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business
business law principles

Questions and Answers of Business Law Principles

Lile, an insurance broker who handled all insurance for Tempo Co., purchased a fire policy from Insurance Company insuring Tempo Co.’s factory against fire in the amount of \($750,000.\) Before the
David E. Ross, his two brothers, and their families operated and owned the entire stock of five businesses. Ross had three children: Rod, David II, and Betsy. David II and Betsy were not involved in
Mr. Sewall left his car in a parking lot owned by Fitz-Inn Auto Parks, Inc. The lot was approximately one hundred by two hundred feet in size and had a chain link fence along the rear boundary to
Ames leased an apartment to Boor for \($600\) a month, payable the last day of each month. The term of the written lease was from January 1, 2015, through April 30, 2016. On March 15, 2015, Boor
In 2004, Roy Martin and his wife, Alice; their son, Hiram; and Hiram’s wife, Myrna, acquired title to a 240-acre farm. The deed ran to Roy Martin and Alice Martin, the father and mother, as joint
In 1989, Ogle owned two adjoining lots numbered 6 and 7 fronting at the north on a city street. In that year, she laid out and built a concrete driveway along and two feet in front of what she
In 1973, a deed for land in Pitt County, North Carolina, was executed and delivered by Joel and Louisa Tyson unto M. H. Jackson and wife Maggie Jackson, for and during the term of their natural lives
Clayton and Margie Gulledge owned a house at 532 Somerset Place, N.W. (the Somerset property) as tenants by the entirety. They had three children: Bernis Gulledge, Johnsie Walker, and Marion Watkins.
On January 14, 2012, Eura Mae Redmon deeded land to her daughter, Melba Taylor, and two sons, W. C. Sewell and Billy Sewell, “jointly and severally, and unto their heirs, assigns and successors
On June 30, 2007, Martin Hendrickson and Solveig Hendrickson were married, and on January 3, 2008, a home previously owned by Martin was conveyed to them as joint tenants and not as tenants in
Arkin, the owner of Redacre, executed a real estate mortgage to the Shawnee Bank and Trust Company for \($100,000.\) After the mortgage was executed and recorded, Arkin constructed a dwelling on the
Robert and Stanley held legal title of record to adjacent tracts of land, each consisting of a number of five acres. Stanley fenced his five acres in 1986, placing his east fence fifteen feet onto
On January 1, 2015, Davis and Hershey owned Blackacre as tenants in common. On July 1, 2015, Davis made a written contract to sell Blackacre to Dibbert for \($125,000.\) Pursuant to this contract,
In May 2006, Fred Parramore executed four deeds, each conveying a life estate in his land to him and his wife and a remainder interest in one-fourth of his land to each of his four children: Alney,
The Gerwitz family resides on a piece of land known as Lot 24 of the Belleville tract, which they acquired by deed in 1996. Shortly thereafter, the Gerwitzes began to use the adjacent vacant Lot 25.
Robert V. Gross owned certain land on which he proposed to construct an eighty-three-unit apartment house. The land, however, was subject to a restriction imposed by a prior deed to a predecessor in
Sam and Eleanor Gaito purchased a home from Howard Frank Auman, Jr., in the spring of 2014. Auman had completed the construction of the house in November 2009. In the interim, three different parties
Joe Brown gave \($350,000\) to his wife, Mary, with which to buy real property. They orally agreed that title to the real property should be taken in the name of Mary Brown but that she should hold
On March 10, John Carver executed his will, which was witnessed by William Hobson and Sam Witt. By his will, Carver devised his farm, Stonecrest, to his nephew, Roy White. The residue of his estate
Leonard Wolfe was killed in an automobile accident while driving his Toyota Camry. The car was rendered a total loss, and Wolfe’s insurance carrier paid his estate \($17,550\) for damage to the
By his last will and testament, Henry Nussbaum made a residual bequest and devise of his estate to his niece, Jane Blair, as trustee, in trust for the education of his grandchildren.If the trust
Rodney Sharp was a fifty-six-year-old dairy farmer whose education did not go beyond the eighth grade.Upon the death of his wife of thirty-two years, Sharp developed a very close relationship with
Mae contracted to sell one thousand bushels of wheat to Lloyd at \($10.00\) per bushel. Just before Mae was to deliver the wheat, Lloyd notified her that he would not receive or accept the wheat. Mae
On December 15, Judy wrote a letter to David stating that she would sell to David all of the mine-run coal that David might need to buy during the next calendar year for use at David’s factory,
Jane sells and delivers to Gerald on June 1 certain goods and receives from Gerald at the time of delivery Gerald’s check in the amount of \($9,000\) for the goods. The following day, Gerald is
