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Business Law
Vickie Lynn Smith, an actress and model also known as Anna Nicole Smith, met J. Howard Marshall II in 1991. During their courtship, J. Howard lavished gifts and large sums of money on Anna Nicole,
On what issue was the court asked to rule in this case?
On what did the court base its reasoning for its ruling on this issue?
What If the Facts Were Different? Suppose that there had not been an ambiguity in this policy and that it had been subject to only one reasonable interpretation. Would the result have been different?
The Legal Environment Dimension Should insurance policy provisions be interpreted to avoid ambiguities if possible? Why or why not?
The Ethical Dimension Are the acts of the principal parties—Woo, Alberts, and Fireman’s- ethically justifiable in the circumstances of this case? Discuss.
The Legal Environment Dimension In determining if an insurer has a duty to defend an insured, should a court ask whether the insured had a “reasonable expectation” of coverage? Explain.
Did Matlin commit a misrepresentation on his policy application? Provident Insurance, Inc., issued an insurance policy to a company providing an employee, Steve Matlin, with disability
If there was any ambiguity on the application, should it be resolved in favor of the insured or the insurer? Provident Insurance, Inc., issued an insurance policy to a company providing an
Assuming that the policy is valid, does Matlin’s situation fall within the terms of the disability policy? Provident Insurance, Inc., issued an insurance policy to a company providing an
If Matlin is covered by the policy but is also disqualified by his misrepresentation on the application for coverage, might the insurer still be liable for bad faith denial of coverage?
Adia owns a house and has an elderly third cousin living with her. Adia decides she needs fire insurance on the house and a life insurance policy on her third cousin to cover funeral and other
Patrick contracts with an Ajax Insurance Co. agent for a $50,000 ordinary life insurance policy.The application form is filled in to show Patrick’s age as thirty-two. In addition, the application
Sapata has an ordinary life insurance policy on her life and a fire insurance policy on her house. Both policies have been in force for a number of years. Sapata’s life insurance names her son,
Fritz has an open fire insurance policy on his home for a maximum liability of $60,000. The policy has a number of standard clauses, including the right of the insurer to restore or rebuild the
In 1990, the city of Worcester, Massachusetts, adopted an ordinance that required rooming houses to be equipped with automatic sprinkler systems no later than September 25, 1995. In Worcester, James
Valley Furniture & Interiors, Inc., bought an insurance policy from Transportation Insurance Co. (TIC).The policy provided coverage of $50,000 for each occurrence of property loss caused by employee
James Mitchell bought a building in Los Angeles, California, in February 2000 and applied to United National Insurance Co. for a fire insurance policy. The application stated, among other things,
Richard Vanderbrook’s home in New Orleans, Louisiana, was insured through Unitrin Preferred Insurance Co. His policy excluded coverage for, among other things, “flood, surface water, waves, tidal
Paul and Julie Leonard’s two-story home in Pascagoula, Mississippi, is only twelve feet above sea level and less than two hundred yards from the Gulf of Mexico. In 1989, the Leonards bought a
Go to this text’s Web site at academic. cengage.com/blaw/clarkson and select “Chapter 49.” Click on “Video Questions” and view the video titled Double Indemnity. Then answer the following
What If the Facts Were Different? Suppose that Gladys had told Clara that she was giving the rings to Clara but wished to keep them in her possession for a few more days. Would this have affected the
Could the claimants have successfully argued that because they briefly possessed the currency, they had an ownership interest in it? Explain.
If the claimants had refuted the government’s assertion that the cash was “illicit,” would the result in this case have been different? Why or why not?
What If the Facts Were Different? If Straub had claimed that he had not read the terms, would the result in this case have been different? Why or why not?
The E-Commerce Dimension Did the fact that Treiber and UPS entered into their contract online affect the outcome in this case? What does their contract indicate about the use of the Internet to do
Is the dome real property or personal property? Explain. Vanessa Denai purchased forty acres of land in rural Louisiana with a 1,600-square-foot house on it and a metal barn near the house.
