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ESSAY: 3 points each.
Instructions: Frame a complete definition of the legal question asked and explain how the law applies to the facts. Suggested length is at least one to two paragraphs.
Refer to the scenario for Multiple Choice questions 14-15 above to answer the following essay question #1 only:
Scenario: Jones, a resident of Arizona, booked reservations for a vacation at World Hotels, Inc. in Cabo Mar, Mexico. World Hotels is an international hotel chain incorporated in Delaware with hotels in North and South America; World Hotels has no hotels in Arizona but does advertise and book reservations for all its hotels over the internet, in any state. World Hotels has booked reservations in the past with residents of Arizona.
While a guest in the hotel in Cabo Mar, Jones was walking across the hotel lobby, and slipped and fell on the wet marble floor that had been just washed by the maintenance staff. The staff had placed a “wet floor” sign on the lobby floor on the sidewall of the lobby.
Jones was taken to the nearest Mexican hospital where surgery was necessary to place a pin in his broken leg. Anxious to return home and see his regular doctor, Jones flew out of Mexico shortly after the surgery. He required two plane seats and an ambulance to meet him at various airports. His health insurance would not cover his hospital stay in Mexico, as it was located outside the U.S. When back in Arizona, Jones was unable to work for 8 weeks and required another surgery to remove the pin. He also required several weeks of physical therapy.
1. Jones sued World Hotels, Inc. for negligence to recover damages for his injuries resulting from the fall in the Cabo Mar hotel. Will Jones likely be successful in the negligence lawsuit against World Hotels? Please discuss all the elements of negligence in your answer. Are there any defenses that World Hotels can use to relieve it from liability? Explain.
2. Dan, Fran and Stan want to establish a bike sales and rental shop. Dan and Fran will be actively involved in managing the business operations, and Stan is investing most of the money. The 3 want to use a form of business organization that will give limited liability to each of them. Using THREE of the seven factors as discussed in class (liability, taxation, financing, management, liquidity, formalities, and life of business) discuss what would be the best type of business organization to limit their liability, and why?
3. On May 3, Racer contacted Oscar by writing offer sent registered mail whether he could drive Owner’s one-of-a-kind, specially designed championship racecar in the Miami 500 Race on July 15 for a fee of $2500. Oscar responds in an acceptance sent registered mail on May 5 and received May 10th. On July 1, the racecar was destroyed in an accidental fire in a storage warehouse where the racecar was being stored prior to the race. Owner owns no other racecars, so Oscar considered the contract discharged. Racer claimed that he is still entitled to the $2500 fee because she and Oscar had a valid enforceable contract. First, determine whether there is a valid contract with all necessary elements. Second, if a valid contract exists, consider whether there is an issue with a defense.
4. Sam wrote a letter to Julia’s Lawn Service stating, “I will pay you $600 if you will remove the 3 elm trees from my front lawn not later than September 1.” On August 29, Julia removed the 3 elm trees from Sam’s front lawn. Sam refused to pay Julia; he claimed that they did not form a valid, enforceable contract because Julia did not respond in writing to his letter. Julia sued Sam for breach of contract. Does a valid contract exist? Explain discussing the necessary elements. If so, does Julia have a viable claim to sue for breach?
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