Chapter9:

Question9-3 Agreement Ball writes to Sullivan and inquires how much Sullivan is asking for a specic forty-acre tract of land Sullivan owns. In a letter received by Ball, Sullivan states, "I will not take less than $60,000 for the forty-acre tract as specied." Ball immediately sends Sullivan a fax stating, "I accept your offer for $60,000 for the forty-acre tract as specied."

• Discuss whether Ball can hold Sullivan to a contract for the sale of the land.

Question9-7. Third Party Rights Bruce Albea Contracting, Inc., was the general contractor on a state highway project. Albea and the companies that agreed to guarantee the nancial liabilities involved here (called sureties) agreed to be liable for all work on the project. Albea subcontracted with APAC-Southeast, Inc., an asphalt company. The contract stated that it could not be assigned without Albea's con-sent. Later, Albea and APAC got into a dispute because APAC wanted to be paid more for its asphalt. APAC then sold and assigned its assets, including the contract, to Matthews Contracting Company. Albea was informed of the assignment and did not approve it but allowed Matthews to work. Matthews demanded higher payments for asphalt, and Albea agreed because no other contractor would step in at the original price. Albea suffered a loss on the job and could not pay its bills, so Albea's sureties paid Matthews $2.7 million for work performed. APAC sued Albea and its sureties for $1.2 million for work it had performed before the contract was delegated to Matthews. The trial court granted APAC $1.2 million. On appeal, the defendants argued that APAC had breached the contract by assignment without consent.

• Did APAC breach the con-tract with Albea?

• Did Albea owe APAC anything? Explain your answers.

• Chapter10:

Question10-110-1. Conditions The Caplans own a real estate lot, and they contract with Faithful Construction, Inc., to build a house on it for $360,000. The specications list "all plumbing bowls and xtures to be Crane brand." The Caplans leave on vacation, and during their absence Faithful is unable to buy and install Crane plumbing xtures. Instead, Faithful installs Kohler brand xtures, an equivalent in the industry. On completion of the building contract, the Caplans inspect the work, discover the substitution, and refuse to accept the house, claiming Faithful has breached the conditions set forth in the specications.

• Discuss fully the Caplans' claim.

Question10-4

10-4. Impossibility of Performance In the following situa-tions, certain events take place after the contracts are formed. Discuss whether each of these contracts is dis-charged because the events render the contracts impos-sible to perform.(a) Jimenez, a famous singer, contracts to perform in your nightclub. He dies prior to performance.(b) Raglione contracts to sell you her land. Just before title is to be transferred, she dies.(c) Oppenheim contracts to sell you one thousand bushels of apples from her orchard in the state of Washington. Because of a severe frost, she is unable to deliver the apples.(d) Maxwell contracts to lease a service station for ten years. His principal income is from the sale of gasoline. Because of an oil embargo by foreign oil-producing nations, gasoline is rationed, cutting sharply into Maxwell's gasoline sales. He cannot make his lease payments.

• Chapter11:

• Question11-1 Additional Terms Strike offers to sell Bailey one thousand shirts for a stated price. The offer declares that shipment will be made by the Dependable Truck Line. Bailey replies, "I accept your offer for one thousand shirts at the price quoted. Delivery to be by Yellow Express Truck Line." Both Strike and Bailey are merchants. Three weeks later, Strike ships the shirts by the Dependable Truck and Bailey refuses shipment. Strike sues for breach of contract. Bailey claims (a) that there never was a con-tract because the reply, which included a modi cation of carriers, did not constitute an acceptance and (b) that even if there had been a contract, Strike would have been in breach owing to having shipped the shirts by Dependable, contrary to the contract terms.

• Discuss fully Bailey's claims.

• Chapter12:

Question12-112-1. Negligence Shannon's physician gives her some pain medication and tells her not to drive after she takes it, as the medication induces drowsiness. In spite of the doctor's warning, Shannon decides to drive to the store while on the medication. Owing to her lack of alertness, she fails to stop at a trafc light and crashes into another vehicle, causing a passenger in that vehicle to be injured.

• Is Shannon liable for the tort of negligence? Explain fully

Question12-5. Negligence Mitsubishi Motors North America, Inc., operates an auto plant in Normal, Illinois. In 2003, TNT Logistics Corp. coordinated deliveries of auto parts to the plant, and DeKeyser Express, Inc., transported the parts. On January 21, TNT told DeKeyser to transport three pallets of parts from Trelleborg YSH, Inc., to the plant. DeKeyser dispatched its driver, Lola Camp. At Trelleborg's loading dock, Camp noticed that the pallets would t inside the trailer only if they were stacked. Camp was concerned that the load might shift during transport. DeKeyser dispatcher Ken Kasprzak and TNT supervisor Alan Marten told her that she would not be liable for any damage. Trelleborg loaded the pallets, and Camp drove to TNT's dock in Normal. When she opened the trailer door, the top pallet slipped. As Camp tried to close the door to prevent the pallet from falling, she injured her shoulder and arm. She led a suit against TNT and Trelleborg, claiming negligence.

