Law 150 – Business Law
Homework # 7
1. I go to a party and get drunk. At the party I enter into a lease agreement for a Toyota
Camry. It is for 36 months and the payments are $1,000 per month which is extremely
high. Over the next 3 months I make the payments, but I try to break the lease because I
was drunk at the time I entered into the lease and had no idea what I was agreeing to.
Assume that I can prove that to a jury, and even better Toyota agrees that I was so drunk
I had no idea what I was doing. Will I be able to get out of the lease? Why or why not?
2. A young stockbroker was rather overwhelmed by a flood of new clients. Assunta, one of
his clients, had purchased XYZ Corp. stock through the broker at a price of $35 per share.
The price had gone down to $29 by the time Assunta telephoned the broker. Assunta
told the broker that she wanted to sell the stock if it went below $30 and inquired as to
the price. The broker did not check the price, but thinking it could not have fallen below
the $30 threshold, simply reassured Assunta that it was still “in the low 30s.”Marta,
Assunta’s cousin, also had purchased XYZ stock at $35 per share and made a similar call
to the broker and received the same response. Marta, however, coincidentally saw the
