Iowa State University



Hypo’s **some not all**Nelson finds an abandoned cabin next to the Mississippi river. He lives in the abandoned cabin until one day, a construction crew shows up to remove the cabin and build a new resort. What result if Nelson had lived in the cabin for 20 years and treated it as his own?A good case of adverse possessionMonica gives the keys to her 2008 Volvo to her son Maxwell. Is this a gift? What facts do you need to know?Violence? NoHow old is he? 16Is he in high school? YesDoes he live with Monica? YesShe is not giving him a gift she is letting him barrow the carGilbert is about to undergo a triple bypass heart surgery. He has a 15% chance of living. Before undergoing the surgery, he gives 80 acres of farmland to his son Robert. Gilbert survives the surgery. What result?If he thinks he is going to die we have a gift causa mortis If he doesn’t die we give it back Is there anyway Robert gets to keep farmland?Yes, if Gilbert gives a gift inter vivosScott transfers land to Alan making no warranties about claims of ownership besides his ownQuitclaimScott transfers land to Alan making the warranty that no other has a claim against the propertyWarrantyRenaldo wants to purchase the farm of his aging mother. He wants to allow her to live on the farm for her remaining years. How can he accomplish this? Life estate for motherChang Enterprises allows an adjacent store to park its delivery truck on their parking lotLicenseRichardson Incorporated allows an adjacent property owner to drive across its property and treat the property as its ownEasement (indefinite right to use driveway as own, often arises in deed document)Alice and Joseph are left a 50% ownership interest in business property owned by their grandfather Charles. Tenancy in commonQing and Nolan buy a business. They operate the business out of a building which they own together. If one of the two passes away, the other becomes owner of the property. Joint Tenancy w/ right of survivorshipAlice and Joseph are married and own a home together. Tenancy by the entirety (in states that recognize it)Rodney “the salesman”……. Tells a customer that a truck will not have any repair costs, and if it does, the car dealership for which he works will cover the cost of repairsExpress WarrantyAllows a customer to buy a camera which he knows does not work because it is brokenMerchantabilityAllows a customer to buy a computer which Rodney knows will not work for the customer’s intended useFitness for a particular useAnnabelle is an employee at a restaurant. She is paid by the hour. She has no formal employment contract. Is this likely an at-will employment arrangement? YesJulie is a marketing representative with North Company. Her employment contract was originally for one year. She has now been with the company for five years and her original contract was never renegotiated. At-will? Maybe…can argue implied contractNelson has recently been involved in an auto accident. He has a broken leg. Would his broken leg be considered a disability for purposes of the Americans With Disabilities Act?More than likely not, temporary impairmentBernie is an individual and cannot pay his debts. However, he believes if his debts were restructured, he could. What chapter should Bernie choose? 13 (if he thinks he can pay back his debts)Court Cases **vocab terms in bold**Chapter 11Stewart v. JudyFacts:The Stewart’s farmed a 3.1 acre piece of land which they though was a part of their land, they even put a fence around the landThe land turned out to be someone else’s propertyRuling:The Iowa Appellate Court said the Stewarts possessed the land in an hostile, actual, exclusive, open and continuous manner. Significance: Adverse possessionMarriage of HeinzmanFacts:William buys a house and deeds it to himself and his fiancé Beth as joint tenantsBeth moves and sues William claiming they had a common law marriageRuling: The gift of joint tenancy was made in contemplation of marriageBeth is a trustee not a co-ownerSignificance:What constitutes a giftEllish v. Airport Parking Co. Facts:Plaintiff purchases ticket to park her car in the defendant’s parking lot; ticket grants a license to park and contains an exculpatory clause. (relieves that party of all liability) Car disappears. Plaintiff claims defendant had a bailment and was negligent.Ruling:Court said it was not a bailment because plaintiff parked her own car and keys were with her Parking company was not liable because they were not negligentSignificance:What constitutes a bailmentChapter 12Vulcan Metals Co., Inc. v. Simmons Mfg. Co.Facts:Vulcan claims Simmons misrepresented the capabilities of the vacuums as well as whether or not they had been sold before on the open market Ruling: Buyer may have been justified in relying upon the representations regarding prior sales but the buyer could inspect the vacuums so they were not justified in relying upon the representations of SimmonsSignificance: Prohibited Disclosures: FraudDiscount Tobacco City & Lottery v. USA, formerly Commonwealth Brands v. FDAFacts:The Family Smoking Prevention and Tobacco Control Act of 2009 refers to misleading advertising as including speech that “is inherently likely to deceive or where the record indicate that a particular form or method of advertising has in fact been deceptive.”Ruling: Use of certain colors is not deceptive (in this court’s mind)Significance:What falls under the Family Smoking Prevention and Tobacco Control Act of 2009 More Generally, what is prohibited advertisingClemens v. LesnekFacts:House was sold “as is” (caveat emptor)Ruling: Court says an “as is” clause will not preclude a claim for fraudSignificance:There are two exceptions to the principle of caveat emptor under the common lawMust disclose concealed dangers which could be an unreasonable dangerSeller remains liable to 3rd parties for dangerous conditions until buyer has time to remedyChapter 13Torosyan v. Boehringer Ingelheim Pharmaceuticals, Inc. Facts:Mr. Torosyan, a chemist at Boehringer, was wrongfully accused by supervisors of submitting false expense reportsMr. Torosyan was fired without causeRuling: There was an implied-in-fact contract which made this employment not at-willSignificance: You can not fire a for cause employee without cause or reasonGriggs v. Duke Power Co.Facts:Duke Power Co. was intentionally discriminating against African AmericansAfter the passage of the Civil Rights Act of 1964, the company implemented the requirement of a high-school diploma to prevent African Americans from gaining employmentRuling: Supreme Court state the requirement of a diploma was unintentionally discriminating against African American applicantsSignificance: Unintentional DiscriminationChapter 14In re JhaFacts:Mr. Jha filed chapter 13 bankruptcy & the IRS received notice of the filingIRS sends letters of intent to levy on his assets which violated the automatic stayMr. Jha claimed the IRS actions caused him distress to the extent he missed work and had to cancel a family vacationRuling:Court awarded him $20 for extra medication but he did not prove damages regarding lost wages Significance: Automatic stayCommodity Futures Trading Commission v. Weintraub et al.Facts:John Notz, Jr. is appointed as a trustee when Chicago Discount Commodity Brokers (CDCB) files for chapter 7 bankruptcyCDCB’s attorney Weintraub raised the attorney-client privilege when being questioned by the Commodity Futures Trading Commission; Mr. Nortz waives the attorney client privilegeRuling: Mr. Notz had the power to waive the privilegeSignificance:Managers can be stripped of their powers by a bankruptcy court and these powers could be allocated back to the trusteeIn re JohnsonFacts:Debtors purchased land and granted the bank a security interest in the land. Debtors parked a mobile home on the land. Debtors did not make timely payments to the bank for the landBank claimed its security interest had attached to the mobile home because it was real propertyRuling: Bankruptcy court said the mobile home was not permanently affixed to the land and so the bank could not have a security interest in the mobile homeSignificance: Debtors successfully used “real property” in keeping the bank from taking their mobile homeIn re MillerFacts:Miller couple files for bankruptcy. Trustee alleges abuse based uponVoluntary contributions to retirement planPayments on a mortgage for family memberExcessive voluntary withholdings from paycheck for income taxRuling:Court did not find “bad faith” but did find the Miller’s had sufficient income to repay their debtsSignificance:When can someone file for bankruptcyRembert v. Citibank South DakotaFacts: Ms. Rembert has a gambling problem and starts to take out credit cards and a second mortgage to get cash advances Ruling:Bankruptcy court found some of her credit card debt was not dischargeable because she had fraudulent intent when she took out the credit cardsOn appeal the District Court stated gambling is risky venture but since she thought she could win, it was not a fraudulent activity to take out the credit cardsSignificance:What constitutes fraudulent intent in bankruptcy hearingsOhio v. KovacsFacts: State of Ohio obtained an injunction against Mr. Kovacs because he failed to clean up hazardous waste at his businessMr. Kovacs argued the injunction was “debt” or a “liability on a claim” which could be dischargedRuling: Supreme Court stated Mr. Kovacs would owe the state money if he did not clean up the site so he technically owed a “debt” which could be dischargedSignificance: An equitable remedy, such as an injunction, was not eliminated as a debt or claim on liabilityChapter 15Perpetual Real Estate Services, Inc. v. Michaelson Properties, Inc. Facts:The plaintiff (PRES) and defendant corporations (Michaelson Properties) had formed several partnerships. One of these partnerships was sued and the plaintiff paid the judgment. Plaintiff sued the defendant seeking reimbursement for the judgement they paid. The plaintiff also claimed the sole shareholder of Michaelson Properties should be held personally liableRuling: Under Virginia law the corporate veil will only be pierced where a shareholder has used the corporate form to “disguise wrongs, obscure fraud or conceal crime.” Having control of the corporation and using it carry out shareholder objectives is not enough. Significance:Perpetual Real Estate Services asked the court to pierce the corporate veil of Michaelson PropertiesTo “pierce the corporate veil” means to disregard the limited liability status afforded to a shareholder and hold the shareholder(s) personally liableDiamond v. Oreamuno, et al.Facts:Shareholders of Management Assistance, Inc (MAI) filed suit against some of the officers and directors of MAIThe shareholders alleged the defendants sold their stock right before MAI released negative information about the profitability of the company. The defendants knew about the negative information Ruling:Federal securities law had not been violated but the defendants breached their fiduciary duty to the company by using inside informationSignificance:Duties of AgentsPractice