1. When are the parties to an illegal agreement in pari delicto?2. John Iwen sued U.S. West Direct because of a negligentlyconstructed yellow pages advertisement. U.S. West Direct moved to staylitigation and com-pel arbitration under the yellow pages order form, whichrequired advertisers to resolve all controversies through arbitration, butallowed U.S. West (the publisher) to pursue judicial remedies to collectamounts due it. Under the arbitration provision, Iwen’s sole remedy was a prorata reduction or refund of the cost of the advertisement. The order formlanguage was drafted by U.S. West Direct on a take-it-or-leave-it basis andstated in part: Any controversy or claim arising out ofor relating to thisAgreement, or breach thereof, other than an action by Publisher for thecollection ofamounts due under this Agreement, shall be settled by final,binding arbitration in accordance with the Commercial Arbitration rules oftheAmerican Arbitration Association.If forced to arbitration, Iwen would be unableto recover damages for the negligently constructed yellow pages ad, nor couldhe recover damages for infliction of emotional distress and punitive damagesrelated to his many efforts to adjust the matter with the company, which wereignored or rejected. Must Iwen have his case resolved through arbitrationrather than a court of law? [Iwen v. U.S. West Direct, 977 P.2d 989 (Mont.)]
3. Sutcliffe Banton, dba Nemard Construction, furnishedlabor and materials (valued at $162,895) for improving Vicky Deafeamkpor’s NewYork City residential property. She paid only $41,718, leaving $121,987unpaid.Banton sued her, and the jury awarded $90,000 in damages. Deafeamkpor moved foran order setting aside the jury’s verdict because Banton was not properlylicensed by New York City. Under NYC Code an unlicensed contractor may neitherenforce a home improvement contract against an owner nor recover in quantummeruit. Thejury heard all the evidence regarding the materials and labor expendedon Deafeamkpor’s residence and concluded that the plaintiff performedsatisfactory work valued at $90,000 for which he was not paid. Should the courtallow the owner to take advantage of Banton and his employees and suppliers?What public policy would support such an outcome? Decide. [Nemard ConstructionCorp. v. Deafeamkpor, 863 N.Y.S.2d 846]
4. Eugene McCarthy left his position as director of salesfor Nike’s Brand Jordan division in June 2003 to become vice president of U.S.footwear sales and merchandising at Reebok, one of Nike’s competitors. Nikesought a preliminary injunction to prevent McCarthy from working for Reebok fora year, invoking a noncompete agreement McCarthy had signed in Oregon in 1997when Nike had promoted him to his earlier position as a regional footwear salesmanager. The agreement stated in pertinent part:During EMPLOYEE’S employment byNIKE . . . and for one (1) year thereafter, (“the Restric-tion Period”),EMPLOYEE will not directly or indirectly . . . be employed by, consult for, orbe con-nected in any manner with, any business engaged anywhere in the world inthe athletic footwear, athletic apparel or sports equipment and accesso-riesbusiness, or any other business which directly competes with NIKE or any ofitssubsidiaries or affiliated corporations. McCarty contends that such a contractis a restraint of trade and should not be enforced. Nike contendsthat theagreement is fair and should be enforced. Decide. [Nike, Inc. v. McCarthy, 379F.3d 576 (9th Cir.)]
5. Ewing was employed by Presto-X-Co., a pest exter-minator.His contract of employment specified that he would not solicit or attempt tosolicit customers of Presto-X for two years after the termination of hisemployment. After working several years, his employment was terminated. Ewingthen sent a letter to customers of Presto-X stating that he no longer workedfor Presto-X and that he was still certified by the state. Ewing set forth hishome address and phone number, which the customers did not previously have. Theletter ended with the statement, “I thank you for your business throughout thepast years.” Presto-X brought an action to enjoin Ewing from sending suchletters. He raised the defense that he was prohibited only from soliciting andthere was nothing in the letters that constituted a seeking of customers.Decide. What ethical values are involved? [Presto-X-Co. v. Ewing, 442 N.W.2d 85(Iowa)]6. Alessia McIntosh is the parent of a minor child whoattends Flint Hill School. The Enrollment Contractwith the school, which she signed online by auto-maticsignature, stated in relevant part: “We (I) agree to pay all attorney’s feesand costs incurred by Flint Hill School in any action arising out of orrelating to this Enrollment Contract.” Ms. McIntosh contends that the contractis unconscionable because she will be obligated to pay the attorney’s fees andcosts of the school regardless of which party is ultimately victorious. Theschool disagrees. Is the contract a contract of adhesion? If so, does that factestablish procedural unconscionability? Is the contract substantivelyunconscionable? [McIntosh v. Flint Hill School, 2018 WL 9393020 (Va.)]
