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Nathan is run over by a car and left lying in the street. Sam, seeing Nathan's helpless state, places him in his car for the purpose of taking him to the hospital. While on the way to the hospital, Sam drops his cell phone on to the floor of his car. Without stopping, Sam looks for the cell phone under his seat causing him to lose control of the car and to drive into a ditch resulting in additional injury to Nathan. Is Sam liable to Nathan?

Led Foot drives his car carelessly into another car driven by Marty. Marty's car contains dynamite, which Led had no way of knowing. The collision causes an explosion which shatters a window of a building half a block away on another street. The flying glass inflicts serious cuts on Sally, who is working at a desk near the window. The explosion seriously injures Marty and also harms Vic, who is walking on the sidewalk near the point of the collision. Toward whom is Led Foot negligent?

Fredericks, a hotel owner, had a dog named "Sport" that he had trained as a watchdog. When Vincent Zarek, a guest at the hotel, leaned over to pet the dog, it bit him. Although Sport had never bitten anyone before, Fredericks was aware of the dog's violent tendencies and, therefore, did not allow it to roam around the hotel alone. Vincent brought an action for injuries sustained when the dog bit him. Is Fredericks' liable for the actions of his dog? Explain.

Two thugs in an alley in Manhattan held up an unidentified man. When the thieves departed with his possessions, the man quickly gave chase. He had almost caught one when the thief managed to force his way into an empty taxicab stopped at a traffic light. The thief pointed his gun at the driver's head and ordered him to drive on. The driver started to follow the directions while closely pursued by a posse of good citizens, but then suddenly jammed on the brakes and jumped to avoid a collision because of a mix-up out of the car to safety. The thief also jumped out, but the car traveled on, injuring Mrs. Cordas and her two children. The Cordases then brought an action for damages, claiming that the cab driver was negligent in jumping to safety and leaving the moving vehicle uncontrolled. Was the cab driver negligent? Explain.

Martha invites John to come to lunch. Martha knows that her private road is dangerous to travel, having been heavily eroded by recent rains. She doesn't warn John of the condition, reasonably believing that he will notice the deep ruts and exercise sufficient care. John's attention, while driving over, is diverted from the road by the screaming of his child, who has been stung by a bee. He fails to notice the condition of the road, hits a rut, and skids into a tree. what are we testing? If John is not contributorily negligent, is Martha liable to John?

Hawkins slipped and fell on a puddle of water just inside of the automatic door to the H.E. Butt Grocery Company's store. The water had been tracked into the store by customers and blown through the door by a strong wind. The store manager was aware of the puddle and had mopped it up several times earlier in the day. Still, no signs had been placed to warn store patrons of the danger. Hawkins brought an action to recover damages for injuries sustained in the fall. Decision?

Vance served liquor while he was an intoxicated patron at a United States Air Force bar. He later injured himself as a result of his intoxication. An Alaska state statute makes it a crime to give or sell liquor to intoxicated persons. Vance has brought an action seeking damages for the injuries he suffered. Could Vance successfully argue that the United States Air Force was negligent per se by its employee's violation of the statute?

Hawkins slipped and fell on a puddle of water just inside of the automatic door to the H.E. Butt Grocery Company's store. The water had been tracked into the store by customers and blown through the door by a strong wind. The store manager was aware of the puddle and had mopped it up several times earlier in the day. Still, no signs had been placed to warn store patrons of the danger. Hawkins brought an action to recover damages for injuries sustained in the fall. Decision?

Timothy keeps a pet Chimpanzee, which is thoroughly tamed and accustomed to playing with its owner's children. The Chimpanzee escapes, despite every precaution to keep it upon its owner's premises. It approaches a group of children. Wanda, the mother of one of the children, erroneously thinking the chimpanzee is about to attack the children, rushes to her child's assistance. In her hurry and excitement, she stumbles and falls, breaking her leg. Can Wanda recover for her personal injuries?

