Archives: Solution Manual

Part Four: Sales CONTENTS Chapter 21 Introduction to Sales and Leases Chapter 22 Performance Chapter 23 Transfer of Title and Risk of Loss Chapter 24 Products Liability: Warranties and Strict Liability in Tort Chapter 25 Sales Remedies ETHICS QUESTIONS RAISED […]

ANSWERS TO PROBLEMS 1. Alice was Peter’s traveling salesperson and was authorized to collect accounts. Before the agreed termination of the agency, Peter wrongfully discharged Alice. Peter did not notify anyone of Alice’s termination. Alice then called on Tom, an […]

CASE 20-3 CONNES v. MOLALLA TRANSPORT SYSTEM, INC. Supreme Court of Colorado, 1992 831 P.2d 1316 http://scholar.google.com/scholar_case?case=2485973325983137183&q=831+P.2d+1316&hl=en&as_sclt=2,34 Quinn, J. [Terry Taylor was an employee of Molalla Transport. In hiring Taylor, Molalla followed its standard hiring procedure, which includes a personal […]

Chapter 20 RELATIONSHIP WITH THIRD PARTIES I. Relationship of Principal and Third Persons A. Contract Liability of the Principal 1. Types of Authority a. Actual Express Authority b. Actual Implied Authority c. Apparent Authority 2. Delegation of Authority 3. Effect […]

ANSWERS TO PROBLEMS 1. Parker, the owner of certain unimproved real estate in Chicago, employed Adams, a real estate agent, to sell the property for a price of $250,000 or more and agreed to pay Adams a commission of 6 […]

*** Chapter Outcome *** List and explain the duties owed by an agent to her principal. C. DUTIES OF AGENT TO PRINCIPAL The duties are usually defined in the contract. Other duties are imposed by law, unless the parties agree […]

Part Three: Agency CONTENTS Chapter 19………………………………………………………………….……………..Relationship of Principal and Agent Chapter 20………………………………………………………………………………………..Relationship with Third Parties ETHICS QUESTIONS RAISED IN THIS PART 1. Under what circumstances should a principal (employer) be responsible for the torts committed by an agent (employee)? If […]

ANSWERS TO PROBLEMS 1. Edward, a candy manufacturer, contracted to buy 1,000 barrels of sugar from Marcia. Marcia failed to deliver and Edward was unable to buy any sugar in the market. As a direct consequence he was unable to […]

CASE 18-3 REAL ESTATE ANALYTICS, LLC v. VALLAS Court of Appeal, Fourth District, Division 1, California, 2008 160 Cal.App.4th 463, 72 Cal.Rptr.3d 835, review denied 2008 http://scholar.google.com/scholar_case?case=16761955053572987435&q=72+cal.rptr.3d+835&hl=en&as_sdt=2,34 Haller, J. Real Estate Analytics, LLC (REA) is a limited liability company formed […]

Chapter 18 CONTRACT REMEDIES A. Interests Protected by Contract Remedies B. Monetary Damages 1. Compensatory Damages a. Loss of Value b. Cost Avoided c. Incidental Damages d. Consequential Damages 2. Nominal Damages 3 Reliance Damages 4. Damages for Misrepresentation a. […]

1. A–1 Roofing Co. entered into a written contract with Jaffe to put a new roof on the latter’s residence for $1,800, using a specified type of roofing, and to complete the job without unreasonable delay. A–1 undertook the work […]

Chapter 17 PERFORMANCE, BREACH AND DISCHARGE A. Conditions 1. Express Conditions a. Satisfaction of a Contracting Party b. Satisfaction of a Third Party 2. Implied-in-Fact Conditions 3. Implied-in-Law Conditions 4. Concurrent Conditions 5. Conditions Precedent 6. Conditions Subsequent B. Discharge […]

ANSWERS TO PROBLEMS 1. On December 1, Euphonia, a famous singer, contracted with Boito to sing at Boito’s theater on December 31 for a fee of $45,000 to be paid immediately after the performance. (a) Euphonia, for value received, assigns […]

*** Chapter Outcome *** Identify those situations in which a delegation of duties is not permitted. B. DELEGATION OF DUTIES Delegable Duties Most contract duties may be delegated except when: — the nature of the duties are personal in that […]

Chapter 16 THIRD PARTIES TO CONTRACTS A. Assignment of Rights 1. Law Governing Assignments 2. Requirements of an Assignment a. Revocability of Assignments b. Partial Assignments 3. Rights that Are Assignable 4. Rights that Are Not Assignable a. Assignments That […]

18. Presti claims that he reached an oral agreement with Wilson by telephone in October 2013 to buy a horse for $60,000. Presti asserts that he sent Wilson a bill of sale and a postdated check, which Wilson retained. Presti […]

ANSWERS TO PROBLEMS 1. Rafferty was the principal shareholder in Continental Corporation, and, as a result, he received the lion’s share of Continental Corporation’s dividends. Continental Corporation was anxious to close an important deal for iron ore products to use […]

