Refer to the scenario for Multiple Choice questions 24-25 above to answer the following essay question #1 only:
1. Jones sued Windell Hotels, Inc. for negligence to recover damages for his injuries resulting from the fall in the Cabo Mar hotel.
Will Jones likely be successful in the negligence lawsuit against Windell Hotels? Explain fully why or why not.
2. Clarkson and Lee did not have a contract, but Clarkson completed extensive landscaping in Lee’s yard by mistake while Lee was away on vacation. Clarkson sent Lee a bill for the landscaping service but Lee refused to pay.
Determine the likely result if Clark sues Li to recover the costs of the landscaping.
3. Racer contracted in writing to drive Owner’s one-of-a-kind, specially designed championship race car in the Miami 500 Race on July 15 for a fee of $2500. On July 1, the race car was destroyed in an accidental fire in a storage warehouse where the race car was being stored prior to the race. Owner owns no other race cars, so Owner considered the contract discharged. Racer claimed that she is still entitled to the $2500 fee because she and Owner had a valid enforceable contract.
Compare and contrast the rights and obligations of Racer and Owner under the contract as of July 1.
4. Compare and contrast the rights and possible liabilities for a merchant selling goods in “As Is” condition with the rights and possible liabilities for selling goods with an express warranty stating, “This product is quality Grade A”.
5. Aaron plans to open Aaron’s Pet Supplies, a pet supplies outlet, and plans to hire 2 part-time employees. Aaron will invest only his own money in the business. He does not expect to make any profit for at least 2 years and to make very little profit for the next 3 years after the first 2 years. He does expect to make a profit eventually.
Which form of business organization is most appropriate and easiest for Aaron to use in opening his pet store – and why? (there is only one correct answer)
6. There are extensive federal regulations governing airplanes and pilots. Assume that the state of New York passed a statute containing numerous requirements, some conflicting with federal regulations, covering operation of airplanes and licensing of airplane pilots.
If the New York state statue is challenged as being unconstitutional, what is the likely result? Describe the applicable law and rationale for your conclusion.
7. Fran, Joe, and Mike formed a general partnership to operate a flower shop called Fresher Flowers. One of Fran’s jobs is to make deliveries using the partnership truck. In one such delivery, Fran negligently ran a stop sign, striking a car driven by Peggy, causing damage to the car and injury to Peggy.
Analyze and describe (1) the personal liability of Fran, Joe, and Mike, (2) the liability of the partnership, Fresher Flowers.
8. Mark plans to open a barbeque restaurant. He can either open the business as a sole proprietorship or obtain a franchise for “Smokin’ Hot Bar-B-Q”.
Compare and contrast the advantages and disadvantages of opening the business as a sole proprietorship and a franchise.
9. 10 points
Leon, a bank vice president, joined Fitness Center, Inc. (FC). He signed a contract for the membership. The contract stated, among other things, an exculpatory clause that FC…
“shall not be liable for any claim, demand, cause of action of any kind whatsoever for, or on account of death, personal injury, property damage or loss of any kind resulting from or related to Member’s use of facilities or participation in any sport, exercise or activity within the club premises…”
While working out at FC, Leon sustained back injuries when a treadmill on which he was walking suddenly collapsed at FC. Leon sued FC for his injuries.
a. Is the exculpatory clause in the contract valid or invalid in Leon’s case and why?
b. Possible product liability claim(s) for which Leon could sue FC and why product liability claims might be applicable to this case
c. Possible ordinary (non-product liability) negligence claim for which Leon could sue FC and why a negligence claim might be applicable to this case
d. The likely outcome if Leon sues FC under product liability
e. The likely outcome if Leon sues FC under ordinary negligenc