Hager gave him his address, and said that if he would come to Hager’s home that evening at 8 PM, he would give him $20.00 and a suit of clothing. Later in the day, Hager met with misfortune on the stock market. As a consequence, he experienced a change of heart and refused to live up to his agreement when Saul arrived that evening at 8 PM. Has Hager broken a contract? (Post is due before 11 PM Thursday.)2Paulson made an offer to Zahira as follows: “I offer to sell you 150 shares of Microsoft. It closed yesterday at $170. If you will buy 10 shares at that price I will give you 20 days to decide whether you want to buy the balance at the same price.” Zahira agreed, and paid Paulson for 10 shares. Three days later the price of Microsoft went up to $195. Zahira decided to buy the other 140 shares, but when he called Paulson’s office, he learned that Paulson had been killed in an automobile accident just a few moments before he called. Two weeks later, Zahira notified Paulson’s executor of his acceptance. The executor claims that the offer to sell the remaining 140 shares was ended by Paulson’s death. Is he correct? Explain. (Post is due before 11 PM Friday.)3On August 15, Wong, in Chicago, faxed Chang, in Philadelphia, as follows: “I offer you 100 shares Fulton Incorporated stock at $211.00 each. I suggest you answer by Fed Ex today, because I must know your answer by 10 o’clock tomorrow morning.” Chang immediately upon receipt of Wong’s offer sent a reply by Fed Ex accepting the offer, depositing his letter in the Fed Ex box at 3 o’clock, August 15. This letter, in normal course, should have reached Wong by 9 o’clock the following morning. Unknown to either party the airplane carrying the mail was delayed by an accident, and Chang’s letter did not reach Wong until noon, August 16. In the meantime, Wong had sold his holdings at 11 o’clock, August 16. Chang brings suit against Wong for breach of contract. Can he recover? Explain. (Post is due before 11 PM Saturday.)wek 3The television network CNBC and other television networks have been working to develop policies for their business correspondents and guests on their business shows because of conduct known aspump-and-dump, the practice of a Wall Street professional or network correspondent appearing on television to tout a particular stock as being a good buy. Often, unbeknown to the viewing audience, the guest or correspondent promoting the stock has a large holding in it and, after the television show runs and the stock price creeps up, sells his or her interest at a higher price than would have been possible before the show on which the person raved about the stock appeared. What category of ethical issues exists here? If you were a network executive, what would you do to remedy the problem? Should the government regulate such practices? (Post is due before 11 PM Thursday.)2A new trend is emerging in health insurance: premium increases based on claims. It is common practice in the auto insurance industry, for example, for insurers to revisit your premium each year and adjust it based on factors such as your driving record or number of accidents. However, health insurers have generally evaluated their insured’s health only once, at the outset, when issuing a policy.The reevaluation of health and premiums was a practice that ended in the 1950s because the insurers feared regulators would impose limitations on premiums. At least one health insurer, however, has begun to evaluate the health of its insureds annually and to adjust policy premiums accordingly. Even without examination of insureds, some insurers have increased the insureds’ premiums based simply on the nature of their claims for the year and the possibility that more claims will arise.Those who are healthy are in favor of this annual review. Perceiving themselves as the equivalent of good drivers, they want to pay less when they stay healthy. The health discount is, in their minds, the equivalent of the safe driver discount. However, those who are less healthy argue that people buy insurance so that it will be there when they need it, and the coverage should apply without regard to claims. Consider the ethical issues in this type of pricing for health insurance. (Post is due before 11PM Friday.)week 4Blake, who had been diagnosed with Alzheimer’s disease, sold and conveyed two acres of land to Khron, who paid $14,000.At the time of the sale and conveyance, Blake appeared to be competent and Khron had no knowledge of Blake’s illness.One year later, Blake died.During the prior year, Blake had spent the $14,000 received from Khron.The executrix of Blake’s estate sued Khron to set aside the deed and recover the land conveyed to Khron.The executrix made no offer to pay $14,000 to Khron.Will the executrix succeed?Suppose it was shown that Khron knew about Blake’s condition at the time of the sale and conveyance of the land.Would this affect your answer?