1.John, Lionel, and Evelyn Harrymore, siblings and actors, decide to retire after years on the road. They remember a town in Illinois they were familiar with from their travels. From the internet, they learn of a farm a few miles outside of town that seems ideal. There is a great house and lots of land. The Harrymores wish to convert the farm to a restaurant-hotel with a dinner theater. They contact the realtor by phone, and make arrangements to buy the parcel. The Harrymores plan on traveling to Illinois prior to the closing to look things over, but are unable to do so due to their touring schedule. The realtor, whose commission is technically paid by the proceeds to the seller, and who has a listing contract with the seller, advises the Harrymores that she will handle everything. Illinois custom, law, and practice does not require a purchaser of land to have an attorney. The realtor does only the bare minimum needed for title to transfer to the Harrymores. On their behalf, she only has a minimal title search and minimal inspections done, and she obtains a minimal coverage title insurance policy. As the area near the farm was once occupied by a large chemical plant, when the realtor represents local purchasers, as a precaution, she advises the buyers to get the maximum possible title search and title insurance, and to get all possible inspections done. It is her regular practice to caution local purchasers who she represents about the former chemical plant. After closing on the property, the Harrymores learn of the old chemical plant. They seek your advice as to their liability and the liability of any other parties.

2. DeVine Jewelers is an American corporation doing business throughout the world. DeVine purchases its gems from a variety of suppliers both at home and abroad. Recently, there has been high demand for a newly discovered gem identified as ciprion an emerald like stone. Leegin Mines is the only supplier for ciprion, and is located in Tanzania, a country in East Africa. DeVine and other U.S. jewelers purchase ciprion from Leegin. Leegin Mines is getting concerned that the consumer demand will drop as ciprion floods the market. In an effort to make it an exclusive gem, Leegin contacted DeVine with an offer. Leegin would only sell ciprion to DeVine as long as Devine does not sell the gem for less than $1,500 per carat.

You work for DeVine Jewelers. Your boss thinks DeVine might be able to take Leegin up on its offer because Leegin is a Tanzanian corporation; however, he first wants to vet all possible legal issues. You have been asked identify any antitrust issues that might arise in this situation and what will be considered in determining whether an antitrust violation actually occurred. Further, you need to determine if DeVine and Leegin can avoid any legal consequences, if there is a restraint of trade, due to the fact Leegin is located in Tanzania. Finally, you have been asked to give your boss a recommendation as to how to proceed based on the information you provide.

3. Eleven months ago, Sally Jones started work for Software Stratus. Sally was hired by the President of Software Stratus (Sam Larson) while they were playing golf together. Sam offered Sally a job in the sales department with a salary of $60,000 year plus a monthly bonus of 15% of her previous month’s sales. Sally said to him that she wanted to work there for the rest of her life. Sam laughed and said Sure” and the two shook hands. Two months ago, Sally announced that she was pregnant and planned to take 4 months off when the baby was born. Sally’s maternity leave is set to start at the same time as the release of a new product that Software Stratus is counting on her to sell. Sally was called into the office of the Human Resources and was terminated because she would be gone when the new product was going to be released. Sally said that the president himself had told her she would be employed at Software Stratus for life. Sally also claimed she was being discriminated against as well. 1. Identify and apply an ethical theory from our text that you think Software Stratus should have applied to this situation with Sally. What should Software Stratus do next based upon your analysis? 2. Identify and apply a theory of contract law Sally could use to support her claim that the oral contract with the President of Softward Stratus (Sam Larson) is binding. Do you think it would be successful? 3. Identify and apply a theory of employment law Sally could use to support her claim that she is being discriminated against. Do you think it would be successful?

4. Mike worked at the local country club as a lifeguard, not a swim teacher, for the summer. Mike was a public school physical education teacher. The country club did not do a background check or confirm any references when they hired him. They relied on the recommendation of Mike’s brother, a member of the country club board of directors. The country club only did a cursory internet search of the state’s Department of Education website to verify that he had a valid teaching certificate. When one of the swim instructors unexpectedly quit one day, he took over the class. Mike was never hired as a swimming instructor, at all times he remained a lifeguard. Initially, the class went well. Eventually, Mike also took over coaching the club’s competitive swim team.