Margaret contracted to buy a particular model Rolls-Royce from Paragon Motors, Inc. Only one hundred of these models are built each year. She paid a $30,000 deposit on the car, but Paragon sold the
Lee Oldsmobile sells Rolls-Royce automobiles. Mrs. Kaiden sent Lee a \($25,000\) deposit on a used Rolls-Royce with a purchase price of \($155,500.\) Although Lee informed Mrs. Kaiden that the car
State whether the following provisions in a note impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with either “Negotiable”
Henry Hughes, who operates a department store, executed the following instrument:$2,600 Chicago, March 5, 2016 On July 1, 2016, I promise to pay Daniel Dalziel, or order, the sum of Twenty-Six
For the balance due on the purchase of a tractor, Henry Brown executed and delivered to Jane Jones his promissory note containing the following language:January 1, 2016, I promise to pay to the order
Sam Sharpe executed and delivered to Don Dole the following instrument:Knoxville, Tennessee May 29, 2016 Thirty days after date I promise to pay Don Dole or order Five Thousand Dollars. The holder of
Sandra and Thomas McGuire entered into a purchase-and-sale agreement for “Becca’s Boutique” with Pascal and Rebecca Tursi. The agreement provided that the McGuires would buy the store for
On September 2, 2012, Levine executed a mortgage bond under which she promised to pay the Mykoffs a preexisting obligation of $54,000. On October 14, 2015, the Mykoffs transferred the mortgage to
Roy Rand executed and delivered the following note to Sue Sims: “Chicago, Illinois, June 1, 2016; I promise to pay to Sue Sims or bearer, on or before July 1, 2016, the sum of \($7,000.\) This note
On December 2, 2016, Miles executed and delivered to Proctor a negotiable promissory note for \($1,000,\) payable to Proctor or order, due March 2, 2017, with interest at 14 percent from maturity, in
Adams, who reads with difficulty, arranged to borrow \($2,000\) from Bell. Bell prepared a note, which Adams read laboriously. As Adams was about to sign it, Bell diverted Adams’s attention and
On January 2, 2016, seventeen-year-old Martin paid \($2,000\) for a used motorboat to use in his fishing business, after Dealer’s fraudulent misrepresentation of the condition of the boat. Martin
McLaughlin borrowed \($10,000\) from Adler, who, apprehensive about McLaughlin’s ability to pay, demanded security. McLaughlin indorsed and delivered to Adler a negotiable promissory note executed
Eldon’s Super Fresh Stores, Inc., is a corporation engaged in the retail grocery business. William Drexler was the attorney for and the corporate secretary of Eldon’s and was also the personal
November 15, 2016 The undersigned promises to pay to the order of John Doe, Nine Hundred Dollars with interest from date of note. Payment to be made in five monthly installments of One Hundred Eighty
On June 15, 2008, Joanne, for consideration, executed a negotiable promissory note for $10,000, payable to Robert on or before June 15, 2016. Joanne subsequently suffered financial reverses. In
Tate and Fitch were longtime friends. Tate was a man of considerable means; Fitch had encountered financial difficulties. To bolster his failing business, Fitch desired to borrow \($60,000\) from
Alpha orally appointed Omega as his agent to find and purchase for him a 1930 Dodge automobile in good condition, and Omega located such a car. Its owner, Roe, agreed to sell and deliver the car on
On July 1, Anderson sold D’Aveni, a jeweler, a necklace containing imitation gems, which Anderson fraudulently represented to be diamonds. In payment for the necklace, D’Aveni executed and
On August 10, 2014, Theta Electronic Laboratories, Inc., executed a promissory note to George and Marguerite Thomson. Six other individuals, Gerald Exten, Emil O’Neil, James Hane, and their wives
On November 9, Jane Jones writes a check for \($500\) payable to Ralph Rodgers in payment for goods to be received later in the month. Before the close of business on November 9, Jane notifies the
Bank customer Aliaga Medical Center opened a checking account with Harris Bank. Aliaga issued a \($50,000\) check, which bore the notation “void after 90 days.” More than 90 days after the check
Ron Honeycutt was the president, treasurer, and sole stockholder of Sheldon, Inc. (Sheldon’s Lounge), a bar located in Baltimore City. Christine Honeycutt was, at one time, Ron Honeycutt’s wife
In October 2011, Black, the owner of the Grand Opera House, and Harvey entered into a written agreement to lease the opera house to Harvey for five years at a rental of \($300,000\) a year. Harvey
Sheree Demming—a real estate investor in the business of acquiring properties in the Bloomington, Indiana area for remodeling, renovation, leasing, and sale—engaged Cheryl Underwood’s
