S FOR HOMEWORK 10 1. Nicholas Bobos hired John Soros, a general contractor, to build a restaurant for him. Bobos signed a loan agreement with Bank of America requiring Bank of America to provide the construction funds to build the restaurant. This standard loan agreement provided that the bank will provide periodic payments Bobos at different stages of the construction project when requested by Bobos. Some problems occurred during the construction and Bobos failed to make payments to Soros for work already completed. Soros sued for breach of contract Bank of America directly to collect the unpaid debt. Is Soros lawsuit appropriate against Ban of America? Why or why not? See the cases Sofias v. Bank of America, 172 Cal.App.3d. 583, 218 Cal. Reptr.388, 1985 Cal. App. Lexis 2445 (Cal. App) 2. Jimmy John, an MSU student, entered into a new lease with CRRM Landlord to rent an apartment unit at 100 Ricks Drive, East Lansing, Michigan. The apartment complex has 20 units and all units are rented by MSU students. The lease was for one year term starting August 1 and ending on July 31 the following year and contained the following clause: 10. Assignment and Subletting. Tenant may not assign or encumber this Lease or its interest in the Premises or any portion thereof arising under this Lease, and may not sublet all or any part of the Premises without first obtaining the written consent of Landlord, which consent should not be unreasonably withheld, conditioned or delayed. Factors the Landlord may consider in deciding whether to consent to an assignment or sublease include (without limitation), (i) the creditworthiness of the assignee and (ii) any non-standard renovations to the Premises or special services required by the assignee or sublessee. One consent should not be the basis for any further consent. Due to a job opportunity, Jimmy John had to relocate immediately after graduation on May 10. He found Michael George, a 60 year old retired musician, who is visiting East Lansing for the summer as part of his retirement adventure sublease the unit until the end of the lease term. The Landlord refused to allow the sublease after Jimmy Johns request because the apartment complex was rented by MSU students. Can the Landlord refuse the sublease? Why or why not? Please briefly explain. 3. Kelly negotiated and signed an employment consulting agreement with ABC Consulting, LLC with the following terms: (1) Employment Commencement Date: August 1, 2010. Employment Termination Date: July 31, 2012; (2) Wages: $1,200; (3) Vacation Time: One day for every other month worked. The vacation time can be taken in any increments between 3 to 7 days; and (4) Form of Payment: The wages will be paid in accordance to the company's payroll practices for its regular employees which is once a month. The agreement was submitted to the payroll department for further processing after it was signed by Kelly and the human resources manager. Two weeks later the human resources manager left the company for another job opportunity. On September 1, 2010, Kelly received her first payroll check in the amount of $1,200. Kelly called the payroll department and complained that the check was incorrect because her wages are $1,200 per two weeks. The payroll manager refused to adjust the payment amount. Kelly filed a lawsuit and wants to introduce in court as evidence an email received from the human resources manager 2 days before she signed the employment consulting agreement providing that her contract wages are $1,200 per week. Should she be allowed to introduce this email as evidence? Why or why not? 4. Mickey Mouse, a 17 year old, wants to purchase a new bicycle for his 17 th birthday. He entered into a contract with a local bike shop to purchase a 20-speed bicycle for $400 with $50 as a down payment and the balance payable in equal monthly installments in the amount of $50. Two months later his friend Olivia accidentally damaged his bicycle and now the 20speed mechanism on the bicycle is not working. To fix the problem will cost him $100 which he does not have. Instead of fixing it, he returned the bicycle to the local bike shop, where he originally purchased it, and he demanded a full refund of all the monies he had already paid for it. The bike shop owner refused. If Mickey Mouse files a lawsuit, what is the likelihood of success? Why or why not