Questions and Answers of The Legal Environment

Under the Sales Articles of the UCC, when a contract for the sale of goods stipulates that the seller ship the goods by common carrier “FOB purchaser’s loading dock,” which of the parties bears
Northwest Construction, Inc., made a contract with the state of Washington forhighway construction. Part of the work was turned over under a subcontract to430 Part 2 ContractsYakima Asphalt Paving
New Beginnings provides rehabilitation services for alcohol and drug abuse toboth adults and adolescents. New Beginnings entered into negotiation with Adbarfor the lease of a building in the city of
Parc hired Glaze to remodel and furnish an office suite. Glaze submitted plansthat Parc approved. After completing all the necessary construction andpainting, Glaze purchased minor accessories that
Ordinarily, in an action for breach of a construction contract, the statute oflimitations time period would be computed from the date the contract is:a. Negotiatedb. Breachedc. Begund. SignedAppendix
Which of the following will release all original parties to a contract but willmaintain a contractual relationship?Novation Substituted contracta. Yes Yesb. Yes Noc. No Yesd. No No432 Part 2
Discuss whether employees would have the right of privacy in the following e-mail situations: 1. E-mail sent in a company in which there is no warning given about the lack of privacy in e-mails.
In the midst of the litigation surrounding its program for downloading music, Napster, Inc., discovered that a company was selling t-shirts with its logo on them. Can Napster do anything to prevent
The New York Times discovered that 24 of the employees in its payroll processing center were sending “inappropriate and offensive e-mail in violation of corporate policy.” Do the employees have
Colleges and universities continue to work to help students understand that what they post on the Web is not private information and can often have unintended consequences. The following examples
Glenayre Electronics announced to its employees that it could inspect the laptops it furnished for its employees to use. An employee challenged the inspection of his laptop as a violation of his
APTC, a publicly traded corporation, filed a complaint, captioned “Anonymous Publicly Traded Company v John Does 1 through 5,” asserting that the John Doe defendants, whose identities and
In response to legal cases in which companies have had their internal e-mails used to their disadvantage, several companies have developed programs that automatically destroy e-mails once they have
Customers of a chat room are using the chat room, Maphia, for access to each other and to transfer Sega games to each other. They are able to avoid paying the $19 to $60 the games cost for purchase
The major record companies settled an antitrust suit brought by 40 state attorneys general against them for alleged price-fixing in the sale of CDs. The Chapter 5 Government Regulation of Competition
Moore ran a bakery in Santa Rosa, New Mexico. His business was wholly intrastate. Meads Fine Bread Co., his competitor, engaged in an interstate business. Meads cut the price of bread in half in
BRG of Georgia, Inc. (BRG), and Harcourt Brace Jovanovich Legal and Professional Publications (HJB) are the nation’s two largest providers of bar review materials and lectures. HJB began offering a
Run America, Inc., manufactures running shoes. Its shoe is consistently rated poorly by Run Run Run magazine in its annual shoe review. The number one shoe in Run Run Run’s review is the Cheetah, a
Gardner-Denver is the largest manufacturer of ratchet wrenches and their replacement parts in the United States. Gardner-Denver had two different lists of prices for its wrenches and parts. Its blue
The Aspen ski area consisted of four mountain areas. Aspen Highlands, which owned three of those areas, and Aspen Skiing, which owned the fourth, had cooperated for years in issuing a joint,
Helen was a very forgetful person, so she had placed her bank code (PIN number) on the back of her debit card. A thief stole Helen’s card and was able to take $100 from an ATM on the day of the
Shirley drew a check on her account at First Central Bank. She later telephoned the bank to stop payment on the check, and the bank agreed to do so. Sixteen days later, the check was presented to the
A depositor drew a check and delivered it to the payee. Fourteen months later, the check was presented to the drawee bank for payment. The bank had no knowledge that anything was wrong and paid the
John G. Vowell and his wife, now deceased, had a checking account and a savings/money-market account with Mercantile Bank of Arkansas. In June 1997, Dr. Vowell and his wife allowed their daughter,
Bogash drew a check on National Safety Bank and Trust Co. payable to the order of Fiss Corp. At the request of Fiss Corp., the bank certified the check.The bank later refused to make payment on the
Norris, who was ill in the hospital, was visited by his sister during his last days.Norris was very fond of his sister and wrote a check to her that she deposited in her bank account. Before the
Scott D. Leibling gave his bank, Mellon Bank, an oral stop payment order.Nineteen months later, the check emerged and Mellon Bank honored it.Leibling has filed suit against Mellon Bank for acting
A check has the following endorsements on the back:(1) Paul Frank “without recourse”(2) George Hopkins “payment guaranteed”(3) Ann Quarry “collection guaranteed”(4) Rachell Ott Which of
Blare bought a house and provided the required funds in the form of a certified check from a bank. Which of the following statements correctly describes the legal liability of Blare and the bank?a.
