Legality Problems - A(1)

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Drexel University *

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201

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Law

Date

Feb 20, 2024

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pdf

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2

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Legality & Public Policy 1. Gas Station A and Gas Station B each agree to fix their prices to drive Gas Station C out of business. If Gas Station B later decides to drop his prices below those of Gas Station A by $.10, can Gas Station A sue him for breach of contract? 2. Sutcliffe Construction, which was not licensed as a building contractor in NY, improved Vicky’s NYC apartment for $1 50,000. Vicky paid only $50,000. Sutcliffe sued Vicky in New York and the jury entered a verdict for Sutcliffe for $100,000 after finding the work performed by Sutcliffe totalled the agreed upon price. Vicky argued that the verdict should be set aside because Sutcliffe was unlicensed. Under NYC Code an unlicensed contractor may neither enforce a home improvement contract against an owner nor recover in equity. What is the likely result? 3. Eugene McCarthy left his position as Nike’s D irector of Sales to become Vice President of U.S. footwear sales and merchandising at Reebok. Nike sought to prevent McCarthy from working for Reebok for one year based on a noncompete agreement McCarthy had signed with Nike. The agreement stated in pertinent part: During EMPLOYEE’S employment by NIKE. . . and for one (1) year thereafter, (“the Restriction Period”), EMPLOYEE will not directly or indirectly . . . be employed by, consult for, or be connected in any manner with, any business engaged anywhere in the world in the athletic footwear, athletic apparel or sports equipment and accessories business, or any other business which directly competes with NIKE or any of its subsidiaries or affiliated corporations. McCarthy contends that such the noncompete should not be enforced. What do you think? 4. Eric Menefee signed a contract with Geographic Expeditions, Inc. for an expedition up Mount Kilimanjaro. The contract was 25 pages and on page 20 included a clause requiring arbitration of any claims by clients, limited the recovery of anyone injured on a trip to $5,000, and required clients to pay GeoEx’s legal costs and fees . Eric died while on the expedition and his mother sued GeoEx. GeoEx argues that the case must be arbitrated. Should the court require Menefee to arbitrate? 5. Siddle purchased fireworks from Red Devil Fireworks Co. The sale was illegal, however, because Siddle did not have a license to make the purchase, which Red Devil knew because it had been informed by the attorney general of the state. Siddle did not pay for the fireworks, and Red Devil sued him. He defended on the ground that the contract could not be enforced because it was illegal. Was the defense valid?
6. Brian Neiman was involved in the illegal practice of law for over seven years. Having been found guilty of illegally practicing law, he sought to collect disability benefits under his disability insurance policy with Provident Life due to an alleged bipolar disorder, the onset of which occurred during the pendency of criminal and bar proceedings against him. Neiman contends that his bipolar disorder prevents him from working as a paralegal. Provident contends that Neiman should not be indemnified for the loss of income generated from his illegal practice of law . Can Neiman collect on a policy to compensate him for loss of income derived entirely from an illegal activity? 7. Ethan and Jordan Quick signed a real estate purchase agreement with Slashfrog LLC, an established real estate company, to sell commercial real estate to them in Des Moines for $630,000, with a closing date of June 30. The Quicks sought no legal help and failed to read the contract drafted by the Slashfrog company before executing the document. The agreement provided for retention of the $5,000 down payment as Quicks’ sole remedy to any Slashfrog breach. The trial court found that Slashfrog LLC breached the agreement, but that Quicks’ remedy was limited to the $5,000 deposit. The Qui cks appeal asserting that the court erred in granting summary judgment against its claim of unconscionability and not allowing full damages for the buyer’s breach . Was the contract executed by the Quicks unconscionable? 8. Rob Graves plundered a 3,000-year-old bronze figurine from the tomb of an ancient king. He smuggled it into the US and contacted Ann Teek, a well-known collector of antiquities to see if she was interested in buying the figurine. Ann entered into a contract with Rob to buy the figurine for $50 million and provided a deposit of $10 million cash. Rob, however, never delivered the figurine. Can Ann sue Rob to enforce the contract? Can she sue him for return of the $10 million?
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