Archives: Solution Manual

978-1285860381 Chapter 29 Solution Manual Part 1

978-1285860381 Chapter 29 Solution Manual Part 1

Suggested Additional Assignments Research: Sexual Harassment Policies Ask students who are employed to find their company’s sexual harassment policy. What type of behavior does it prohibit? What are the procedures for complaining about harassment? Do they think it is comprehensive? […]

9 Pages | June 22, 2019
978-1285860381 Chapter 28 Solution Manual Part 3

978-1285860381 Chapter 28 Solution Manual Part 3

Principal’s Liability for Torts An employer is liable for a tort committed by its employee acting within the scope of employment or acting with apparent authority. Respondeat Superior A master is liable for physical harm caused by the negligent conduct […]

9 Pages | June 22, 2019
978-1285860381 Chapter 28 Solution Manual Part 2

978-1285860381 Chapter 28 Solution Manual Part 2

Other Duties of an Agent Duty to Obey Instructions An agent must obey her principal’s instructions unless the principal directs her to behave illegally or unethically. Duty of Care An agent has a duty to act with reasonable care. In […]

8 Pages | June 22, 2019
978-1285860381 Chapter 28 Solution Manual Part 1

978-1285860381 Chapter 28 Solution Manual Part 1

Suggested Additional Assignments Personal Experiences: Agency Ask students to prepare a list of five instances in which they have acted as an agent for someone else, or someone else has acted as an agent for them. Sports Agents For many […]

8 Pages | June 22, 2019
978-1285860381 Chapter 27 Solution Manual Part 2

978-1285860381 Chapter 27 Solution Manual Part 2

Fraud Primary Liability. Most securities litigation against accountants is brought under §10(b) and Rule 10b-5 of the 1934 Act. Under §10(b), an auditor is liable for making (1) a misstatement or omission of a material fact (2) knowingly or recklessly […]

8 Pages | June 22, 2019
978-1285860381 Chapter 27 Solution Manual Part 1

978-1285860381 Chapter 27 Solution Manual Part 1

Suggested Additional Assignments Interview Ask students to interview a certified public accountant who audits companies (as opposed to one who specializes in taxation). Students should ask the following: Is the accountant concerned about increased liability? Has she made any changes […]

8 Pages | June 22, 2019
978-1285860381 Chapter 26 Solution Manual Part 2

978-1285860381 Chapter 26 Solution Manual Part 2

Negligence You Be the Judge: Gulf States Section, PGA, Inc. v. Whitney National Bank of New Orleans1 Facts: Adrenetti Collins was a secretary who worked in the PGA office. During a four-month period, she forged 18 PGA checks totaling $22,699.81. […]

6 Pages | June 22, 2019
978-1285860381 Chapter 26 Solution Manual Part 1

978-1285860381 Chapter 26 Solution Manual Part 1

Suggested Additional Assignments Research: Literary References Ask students to look at the pictures of the checks on pp. 620 and 622 and answer these questions: Who are Charles Bingley and Jane Bennet (p. 620) and Frederick Wentworth and Anne Elliot […]

8 Pages | June 22, 2019
978-1285860381 Chapter 25 Solution Manual Part 2

978-1285860381 Chapter 25 Solution Manual Part 2

Shelter Rule Under the shelter rule, the transferor of an instrument passes on all of his rights. When a holder in due course transfers an instrument, the recipient acquires all the same rights even if he is not a holder […]

7 Pages | June 22, 2019
978-1285860381 Chapter 25 Solution Manual Part 1

978-1285860381 Chapter 25 Solution Manual Part 1

Suggested Additional Assignments Writing Exercise Ask students to write their own mystery story modeled on the vignette that opens the chapter. This exercise will help them consolidate their grasp of the material in the chapter. In class, ask them to […]

6 Pages | June 22, 2019
978-1285860381 Chapter 24 Solution Manual Part 2

978-1285860381 Chapter 24 Solution Manual Part 2

Case: In ReRoser1 Facts: Robert Roser obtained a loan from Sovereign Bank which he promptly used to buy a car. Nineteen days later, Sovereign filed a lien with the state of Colorado. The bank expected that, with a perfected interest, […]

8 Pages | June 22, 2019
978-1285860381 Chapter 24 Solution Manual Part 1

978-1285860381 Chapter 24 Solution Manual Part 1

Suggested Additional Assignments Ethics Problem: To Seize or Not to Seize To the Students: You are the manager of a small bank in the western United States. Your bank loaned $75,000 to a young farmer to help him purchase a […]

9 Pages | June 22, 2019
978-1285860381 Chapter 23 Solution Manual Part 2

978-1285860381 Chapter 23 Solution Manual Part 2

Buyer’s Remedies If a seller fails to deliver goods, repudiates, or if the buyer rightfully rejects the goods, the buyer is entitled to cancel the contract. She may also recover money paid to the seller, assuming she has not received […]

