Beryl owns a company that sells boomerangs, and Lucas is a potential customer. Beryl informs Lucas that each boomerang is hand carved, crafted out of rare wood, and thoroughly tested for accuracy and relevance. Although he was considering other boomerang suppliers, Lucas ultimately decides to buy Beryl's boomerang due to the impressive description of its craftsmanship. After completing the transaction, Beryl learns that her friend Yung switched out some of the boomerangs as a prank, and Beryl realizes that she actually sold Lucas a boomerang that was not up to company standards and probably does not even fly correctly. If Lucas sues Beryl for fraud, will Lucas be able to prove its case? No scienter was not present. O No - there was no misrepresentation of a material fact O No - Lucas did not suffer injury. O No-Lucas lacked justifiable relevance on Beryl's promises. O Yes - all five requirements for a finding of fraud are present.
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- Columbia University brought suit against Jacobsen on two notes signed by him and his parents. The notes represented the balance of tuition he owed the University. Jacobsen counterclaimed for money damages due to Columbia’s deceit or fraudulent misrepresentation. Jacobsen argues that Columbia fraudulently misrepresented that it would teach wisdom, truth, character, enlightenment, and similar virtues and qualities. He specifically cites as support the Columbia motto: “in lumine tuo videbimus lumen” (“In your light we shall see light”); the inscription over the college chapel: “Wisdom dwelleth in the heart of him that hath understanding”; and various excerpts from its brochures, catalogues, and a convocation address made by the University’s president. Jacobsen, a senior who was not graduated because of poor scholastic standing, claims that the University’s failure to meet its promises made through these quotations constituted fraudulent misrepresentation or deceit. Decision?Case 5 P Corp, a retailer of women’s fashion accessories, contracted Sandra as their purchasing agent. The agency contract expressly stipulates that Sandra is not allowed to enter into contract in excess of $50,000.00 without first obtaining approval from P Corp. On a number of occasions, Sandra negotiated the purchase of quantities of costume jewellery from Z Inc for prices varying between $30,000 to $45,000.00. Recently, Sandra placed an order with Z Inc for goods at a price of $60,000.00 and without consulting P Corp. Z Inc did not question the order. Two weeks after, Z Inc received payment from P Corp. Sandra was reprimanded by P Corp and, again, reminded of her $50,000.00 limit. Despite the warning, Sandra placed another order of $55,000.00 from Z Inc. This time P Corp refuse to pay and demanded Z Inc to take back the goods. Issues: Is Sandra acting on actual or apparent authority? Is the principal bound by the action of the agent, Sandra? Please state your reasonsBob, an engineer, is a new employee at Airbag Industries, which specializes in manufacturing automotive airbags. Before his employment, Bob is required to sign various documents indicating that he would have access to confidential information related to Airbag Industries' business practices, customer lists, and other information that must remain confidential. It further provided that any new developments created by Bob would be the property of Airbag Industries. Further, it provided that if Bob left the company he could not compete against the company in the United States for 10 years. Bob leaves three years later to set up his own airbag company. What intellectual property issues are involved in this scenario?
- David M. Fox was a distributor of tools manufactured and sold by Matco Tools Corporation (Matco). Cox purchased tools from Matco, using a credit line that he repaid as the tools were sold. The credit line was secured by Cox’s Matco tool inventory. In order to expedite payment on Cox’s line of credit, Matco decided to authorize Cox to deposit any customer checks that were made payable to “Matco Tools” or “Matco” into Cox’s own account. Matco’s controller sent Cox’s bank, Pontiac State Bank (Pontiac), a letter stating that Cox was authorized to make such deposits. Several years later, some Matco tools were stolen from Cox’s inventory. The Travelers Indemnity Company (Travelers), which insured Cox against such a loss, sent Cox a settlement check in the amount of $24,960. The check was made payable to “David M. Cox and Matco Tool Co.” Cox indorsed the check and deposited it in his account at Pontiac. Pon-tiac forwarded the check through the banking system for payment by the drawee bank.…Dorian breeds Scottish Fold kittens and informs Stevie that she is a cat breeder. Stevie says she is interested in purchasing one of her kittens. Dorian calls Stevie a month later and says Stevie’s kitten is ready for pickup and Stevie owes her $1,000. Stevie refuses, stating they did not have a valid contract. Dorian states they did have a valid contract. Who is correct?Jackson is a car purchasing agent for Highway Motors, a used car dealer. Jackson attends wholesale auto auctions and notices that some autos have consistently greater demand and higher prices. Jackson forms a car purchasing partnership with Viva Inc. to buy these cars from "for sale by owner" advertisements and then sell them in Viva's name at the auto auctions where Jackson purchases them for Highway. Discuss if Jackson has violated any duty he owes Highway Motors.
