Andrew Smith, a police officer for Santa Fe, New Mexico

Andrew Smith, a police officer for Santa Fe, New Mexico, saw an ad for the vacation of his dreams in the local, “Santa Fe Gazette.” The ad read, “Seven days at the wonderful luxury All Seasons resort, ‘Cabo Mar,’ $1200 per person, all inclusive.” The ad featured a picture of the front of the hotel with a person receiving a massage by the pool superimposed over the hotel façade. The ad went on to say how the hotel was located on the beach at Cabo San Lucas, Mexico and in a wonderful tropical setting. The ad also listed the name of a local travel agency, Amanda’s Tours, for booking purposes. In miniscule print at the bottom of the ad, blending with the pattern of the iron railing, the ad went on to make a short disclaimer to the effect that the amenities featured were not necessarily those provided. Smith knew Amanda Hooley, the owner of the agency. Anxious for some time off in a warm climate, Smith decided to Google the hotel name to verify that it was indeed an All Seasons hotel as he knew All Seasons to be a reputable company. From Google, Smith was able to confirm that the, ‘Cabo Mar,’ was owned by All Seasons; he also noticed that the same picture appeared on this website as he had first seen in the newspaper. The site also showed pictures of what seemed to be spacious, well-appointed rooms with queen sized beds. Excited by what he saw, Smith called Amanda’s Tours and booked the special he saw in the newspaper ad.

When he arrive, Smith found that the hotel’s exterior looked like the pictures he saw, but that the hotel was located mostly in the town of “Cabo” and only a very small portion of the hotel was facing the beachfront. His room only had a twin ben and was smaller than the one on the website. Smith was told that if he wanted a bigger room he would have to pay an upgrade fee of $500 for the seven days. He paid the $500 because he was a tall, big man and needed more space to sleep. As the trip went on, Smith became increasingly uncomfortable with the, “not included,” fees that were mounting up, but when he went to check out on the seventh day he found that he was being charged for seven lunches. Furious with how the company had treated him, Smith stormed across the lobby to the manager’s office, but before he could get there, he slipped and fell on the wet marble floor having been just washed by the maintenance staff. The staff had placed a “wet” sign on the floor, but it was hidden from plain view behind a large leather chair.

Smith was taken to the nearest hospital where it was determined that surgery was necessary to place a pin in his broken ankle. Anxious to return home and leery of the Mexican hospital, Smith flew out of Mexico immediately after the surgery. He required two plane seats and an ambulance to meet him at the various airports. His health insurance would not cover his hospital stay in Mexico as it was outside the U.S. When back in Santa Fe, Smith was not able to work for twelve weeks and required another surgery to remove the pin as well as several weeks of therapy. In addition, Smith received his credit card bill with a thousand dollars, “additional charges,” that had been added during his stay at the, ‘Cabo Mar.’

Smith comes to you to consult about his options in this whole affair. He wants to sue for $575,000 to recover on the medical expenses; the cost of the trip (which, with the additional charges amounts to $2200); his lost wages; and pain and suffering resulting from the injury.

In your research of the situation, you discover the following additional information:
1. Amanda’s Tours is a sole proprietorship owned by Amanda Hooley. At age 18, Amanda took over the business from her mother, also named Amanda Hooley. Just prior to reaching the age of 18, Amanda had booked Smith’s tour. Amanda Tours has an exclusive sales contract with All Seasons Travel, Inc. Amanda Tours placed the ad in the Santa Fe Gazette. Similar ads were placed by Amanda Tours in various newspapers around New Mexico as well as on Amanda’s Tours’ company web site.
2. Both All Seasons Hotels, Inc. and All Seasons Travel, Inc. are corporations registered and headquartered in Delaware. All Seasons Travel has no offices and no hotels in New Mexico. It does have an exclusive agency contract with Amanda Tours. All Seasons Hotels, Inc. owns and operates the Cabo Mar Hotel.

Question 1 of 7 1.0 Points
Smith wants to sue Amanda Tours, All Seasons Hotels, Inc, and All Seasons Travel, Inc together in Federal court for his injuries as a result of the fall. Can he do so?

A. Yes, because Federal Court has jurisdiction over citizens of different states.

B. No, because Federal Court does not have jurisdiction in cases that do not involve federal laws.

C. Yes, because the Federal Court has jurisdiction over citizens of different states and the suit involves monies greater than $75,000.
D. No, because the Federal Court has no jurisdiction over an accident that occurred in Mexico.
Question 2 of 7 1.0 Points
It would be easier for Smith to bring suit in New Mexico State court, but he wonders if the court can get the All Seasons Hotel and Travel companies to come to New Mexico. Can the court bring the defendants to New Mexico?

