Discuss the UCC's treatment of third party title and ownership rights to property obtained from a seller who did not have good title to the property.
Instructions
Exam 2 is a take home open-book exam. You must submit your completed exam to me
electronically through Turnitin" rel="nofollow">in. A file has been created in" rel="nofollow">in the Week Eight Module in" rel="nofollow">in
Canvas for you to submit Part Two of your completed exam. Both Parts One and Two
must be submitted no later than 11:59 p.m. on MONDAY December 5. Exams returned
after that time and date will receive NO credit.
Type out your complete answer to the Short Answer and Short Essay questions. DO NOT
repeat the question with your answer, but list only the number of the question with your
answer. The maximum origin" rel="nofollow">inality score for Part Two is 15%. Part Two of Exam Two has
17 Short Answer questions worth 2 poin" rel="nofollow">ints each and two fin" rel="nofollow">inal Short Essay questions worth 8
poin" rel="nofollow">ints each for a total of 50 poin" rel="nofollow">ints.
Short Answer : (2 poin" rel="nofollow">ints each)
1. Discuss the UCC's treatment of third party title and ownership rights to property obtain" rel="nofollow">ined
from a seller who did not have good title to the property.
2. Emily operates a distillery in" rel="nofollow">in Louisville, Kentucky. On November 5, 2016 Emily entered in" rel="nofollow">into
a contract to purchase 300,000 bushels of corn from Sasha. At the time Emily enters in" rel="nofollow">into the
contract, Sasha has already harvested his corn crop and is storin" rel="nofollow">ing the corn at a commerciallyoperated
grain" rel="nofollow">in silo in" rel="nofollow">in Davenport, Iowa. The grain" rel="nofollow">in silo is owned and operated by Ted. The
contract in" rel="nofollow">instructs Emily that she should pick up her purchase of corn at the grain" rel="nofollow">in silo, and may
take delivery after November 15. Emily arranges for her trucks to pick up the corn on November
18. On November 17, the First Bank of Davenport executes a court judgment awarded to the
bank again" rel="nofollow">inst Sasha for her default on a bank loan and seizes all of the corn Sasha had stored in" rel="nofollow">in
Ted's grain" rel="nofollow">in silo. Both Emily and the Bank claim right to the 300,000 bushels of corn. Emily files
a lawsuit askin" rel="nofollow">ing the court to order Bank to turn over the corn to her. You are the judge. What is
your decision? Explain" rel="nofollow">in your answer.
3. Boris operates a deer meat processin" rel="nofollow">ing busin" rel="nofollow">iness. Natasha entered in" rel="nofollow">into an agreement with Boris
to purchase deer meat for her customers who operate restaurants specializin" rel="nofollow">ing in" rel="nofollow">in locally produced
seasonal foods and game. Boris is not sure of the quantity of processed deer meat he will be able
to provide to Natasha because his supply of deer depends upon the success of his suppliers
durin" rel="nofollow">ing deer huntin" rel="nofollow">ing season. Because of this uncertain" rel="nofollow">inty, Natasha agrees to purchase Boris' entire
output of processed deer meat so that she can meet her customers' needs. Durin" rel="nofollow">ing the deer season
Boris processes twice the amount of deer meat than he had processed the previous year. Natasha
refuses to take delivery and pay for the entire quantity of dear meat that Boris tendered to her
claimin" rel="nofollow">ing that the amount is far greater than what she has purchased from Boris in" rel="nofollow">in the past. Is
Natasha required to purchase all of the deer meat tendered by Boris? Explain" rel="nofollow">in your answer.
4. Joey, Chandler and Ross want to go in" rel="nofollow">into busin" rel="nofollow">iness together after college and decide to open a
coffee shop. They orally agree to run the busin" rel="nofollow">iness as a general partnership. After several years,
Joey wants to leave the partnership and start his own juice busin" rel="nofollow">iness. Joey want to sell his share
of the partnership to Rachel. What legal issues are presented with Joey's desire to sell his
partnership in" rel="nofollow">interest? What advice would you give to Joey, Chandler and Ross before startin" rel="nofollow">ing
their busin" rel="nofollow">iness?
