1. Agency. Frank delivers milk under a renewable six-month contract called a Milk Delivery Agent Agreement. The agreement identifies Frank as an independent contractor. The company collects payment from customers and takes complaints about delivery. Rank was given the route for his paper delivery and was required to deliver the paper within a certain time period each day. Frank delivered the papers using his own vehicle and had to provide proof of insurance to the company. The company provided health and disability insurance but did not withhold taxes from Franks weekly income. One morning, Frank was delivering papers and collided with Santa Claus on his bike. Santa Claus filed a negligence action against Frank and the newspaper company. The newspaper company argued that it should not be liable because Frank was an independent contractor. Who wins? Why? 2. Agency. Homeowners Jake and Lilo Cross hired Katrina and Wave Pappadopoulos, doing business as Crete Creations to undertake a landscaping project. The Crosses made payments on the contract with checks payable to Katrina, who deposited them in his personal account. There was no Crete Creations account. Later, alleging breach of contract, the Crosses filed a suit in a Georgia state court against the Pappadopouloses. The defendants argued that they could be be liable because the contract was not with them personally. They claimed that they were the agents of Never Brown Landscaping and Waterworks, Inc., at the time of the contract and had once filed for bankruptcy. The Crosses pointed out the name Never Brown was not in the contract. Should the Pappadopouloses as individuals be held liable on the contract? Why or why not? 3. Agency. To display puffer fish dishes in restaurants, Manchu Slaphappy ordered fish tank units from False Sturgeon, Inc. False Sturgeon faxed a credit application to Slaphappy. The application was faxed back with a signature that appeared to be Slaphappys. False Sturgeon delivered the units. When they were not paid for, False Sturgeon filed a suit against Slaphappy to collect. Slaphappy denied that he had seen the application or signed it. He testified that he referred all credit questions to the chick in the office. Who was the principal? Who was the agent? Who is liable on the contract? 4. Contracts. Ames, seeking business for his lawn maintenance firm, posted the following notice in the meeting room of the Antlers, a local lodge: To the members of the AntlersSpecial this month. I will resod your lawn for $4.00 per square foot using Fairway brand sod. This offer expires July 15. The notice also included Amess name, address, and signature and specified that the acceptance was to be in writing. Bates, a member of the Antlers, and Cramer, the janitor, read the notice and were interested. Bates wrote a letter to Ames saying he would accept the offer if Ames would use Putting Green brand sod. Ames received this letter July 14 and wrote to Bates saying he would not use Putting Green sod. Bates received Amess letter on July 16 and promptly wrote Ames that he would accept Fairway sod. Cramer wrote to Ames on July 10 saying he accepted Amess offer. By July 15, Ames had found more profitable ventures and refused to resod either lawn at the specified price. Bates and Cramer brought an appropriate action against Ames for breach of contract. Discuss and explain Bates claim? Discuss and explain Cramers claim? 5. Contracts. Red Owl Stores told the Hoffman family that upon the payment of approximately $118,000 a grocery store franchise would be built for them in a new location. On the advice of Red Owl, the Hoffmans bought a small grocery store in their hometown to get management experience. After the Hoffmans operated at a profit for three months, Red Owl advised them to sell the small grocery, assuring them that Red Owl would find them a larger store elsewhere. Although selling at that point would cost them much profit, the Hoffmans followed Red Owls directions. Additionally, to raise the required money for the deal, the Hoffmans sold their bakery business in their hometown. The Hoffmans also sold their house and moved to a new home in the city where their new store was to be located. Red Owl then informed the Hoffmans that it would take $124,100, not $118,000, to complete the deal. The family scrambled to find the additional funds. However, when told by Red Owl that it would now cost them $134,000 to get their new franchise, the Hoffmans decided to sue instead. Should Red Owl be held to its promises? Explain. 6. Contracts. Explain the outcome of each transaction. a. On March 20, Andy Small became seventeen years old, but he appeared to be at least eighteen (the age of majority). On April 1, he moved into a rooming house in Chicago and orally agreed to pay the landlady $800 a month for room and board, payable at the end of each month. b. On April 4, he went to Honest Hals Cafeteria and signed a contract to buy a used car on credit with a small down payment. He made no representation as to his age, but Honest Hal represented the car to be in top condition, which it subsequently turned out not to be. c. On April 7, Andy sold and conveyed to Adam Smith a parcel of real estate that he owned. On April 30, Andy refused to pay his landlady for his room and board for the month of April; he returned the car to Honest Hal and demanded a refund of his down payment; and he demanded that Adam Smith reconvey the land, although the purchase price, which Andy received in cash, had been spent in riotous living. 7. Contracts. In consideration of $1,800 paid to him by Joyce, Hill gave Joyce a written option to purchase his house for $180,000 on or before April 1. Prior to April 1, Hill verbally agreed to extend the option until July 1. On May 18, Hill, known to Joyce, sold the house to Gray, who was ignorant of the unrecorded option. On May 20 Joyce sent an acceptance to Hill who received it on May 25. Is there a contract between Joyce and Hill? Explain. 8. Employment Law. The Steamship Clerks Union has approximately 124 members, 80 of whom are classified as active. Members serve as steamship clerks who, during the loading and unloading of vessels in the port of Boston, check cargo against inventory lists provided by shippers and consignees. The work is not taxing; it requires little in the way of particular skills. On October 1, the Union formally adopted the membership sponsorship policy (the MSP), which provided that any applicant for membership in the Union (other than an injured longshoreman) had to be sponsored by an existing member for his application to be considered. The record reveals, without contradiction, that (a) the Union had no African-American or Hispanic members when it adopted the MSP; (b) blacks and Hispanics constituted from 8 percent to 27 percent of the relevant labor pool in the Boston area; (c) the Union welcomed at least thirty new members over the next six years and then closed the membership rolls; (d) all sponsored applicants during this period and, hence, all the new members, were Caucasian; and (e) every recruit was related to (usually the son or brother of) a Union member. After conducting an investigation and instituting administrative proceedings, the Equal Employment Opportunity Commission (EEOC) brought suit, alleging that the Union had discriminated against African-Americans and Hispanics by means of the MSP. Explain whether or not the EEOC will prevail. 9. Intellectual Property. Stella, a chemist, was employed by Johnson, a manufacturer, to work on a secret process for Johnsons product under an exclusive three-year contract. Johnson employed Dabney, a salesperson, on a week-to-week basis. Stella and Dabney resigned their employment with Johnson and accepted employment in their respective capacities with Washington, a rival manufacturer. Dabney began soliciting patronage from Johnsons former customers, whose names he had memorized. What are the rights of the parties in (a) a suit by Johnson to enjoin Stella from working for Washington and (b) a suit by Johnson to enjoin Dabney from soliciting Johnsons customers? 10. Sales under the UCC. 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 Davids factory, delivered at the factory at a price of $50 per ton. David immediately replied by letter to Judy stating that he accepted the offer, that he would purchase all of his mine-run coal from Judy, and that he would need 200 tons of coal during the first week in January. During the months of January, February, and March, Judy delivered to David a total of 700 tons of coal, for which David made payment to Judy at the rate of $50 per ton. On April 10, David ordered 200 tons of mine-run coal from Judy, who replied to David on April 11 that she could not supply David with any more coal except at a price of $58 per ton delivered. David thereafter purchased elsewhere at the market price, namely $58 per ton, all of his factorys requirements of mine-run coal for the remainder of the year, amounting to a total of 2,000 tons of coal. Can David now recover damages from Judy at the rate of $8 per ton for the coal thus purchased, amounting to $16,000?