A. No, because the subject of the suit took place in a foreign country.

B. No, because the corporations do not have sufficient contact with the state to allow the court to use the long arm statute.
C. Yes, because the Plaintiff is a citizen of New Mexico and it is his suit.

D. Yes, because the corporations have sufficient minimum contact with the state to justify the court’s use of the long arm statute.
Question 3 of 7 1.0 Points
All Seasons Travel and All Seasons Hotel’s both claim that they did not have a contract with Amanda because she was a minor at the time of her dealings with Smith and that they are therefore not responsible to Smith. The contract was void. Smith can refute this argument because:

A. the fact that Amanda was only days away from becoming an adult negates her minor status.
B. being a minor doesn’t affect her agency relationship with All Seasons.

C. the privilege to renounce the contract lies with the minor.

D. both b and c

Question 4 of 7 1.0 Points
Smith wants to sue Amanda’s mother personally because she has all the family money. Amanda Hooley, the mother, says that she isn’t responsible because she doesn’t own the company anymore. Will Amanda Hooley, the mother, win?

A. Yes, because Amanda Travels is a sole proprietorship and if she doesn’t own it anymore. She isn’t personally responsible for its liabilities.
B. No, because she owned the business at the time of the contract with Smith.
C. No, because Smith knew her as the owner.

D. both b and c

Question 5 of 7 1.0 Points
Smith wants to get his money back for the trip including the additional charges for those items not included in his “all inclusive” vacation. Under what contract theory or theories will Smith prevail in his suit?

A. The advertisement and website created an express warranty that the trip would include all expenses, three meals a day, and a room with a queen bed.
B. Smith entered into the contract based on a mistake of material fact which the hotel knew to be untrue.
C. Under the UCC written disclaimers must be conspicuously displayed to be valid.
D. All of the above
Question 6 of 7 2.0 Points
Instructions:In four to sex sentences, please answer the following question:

Which contract law will the court most likely apply in making a decision in Jones’ attempt to recoup his trip costs; common law or the UCC and how will it affect the remedies he can obtain? Explain
Maximum number of characters (including HTML tags added by text editor): 60,000

Question 7 of 7 5.0 Points
Instructions:Frame a complete definition of the legal question asked and explain how the law applies to the facts. Suggested length is two to three paragraphs.

Smith brings suit against all the defendants, All Seasons Travel, All Seasons Hotel and Amanda’s Travels for Negligence. Explain the theory, the elements and how it would apply to Smith’s case. Will Smith be successful against all the defendants? Explain. Be sure to include any and all defenses if any that may lie in your discussion.

Label the sub-parts of your answer as follows:
• Theory
• Elements
• Application
• Defenses
• Conclusion
Maximum number of characters (including HTML tags added by text editor): 60,000

Part 2 of 4 – Case Two
Sue and Juan own “Tacos, Tamales and Tortilias,” (TTT) a food truck business, which sells gourmet Mexican cuisine on the Streets of San Franscico, California. The partners operate four food trucks scattered at various points in the downtown area close to the office and retail shops. They have a vendor’s license from the City to operate their business. TTT is very successful. Their best selling dish, “The Tamarito,” is so popular that it was the subject of a Food Network, “Diners, Drive-Ins and Dives” with Guy Fieri. The, “Tamarito,” won the competition. Sue and Juan are understandably, very proud of their products.

The partnership does not yet have a formal agreement that outlines profit distribution, managerial responsibilities, and liabilities of the parties. Sue and Juan have agreed to expand the food truck business to include four new trucks in the city. They also decide to franchise the food truck business around the state. Sue has agreed to the expansion only if they bring in a new partner, with money, for the express purpose of getting the franchise contracts. Jeremiah, one of Sue’s friends, has agreed to become a partner for the time it takes to set up the franchise business. Jeremiah offers to contribute $50,000 to the partnership with the understanding that he will double his money by the end of the 1st twelve months of continuous operation of the four new trucks in the city and no less than 10 additional franchises around the state. No written agreement was made between the partners.

Every year The American Legion sponsors an Amateur Athletics Festival. It begins on the second of May and culminates with the sack race on May 4th. The proceeds of the festival are given to the local animal shelter. The three day festival is a big money maker for TTT because of all the activity in the downtown area leading up to the festival and because of the large number of people who come to the festival. It comprises almost 25% of their annual income. Historically, TTT has had their usual four trucks around the city during the festival. This income goes to TTT.

