BUS 302L

Sheila owned an old roadside building that she believed could be easily converted into an antique shop. She talked to her friend Barbara, an antique fancier, and they executed the following written agreement: a. Sheila would supply the building, all utilities, and $100,000 capital for purchasing antiques. b. Barbara would supply $30,000 for purchasing antiques, Sheila would repay her when the business terminated. c. Barbara would manage the shop, make all purchases, and receive a salary of $500 per week plus 5 percent of the gross receipts. d. Fifty percent of the net profits would go into the purchase of new stock. The balance of the net profits would go to Sheila. e. The business would operate under the name “Roadside Antiques.” Business went poorly, and after one year, a debt of $40,000 is owed to Old Fashioned, Inc., the principal supplier of antiques purchased by Barbara in the name of Roadside Antiques. Old Fashioned sues Roadside Antiques, and Sheila and Barbara as partners.…

Dennis and Donna Smith owned a 10-acre tract of land that they decided to sell.  The couple entered into a listing agreement with Kelly McLaughlin, a licensed real estate broker.  The agreement gave Kelly the exclusive right to sell the property for a period of 6 months.  The Smiths agreed to pay Kelly a 6% commission of the selling price if a buyer was found during the listing period.   Four months later, the Smiths sent Kelly a letter terminating the listing agreement.  Kelly did not approve of the conditions.  One month later, Kelly presented a full price offer to the Smiths; however, they ignored the offer and sold the property to another buyer.  Kelly sued the Smiths for breach of the agency agreement.  Which party wins the lawsuit? Did the Smiths act ethically in this case?

Eric and Susan just purchased their first home, which cost $140,000. They purchased a homeowner’s policy to insure the home for $130,000 and personal property for $80,000. They declined any coverage for additional living expenses. The deductible for the policy is $500. Soon after Eric and Susan moved into their new home, a strong windstorm caused damage to their roof. They reported the roof damage to be $19,500. While the roof was under repair, the couple had to live in a nearby hotel for three days. The hotel bill amounted to $420. Assuming the insurance company settles claims using the replacement value method, what amount will the insurance company pay for the damages to the roof?

1. Dr. Webber joined the Gelder Medical Group, which was a medical partnership. Part of the agreement was that if for any reason his association with the group ended, he would not practice medicine for five years within 30 miles of the Village of Sidney, where the partnership was located. The agreement also provided that any member could be required to withdraw from the partnership upon a majority vote of the other members. Dr. Webber’s work with the group turned out to be unsatisfactory to his partners, who felt he was an embarrassment to the group. Dr. Webber refused to withdraw from the association after he was terminated by the other physicians. Two months later, despite his earlier agreement, Dr. Webber opened a medical office in Sidney. The partnership brought suit to prevent him from carrying on his practice. Could they do this successfully?
 2. Brackenridge Hospital admitted Plaintiff to its intensive care unit following a serious car accident. Medical resident Dr. Villafani…

1.     Dr. Webber joined the Gelder Medical Group, which was a medical partnership. Part of the agreement was that if for any reason his association with the group ended, he would not practice medicine for five years within 30 miles of the Village of Sidney, where the partnership was located. The agreement also provided that any member could be required to withdraw from the partnership upon a majority vote of the other members. Dr. Webber’s work with the group turned out to be unsatisfactory to his partners, who felt he was an embarrassment to the group. Dr. Webber refused to withdraw from the association after he was terminated by the other physicians. Two months later, despite his earlier agreement, Dr. Webber opened a medical office in Sidney. The partnership brought suit to prevent him from carrying on his practice. Could they do this successfully?

Bakar is a renowned pastry Mama Cafe, a sole proprietorship, is a well-known restaurant in need of hiring a pastry chef. Bakar and Cafe’s Owner had extensive conversations regarding Bakar coming to work at Cafe. On May 1, a week after those conversations occurred, Bakar sent Cafe a signed letter dated May 1 stating, “I will work for Cafe as a head pastry chef for two years for an annual salary of RM50,000.” On the morning of May 7, Cafe’s Owner telephoned Bakar and said, “The RM50,000 is pretty stiff. Could you possibly consider working for less”? Bakar replied: “I am a renowned pastry chef. I will not work for any less.” Later that morning, Cafe’s Owner sent Bakar a signed letter by regular mail stating: “You obviously think you are too good for my restaurant. I am no longer interested in hiring you to work at Cafe.” Later that afternoon, Cafe’s Owner had a change of heart and sent Bakar a registered, express-mail signed letter stating: “Okay, if you really won’t work for less, I…