5. In October 2012 Mrs. Wilson owned 200 acres of land along Highway 94 in" rel="nofollow">in O'Fallon, Missouri. She
was tryin" rel="nofollow">ing to sell 20 acres of that land and had advertised that 20 acres was for sale. Andy is a real estate
agent who had represented Mrs. Wilson in" rel="nofollow">in 2005 when she sold 30 acres from her family farm. Andy
knew that Mrs. Wilson was sellin" rel="nofollow">ing more acreage and also learned that Tom was lookin" rel="nofollow">ing to buy some
property for development. Andy contacted Tom and told Tom that he was Mrs. Wilson's real estate
agent. Tom signed a contract with Andy to purchase the 20 acres for $7000 an acre. When Andy took
the sale contract to Mrs. Wilson, she told Andy he had no authority to sign the contract on her behalf.
Explain" rel="nofollow">in the circumstances, if any, under which Tom can enforce the sales contract.
6. Callahan Auto Parts is a large manufacturer of brake pads in" rel="nofollow">in the United States, and has a
reputation for manufacturin" rel="nofollow">ing high quality brake pads. In an effort to main" rel="nofollow">intain" rel="nofollow">in its reputation for
sellin" rel="nofollow">ing the highest quality brake pad, Callahan Auto Parts asked its distributors to sell the brake
pads only to specialized auto parts retailers. For years Callahan's distributors followed
Callahan's request and did not do busin" rel="nofollow">iness with discount auto parts stores. However,
Lin" rel="nofollow">indenwood Auto Parts, one of Callahan's larger distributors, recently began sellin" rel="nofollow">ing Callahan
brake pads to Zielisnki's "Brakes 4 Less", a major discount retail auto parts chain" rel="nofollow">in. Callahan
complain" rel="nofollow">ined to Lin" rel="nofollow">indenwood about their sales to Brakes 4 Less, but Lin" rel="nofollow">indenwood refused to stop
sellin" rel="nofollow">ing to Brakes 4 Less. When Tommy Callahan stopped sellin" rel="nofollow">ing its brake pads to Lin" rel="nofollow">indenwood,
Lin" rel="nofollow">indenwood sued Callahan Auto Parts under the Section 1 of the Sherman Act allegin" rel="nofollow">ing that
Callahan unlawfully restrain" rel="nofollow">ined trade. You are asked to advise Lin" rel="nofollow">indenwood on its claim. What is
your advice?
7. Christoph hired Jackie, a busin" rel="nofollow">iness broker, to sell his hardware store. As Jackie showed
prospective buyers the busin" rel="nofollow">iness, Jackie told them that Christoph's busin" rel="nofollow">iness "was a typical
hardware store," sellin" rel="nofollow">ing hardware and home improvement materials. Jackie said the store had an
annual gross in" rel="nofollow">income of over $2.3 million. Jackie did not tell prospective buyers that almost 50%
of the busin" rel="nofollow">iness profit was attributable to a commercial landscape busin" rel="nofollow">iness that Christoph was not
in" rel="nofollow">includin" rel="nofollow">ing in" rel="nofollow">in the sale. When Karl visited the busin" rel="nofollow">iness, Jackie kept him away from the warehouse
area from which Christoph ran the landscape busin" rel="nofollow">iness. Throughout their negotiations, Karl was
unaware of Jackie's misrepresentations. After purchasin" rel="nofollow">ing the store, Karl learned of the
importance of the landscape busin" rel="nofollow">iness to Cristoph's overall in" rel="nofollow">income and profits. Karl sues
Christoph for misrepresentation. Is Christoph liable for Jackie's misrepresentation?
8 . Julia and Tom are a successful Broadway musical songwritin" rel="nofollow">ing team. Tom composes the
music and Julia writes the lyrics. Tom and Julia operate their songwritin" rel="nofollow">ing busin" rel="nofollow">iness under a
general partnership names T&J Partnership. They formed the general partnership in" rel="nofollow">in 1997.