Chapter 161. Kelly made a written contract to sell certain land toBrown and gave Brown a deed to the land. There-after, Kelly sued Brown to getback a 20-foot strip of the land. Kelly claimed that before making the written contract,it was agreed that Kelly would sell all of his land to Brown to make it easierfor Brown to get a building permit, but after that was done, the 20-foot stripwould be reconveyed to Kelly. Was Kelly entitled to the 20-foot strip? Whatethical values are involved? [Brown v. Kelly, 545 So. 2d 518 (Fla. App.)]
2. Martin made an oral contract with Cresheim Garage to workas its manager for two years. Cresheim wrote Martin a letter stating that theoral contract had been made and setting forth all of its terms. Cresheim laterrefused to recognize the contract. Martin sued Cresheim for breach of thecontract and offered Cresheim’s letter in evidence as proof of the contract.Cresheim claimed that the oral contract was not binding because the contract wasnot in writing and the letter referring to the contract was not a contract butonly a letter. Was the contract binding?
3. Lawrence loaned money to Moore, who died without repayingthe loan. Lawrence claimed that when he mentioned the matter to Moore’s widow,she prom-ised to pay the debt. She did not pay it, and Lawrence sued her on herpromise. Does she have any defense? [Moore v. Lawrence, 480 S.W.2d 941 (Ark.)]
4. Jackson signed an agreement to sell 79 acres of land toDevenyns. Jackson owned 80 acres and was apparently intending to keep forhimself the acre on which his home was located. The written agreement alsostated that “Devenyns shall have the option to buy on property ___,” butnothing was stated in the blank space. Devenyns sued to enforce the agree-ment.Was it binding? [In re Jackson’s Estate, 892 P.2d 786 (Wyo.)]
5. Boeing Airplane Co. contracted with Pittsburgh–Des MoinesSteel Co. for the latter to construct asupersonic wind tunnel. R.H. Freitag ManufacturingCo. sold materials to York-Gillespie Co., whichsub-contracted to do part of the work. To persuade Freitag to keep supplyingmaterials on credit, Boeing and the principal contractor both assured Freitagthat he would be paid. When Freitag was not paid by the subcontractor, he suedBoeing and the contractor. They defended on the ground that the assurancesgiven Freitag were not written. Decide. What ethical values are involved? [R.H.Freitag Mfg. Co. v. Boeing Airplane Co., 347 P.2d 1074 (Wash.)]
6. Louise Pulsifer owned a farm that she wanted to sell andran an ad in the local newspaper. After Russell Gillespie agreed to purchasethe farm, Pulsifer wrote him a letter stating that she would not sell it. Hesued her to enforce the contract, and she raised the defense of the statute offrauds. The letter she had signed did not contain any of the terms of the sale.Gillespie, however, claimed that the newspaper ad could be combined with herletter to satisfy the statute of frauds. Was he correct? [Gillespie v.Pulsifer, 655 S.W.2d 123 (Mo.)]
Chapter 171. Give an example of a third-party beneficiary contract.
2. A court order required John Baldassari to make specifiedpayments for the support of his wife and child. His wife needed more money andapplied for Pennsylvania welfare payments. In accordance with the law, sheassigned to Pennsylvania her right to the support payments from her husband.Pennsylvania then increased her payments. Pennsylvania obtained a court orderdirecting John, in accordance with the terms of the assignment from his wife,to make the support-order payments directly to the Pennsylvania Department ofPublic Welfare. John refused to pay on the ground that he had not been notifiedof the assignment or the hearing directing him to make payment to the assignee.Was he correct? [Pennsylvania v. Baldassari, 421 A.2d 306 (Pa. Super.)]
3. Lee contracts to paint Sally’s two-story house for$2,500. Sally realizes that she will not have sufficient money, so shetransfers her rights under this agree-ment to her neighbor Karen, who has athree-story house. Karen notifies Lee that Sally’s contract has been assignedto her and demands that Lee paint Karen’s house for $2,500. Is Lee required todo so?
4. Assume that Lee agrees to the assignment of the house-paintingcontract to Karen as stated in ques-tion 3. Thereafter, Lee fails to performthe contract to paint Karen’s house. Karen sues Sally for damages. Is Sallyliable?
5. Jessie borrows $1,000 from Thomas and agrees to repay themoney in 30 days. Thomas assigns the right to the $1,000 to Douglas Finance Co.Douglas sues Jessie. Jessie argues that she had agreed to pay the money only toThomas and that when she and Thomas had entered into the transaction, there wasno intention to benefit Douglas Finance Co. Are these objections valid?
