Lars owns an art studio and gallery in the "Galleria".Galleria is a commercial condominium building consisting of artist galleries, studios and workshops. The condominium is governed by covenants, conditions and regulations (CC&Rs) and a Board made up of owners, which has authority to make "necessary and appropriate rules."

The CC&R contained a rule that any gallery located within the space could only sell works of art created within the condominium. No outside works of art were permitted to be sold within the property.

Lars decided to try his luck as a musician and went on tour with his band.Not wanting to leave his studio vacant he leased it to his friend Pan.The lease was for 3 years and prohibited the right to sub-lease. Pan used the studio for a year and decided he too wanted to become a rock star like his friend Lars and headed out on tour.Not wanting to have to pay rent on a space he wasn't using, Pan transferred the lease of the studio to his friend Paul. Pan told Paul to just pay rent directly to Lars , which he did on a timely basis every month.

Paul had just returned from China and had brought with him several works of art that he had purchased at the Ju Artist Village in China and put them up for sale in the gallery. He found that the copies he brought of paintings by Minju were hugely popular and he began importing and selling 100's of them a week.

Four months after Paul had taken possession of the gallery, Paul complained to the Board that the roof was leaking and that common areas were not being kept up properly. In response the Board told Paul to stop selling any works of art that were not created within the condominium complex per the CC&Rs.

Paul refused to stop selling his imported paintings and refused to pay any additional rent until the roof was fixed and the common areas cleaned up.

1. What action, if any, may Board take against Paul to enforce the rule against the sale of outside art? Discuss in detail.

2. Can Lars recover from Pan the rent that Paul has failed to pay, and if Pan or Paul don't pay rent can Lars evict Paul ? Discuss in detail.