Bakar is a renowned pastry Mama Cafe, a sole proprietorship, is a well-known restaurant in need of hiring a pastry chef. Bakar and Cafe’s Owner had extensive conversations regarding Bakar coming to work at Cafe. On May 1, a week after those conversations occurred, Bakar sent Cafe a signed letter dated May 1 stating, “I will work for Cafe as a head pastry chef for two years for an annual salary of RM50,000.” On the morning of May 7, Cafe’s Owner telephoned Bakar and said, “The RM50,000 is pretty stiff. Could you possibly consider working for less”? Bakar replied: “I am a renowned pastry chef. I will not work for any less.” Later that morning, Cafe’s Owner sent Bakar a signed letter by regular mail stating: “You obviously think you are too good for my restaurant. I am no longer interested in hiring you to work at Cafe.” Later that afternoon, Cafe’s Owner had a change of heart and sent Bakar a registered, express-mail signed letter stating: “Okay, if you really won’t work for less, I…

Bakar is a renowned pastry Mama Cafe, a sole proprietorship, is a well-known restaurant in need of hiring a pastry chef. Bakar and Cafe’s Owner had extensive conversations regarding Bakar coming to work at Cafe. On May 1, a week after those conversations occurred, Bakar sent Cafe a signed letter dated May 1 stating, “I will work for Cafe as a head pastry chef for two years for an annual salary of RM50,000.” On the morning of May 7, Cafe’s Owner telephoned Bakar and said, “The RM50,000 is pretty stiff. Could you possibly consider working for less”? Bakar replied: “I am a renowned pastry chef. I will not work for any less.” Later that morning, Cafe’s Owner sent Bakar a signed letter by regular mail stating: “You obviously think you are too good for my restaurant. I am no longer interested in hiring you to work at Cafe.” Later that afternoon, Cafe’s Owner had a change of heart and sent Bakar a registered, express-mail signed letter stating: “Okay, if you really won’t work for less, I…

Carina Cooks has been employed by Realfood Restaurant Group (RRG) for around 3 years. Cooks was first hired as a line cook. After seeing Cooks’ potential, Cooks was quickly promoted to Sous Chef. At the time of the promotion, Cooks signed a document that stated: AGREEMENT NOT TO COMPETE: In consideration of continued employment at RRG, I agree that, in the event of termination, I will not engage in any business as an owner, employee, or stockholder with any company that competes, directly, or indirectly with RRG, for ten years. Last year, Cooks was asked to head a special project to design the menu for a new RRG concept restaurant – the Fast But Fancy Fried Food Emporium. The restaurant was to sell deep-fried food in a fine dining atmosphere with fine dining pricing. For her role, Cooks was promised a bonus of 3% of the restaurant’s profits over the first year of operation in addition to her salary as the Head Chef of the restaurant. Cooks was skeptical of such a restaurant’s…

37- John and Tara Smith are married and have lived in the same home for over 20 years. John’s Uncle Tim, who is 64 years old, has lived with the Smiths since March of this year. Tim is searching for employment but has been unable to find any- his gross income for the year is $2,000. Tim used all $2,000 toward his own support. The Smiths provided the rest of Tim’s support by providing him with lodging valued at $5,000 and food valued at $2,000. Are the Smiths able to claim Tim as a dependent? Assume the original facts except that Tim earned $10,000 and used all the funds for his own support. Are the Smiths able to claim Tim as a dependent? Assume the original facts except that Tim is a friend of the family and not John’s Uncle and Tim lived with the Smiths for the entire year.

5 Matthew and Joe were roommates. When they were renting their apartment, each agreed to pay half of the cost of the rent and the cable and electric bills. Two months after moving in, Matthew borrowed Joe's car and was involved in an accident. Matthew promised to pay $2,200 in damages if Joe promised not to file a claim with his insurance company. Joe agreed. However, Matthew never paid him for the damages. He claimed that the agreement was not enforceable because there was no consideration. What is the outcome?

