The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
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Chapter 19, Problem 3BCP
Summary Introduction
Case summary: Person TH, along with his wife, entered into a contract with T, the representative of firm H for the renovation of their house. When a contractual dispute arose, firm H’s name came out to be imaginary. Person TH sued person T for non-disclosure of full information and a breach of contract.
To find: The personal liability of T.
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Liability for Contracts. Thomas Huskin and hiswife entered into a contract to have their home remodeledby House Medic Handyman Service. Todd Hall signed thecontract as an authorized representative of House Medic. Itturned out that House Medic was a ctitious name for HallHauling, Ltd. the contract did not indicate this, however, andHall did not inform the Huskins about Hall Hauling. When acontract dispute later arose, the Huskins sued Todd Hall personally for breach of contract. Can Hall be held personallyliable? Why or why not? [Huskin v. Hall, 2012 WL 553136(Ohio Ct.App. 2012)] (See Liability in Agency Relationships.)
William Schmalz entered into an employment contract with Hardy Salt Company. The contract granted Schmalz six months’ severance pay for involuntary termination but none for voluntary separation or termination for cause. Schmalz was asked to resign from his employment. He was informed that if he did not resign, he would be fired for alleged misconduct. When Schmalz turned in his letter of resignation, he signed a release prohibiting him from suing his former employer as a consequence of his employment. Schmalz consulted an attorney before signing the release and upon signing it received $4,583 (one month’s salary) in consideration. Schmalz now sues his former employer for the severance pay, claiming that he signed the release under duress. Is Schmalz correct in his assertion?
1. Roy asked Mark if he can use his phone for a week. If Roy agreed and allowed Mark to use his phone, what contract is created? Explain
2. Lance borrowed money from Renz. There was no stipulation to pay interest. Has Renz the right to demand interest? Explain
Chapter 19 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
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- Grand Adventures Tour & Travel Publishing Corp. (GATT) provided travel services. Duane Boyd, a former GATT director, incorporated Interline Travel & Tour, Inc. At a public sale, Interline bought GATT’s assets. Interline moved into GATTs office building, hired former GATT employees, and began to serve GATT’s customers. A GATT creditor, Call Center Technologies, Inc., filed an action to collect the unpaid amount on a contract with GATT from Interline. Is Interline liable? Why or why not?arrow_forwardWhich one of the following is a term that is implied by statute? Select one: a. A term required to make the contract between the parties effective b. A term that goods must be of merchantable quality c. Good faith d. A term implied on the basis of past dealings between the partiesarrow_forward“A” and “B” entered into a verbal contract whereby “A” agreed to sell to “B” his only parcel of land for P20,000 and B agreed to buy at the aforementioned price. “B” went to the bank, withdrew the necessary amount, and returned to “A” for the consummation of the contract. “A,” however, had changed his mind and refused to go through with the sale. Is the agreement valid? Will an action by “B” against “A” for specific performance prosper? Reason.arrow_forward
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- In September, Amina hired Bryan as a delivery man. Bryan was to commence work on 1 November. On 1 October, Amina wrote to Bryan telling him that, despite their agreement, economic circumstances were such that she no longer required his services. Can Bryan sue Amina? Explain your answers in light of the principles learned on breach of contract. SOlve it with IRAC methodarrow_forwardBoris signed a contract to work for Foodies Pty Ltd as an auditor. According to the terms of the contract, his compensation was $750 per week with a subsidy of $200 per week for legitimate business expenses. Boris and the company both knew that the amount specified for Boris’ expenses would only be less than $75 per week, but a higher amount was stated to lower the amount of income tax that he will need to pay. Four months after, Boris’ employment was terminated. He initiated action against the company for four weeks’ unpaid wages but not his unpaid subsidy (also four weeks’ worth). Explain, with proper legal reasoning, whether the company is liable to pay the claim? (Maximum 250 words)arrow_forward
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