PART 1 INSTRUCTIONS: You are an attorney working for a large law firm. Anthony, Paul and Silvio retain you to represent them. With the material that you studied in the Chapters, prepare an essay explaining the issues presented. Be sure to explain the Courts (Federal or State) to which the matters could be brought and why, and the various legal issues that you studied with respect to the fact pattern, and jurisdiction for each. Take each set of facts in each paragraph, and explain the law as it applies to the facts. WRITE IN A PARAGRAPH FORM FOR EACH.

Anthony , a New Jersey resident, and owner of a waste disposal company in New Jersey decided to expand his business to the five boroughs of New York City. On a particular Sunday afternoon Anthony and some of his employees drove in the company SUV across the George Washington Bridge and headed to a meeting in the Queens with a local Queens based waste disposal company in order to enter into a joint venture for the collection of commercial waste. The SUV was traveling at approximately 30 miles per hour on the side streets of the Queens as it beaded to the meeting. Tony was driving the car and had his employees, Paul and Silvio (all New Jersey residents) sitting in the back seat of the vehicle.

As Tony left the Long Island Expressway at the Utopia Parkway ramp he stopped at a traffic light. A truck traveling from behind was apparently traveling over the speed limit and was unable to stop in time. Tony's SUV was "rear-ended” by the truck. The truck was owned by the a local fireworks company , a New York domestic corporation and contained fireworks for the upcoming 4th of July display in the East River. Paul and Silvio sustained injuries as a result of the car crash. They were immediately hospitalized . The SUV was "totaled" and could not be repaired due to the extensive damage . The damage to the SUV (a specially designed Porsche) was $85,000. The cost of the hospitalization to Paul and Silvio was $15,000 to each respectively.

Anthony was able to keep his business appointment, despite the fact that his entourage was hospitalized. Driving the business meeting, Anthony was angered that the Queens Company was not interested in the terms of the contract. He held a gun to the head of the Queens Company Vice President and , as a result, they agreed to enter into a joint venture agreement His agreement with the Queens based company was as follows: The Queens Company could use his trucks to for waste removal . They would pay him a monthly rental for the use of his trucks . The Vice President then brought the agreement to the President of the Queens Company President for signature . The President was awoken from sleep and was presented with the agreement and was told he was signing a contract with a local vendor for truck parts . He signed the agreement without reading it as he was still groggy from being awoken .

Two weeks later, Paul, who owned an appliance store, paid for an advertisement in the local Dollarsaver newspaper. The advertisement stated that the first person who entered the stort at 9:00 A.M. on Tuesday October 16, and who purchased a 19" plasmas television set, would receive a free outdoor barbeque set. Jim entered the store at 9:00 AM on the 16th, purchased the 19" plasma TV and was advised that the appliance store had no barbeque sets in stock. The same day Paul signed an agreement with Sony to purchase all of the 19" plasma TVs that Sony produces . Two weeks later, when the first shipment arrived , Paul rejects the shipment on the basis that there was no contract because the quantity was "too vague ."

Three weeks later, Silvio decided to sell his home. He met with the potential buyers and advised them that the zoning for the house permitted the house to be used as a two-family dwelling and that the property size was sufficient for the town to permit the construction of an in-ground pool. The real estate broker representing Silvo concurred. The broker was Silvio's nephew. The purchasers, who wanted to convert the house to a two family dwelling in order to move their parents in, signed the agreement and relied upon the broker and Silvio's representation. Weeks later they met with the local Building Department for the town and were told that the zoning laws for the town only permitted one family dwelling for their newly purchased house.


Stein & his son owned a television appliance store. However they were having severe financial difficulties and decided to borrow money in order to increase their working capital for the company. Stein, was having difficulty borrowing money from conventional lenders due to poor Dunn & Bradstreet rating and his poor personal credit rating. He was introduced by a friend to a company which provided loans to companies in need of capital. Stein signed on behalf of the corporation and the interest rate for the loan was 26% annually . In addition he signed for a personal loan of 17 %.

A few months later, despite this influx of capital, Stein realized that the business was failing. He was forced to sell to a national appliance chain, GP Pritchard. Pritchard's attorney prepared a sale contract which included a provision prohibiting Stein from operating an appliance store within 10 miles of the current store location and for a time period of 10 years. Stein reluctantly signed the agreement due to his financial inabilities . Pritchard opened a new appliance store and made it employees sign an employment agreement which prohibited its employees from working for Pritchard's competitors for no less than 10 years after they left Pritchard's employ .

Stein in the meantime opened a new business, a health spa. Members signed contracts which relieved Stein from any liability for negligence for any reason whatsoever. Jim, a new member, slipped near the spa pool which contained puddies of water .

In the meantime, Pritchard's business was booming. However, Prictchard's attomey suggested that Pritchard could further increase its business by providing installment sales agreements for its customers. The terms of the installment contract included a provision such that if the customer defaulted in the payment of any installment , the company could repossess any appliances bought, at any time from Pritchard.

Prtichard's business expanded. In addition to appliances the business now sold household goods, clothing and food. One day Theodore Cleaver, a 15 year old, entered the store. He appeared old than his age but no one questioned him. He bought a flat screen TV , sneakers, and groceries such as milk and eggs. A day later he appeared at the store to return all of the items and he demanded his money back.

Theodore's grandmother June had been declared an incapacitated person by the NYS courts. Theodore, who lived with his grandmother and mother (who was the court appointed guardian for his grandmother), wanted to have cable TV installed in their home. His mother refused . One aftemoon, he called the cable company and had his grandmother sign a contract to install cable TV . His mother came and was furious . She called the cable company to remove the cable system . The company refused .

Stein's son is having financial problems and goes to a local bank. The bank wants a guaranty from Stein for his son's debts. Stein calls the banker by phone and advises the banker that he will “make good" on the loan if his son defaults. The banker has the son fill out the forms and he sends a form to Stein to sign. Stein leaves for Europe and advises the banker that he will sign when returns from Europe . The son is given the loan. Stein returns from Europe but never signs the guaranty. The son defaults on the loan.

Stein's son meets the girl of his dreams. He agrees to marry the girl. The girl's father agrees to give him a new Jaguar auto if he does marry the girl. He marries the girl and the father-in law refuse to give him the car and states that he was merely joking when he stated that. Stein's son hires a lawyer to sue his father in law. He also asks the lawyer to prepare divorce papers for his new bride.

Pritchard decides to buy the land next to its current store. Prichard's executives enter into a contract after about 6 months of negotiation. The written contract has a clause which declares that the written contract is the final and complete understanding between the parties. During the oral negotiations, Pritchard was told by the seller that the seller would remove a shed in the rear. However, the written contract did not state this fact and the seller refused to remove the shed.

Pritchard commenced a new advertising campaign. It hired famous jingle writer composer and singer Harry Banilow to create and record a theme song for some TV commercials. After signing the contract Banilow, leaves for Asia on a concert tour. He calls his friend, Bob, who is a studio musician to compose and record the music for his contract with Pritchard. Bob agrees. Pritchard is furiuous.

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