*** Chapter Outcome *** Identify and describe the other methods of complying with the general contract and the UCC statute of frauds provisions. Sales of Goods The UCC provides that a contract for the sale of goods (movable personal property) […]

Chapter 15 CONTRACTS IN WRITING I. Statute of Frauds A. Contracts Within the Statute of Frauds 1. Electronic Records 2. Suretyship Provision a. Original Promise b. Main Purpose Doctrine c. Promise Made to Debtor 3. Executor-Administrator Provision 4. Marriage Provision […]

ANSWERS TO PROBLEMS 1. Michael, a minor, operates a one-man automobile repair shop. Anderson, having heard of Michael’s good work on other cars, takes her car to Michael’s shop for a thorough engine overhaul. Michael, while overhauling Anderson’s engine, carelessly […]

CASE 14-3 ZELNICK v. ADAMS Supreme Court of Virginia, 2002 263 Va. 601, 561 S.E.2d 711 http://scholar.google.com/scholar_case? case=13963993610436500611&q=561+S.E.2d+711+&hl=en&as_sdt=2,34 Lemons, J. In this appeal, we consider whether a contract for legal services entered into on behalf of a minor is voidable […]

Chapter 14 CONTRACTUAL CAPACITY A. Minors 1. Liability on Contracts a. Dissaffirmance b. Ratification 2. Liability for Necessaries 3. Liability for Misrepresentation of Age 4. Liability for Tort Connected with Contract B. Incompetent Persons 1. Person Under Guardianship 2. Mental […]

ANSWERS TO PROBLEMS 1. Johnson and Wilson were the principal shareholders in Matthew Corporation, located in the city of Jonesville, Wisconsin. This corporation was engaged in the business of manufacturing paper novelties, which were sold over a wide area in […]

CASE 13-3 ANDERSON v. MCOSKAR ENTERPRISES, INC. Court of Appeals of Minnesota, 2006 712 N.W.2d 796 http://scholar.google.com/scholar_case?case=14986343261318628809&q=712+N.W.2d+796&hl=en&as_sdt=2,10 Shumaker, J. Respondent McOskar Enterprises, Inc. owns and operates a fitness and health club in Monticello known as “Curves for Women.” [Plaintiff/] Appellant […]

Chapter 13 ILLEGAL BARGAINS A. Violations of Statutes 1. Licensing Statutes 2. Gambling Statutes 3. Usury Statutes 4. Sunday Statutes B. Violations of Public Policy 1. Common Law Restraint of Trade a. Sale of a Business b. Employment Contracts 2. […]

ANSWERS TO PROBLEMS 1. In consideration of $1800 paid to him by Joyce, Hill gave Joyce a written option to purchase his house for $180,000 on or before April 1. Prior to April 1, Hill verbally agreed to extend the […]

CASE 12-3 NEW ENGLAND ROCK SERVICES, INC. v. EMPIRE PAVING, INC. Appellate Court of Connecticut, 1999 53 Conn App. 771, 731 A.2d 784 cert. denied, 250 Conn. 921, 738 A.2d 658 http://scholar.google.com/scholar_case? case=2815205762460431873&q=731+A.2d+784&hl=en&as_sdt=2,34 Schaller, J. The defendants, Empire Paving, Inc. […]

Chapter 12 CONSIDERATION A. Legal Sufficiency 1. Adequacy 2. Unilateral Contracts 3. Bilateral Contracts 4. Illusory Promises a. Output and Requirement Contracts b. Exclusive Dealing Contracts c. Conditional Promises 5. Preexisting Public Obligation 6. Preexisting Contractual Obligation a. Modification of […]

ANSWERS TO PROBLEMS 1. Anita and Barry were negotiating, and Anita’s attorney prepared a long and carefully drawn contract, which was given to Barry for examination. Five days later and prior to its execution, Barry’s eyes became so infected that […]

*** Chapter Outcome *** Identify the types of fraud and the elements that must be shown to establish the existence of each. C. FRAUD Fraud prevents agreement from being knowingly given. There are two distinct types: fraud in the execution […]

Chapter 11 CONDUCT INVALIDATING ASSENT A. Duress 1. Physical Compulsion 2. Improper Threats B. Undue Influence C. Fraud 1. Fraud in the Execution 2. Fraud in the Inducement a. False Representation b. Fact c. Materiality d. Knowledge of Falsity and […]

ANSWERS TO PROBLEMS Ames, seeking business for his lawn maintenance firm, posted the following notice in the meeting room of the Antlers, a local lodge: “To the members of the Antlers—Special this month. I will resod your lawn for two […]

CASE 10-3 OSPREY L.L.C. v. KELLY–MOORE PAINT CO., INC. Supreme Court of Oklahoma, 1999 1999 OK 50, 984 P.2d 194 http://scholar.google.com/scholar_case?case=15066374301719252497&q=984+P.2d+194&hl=en&as_sdt=2,34 Kauger, J. [In 1977, the defendant, Kelly-Moore Paint Company, entered into a fifteen-year commercial lease with the plaintiff, Osprey, […]