In general, which of the following statements is correct concerning the priority among checks drawn on a particular account and presented to the drawee bank on a particular day?a. The checks may be
Anthony makes a contract to sell a rare painting to Laura for $100,000. The written contract specifies that if Anthony should fail to perform the contract, he will pay Laura $5,000 as liquidated
A contractor departed from the specifications at a number of points in a contract to build a house. The cost to put the house in the condition called for by the contract was approximately $14,000.
In May, a homeowner made a contract with a roofer to make repairs to her house by July 1. The roofer never came to repair the roof, and heavy rains in the fall damaged the interior of the house. The
Protection Alarm Co. made a contract to provide burglar alarm security for Fretwell’s home. The contract stated that the maximum liability of the alarm 452 Part 2 Contracts company was the actual
Master Mfg., Inc., contracted with Accur Computer Repair Corp. to maintain Master’s computer system. Master’s manufacturing process depends on its computer system operating properly at all times.
Jones, CPA, entered into a signed contract with Foster Corp. to perform accounting and review services. If Jones repudiates the contract prior to the date performance is due to begin, which of the
Which of the following concepts affect(s) the amount of monetary damages recoverable by the nonbreaching party when a contract is breached?Forseeability of damages Mitigation of damagesa. Yes Yesb.
Brown Machine Company, a division of Kvaerner U.S., Inc., entered into a contract to supply a machine and tools to Hakim Plast, a food 614 Part 3 Sales and Leases of Goods container–producing
Stock Solution is a “stock photo agency” that leases photographic transparencies produced by professional photographers for use in media advertising. Between October 1, 1994, and May 31, 1995,
Stephan’s Machine & Tool, Inc., purchased a boring mill from D&H Machinery Consultants. The mill was a specialized type of equipment and was essential to the operation of Stephan’s plant. The
On April 5, 1987, Anker, Inc., furnished Bold Corp. with Anker’s financial statements dated March 31, 1987. The financial statements contained misrepresentations that indicated that Anker was
February 15, Mazur Corp. contracted to sell 1,000 bushels of wheat to Good Bread, Inc., at $6.00 per bushel with delivery to be made on June 23. On June 1, Good advised Mazur that it would not accept
Lazur Corp. entered into a contract with Baker Suppliers, Inc., to purchase a used word processor from Baker. Lazur is engaged in the business of selling new and used word processors to the general
In 1972, Donald and Joyce Carnahan purchased a 1-acre lot located on a 22-acre lake. The purchase included a portion of the lake bed. The Carnahans used the lake for recreational activity in both
Bunn and his wife claimed that they had an easement to enter and use the swimming pool on neighboring land. A contract between the former owners of the Bunns’ property and the adjacent apartment
After executing the various deeds, J. M. Fernandez Jr. placed them in a closet(with other valuable papers) for safekeeping until they could be physically delivered to the various grantees, including
Determine whether the following would be fixtures or personal property.a. Refrigerator in a homeb. Refrigerators in an apartment complex with furnished unitsc. Refrigerators in a restaurant kitchend.
