Business Law Homework - Short Answer

Part Two: Short Answer (seven questions—each worth one point) 1. Smith purchased a new product, the Wonderslicer, designed to slice any type of dry food with amazing speed in a variety of settings. In the Wonderslicer owner's manual, it clearly warned that the product should not be used on wet food. The Wonderslicer itself contained an embossed warning to read the owner's manual before using the product. Smith's 12-year old daughter used the product to slice oranges. In the process she received an electrical shock that burned her hand. Analyze and describe the liability(ies) of the Wonderslicer manufacturer, if any, in a strict product liability claim. 2. Compare and contrast the advantages and disadvantages of mediation, non-binding arbitration and court trial litigation. Give an example of a type of dispute for which mediation is appropriate. 3. Bitsy was hired to write courses for EZ LogOn, Inc., a web-based computer training organization. EZ gives Bitsy course content guidelines, a contract for each course she writes, and pays her a flat fee for completion of each course. It takes 2 - 6 weeks to complete one course. EZ wants Bitsy to work at EZ offices during the regular 40-hour work week, unless she needs to be elsewhere to do research. EZ provides a computer, printing and editing services for Bitsy. Examine whether Bitsy is an EZ employee or an independent contractor, and describe why. 4. Fran, Joe, and Mike formed a general partnership to operate a flower shop called Fab Flowers. One of Fran's jobs is to make deliveries using the partnership truck. In one such delivery, Fran negligently ran a stop sign, striking a car driven by Peggy, causing damage to the car and injury to Peggy. Analyze and describe (1) the personal liability of Fran, Joe, and Mike, (2) the liability of the partnership, Fab Flowers. 5. Clark and Li did not have a contract, but Clark completed extensive landscaping in Li's yard by mistake while Li was away on vacation. Clark sent Li a bill for the landscaping service but Li refused to pay. Determine the likely result if Clark sues Li to recover the costs of the landscaping. 6. Don promised to buy his girlfriend, Sophie, a new car. Sophie agreed to accept the car from Don and sold her old car. Don later refused to buy Sophie a car. Sophie sued Don to enforce the promise. Describe the agreement between Don and Sophie and your conclusions about the outcome of Sophie's lawsuit 7. Ahmed, who is not a merchant, made a verbal offer to sell his TV to Sallie for 7. $300. A few hours later, Sallie telephoned Ahmed and left a voicemail message stating, “I accept your offer to buy your TV, and will pay you $275 for it. I will come to your house today to pick it up.” Sallie arrived to pick up the TV and Ahmed refused to sell it to her. How you would categorize and describe the agreement between Ahmed and Sallie? Part Three: Essay (4 questions—worth 3 pts each) 1. Li, a Nevada resident, inherited land in Florida. Through a Florida attorney, Li sold the land to Bo, a Florida resident, under a valid sales contract. Li later refused to go through with the sales deal, so Bo sued Li in a Florida court. Li claimed the Florida court had no jurisdiction over her because she had never been in Florida or had any other contacts with Florida. Assume that the Florida court has subject matter jurisdiction in this case. Examine and describe the type(s) of jurisdiction, if any the Florida court has over both Li and Bo. 2. Maria wants to start a business to manufacture wireless computer accessories in the USA, and to sell the computer accessories in the USA, Mexico and Canada. Maria is unsure whether to form her new business as a sole proprietorship. Compare and contrast the advantages and disadvantages of a sole proprietorship as form for Maria's new business. 3. Mountain View Mall hired Nigel to act as Santa Claus in the mall. After a tough work day, Nigel stopped in a bar in the mall and drank 6 beers. Driving home, still wearing his Santa suit, Nigel hit a Marty, a pedestrian and severely injured her, when Marty darted between 2 parked cars in the middle of a block and ran in front of Nigel's car. Analyze and explain all potential liabilities of Mountain View Mall and Nigel for the pedestrian's injuries. 4. Bob, who is 16 years old, lives with his parents and attends high school. In March, Bob purchased a lawn mower for $1000 from Store A so he could start a summer lawn care business to earn extra spending money. He signed a written contract for the purchase of the mower. In May, Bob started his lawn care business. The mower performed adequately, but Bob was dissatisfied with its speed, and discovered he could have purchased a similar mower for $650 from Store B. In September, Bob discontinued his lawn care business, returned the lawn mower to Store A, and stated he wanted to disaffirm the contract for the full $1000 purchase price. What conclusions can you make about whether Bob can disaffirm the contract and recover the full $1000 purchase price of the mower?