Is Denai’s gift of land to Finney a testamentary gift, a gift causa mortis, or a gift inter vivos? Vanessa Denai purchased forty acres of land in rural Louisiana with a 1,600-square-foot house
What type of bailment relationship was created when Denai agreed to store Finney’s boat? What degree of care was Denai required to exercise in storing the boat? Vanessa Denai purchased forty
What standard of care applied to the shipment of the dome by Doty Express? Vanessa Denai purchased forty acres of land in rural Louisiana with a 1,600-square-foot house on it and a metal barn
Jaspal has a serious heart attack and is taken to the hospital. He is aware that he is not expected to live. Because he is a bachelor with no close relatives nearby, Jaspal gives his car keys to his
Curtis is an executive on a business trip to the West Coast. He has driven his car on this trip and checks into the Hotel Ritz. The hotel has a guarded underground parking lot. Curtis gives his car
Bill Heise is a janitor for the First Mercantile Department Store. While walking to work, Bill finds an expensive watch lying on the curb. Bill gives the watch to his son, Otto. Two weeks later,
Discuss the standard of care required from the bailee for the bailed property in the following situations, and determine whether the bailee breached that duty.(a) Benedetto borrows Tom’s lawn mower
Orlando borrows a gasoline-driven lawn edger from his neighbor, Max. Max has not used the lawn edger for two years. Orlando has never owned a lawn edger and is not familiar with its use. Max
Raul, David, and Javier immigrated to the United States from Colima, Mexico, to find jobs and help their families. When they learned that a mutual friend, Francisco, planned to travel to Colima, they
Thomas Stafford owned four promissory notes. Payments on the notes were deposited into a bank account in the names of Stafford and his daughter, June Zink, jointly with a note on the account
A.D. Lock owned Lock Hospitality, Inc., which in turn owned the Best Western Motel in Conway, Arkansas. Joe Terry and David Stocks were preparing the motel for renovation. As they were removing the
Jason Crippen and Catharyn Campbell of Knoxville, Tennessee, were involved in a romantic relationship for many months. Their relationship culminated in an engagement on December 25, 2005, when
Go to this text’s Web site at academic. cengage.com/blaw/clarkson and select “Chapter 47.” Click on “Video Questions” and view the video titled Personal Property and Bailments. Then answer
The Ethical Dimension At one point in their dispute, the Biglanes blocked off two parking lots that served the Saloon. Was this an unreasonable interference with the Saloon’s rights? Explain.
The Legal Environment Dimension Could repulsive odors emanating from a neighbor’s property constitute unreasonable interference with a property owner’s rights? Why or why not?
The Ethical Dimension Should the court have rescinded the sale despite the running of the limitations period on the Whiteheads’ sewer claim? Why or why not?
The Legal Environment Dimension In Louisiana, a seller who knows of a defect and does not inform a buyer can be liable for the buyer’s attorneys’ fees in a suit based on that defect. Did Humphrey
What If the Facts Were Different? Suppose that the Sanderses had done nothing involving the disputed land except to claim title. Would the result have been different? Explain.
The E-Commerce Dimension How might the Internet have facilitated either party’s claim to the disputed property?
Why did the United States Supreme Court grant certiorari in this case, and what did the Court hold with respect to the principal issue?
Considering the impact of the majority’s ruling, what are some arguments against this decision?
What is the term for the right of Roche citizens to walk across Shoepke’s land on the trail? Vern Shoepke purchased a two-story home from Walter and Eliza Bruster in the town of Roche, Maine.
