Doris graduates from the paralegal program at the community college. Doris
opens an office, creates a certificate that says she is licensed to practice law,
and opens her door for business. Renee contacts Doris to prepare a contract
for the sale of her beauty salon. After discussing all the details with Renee,
Doris prepares a contract for the sale of the beauty shop and presents it to
Renee. The next day, Doris sends Renee a bill for $300 for legal services. Before
Renee receives the statement in the mail, Renee discovers that Doris is not
actually licensed to practice law. When Doris's bill arrives in the mail, Renee
ignores it. If Doris tries to force Renee to pay the bill: Answer - Renee will not
have to pay Doris because Doris is not a licensed attorney.
Willow has worked for Cloud Computing Inc. in Boulder, Colorado, for five
years. When Willow joined Cloud Computing, she signed an employment
contract that contained a covenant not to compete. The covenant states that if
Willow leaves Cloud Computing, she will not work for any competitor for two
years. Willow is approached by Centers for Computing Inc. with a job offer that
she simply cannot refuse. Centers for Computing is located in Atlanta, Georgia.
Willow accepts the job with Centers for Computing, and Cloud Computing sues
Willow for violating the covenant not to compete. The result of this lawsuit will
probably be that: Answer - Willow will win, and the court will reform the
contract to add a reasonable geographical restriction..
Hailey visits Rent-it-Your-Way Electronics and selects a big screen television to
buy that costs $1,199. Hailey cannot afford to purchase the television outright,
so she asks about financing. Ruby, the salesperson, assures Hailey that
financing is available; Hailey can take the television home today and simply pay
, forty dollars each month until it is completely paid. Ruby shows Hailey their
standard financing contract, which has three pages of tiny print. Hailey signs
the contract and takes the television home. Hailey pays the monthly payment
for ten months and then realizes that the balance has only gone down a small
amount. Hailey looks closely at the monthly statement and realizes that the
interest rate is thirty-five percent. At this rate, she will never get the television
paid off. If Hailey tries to rescind the contract: Answer - Unconscionable
contracts are ones that are so unjust that it would be unfair for a court to
uphold them against the weaker party.?
Wyatt goes to work for Epstein Corp., a manufacturing facility that makes lamps
and other lighting fixtures. On Wyatt's first day of work, he is required to sign
an employment agreement which has an exculpatory clause. The clause
releases Epstein Corp. for liability for any injury Wyatt receives during the
course of his employment, whether the injury is accidentally or purposely
caused, whether the accident involves any machinery the company owns, and
whether it is caused by management or any employee who works for the
company. If Wyatt is later injured when another employee accidently hits him
with a wrench: Answer - Epstein Corp. will be responsible for the injury
because the exculpatory clause is unenforceable.
Anna, Sylvia, and Bonnie decide to purchase honey illegally from Canada and
sell it in the United States. Each party contributes $500 to the venture, which
has an expected return of $3,000 each. The morning they are to pick up the
honey, Anna changes her mind; she does not want to be a part of any illegal
deal. Sylvia and Bonnie proceed to purchase the honey and give the seller the
agreed-upon $1,500. Because Anna withdrew from the deal before the illegal
contract had been performed: Answer - She is entitled to have her initial
investment, $500, returned.
Marco hires Franco to burn down a clothing store that belongs to one of
Marco's competitors. Marco pays Franco $1,000 upfront and promises another
$3,000 when the job is done. Franco burns down the clothing store and then
asks Marco for the rest of the payment. Marco just laughs at Franco and walks
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