What is the relationship between trespass and adverse possession?AppendixLO1
Bradham and other members and trustees of the Mount Olivet Church brought an action to cancel a mortgage on the church property. The mortgage had been executed previously by Davis and other former
Miller executed a deed to real estate, naming Zieg as grantee. He placed the deed in an envelope on which was written “To be filed at my death” and put the envelope and deed in a safe deposit box
Henry Lile owned a house. When the land on which it was situated was condemned for a highway, he moved the house to the land of his daughter, Sarah Crick. In the course of construction work, blasting
Bradt believed his backyard ran all the way to a fence. Actually, a strip on Bradt’s side of the fence belonged to his neighbor Giovannone, but Bradt never intended to take land away from anyone.
Smikahl sold Hansen a tract of land on which were two houses and four trailer lots equipped with concrete patios and necessary connections for utility lines.The tract Hansen purchased was completely
Martin Manufacturing decided to raise additional long-term capital by mortgaging an industrial park it owned. First National Loan Co. agreed to lend Martin $1 million and to take a note and first
Christine and Steve Mallock buried their son in a burial plot purchased at Southern Memorial Park, Inc. Each year the Mallocks conducted a memorial service for their son at his burial plot. On the
O conveys property to A on December 1, 2006. O conveys the same property to B who does not know about A and who records his deed on December 2, 2006.O then conveys the same property to C. Who has
Which of the following statements is correct with respect to a real estate mortgage?a. It must be signed only by the mortgagor (borrower).b. It must be recorded in order to be effective between the
To be enforceable against the mortgagor, a mortgage must meet all the following requirements except:a. Be delivered to the mortgageeb. Be in writing and signed by the mortgagorc. Be recorded by the
Ritz owned a building in which there was a duly recorded first mortgage held by Lyn and a recorded second mortgage held by Jay. Ritz sold the building to Nunn. Nunn assumed the Jay mortgage and had
Which of the following deeds will give a real property purchaser the greatest protection?a. Quitclaimb. Bargain and salec. Special warrantyd. General warranty AppendixLO1
Union Electric wishes to construct a new coal-fired plant in the northeastern corner of Arizona. Union plans to use the maximum achievement technology for the scrubbers on the plant to reduce
Federal Oil Co. was loading a tanker with fuel oil when the loading hose snapped for some unknown reason and about 1,000 gallons of oil poured into the ocean. Federal Oil was prosecuted for this
Philip Carey Co. owned a tract of land in Plymouth Township, Pennsylvania, on which it deposited a large pile of manufacturing waste containing asbestos.Carey sold the land to Celotex, and Celotex
A zoning ordinance of the city of Dallas, Texas, prohibited the use of property in a residential district for gasoline filling stations. Lombardo brought an action against the city to test the
Bermuda Run Country Club, Inc., developed a tract of land, formed a country club, and sold some of the lots to individual buyers. Following various sales and Chapter 50 Environmental Law and Land Use
Some sections of the city of Manitou Springs have hills of varying degrees of slope. To protect against water drainage and erosion, the city adopted a hillside zoning ordinance that required homes on
Kenneth and Mary Norpel purchased a house, and Kenneth attached a 35-foot flagpole to it. He did not obtain the permission of the architectural committee of the Stone Hill Community Association. This
In 1997, Isbell purchased a building in San Diego with the intent to open an adult entertainment establishment there. Because this building was located within 1,000 feet of a residential area,
Explain why a company would want to perform a self-audit to determine whether it has any environmental violations.ApeendixLO1
Manufacturer’s National Bank of Detroit had extended credit to Z&Z Leasing and had taken a mortgage on Z&Z’s property as security for the line of credit.Z&Z defaulted on its payments, and
Which of the following remedies is available against a real property owner to enforce the provisions of federal acts regulating air and water pollution?Citizen Suits Against the Environmental
Under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), commonly known as Superfund, which of the following parties would be liable to the Environmental Protection
The National Environment Policy Act was passed to enhance and preserve the environment. Which of the following is not true?a. The act applies to all federal agencies.b. The act requires that an
Which of the following actions should a business take to qualify for leniency if an environmental violation has been committed?Conduct Environmental Audits Report Environmental Violations to the
