• Tricia and Troy are starting a pharmacy. After meeting with their attorney and accountant, they decide they want to begin using the simplest form of business organization they can. However, their primary concern is personal liability. They don’t want to jeopardize their personal assets for business obligations. They’ll also need to obtain financing to get the business started. A few investors have expressed some interest, but they’ll invest their money only if they receive some stake in the business or some possibility of return for their investment. The investors want to have no part in running the business and want to be sure they have no liability for business debts. What form of business organization would you recommend? Why? Explain why other forms of business organizations wouldn’t meet their needs.
  • Discuss the mirror-image rule, specifically stating what the rule means. Then give a set of circumstances in which the mirror-image rule would apply
  • Jill and Abraham have a dispute and wish to settle it without litigation. They’re considering mediation or binding arbitration. Discuss and compare the features of these two forms of alternate dispute resolution.
  • Tiny Town passes a law making it a crime to criticize the mayor. Tom objects that the law violates his right to freedom of speech under the U.S. Constitution. Tom sues Tiny Town. Will the court rule that Tom can’t criticize the mayor? Why or why not?
  • Vicky is acting as Kevin’s agent in negotiating an important business deal with Carl. Carl knows that Vicky is acting on Kevin’s behalf and as his agent. Vicky agreed only to the terms Kevin gave her the authority to agree to, and Carl agreed to the terms. Later, Carl became upset that the contract wasn’t being properly upheld. Whom may Carl hold responsible for any breach in the contract? Why?
  • Larry makes lewd comments about Nicole, his employee, that reasonably annoy and disturb Nicole. Nicole complains to Larry and threatens to sue for sexual harassment. Larry tells her she doesn’t have a case because Larry hasn’t asked her for sexual favors or touched her inappropriately. Does Nicole have a case? Why or why not?
  • Attorney Jones uses her position of trust to convince her client Sally to enter into a contract with Jones that’s to Sally’s disadvantage. Sally later realizes what has happened and seeks to get out of the contract. What defense should she make against enforcing the contract?
  • Terrence, an adult, enters into a contract with Bobby, a 16-year-old. Before either party changes position, Bobby’s parents find out and tell Terrence the deal is off. Can Terrence enforce the contract
  • Shannon is 27 years old and has lived in a mental institution since she was 18 years old. Fred visits her one afternoon and tells her that, because she has had such a difficult life, he will give her $10,000. Shannon says she accepts Fred’s offer. Fred doesn’t follow through. Does a contract exist? Why or why not?
  • Jake thinks he has a sexual harassment claim based on federal law against his employer. Jake resides in Texas, and his employer also resides in Texas. Jake’s damages are $60,000. Can Jake sue in federal court? Why or why not?
  • Jason and Kellen go out for a night on the town. After a few drinks, Jason laughingly tells Kellen that if Kellen asks the waitress out, he will pay him $1,000. Jason and Kellen have made these types of bargains several times before, and they’ve never been enforced. Kellen asks the waitress out and asks for the money. Jason declines. If Kellen sues for breach of contract, will he win? Why or why not?
    • 2. Carl has made a will leaving all of his estate to his wife Lulu. Carl and his sister Mary wish to win property together. They’ve been asked whether they should own as tenants in common or as joint tenants. Explain the differences between these two forms of ownership in terms. Which one is best for Carl?


    • 3. Bob writes a check to Zeke for $500.00 for a TV set. Zeke endorses the check over to Sally as a birthday present. Sally deposits the check. Bob discovers that the TV is defective and that Zeke misrepresented the condition of the TV to induce Bob to buy it. Bob stops payment on the check. Will Sally be able to enforce payment of the check? Why or why not? What change in the fact could strengthen Sally’s ability to enforce payment of the check?
    • 1. Lloyd borrows money from Colin. In exchange for the loan, Lloyd orally offers Collin a security interest in his boat. The next day, Lloyd offers Matilda a signed written security interest in the same boat in exchange for a loan. Neither Colin nor Matilda properly perfect the security interest. Lloyd defaults on both loans. Who will receive the boat? Why?
    • 2. Ethan and Leigh-Ann enter a shipment agreement in which Ethan agrees to sell Leigh-Ann exercise equipment. The terms of the agreement are delivery by a common carrier. Ethan places the exercise equipment with a common carrier for delivery. In transit, an accident causes destruction of the equipment. Who bears the risk of loss? Why?


    • 3. Sally told a group of reporters that her ex-boyfriend Al, a local restaurant owner, routinely ignores sanitation procedures in his restaurant kitchen. Sally knows her statement is totally false. Al brings defamation suit against Sally, and she defends by asserting that she can’t be liable unless Al proves actual malice. Is Sally right? Why or Why not?


    • 4. Louis writes a check, on his account with Country Bank, payable to Matt, who bands at Suburb Bank. Suburb Bank uses Middle Band to act as an intermediary bank. Explain the path the check is most likely to take.


    • 5. Joel uses dynamite to blow up beaver dams throughout the county. Unknown to Joel, a young man is camping in an area where Joel blows up a beaver dam, and the young man is severely injured from the blast. On what tort theory other than negligence may Joel be held liable to the young man?


    • 6. Natasha visits Melvin, a bankruptcy attorney , for advice. Natasha tell Melvin she wants a fresh start and wants to walk away from her huge unsecured debt. Further, Natasha told Melvin that she was unemployed with no job prospects. Which type of bankruptcy should Melvin recommend to Natasha? Why?


    • 7. Sherry sells Shannon a car and takes a promissory not as payment in exchange for the car. Sherry then gives the promissory note to her friend, Monica, as a birthday gift. If Shannon asserts defenses to Monica’s collection of the note, will Monica be treated as a holder in due course? Why or Why not?


  • 8. Susan allows Jeremy to travel over her property to get to and from his own property, but he isn’t permitted to harvest any of the corn growing in her field. What type of interest does Jeremy possess? Why?
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