TTT also sponsors one truck during the festival which is located in the festival area, itself. The proceeds from this truck go the festival sponsors. This year, the sponsors anticipate an increased attendance of 15%. Sue and Juan are excited about this, and hope that they can use the additional funds to help fund their business expansion.

One month before the Festival, Sue and Juan received a mailed notice from the City of San Francisco informing them that, due to a new City Ordinance brought about because of excessive traffic flow, licensed food trucks would no longer be able to operate in the immediate downtown area of San Francisco. The city passed the ordinance at the last city council meeting without prior notice of any kind. The ordinance was written to go into effect on the 1st of May. Vendors could only sell their wares in a concentric circle some 15 blocks from the main street of San Francisco. Not only would all the food truck vendors be more or less together, but the proposed area has very little foot traffic and customers. Failure to abide by the law would result in the loss of a vendor’s license for ten days and a five thousand dollar fine.

The TTT partners were angry and devastated. If this law were allowed to stand, they could no longer do business in the downtown area, they could not participate in the Festival, and their expansion plans would go up in smoke. Worse yet, in anticipation of the Festival, Sue and Juan ordered and made payment on thirty thousand tortillas, five hundred pounds of ground beef, and condiments from Century Food Distributors, their usual supplier. After much discussion, Sue and Juan decide that they were going to set up for the festival as usual and take the chance of getting a fine and suspension. Sue and Juan make this decision because they think it will be cheaper to pay the fine and lose the ability to do business for ten days than to do business on the city’s terms. The serious financial pressure from having already prepaid Century for the tortillas, beef, and other condiments has added real urgency to their decision to pursue business as usual.

From their point of view, it means that TTT can live to fight another day. Sue and Juan agreed to this course of action without asking Jeremiah, who was not around.

May first arrives, and TTT sets up for the Festival. Business at the Festival was going great. The money was pouring in and all the trucks were really busy. People who had seen the Food Network show were anxious to try The Tamarito. One customer was so excited that he raced to the truck and tripped over a nearby box of tortillas which caused him to fall into the back of truck, hitting his head on the floor and knocking over the young woman handing out samples. Both sue TTT. The suits total $60,000. Moreover, in the midst of the accident, the police arrive. TTT receives a summons and ticket for violation of the new city ordinance. TTT was given a ticket on each remaining day of the festival.

As if this were not enough, three thousand of the tortillas delivered by Century Food on the second of May contained mold. This was not discovered until the final day of the festival. Once discovered TTT was forced to close two of their trucks completely before the end of the festival. Sue and Juan estimate they lost four thousand five hundred dollars of business.

In addition, while Sue and Juan were busy with the festival happenings, Jeremiah signed three new TTT franchise contracts, and took deposits totaling fifty thousand dollars. Upon his arrival back in San Francisco he finds out the problems with the festival and wants out of the partnership. He feels his partners did not include him in their decision-making and that he should not have to pay for their mistakes. He does inform them of the franchise agreements. However, he also informs them that he is leaving with the fifty thousand dollars he collected from the companies, because it is the same amount he put in to the business.

Sue and Juan look to you for advice. They have come with the following list of questions for you to answer (please select the best response to each question):

Question 1 of 6 1.0 Points
If the law suits are successful against TTT will Jeremiah have to pay too?

A. No, because he didn’t get to vote on the decision to participate in the festival.
B. No, because no one knew that he had become a partner.

C. Yes, only to the extent of his fifty thousand dollar contribution.

D. Yes, because an incoming partner is personally liable for debts and obligations incurred by the partnership after becoming a partner.
Reset Selection

Question 2 of 6 1.0 Points
Does the fact that there is no written partnership agreement for TTT mean that no partnership exists?

A. No, a partnership may be oral or written.

B. No, a partnership can be implied by the actions of the party toward others.

C. Yes, because no one on the outside can tell if they are partners or not.

D. Both a and b
Question 3 of 6 1.0 Points
If the personal injury law suits are successful, and if TTT does not have enough money to pay for what has been ordered, do the partners have to personally pay the difference?

A. No, because the partnership is considered a person in the eyes of the law and the partners are not personally liable for what the partnership does.