Stone was the agent authorized to sell stock of the Turner Company at \($10.00\) per share and was authorized in case of sale to fill in the blanks in the certificates with the name of the purchaser,
Raymond Zukaitis was a physician practicing medicine in Douglas County, Nebraska. Aetna issued a policy of professional liability insurance to Zukaitis through its agent, the Ed Larsen Insurance
In 2006, Gauldin and Corn entered into a partnership for the purpose of raising cattle and hogs. The two men were to share equally all costs, labor, losses, and profits.The business was started on
Adam, Stanley, and Rosalind formed a partnership in State X to distribute beer and wine. Their agreement provided that the partnership would continue until December 31, 2019. Which of the following
Berger was planning to produce a fashion show in Las Vegas. In April, Berger entered into a written licensing agreement with CBS Films, Inc., a wholly owned subsidiary of CBS, for presentation of the
Paul Bunyan is the owner of noncumulative 8 percent preferred stock in the Broadview Corporation, which had no earnings or profits in 2014. In 2015, the corporation had large profits and a surplus
Almega Corporation, organized under the laws of State S, has outstanding twenty thousand shares of \($100\) par value nonvoting preferred stock calling for noncumulative dividends of \($5.00\) per
International Distributing Export Company (IDE) was organized as a corporation on September 7, 2009, under the laws of New York and commenced business on November 1, 2009. IDE formerly had existed as
Cress Trust owns houses in Marion County, for whom Rainbow Realty Group, Inc., sells, rents, and manages. The same person serves as Rainbow’s president and Cress’s corporate trustee. Cress offers
Genevieve and William Timmons began their tenancy of a ground-floor apartment at Cobblestone Square in September 2011. Kingsley-Johnston, Inc., is a property management company responsible for
Linda Miller rented 35 acres of pastureland in Wabaunsee County, Kansas, from William Burnett for $1,000 per year. Miller and her husband used the land to grow and harvest brome grass for their
A landlord appeals and a tenant cross-appeals a district court ruling affirming in part and reversing in part a small claims court decision in a residential landlord–tenant dispute.This is a case
Norman Eastwood owns and lives in a single-family home with his wife (the Property). The Property is located in the Willow Bend Lakes Community in Plano, Texas. The Willow Bend Lakes Community is
20 East 67th Street Associates LLC (Landlord) is the owner of a seven-story residential property located at 20 East 67th Street in Manhattan, New York (the Property). On January 2, 2019, Emily Jerome
On February 6, 2014, Baldwin Shields, a Federal Express driver, delivered an envelope to Ramslee Motors, a used car dealership. After delivering the envelope, Shields slipped and fell on snow and ice
Fire destroyed a home owned by Steve and Jimmie Norman in Etowah County, Alabama, in July 2015. Liberty Mutual Fire Insurance Company provided coverage for the losses through a homeowner’s
Royal Capital owned an eight-story commercial building in the Buckhead area of Atlanta. In 2003, Royal Capital purchased an insurance policy from Maryland Casualty to insure the building. After
The Wyricks contacted the Stone Insurance Agency to assist them in procuring insurance for their home in Avon, Connecticut. Stone communicated with Joseph Krar & Associates on the Wyricks’ behalf
In October 2009, John and Cathy Clary obtained a homeowner’s insurance with Allstate Fire and Casualty Insurance Company for their residence located in Eatonton, Georgia. The policy provided that,
Western Heritage Insurance Company issued a commercial insurance policy to Peck Investments doing business as Schooners Restaurant.An endorsement to the policy provided limited coverage for “all
Timothy Johnson went hunting on land leased by the Northumberland Hunt Club, an unincorporated business association operating in Richmond, Virginia. Johnson was a member of the Hunt Club and was
Doug and Gayle Mellin owned a condominium unit in Epping, New Hampshire. The Mellins leased their unit to a tenant who complained about the odor of cat urine emanating from a downstairs neighbor’s
Laurence Traver received a renewal notice for his auto insurance with a due date of March 9, 1994, and an expiration date of March 14, 1994. Traver’s payment was postmarked March 12, 1994, and
Leatha Todd died in April 2017 in Josephine County, Oregon. Leatha’s will stated that she was married to Keith Todd and “had no children from this marriage.” The will further stated that Leatha
Sharon and Eric MacNeil were married in October 1994. Several months into their marriage, Eric was diagnosed with non-Hodgkin’s lymphoma. The couple decided to bank Eric’s sperm. Eric died
In 2006, Eunice and Lloyd Smith Sr. executed a will that bequeathed their home and land to their three sons (Lloyd Jr., Martin, and Derrell) equally as tenants in common. Eunice and Lloyd Sr.
