Questions and Answers of Business Law Text And Cases 15th edition

When Penny Shambo began receiving Medicaid benefits, she and her husband William owned and lived in a house with an appraised value of $125,000 and a mortgage of less than $50,000 in Saratoga County,
Apollo Global Management made a tender offer to the shareholders of Diamond Resorts International. Stephen Cloobeck, the founder of Diamond and the chairman of its board, did not approve of the deal
PRC-Desoto International, Inc., makes and distributes more than 90 percent of the aerospace sealant used in military and commercial aircraft. Packaging Systems, Inc., buys the sealant in wholesale
Larkin, Inc., retains Howard Patterson to manage its books and prepare its financial statements. Patterson, a certified public accountant, lives in Indiana and practices there. After twenty years in
Soon after Teresa DeYoung’s husband died, her mother-in-law also died, leaving an inheritance of more than $400,000 for DeYoung’s children. DeYoung hired John Ruggiero, an attorney, to ensure
Jeffery Guerrero hired James McDonald, a certified public accountant, to represent him and his business in an appeal to the Internal Revenue Service. The appeal was about audits that showed Guerrero
Sara Simon misplaced her Galaxy cell phone in Manhattan, Kansas. Days later, Shawn Vargo contacted her, claiming to have bought the phone from someone else. He promised to mail it to Simon if she
Brandy Sutton was the sole owner of the law firm Pendleton & Sutton in Lawrence, Kansas. Sutton offered a retirement plan as a benefit to the members of her staff. Each employee could contribute
Solomons One, LLC, was formed to develop waterfront property in Maryland. Vernon Donnelly was a member of the LLC and served as the company’s counsel. The state denied Solomons’s request for a
When Larry Neal died, Gary, his brother and the executor of his estate, applied to a Texas state court to probate Larry’s will. The will provided, “I do give and bequeath to my niece, Valorie
Andrew Walker executed a will giving a certain parcel of real estate in fee simple to his three children from a previous marriage, Mark Walker, Michelle Peters, and Andrea Knox. The will granted a
Sherman Hemsley was a well-known actor from the 1970s. Most notably, he played George Jefferson on the television shows All in the Family and The Jeffersons. He was born to Arsena Chisolm and William
Bernd Moving Systems owned a warehouse in Yakima, Washington. American Guarantee & Liability Insurance Company insured Bernd under a policy that included coverage of “Personal property of
American National Property and Casualty Company issued an insurance policy to Robert Houston, insuring certain residential property and its contents against fire and other hazards. Twenty months
Two organizations, Class A Investors Post Oak, LP, and Cosmopolitan Condominium VP, LP, owned adjacent pieces of property in Houston, Texas. Each owner-organization planned to build a high-rise tower
Craig and Sue Shaffer divided their real property into two lots. They enclosed one lot with a fence and sold it to the Murdocks. The other lot was sold to the Cromwells. All of the parties orally
In the city of Tarrytown, New York, Citibank operated a branch that included a building and a parking lot with thirty-six spaces. Tarrytown leased twenty-one of the spaces from Citibank for use as
Bhanmattie Kumar was walking on a sidewalk in Flushing, New York, when she tripped over a chipped portion of the sidewalk and fell. The defective sidewalk was in front of a Pretty Girl store—one of
Mansoor Akhtar lived rent-free in the basement of Anila Dairkee’s duplex in Minneapolis, Minnesota, for more than a year. When Dairkee asked Akhtar to move out, he refused. She changed the locks
Anastasio Guerra agreed to loan his pickup truck to Gina Mandujano so that she could go grocery shopping in exchange for her making him lunch. When Mandujano drove out of the store’s parking lot,
American Multi-Cinema, Inc. (AMC), owns movie theaters. To determine the amount of taxes it owed to Texas, AMC subtracted its cost of goods sold (COGS) from its total revenue. AMC included the cost
KZY Logistics, LLC, transported a load of Mrs. Ressler’s Food Products from New Jersey to California. When KZY’s driver delivered the cargo, the customer rejected it—its temperature was higher
Christie’s Fine Art Storage Services, Inc. (CFASS), is in the business of storing fine works of art at its warehouse in Brooklyn, New York. The warehouse is next to the East River in a flood zone.