Arif is 75 years old and managed to accumulate an estate of more than $2 million, including a house valued at $700,000 and investment assets worth $1.3 million. Arif's wife died 2 years ago. His two children and Arif's new girlfriend believe they will inherit the estate assets. When Arif was in the hospital, he spoke his last words by giving instructions as to how to distribute his estate. Unfortunately, Arif did not have a valid Will at his death. Which of the following statements is true? 1. The estate assets will be distributed according to the intestacy provisions of the province in which Arif lived. II. Arif did not die intestate. III. Arif's last words in the hospital can be considered as a letter of last instruction. IV. Arif's estate will be distributed based on preferential share. Select one: O a. I, II, and IV O b. I, III, and IV O c. I and II

On May 1, Melforth Realty Company offered to sell Greenacre to Dallas, Inc., for $1 million. The offer was made by a letter sent by overnight delivery and stated that the offer would expire on May 15. Dallas decided to purchase the property and sent a letter by registered first-class mail to Melforth on May 10, accepting the offer. Due to unexplained delays in the postal service, Melforth did not receive the letter until May 22. Melforth wishes to sell Greenacre to another buyer, who is offering $1.2 million for the tract of land. Has a contract resulted between Melforth and Dallas?

Client Claire explicitly instructed Agent Jamie not to present her with any offers for her home that came in lower than $150,000. In the days after that conversation, three offers were made: one for $152,000, one for $160,000, and one for $145,000. Which of these offers should Agent Jamie present to Client Claire? only the $160,000 offer the $145,000 offer and the $152,000 offer the $152,000 offer and the $160,000 offer All of then

Alex and Ann enter a contract for Ann to cook a gourmet meal for Alex and Alex to pay Ann $50. Alex shows up at Ann's house with $50 and hands it to Ann. Ann refuses to accept the money. What has Alex done? Discharged his duties under the contract. Not yet performed his duties under the contract Substantially performed his duties. Breached the contract

. Spouses Robert and Yollie wanted to sell their house. They found a prospective buyer, Nina, Yollie negotiated with Nina for the sale of the property, They agreed on a fair price of million. Nina sent Yollie a letter confirming her intention to buy the property. Later,another couple, Marius and Ellen, offered a similar house at a lower price of 1.million. But Nina insisted on buying the house of Robert and Yollie for sentimental reasons. Nina prepared a deed of sale to be signed by the couple and a managers check for million. After receiving the million. Robert signed the deed of sale. However, Yollie was not able to sign it because she was saying she changed her mind. Yollie filled suit for nullification of the deed of sale and for moral and exemplary damages against Nina Does Nina have any cause of action against Robert and Yollie?

Skip and Jack are the shareholders of the Blue Fish Event Corporation. Skip and Jack regularly put on classy events on or near the beach, so they have a special insurance policy to protect their assets. Business has been slow as fewer large beach weddings are taking place, so Skip and Jack use a large fan to blow down and damage most of their décor assets, some of which were personal assets of Skip and Jack, to collect the insurance benefits. (a) Assuming their acts are proven, will a court allow Skip and Jack to recover the insurance money? (b) Is this a situation where the corporate veil may be pierced? Why or why not? (c) What would it mean for Skip and Jack if the corporate veil is pierced in this situation?

Brandt Crossing Investments, Inc., was a family-owned property investment organization, investing in undeveloped properties when prices were low and then selling them when prices went up. Among its holdings, Brandt Crossing owned fifty acres of undeveloped land next to another fifty acres of undeveloped land owned by Khloe Hadid. Carter Rios, property manager for Brandt Crossing, approached Hadid and offered to purchase her fifty acres “for Brandt.” Hadid sold the property for $50,000. Within one year, Brandt Crossing sold its 100 acres, including the property bought from Hadid, to a developer for $1,000,000. Richard Brandt, a 5% owner of Brandt Crossing Investments and an old high school acquaintance of Hadid, saw her at the mall and told her of the recent sale. Furious that she had lost out on the income and convinced that Rios had misled her, Hadid sued Richard Brandt for the acts of his agent, Rios. Hadid argued that the facts were sufficient to create an agency by estoppel…

In early 2020, James, Inc. announced its intention to construct a manufacturing facility in the Shenandoah Valley. To persuade James, Inc. to locate the facility in Burton County, the county government contributed a six-acre tract of undeveloped county land to the corporation. The appraised FMV of the land at the date of the contribution was $280,000. Soon after accepting the contribution, James, Inc. paid $3,300 to an attorney to do a title search to make sure that it had uncontested ownership of the land. James also paid $12,900 for a survey and site map of the six acres and $1,360 for two water wells drilled on the land. Did James recognize income because of the receipt of the land? What is the proper tax treatment of James’ $17,560 expenditure with respect to the land? In 2021, James’s attorney discovered that the estate of Elsa Reynolds claimed title to the six acres and was preparing to file suit in Virginia state court to regain ownership and possession. The attorney advised…

(a) X offered to lease a certain building to Y. Within the period of the option given to him, Y finally accepted the offer. A few hours after mailing the letter of acceptance, he changes his mind. May he revoke his acceptance by means of a telegram. (b) When the offeror has not fixed a period for the offeree to accept the offer is made, when should acceptance be made?

