24 - CONTRACTS FINAL EXAM Santa Barbara College of Law...

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CONTRACTS FINAL EXAM Santa Barbara College of Law Instructor: Craig Smith Spring 2004 QUESTION 1 Uncle Huey was the sole owner of the Duckworth Farm. Huey had two brothers, Donald and Daffy, and a sister Daisy. In 1994, a crop failure financially devastated Huey. Donald and his family gave generously of their money, milk, eggs and labor to help Huey reestablish himself. In 1995, Huey told Donald that if Donald and his two sons Dewey and Louis would help him work the farm, Huey would leave the farm to Donald’s two sons, then ages 15 and 16, upon his death. Thereafter, Donald and his sons worked long hours on Huey’s farm without remuneration. Dewey and Louis worked for their uncle on the farm both before and after school. High school sports had to be neglected because farm chores came first. When Dewey told Huey that he wanted to go to college Huey told him to stay on the farm, as the farm would be his and Louis’ when he died. Huey had told others how close he was to his nephews, Dewey and Louis, and how the farm would be theirs after he died. Donald, Dewey and Louis worked the farm until Huey died in 2004. Huey died without ever executing a deed or any other document or writing conveying title to the farm to Dewey or Louis. He also died without leaving a will. Daffy and Daisy are claiming that they, along with Donald, as Huey’s closest next of kin, are the sole owners of the farm. (Assume that the laws of intestate succession will not give the two nephews any interest in the farm.) The nephews have come to you for legal advice. Advise them as to the existence of any legal rules, remedies or theories under which they would be entitled to compel the transfer and ownership of the farm to them instead of their father and aunt and uncle. Discuss fully.
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QUESTION 2 Stooge Computer, Inc., is a manufacturer and retailer of personal computers. Moe went to a Stooge Computer retail store in Los Angeles, California and purchased a personal computer for $1,000.00, for use in his newly established shaving cream pie business. The entirety of the sale transaction consisted of Moe stating to the clerk “I’ll take one of those $1,000.00 models.” Moe paid the price in cash and took the computer back to his shop. When he opened the computer box he found in a plastic bag, which contained the computer battery power cables and instruction manuals, a 5” by 7” inch card that stated: This document contains Stooge Computer's Standard Terms and Conditions. By keeping your Stooge computer system beyond five (5) days after the date of delivery, you accept these Terms and Conditions. DISPUTE RESOLUTION. Any dispute or controversy arising out of or relating to this Agreement or its interpretation shall be settled exclusively and finally by arbitration. The arbitration shall be conducted in accordance with the Rules of Conciliation and Arbitration of the International Chamber of Commerce. The arbitration shall be conducted in Chicago, Illinois, U.S.A. before a sole arbitrator.
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This note was uploaded on 11/05/2009 for the course ECON 769 taught by Professor Larsperner during the Spring '06 term at Foothill College.

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24 - CONTRACTS FINAL EXAM Santa Barbara College of Law...

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