Exam Drug testingIs allowed for private employersIs required of all state university employeesIs required at all government agenciesCan happen anytime, anywhereIf Iowa’s minimum wage is $10 per hour and the federal wage is $7.25 an hour, can Iowa State pay students $8.25 per hour?Yes, because ISU is a government entityYes, because federal wage is below wage offeredNo, employees are entitled to state’s minimum wage is more than federal wageNo, ISU must be above the state minimum wageThe Americans with Disabilities Act of 1990 requires?Additional pay for those with a disabilityReduced work hours for those with a disabilityReasonable accommodations for those with a permanent disabilityUnreasonable accommodations for those with a permanent disabilityJane is 67 years old and needs health-insurance. She has a very high level of income. Which of the following programs may help her?MedicareEmployment compensationMedicaidSocial securityThe EEOC generally takes which type of casesDiscriminationAffirmative actionUnemploymentOvertime payGeorge, Mary’s boss, does not like Mary because she is female. George has been making Mary take extra shifts with no extra pay. He makes her come in when she is sick and will not let her have time-off. No other employees receive this treatment. Mary feels like she is being forced to quit. Which of the following concepts describes Mary’s situation if she quits?Gender discriminationReverse discriminationUnintentional discriminationConstructive discriminationWhich of the following statements is true in regards to unemployment compensation?Some states have an unemployment compensation fund, but Iowa does notThe federal government does not maintain one, only some states such as Iowa doCannot be eligible if an employee leaves job without good cause or is firedEmployers and employers contributeAs compared to secured creditors, when are unsecured creditors paid?FirstSecondThirdFourthWhich chapter of the bankruptcy code liquidates an individual debtor’s assets as its primary goal?Chapter 9Chapter 13Chapter 11Chapter 7Which of the following is a court appointed official?DebtorCollectorTrusteeSecured creditorChapter 11 bankruptcy involves which of the followingAdjustment of debt for family farmers/fishermenLiquidation of an individual’s assetsReorganization of debt for corporations onlyReorganization of debt and potential discharge of debtsWhich chapter under bankruptcy law is the only one that can be filed voluntarily by the debtorChapter 9Chapter 13Chapter 11Chapter 7All of the following are an example of exempt property either under federal law or state law, except?JewelryHousehold goodsAll real propertyRifleWhich of the following is a debt that can be discharged?Unsecured debtFines, penalties and taxes due to the governmentStudent loansDebts from purchasing luxury itemsWhen the principal is disclosed, which of the following is true regarding contracts entered into by the agent on the behalf of the principal?The third party is not liableThe agent is not liableThe agent is liableBoth the agent and principal are liableWhat arises when an emergency situation arises and an agent must act without actual authority?Emergency agency powersApparent authorityExpress authorityImplied authorityWhich of the following is true regarding an independent contractor?An independent contractor is an employeeAn independent contractor acts for another but is not under the total control of such personAn independent contractor does not act for another person. He only works for himselfAn independent contractor is under complete control of someone elseA railroad engineer may contract on behalf of his employer for medical care for an injured motorist hit by the train even if he was told he could not. What type of agency is that?Agency by operation of lawAgency by agreementAgency by ratificationAgency by estoppelWhich term is applied to situations where an individual uses a corporation to disguise wrongs, obscure fraud, or conceal crime in a way that a court can justify the assets of the people who own the corporation?Capital stock takeoverRespondeat superiorPiercing the corporate veilVicarious liabilityJohn puts his bike out on the curb to be taken as trash, his bike is nowLost propertyAbandoned propertyMislaid propertyWaste propertyHadacheck v. Sebastian was a case regarding whatEminent domain Fraudulent activitiesPrior appropriation rights doctrineEquitable titleMarty is a ninth-generation farmer. He lives in the house on the land his family started on. What is this called?Life estateAbsolute ownershipLeasehold estateTrustWhat was the topic of the Stewart v. Judy case?Adverse possessionGiftsEasementBill of saleWhich of the following is advertising which misleads a consumer about a material fact?DeceptiveProhibitedUnfairObsceneWhich organization regulates anti-competitive behavior and consumer fraud?Federal Trade CommissionFederal Communications CommissionUS Food and Drug AdministrationFederal Fraud CommissionJudy sees an advertisement that gives a good discount on a limited supply of queen mattresses but when she gets to the store they are out of queen mattresses and the salesmen tries to sell her a King size. What kind of advertisement is this?Online deceptive advertisingBait and switch advertisingPromotion advertisingFishing advertisingBill receives a product he did not order, which act allows him to keep the product without consequence?Postal act of 1900Postal reorganization act of 1970Buyer’s remorse actMailbox act ................
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