When he became the swimming coach, Mike effectively stopped teaching” the swim classes. Instead, he had all the swimmers in the classes do races and train for competitive meets during the 30 minute lessons. Mike had done this many times during the summer. His boss, the country club director, knew this and, as the swim team was winning, ignored complaints from parents and students. Mike raced with the swimmers and pushed the winners out of the way when they tried to touch the side of the pool so that Mike’s team would win each time. This was not the first time that Mike had injured swimmers. Last year, he was arrested for physically abusing a child he coached at his school. Although the criminal charges were dropped, Mike is on administrative leave from his public school job until an administrative hearing with the state Department of Education can be held in the fall. The incident was reported in several local papers, and his administrative suspension is listed on the state’s database.

Several of the children, ages 6-8, reported to their parents that they had been physically assaulted by Mike while in swim class for not working hard enough!” The children had bruises on their shoulders. In addition, Mike began approaching” an 18 year old college student who worked as a lifeguard and assisted Mike with the coaching. Over time, Mike’s advances” toward the young man became very aggressive. Mike continued even though the young man asked him to stop. In fact, after the young man told Mike to stop, Mike hired another lifeguard to assist him with the coaching. The country club director was aware of this situation, but as the swim team was winning, he took the position that it was an interpersonal issue that the two should work out among themselves.

Several parents brought suit against the local country club, Mike, and the country club director. The young lifeguard has also brought suit. The local country club pool alleges that they are not liable. Discuss the ethical, liability, and agency issues presented by this matter, and all defenses available to the local country club pool.

5.Three professors from Keller’s New Jersey campus, Robinson, Romney, and Obama, decide to visit ABC Go-kart facility together in Pennsylvania. This decision is made after a lengthy faculty brunch, at which unlimited alcoholic mimosas were served. ABC Go-kart advertises at the college’s various campuses and, in fact, the professors use their faculty discount at the facility. At the facility signs are posted everywhere in bold: BY PARTICIPATING IN Go-KART RACING, YOU VOLUNTARILY ASSUME THE RISK OF ANY DEATH OR INJURY THAT MAY RESULT. Additionally, the professors hurriedly sign a contract, which states: YOU ARE GIVING UP ALL LEGAL RIGHTS”; ABC WILL NOT BE HELD LIABLE FOR ANY NEGLIGENCE RESULTING IN YOUR INJURY OR DEATH”; and THE PARTIES AGREE THAT ANY POSSIBLE LEGAL ACTION WILL BE HEARD IN THE STATE OF PENNSYLVANIA.” Professor Robinson, who lives in New York City, is sick and sweating profusely after consuming a great deal of alcohol. He decides not to race. He suspects that he is having a minor reaction as he is diabetic and drank more than he intended. In the Waiting Area, which is located next to the track, he takes off his helmet. There is a sign posted that says KEEP YOUR RACE HELMET ON WHILE IN THE WAITING AREA!” Obama and Romney, who dislike each other for unknown reasons, are the only ones on the track. They use go-carts manufactured by Kartmatic. As they begin the race they drive very aggressively. Unbeknownst to either party, Fred, ABC’s mechanic, fed up with low pay, did not do the usual morning inspection of the brakes and tires on either vehicle that morning. ABC had been contemplating firing Fred due to his erratic work habits. ABC instructed Fred to inspect the Kartmatics daily as they never trusted their brake mechanism. Kartmatics are regularly marketed to amusement parks. Their instruction manual states that they are not to be used for racing. After two laps, Obama’s brakes fail as he tries to aggressively pass Romney. He crashes into Romney’s kart near the waiting area. The brakes on both vehicles fail to hold. A tire dislodges at a high-rate of speed, and hits Professor Robinson in the head, rendering him unconscious and bleeding from head injuries. His helmet is lying on the ground nearby. An ambulance is called. The medical technicians, seeing the head injuries, fail to notice the medical alert bracelet on Professor Robinson’s wrist. At the hospital, Robinson dies from insulin shock and other complications due to his diabetes while the emergency room doctor was doing a procedure to prevent blood clots and a possible stroke from the head injury. At autopsy, it was later learned that Professor Robinson had been rendered brain dead by accident at the ABC Go-kart facility.

(a) What claims may Professor Robinson’s widow bring against the various parties? (b) What defenses might each party bring against the possible claims asserted by Professor Robinson’s widow? (c) In what state should the case be brought?

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