(Post is due before 11 PM Thursday.)2Leonetti offered to sell Salazar her car and told Salazar that the car had been driven only 25,000 miles and had never been in an accident.Salazar hired Cavanaugh, a mechanic, to appraise the condition of the car, and Cavanaugh said that the car probably had more than 25,000 miles on it and probably had been in an accident.In spite of this information, Salazar still thought the car would be a good buy for the price, so he purchased it.Later when the car developed numerous mechanical problems, Salazar sought to rescind the contract on the basis of Leonetti’s fraudulent misrepresentation of the auto’s condition.Will Salazar be able to rescind his contract?Explain.(Post is due before 11 PM Friday.)3Walters, a business owner, filed tax returns for 2001, 2002, and 2003 using the cash basis. In 2004, Walters hired Erlich, a CPA, to prepare his income tax for 2004 using the accrual basis. While preparing the 2004 return, Erlich examined the prior years’ returns.Based on Erlich’s suggestions, Erlich prepared revised returns for the prior years, and Walters submitted these to the Internal Revenue Service (IRS), claiming an $18,000 refund. Instead of receiving the refund, the IRS claimed Walters owed $134,000 in unpaid taxes and fines. Erlich told Walters that the IRS was mistaken and that he could clean up the simple problem for a fee of $1000.After granting several extensions, the IRS notified Walters that Monday, October 5, 2008 was the deadline for filing a protest to the proposed assessment. On Saturday, October 3, Erlich called Walters to his office to sign the protest. When Walters arrived, Erlich produced a written contract with a fee agreement whereby Erlich was to receive $1000 plus 8 percent of any monies saved on the assessment. When Walters refused to sign the new fee agreement, Erlich told him that the protest had to be in the mail that afternoon to reach the IRS by Monday and that if the protest were not filed on time Walters would be liable for the $134,000 plus additional fines that had accrued since 2005. Walters signed the fee agreement, and the protest was filed on time. After reviewing the protest, the IRS reduced the assessment to $21,000. Erlich sent Walters a bill for $10,040. Walters sued to have the new fee arrangement rescinded. What legal theory will Walters argue? Who wins? How much does Walters owe Erlich for the service of preparing the protest? (Post is due before 11 PM Saturday.)week 5Teller ordered a shipment of coffee from Brazil.The coffee was due to arrive shortly in New York, and he expected to sell it for a profit.He then entered into an agreement with Nelson whereby they mutually promised to share equally the profit and losses realized in the venture.Teller paid $40,000 for the coffee, but was unable to sell it for more than $24,000.Nelson refused to abide by the agreement, and Teller sued him to recover $8,000.Nelson’s defense was no consideration.Judgment for whom?(Post is due before 11 PM Thursday.)2Genardi owed Wong a debt of $5000, which was long overdue.Fry, a friend of Genardi, wrote as follows to Wong: “I know how badly you need the money and that you’ve waited for it a long time.But give yourself no concern.I am writing to promise that I’ll pay Genardi’s debt to you within the year if he doesn’t.Heaven knows you’re entitled to it.”Wong was much pleased by the receipt of this letter.Bearing this in mind, for one year she patiently bided her time and took no action whatever to collect the debt from Genardi.At the end of this period, the debt remained unpaid.Genardi and Fry both refused to pay.Under the facts presented, does Wong have a case against Fry?Explain fully.(Post is due before 11 PM Friday.)3On April 1, 2008, Creese loaned $6,000 to Dasher in exchange for Dasher’s promise to make repayment, together with 8 percent interest, one year from that date.(A) Suppose that on May 1 2008 Dasher pays $5000 cash to Creese, in return for Creese’s promise to cancel the entire debt.May Creese claim anything more from Dasher?(B) Suppose that on May 1, 2009 Dasher sent his check for $5000 to Creese, who cashed the check after seeing upon it the stipulation: “Payment in full of all debts owed by Dasher to Creese.”May Creese claim anything more from Dasher?