Lost Dog Reward Dispute

On one of her daily constitutionals through the local park, Nicelady came across a stray dog. Because she was a dog lover, she coaxed the dog home with her and placed an ad in the paper, under “Lost and Found,” to try to find the dog’s owner. Soon thereafter, Dawglost, the owner of the dog, contacted Nicelady and arranged to come see the dog to see if it was in fact his precious stud poodle, Rambo. The next day, Dawglost came to Nicelady’s and saw that the dog was his Rambo. He was so overwhelmed with joy at finding his dog that he offered Nicelady a $* reward, although he told Nicelady that he would not be able to pay her the reward until February *, when he would receive the down payment on Rambo’s stud fee. Nicelady thanked Dawglost but told him that she was happy that he and Rambo were reunited, and she did not want any money from him. By February *, however, Nicelady had a change of heart. She decided that she could use the extra money, and so she called Dawglost and said that she would like the reward after all. Dawglost refused to pay. If Nicelady sues Dawglost for breach of contract, what will she recover? A. No compensation because she rejected Dawglost’s offer. B. No compensation because there was no consideration to support a contract. C. $*, because the technical defense of the Statute of Frauds will be overcome by Dawglost’s moral obligation to pay. D. $*, because Dawglost could not have revoked his offer until February *, and he failed to do so before Nicelady accepted.

Aldona, the owner of a tract of vacant land in a newly designated industrial park, contracted with Cristóbal, a reputable contractor, to design and build a three-story machine shop and assembly building. The agreed-upon price of the contract was $* million. Because of the design of the building and the weight load it would be supporting, the plans called for the footings for the foundation to be * feet deep. When Cristobal was about halfway through the excavation, he met with an unpleasant surprise. Unbeknownst to both parties, an underground stream ran through the soil at one corner of the planned excavation. To continue the project, Cristobal determined that he would need to reinforce the foundation and seal off the stream. He told Aldona that he would need an additional $* million to complete the project. Aldona refused to pay Cristobal more than the agreed-upon $* million, so Cristobal stopped work on the project. Aldona brought suit against Cristobal. Evidence at trial showed that the underground stream was not revealed in any existing topographical surveys and that neither party was aware of any unusual subsurface conditions. However, either a soil test bore or a sonic survey conducted by an expert would have revealed the presence of the underground stream. The likely result of Aldona’s suit is: A. Cristobal wins, because neither Cristobal nor Aldona hired an expert to perform a soil test bore or a sonic survey. B. Cristobal loses, because Cristobal assumed the risk of unusual soil conditions on the land. C. Aldona loses, because the modern doctrine of impossibility includes substantial impracticability. D. Aldona wins, because construction agreements are construed against the building contractor.

Laura and Emily wanted to open a restaurant, but were only able to raise $*,* of the $*,* needed for its construction. Bill, a contractor who had suffered greatly in the decline in residential construction, Iearned of Laura and Emily’s problem and suggested that they enter into the following agreement: Laura and Emily would pay Bill $*,* in cash on commencement of construction, scheduled for April * after the spring thaw. On completion of the restaurant on September *, Bill would be paid an additional $*,* in cash. He would agree to take the remaining $*,* of the cost of building the restaurant in monthly payments of $*,* principal plus *% annual interest on the outstanding balance, once the restaurant started earning a profit. Laura and Emily were delighted, and a written contract setting forth those plus other terms was executed on March *. Assume for the purposes of this question only that the region had a late spring and that on April *, Bill had not yet commenced construction of the restaurant. He has: A. Not breached the contract, but Laura and Emily need not make the initial $*,* payment. B. Not breached the contract, and Laura and Emily must make the initial $*,* payment. C. Breached the contract in a nonmaterial particular; thus, Laura and Emily need not make the initial $*,* payment. D. Breached the contract in a material particular; thus, Laura and Emily may treat the contract as at an end and sue for damages.

