Answer these 14 questions in detail using proper business law vocabulary.
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- I just got drafted into the NFL by the Cleveland Browns. The club is a little skeptical about my on field behavior. As such, there is a clause in my contract that states that if I am ever arrested or photographed drunk in public, my contract is void. Using chapter 18 vocabulary, what do we call this limitation? (4)
- I hire some house keepers to clean my house while I am gone and pay them $120. I arrive home to see that they failed to dust the ceiling fans and missed some spots with the toilet scrubber. Was this a material breach of our contract? If not, what was it? Explain. (5)
- Let’s say we contracted to build the house for $200,000. Two weeks after we signed the papers, a hurricane devastated the gulf region, increasing material costs by 50% due to short supply. What is the builder’s best argument for not performing the build as contracted? Explain. (5)
- I’m excited to have booked a trip to be able to go flounder gigging (spearing). Unfortunately, I get hit with a major work project and can’t go. I call the guide a few days in advance notify him of my issue. He tells me that I still have to pay since he’s declined other trips. Under what doctrine am I required to pay? Would I still have to pay if someone called a day later and tried to book for the same time I had reserved? Explain. (8)
- I’m about half way done building a barn for a local farmer when I get a call about a project where I’ll make substantially more money and abruptly leave, never to return. What’s the extent of my liability, if any? Can he force me to finish? (8)
- What is the standard for recovering consequential damages as discussed in the text and Hadley v. Baxendale? (5)
- I am having some painting work done on my home. If a dispute over the contract arises, will the UCC apply? Explain why/why not. (5)
- Are the following merchants under the UCC? Explain briefly. (6)
- A C.P.A. doing your 2015 tax return.
- Taco Bell selling nachos.
- A & M-Central Texas selling its lone vehicle.
- I offer to buy a car from the local Ford dealer for $20,000. The Ford dealer accepts my offer, but includes a new clause requiring the purchase of an extended protection plan for $1,000. Will we have a binding contract under the UCC and/or Common Law? Explain the result for each. (6)
- What is the C.I.S.G. and what is its value to businesses? (4)
- I owe Tom $200, but don’t have the money presently. He suggests that I create a negotiable instrument that he can sell for some cash now. With limited on hand resources, I write on a small yellow post it note. “I promise to pay Tom or bearer $200 on April 15th.” After that, my pin is completely out of ink, so I prick my thumb and stamp my thumbprint. Is this negotiable? Explain completely. What type of instrument was attempted here? Assume for a moment that it is negotiable, would Tom likely be able to market it for cash? Explain. (8)
- I tell my wife not to sign her checks until she gets to the bank and she looks at me funny. Why is that good advice? Use proper legal vocabulary. (3)
- My debit card is stolen and $800 is taken before I am able to notify the bank a week later. Assuming the criminal is not found, how much of that amount will I be on the hook for? Explain. (5)
- Briefly explain the benefit of cashier’s check. (4)