Apple, Inc., controls which apps can run on its iPhone software. Apple’s App Store is a website where iPhone users can find, buy, and download the apps. Apple prohibits third-party developers from
St. Luke’s Health Systems, Ltd., operated an emergency clinic in Nampa, Idaho. Saltzer Medical Group, P.A., had thirty-four physicians practicing at its offices in Nampa. Saint Alphonsus Medical
The National Collegiate Athletic Association (NCAA) and the National Federation of State High School Associations (NFHS) set a new standard for non-wood baseball bats. Their goal was to ensure that
It has been estimated that for every dollar spent cleaning up hazardous waste sites, administrative agencies spend seven dollars in overhead. (See Toxic Chemicals and Hazardous Waste.)(a) The first
Sevenson Environmental Services was hired to clean up a Superfund site in Manville, New Jersey, where the soil was contaminated with creosote. (Creosote is a flammable, oily mixture of chemical
Olivia Chernaik and other Oregon residents filed a suit in an Oregon state court against Governor Kate Brown and other state officials. According to the plaintiffs, the state holds “vital natural
by-product of phosphate fertilizer production is pyrite waste, which contains arsenic and lead. From 1884 to 1906, seven phosphate fertilizer plants operated on a forty-three-acre site in Charleston,
The U.S. National Park Service (NPS) manages the Grand Canyon National Park in Arizona under a management plan that is subject to periodic review. After nine years of background work and the
In Richland, Washington, Robert Ingersoll planned his wedding to include about a hundred guests, a photographer, a caterer, a wedding cake, and flowers. Ingersoll had been a customer of Arlene’s
Rainbow School, Inc., has run a child-care facility in Fayetteville, North Carolina, for more than twenty years. In addition to using the word “rainbow” in its name, the school uses rainbow
Kathleen Dodge was a flight attendant for United Continental Holdings, Inc. (UCH). After being assigned to work in Paris, France, she became pregnant. Because UCH does not allow its flight attendants
The Delaware River Port Authority (DRPA) solicited bids to repaint the Commodore Barry Bridge, a mile-long structure spanning the Delaware River between New Jersey and Pennsylvania. Alpha Painting
The Sikh Cultural Society, Inc. (SCS), petitioned the United States Citizenship and Immigration Services (USCIS) for a special immigrant religious worker visa for Birender Singh. The USCIS denied the
Knox Creek Coal Corporation operates coal mines in West Virginia. The U.S. Department of Labor charged Knox’s Tiller No. 1 Mine with “significant and substantial” (S&S) violations of the
A well-documented rise in global temperatures has coincided with a significant increase in the concentration of carbon dioxide in the atmosphere. Many scientists believe that the two trends are
Nan Huang was a senior data analyst for Capital One Financial Corporation. In violation of the company’s confidentiality policies, Huang downloaded and analyzed confidential information regarding
Matrixx Initiatives, Inc., makes and sells over-the-counter pharmaceutical products. Its core brand is Zicam, which accounts for 70 percent of its sales. Matrixx received reports that some consumers
First Solar, Inc., is one of the world’s largest producers of photovoltaic solar panel modules. When First Solar revealed to the market that the company had discovered defects in its products, the
Angie Jolson is the chair of the board of directors of Artel, Inc., and Sam Douglas is the chair of the board of directors of Fox Express, Inc. Jolson and Douglas meet to consider the possibility of
R.A. Yancey Lumber Corporation owned a sawmill in Yancey Mills, Virginia, as well as 2,500 acres of land from which it sold timber. Dick Yancey, Dan Yancey, and Sarah May were the firm’s directors.