(C) Suppose that on May 1, 2009 Dasher holds Cohick’s promissory note payable to Dasher in the sum of $5000, and then Dasher endorses and surrenders this note to Creese, in return for Creese’s promise to cancel the entire debt.May Creese claim anything more from Dasher?(Post is due before 11 PM Saturday.)week 6Wright owned a small grocery store in West Philadelphia one block from City Avenue. At that point, the avenue is the western boundary of the city, separating it from Delaware County. All of Wright’s customers were drawn from the city and from an area no more than ten blocks distant from the store. There are two competing stores in the same area in Philadelphia. Wright sold the store (the building, stock, and other fixtures) and the good will to Hagerty for $950,000 and in the contract of sale covenanted never to compete with Hagerty in the grocery business anywhere in the City of Philadelphia.Six months after the business was sold, Wright opened another grocery store less than one block from City Avenue in Delaware County. The new store was located almost due west from the store now owned by Hagerty, which made them about two blocks apart. Almost immediately, Wright began soliciting business from his old customers, and within four months, at least thirty per cent of his sales were being made to former customers drawn from Philadelphia.Hagerty now seeks to have Wright enjoined from operating the store in Delaware County. Wright contends he should not be enjoined because the covenant is unenforceable and creates a monopoly. He further argues that even if the covenant is enforceable in all respects, he has not violated it. Is this noncompetition clause valid? Should Wright be enjoined from operating his new store?(Post is due before 11 PM Thursday.)2A state law required builders of homes to be licensed. Although DelVal Construction, Inc. did not have a license, it built a home for German at a price of $385,000. German made a down payment of $65,000 before DelVal began construction. When German failed to pay the balance that was owed, DelVal sued her. She raised the defense that the unlicensed contractor could not recover for the contract price. The jury, after hearing the evidence, concluded that DelVal performed satisfactory work. DelVal claimed that the lack of a license was not a bar to recovering the money because the president of the corporation was a licensed builder and the only shareholder of the corporation. Is this an illegal contract? Should the law allow German to take advantage of DelVal by not paying the additional $320,000 for the house? What public policy would support such an outcome? Which party will succeed? (Post is due before 11 PM Friday.)week 7Alonzo Marchetti, who owned a construction company, promised his son, Romo, that if Romo would manage the family business for their mutual benefit and would take care of him for the rest of his life, he would leave the family home to Romo. Romo performed as requested – he managed the family business and took care of his father until the father died three years later. When the father died, his will devised the family home to his daughter, Lucia Shipman. Romo brought this action to enforce his father’s promise that the home would be given to Romo. The daughter argued that the will should be upheld. What defense will Lucia use? Who will succeed? Did the son and daughter act ethically towards each other? (Post is due before 11 PM Thursday.)8 points2Carlson Mamet interviewed for a position with KAC, Inc. During the interviews, Mamet questioned the permanency of the job and was told that “as long as employees do a commendable job, they have no fear of being laid off” and “employees are never laid off unless there is due cause.” In March of 2004, Mamet signed a one-page employment agreement with KAC. The first paragraph provided that KAC would employ Mamet “for a length of time determined by the will of KAC and Mamet.” In June 2008, KAC began terminating many employees. On March 8, 2009, Mamet was told he was terminated as part of the staff reduction. By June 2010, KAC had laid off about 9,000 employees. Mamet sued KAC for breach of the agreement to provide permanent employment to him. Will Mamet succeed in proving that KAC breached their agreement with him? (Post is due before 11 PM Friday.) 