Tom, a minor sold a parcel of land to jason in the amount of 1,000,000.00 1. What is the status of the contract and why?

Karen's elderly Uncle Joe gave her written authority to sell the family house. Uncle Joe lived in Maine and Karen lived in Minnesota. After about two months Karen found a buyer for the house and signed an acceptance of the offer on July 21. Later that same day she learned that Uncle Joe had died the day before (July 20). Other members of the family did not want the family house sold and claimed that t acceptance Karen signed was void because Uncle Joe had died prior to acceptance. The buyer of the house claims Karen had the legal authority to sell the house and that the contract is binding. Who is right? Please explain.

Chad Parker owned an acre of property and a mobile home on that property. He sold the mobile home to David and Allison Wilson for $1,000 and sold the property to them for $10,000. These agreements were made orally. No title or deed transfers took place. The Wilsons lived in the mobile home for seven years, making $11,228.19 of improvements to the structure and to the property. After a falling out between Chad and David, Chad had the Wilsons evicted and moved back into the mobile home. Because there was no written contract between the parties, could Chad therefore legally evict the Wilsons and legally move back into the mobile home?

Cody offered to sell certain land to Daniel for $50,000 by a letter, which was signed by Cody. The letter specified that the deal was to be closed by Nov. 1, 2018, and that the entire payment was to be in cash. Daniel sent a letter saying that he accepted the offer, but his letter also stated that payment was to be made one-half at closing and one-half 30 days later. As of March 2019, Cody had not responded. Discuss in detail whether there is a valid contract between Cody and Daniel.

Set out & explain any five exclusive clauses found in a contract of sale of business.

John and Jane are partners who purchase and renovate houses.  Five years ago, they purchased a house in Portsmouth, New Hampshire with all of their available cash.  Having no money to make repairs they asked a contractor Jim to agree to do repairs on the house for a third of the profit when the house sold.  The contractor repaired the house within a year. Jim has worked with John and Jane previously there was no written agreement.  Once the house was repaired John and Jane rented the house.  Recently without telling Jim, John and Jane entered into a purchase and sales agreement with their tenant for a $200,000 profit.  Jim found out about the proposed sale and has filed a lawsuit against John and Jane for his share of the sale profits and rental proceeds.  Jim also requested and received from the Court a pre-judgment attachment which prevents the sale of the house until the lawsuit is resolved. Due to the increased value of the real estate the Tenants are now suing John and Jane asking…

Jensen purchased a six-room house for himself and his daughter. Jensen wishes to have a deed that states that, in case of the death of either of them, the other is to own the house. What form of ownership should Jensen choose?

VIOLETS Company purchased 5,000 shares of POPPY Company par ₱100 at ₱120 in March 2020 VIOLETS received a share dividend of 1 share for every 5 owned on August 30, 2020. On September 15, 2020, the firm received a cash dividend of ₱10 per share. On October 1, 2020, VIOLETS was granted the right to purchase 1 share at ₱105 for every 4 rights held. The share had a market value of ₱115 and the right had a value of ₱5 on the date the rights were received. On December 15, 2020, the company sold 2,000 rights at ₱7.50 and exercised the remaining rights. What is the average unit cost of the total investment as of December 31, 2020?

On January 1, 2021, Crane, Inc. signs a 10-year noncancelable lease agreement to lease a storage building from Holt Warehouse Company. Collectibility of lease payments is reasonably predictable and no important uncertainties surround the amount of costs yet to be incurred by the lessor. The following information pertains to this lease agreement.(a) The agreement requires equal rental payments at the beginning each year.(b) The fair value of the building on January 1, 2021 is $6550000; however, the book value to Holt is $5500000.(c) The building has an estimated economic life of 10 years, with no residual value. Crane depreciates similar buildings using the straight-line method.(d) At the termination of the lease, the title to the building will be transferred to the lessee.(e) Crane’s incremental borrowing rate is 11% per year. Holt Warehouse Co. set the annual rental to insure a 10% rate of return. The implicit rate of the lessor is known by Crane, Inc.(f) The yearly rental payment…