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Souders v. Johnson; Franks v. Kazi; Gibbons v. Chavez (Coursework Sample)

Instructions:

Please answer all of the questions within the following 6 cases correctly. 
47.8, 47.2, 49.6 49.7, 48.3, 48.4
47.8 Ethics When Dr. Arthur M. Edwards died, leaving a will disposing of his property, he left the villa-type condominium in which he lived, its “contents,” and $ 10,000 to his stepson, Ronald W. Souders. Edwards left the residual of his estate to other named legatees. In administering the estate, certain stock certificates, passbook savings accounts, and other bank statements were found in Edwards’s condominium. Souders claimed that these items belonged to him because they were “contents” of the condominium. The other legatees opposed Souders’ claim, alleging that the disputed property was intangible property and not part of the contents of the condominium. The value of the property was as follows: condominium, $ 138,000; furniture in con-dominium, $ 4,000; stocks, $ 377,000; and passbook and other bank accounts, $ 124,000. Who is 124,000. Who is entitled to the stocks and bank accounts? Do you think Souders acted ethically in this case? Souders v. Johnson , 501 So.2d 745, Web
47.2 Mislaid Property Alex Franks was a guest stay-ing at a Comfort Inn in Searcy, Arkansas, while he was working on a highway project. Franks found a bundle of money in plain view in the left part of the left drawer in the dresser in his room. Franks notified the hotel man-ager, who notified the police. The police took custody of the money and discovered that the carefully wrapped bundle contained $ 14,200 in cash—46 $ 100 bills and 480 $ 20 bills. Franks sued to recover the cash. J.K. Kazi, the owner of the hotel, joined the lawsuit, also claim-ing the money. Franks argued that the money was lost property and therefore he, as the finder, was entitled to the money. Kazi argued that the money was mislaid property and that he, as the owner of the premises on which the money was found, was entitled to the money. The trial court held that the money had been mis-laid and awarded the money to Kazi, the hotel owner. Franks appealed. Was the money mislaid or lost prop-erty? Who receives the property? Franks v. Kazi , 88 Ark.App. 243, 197 S.W.3d 5, Web 2004 Ark. App. Lexis 771 (Court of Appeals of Arkansas)
49.6 Tort Liability William Long, d/b/a Hoosier Homes, owned an apartment building in Indianapolis, Indiana. He rented a second-story apartment to Marvin Tardy. Almedia McLayea visited Tardy with her one-month-old nephew, Garfield Dawson. As McLayea was leaving the apartment, she walked down the stairway, carrying Dawson in an infant seat. As she came down four steps to a landing, which led to a flight of 10 stairs, she caught her heel on a stair, slipped, and fell forward. There was no handrail along the stairway (as required by law) by which she could break her fall. Instead, her shoulder struck a window at the landing, the window broke, the rotted screen behind it collapsed, and Daw-son fell through the opening to the ground below. He sustained permanent injuries, including brain damage. Dawson (through his mother) sued the landlord to re-cover damages for negligence. Who wins? Dawson v. Long , 546 N.E.2d 1265, Web 1989 Ind.App. Lexis 1225 (Court of Appeals of Indiana)
49.7 Tort Liability Luis and Barbara Chavez leased a house they owned in Arizona to Michael and Terry Diaz. The lease provided that no pets were to be kept on the premises without prior written approval of the landlords. The Diazes, without the landlords’ consent or knowledge, kept a pit bull and another dog, which was half pit bull and half rottweiler, at the leased premises. Two weeks later, the Diazes’ two dogs escaped from the backyard and attacked and injured Josephine Gibbons. Gibbons sued the landlords for damages. Are the land-lords liable? Are the tenants liable? Gibbons v. Chavez , 160 Ariz. 73, 770 P.2d 377, Web 1988 Ariz.App. Lexis 
48.3 Joint Tenancy Verna M. Chappell owned a piece of real property. Subsequently, Chappell transferred the property to herself and her niece, Bertha M. Stewart, as joint tenants. When Chappell died 16 years later, Chappell’s gross estate was set at $ 28,321, which included the value of the house. Claims, debts, and charges against the estate totaled $ 19,451, which in-cluded a $ 14,040 claim by Lorna M. Rembe for services provided as conservator. The probate assets available to pay the claims and debts came to only $ 1,571 if the real property went to Stewart as the joint tenant. Rembe sued, alleging that the value of the real property should be used to pay off Chappell’s debts and claims. Who wins? Rembe v. Stewart , 387 N.W.2d 313, Web 1986 Iowa Sup. Lexis 1177 (Supreme Court of Iowa) 
48.4 Community Property Daniel T. Yu and his wife, Bernice, owned a house and two lots as community property. Yu entered into an agreement with Arch, Ltd. (Arch), whereby he agreed to exchange these proper-ties for two office buildings owned by Arch. Yu signed the agreement, but his wife did not. At the date set for closing, Arch performed its obligations under the agreement, executed all documents, and was prepared to transfer title to its properties to Yu. Yu, however, refused to perform his obligations under the agree-ment. Evidence showed that the office buildings had decreased in value from $ 800,000 to $ 700,000 from the date of the agreement to the date set for closing. Arch sued Yu to recover damages for breach of con-tract. Who wins? Arch, Ltd. v. Yu , 108 N.M. 67, 766 P.2d 911, Web 1988 N.M Lexis 330 ( Supreme Court of New Mexico)
Copyright | Prentice Hall | Business Law |