Negligent in failing to give warning of the approach of its train to a crossing, CC Railroad thereby endangers Larry, a blind man who is about to cross. Mildred, a bystander, in a reasonable effort to save Larry rushes onto the track to push Larry out of danger. Although Mildred acts as carefully as possible, she is struck and injured by the train. (a) Can Mildred recover from Larry? (b) Can Mildred recover from CC Railroad?

1. O'Keefe owned a two story which he leased to Brooks. brooks established a hardware store on the first floor, and equipped the second floor as an apartment in which he lived with his wife and children. The two floors were connected by an outside wooden staircase with a handrail. The staircase was in a dilapidated condition at the time Brooks entered into the leasehold agreement with the realty company. When Brooks took possession of the building on October 1st, he notified O'Keefe about the condition of the staircase and insisted that it be repaired. Although O'Keefe orally promised Brooks that he would remedy the condition, he failed to do so. Believing that is would help to attract customers, Brooks had a public pay telephone attached to the outside wall of the building. The telephone, which was manufactured by Eastern Electric, is owned and operated by Diamond Telephone Company. On Thursday, November 25th, the store was closed for Thanksgiving. Norton, who lived two doors, walked to the hardware store to use the telephone. He wanted to call his son and daughter-in-law to wish them a Happy Thanksgiving, but his home phone was out of order. Norton picked up the receiver, inserted twenty cents and then, he received an electrical shock. Although Norton was momentarily stunned, he did not suffer any injuries. Unknown to Norton, a telephone repairman, an employee of Diamond, had incorrectly re-wired the telephone the previous day, causing a short circuit in the telephone mechanism. Later that evening, Brooks and his wife were receiving some friends for a small dinner party. Trixie, one of the guests arrived at 7:00 P.M. and mounted the stairs to the second floor apartment. When she was half way up the stairway, which had not been repaired, it collapsed, seriously injuring Trixie. If Norton institutes a personal injury action for negligence against the Diamond Telephone Co., he will most likely

2. O'Keefe owned a two story which he leased to Brooks. brooks established a hardware store on the first floor, and equipped the second floor as an apartment in which he lived with his wife and children. The two floors were connected by an outside wooden staircase with a handrail. The staircase was in a dilapidated condition at the time Brooks entered into the leasehold agreement with the realty company. When Brooks took possession of the building on October 1st, he notified O'Keefe about the condition of the staircase and insisted that it be repaired. Although O'Keefe orally promised Brooks that he would remedy the condition, he failed to do so. Believing that is would help to attract customers, Brooks had a public pay telephone attached to the outside wall of the building. The telephone, which was manufactured by Eastern Electric, is owned and operated by Diamond Telephone Company. On Thursday, November 25th, the store was closed for Thanksgiving. Norton, who lived two doors, walked to the hardware store to use the telephone. He wanted to call his son and daughter-in-law to wish them a Happy Thanksgiving, but his home phone was out of order. Norton picked up the receiver, inserted twenty cents and then, he received an electrical shock. Although Norton was momentarily stunned, he did not suffer any injuries. Unknown to Norton, a telephone repairman, an employee of Diamond, had incorrectly re-wired the telephone the previous day, causing a short circuit in the telephone mechanism. Later that evening, Brooks and his wife were receiving some friends for a small dinner party. Trixie, one of the guests arrived at 7:00 P.M. and mounted the stairs to the second floor apartment. When she was half way up the stairway, which had not been repaired, it collapsed, seriously injuring Trixie. Which of the following would best describe Norton’s legal status in his utilization of the telephone?