After a strin" rel="nofollow">ing of successful Broadway musicals, Julia decides to write a non-musical play
without Tom. In January 2012, Julia obtain" rel="nofollow">ins the rights from the author of "Fifty Shades of
Gray" to write the script for a play based upon the book. Julia writes the play which becomes a
fin" rel="nofollow">inancial success. Tom claims one half of Julia's profits from the play even though he
contributed nothin" rel="nofollow">ing to obtain" rel="nofollow">inin" rel="nofollow">ing the rights or writin" rel="nofollow">ing the play. What are Tom's rights?
9. Mako has plans to open a sushi restaurant on Main" rel="nofollow">in Street. Mako hires Koji to handle various
busin" rel="nofollow">iness matters for the restaurant, in" rel="nofollow">includin" rel="nofollow">ing fin" rel="nofollow">inalizin" rel="nofollow">ing the lease for the restaurant and arrangin" rel="nofollow">ing
fin" rel="nofollow">inancin" rel="nofollow">ing with local fin" rel="nofollow">inancial in" rel="nofollow">institutions. Koji signs a 5 year lease with Lin" rel="nofollow">indenwood Realty for
a prime restaurant location on Main" rel="nofollow">in Street. Koji signed the lease on behalf of "Main" rel="nofollow">in Street Sushi,
Inc.", the name of Mako's company. Main" rel="nofollow">in Street Sushi was not in" rel="nofollow">incorporated until 6 days after
Koji signed the lease with Lin" rel="nofollow">indenwood Realty. Did Main" rel="nofollow">in Street Sushi automatically become
liable on the lease Koji signed with Lin" rel="nofollow">indenwood Realty once it was in" rel="nofollow">incorporated? Explain" rel="nofollow">in your
answer.
10. Willy Dean is the largest producer of pre-packaged pork sausage in" rel="nofollow">in the United States. Willy
Dean and the next three largest producers of pre-packaged pork sausage control 72% of the prepackaged
pork sausage market in" rel="nofollow">in the United States. The Department of Justice brin" rel="nofollow">ings charges of
monopolization again" rel="nofollow">inst these four producers under Section 2 of the Sherman Act as a result
agreements they made to gain" rel="nofollow">in their market share by engagin" rel="nofollow">ing in" rel="nofollow">in predatory pricin" rel="nofollow">ing practices
in" rel="nofollow">intend to put the smaller producers out of busin" rel="nofollow">iness. The four producers argue that they, while
they are large producers, they do not have monopoly power required to prove a violation under
under Section 2. Discuss the merits of pork producers' argument.
11. Corey has a contract to sell Sean 500,000 pounds of peanuts at 50 cents a pound. Sean
uses the peanuts to produce peanut butter that he sells to retail grocery stores throughout country.
The agreement contain" rel="nofollow">ins no delivery terms. What are Corey's delivery requirements under the
agreement?
12. Lin" rel="nofollow">indenwood Builders is a successful residential contractor who builds custom homes in" rel="nofollow">in St.
Charles County. Bruno is an in" rel="nofollow">individually licensed electrician who Lin" rel="nofollow">indenwood has hired to
perform all of the electrical work and wirin" rel="nofollow">ing on Lin" rel="nofollow">indenwood's homes. Bruno is so busy with his
work for Lin" rel="nofollow">indenwood, that he does not perform electrical work for anyone else. Bruno was
drivin" rel="nofollow">ing from one of Lin" rel="nofollow">indenwood's homes where he had just completed the wirin" rel="nofollow">ing to another of
Lin" rel="nofollow">indenwood's homes where he was goin" rel="nofollow">ing to begin" rel="nofollow">in the wirin" rel="nofollow">ing when he ran a red light and hit a
pedestrian crossin" rel="nofollow">ing the street. The pedestrian suffered serious in" rel="nofollow">injuries and now claims
Lin" rel="nofollow">indenwood is liable for the in" rel="nofollow">injuries caused by Bruno. Does the claim have merit? Explain" rel="nofollow">in.
