23-1. Union Recognition A group of employees at the Briarwood Furniture Co.'s manufacturing plant were interested in joining a union. A representative of the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) told the group that her union was prepared to rep-resent the workers and suggested that the group begin organizing by obtaining authorization cards from their fellow employees. After obtaining 252 authorization cards from among Briarwood's 500 non-management employees, the organizers requested that the company recognize the AFL-CIO as the ofcial representative of the employees. The company refused. Has the company violated federal labor laws? What should the organizers do?

10-2. QUESTION WITH SAMPLE ANSWER: Discharge by Agreement.Junior owes creditor Iba $1,000, which is due and payable on June 1. Junior has been in a car accident, has missed a great deal of work, and consequently will not have the funds on June 1. Junior's father, Fred, offers to pay Iba $1,100 in four equal installments if Iba will discharge Junior from any further liability on the debt. Iba accepts. Is this transaction a novation or an accord and satisfaction? Explain.

10-2A. Question with Sample AnswerA novation exists when a new, valid contract expressly or impliedly discharges a prior contract by the substitution of a party. Accord and satisfaction exists when the par-ties agree that the original obligation can be discharged by a substituted performance. In this case, Fred's agreement with Iba to pay off Junior's debt for $1,100 (as com-pared to the $1,000 owed) is denitely a valid contract. The terms of the contract substitute Fred as the debtor for Junior, and Junior is denitely discharged from further liability. This agreement is a novation

11-2. QUESTION WITH SAMPLE ANSWER: Online Acceptance. Anne is a reporter for Daily Business Journal, a print publication consulted by investors and other businesspersons. She often uses the Internet to perform research for the articles that she writes for the publication. While visiting the Web site of Cyberspace Investments Corp., Anne reads a pop-up window that states, "Our business newsletter, E-Commerce Weekly, is available at a one-year subscrip-tion rate of $5 per issue. To subscribe, enter your e-mail address below and click 'SUBSCRIBE.' By subscribing, you agree to the terms of the subscriber's agreement. To read this agreement, click 'AGREEMENT.' " Anne enters her e-mail address, but does not click on "AGREEMENT" to read the terms. Has Anne entered into an enforceable contract to pay for E-Commerce Weekly? Explain.

11-2A. Question with Sample AnswerAnne has entered into an enforceable contract to sub-scribe to E-Commerce Weekly. In this scenario, the offer to deliver, via e-mail, the newsletter was presented by the offeror with a statement of how to acceptby clicking on the "SUBSCRIBE" button. Consideration was in the promise to deliver the newsletter and in the price that the sub-scriber agreed to pay. The offere had an opportunity to read the terms of the subscription agreement before making the contract. Whether or not she actually read those terms does not matter

24-3. QUESTION WITH SAMPLE ANSWER: Sales. On June 28, a salesperson for Renowned Books called on the Gonchars at their home. After a very persuasive sales pitch by the agent, the Gonchars agreed in writing to purchase a twenty-volume set of historical encyclopedias from Renowned Books for a total of $299. A down payment of $35 was required, with the remainder of the cost to be paid in monthly payments over a one-year period. Two days later, the Gonchars, having second thoughts, con-tacted the book company and stated that they had decided to rescind the contract. Renowned Books said this would be impossible. Did Renowned Books violate any consumer law by not allowing the Gonchars to rescind their contract? Explain.

24-3A. Question with Sample AnswerYes. A regulation of the Federal Trade Commission (FTC) under Section 5 of the Federal Trade Commission Act makes it a violation for door-to-door sellers to fail to give consum-ers three days to cancel any sale. In addition, a number of state statutes require this three-day "cooling off" period to protect consumers from unscrupulous door-to-door sellers. Because the Gonchars sought to rescind the contract within the three-day period, Renowned Books was obligated to agree to cancel the contract. Its failure to allow rescission was in violation the FTC regulation and of most state statutes.

25-3. Environmental Laws Moonbay is a home-building corporation that primarily develops retirement com-munities. Farmtex owns a number of feedlots in Sunny Valley. Moonbay purchased 20,000 acres of farmland in the same area and began building and selling homes on this acreage. In the meantime, Farmtex continued to expand its feedlot business, and eventually only 500 feet separated the two operations. Because of the odor and ies from the feedlots, Moonbay found it dif cult to sell the homes in its development. Moonbay wants to enjoin (prevent) Farmtex from operating its feedlot in the vicin-ity of the retirement home development. Under what common law theory would Moonbay le this action? Has Farmtex violated any federal environmental laws? Discuss.

26-1. Property Ownership 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 deed. Rafael properly recorded the deed immediately. Several months later, Madison learned that he had had full title to the tract of land. He then sold the land to Linda by warranty deed. Linda knew of the earlier purchase by Rafael but took the deed anyway and later sued to have Rafael evicted from the land. Linda claimed that because she had a warranty deed, her title to the land was better than that conferred by Rafael's quitclaim deed. Will Linda succeed in claim-ing title to the land? Explain.