Chapter 10 MUTUAL ASSENT I. Offer 3. Rejection A. Essentials of an Offer 4. Counteroffer 1. Communication 5. Death or Incompetency 2. Intent 6. Destruction of Subject Matter a. Preliminary Negotiations 7. Subsequent Illegality b. Advertisements II. Acceptance of Offer […]

ANSWERS TO PROBLEMS 1. Owen telephones an order to Hillary’s store for certain goods, which Hillary delivers to Owen. Neither party says anything about the price or payment terms. What are the legal obligations of Owen and Hillary? Answer: Implied […]

*** Chapter Outcome *** List the essential elements of a contract. C. REQUIREMENTS OF A CONTRACT 1. Mutual assent — The parties must show by words or conduct that they have agreed to enter into a contract. The usual method […]

Part Two: Contracts CONTENTS Chapter 9 Introduction to Contracts Chapter 10 Mutual Assent Chapter 11 Conduct Invalidating Assent Chapter 12 Consideration Chapter 13 Illegal Bargains Chapter 14 Contractual Capacity Chapter 15 Contracts in Writing Chapter 16 Third Parties to Contracts […]

ANSWERS TO PROBLEMS 1. A statute requiring railroads to fence their tracks is construed as intended solely to prevent animals that stray onto the right of way from being hit by trains. B & A Railroad Co. fails to fence […]

CASE 8-3 PALSGRAF v. LONG ISLAND RAILROAD CO. Court of Appeals of New York, 1928 248 N.Y. 339, 162 N.E. 99 http://www.nycourts.gov/reporter/archives/palsgraf_lirr.htm Cardozo, C. J. Plaintiff was standing on a platform of defendant’s railroad after buying a ticket to go […]

Chapter 8 NEGLIGENCE AND STRICT LIABILITY I. Negligence 1. Scope of Liability (Proximate Cause) A. Breach of Duty of Care 2. Foreseeability 1. Reasonable Person Standard 3. Superseding Cause a. Children C. Harm b. Physical Disability D. Defenses to Negligence […]

ANSWERS TO PROBLEMS 1. The Penguin intentionally hits Batman with his umbrella. Batman, stunned by the blow, falls backwards, knocking Robin down. Robin’s leg is broken in the fall, and he cries out, “Holy broken bat bones! My leg is […]

CASE 7-3 FRANK B. HALL & CO., INC. v. BUCK Court of Appeals of Texas, Fourteenth District, 1984 678 S.W.2d 612, cert. denied, 472 U.S. 1009, 105 S.Ct. 2704, 86 L.Ed.2d 720 (1985) http://scholar.google.com/scholar_case? q=678+S.W.2d+612&hl=en&as_sdt=2,34&case=17495651340574040653&scilh=0 Junell, J. [On June 1, […]

Chapter 7 INTENTIONAL TORTS A. Intent 3. Misuse of Legal Procedure B. Harm to the Person D. Harm to Property 1. Battery 1. Real Property 2. Assault a. Trespass 3. False Imprisonment b. Nuisance 4. Infliction of Emotional Distress 2. […]

ANSWERS TO PROBLEMS 1. Sam said to Carol, “Kim is going to sell me a good used car next Monday and then I’ll deliver it to you in exchange for your computer, but I’d like to have the computer now.” […]

*** Chapter Outcome*** List and define the oenses against business. C. CRIMES AGAINST BUSINESS In the United States, crimes against business property amount to losses in the hundreds of billions of dollars each year. In this section, you will learn […]

Chapter 6 CRIMINAL LAW A. Nature of Crimes 5. Burglary 1. Essential Elements 6. Extortion and Bribery 2. Classification 7. Forgery 3. Vicarious Liability 8 Bad Checks 4. Liability of the Corporation D. Defenses to Crimes B. White-Collar Crime 1. […]

ANSWERS TO PROBLEMS 1. In 1942, Congress passed the Emergency Price Control Act in the interest of national defense and security. The stated purpose of the Act was “to stabilize prices and to prevent speculative, unwarranted and abnormal increases in […]

CASE 5-3 SACKETT v. ENVIRONMENTAL PROTECTION AGENCY Supreme Court of the United States, 2012 566 U.S. ___, 132 S.CT. 1367, 182 L.Ed.2d 367 http://scholar.google.com/scholar_case?q=132+S.CT. +1367&hl=en&as_sdt=2,34&case=13663798285804514473&scilh=0 Scalia, J. [The Clean Water Act (Act) prohibits “the discharge of any pollutant by any […]

Chapter 5 ADMINISTRATIVE LAW A. Operation of Administrative Agencies 1. Judicial Review 1. Rulemaking a. General Requirements a. Legislative Rules b. Questions of Law b. Interpretive Rules c. Questions of Fact c. Procedural Rules 2. Legislative Control 2. Enforcement 3. […]

ANSWERS TO PROBLEMS 1. In May, Patricia Allen left her car on the shoulder of a road in the city of Erehwon after the car stopped running. A member of the Erehwon police dept. came upon the car later that […]