Question
4. The chairman of the Board of Directors of Banner Corp. wrote a signed letter to Peter, who is 62 years old and planned to
4. The chairman of the Board of Directors of Banner Corp. wrote a signed letter to Peter, who is 62 years old and planned to retire at the end of the year, "The corporation will pay you a pension of $100,000 a year for life if you retire as planned, and agree not to take another job in this industry." Peter replied in a signed letter to the Chairman that "I promise to do as you wish." Two years later, Banner Corp. stopped the pension payments. Peter sues Banner Corp. for breach of contract.
(a) Judgment for whom? Fully explain.
(b) Instead of the above letter, assume that at Peter's retirement dinner, the Chairman of the Board of Directors of Banner Corp. said in his speech, "In view of the fact that you had been a faithful employee for thirty years and have resisted efforts of our competitors to hire you away from us, the corporation promises to pay you a pension of $100,000 a year for life." Is Banner Corp.'s promise enforceable by Peter? Fully explain.
5. While carrying the body of Scott, on the way to the cemetery where he was to be buried, the driver of the funeral hearse stopped suddenly at a street corner, causing Scott's coffin to fall out of the hearse and his deceased body to fall on the ground. Scott's wife, Sheila, and their three small children had been following the hearse in a separate car and had witnessed the incident. Assume that the state where Sheila lived allowed her to sue Bailey's Funeral Home (the driver's employer and owner of the hearse), and also that other relatives of Scott's were also present and witnessed Scott's body fall out of the coffin and onto the street.
Scott's younger brother, Gary, with whom he had a close relationship, was out of the country at the time of the funeral and therefore could not attend the funeral. Gary became emotionally distraught after he learned of and saw a video of the incident. Gary decided
to sue Bailey's Funeral Home as well for his suffering. Would he be successful in pursuing this claim? Fully explain.
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