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Legal issues: right-of-way across Kay's property; American Manufacturing Company (AMC) what legal relationship is it; Does Barb acquire Ellen's HDC rights in the note;tenants in common;ground(s) Lyle might have to file a successful lawsuit against NCC

1. John owns an orchard behind Kay's house and property. The only access to the orchard is Kay's driveway, which John has used for years to get to his land. John sells the orchard to Lee. Can Lee use the right-of-way across Kay's property? Discuss.

2. American Manufacturing Company (AMC) requires that its employees wear uniforms and protective clothing while on the job, but the employees can't take the uniforms home, and must change at work. AMC provides a locker room for the employees to leave their street clothes and personal items while working. A sign on the back of locker room door states, "American Manufacturing is not responsible for the loss of any property in the locker room." Bob, an AMC employee, changes his clothes in the locker room before starting work and leaves his wallet and watch in a pocket of his jacket hanging in his closed and locked locker. When he returns after his shift, the wallet and watch are gone. Does Bob's leaving personal items in the locker room constitute a bailment? If so, what type of bailment? If not, what legal relationship is it? Does AMC's sign exculpate the company for Bob's loss? Why or why not? Discuss.

3. Barb fraudulently induces Diane to sign a note. Barb sells the note to Ellen, who does not know of the fraud and takes the note for value and in good faith, and thus becomes an HDC. Ellen sells the note to Fred, who sells the note back to Barb. Does Barb acquire Ellen's HDC rights in the note? Discuss.

4. Carl and Donna are not married to each other, but they share ownership rights in a computer network. When they acquired the equipment, they agreed in writing that if one dies, the other inherits his or her interest. Are Carl and Donna community property owners, joint tenants, tenants by the entirety, or tenants in common? Discuss.

5. Lyle buys a motorcycle from Moto Cycle Corporation and finances the purchase through National Credit Company (NCC). Lyle defaults on the loan. NCC sends out two armed men who pick the lock on Lyle's garage and seize possession of the motorcycle while Lyle shouts at them to stop. NCC 's notice to Lyle states that $5,000 is required to redeem the vehicle, which will be sold if it is not redeemed before May 15. The actual redemption amount is $4,000, and the sale is held on May 5. List all of the ground(s) Lyle might have to file a successful lawsuit against NCC? Discuss whether each is likely to be successful.

Solution Preview

1. John owns an orchard behind Kay's house and property. The only access to the orchard is Kay's driveway, which John has used for years to get to his land. John sells the orchard to Lee. Can Lee use the right-of-way across Kay's property? Discuss.

Even though the only passage to John's property is through Kay's driveway, Kay remains the owner of the driveway. However, there are some restrictions on the ownership of real property. Among several restrictions, one of these is that of " public easement and right of way-a portion of the real property may have to be left open for others to use. Easements and right of way are used to allow access to other property, to provide for roads and sidewalks, and to enable electric/gas/telephone/sewer lines to be installed." This is taken from the website: http://real-estate-law.freeadvice.com-- . What this means in other words is that the right that John enjoyed with respect to access to the orchard passes on to Lee, John enjoyed this privilege of right-of-way because of the right provided to him by the law. Since, the property has passed on to Lee, he is entitled to the same privileges. In short, Lee get the right-of-way legally. He can pass over Kay's driveway to access his property.

2. American Manufacturing Company (AMC) requires that its employees wear uniforms and protective clothing while on the job, but the employees can't take the uniforms home, and must change at work. AMC provides a locker room for the employees to leave their street clothes and personal items while working. A sign on the back of locker room door states, "American Manufacturing is not responsible for the loss of any property in the locker room." Bob, an AMC employee, changes his clothes in the locker room before starting work and leaves his wallet and watch in a pocket of his jacket hanging in his closed and locked locker. When he returns after his shift, the wallet and watch are gone. Does Bob's leaving personal items in the locker room constitute a bailment? If so, what type of bailment? If not, what legal relationship is it? Does AMC's sign exculpate the company for Bob's loss? ...

Solution Summary

A paragraph is given discussing the issues for each of the situations.

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