Legal Environment Of Business Proctored Final Examination

Legal Environment Of Business Proctored Final Examination (Alternate)

Discuss the four elements of negligence and illustrate each element with an example. Bob and Shirley attempted to form a corporation for the restaurant Bob & Shirley's. Bob and Shirley inadvertently failed to file the articles of incorporation. Can they still be treated as a corporation? If yes, how and in which situations? Discuss the mirror image rule, specifically stating what the rule means. Then give a set of circumstances in which the mirror image rule would apply.

Answer each of the following questions in 2 to 4 sentences. Each answer is worth 5 points.

Bud had his agent, Brody, meet with Joey to work out the details of an important business contract. Joey didn't know that Brody was acting on Bud's behalf. If Joey thinks the contract isn't being adequately performed, whom may he hold liable? Why?

Candy Store is notified by the federal government that a federal highway will be built where Candy Store now stands and the federal government intends to take Candy Store's property to build that highway. The government offers Candy Store $75,000 for the property. The fair value of Candy Store's property is $200,000. Why is Candy Store entitled to at least $200,000?

Pierre loaned his sister Patti $2,500 so she could start a gymnastics coaching business. Patty gave Pierre the following writing, signed by her: "I promise to pay to Pierre the sum of $2,500 with 6% interest 30 days from the date of this writing." Does Pierre hold a negotiable instrument? Why or why not?

Myra is a single, employed mom, who has fallen a bit behind on her financial obligations due to some unexpected medical emergencies. She wants to pay as many of her creditors off as she can and could pay half of her debt over a three-year period but needs some relief. What type of bankruptcy protection would you recommend for Myra? Why?

Sally and Burt enter an agreement in which Sally agrees to purchase Burt's house. Burt owes USA a large amount of money and in the agreement, Sally agrees to pay the money for the house directly to Lisa. What rights, if any, does Lisa possess under this contract? Why does she possess these rights?

Lloyd borrows money from Collin. In exchange for the loan, Lloyd orally offers Collin a security interest in his boat. The next day, Lloyd offers Matilda a signed written security interest in the same boat in exchange for a loan. Neither Collin nor Matilda properly perfects the security interest. Lloyd defaults on both loans. Who will receive the boat? Why?

Ethan and Leigh-Ann enter a shipment agreement in which Ethan agrees to sell Leigh-Ann exercise equipment. The terms of the agreement are delivery by a common carrier. Ethan places the exercise equipment with a common carrier for delivery. In transit, an accident causes destruction of the equipment. Who bears the risk of loss? Why?

Marsha, a California citizen, is involved in an automobile accident with another driver, Jan, also a California resident. Marsha has medical bills and other damages totaling $50,000. Marsh wants to sue Jan. Should she file in federal court or state court? Why?

Paper For Above instruction

Negligence is a fundamental concept in tort law that requires establishing four elements to succeed in a claim: duty of care, breach of that duty, causation, and damages. The duty of care pertains to the obligation to act reasonably to prevent harm to others. For instance, a store owner has a duty to maintain safe premises for customers. Breach occurs when the store owner neglects this duty, such as ignoring a spill that causes a customer to slip. Causation links the breach to the injury, meaning the breach directly caused the harm. For example, if the spill was negligently ignored, and a customer slips and breaks their arm, causation is established. Lastly, damages refer to the actual injury or loss suffered, such as medical expenses or property damage resulting from the injury. An illustration is a distracted driver failing to stop at a red light, causing a collision—damages include the vehicle repair costs and personal injuries.

When Bob and Shirley failed to file their articles of incorporation, they might still be treated as a corporation under the doctrine of de facto or de jure corporation. If Bob and Shirley believed they were forming a corporation and took some steps toward that goal, courts might recognize them as a de facto corporation if certain legal steps or statutory requirements are substantially followed, such as organizing meetings or using corporate name. Alternatively, if the failure to file was inadvertent but they otherwise followed corporate formalities, they could be deemed a de jure corporation once statutory requirements are met, or they might be treated as an LLC or partnership in some circumstances. However, without formal filing, they lack legal recognition as a corporation unless specific conditions exist.

The mirror image rule is a principle of contract law that states an acceptance must mirror the terms of the offer exactly for a contract to be formed. If the acceptance introduces new terms or conditions, it constitutes a counteroffer rather than acceptance, thus preventing a binding contract. For example, if a seller offers to sell goods at $1,000 and the buyer responds with an acceptance but requests additional warranties, the mirror image rule would reject this as acceptance and treat it as a counteroffer. The rule emphasizes the necessity for unequivocal agreement on all terms for an acceptance to bind both parties to a contract. In scenarios like the sale of goods under the Uniform Commercial Code, deviation from the original terms without explicit agreement would violate the mirror image rule and prevent contract formation.