Ian Bell loaned $250,000 to Bio Defense Corporation, a waste management company in Massachusetts. Before Bell’s loan came due, Boston Local Development Corporation (BLDC) foreclosed on its own loan
Lockheed Martin Corporation owned an aluminum refinery in St. Croix, Virgin Islands, that produced hazardous waste. Lockheed sold the refinery to Glencore Ltd. Their contract provided that Glencore
Paradise Pools, Inc. (PPI) entered into a contract with Vittorio, LLP, to build a pool as part of a hotel being developed by Takahashi Development. PPI built the pool, but Vittorio, the general
Hewlett-Packard Company (HP) hired detectives to secretly monitor the phones and e-mail accounts of its directors to find the sources of leaks of company information to the media. When the government
M&M Country Store, Inc., operated a gas station and convenience store. Debra Kelly bought M&M from Mary Millett. Under the purchase agreement, Millett was to remain as the corporation’s
AstroStar, Inc., has approximately five hundred shareholders. Its board of directors consists of three members—Eckhart, Dolan, and Macero. At a regular board meeting, the board selects Galiard as
Oxy Corp. is negotiating with Wick Construction Co. for the renovation of Oxy’s corporate headquarters. Wick, the owner of Wick Construction Co., is also one of the five members of Oxy’s board of
The limited liability company (LLC) may be the best organizational form for most businesses. For a significant number of firms, however, the corporate form or some other form of organization may be
The University of Missouri requires employees to disclose inventions developed during their employment so that the university can choose whether to exercise the right to ownership. Galen Suppes was
Armour Pipe Line Company assigned leases to its existing oil wells in Texas to Sandel Energy, Inc. The assignment included royalties for the oil produced from the wells. Armour specified that the
In New York City, 2406-12 Amsterdam Associates, LLC, brought an action in a New York state court against Alianza Dominicana and Alianza, LLC, to recover unpaid rent. The plaintiff asserted cause to
Scott Snapp contracted with Castlebrook Builders, Inc., which was owned by Stephen Kappeler, to remodel a house. Kappeler estimated that the remodeling would cost around $500,000. Eventually,
Q Restaurant Group Holdings, LLC, owns and operates Q-BBQ restaurants. Michael Lapidus managed the restaurants and conducted the day-to-day operations. This included bargaining with the
Floyd Finch and Bruce Campbell were partners in a law firm. They did not have a written partnership agreement, but they shared the firm’s expenses and profits equally. The partnership operated on a
John, Lesa, and Tabir form a limited liability company. John contributes 60 percent of the capital, and Lesa and Tabir each contribute 20 percent. Nothing is decided about how profits will be
Vision Metals, Inc., owned and operated a pipe manufacturing facility that caused groundwater contamination. The Texas Commission on Environmental Quality (TCEQ) issued a plan that obligated Vision
Marc Malfitano and seven others formed Poughkeepsie Galleria as a partnership to own and manage a shopping mall in New York. The partnership agreement stated that “all decisions to be made by the
Chrysler, LLC, awarded a Chrysler-Jeep franchise in Billings, Montana, to Lithia Motors, Inc. Lithia exceeded the sales goals and other expectations expressed in the franchise agreement. Later,
National Foods, Inc., sells franchises to its fast-food restaurants, known as Chicky-D’s. Under the franchise agreement, franchisees agree to hire and train employees strictly according to
McLane Company is a supply-chain services company that distributes goods to retailers. McLane requires employees with physically demanding jobs to have physical evaluations, both when they start work
Dennis Wallace was a deputy sheriff for Stanislaus County, California, when he injured his left knee. After surgery, he was subject to limits on prolonged standing, walking, and running. The county
Cynthia Horn worked for Knight Facilities Management–GM, Inc., in Detroit, Michigan, as a janitor. When Horn developed a sensitivity to cleaning products, her physician gave her a “no exposure to
Split Rail Fence Company sells and installs fencing materials in Colorado. U.S. Immigration and Customs Enforcement (ICE) sent Split Rail a list of the company’s employees whose documentation did
To qualify for leave under the Family and Medical Leave Act (FMLA), an employee must comply with his or her employer’s usual and customary notice requirements, including call-in policies. Robert
Fior Ramirez worked as a housekeeper for Remington Lodging & Hospitality, a hotel in Atlantic Beach, Florida. After her father in the Dominican Republic suffered a stroke, she asked her employer
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 bonuses and wage
Ernesto Lopez, an employee of Visser Ranch, Inc., maintained the equipment at Visser’s farms, ranches, and dairies on call, twenty-four hours a day, seven days a week. Visser provided Lopez with a
Devin Fink was the manager of Precision Tune Auto Care in Charlotte, North Carolina. Randall Stywall brought her car to the shop to have the rear shocks replaced. Fink filled out the service order
Thomas Huskin and his wife entered into a contract to have their home remodeled by House Medic Handyman Service. Todd Hall signed the contract as an authorized representative of House Medic. It
Coal Supply partnership. Arden has authority to purchase the coal needed by A&B to satisfy the needs of its customers. While Arden is leaving a coal mine from which she has just purchased a large
The sale of insurance is a highly specialized field that requires considerable training, education, andskill. American Family Insurance Company sells its products through a network of insurance
Jane Westmas was killed when a tree branch cut by Creekside Tree Service, Inc., fell on her while walking on a public path through the private property of Conference Point Center on the shore of Lake
Jevic Transportation Corporation filed a petition in a federal bankruptcy court for a Chapter 11 reorganization. A group of former Jevic truck drivers, including Casimir Czyzewski, filed a suit and
Under the “plain language” of the Bankruptcy Code, at least one class of creditors must accept a Chapter 11 plan for it to be confirmed. Transwest Resort Properties, Inc., and four related
Caroline McAfee loaned $400,000 to Carter Oaks Crossing. Joseph Harman, president of Carter Oaks Crossing, signed a promissory note providing that the company would repay the amount with interest in
Montoro petitioned himself into voluntary bankruptcy. There were three major claims against his estate. One was made by Carlton, a friend who held Montoro’s negotiable promissory note for $2,500.
