Class 3 Hypo3 - Trump and Chapter House, respectively....

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Class 3: Royal Palm Developments Daisy is not happy about Trump’s offer. She knows Trump will shut down the Royal Palm, and Daisy has spoken to Roger about running Royal Palm after Chapter House completes its acquisition. Roger likes Daisy’s enthusiasm and wants to strike a deal. Trump hears of Daisy’s objection to his bid, but he knows he has Skip on his side and believes he could convince Frank to go with him – after all, money talks. After signing the confidentiality agreement, Chapter House starts its due diligence. Chapter House finds out that Royal Palm owns a warehouse outside of town where it stores empty kegs. Several of Royal Palm’s employees have worked in the warehouse over a number of years. Chapter House discovers that in 2005, asbestos was removed from the roof of the warehouse. Chapter House would like to avoid any potential liability issues in connection with its purchase of Royal Palm. Assignment : Groups A and B represent Royal Palm; Groups C and D represent
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Unformatted text preview: Trump and Chapter House, respectively. Trump and Chapter House ask their lawyers (Groups C and D, respectively) to draft a Letter of Intent that would be best for their respective clients to use and send it to the other side. 1 Frank then asks his lawyers (Group A to respond to Trump/Group C; Group B to respond to Chapter House/Group D) to advise how to respond and, if appropriate, prepare a markup in response. Your clear thinking has made you a sought-after lawyer, however, and you were just too busy to get through more than the first section regarding the form of acquisition. The rest will have to wait for another day. Assume for this exercise that Royal Palm is a Delaware corporation. 1 Note to Groups A and B: if your advice to Trump/Chapter House would be not to propose a letter of intent, please still produce a draft but indicate in your cover letter your position....
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This note was uploaded on 11/28/2009 for the course LAW 7591 at Cornell University (Engineering School).

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