In the warranty deed that was used in the property transfer from the Brusters to Shoepke, what covenants would be inferred by most courts? Vern Shoepke purchased a two-story home from Walter and
Suppose that Shoepke wants to file a trespass lawsuit against some teenagers who continually throw Frisbees over his land. Shoepke discovers, however, that when the city put in the Frisbee golf
Can Shoepke hold Slater financially responsible for the damage to the carpeting caused by Indalecio? Vern Shoepke purchased a two-story home from Walter and Eliza Bruster in the town of Roche,
Madison owned a tract of land, but he was not sure that he had full title to the property. When Rafael expressed an interest in buying the land, Madison sold it to Rafael and executed a quitclaim
James owns a three-story building. He leases the ground floor to Juan’s Mexican restaurant. The lease is to run for a five-year period and contains an express covenant of quiet enjoyment. One year
Wilfredo and Patricia are neighbors. Wilfredo’s lot is extremely large, and his present and future use of it will not involve the entire area. Patricia wants to build a single-car garage and
Sarah has rented a house from Frank. The house is only two years old, but the roof leaks every time it rains. The water that has accumulated in the attic has caused plaster to fall off ceilings in
Glenn is the owner of a lakeside house and lot. He deeds the house and lot “to my wife, Livia, for life, then to my daughter, Sarina.” What is Livia’s interest called? Is there any limitation
The Wallens family owned a cabin on Lummi Island in the state of Washington. A driveway ran from the cabin across their property to South Nugent Road. In 1952, Floyd Massey bought the adjacent lot
The Hope Partnership for Education, a religious organization, proposed to build a private independent middle school in a blighted neighborhood in Philadelphia, Pennsylvania. In 2002, the Hope
Thomas and Teresa Cline built a house on a 76-acre parcel of real estate next to Roy Berg’s home and property in Augusta County, Virginia. The homes were about 1,800 feet apart but in view of each
In 1999, Stephen and Linda Kailin bought the Monona Center, a mall in Madison, Wisconsin, from Perry Armstrong for $760,000. The contract provided, “Seller represents to Buyer that as of the date
Go to Case 48.4, Kelo v. City of New London, Connecticut, 545 U.S. 469, 125 S.Ct. 2655, 162 L.Ed.2d 439 (2005), on pages 995–996. Read the excerpt and answer the following questions.(a) Issue: On
The Ethical Dimension Does a principal have an ethical responsibility to inform an unaware third party that an apparent (ostensible) agent does not in fact have authority to act on the principal’s
The E-Commerce Dimension Could Amanda have established Drs. Gubin and Ogata’s apparent authority if Desert Hospital had maintained a Web site that advertised the services of the CPSP clinic and
What If the Facts Were Different? If Selheimer & Company had not had the authority to accept funds for investment, did not authorize its manager to accept such funds, and did not represent that the
The Global Dimension Suppose that Selheimer & Company handled accounts for a number of clients located in foreign nations. Would these foreign clients be able to sue under U.S. agency law and hold
What are the two “prongs” of the test for liability for injuries caused by the negligence of borrowed servants (employees) under the doctrine of respondeat superior, according to the court in the
How does the basis for the second “prong” of this test resemble the basis for the imposition of strict liability in other cases?
Under what doctrine discussed in this chapter might Buy-Mart be held liable for the tort committed by Watts? Lynne Meyer, on her way to a business meeting and in a hurry, stopped at a Buy-Mart
What is the key factor in determining whether Buy-Mart is liable under this doctrine? Lynne Meyer, on her way to a business meeting and in a hurry, stopped at a Buy-Mart store for a new pair of
How is Buy-Mart’s potential liability affected depending on whether Watts’s behavior constituted an intentional tort or a tort of negligence? Lynne Meyer, on her way to a business meeting
Suppose that when Watts applied for the job at Buy-Mart, she disclosed in her application that she had previously been convicted of felony assault and battery. Nevertheless, Buy-Mart hired Watts as a
Adam is a traveling salesperson for Peter Petri Plumbing Supply Corp. Adam has express authority to solicit orders from customers and to offer a 5 percent discount if payment is made within thirty
Alice Adams is a purchasing agent-employee for the A & B Coal Supply partnership. Adams has authority to purchase the coal needed by A & B to satisfy the needs of its customers. While Adams is
Paula Enterprises hires Able to act as its agent to purchase a 1,000-acre tract of land from Thompson for $1,000 per acre. Paula Enterprises does not wish Thompson to know that it is the principal or
ABC Tire Corp. hires Arnez as a traveling salesperson and assigns him a geographic area and time schedule in which to solicit orders and service customers. Arnez is given a company car to use in
John Dunning was the sole officer of the R.B. Dunning Co. and was responsible for the management and operation of the business. When the company rented a warehouse from Samuel and Ruth Saliba,
Federated Financial Reserve Corp. leases consumer and business equipment. As part of its credit-approval and debt-collection practices, Federated hires credit collectors and authorizes them to obtain
Greif Brothers Corp., a steel drum manufacturer, owned and operated a manufacturing plant in Youngstown, Ohio. In 1987, Lowell Wilson, the plant superintendent, hired Youngstown Security Patrol, Inc.
