Smith and Roberson’s Business Law
Smith and Roberson’s Business Law
17th Edition
ISBN: 9781337094757
Author: Richard A. Mann, Barry S. Roberts
Publisher: Cengage Learning
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Chapter 13, Problem 3Q
Summary Introduction

Given situation:

This case is relating to the concept of corrupting public officials. Agreements which might affect the public interest by corrupting public officials or impairing the legislative process are not enforceable.

To discuss: The decision in favour of person C.

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Murphy, while a guest at a motel operated by the Betsy-Len Motor Hotel Corporation, sustained injuries from a fall allegedly caused by negligence in maintaining the premises. At that time, Betsy-Len was under a license agreement with Holiday Inns, Inc. The license contained provisions permitting Holiday Inns to regulate the architectural style of the buildings as well as the type and style of the furnishings and equipment. The contract, however, did not grant Holiday Inns the power to control the day-to-day operations of Betsy-Len's motel, to fix customer rates, or to demand a share of the profits. Betsy-Len could hire and fire its employees, determine wages and working conditions, supervise the employee work routine, and discipline its employees. In return, Betsy-Len used the trade name, “Holiday Inns," and paid a fee for use of the license and Holiday Inns's national advertising. Murphy sued Holiday Inns, claiming Betsy-Len was its agent. Is Murphy correct?
Rensselaer Water Company contracted with the city of Rensselaer to provide water to the city for use in homes, public buildings, industry, and fire hydrants. During the term of the contract, a building caught fire. The fire spread to a nearby warehouse and destroyed it and its contents. The water company knew of the fire but failed to supply adequate water pressure at the fire hydrant to extinguish the fire. The warehouse owner sued the water company for failure to fulfill its contract with the city. Can the warehouse owner enforce the contract? Explain.
Jane is an attorney licensed to practice law in California. She performs legal services for John pursuant to a written fee agreement. John fails to pay Jane the balance due Jane for her services. Jane files a lawsuit against John in which she seeks, as plaintiff, to recover the $9,000 she believes John owes her. John retains a lawyer, Waldo, to represent him and pays Waldo $3,000 for his services in defending John against Jane's suit. Six months after filing the suit and getting nowhere in negotiations with Waldo, she calls John directly to try to negotiate a settlement. Jane has now violated a rule of professional conduct because she is not allowed to contact a party who is represented by an attorney, and John is represented by Attorney Waldo. violated a rule of professional conduct because she charged a fee of greater than $1,000 and did not have a written agreement with the client. O not violated any rule of professional conduct based on the facts given. O both a. and b. are…
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