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    The answer to legal issues

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    Each of the following questions presents one or more legal issues. In your answers, state each legal issue succinctly, state the pertinent rule of law and explain how the rule applies. Please provide citing information that's used.

    1. The Chan family stops by Speedy Automatic Car Wash on their way through Arizona to Texas. Over the entrance to the washer is a large sign, "MAKE SURE YOUR WINDOWS ARE CLOSED BEFORE ENTERING". Mrs. Chan either doesn't notice the sign or can't read English and leaves her window open. As the car passes through the washer, Mrs. Chan is doused with a high-pressure spray of car washing detergent. By the time the family reaches Texas, Mrs. Chan is suffering a severe allergic reaction to the detergent and must be hospitalized. She later files suit in Texas Superior Court, claiming Speedy was negligent. What defenses should Speedy's lawyer present to the Texas court and at what points in the proceedings should she present them?

    2. Harry Hapless purchased a PowerMax rotary saw equipped with a blade guard from DIY Warehouse to use in his remodeling business. Harry found that the blade guard slowed him down, so he removed it. While he was cutting a two-by-four, the saw slipped, and Harry was severely injured. Harry sued PowerMax and DIY Warehouse to recover for his injuries, citing the Uniform Commercial Code. What are Harry's best arguments? What are the best defenses for PowerMax and DIY Warehouse? What is the likely outcome of Harry's suit?

    3. Zenith Construction is the general contractor for the Plaza Center project. Nadir Builders is the masonry sub-contractor. Nadir's agreement with Zenith provides for monthly progress payments of $100,000. Nadir signs a supply contract with Southwest Building Supply. Southwest delivers $200,000 worth of bricks, with payment due in sixty days. Zenith makes one of the progress payments but withholds subsequent payments when it learns that Nadir's contractor license has been suspended. After laying all the bricks Southwest delivered but before paying for any of them, Nadir halts work. Southwest sues Zenith for the price of the bricks. Zenith submits an affidavit declaring it has no contract with Southwest and moves for summary judgment. What will the outcome be?

    4. Bob's Book and Burger Bar sells paperback books, sandwiches and beverages near the campus of a large college. "Every one of my people who deals with customers is smart. Every one is a high school graduate. Every one can discuss our selection of paperbacks intelligently," Bob said. "And I believe in promoting from within. So I won't hire anyone who isn't a high school graduate or who can't pass a GED test in English, not even as a dishwasher." In fact, Bob's business philosophy is so successful that he sets new records every year for paperback sales. Several Hispanics and Southeast Asians who applied for kitchen work failed Bob's GED test and hired a lawyer. What are the issues and what will the outcome be?

    5. Using forms he downloaded from the Internet, Fred Fescue incorporates his lawn care business. He and his wife are the sole directors. He capitalizes Fredcorp with his lawn care equipment and his '83 Ford pickup, all of which he values at $50,000. He takes a salary from Fredcorp and charges most of his personal living expenses to the corporation. On the advice of one of his lodge brothers, Fred signs an IOU to Fredcorp whenever he charges personal expenses. On the way home after a long, wet evening at the lodge hall, Fred drives the pickup through the display window of Hank's Haberdashery, causing $20,000 in damages. Hank files suit against Fredcorp, but his attorney learns the corporation's assets - a wrecked pickup, an old riding mower, a leaf blower and $30,000 in IOU's - are virtually worthless, and Fredcorp has no insurance. "I'm afraid suing Fredcorp is a waste of time," the lawyer says. "But Fred's wife drives a brand new Mercedes!" Hank protests. How can Hank recover his losses?

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    Solution Summary

    Referring to the five questions that present one or more legal issues, this solution states each legal issue, the pertinent rule of law and explains how the rule applies.