7 Pages | June 22, 2019
978-1285860381 Chapter 23 Solution Manual Part 1

978-1285860381 Chapter 23 Solution Manual Part 1

Suggested Additional Assignments Drafting and Role Play: Contract Warranties and Remedies The students will negotiate and draft a computer contract. Half of the students will represent Profit & Densom, a firm of 10 accountants. The others will represent Ibex, a […]

7 Pages | June 22, 2019
978-1285860381 Chapter 22 Solution Manual Part 2

978-1285860381 Chapter 22 Solution Manual Part 2

Implied Warranties Implied Warranty of Merchantability “Merchantability” is a concept most non-lawyers are not familiar with. It means that goods are fit for their normal purposes. Case: Goodman v. Wenco Foods, Inc.1 Facts: Fred Goodman bit into a Wendy’s hamburger […]

9 Pages | June 22, 2019
978-1285860381 Chapter 22 Solution Manual Part 1

978-1285860381 Chapter 22 Solution Manual Part 1

Suggested Additional Assignments Research and Drafting Exercise: Warranties Ask students to find a sales slip with a warranty on it, read the warranty, and then rewrite the warranty in plain English. Explain exactly what the company will pay for and […]

9 Pages | June 22, 2019
978-1285860381 Chapter 21 Solution Manual Part 2

978-1285860381 Chapter 21 Solution Manual Part 2

Case: Mathis v. Exxon Corporation1 Facts: Exxon marketed gasoline to retailers in three ways. Franchisees (who owned local gas stations) were required to purchase a minimum number of gallons per month at the dealer tank wagon price (DTW) set by […]

9 Pages | June 22, 2019
978-1285860381 Chapter 21 Solution Manual Part 1

978-1285860381 Chapter 21 Solution Manual Part 1

Suggested Additional Assignments Good Faith Students should write a short description of realistic commercial behavior that skirts the border between lawful, aggressive business dealing and bad faith. Students should know in their own mind whether or not the behavior is […]

9 Pages | June 22, 2019
978-1285860381 Chapter 20 Solution Manual Part 2

978-1285860381 Chapter 20 Solution Manual Part 2

Reciprocal Promises and Conditions A contract may provide a list of what each party promises to do. In this format, each party is responsible for performance whether or not the other party breaches. These provisions are reciprocal promises, which means […]

5 Pages | June 22, 2019
978-1285860381 Chapter 20 Solution Manual Part 1

978-1285860381 Chapter 20 Solution Manual Part 1

Suggested Additional Assignments Research: Lawyers and Public Opinion Students should conduct an informal survey of friends and associates to gather ideas on public perception of lawyers. They should categorize the comments and evaluate what types of people have a negative […]

8 Pages | June 22, 2019
978-1285860381 Chapter 19 Solution Manual Part 2

978-1285860381 Chapter 19 Solution Manual Part 2

Additional Case: Hyler v. Garner 1 Facts: Jim and Bonnie Hyler enjoyed traveling about the country with a camping trailer that they pulled behind their car. Jim sustained a back injury that left his right leg numb and he was […]

7 Pages | June 22, 2019
978-1285860381 Chapter 19 Solution Manual Part 1

978-1285860381 Chapter 19 Solution Manual Part 1

Suggested Additional Assignments Research: Professional Sports and Contract Law Students should find news articles dealing with contract disputes between professional athletes and their teams. What are the facts of the dispute? What legal issues do the disputes raise? What remedies […]

8 Pages | June 22, 2019
978-1285860381 Chapter 18 Solution Manual Part 2

978-1285860381 Chapter 18 Solution Manual Part 2

Impossibility If performing a contract was truly impossible, a court will discharge the agreement. But if honoring the deal merely imposed a financial burden, the law will generally enforce the contract. True Impossibility These cases are easy—and rare. True impossibility […]

8 Pages | June 22, 2019
978-1285860381 Chapter 18 Solution Manual Part 1

978-1285860381 Chapter 18 Solution Manual Part 1

Suggested Additional Assignments Drafting Exercise: Substantial Performance Scenarios Divide students into three groups. Have one group brainstorm a relatively simple residential construction project, such as building a deck, installing an in-ground pool, or adding an addition containing a family room. […]

8 Pages | June 22, 2019
978-1285860381 Chapter 17 Solution Manual Part 2

978-1285860381 Chapter 17 Solution Manual Part 2

You Be the Judge: Wells Fargo Bank Minn. v BrooksAmerica Mortgage Corp. 1 Facts: Michael Brooks desperately needed financing for his company, BrooksAmerica, so he agreed to a sale-leaseback agreement with Terminal Marketing Co. Terminal would pay BrooksAmerica $250,000, and […]

