The economic loss doctrine states that, when the injured party is a corporation and the
harm is purely economic, the only remedies available are those under the common law.
If Valley Bridge contracts with Rainbow Painters to paint a bridge and the contract
requires that only Sherwin Williams paint be used, then Sherwin Williams, as third
party beneficiary will be able to enforce the contract against either Valley Bridge or
Rainbow Painters.
The bankruptcy of an agent automatically terminates an agency relationship.
The dissolution of a partnership means the same as its termination.
Nella offers to sell her crop of strawberries, which have just been picked, to Morgans
Market. Since she does not specify a time limit for acceptance, Morgans can accept the
offer the following week, as long as Nella has not revoked it.
Local regulation is more effective than state or federal regulation in controlling air
pollution.
If a principal accepts the benefits of a whole unauthorized contract, the principal is
deemed to have ratified the contract and is bound as if the act had been originally
authorized.
Morality plays no part of gambling contract legality.
Nominal damages are awarded in contract cases in which a damage amount was named
in the contract.
Amanda, a recent university graduate, needed a car to get to her new job. To help
Amanda secure a loan for the car, Ted, a friend, agreed to pay the loan should Amanda
default. Ted’s promise to pay the loan is a collateral promise. His promise must be in
writing to be enforceable.
The Constitution ensures that the states retain all power not given to the national
government.
Discuss the concept of a “material fact” in fraud situations.
In 1994, the Arizona Supreme Court decided the case of Hernandez v. Arizona Board of
Regents and found a duty of care to avoid furnishing alcohol to underage consumers. If
in 2008 a Flagstaff, Arizona plaintiff brings a lawsuit against an Arizona universitys
fraternity for providing alcohol to members under the legal drinking age, theHernandez
v. Arizona Board of Regents case will serve as precedent.
In a civil case, the plaintiff must prove the case beyond a reasonable doubt.
Jack and Jill were living together. Jack wanted to start a small retail store, but did not
have good credit. Jill, whose credit was excellent, signed loan agreements with Jack so
he could borrow the money to start the business. Jack used business cards that stated he
was the “owner” of the business. He and Jill filed separate tax returns. Jack stated he
was self-employed and claimed the business was a sole proprietorship. The money that
was earned from the store was placed into a joint checking account owned and used by
Jack and Jill. When there were significant decisions to be made about the business, such
as deciding to franchise the business, the decision was made jointly by Jack and Jill.
Five years after the business was started, Jill left Jack. She claimed she was entitled to
one-half the business’s profits since she and Jack were partners. Jack disagreed and
claimed they never had a partnership. Discuss Jill’s claim.