13. Several high profile corporations filed for Chapter 11 bankruptcy reorganization in" rel="nofollow">in recent years.
Many economic factors have be blamed, such as the collapse of the housin" rel="nofollow">ing markets, the deregulation of
the fin" rel="nofollow">inancial sector and the declin" rel="nofollow">inin" rel="nofollow">ing energy markets. Many critics of these bankruptcies poin" rel="nofollow">int to the high
dollar bonuses, stock options, and executive pay packages given to key executives just before the filin" rel="nofollow">ing
for bankruptcy. Can these payments be brought back in" rel="nofollow">into the bankrupt’s estate? Explain" rel="nofollow">in.
14. Mike has worked for Lin" rel="nofollow">indenwood Motors in" rel="nofollow">in the City of St. Charles, Missouri for 14 years.
He has been an exemplary employee and was promoted various times to reach his current
position as Sales Manager. Mike is gay, but his employer never knew. Recently, the owner of
Lin" rel="nofollow">indenwood Motors saw a newspaper announcement of Mike's engagement to his partner The
owner confronts Mike who acknowledges that he is gay. Two weeks later Mike is fired,
supposedly for poor performance. Mike thin" rel="nofollow">inks he was fired because he is gay, and wants to sue
Lin" rel="nofollow">indenwood Motors for employment discrimin" rel="nofollow">ination. Does Mike have a claim for discrimin" rel="nofollow">ination
under federal or Missouri law?
15. Lin" rel="nofollow">indsey is an exclusive fashion designer and has entered in" rel="nofollow">into a contract with Maria to
provide Maria's boutique with 30 designer gowns. After Lin" rel="nofollow">indsey designed the patterns for the
various gowns and purchased the material needed to make the gowns, Maria cancels her order
with Lin" rel="nofollow">indsey. What remedy does Lin" rel="nofollow">indsey have again" rel="nofollow">inst Maria for breach of contract?
16. On November 1, 2013 Parker enters in" rel="nofollow">into an agreement with Lin" rel="nofollow">indenwood Travel to be the
exclusive agent for Lin" rel="nofollow">indenwood Travel to sell vacation packages for riverboat cruises and train" rel="nofollow">in
excursions throughout the United States. The agency agreement has no provisions as to the
duration of the agreement. On November 10, 2013 Parker opens an office dedicated
exclusively for sellin" rel="nofollow">ing the riverboat cruises and train" rel="nofollow">in excursions. By November 25, 2013 Parker
has purchased $300,000 of television, radio and prin" rel="nofollow">int advertisin" rel="nofollow">ing to market and promote the
riverboat cruises and train" rel="nofollow">in excursions offered by Lin" rel="nofollow">indenwood Travel. On January 2, 2014,
Lin" rel="nofollow">indenwood Travel termin" rel="nofollow">inates Parker as its agent. As of January 2, 2014, Parker had earned
commissions of $8000 on the his sale of riverboat cruises and train" rel="nofollow">in excursions for Lin" rel="nofollow">indenwood
Travel. What rights, if any, does Parker have?
17. Explain" rel="nofollow">in how the statutory scheme or workers' compensation laws have transformed the traditional
tort recoveries in" rel="nofollow">in the workplace.
Short Essay : (8 poin" rel="nofollow">ints each)
1. Lin" rel="nofollow">indenwood DataTech provides IT support for professional busin" rel="nofollow">inesses. Lin" rel="nofollow">indenwood's major
clients are physicians' offices and law firms. Robert was Lin" rel="nofollow">indenwood's top analyst and
performed most of the in" rel="nofollow">in-field tech support for Lin" rel="nofollow">indenwood. Robert developed very strong
relationships with most of the in" rel="nofollow">in-house IT contacts of Lin" rel="nofollow">indenwood's clients. While workin" rel="nofollow">ing at
Lin" rel="nofollow">indenwood DataTech, Robert decided to open his own IT support busin" rel="nofollow">iness, knowin" rel="nofollow">ing that he
would likely be competin" rel="nofollow">ing with Lin" rel="nofollow">indenwood for many of the same clients. In fact, Robert was
dependin" rel="nofollow">ing on many of Lin" rel="nofollow">indenwood's clients to follow him to his new company. While he was
still employed by Lin" rel="nofollow">indenwood, Robert began to plan for his new busin" rel="nofollow">iness. On his own time, he
mailed a general in" rel="nofollow">informational brochure to busin" rel="nofollow">inesses on a mailin" rel="nofollow">ing list he obtain" rel="nofollow">ined from the St.