3. O'Keefe owned a two story which he leased to Brooks. brooks established a hardware store on the first floor, and equipped the second floor as an apartment in which he lived with his wife and children. The two floors were connected by an outside wooden staircase with a handrail. The staircase was in a dilapidated condition at the time Brooks entered into the leasehold agreement with the realty company. When Brooks took possession of the building on October 1st, he notified O'Keefe about the condition of the staircase and insisted that it be repaired. Although O'Keefe orally promised Brooks that he would remedy the condition, he failed to do so. Believing that is would help to attract customers, Brooks had a public pay telephone attached to the outside wall of the building. The telephone, which was manufactured by Eastern Electric, is owned and operated by Diamond Telephone Company. On Thursday, November 25th, the store was closed for Thanksgiving. Norton, who lived two doors, walked to the hardware store to use the telephone. He wanted to call his son and daughter-in-law to wish them a Happy Thanksgiving, but his home phone was out of order. Norton picked up the receiver, inserted twenty cents and then, he received an electrical shock. Although Norton was momentarily stunned, he did not suffer any injuries. Unknown to Norton, a telephone repairman, an employee of Diamond, had incorrectly re-wired the telephone the previous day, causing a short circuit in the telephone mechanism. Later that evening, Brooks and his wife were receiving some friends for a small dinner party. Trixie, one of the guests arrived at 7:00 P.M. and mounted the stairs to the second floor apartment. When she was half way up the stairway, which had not been repaired, it collapsed, seriously injuring Trixie. Which of the following would best describe the duty of care owed by Brooks to Trixie?

Earhardt was a certified airline pilot who owned a single engine Cessna plane. One afternoon she invited Cass, her girlfriend, to go flying with her. Cass, who was scared of flying, reluctantly agreed. During the flight, Earhardt decided to play a practical joke and shut off the plane's engine. When the plane went into a nose dive, Earhardt said, "Oh my God, we're going to crash." Cass became panic-stricken and started screaming hysterically. A few seconds later, Earhardt re-started the engine and said, "Don't worry..I was only joking." The plane landed safely and neither person was injured. If Cass brings suit against Earhardt, she will probably

5. Boswell was an anthropology professor at University of South Florida (hereafter referred to as USF). After he was denied tenure, Boswell hired the Association of teachers to represent him in a grievance action against USF. The Teachers Association sent a letter to the university seeking an explanation regarding why Boswell was denied tenure. Dr. Darwin, the USF provost, responded in writing that Boswell "was denied tenure because the university had received reports that he had engaged in sexual relations with students." Dr. Darwin stated truthfully in the letter that the university had, in fact, received several reports accusing Boswell of sexual misconduct involving students. It was later determined that the accusations were false and Boswell did not engage in any sexual liaisons with students. Afterwards, Boswell was granted tenure by the university and did not incur and monetary loss. If Boswell sues Dr. Darwin for libel, he should

Lucy and Lenny Luckenback are married and have three children, Lonnie, Lynnie and Lucky whose ages are six, eight, and ten. In their backyard, the Luckenbacks keep a pet gorilla, named Mookie, who is thoroughly tamed and accustomed to playing with children. Although the Luckenbacks used the highest degree of care to keep Mookie on their property, one day the gorilla escaped and approached a group of youngsters who were playing at a nearby schoolyard. Bertha, the mother of one of the children, erroneously thought that the gorilla was about to attack her daughter and rushed to protect her. In her haste, Bertha stumbled and fell, breaking her leg. If Bertha asserts a claim against the Luckenbacks to recover for her injury, the plaintiff will

Laurie was the owner of Twilight Park, an old dilapidated stadium, that was located on the outskirts of San Francisco Baby Bulls, a professional baseball team for thirty years. However, in 1962 the Baby Bulls franchise moved to Denver and was re-named the Horned Frogs. Since 1962, Twilight Park was left unattended and had deteriorated to such an extent that the walls were in danger of collapsing. On Friday January 13, 1987, an earthquake struck San Francisco and the outlying Bay area. The earthquake, which registered a 6.9 on the Richter scale, effectuated considerable damage in the city of San Francisco and caused Twilight Stadium to collapse. As the stadium crumbled to the ground, a large section of the press box fell on top of a car that was parked nearby. The auto was crushed, causing its gas tank to rupture. As a result, a large quantity of gasoline spilled along the street and flowed downhill. The gasoline collected in front of Cepeda's home, which was located about a mile from the stadium. Two hours after the earthquake struck, Kirkland was walking in front of Cepeda's home smoking a cigarette. When he discarded his lighted cigarette butt in the street, the gasoline exploded. The explosion blew the windows out of Cepeda's home. Cepeda, who was sitting in the living room watching television, was struck, by the flying glass and injured. The damaged automobile was owned by Wagner. At the time Twilight Park collapsed, Wagner's vehicle had been illegally parked in front of a fire hydrant. This was in violation of a local ordinance which prohibited parking within 50 feet of a fire hydrant. If Cepeda asserts a claim for his injuries against Laurie, which of the following is Laurie's best defense