• What is their defense? Discuss.

• Chapter13:

Question13-113-1. Product Liability Chen buys a tele-vision set manufactured by Quality TV Appliance, Inc. She is going on vacation, so she takes the set to her mother's house for her mother to use. Because the set is defective, it explodes, causing her mother to be seriously injured. Chen's mother sues Quality to obtain compensation for her injury and for the damage to her house.

• Under what theory or theories discussed in this chapter might Chen's mother recover damages from Quality? Explain.

Question13-8

13-8. Defenses to Product Liability Terry Kunkle and VanBuren High hosted a Christmas party in Berkeley County, South Carolina. Guests had drinks and hors d'oeuvres at a residence and adjourned to dinner in a barn across a public road. Brandon Stroud ferried the guests to the barn in a golf car made by Textron, Inc. The golf car was not equipped with lights, and Textron did not warn against its use on public roads at night. South Carolina does not require golf cars to be equipped with lights, but does ban their operation on public roads at night. As Stroud attempted to cross the road at 8:30 P.M.,his golf car was struck by a vehicle driven by Joseph Thornley. Stroud was killed. His estate led a suit in a South Carolina state court against Textron, alleging strict product liability and product liability based on negligence. The estate claimed that the golf car was defective and unreasonably dangerous.

• chapter 14What might Textron assert in its defense? Explain.

• What might Textron assert in its defense?

• Chapter14:

Question14-4 14-4. Patent Infringement As a cattle rancher in Nebraska, Gerald Gohl used handheld searchlights to nd and help calving animals (animals giving birth) in harsh blizzard conditions. Gohl thought that it would be more helpful to have a portable searchlight mounted on the outside of a vehicle and remotely controlled. He and Al Gebhardt developed and patented practical applications of this ideathe Golight and the wireless, remote-controlled Radio Ray, which could rotate 360 degreesand formed Golight, Inc., to make and market these products. In 1997, Wal-Mart Stores, Inc., began selling a portable, wireless, remote-controlled searchlight that was identical to the Radio Ray except for a stop piece that pre-vented the light from rotating more than 351 degrees. Golight sent Wal-Mart a letter claiming that its device infringed Golight's patent. Wal-Mart sold its remaining inventory of the devices and stopped carrying the product. Golight led a suit in a federal district court against Wal-Mart, alleging patent infringement.

• How should the court rule? Explain.

Question14-8 14-8. Trade Secrets Peggy Hamilton was a major share-holder in Carbon Processing and Reclamation (CPR), LLC. After a dispute, she sold her interest in the com-pany and signed a con dentiality agreement not to divulge company business to anyone. A year later, when William Jones, the owner of CPR, left on a trip, he let an employee, Jesse Edwards, drive his company car. There were boxes containing some detailed company records in the car. Edwards and his wife, Channon, were in the middle of a divorce, and she suspected him of hiding nancial information from her. When Channon saw the boxes in the car her husband was driving, she got a car key from Hamilton, who still had one from when she was an owner. Channon used the key to get into the boxes of company information. Jones then sued Hamilton for breach of the con dentiality agreement, contending that allowing Channon to have access to the les was assisting in the theft of trade secrets. The trial court dis-missed the claim, but Jones appealed.

Could Hamilton's actions be the basis for a claim of trade secret violation? What factors should be taken into consideration?

• Chapter23:

Question23-3 23-3. QUESTION WITH SAMPLE ANSWER: Union Election. Consolidated Stores is undergoing a unionization campaign. Prior to the election, management says that the union is unnecessary to protect workers. Management also provides bonuses and wage increases to the workers during this period. The employees reject the union. Union organizers protest that the wage increases during the election campaign unfairly prejudiced the vote.

• Should these wage increases be regarded as an unfair labor practice? Discuss.

• For a sample answer to Question 23-3, go to Appendix F at the end of this text. 23-2A. Question with Sample AnswerThe NLRB has consistently been suspicious of companies that grant added bene its during election campaigns. These bene its will be considered as an unfair labor practice that biases elections, unless the employer can demonstrate that the bene its were unrelated to the unionization and would have been granted anyway