Charles County Chamber of Commerce. The brochure in" rel="nofollow">informin" rel="nofollow">ing prospective clients of his
experience plan to start his own tech support busin" rel="nofollow">iness on November 1, 2012. Some of the
brochures were mailed to Lin" rel="nofollow">indenwood's existin" rel="nofollow">ing clients. After leavin" rel="nofollow">ing Lin" rel="nofollow">indenwood on
November 1, Robert aggressively pursued the clients with whom he had built a relationship
while workin" rel="nofollow">ing at Lin" rel="nofollow">indenwood DataTech. Within" rel="nofollow">in 6 months, Lin" rel="nofollow">indenwood DataTech lost 4 of its
largest clients, which accounted for 57% of its revenue, to Robert. Lin" rel="nofollow">indenwood DataTech filed a
lawsuit again" rel="nofollow">inst Robert allegin" rel="nofollow">ing that he violated his duty of loyalty to Lin" rel="nofollow">indenwood and was
unlawfully competin" rel="nofollow">ing with Lin" rel="nofollow">indenwood, his former employer. Robert filed a motion to dismiss
Lin" rel="nofollow">indenwood's lawsuit because Robert never signed the non-compete agreement that Lin" rel="nofollow">indenwood
proposed go him, and therefore, Lin" rel="nofollow">indenwood has no legal basis to challenge Robert's competin" rel="nofollow">ing
busin" rel="nofollow">iness activity. What claim, if any, does Lin" rel="nofollow">indenwood DataTech have again" rel="nofollow">inst Robert? Explain" rel="nofollow">in
your answer. What additional in" rel="nofollow">information would you need, if any, to more fully evaluate the
merits of Lin" rel="nofollow">indenwood's claim?
2. Lin" rel="nofollow">indenwood Java, Inc. operates a chain" rel="nofollow">in of coffee shops called Java Brothers. Chandler is the
regional manager for Java Brothers and oversees all of its coffee shops located in" rel="nofollow">in metropolitan
St. Louis area. Joey is the manager of the Java Brothers location in" rel="nofollow">in St. Charles and is responsible
for all decisions relatin" rel="nofollow">ing to hirin" rel="nofollow">ing, firin" rel="nofollow">ing and schedulin" rel="nofollow">ing employees at the St. Charles location.
Ross works at the St. Charles location a barista, as does Rachel, who works as a waitress takin" rel="nofollow">ing
orders and waitin" rel="nofollow">ing tables. Rachel places her orders with Ross, who fills the orders and announces
when the order is ready. Rachel accuses Ross of sexually harassin" rel="nofollow">ing her by makin" rel="nofollow">ing lewd and
vulgar remarks in" rel="nofollow">in her presence. Rachel claims Ross has grabbed her and touched her
in" rel="nofollow">inappropriately. Ross has also made unwanted sexual advances to Rachel and has threatened to
get her fired if Rachel does not sleep with him. Because Rachel knows that Joey and Ross are
close friends, Rachel does not tell Joey about Ross's conduct and threats, but she does tell some
of the other employees about Ross' conduct. When Rachel learns that Chandler has approved
Joey's recommendation that Ross be promoted to head barista, Rachel quits her job. Rachel
claims that Ross's conduct has made the work environment in" rel="nofollow">intolerable for her. Rachel sues Ross
and Java Brothers for both quid pro quo and in" rel="nofollow">indirect sexual harassment. Rachel seeks your
advice as to the merits of her claim of sexual harassment again" rel="nofollow">inst Ross and Java Brothers. What
advice do you give?