BUS221 Theory of Liability and Sale of A Warehouse Business Law Assignment

BUS 221 Spring 2019 Extra Credit Project:

Below please find five (5) essay questions. You may answer only one question, or you may submit answers to all five questions or any lesser number you may choose. Each answerhas a limit of two (2) pages. Each answer should be single spaced with a double space between paragraphs. If you choose to answer more than one question, please include all your responses in one document/file that you will submit to me electronically. You may earn up to 6 bonus points for each question you choose to answer. If you submit a response to all five questions, you may earn up to an additional thirty (30) course points that will be added to the points you have earned on the combination of the applicable examinations plus any bonus points you earn for completing the Course Perception Survey. The point total will be used to determine your final course grade as explained in greater detail in the course syllabus. All information necessary to answer each question can be found in the text book for the course and the Power Point slides used to review the relevant topics in class discussion. It is not necessary for you to cite those portions of these materials that you relied upon in formulating your answer. You do not need to include a bibliography of sources you considered in formulating your answers. I will assume that you relied upon the course materials and your wits in answering the question(s) you choose to answer. To earn a full six points for each answer, be sure you carefully analyze each question and identify all the legal issues raised in each question. Once you have identified each legal issue, ensure that your response addresses any and all the legal issues you have identified. I have also posted a sample question along with a sample answer to that question that you may use as a guide. Do not think that you can dash off a quick one paragraph response to each question and pick up an easy 30 points. I expect a lot because you will have an extended time period to study the questions and to formulate your responses.

If you choose to participate in this project, please submit your extra credit responses to me via e-mail at Richard@lrdawson.com by 5:00 PM, Friday, April 26, 2019. The grades will be posted no later than Friday, May 3, 2019.

Question # 1: Neal, a twelve-year old boy, buys a pair of skis from Outdoor Outfitters (“OO”). He tells the salesperson that he has never been skiing but “he really wants to do it.” The OO salesperson urges Neal to take a lesson in the sport before participating in a run. Neal ignores this advice. On his first run down the intermediate slope he loses control and runs into a tree. He suffers a broken leg, assorted cuts and bruises and he has concussion symptoms. Neal’s parents file a lawsuit against OO alleging that it should not have sold the skis to him when he was clearly too young and inexperienced. Discuss the theory of liability upon which the lawsuit is based and what, if any, defenses OO may raise.

Question # 2:Don is an elderly man who lives with his nephew Evan. Don is dependent upon Evan for care. Evan advises Don to “invest” in Evan’s professional gambling venture. Evan tells Don that he will no longer provide care unless Don makes the investment. Don sells all his stocks and bonds and signs a contract with Evan investing the proceeds of his sale of the stocks and bonds in Evan’s professional gambling venture. Can Don set aside the contract?

Question # 3: Frank Stewart owns Evergreen Landscaping, Inc. Frank has experienced cash flow problems and he has borrowed $5,000 from Friendly Finance Company to keep his business open. He must pay Friendly $500 per month until the debt is repaid. Frank has a small book of business that generates $1,500 per month in income. Frank has been awarded a contract from Tower Apartments to maintain the common areas of the large apartment complex. The contract will pay him $1,000 per month. The contract with Tower contains a provision that prevents either party from assigning the contract to a third party without the consent of the other party.

Friendly is pressing Frank for a payment plan since he has had difficulty making the monthly payments on his loan. When Friendly learns of Frank’s new contract with Tower, it demands that Frank enter into an agreement with Friendly whereby Frank assigns to Friendly the right to receive $500 of the $1,000 monthly payment from Tower until such time as the debt is paid in full. The terms of their agreement are finalized in a written contract. Friendly sends a copy of the agreement to Tower with a notice that Friendly expects to receive the monthly $500 payments beginning on the first of the next month. Friendly can prove that Tower received the notice of assignment.

Frank performs the required work at the Tower complex for one month. He submits an invoice to Tower for payment. Tower ignores the notice from Friendly and sends Frank a check for $1,000.

At the beginning of the second month of the contract with Tower, Frank is injured while he is working on the property of one of his customers and he is not able to work. To keep his business alive until he can work again, he reaches a deal with Sunset Landscaping whereby Frank assigns all his rights under his existing customer contracts, including the contract with Tower, to Sunset. When Sunset learns that it will not be receiving the full $1,000 from Tower, Sunset stops performing any work for any of Frank’s customers. When Sunset stops performing the work at the Tower complex, Tower contracts with Friendly Landscaping Service to perform the work at its apartment complex. Tower sues Frank for breach of contact for failure to perform the landscaping services at its location.

Discuss the following claims:

1. Friendly claims it is entitled to a $500 payment from Tower for the work Evergreen performed during the first month of the contract. Tower claims it does not have to honor the agreement between Frank and Friendly because Tower never consented to the assignment of the payment to Friendly. Is Friendly entitled to the payment. If so why, if not, why not?

2. Tower brings an action against Frank alleging breach of contract. Frank defends on the grounds that he assigned the Tower contract to Sunset Landscaping and Sunset is liable for any breach of the contract. Can Frank assign his rights under the Tower contract to Sunset? If so why, if not, why not? Is Frank liable to Tower for Sunset’s failure to perform the agreement with Tower? If so, why, if not, why not?

Question # 4:In a transaction for the sale of a warehouse, Standard Storage Company, the seller, tells Tri-County Investment Corporation, the buyer, that the office furniture contained in the building is included in the sale. The buyer asks the seller to include a provision in the agreement that the office furniture and the seller agrees to do so. However, the written contract, which both parties sign, does not mention the office furniture. The contract contains a provision that reads as follows: “This document supersedes all oral promises relating to the sale.” Standard removes the office furniture from the warehouse and Tri-County claims a breach of the contract for sale. Is the furniture a part of the sale? Why or why not?

Question # 5:Power Plus Battery Company (“PPBC”) has a production plant located in Tampa, Florida. PPBC manufactures batteries for motor vehicles. PPBC has 200 employees and sells its batteries to customers in twenty-five different states in the United States. The Occupational Safety and Health Administration (“OHSA”) is a federal administrative agency that has the authority to establish safety standards, pursuant to the authority delegated to it by the United States Congress in the Occupational Safety and Health Act. These safety standards, also known as safety rules or regulations, apply to different industrial operations that have at least fifty (50) employees and are engaged in interstate commerce. OSHA proposes a new safety standard governing the handling of certain acids in the workplace. The proposed safety standard includes acids that PPBC uses in its production processes. After reviewing the proposed rule, PPBC concludes that compliance with the proposed rule will substantially increase its production costs and the proposed rule will not significantly increase worker safety. PPBC sends a letter to OSHA stating its objections and concerns to the new rule. Enclosed with the letter are independent research reports and other materials that support PPBC’s objections to the proposed rule. What procedures must OSHA follow when it adopts a new safety standard such as this one? What obligation does OSHA have to consider the objections and the materials submitted by PPBC? What options does OSHA have regarding the proposed rule? How does OSHA announce its final decision on the new rule? Once the new rule has been adopted, what source may interested parties use to find the final version of the new rule?