The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 17, Problem 7BCP
Summary Introduction
Case summary: Company S LLC. operates an inn H in Arkansas. Company S purchased insurance from company C to cover any future damage. When a gas leaking from a heating element of swimming pool created a havoc in the building, company S filed an insurance claim to C, which it denied and asked federal district court for dispute resolution. Amount in controversy had exceeded
To find: The possibility of the court to exercise jurisdiction of diversity in this case.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Reaction to discussion below:
Melodee Lane Lingerie Co. was a tenant in a building where alarm systems were maintained by the ADT company. When the systems were defective and allowed water into the building, it damaged Melodee’s property; Then Melodee decided to sue ADT and their defense was that the service contract limited the liability to 10% of the annual service charge given to the customers. The limitation can be valid since the ADT company did not provide much liability protection. The ADT company can offer another protection plan to Melodee, which would cover her property but at a higher price rate. This case limitation of liability clauses will be enacted since ADT company was not fully liable for Melodee's property, which only would cover the limited 10%. A limitation of liability clauses contract states that one of the parties is not fully liable for damages in case of a breach. The ADT company is at fault for the malfunctions in their systems they should offer a higher…
Subject: Business Law and Regulations
Topic: Nonstock corporation
ABC Foundation engaged in providing feeding programs to homeless children and giving of food packages to victims of calamities using the funds of the foundation for this purpose. Mr. X, who is a member of the foundation is in a quandary as to whether or not the practice of the foundation in using its funds for the mentioned purposes is valid. He is quite fearful that with recent surge in calamities, it might deplete the resources of the foundation, and therefore, affect his own interest having made a contribution therein. He intends to question this practice of the foundation. Is his intention meritorious?
1. Basic Research LLC advertised its products on television networks owned by Rainbow Media Holdings Inc through an ad agency Icebox Advertising Inc. As Basic’s agent Icebox had express authority to buy ads from Rainbow on Basics behalf, but the authority was limited to buying ad with cash in advance. Despite this limit Rainbow sold ads to Basic through Icebox on credit. Basic paid Icebox for the ads, but Icebox did not pass all of the payments on to Rainbow. Icebox filed for bankruptcy. Can Rainbow recoup the unpaid amounts from Basic? Explain.2. Western Fire truck Inc contracted with Emergency One Inc (EO) to be its exclusive dealer in Wyoming and Colorado through Dec. 2003. James Costello, a Western Salesperson, was authorized to order EO vehicles for hi customers. Without informing Western, Costello emailed EO about Westerns diffuclties obtaining cash to fund its operations. He asked about the viability of Westerns contract and his possible employment with EO. On EO’s…
Chapter 17 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
Knowledge Booster
Similar questions
- 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…arrow_forwardA pediatrician contracted with Oxford Health Plans to provide care for Oxford members at specified rates. The pediatrician later filed suit in state court against Oxford on behalf of himself "and a proposed class of other physicians," alleging that Oxford had not made proper payment to them. Oxford moved to compel arbitration, relying on a contractual clause that provided: "No civil action concerning any dispute ... shall be instituted before any court and all such disputes shall be submitted to final and binding arbitration..." The state court granted Oxford's motion and referred the matter to arbitration. Both parties agreed that the arbitrator should decide whether their contract authorized class arbitration. The arbitrator, relying on the text of the contract, determined that the contract did authorize class arbitration. Oxford then filed a motion in federal court attempting to vacate the arbitrator's decision on the ground that the arbitrator "exceeded his powers" under Section…arrow_forwardGibson v. Manchester City Council (1979) Issue: The issue on appeal was whether the defendant's letter of February 1971 was adequately construed as an offer which Gibson accepted or an invitation to treat. Facts: The defendant City Council had adopted a policy of selling council houses to its tenants. The claimant was a tenant of such a council house, who had applied for details of the house he was renting and applicable mortgage terms, using the printed form designated and supplied by the defendant for this purpose. In February 1971, the city treasurer responded to this application stating, 'The [council] may be preparing to sell you the house at the purchase price…' and providing mortgage details. This letter also stated that it did not amount to a 'firm offer' of a mortgage and invited the claimant to make a formal application using an enclosed form. In March 1971, the claimant returned the completed form to the defendant. Following local elections in May of the same year, control…arrow_forward