Laurie was the owner of Twilight Park, an old dilapidated stadium, that was located on the outskirts of San Francisco Baby Bulls, a professional baseball team for thirty years. However, in 1962 the Baby Bulls franchise moved to Denver and was re-named the Horned Frogs. Since 1962, Twilight Park was left unattended and had deteriorated to such an extent that the walls were in danger of collapsing. On Friday January 13, 1987, an earthquake struck San Francisco and the outlying Bay area. The earthquake, which registered a 6.9 on the Richter scale, effectuated considerable damage in the city of San Francisco and caused Twilight Stadium to collapse. As the stadium crumbled to the ground, a large section of the press box fell on top of a car that was parked nearby. The auto was crushed, causing its gas tank to rupture. As a result, a large quantity of gasoline spilled along the street and flowed downhill. The gasoline collected in front of Cepeda's home, which was located about a mile from the stadium. Two hours after the earthquake struck, Kirkland was walking in front of Cepeda's home smoking a cigarette. When he discarded his lighted cigarette butt in the street, the gasoline exploded. The explosion blew the windows out of Cepeda's home. Cepeda, who was sitting in the living room watching television, was struck, by the flying glass and injured. The damaged automobile was owned by Wagner. At the time Twilight Park collapsed, Wagner's vehicle had been illegally parked in front of a fire hydrant. This was in violation of a local ordinance which prohibited parking within 50 feet of a fire hydrant. If Cepeda asserts a claim for his injuries against Wagner, which of the following, if true, is Wagner's best defense

Peters was a sports enthusiast who enjoyed playing rugby on the weekends with a group of friends from college. The rugby matches were usually quite competitive and invariably someone would experience a minor injury because of the large degree of physical contact usually associated with the sport. During one Saturday afternoon rugby match, Peters was running to catch the ball when he was pushed down from behind by Dooley. Peters suffered a broken arm and brought suit against Dooley seeking damages. Will Peters prevail?

Rider entered a subway car at the 42nd Street station. Since all of the seats were occupied, Rider stood in the subway car and grabbed a pole to secure his balance. As the subway car was proceeding crosstown, Rider glanced at a voluptuous blonde girl standing next to him. Suddenly, the subway car made an unexpected stop. Rider momentarily lost his balance, and grabbed the blonde girl around the waist (to avoid falling). Once Rider regained his balance, he removed his hands from the girl's waist and grasped the pole again. In a civil action instituted by the blonde girl against Rider, he will most likely be found

Granny Goodridge, aged 72, was riding in an elevator at the Empire State Building in New York City. When the elevator stopped on the fifth floor, Smokey Robinson entered the elevator smoking a "Panama Red" cigar. Smokey was standing in front of Granny on the elevator when granny tapped him on the shoulder. When Smokey turned around, Granny pointed to the "No smoking" sign and said, "Excuse me, sir would you mind putting that cigar out?" Smokey indignantly responded by inhaling heavily on his cigar, and then blowing a big puff of smoke into Granny's face. When the elevator stopped on the next floor, Smokey then departed. If Smokey institutes a civil action against Granny, Smokey will most likely:

Granny Goodridge, aged 72, was riding in an elevator at the Empire State Building in New York City. When the elevator stopped on the fifth floor, Smokey Robinson entered the elevator smoking a "Panama Red" cigar. Smokey was standing in front of Granny on the elevator when granny tapped him on the shoulder. When Smokey turned around, Granny pointed to the "No smoking" sign and said, "Excuse me, sir would you mind putting that cigar out?" Smokey indignantly responded by inhaling heavily on his cigar, and then blowing a big puff of smoke into Granny's face. When the elevator stopped on the next floor, Smokey then departed. In a civil suit brought by Granny against Smokey, the plaintiff will have actions for:

Mohammed is a twenty-six-year-old Iranian graduate student at Culver City College. Byrne, a fellow classmate, knew that Mohammed was a staunch supporter of Ayatollah Khomeini. As Mohammed they were leaving class one afternoon, Byrne walked beside Mohammed and chanted, "Long live the Shah! Long live the Shah!" Mohammed angrily confronted Byrne and said "Let's settle this in a fist fight." Byrne replied. "You're on." The two students went outside and "squared off". Byrne threw the first punch and hit Mohammed in the face with his bare fists. Unknown to Byrne, Mohammed placed a set of brass knuckles on his fists and hit Byrne in the face with brass knuckles. The force of the blow broke Byrne's nose. It was later determined that the use of brass knuckles inflicted exactly the same damage as if Mohammed had hit Byrne with his bare fist. The best argument for rejecting the defense of consent in an action by Byrne for either assault or battery is that

Palsgraph v. Lefkowitz Case Brief

Palsgraf v. Long Island Railroad Co. Case Brief

On April 15, S wrote to B offering to sell a piece of land that S owned for $50,000. The letter, which was signed by S, stated that the offer would expire on July 30. On April 20, S received a better offer from X. S called B and told him that he was withdrawing his offer to B. On April 25, B called S and told him that he was accepting S's offer of April 15. S said that it was too late to accept the offer. In an action by B against S for breach of contract, judgment for whom? Explain.

On May 1, B, a retail wine seller, sent a letter to S offering to buy 50 cases of Chateau Le Pew wine at $100 a case. The letter, which was signed by B, stated that it was a firm offer for 30 days. S received the offer on May 2. By May 10, however, the price of wine was dropping and B wrote to S saying, " I am sorry but I hereby withdraw the offer." S received this letter on May 12. On May 15, S called B and told him that he accepted B's offer of May 1. B claimed that the offer had been withdrawn and refused to accept delivery of the wine. In an action by S against B for breach of contract, judgment for whom? Explain.

On July 1, S, a steel manufacturer, telephoned B and offered to sell B six carloads of steel at $600 a ton. B said, "That's a lot of steel! Would you promise to keep your offer open for 10 days so that I can think about whether I can use that much?" S replied, "Sure. I promise to keep the offer open for 10 days." On July 6, S sent a letter to B that stated, "I hereby revoke my offer of July 1." B received this letter on July 7. On July 8, B called S and said that he was accepting S's offer of July 1. S refused to deliver the steel, claiming that he had validly revoked the offer. In an action by B against S for breach of contract, judgment for whom. Explain?

M offered to sell P a parking lot for $35,000. The offer was in writing and signed by M and provided that any acceptance by P must be within 5 days. On the fourth day, M accepted a better offer from D and transferred the parking lot to D on that day. Unaware of this sale, P telephoned M on the fifth day and accepted M's offer. In an action by P against M for breach of contract, judgment for whom?

Ames, seeking business for his lawn maintenance firm, following notice in the meeting room of the Antlers, a local lodge the members of the Antlers-Special this month. I will resod your lawn for two dollars per square foot using Fairway brand offer expires July 15." The notice also included Ames's name, address, and signature specified that the acceptance was to be in writing. Bates, a member of the Antlers, and Cramer, the janitor, notice and became interested. Bates wrote a letter to Ames would saying he would accept the offer if Ames would use Putting Green brand. Ames received this letter July 14 and wrote to Bates saying he would not use Putting Green sod. Bates received Ames's letter on July 9 and promptly wrote Ames that he would accept Fairway sod. Cramer wrote to Ames on July 10, saying he accepted Ames's offer. By July 15, Ames had found more profitable ventures and refused to resod either lawn at the specified price. Bates and Cramer each brought an appropriate action against Ames for breach of Decisions as to the respective claims of Bates and Cramer?