Roger Rand loaned funds to Frank Welte to buy farm equipment. Security agreements were executed for the loans, and under these agreements, Welte could not transfer the equipment without Rand’s
Dustin Mosely financed the purchase of two cars with a loan from Show-Me Credit Union (SMCU). When Mosely stopped making payments on the loan, SMCU notified him that it intended to repossess the cars
G&K Farms, a North Dakota partnership, operated a farm in Texas. G&K was insured under the Supplemental Revenue Assistance Payments Program (SURE), through which the federal government
Edward owned a retail sporting goods shop. A new ski resort was being constructed in his area, and to take advantage of the potential business, Edward decided to expand his operations. He borrowed a
Marsh has a prize horse named Arabian Knight. Marsh is in need of working capital. She borrows $50,000 from Mendez, who takes possession of Arabian Knight as security for the loan. No written
Woodsmill Park Limited Partnership borrowed $6.2 million secured by real property in Chicago, Illinois. Bill and Brian Bruce and Matthew O’Malley signed guaranties to meet Woodsmill’s obligation
While working as an executive assistant to David Ducote, Michelle Freytag fraudulently obtained a credit card in Ducote’s name from Whitney National Bank in New Orleans, Louisiana. Freytag told
The law firm of Levy Baldante Finney & Rubenstein, P.C., had a checking account at TD Bank, N.A. The account agreement required notice to the bank of “any problem with a check” within thirty
Euro International Mortgage, Inc. (EIM), held two accounts—Account 9378 and Account 3998—at Bank of America. Ravi Kadiyala was an authorized signatory on Account 9378 but not on Account 3998.
Victor Nacim had a checking account at Compass Bank. The “Deposit Agreement” required him to report an unauthorized transaction within thirty days of his receipt of the statement on which it
Debbie Brooks and Martha Tingstrom lived together. Tingstrom handled their finances. For five years, Brooks did not look at any statements concerning her accounts. When she finally reviewed the
Roy Supply, Inc., and R. M. R. Drywall, Inc., had checking accounts at Wells Fargo Bank. Both accounts required all checks to carry two signatures— that of Edward Roy and that of Twila June Moore,
Via e-mail, John Colglazier, commercial account manager at Don Hinds Ford, Inc., offered to buy twenty Ford Explorers from Beau Townsend Ford Lincoln, Inc., and to pay with a check. Beau Townsend
Guillermo and Guadalupe Albarran and their sons, Ruben and Rolando, owned R. Cleaning Impact, Inc. (RCI). Neresh Kumar owned Amba II, Inc., a check-cashing business. The Albarrans cashed checks
Celine issues a ninety-day negotiable promissory note payable to the order of Hayden.The amount of the note is left blank, pending a determination of the amount that Hayden will need to purchase a
Padraic Gillespie, a student at the University of North Texas, borrowed $12,500 from Bank One, N.A., under its Education One loan program and signed a note for the amount. A few months later, the
Robert Triffin purchased a dishonored payroll check from Fair Law Financial Services (doing business as United Check Cashing) and filed a complaint against the maker seeking to collect on the check.
Denise and Nick Purificato signed a note secured by real property in Florida. The note was transferred through several parties to Aurora Loan Services, LLC. The Purificatos defaulted on the payments.
Thao Thi Duong signed a note in the amount of $200,000 in favor of Country Home Loans, Inc., to obtain a loan to buy a house in Marrero, Louisiana. The note was indorsed “PAY TO THE ORDER OF [blank
Carlos Pardo signed a note to obtain $627,500 to buy a house in Stamford, Connecticut. The note was secured by a mortgage. Later, Pardo signed a loan modification agreement that increased the balance
Thomas Caraccia signed a note and mortgage in favor of VirtualBank to obtain funds to buy property in Palm Beach Gardens, Florida. VirtualBank indorsed the note in blank, making it bearer paper, and

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