7 Pages | June 22, 2019
978-1285860381 Chapter 17 Solution Manual Part 1

978-1285860381 Chapter 17 Solution Manual Part 1

Suggested Additional Assignments Drafting Exercise: Avoiding Third-Party Claims This hypothetical is based on a real suit between sports fans from the University of Wisconsin and the University of California at Los Angeles (UCLA). The students represent UCLA. This year’s UCLA […]

7 Pages | June 22, 2019
978-1285860381 Chapter 16 Solution Manual Part 2

978-1285860381 Chapter 16 Solution Manual Part 2

The UCC’s Statute of Frauds The UCC requires a writing for the sale of goods priced $500 or more. The Code’s requirements are easier to meet than those of the common law. UCC §2-201, the statute of frauds section, has […]

8 Pages | June 22, 2019
978-1285860381 Chapter 16 Solution Manual Part 1

978-1285860381 Chapter 16 Solution Manual Part 1

Suggested Additional Assignments Get it in Writing, and Then Read It A side benefit of the statute of frauds is that the parties end up with a written record of the agreement they made. However, the value of this memorial […]

8 Pages | June 22, 2019
978-1285860381 Chapter 15 Solution Manual Part 2

978-1285860381 Chapter 15 Solution Manual Part 2

Landmark Case Sherwood v. Walker 66 Mich. 568 Supreme Court of Michigan, 1887 Facts: Rose 2d of Aberlone was a gentle, 1,420 lb. cow that lived in Michigan in 1886. Rose’s owner, Hiram Walker & Sons, was a cattle breeder […]

7 Pages | June 22, 2019
978-1285860381 Chapter 15 Solution Manual Part 1

978-1285860381 Chapter 15 Solution Manual Part 1

Suggested Additional Assignments Drafting Exercise: Distinguishing Puery and Misrepresentation Students should write one page of dialogue or prose describing a sales pitch made to a consumer. The seller should tread the fine line between puffery and misrepresentation, and the student […]

8 Pages | June 22, 2019
978-1285860381 Chapter 14 Solution Manual Part 2

978-1285860381 Chapter 14 Solution Manual Part 2

You Be The Judge: Ransburg v Richards1 Facts: Barbara Richards leased an apartment at Twin Lakes, a complex owned by Lenna Ransburg. The written lease declared that: • Twin Lakes would “gratuitously” maintain the common areas. • Richards’ use of […]

9 Pages | June 22, 2019
978-1285860381 Chapter 14 Solution Manual Part 1

978-1285860381 Chapter 14 Solution Manual Part 1

Suggested Additional Assignments Research: Exculpatory Clauses Students should find an exculpatory clause, perhaps on a parking lot claim check, check-room receipt, or sports admission ticket, and report in class precisely what conduct or events the clause covers, and whether, in […]

8 Pages | June 22, 2019
978-1285860381 Chapter 13 Solution Manual Part 2

978-1285860381 Chapter 13 Solution Manual Part 2

Employment Agreements A covenant not to compete is an agreement in which an employee promises not to work for a competitor for some time after leaving the company. It used to be that these covenants were rare and reserved for […]

7 Pages | June 22, 2019
978-1285860381 Chapter 13 Solution Manual Part 1

978-1285860381 Chapter 13 Solution Manual Part 1

Suggested Additional Assignments Research: Binding Promise Using the library or the Internet, students should find a current article that raises a dispute about a promise. Typically, someone made a statement that another person or company relied on, but the speaker […]

8 Pages | June 22, 2019
978-1285860381 Chapter 12 Solution Manual Part 2

978-1285860381 Chapter 12 Solution Manual Part 2

Additional Case: Bayway Rening Co. v. Tosco Corp.1 Facts: Bayway Refining and Oxygenated Marketing and Trading A.G. (OMT) were both in the business of buying and selling petroleum products. Bayway agreed to sell OMT 60,000 barrels of gasoline, and OMT […]

8 Pages | June 22, 2019
978-1285860381 Chapter 12 Solution Manual Part 1

978-1285860381 Chapter 12 Solution Manual Part 1

Suggested Additional Assignments Bob and Katrina: Let’s Make a Deal The chapter opens with a page of dialogue. Bob, a movie director, and Katrina, an actress, believe they have formed a contract—but what are its terms? Divide students into two […]

8 Pages | June 22, 2019
978-1285860381 Chapter 11 Solution Manual Part 2

978-1285860381 Chapter 11 Solution Manual Part 2

Additional Case: Novak v. Credit Bureau Collection Service 1 Facts: David Novak suffered a brain aneurysm and was unconscious. An ambulance took him to Saint Regional Medical Center, where doctors successfully operated. Novak remained in the hospital for two months […]

7 Pages | June 22, 2019
978-1285860381 Chapter 11 Solution Manual Part 1

978-1285860381 Chapter 11 Solution Manual Part 1

Suggested Additional Assignments Research: The Contracts around Us Students should locate and read one or more of the contracts they have entered into in the past year—an apartment lease, a university-housing residency agreement, a mobile phone service agreement, terms of […]