6. Washington purchased an automobile from Smith-villeMotors. The contract called for payment of the purchase price in installmentsand contained the defense preservation notice required by the Federal TradeCommission regulation. Smithville assigned the contract to Rustic Finance Co.The car was always in need of repairs, and by the time it was half paid for, itwould no longer run. Washington canceled the contract. Meanwhile, Smithvillehad gone out of business. Washington sued Rustic for the amount she had paidSmithville. Rustic refusedto pay on the grounds that it had not been at fault. Decide.
5946864 hours agoI do not need Chapter 17, I need these questions in place of them.Chapter 181. CIT entered into a sale/leaseback contract with Con-dereTire Corporation for 11 tire presses at Condere’s tire plant in Natchez,Mississippi. Condere ceased making payments on these presses owned by CIT, andCondere filed for Chapter 11 bankruptcy. CIT there-after contracted to sell thepresses to Specialty Tires Inc. for $250,000. When the contract was made, CIT,Condere, and Specialty Tire believed that CIT was the owner of the presses andwas entitled to immediate possession. When CIT attempted to gain access to thepresses to have them shipped, Condere changed its position and refused to allowthe equipment to be removed from the plant. When the presses were notdelivered, Specialty sued CIT for damages for nonde-livery of the presses, andCIT asserted the defense of impracticability. Decide. [Specialty Tires, Inc. v.CIT, 82 F. Supp. 2d 434 (W.D. Pa.)]
2. Lymon Mitchell operated a Badcock Home Furnish-ingsdealership, under which as dealer he was paid a commission on sales and Badcockretained title to merchandise on display. Mitchell sold his dealership toanother and to facilitate the sale, Badcock pre-pared a summary of commissionsowed with certain itemized offsets it claimed that Mitchell owed Bad-cock.Mitchell disagreed with the calculations, but he accepted them and signed thetransfer documents, closing the sale on the basis of the terms set forth in thesummary, and was paid accordingly. After pondering the offsets taken by Badcockand verifying the correctness of his position, he brought suit for theadditional funds owed. What defense would you expect Badcock to raise? Howwould you decide the case? Explain fully. [Mitchell v. Badcock Corp., 496S.E.2d 502 (Ga. App.)]
3.American Bank loaned Koplik $50,000 to buy equipment for arestaurant about to be opened by Casual Citchen Corp. The loan was not repaid,and Fast Foods, Inc., bought out the interest of Casual Citchen. As part of thetransaction, Fast Foods agreed to pay the debt owed to American Bank, and theparties agreed to a new schedule of payments to be made by Fast Foods. FastFoods did not make the payments, and American Bank sued Koplik. He contendedthat his obligation to repay $50,000 had been discharged by the execution ofthe agreement providing for the payment of the debt by Fast Foods. Was thisdefense valid? [American Bank & Trust Co. v. Koplik, 451 N.Y.S.2d 426 (A.D.)]
4. Richard Blitz owns a piece of commercial property at 4Old Middle Street. Arthur Subklew entered into a lease with Blitz to rent therear portion of the property. Subklew intended to operate an auto sales andrepair business. Paragraph C of the lease was a zoning contingency clause thatstated, “Landlord [plaintiff] will use Landlord’s best efforts to obtain awritten verification that Tenant can operate [an] Auto Sales and RepairBusiness at the demised premises. If Landlord is unable to obtain suchcom-mitment from the municipality, then this agreement shall be deemed null andvoid and Landlord shall immediately return deposit monies to Tenant.” Thezoning board approved the location only as a general repair business. WhenSubklew refused to occupy the premises, Blitz sued him for breach of contract.Decide. [Blitz v. Subklew, 810 A.2d 841 (Conn. App.)]
5. The Tinchers signed a contract to sell land to Creasy.The contract specified that the sales transaction was to be completed in 90days. At the end of the 90 days, Creasy requested an extension of time. TheTinchers refused to grant an extension and stated that the contract wasterminated. Creasy claimed that the 90-day clause was not binding because thecontract did not state that time was of the essence. Was the contractterminated? [Creasy v. Tincher, 173 S.E.2d 332 (W. Va.)]
6. Christopher Bloom received a medical school scholarshipcreated by the U.S. Department of Health and Human Services to increase thenumber of doctors serving rural areas. In return for this assistance, Bloomagreed to practice four years in a region identified as being underserved bymedical professionals. After some problem with his post graduation assignment,Bloom requested a repayment schedule from the agency. Although no terms wereoffered, Bloom tendered to the agency two checks totaling $15,500 and marked“Final Payment.” Neither check was cashed, and the government sued Bloom for$480,000, the value of the assistance pro-vided. Bloom claimed that bytendering the checks to the agency, his liability had been discharged by anaccord and satisfaction. Decide. [United States v. Bloom, 112 F.3d 200 (7thCir.)]
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