B. Yes, partners are both jointly and severally liable for torts against third parties and the debts of the partnership.

C. Yes, they will each be equally liable for torts against third parties.

D. Yes, because partners are jointly liable for debts of the partnership.

Question 4 of 6 0.0 Points
Sue and Juan feel that they should not be responsible for the customer’s damages, because they told all TTT employees never to leave the tortilla boxes lying around the cart. Will this fact get them off the hook?

A. No, because as an agent of TTT the employee’s actions are deemed their actions.

B. No, because the act was committed within the scope of employment.

C. Yes, because the employee was acting outside the scope of employment by not adhering to the rules.

D. Both a and b

Question 5 of 6 1.0 Points
Sue and Juan do not want to continue with the Franchise business with Jeremiah gone. Is it possible for them to get out of the contracts by claiming they did not know Jeremiah was making them?

A. Yes, because they can show how busy they were at the Festival.

B. Yes, because they can show that they did not authorize Jeremiah to make the contracts.

C. No, because partners are agents of each other and the partnership.

D. Yes, because the contracts are no longer profitable for the partnership.

Question 6 of 6 2.0 Points
Instructions: In four to six sentences explain your answers to the following questions.

Sue and Juan are also concerned about their contract with Century Foods. They would like to know if they can get reimbursed for the forty-five hundred dollars of business they lost and the money they paid Century for the tortillas and delivery. Under the UCC explain two of the best warranty theories that would help TTT to recover their losses.
Maximum number of characters (including HTML tags added by text editor): 60,000

Question 1 of 7 1.0 Points
Simon hires Peyton under a contract that reserves to Simon the right to cancel the contract on thirty days’ notice at any time after Peyton begins work. This promise is

A. enforceable.

B. and accord and satisfaction.

C. an unenforceable contract.

D. a release.
Question 2 of 7 1.0 Points
Jian is seeking to avoid performing a promise to pay Genevieve $150. Jay is claiming a lack of consideration on Genevieve’s part. Jian will win if he shows that

A. before Jian’s promise, Genevieve had already performed the requested act.

B. Genevieve’s only claim of consideration was the relinquishment of a legal act.

C. Genevieve’s asserted consideration is only worth $50.

D. the consideration to be performed by Genevieve will be performed by a third party.
Question 3 of 7 1.0 Points
Red Oak, Inc, assures Sultana Retail Corporation that its offer to sell its products at a certain price will remain open. This is a firm offer only if

A. Sultana (the offeree) gives consideration for the offer.

B. Sultana (the offeree) is a merchant.

C. the offer is made by Ed Oak (a merchant) in a signed writing.

D. the offer states the time period during which it will remain open.

Question 4 of 7 1.0 Points
Luis assigns to Isabella a contract to buy a used car from Francine. To be valid, the assignment must

A. be in writing and be signed by Luis.

B. be supported by adequate consideration from Isabella.

C. not be revocable by Luis.

D. not materially increase Francine’s risk or duty.
Question 5 of 7 1.0 Points
Case Creations, Inc. (CCI),a Baltimore based bakery tells Milena, whose business is purchasing for others, to select and buy $2,000 worth of fresh fruit and ship it to Case Creations bakery. Milena buys the goods from Fresh Fruits and ships the fruit as directed, keeping an account for the expense in CCI’s name. CCI and Milena

A. do not have an agency relationship, because Milena’s business is buying for others.

B. do not have an agency relationship, because Milena did not indicate that she was acting for CCI.

C. do not have an agency relationship, because their agreement is not in writing.

D. have an agency relationship
Question 6 of 7 1.0 Points
Amani owns Amani’s Salon, which owes back rent to Charm City Properties, a landlord. Amani agrees to pay a percentage of her profit each month until the debt is paid. Charm City Properties is

A. Amani’s creditor and partner.

B. Amani’s creditor only.

C. Amani’s partner only

D. neither Amani’s creditor nor partner.
Question 7 of 7 1.0 Points
InstaRide issues common stock for sale to the public. If Priya buys ten shares of the stock, she had a proportionate interest with regard to

A. control, earnings, and net assets.

B. control only.

C. earnings and net assets only.

D. none of the above.
Question 1 of 2 0.0 Points
InstaRide issues common stock for sale to the public. If Priya buys ten shares of the stock, she had a proportionate interest with regard to

A. control, earnings, and net assets.

B. control only.

C. earnings and net assets only.

D. none of the above.
Question 2 of 2 0.0 Points
Kahlil is starting Green Tee, a lawn care service for golf courses. Kahlil can avoid all business related legal requirements if he organizes the business as

A. a company.

B. a partnership

C. a sole proprietorship.

D. none of the above.