Thomas Bogar died testate in June 2014. An inventory and appraisal of his estate was filed with the probate court in December 2014 and approved by the court.Items of the inventory provided a
In April 2004, Ann Aldrich wrote her will on an “E-Z Legal Form.” In Article III, entitled “Bequests,” Aldrich handwrote instructions stating that all of her listed possessions were to go to
Ralph and Wanda Steele were married for 75 years. They had no children but had many nieces and nephews, including Darrell Steele and Kathy Pace. Wanda died in March 2012. In November 2012, Ralph was
In 1999, Edison Milbourne suffered a work-related brain injury that impaired his ability to care for himself independently. He initially lived at home with his wife, Janita, and his infant child,
FR Holding LLC is a company that deals in investments. Barbara Halper, through her company, Halper LLC, was one of three members and managers of FR Holding. FR Holding’s operating agreement
Ryan Bagley and William Sargent were long-time friends who served in the military together. Prior to July 2014, they had discussed the possibility of forming a partnership to purchase, rent, and
Nordic Townhomes Limited Partnership (Nordic) was established May 25, 1990. When Nordic was formed, it had three limited partners (Vincent Storland, Andrew Volstad, and Helge Nordby) and three
WinCo is a privately owned regional grocery chain based in Idaho with additional stores in Washington, Nevada, California, and Nevada. In 2008, WinCo’s Portland Division maintenance manager, John
Protect My Check, Inc. (PMC), is a Section 501(c)(4), an organization that must not be organized for profit and must be operated exclusively to promote social welfare. While it is based in Florida,
Defendant insurance companies had applied for certificates of authority to conduct business in the state of Montana, as they were contemplating doing business in the state. Although the companies had
Clark Farms is an Iowa corporation with K.W. Clark as its president, secretary, and treasurer. Clark owns and operates two other entities, Casey Clark Farm and White Pines Farm. Woodruff is a
Dennis Willard is a successful, veteran car salesperson who spent about half his career, from February 2005 to December 2016, at Huntington Ford. Willard was regarded as one of Huntington Ford’s
James P. Baldwin formed JPBI, LLC, for the purpose of investing Baldwin’s and his wife’s personal money in 2004. Baldwin owned a 99 percent stake in JPBI and his wife owned the remaining 1
On August 14, 2014, Patrick Wenz was dining at the Harbor Crab restaurant when he was assaulted and injured by Brian Ward, an intoxicated employee of the restaurant who was not working that night.
In December 2010, 55 Day Spa, Inc., signed a three-year lease with “TY Builders LLC” to rent premises owned by Ilan Weiss. The rider to the lease, detailing rent due and other provisions, was
Stephanie Gately was the majority shareholder of Campbell Farming Corporation. Stephanie controlled 51 percent of the company’s shares, while the minority shareholders controlled the remaining 49
McCann Ranch & Livestock Company, Inc., was a closely held corporation created by William McCann, Sr. In the 1970s, Ron and Bill McCann, the creator’s sons, were each given 36.7 percent of the
In the fall of 2011, Caterpillar Inc. began making serious inquiries about the possible acquisition of a Chinese mining company, ERA Mining Machinery Ltd., and its wholly owned subsidiary, Zhengzhou
George Koshy and Anupam Sachdev were friends who formed Indus Systems, Inc., in 1987. Indus provided CAD services, taking client-supplied information, such as manuals and diagrams, and turning them
The directors of Buckhead Community Bank wanted to make Buckhead a “billion-dollar bank.” So, they set out to execute an aggressive growth strategy. To implement the growth strategy, the
Blue Bell is one of the country’s largest ice cream manufacturers. In 2015, the company suffered a listeria outbreak, causing it to shut down, recall all of its products, and lay off a third of its
Eskaton Properties, Inc., develops and supports common interest developments for older adults in Northern California. One of those developments is the Village. The Village consists of 130 homes known
1 percent of Volcano’s shares were tendered. Philips then completed the merger without a shareholder vote. Before the merger concluded, three plaintiffs filed lawsuits, which were combined into a
Polypore and Microporous Products both produced battery separators. Polypore primarily manufactured pure polyethylene separators for use in automotive batteries. The much smaller producer,

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