S, a merchant, wrote to B: "August 1, I offer to sell one Desktop Computer, Model A, price $3,000. This is a firm offer of 30 days from the above date." signed S. On August 10, B received a letter from S: "I hereby revoke my offer of August 1." signed S. On August 17, B wrote to S: "I hereby accept your offer of August 1.” (a) Is there a contract? Explain. (b) Assume that S's offer stated that it was a firm offer four months, and that on November 15, B mailed an acceptance. Is a contract? Explain. (c) Assume that S's offer stated that it was a firm offer for four months, and that on November 14, B received a letter from S, November 12. "I hereby revoke my offer of August 1." On November 15, B mailed an acceptance. Is there a contract? Explain.

On March 1, S sent a signed letter to B and offered to piano in his home to B for $400, and stated that he would keep his offer open for 4 months. On April 1, S sold the piano to T, his cousin for $500, without informing B that he did so. On June 10, B wrote S stating that he accepted S's offer. S immediately notified B that he could not sell him the piano because he had already sold it to T. B sued S for breach of contract. Judgment for whom? Explain.

Alpha Rolling Mill Corporation, by letter dated June 8, offered to sell Brooklyn Railroad Company 2,000 to 5,000 tons of fifty-pow: iron rails upon certain specified terms, adding that, if the offer was accepted, Alpha Corporation would expect to be notified prior to June 20. Brooklyn Company, on June 16, by telegram, referring to Alpha Corporation’s offer of June 8, directed Alpha Corporation to enter for 1,200 tons of fifty-pound iron rails on the terms specified. The same day, June 16, Brooklyn Company, by letter to Corporation, confirmed the telegram. On June 18, Alpha Corporation, by telegram, declined to fill the order. Brooklyn Company, on June 19, telegraphed Alpha Corporation: “Please enter an order for 2,000 tons rails as per your letter of the eighth. Please forward written contract. Reply.” In reply to Brooklyn Company’s repeated inquiries regarding whether the order for 2,000 of rails had been entered, Alpha denied the existence of any contract between Brooklyn Company and itself. Thereafter, Brooklyn Company sued Alpha Corporation for breach of contract. Decision?

On October 1, B received the following letter from S: "I under­stand that you are interested in buying a pick-up truck, 1 will sell you mine for $10,000 all cash, and will have it ready for delivery to you on November 15. (Signed) S". Later that day B telephoned S and inquired: "Can I have 20 days to think over your offer?" S replied: "O.K., you have an irrevocable option for 20 days. Write to me when you decide." On October 6, B wrote S: "I am still very much interested in your offer. I'm a little short of cash at the moment and would like to know you would consider taking $5,000 cash and my 30-day note for the other $5,000? (Signed) B." S did not reply. On October 10, without B's knowledge, S sold and delivered the truck to T for $11,000 cash. On October 15, B wrote S: "I have decided to accept your offer and will pay you $10,000 in cash when I pick up the truck on Nov.15. (Signed) B." S wrote back: "The truck is sold." B sues S for damages for breach of contract. Judgment for whom? Explain.

On May 1, S, a textile manufacturer, mailed to B, a merchant, a written and signed offer to sell 1,000 bolts of blue denim at $40 per bolt. Each bolt would contain 25 square yards. The offer stated "this offer will remain open for 10 days from the above date (May 1) and it will not be withdrawn prior to that date." Two days later, S, noting a sudden increase in the price of blue denim, changed his mind. After making great personal efforts to contact B, S sent B a letter revoking the offer of May 1. The letter was mailed on May 4 and received by B on May 5. B chose to disregard the letter of May 4. Instead, she continued to watch the price of blue denim rise. On May 9, B mailed a letter accepting the original offer. The letter was sent by registered mail and was properly addressed and contained the correct postage. However, it was not received by S until May 12, due to a delay in the mail. B demanded delivery of the goods according to the terms of the offer of May 1, but S has refused, claiming there is no contract (a) Is there a contract? Explain. (b) If S was not a merchant, would there be a contract? Explain.