Laura and Emily wanted to open a restaurant, but were only able to raise $*,* of the $*,* needed for its construction. Bill, a contractor who had suffered greatly in the decline in residential construction, Iearned of Laura and Emily’s problem and suggested that they enter into the following agreement: Laura and Emily would pay Bill $*,* in cash on commencement of construction, scheduled for April * after the spring thaw. On completion of the restaurant on September *, Bill would be paid an additional $*,* in cash. He would agree to take the remaining $*,* of the cost of building the restaurant in monthly payments of $*,* principal plus *% annual interest on the outstanding balance, once the restaurant started earning a profit. Laura and Emily were delighted, and a written contract setting forth those plus other terms was executed on March *. Assume for the purposes of this question only that despite several months’ effort, Laura and Emily are unable to attract enough customers to earn any profit from the operation of the restaurant. They are able to find a buyer who pays them $*,* for the facilities. Bill brings an action against Laura and Emily for the remaining $*,* owing on the contract. Will he recover? A. No, because Laura and Emily never earned a profit from their operation of the restaurant. B. No, because the failure to earn profits from the operation of the restaurant was an unforeseeable intervening event. C. Yes, because the provision governing payment of the outstanding balance of the construction cost merely established the time frame in which payment was to be made. D. Yes, because all of the conditions precedent to Laura and Emily’s duty to pay had occurred.

Ken had a * Chevrolet that he had restored using only original General Motors parts. He told his friend George that he was interested in selling it, but didn't know what price to ask. George said that he would pay $*,* for the car, but would have to borrow the money and didn't know if he could get the financing. Ken said that he was going to put a classified ad in the auto section of the newspaper and really did not want to commit himself if George did not have the money. George then suggested that Ken postpone placing the ad in the newspaper and give him 10 days to obtain financing to buy the car. Ken agreed and wrote the following on a piece of paper and gave it to George: "I will sell my * Chevrolet to George if he comes up with $*,* within 10 days." Later that day, Ken met an old college buddy, Lester, whom he had not seen in several years. Lester was in the business of selling customized cars, and when he learned of Ken's Chevrolet, said, "For *% of the gross I could find you a buyer at no less than $*,*." Ken said nothing in reply. The next morning, Lester telephoned Ken and told him that Mr. Jones was willing to pay $*,* for the Chevrolet, sight unseen. Ken asked for Jones's phone number, which Lester gave, and then called Jones and arranged a sale. He then phoned George and said that he was revoking his offer. Which of the following best describes the agreement between Ken and George? A. A promissory estoppel situation. B. A quasi-contract. C. An offer for a unilateral contract. D. An option contract.

XYZ LLC is an Ohio limited liability company that has experienced financial difficulties in recent years. The company's manager has decided to make several significant changes to the company's business strategy, including laying off employees and selling off certain assets. Some members are unhappy with these decisions and are considering bringing a lawsuit against the manager. If a member were to leave the LLC, they would receive the value of their _____. A. shares B. bonds C. partnership interest D. membership interest

XYZ LLC is an Ohio limited liability company that has experienced financial difficulties in recent years. The company's manager has decided to make several significant changes to the company's business strategy, including laying off employees and selling off certain assets. Some members are unhappy with these decisions and are considering bringing a lawsuit against the manager. Who is/are the equity holder(s) of the business? A. The partners B. The manager C. The shareholders D. The members

XYZ LLC is an Ohio limited liability company that has experienced financial difficulties in recent years. The company's manager has decided to make several significant changes to the company's business strategy, including laying off employees and selling off certain assets. Some members are unhappy with these decisions and are considering bringing a lawsuit against the manager. The terms among the members of the LLC and between the members and the manager of the LLC are _____. A. the by-laws B. the limited partnership agreement C. the operating agreeement D. the partnership agreement

XYZ LLC is an Ohio limited liability company that has experienced financial difficulties in recent years. The company's manager has decided to make several significant changes to the company's business strategy, including laying off employees and selling off certain assets. Some members are unhappy with these decisions and are considering bringing a lawsuit against the manager. What is the nature of the members' fiduciary duties? A. The members owe duties of good faith, obidience, loyalty, and care to the business. B. The members owe no fiduciary duties to the business. C. The manager owes duties of good faith, obidience, loyalty, and care to the business. D. B & C

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XYZ LLC is an Ohio limited liability company that has experienced financial difficulties in recent years. The company's manager has decided to make several significant changes to the company's business strategy, including laying off employees and selling off certain assets. Some members are unhappy with these decisions and are considering bringing a lawsuit against the manager. We refer to this form of LLC as _____. A. member-managed B. director-managed C. shareholder-managed D. manager-managed

XYZ LLC is an Ohio limited liability company that has experienced financial difficulties in recent years. The company's manager has decided to make several significant changes to the company's business strategy, including laying off employees and selling off certain assets. Some members are unhappy with these decisions and are considering bringing a lawsuit against the manager. What is the nature of the members' fiduciary duties? A. The members owe duties of good faith, obidience, loyalty, and care to the business. B. The members owe no fiduciary duties to the business. C. The manager owes duties of good faith, obidience, loyalty, and care to the business. D. B & C