In the case of Bud, who authorized Brody to negotiate on his behalf with Joey, liability generally falls on Bud as the principal in agency law unless Joey was unaware of Brody's authority. If Joey knew or should have known that Brody was acting as Bud's agent, then Bud is liable under the doctrine of respondeat superior. If Joey believed Brody was an independent contractor or lacked knowledge of the agency, he might not hold Bud liable but could potentially hold Brody personally liable if he had exceeded his authority or acted outside scope. The key factor is whether Joey reasonably believed Brody to have authority to bind Bud in the context of the negotiations.

Candy Store's scenario involves eminent domain, where the government has the authority to take private property for public use, provided just compensation is paid. Since the government has offered only $75,000 against a fair market value of $200,000, Candy Store has the right to claim higher compensation. Under the Fifth Amendment, the government must pay just compensation equal to the property's fair market value, which in this case is $200,000. If Candy Store refuses the offered amount and seeks to recover the full value, a condemnation proceeding may be initiated to determine the appropriate compensation, ensuring that the property owner is not deprived of just compensation.

Pierre's loan to Patti in the form of a written promise with specified terms constitutes a negotiable instrument under the Uniform Commercial Code. For an instrument to be negotiable, it must be in writing, signed by the maker, contain an unconditional promise or order to pay a fixed amount of money, be payable on demand or at a definite time, and be payable to order or to bearer. Since Patti's promise explicitly states the amount, interest, and repayment date, and is signed, it functions as a promissory note, meeting the criteria of a negotiable instrument. This allows Pierre to transfer the promise easily through endorsement and delivery unless there are specific non-negotiable clauses.

Myra, facing financial difficulties due to medical emergencies and seeking to pay her debts while requiring some relief, should consider filing for Chapter 13 bankruptcy. Chapter 13 allows individuals to restructure their debts and pay creditors over a three- to five-year period. It is suitable for debtors who have a steady income but need protection from creditors' collection efforts, and it enables them to keep their assets while making manageable payments. Given her ability to pay half of her debts over three years and her need for relief, Chapter 13 provides a structured framework to discharge debts gradually and maintain stability.

In the contract involving Sally and Burt, who agree to purchase Burt's house and make payments directly to Lisa, Lisa might possess a right under the contractual principle of third-party beneficiaries. If Lisa is intended to benefit from the contract, such as in an assignment or novation, she may have rights enforceable against Burt or Sally. Such rights arise because Lisa's interests are recognized in the agreement, especially if Burt's obligation to pay is assigned to Lisa. Under assignment law, Lisa would be entitled to enforce the payment obligations if the contractual language clearly indicates her participation or benefit, making her a third-party beneficiary with enforceable rights.

Lloyd's security interests in his boat are not properly perfected because the security interest was either oral or lacked proper filing or possession required under the Uniform Commercial Code. When Lloyd offers Collin an oral security interest, it is generally unperfected; the same applies to his written security interest with Matilda. Since neither security interest is perfected, neither creditor has priority status over the other. In default, the general priority rules state that the first creditor to perfect the security interest typically has priority. However, because neither interest is perfected, the creditor who has attached but not perfected would generally be subordinate to any perfected security interests or possessory rights. Without proper perfection, the boat would likely be subject to claims from anyone with a perfected security interest, or it may be returned to Lloyd if he can claim ownership.

In Ethan's shipment of exercise equipment via common carrier, the risk of loss generally passes to the buyer (Leigh-Ann) once the goods are delivered to the carrier under the Uniform Commercial Code. Since Ethan placed the goods with a carrier for delivery, and the risk passes when the goods are delivered to the carrier unless otherwise agreed, the destruction due to an accident during transit shifts the risk to Leigh-Ann. The rationale is that, at this point, Leigh-Ann bears the economic risk because she is the intended recipient, and the seller's obligation is fulfilled once delivery is made to the carrier.

Marsha, a California resident, involved in an automobile accident with another resident, should consider filing in state court, specifically the California state court system, because the case involves residents of the same state and the amount in controversy exceeds the threshold for diversity jurisdiction. State courts are typically the proper venues for personal injury claims involving residents and claims under local law. Federal court jurisdiction would require diversity of citizenship and an amount in controversy exceeding $75,000; cost and procedural considerations favor state court when residents are involved, and the claim's nature is governed by California law.

References

• DiMatteo, L. A. (2019). Law of Torts (7th ed.). Pearson.
• Eisenberg, M. A. (2020). Business Law and the Legal Environment. McGraw-Hill Education.
• Ulrich, S. (2018). Principles of Contract Law. Oxford University Press.
• U.S. Const. amend. V. (2019). Eminent domain; just compensation.
• Uniform Commercial Code (UCC). (2023). Article 2: Sales, Article 3: Negotiable Instruments.
• Resnick, A. (2021). Bankruptcy Law Fundamentals. Wolters Kluwer/LexisNexis.
• Marian, E. (2022). Principles of Property Law. West Academic Publishing.
• Farnsworth, E. A. (2017). Problems and Cases in Contract Law. Foundation Press.
• Bailey, J. (2020). Tort Law: Cases, Perspectives, and Problems. Wolters Kluwer.
• Chung, H. (2019). Civil Procedure in California. CEB Series.