- Case: Brandt v. Boston Scientific Corporation and Sarah Bush Lincoln Health Center Facts: Brenda Brandt was admitted to Bush Lincoln Health Center for treatment of urinary incontinence. She had a surgical procedure in which a sling was implanted. The manufacturer, Boston Scientific, recalled the item. Brenda had to have the sling surgically removed. She sued the manufacturer and the designer. In this case, Brandt’s bill from the Health Center reflects that of the $11,174.50 total charge for her surgery. $1,659.50, or 14.9%, was for the sling and its surgical kit. What provision of the UCC did the plaintiff sue under? What was the reasoning and decision of the court hearing the casearrow_forwardDonald Wayne Doyle (Debtor) obtained a guaranteed student loan to enroll in a school for training truck drivers. Due to his impending divorce, Debtor never attended the program. The first monthly installment of approximately $50 to pay the student loan became due. Two weeks later, Debtor filed a voluntary petition for Chapter 7 bankruptcy. Debtor was a 29-year-old man who earned approximately $1,000 per month at an hourly wage of $7.70 as a truck driver, a job that he had held for 10 years. Debtor resided on a farm, where he performed work in lieu of paying rent for his quarters. Debtor was paying monthly payments of $89 on a bank loan for his former wife’s vehicle, $200 for his truck, $40 for health insurance, $28 for car insurance, $120 for gasoline and vehicular maintenance, $400 for groceries and meals, and $25 for telephone charges. In addition, a state court had ordered Debtor to pay $300 per month to support his children, ages 4 and 5. Debtor’s parents were assisting him by…arrow_forward88. when may an agent in Florida write controlled business If writing an amount of similar business equal to or greater than If writing an amount of similar business of at least twice the amount of controlled business If accepting no commissions on the controlled business If not advertising to the general public as an insurance agentarrow_forward
- Tiana, a citizen of Mississippi, was injured by humidifier made by Humidor, Inc. Humidor is incorporated in Delaware and has its principal place of business in Silver Springs, Maryland. By the time all of the medical bills, lost work, and other injuries accumulated, the total was $90,000. All of Tiana’s damages would fall under Mississippi or Maryland state law causes of action.In what courts can Tiana sue Humidor?• Where should Tiana sue?arrow_forwardH. J., Inc., and other customers of Northwestern Bell Corp. alleged that Northwestern Bell had furnished cash and tickets for air travel, plays, and sporting events and had offered employment to members of the Minnesota Public Utilities Commission in exchange for favorable treatment in rate cases before the commission. A Minnesota statute makes it a felony to bribe public officials. H. J. and other customers brought suit against Northwestern for violating the criminal bribery statute. Can the customers bring a criminal action? [H. J., Inc. v. Northwestern Bell Corp., 420 N.W.2d 673 (Minn. App.)] Baker and others entered a Wal-Mart store shortly after 3:00 a.m. by cutting through the metal door with an acetylene torch. They had moved some of the merchandise in the store to the rear door, but the police arrived before the merchandise could be taken from the store. Baker was prosecuted for larceny. He raised the defense that he was not guilty of larceny because no merchandise had ever…arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
BUSN 11 Introduction to Business Student EditionBusinessISBN:9781337407137Author:KellyPublisher:Cengage Learning
Essentials of Business Communication (MindTap Cou...BusinessISBN:9781337386494Author:Mary Ellen Guffey, Dana LoewyPublisher:Cengage Learning
Accounting Information Systems (14th Edition)BusinessISBN:9780134474021Author:Marshall B. Romney, Paul J. SteinbartPublisher:PEARSON
International Business: Competing in the Global M...BusinessISBN:9781259929441Author:Charles W. L. Hill Dr, G. Tomas M. HultPublisher:McGraw-Hill Education
BUSN 11 Introduction to Business Student Edition
Business
ISBN:9781337407137
Author:Kelly
Publisher:Cengage Learning
Essentials of Business Communication (MindTap Cou...
Business
ISBN:9781337386494
Author:Mary Ellen Guffey, Dana Loewy
Publisher:Cengage Learning
Accounting Information Systems (14th Edition)
Business
ISBN:9780134474021
Author:Marshall B. Romney, Paul J. Steinbart
Publisher:PEARSON
International Business: Competing in the Global M...
Business
ISBN:9781259929441
Author:Charles W. L. Hill Dr, G. Tomas M. Hult
Publisher:McGraw-Hill Education