The Legal Environment of Business: Text and Cases
10th Edition
ISBN: 9781337535878
Author: Frank B. Cross; Roger LeRoy Miller
Publisher: Cengage Learning US
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Chapter 17, Problem 7BCP
Summary Introduction
Case summary: Company S LLC. operates an inn H in Arkansas. Company S purchased insurance from company C to cover any future damage. When a gas leaking from a heating element of swimming pool created a havoc in the building, company S filed an insurance claim to C, which it denied and asked federal district court for dispute resolution. Amount in controversy had exceeded
To find: The possibility of the court to exercise jurisdiction of diversity in this case.
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Melodee Lane Lingerie Co. was a tenant in a building where alarm systems were maintained by the ADT company. When the systems were defective and allowed water into the building, it damaged Melodee’s property; Then Melodee decided to sue ADT and their defense was that the service contract limited the liability to 10% of the annual service charge given to the customers. The limitation can be valid since the ADT company did not provide much liability protection. The ADT company can offer another protection plan to Melodee, which would cover her property but at a higher price rate. This case limitation of liability clauses will be enacted since ADT company was not fully liable for Melodee's property, which only would cover the limited 10%. A limitation of liability clauses contract states that one of the parties is not fully liable for damages in case of a breach. The ADT company is at fault for the malfunctions in their systems they should offer a higher…
Subject: Business Law and Regulations
Topic: Nonstock corporation
ABC Foundation engaged in providing feeding programs to homeless children and giving of food packages to victims of calamities using the funds of the foundation for this purpose. Mr. X, who is a member of the foundation is in a quandary as to whether or not the practice of the foundation in using its funds for the mentioned purposes is valid. He is quite fearful that with recent surge in calamities, it might deplete the resources of the foundation, and therefore, affect his own interest having made a contribution therein. He intends to question this practice of the foundation. Is his intention meritorious?
1. Basic Research LLC advertised its products on television networks owned by Rainbow Media Holdings Inc through an ad agency Icebox Advertising Inc. As Basic’s agent Icebox had express authority to buy ads from Rainbow on Basics behalf, but the authority was limited to buying ad with cash in advance. Despite this limit Rainbow sold ads to Basic through Icebox on credit. Basic paid Icebox for the ads, but Icebox did not pass all of the payments on to Rainbow. Icebox filed for bankruptcy. Can Rainbow recoup the unpaid amounts from Basic? Explain.2. Western Fire truck Inc contracted with Emergency One Inc (EO) to be its exclusive dealer in Wyoming and Colorado through Dec. 2003. James Costello, a Western Salesperson, was authorized to order EO vehicles for hi customers. Without informing Western, Costello emailed EO about Westerns diffuclties obtaining cash to fund its operations. He asked about the viability of Westerns contract and his possible employment with EO. On EO’s…
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The Legal Environment of Business: Text and Cases
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