S, a wholesale fruit dealer, sent the following letter to B, a fruit merchant: "Feb. 1, offer 1,000 boxes of Los Angeles, San Gabriel oranges, at $10.60 per box, EO.B. Los Angeles: March delivery. Unless I receive your acceptance by 2 P.M. on Feb. 4, 1 will dispose of them elsewhere. (Signed S)." S's letter was received by B on Feb. 2, at 3 P.M. At 1 P.M. on Feb. 2, S mailed B the following letter. "I regret to inform you that I am compelled to withdraw my offer dated Feb. 1." S's second letter was not received by B until Feb. 3. Meanwhile at 5 P.M. on Feb. 2, B mailed the following letter to S: "I accept your offer dated Feb. 1. (Signed B)." Because of a severe snowstorm, which disrupted all means of communication, B's letter was not delivered to S until 4 P.M. on Feb. 4. (a) Is there a contract between S and B? Explain. (b) Assume that the words "Unless I receive your acceptance by 2 P.M. on Feb 4, I will dispose of them elsewhere" Were not included in S's Feb. 1 letter to B. Is there a contract between S and B? Explain.

Smith owned five acres of land in Wilton, New York, on which were two springs of mineral water and machinery to bottle the mineral water. Smith sold the real property to Brown for $300,000, representing that the water was natural mineral water and could be bottled or sold as it flowed from the ground. Smith also represented to Brown that the daily natural flow of water from the two springs was 4,200 gallons. Brown entered into possession and purchased and installed modern machinery for the bottling and distribution of the mineral water. He soon discovered that the water was not natural mineral water, but fresh water to which certain chemicals had been added. He also discovered that the daily flow did not exceed 160 gallons. By the the time he discovered these facts, Brown had expended $75,000 for the installation of new machinery. (a) Did Smith commit fraud? Explain. (b) What remedy or remedies, if any, are available to Brown? Explain.

On April 1, Santos, a dealer in mining stocks, sold to Burns, 10,000 shares of Alaska Uranium, Inc., at $5 per share, knowingly misrepresenting that Alaska Uranium, Inc. had proven uranium deposits in its Alaska properties. Burns paid Santos for the stock on April 1. On April 15, on the advice of friends, Burns had the corporation investigated and found that it had never had any prospects of uranium, but that it had just discovered a copper vein on its property and was putting it into production. During the following February. Burns received and deposited a $100 check from Alaska Uranium, Inc. for its one cent per share dividend. One month later, Burns regretted his purchase. (a) In an action by Burns against Santos to disaffirm the contract on the grounds of fraud, judgment for whom? Explain. (b) In an action by Burns against Santos to recover damages based on fraud, judgement for whom? Explain. (c) In an action by Burns against Alaska Uranium, Inc. to recover damages based on fraud, judgment for whom? Explain.

On February 13, Mario purchased an engagement ring from Jolin, a jeweler, for $5,000, relying upon John's rep resentation that the ring was set with a genuine diamond. The next morning, Mario had the ring appraised by a gemologist and learned to his amazement that the center stone was not a genuine diamond, but rather a zircon, a cheap imitation that looked like a diamond bur was worth only $50, and that the entire value of the ring was $200. Nevertheless, the next day, Mario gave the engagement ring to Gina, his fiancée, on Valentine's Day, as he had promised. One month later, Gina terminated her engagement to Mario and returned the ring to him. The following day, Mario decided to rescind his contract with John and to sue John for damages. (a) Does Mario have the right to rescind his contract with John? (b) Does Mario have the right to recover damages be computed? Explain.