Johnny C. Carpenter and Harvey E. Hill died of asphyxiation when a fire broke out in their Hattiesburg, Mississippi, apartment on the morning of February 20, 1983. There were no smoke detectors in
King leased a single dwelling to Moorehead. King brought an action against Moorehead to recover the premises because of nonpayment of rent and to collect the unpaid rent. Moorehead raised the defense
Rod had a five-year lease in a building owned by Darwood and had agreed to pay $800 a month rent. After two years, Rod assigned his rights under the lease to Kelly. Kelly moved in and paid the rent
Sue A. Merrill injured her right shoulder when she fell as she was ascending the front steps leading to the porch and front door of the mobile home that her daughter, Sherri Pritchard, rented from
Alexis Gale was shot and killed while working in the rented business offices of her employer, Mon Ami International. Gale’s husband sued the property owners and managers of the office complex where
A tenant leased an apartment in which so much noise emanated from surrounding apartments late at night and in the wee hours of the morning that he could not get much sleep. The tenant brought suit
Morgan, who rented an apartment in the Melrose Apartments, wanted Melrose to hire additional security guards to protect the lessees from possible crimes.Was Melrose required to do so when crimes by
During the remodeling of an apartment building, tenants had so much dust from the construction settle in their apartment that they experienced damage to their expensive sound and recording equipment.
Sargent rented a second-floor apartment in a building owned by Ross. Anna, Sargent’s four-year-old daughter, fell from an outdoor stairway and was killed.Suit was brought against Ross for her
Charles leased a house from Donald for four years. The rent agreed on was$850 per month. After two years, Charles assigned his rights under the lease to Smith, who moved in and paid rent regularly
Green rented an apartment from Stockton Realty. The three-story building had a washroom and clothesline on the roof for use by the tenants. The clothesline ran very near the skylight, and there was
Williams, an elderly man who was sensitive to heat, rented an apartment in the Parker House. His apartment was fully air-conditioned, which enabled him to stand the otherwise unbearable heat of the
Which of the following provisions must be included to have an enforceable written residential lease?A Description of the Leased Premises A Due Date for the Payment of Renta. Yes Yesb. Yes Noc. No
Bronson is a residential tenant with a 10-year written lease. In the absence of specific provisions in the lease to the contrary, which of the following statements is correct?a. The premises may not
Which of the following provisions must be included in a residential lease agreement?a. A description of the leased premises.b. The due date for payment of rent.c. A requirement that the tenant have
Irene Bracewell was married to W. T. Bracewell and they had a son, Charles.Although Irene loved both her husband and her son, it was clear to everyone that her husband and her son did not get along.
Iona wrote her will. The following year, she wrote another will that expressly revoked the earlier will. Later, while cleaning house, she came across the second will. She mistakenly thought that it
Logsdon, who had three children, disliked one of them without any reason. In his will, he left only a small amount to the child he disliked and gave the bulk of his estate to the remaining two. On
Field executed a will. On her death, the will was found in her safe deposit box, but the part of it containing the fifth bequest had been torn from the will. This torn fragment was also found in the
Miller wrote a will that was 11 pages long and enclosed it in an envelope, which she sealed. She then wrote on the envelope “My last will & testament” and signed her name below this statement.
Lingenfelter’s will was offered for probate and was opposed. The testatrix was sick, highly nervous, and extremely jealous, and she committed suicide a week after executing the will. She had,
Copenhaver wrote a will in ink, which was found with her other papers in her bedroom at her death. Pencil lines had been drawn through every provision of the will and the signature. There was no
George Baxter executed a will that left the bulk of his estate to the Church of Christ in New Boston, Texas. Two members of the church served as the witnesses for the will. Is the will valid? [In re
Jeanette Wall worked for D. J. Sharron for many years. Sharron executed a will leaving his entire estate to Jeanette. He reexecuted the same will sometime thereafter with the same provisions.
Valerie and Flora are the beneficiaries of a trust left to them by their mother upon her death. Their mother named Art Casanelli, a family friend, as the trustee. Flora has seen Art driving a new car
Can a murderer inherit property from his victim? Why or why not?AppendixLO1

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