Hanna owned a Honda and sometimes had work done on it at Henry’s Garage. One day she drove up with a flat tire, parked her car beside the garage, and called to Henry that she had a flat tire and would be back in an hour. Henry fixed the tire. Hanna refused to pay, saying that she had intended to make the repair herself. (A) Was there a contract? Explain completely why or why not and how much Hanna would pay. (B) Suppose Henry also adjusted the carburetor and straightened a fender. Could he recover for this? Explain. (Due: Friday, 11 PM. Comment to classmate post is due before 11PM Sunday)
Ron Dexter is engaged in the business of towing and storing vehicles. On February 14, 2008, the police recovered a stolen automobile and had it stored at Dexter’s lot. The legal owner of the car, Outback Insurance Company, learned that the automobile, valued at $11,350, was located at Dexter’s facility on May 8, 2008, but took no action to take possession of the vehicle. On July 12, 2008, Dexter discovered that Outback owned the automobile. On July 15, 2008, Dexter gave written notice to Outback that the car was at his storage facility. He enclosed a bill for storage fees at the rate of $30 a day. Outback refused to pay the fees. On July 10, 2009, Outback sued to take possession of the car. Dexter released the car to Outback on July 17, 2009, but sued Outback to recover $15,510 in storage fees. Is Outback obligated to pay $15,510 to Dexter for the storage of the vehicle? Discuss fully why or why not. What legal theories are at issue? (Post is due before 11 PM Saturday. Comment to classmate post is due before 11PM Sunday.)
BLAW 201-900 Business Law Week 1 Chapter 12 – Review Case Problems
Review Case Problems
1.) Ofler, a physician in a small town, learned that there was a homeless man by the name of Stauffer living in the same town who was suffering from cancer and in dire need of a physician’s services. Ofler called upon Stauffer, who informed him that he had no money and could not afford to pay a doctor, whereupon Ofler said, “Don’t let that bother you. I have a professional interest in your case.” He performed a very intricate operation on Stauffer, treated him for a period of two months, and affected an entire cure. Stauffer later received a large legacy from the estate of a deceased relative. The physician, hearing this, makes a claim upon Stauffer for the value of his services. Can he recover on the basis of: (a) Express contract (b) Implied contract? (c) Quasi contract? Explain treating each part separately.
2.) Peters was the auditor for a building and loan association who, for a flat sum of $24,000 per year, made monthly audits of the association’s account. This sum was credited at the end of each year to the reduction of mortgage debt owed by Peters to the association. Lance was employed as the association’s real estate manager at the annual salary of $58,000. Lance’s duties were to supervise maintenance and repair of properties owned by the association, secure tenants, attend to payments, and advise the directors at their regular meetings of the conditions of the property, what rental was being obtained, whether the rental was adequate, and whether certain properties should be sold. Lance resigned and Peters, on his own initiative, took over all of Lance’s former duties. The directors, although aware of this, never raised the question of who had hired him or how much, if anything, he was to be paid over his regular fee of $24,000 per year for the auditing work. After Peters had performed these managerial duties for one year, he requested the association to credit an additional $58,000 on his mortgage debt. On its refusal he sued the association for $58,000, the amount formerly paid to Lance. How much, if anything, should he recover? Explain.
3.) Blaine Gas Co. discovered that gas was being consumed at 410 Main Street although there was no record of an account or meter at that address. The last account at that address had been closed twelve years earlier. Janet Duffy was living at 410 Main Street. Blaine sued her for the gas consumed at that location. Explain fully whether or not Janet is obligated to pay for the gas usage. What legal theories are at issue?
4.) Juan lost his dog while at the park. Within an hour, Juan had posted notices in the park stating that he would pay $500 to the person who found and returned his dog. After three days had passed, Juan and his family were heartbroken that no one had found their dog, so Juan posted new notices in the park and surrounding streets promising the sum of $1000 as payment for the return of his dog. Aisha found Juan’s dog the day after it had gone missing, but unfortunately the dog did not have any identification tags on its collar. Four days later, Aisha told her friend, Monica, about the dog. Monica informed Aisha that she had seen a notice about a similar lost dog. Aisha contacted Juan and returned the dog to him. Do Juan and Aisha have a contract? Why or why not? How much money is Juan obligated to pay to Aisha?
Week 2: Question 1
Hager met a homeless man, Saul, on a downtown street. Feeling sorry for the man, Hager gave him his address, and said that if he would come to Hager’s home that evening at 8 PM, he would give him $20.00 and a suit of clothing. Later in the day, Hager met with misfortune on the stock market. As a consequence, he experienced a change of heart and refused to live up to his agreement when Saul arrived that evening at 8 PM. Has Hager broken a contract? (Post is due before 11 PM Thursday.)
Week 2: Question 2
Paulson made an offer to Zahira as follows: “I offer to sell you 150 shares of Microsoft. It closed yesterday at $170. If you will buy 10 shares at that price I will give you 20 days to decide whether you want to buy the balance at the same price.” Zahira agreed, and paid Paulson for 10 shares. Three days later the price of Microsoft went up to $195. Zahira decided to buy the other 140 shares, but when he called Paulson’s office, he learned that Paulson had been killed in an automobile accident just a few moments before he called. Two weeks later, Zahira notified Paulson’s executor of his acceptance. The executor claims that the offer to sell the remaining 140 shares was ended by Paulson’s death. Is he correct? Explain.