7 pointswek 8Devon Smith owned an apartment building located on West 23rd Street in New York City. Smith contracted with Renew Discount Security, Inc., to install security locks on the front door of the building. On July 17, 1996, when Laura Eichner was visiting her fiancé at the building, she was accosted on the second-floor landing, dragged to her fiancé’s apartment, and raped. Eichner sued Renew for breach of contract, alleging that the front door lock to the building was improperly installed and could be opened by a firm push, even when the door was locked. Can Eichner sue Renew for breach of contract? What theory will she argue? Will she succeed? (Post is due before 11 PM Thursday.)2Thompson entered into a contract with Barnes and Tilman for the delivery of one thousand bales of hay on the first day of each month for a period of twenty-four months, payment to be made in thirty days after delivery. Within ten months after the making of the contract, Barnes and Tilman retired from business and transferred all assets, including this contract, to Hollister. Thompson, on the first day of the following month, refused to deliver to Hollister the usual one thousand bales of hay. The price of hay was then higher than the contract price, and Hollister sued Thompson. Can he recover? (Post is due before 11 PM Friday.)week 9McDougal Contractors made a contract with Rekowski to build an apartment house for a specific price.A number of serious apartment house fires broke out in the city, and an ordinance was adopted by the city council increasing the fire precautions that had to be taken in the construction of a new building.Compliance with these new requirements would make the construction of the apartment house for Rekowski more expensive than McDougal had originally contemplated.Is McDougal discharged from the contract to build the apartment house?(Post is due before 11 PM Thursday.)2MegaMachines made a contract to design a new earthmoving vehicle for Lance Highway Construction Co.MegaMachines was depending on the genius of Stella Sconsconi, the head of its research department, to design a new product.Shortly after the contract was made between MegaMachines and Lance, Sconsconi was killed in an automobile accident.MegaMachines was unable to design the product without Sconsconi.Lance sued MegaMachines for damages for breach of the contract.MegaMachines claimed that the contract was discharged by Sconsconi’s death.Is it correct?(Post is due before 11 PM Friday.)week 10Kincaid, a wholesaler, delivered a quantity of tomatoes to a cannery pursuant to a contract whereby the Blackburn Company, owner of the cannery, promised to can the tomatoes in accordance with certain specifications.The company promised to complete the work, and to pack and ship the canned tomatoes to the buyer’s address by August 12.On August 12, Kincaid’s tomatoes had not yet been canned.That night, a fire broke out and consumed the cannery.Kincaid’s tomatoes were destroyed by the fire.The fire was not attributable to negligence on the part of the Blackburn Company.The company carried no insurance on the cannery and refused to pay Kincaid for his loss.Kincaid sued for breach of contract to recover from Blackburn Company the value of the tomatoes.Will Kincaid succeed?(Post is due before 11 PM Thursday.)2Dean, a dealer, contracted in writing to sell a Camry to Maria, a merchant.Dean, acting without legal cause, refused to deliver the car.Four months later, Maria purchased a Camry (same model, same year) elsewhere.Maria sued Dean to recover damages for breach of contract.Maria contends that the car was intended for use by one of her salespeople and that a large volume of business was lost because the particular salesperson concerned, having no car for four months, could not cover the sales route effectively.Maria seeks to recover the profits thus lost for the four-month period in question.What damages, if any, will Maria recover from Dean?(Post is due before 11 PM Friday.)3Sensenig was a surveyor in the City of Pittsburgh for many years and had made surveys, maps, plots, and plans of the streets, lanes, and alleys of Pittsburgh and other places around that city, as well as many plans and plots of ground throughout Allegheny County.These he used extensively in his business. Intending to change his occupation, he sold all these maps, plans, and plots to Hanks. The contract of sale stipulated that if Sensenig should ever want to reengage in the surveying business, Hanks would resell the plots, plans, and maps to Sensenig for the price that Sensenig had sold them to Hanks plus 10 percent.Five years later, Sensenig notified Hanks that he wanted to reengage in the surveying business and tendered to Hanks the amount of the purchase price which Hanks had paid to Sensenig plus 10 percent. Hanks refused to deliver the plans to Sensenig, and Sensenig sued Hanks for breach of contract. What is the appropriate remedy? Will Sensenig succeed? (Post is due before 11 PM Saturday.)

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