Smith and Roberson’s Business Law
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 9, Problem 2Q
Summary Introduction

To discuss: Whether person P prevail.

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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?
The Madariagas owned a restaurant where they served " Albert's Famous Mexican Hot Sauce . " They entered into a contract to sell the restaurant and the formula for the secret sauce to Morris . Although Morris paid the agreed - upon price , the sellers refused to give him the recipe unless he also paid them lifetime royalties for the salsa . Which of these remedies should Morris seek : expectation , restitution , specific performance , or reformation ? Why ?
Adrian rents a bicycle from Barbara. The bicycle rental contract Adrian signed provides that Barbara is not liable for any injury to the renter caused by any defect in the bicycle or the negligence of Barbara. Injured when she is involved in an accident due to Barbara’s improper maintenance of the bicycle, Adrian sues Barbara for her damages. Will Barbara be protected from liability by the provision in their contract? Explain.
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