- Time Inc. offers to sell to Unlimited Sales Company one hundred digital watches at $50 a piece, subject to certain specific delivery dates. Unlimited replies with a signed purchase order that reads, “Accept your offer for 100 watches at $50 each. Must be delivered to our warehouse.” Time does not respond or deliver the goods. Unlimited files a suit for breach of contract, to which Time answers that there is no contract because Unlimited’s purchase order contained additional terms and is not signed by Time. A valid contract exists and the additional terms ("must be delivered to our warehouse") becomes part of the contract. A) True B) FalseA man named Bob Smith believes that he is Santa Claus (who delivers presents to all the children around the world on Christmas Eve). In fact, he is not Santa, but he has believed this for many years. He signs his name "Santa." He signs many contracts as "Santa," and he refers to his wife as "Mrs. Claus" even though her name is actually Betty Smith. She puts up with it, because he really does believe he is Santa, and because she loves him and because his wages from his job at Hasbro toys pays the bills. One day he enters a contract with your company to hire you to build him a gigantic workshop in his backyard so he can build his toys and stable his "eight tiny reindeer." In return he will pay you $120,000 for the construction. When his wife learns of this deal, she tries to reject it because it is voidable due to his lack of contractual capacity. Was this contract voidable, or valid and enforceable? Answer the questions.Mark Bradshaw, an agent for National Foundation Life Insurance Co. (NFLIC), tried to sell a health insurance policy to Bobby Reed. Bradshaw told Reed that his health insurance coverage would begin upon signing some forms and paying the first premium. On January 7, Reed signed but did not read the forms, which included language stating that Reed understood that Bradshaw could not change any NFLIC policy or make any policy effective, that the policy would not be effective until actually issued by NFLIC, and that it could take up to two weeks for Reed’s application to be processed and the policy issued. NFLIC received Reed’s application, including his payment for the first premium, on January 12. On January 19, NFLIC called Reed’s home and was informed he had a heart attack on January 15. NFLIC declined to issue the policy to Reed. On what grounds did Reed sue Bradshaw? Was Reed’s suit against Bradshaw successful?
- Ramona Smith spilled orange juice on her computer two days before her term paper was due. Ramona desperately needed a new laptop, so she went online and found a laptop that fit her needs. She emailed the seller, Effie Frost, expressing her desire to purchase the laptop. Effie ernailed Ramona back and said that she (Effie) would sell Effie's laptop to Ramona for $300. An hour later, Ramona and Effie signed the following agreement: "1, Effie Frost, agree to sell my laptop computer to Ramona Smith for Four Hundred Dollars and zero cents. This is the entirety of the agreement. This agreement supersedes any and all other agreements made by the seller and the buyer." Ramona now claims that she should only pay $300 for the laptop because during that initial email exchange with Effie, Effie told Ramona that $300 was the price of the laptop, and she has the email exchange as evidence of the price quote of $300. What legal concept could be used to enforce the contract for $400? O Condition…Betty went to the cinema to watch the premiere of Hulk Mister. She bought the ticket and went into the cinema. As she sat down on the chair, the legs of the chair broke and she fell onto the ground injuring her lower back. It turned out that the chair was previously broken and has not been properly repaired by the staff of the cinema. She was hospitalised for a month and could not work during the time she was in the hospital. Required: Betty wants to start legal proceedings to claim damages from the cinema for the injury. Advise her of the legal grounds on which she can claim compensation from the cinema and discuss, with reference to relevant legal principles and cases, the necessary steps that Betty needs to go through in order to prove her case.Steve was hired to paint the outside of Denise's house for a price of $1500. Steve showed up everyday to paint and the job was completed in about three weeks. He told Denise he would come- to pick up his payment on Thursday. On Wednesday, Denise me py noticed that one of the spots on the back of the house needed to re-done because it looked messy. When Steve asked for payment Denise refused to pay him anything telling him that he did a messy job and he would have to sue her. Steve is entitled to payment under a theory of subjective contracts. Denise will win because Steve breached the contract. Steve is entitled to payment under a theory of substantial performance. Denise will win and not have to pay anything.