8 Pages | June 22, 2019
Chapter 10 Chaney V Fayette

Chapter 10 Chaney V Fayette

Case: Chelsea Chaney v. Fayette County Public School District1 Facts: Chelsea Chaney was a seventeen-year-old high school student in Fayette County, Georgia. At a county-wide Internet safety seminar, Curtis Cearley, the District’s technology director, presented a PowerPoint slideshow to illustrate […]

7 Pages | June 22, 2019
978-1285860381 Chapter 10 Solution Manual Part 1

978-1285860381 Chapter 10 Solution Manual Part 1

Suggested Additional Assignments Field Work: Cookies and Internet Functionality Have students block their web browsers from accepting cookies and record how it changes their online experience. (Since people usually find that blocking cookies substantially diminishes the quality of their Internet […]

8 Pages | June 22, 2019
978-1285860381 Chapter 9 Solution Manual Part 2

978-1285860381 Chapter 9 Solution Manual Part 2

Case: Truong v. Nguyen1 Facts: On a warm California day, there were about 30 personal watercraft (jet skis) operating on Coyote Lake. The weather was fair and visibility good. Anthony Nguyen and Rachael Truong went for a ride on Anthony’s […]

9 Pages | June 22, 2019
978-1285860381 Chapter 9 Solution Manual Part 1

978-1285860381 Chapter 9 Solution Manual Part 1

Suggested Additional Assignments Field Work: An Accident Waiting to Happen Ask students to find a negligence suit waiting to happen and report their findings during class. They should try to spot some careless maintenance, unsafe condition, or other unreasonable behavior […]

9 Pages | June 22, 2019
978-1285860381 Chapter 8 Solution Manual Part 2

978-1285860381 Chapter 8 Solution Manual Part 2

You Be the Judge: Boeken v Philip Morris Incorporated1 Facts: In the mid-1950s, Richard Boeken began smoking Marlboro cigarettes at the age of 10. Countless advertisements, targeted at boys aged 10 to 18, convinced him and his friends that the […]

7 Pages | June 22, 2019
978-1285860381 Chapter 8 Solution Manual Part 1

978-1285860381 Chapter 8 Solution Manual Part 1

Suggested Additional Assignments Research: Criticism by the Press Ask students to find a newspaper article, editorial, or column that harshly criticizes someone. Has the author or publisher made efforts to avoid a claim of libel? How? Research: On Line Defamation […]

6 Pages | June 22, 2019
978-1285860381 Chapter 7 Solution Manual Part 2

978-1285860381 Chapter 7 Solution Manual Part 2

Crimes That Harm Business (And Their Customers) Businesses must deal with four major crimes: larceny, fraud, arson, and embezzlement. Larceny is the trespassory taking of personal property with the intent to steal. Fraud refers to a variety of crimes, all […]

9 Pages | June 22, 2019
978-1285860381 Chapter 7 Solution Manual Part 1

978-1285860381 Chapter 7 Solution Manual Part 1

Suggested Additional Assignments Research: Corporate Crime Students should find a newspaper or magazine article involving crime committed by a business or corporate executive. What are the economic costs of the (alleged) crime? What penalties can the state impose for the […]

9 Pages | June 22, 2019
978-1285860381 Chapter 6 Solution Manual Part 2

978-1285860381 Chapter 6 Solution Manual Part 2

Trial Adversary System Our system of justice assumes that the best way to bring out the truth is for both sides to “go at” the various witnesses, enabling a neutral factfinder (judge or jury) to detect the truth. A full […]

9 Pages | June 22, 2019
978-1285860381 Chapter 6 Solution Manual Part 1

978-1285860381 Chapter 6 Solution Manual Part 1

Suggested Additional Assignments Research: Class Actions Students should find a current article on a pending class action against a large pharmaceutical, tobacco, automobile, or other company. Students should answer these questions: 1. What is a class action? 2. How long […]

9 Pages | June 22, 2019
978-1285860381 Chapter 5 Solution Manual Part 2

978-1285860381 Chapter 5 Solution Manual Part 2

Case: Texas v. Johnson1 Facts: In 1984, outside the Republican National Convention in Dallas, Gregory Johnson participated in a protest against policies of the Reagan administration. Participants gave speeches and handed out leaflets. Johnson burned an American flag. He was […]

9 Pages | June 22, 2019
978-1285860381 Chapter 5 Solution Manual Part 1

978-1285860381 Chapter 5 Solution Manual Part 1

Suggested Assignments Interview: Civil Rights Students should interview three people to determine their views about two issues: flag burning and boy-girl wrestling. One person should be over 50 years old, one person should have been born and raised in a […]

9 Pages | June 22, 2019