In 1998, William Larry Smith signed a lease for certain land in Chilton County, Alabama, owned by Sweet Smitherman. The lease stated that it was between “Smitherman, and WLS, Inc., d/b/a [doing
Lee Dennegar and Mark Knutson lived in Dennegar’s house in Raritan, New Jersey. Dennegar paid the mortgage and other household expenses. With Dennegar’s consent, Knutson managed their
Warren Davis lived with Renee Brandt in a house that Davis owned in Virginia Beach, Virginia. At Davis’s request, attorney Leigh Ansell prepared, and Davis acknowledged, a durable power of attorney
The Ethical Dimension Is it fair to sanction an employer for discharging an employee who reports on the employer’s unsafe or illegal actions to government authorities or others? Discuss.
The Global Dimension In many countries, discharging an employee is more difficult and costly for the employer than it is in the United States. Why?
What If the Facts Were Different? Suppose that Keevican’s job title had been “glorified barista” instead of “manager.” Would the result have been different? Explain.
The Legal Environment Dimension What might the court have concluded if the store could have operated successfully without the plaintiffs’ performing their “managerial” functions?
What did the Court hold with respect to the primary issue in this case?
How might a law foster discrimination even when the law is not obviously discriminatory?
Would Saldona have been legally entitled to receive overtime pay at a higher rate? Why or why not? Rick Saldona began working as a traveling salesperson for Aimer Winery in 1979. Sales
What is the maximum length of time Saldona would have been allowed to take leave to care for his injured spouse? Rick Saldona began working as a traveling salesperson for Aimer Winery in 1979.
Under what circumstances would Aimer have been allowed to require an employee to take a polygraph test? Rick Saldona began working as a traveling salesperson for Aimer Winery in 1979. Sales
Would Aimer likely be able to avoid reinstating Saldona under the key employee exception? Why or why not? Rick Saldona began working as a traveling salesperson for Aimer Winery in 1979. Sales
Calzoni Boating Co. is an interstate business engaged in manufacturing and selling boats. The company has five hundred nonunion employees. Representatives of these employees are requesting a
Denton and Carlo were employed at an appliance plant. Their job required them to perform occasional maintenance work while standing on a wire mesh twenty feet above the plant floor. Other employees
Suppose that Consolidated Stores is undergoing a unionization campaign. Prior to the union election, management states that the union is unnecessary to protect workers. Management also provides
The New York Department of Education’s e-mail policy prohibits the use of the e-mail system for unofficial purposes, except that officials of the New York Public Employees Federation (PEF), the
Verizon New York, Inc.(VNY), provides telecommunications services. VNY and the Communications Workers of America (CWA) are parties to collective bargaining agreements covering installation and
The Touch of Class Lounge is in a suburban shopping plaza, or strip mall, in Omaha, Nebraska. Patricia Bauer, the Lounge’s owner, does not own the parking lot, which is provided for the common use
Jennifer Willis worked for Coca Cola Enterprises, Inc. (CCE), in Louisiana as a senior account manager. On a Monday in May 2003, Willis called her supervisor to tell him that she was sick and would
Mary Garas, a chemist, sought work in Missouri through Kelly Services, Inc. Kelly is a staffing agency that places individuals in jobs of varying duration with other companies. Through Kelly, Garas
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