Smith and Roberson’s Business Law
17th Edition
ISBN: 9781337094757
Author: Richard A. Mann, Barry S. Roberts
Publisher: Cengage Learning
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Chapter 6, Problem 5Q
Summary Introduction
To discuss: The crime that has been committed by the truck drivers.
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Bob went out with his friends to celebrate his birthday. They went to a bar where they drank copious quantities of alcohol. In the morning, Bob had not slept and was still obviously intoxicated. He found his way to a car dealership near his house and entered into a contract to buy a Mercedes Benz SUV for the cost of $140,000.00. The car salesman could smell alcohol on Bob's breath, he noticed his eyes were bloodshot and "glossy" while they were signing the papers relating to the sale, and when Bob left he could see that he was unsteady on his feet. Bob left the dealership and went home and went to bed. He slept for two days. The car salesman from the dealership called Bob 4 days later to tell him that his vehicle was ready for pick up. Bob had no memory of the buying any car.
In these circumstances:A. the contract is void ab initio because Bob lacked capacity to contract due to his intoxicationB. Bob can avoid or repudiate the contract within a reasonable time after he regains capacity…
Kate owned a small grocery store. One day John went to the store and purchased a can of chip dip that was, unknown to Kate or John, adulterated. John became seriously ill after eating the dip and sued Kate for damages on the grounds that she breached an implied warranty of merchantability. Is Kate liable? Why?
John Torniero was employed by Micheals Jewelers, Inc. (Micheals). During the course of his employment, Torniero stole pieces of jewelry, including several diamond rings, a sapphire ring, a gold pendant, and several loose diamonds. Over a period of several months, Torniero sold individual pieces of the stolen jewelry to G&W Watch and Jewelry Corporation (G&W). G&W had no knowledge of how Torniero obtained the jewels. Torniero was arrested when Micheals discovered the thefts. After Torniero admitted that he had sold the stolen jewelry to G&W, Micheals attempted to recover it from G&W. G&W claimed title to the jewelry as a good faith purchaser for value. Micheals challenged G&W’s claim to title in court.
Who wins? Explain your reasoning.
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Smith and Roberson’s Business Law
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