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Content:

Cases
Essay
Date
(Name)
(University)
47.8: Souders v. Johnson
With regard to whom the bank accounts, stocks and the passbook are due for, the contention between the claimants arises from the ambiguity of the term "contents’ of the condominium. However, owing to the fact that the passbook, bank accounts, and the stocks refer to property that is separate from and external to the condominium, it is reprehensible for Souders to claim them as part of the condominium. Thus, the phrase "the villa and its contents" can be aptly understood as referring to the condominium, the furniture and all the related addendums but not assets outside the condominium and whose records are stored in the villa. Consequently, by claiming the stocks, bank accounts and the passbook as his, Souders acted unethically since these assets are external to the condominium.[Clarkson, Kenneth, ‎Roger Miller and ‎Frank Cross, Business Law: Text and Cases: Legal, Ethical, Global, and Corporate Environment (Mason, OH: Cengage Learning, 2012).]
47.2: Franks v. Kazi
Mislaid property refers to personal property that is deliberately put away by its holder and then the owner forgets to take it with him upon departure. Conversely, lost property refers to any belonging that is inadvertently left behind by its actual holder. As such, the $14,200 cash bundle was mislaid property since it had been deliberately put away in the drawer by its owner who then forgot to collect it when he was leaving. Accordingly, legal treatment of mislaid property requires that the custody of the item in question be accorded to the person who owns the property on which the money was found and thus, Kazi the proprietor of the hotel where the money was found should receive it.[Libby, Barbara and Vincent Agnello, "Ethical Decision Making and The Law" Journal of Business Ethics 26/3 (2000), 223-232.] [Ibid.]
49.6: Dawson v. Long
While under the common law the renter bears the responsibility of ascertaining the condition of the property prior to agreeing to the rent and thus is liable for any injuries suffered thereafter, under the tort law, the landlord is responsible for keeping safe such common areas of the building as stairways and hallways and is hence liable for any injuries suffered by tenants as a result of negligence of this duty. Consequently, Dawson’s mother is set to win the suit since the landlord had neglected his duty by failing to keep safe common areas of the apartment.[NPC, Landlord’s Tort Liability (2014) , Accessed on 24 November 2014.]
49.7: Gibbons v. Chavez
With regard to the tort liability for the dog bites inflicted on Gibbons, the landlord is liable in that, although he had a rule prohibiting pets, he failed to fully enforce the provision, had the capacity to order the removal of the dogs from his property, and had not taken actions such as electing a proper fence among other actions that could have prevented the incident from happening. The tenant cannot be held liable.[Phillips, Kenneth Morgan, Liability for Bites by Tenants' Dogs (2014) , Accessed on 24 November 2014.]
48.3: Rembe v. Stewart
Joint tenancy automatically occasions the survivorship right which expressly transfers the ownership of the property to the surviving tenant in case one of the tenants dies. As such, Rembe’s prayers that the value of the jointly held property be used to settle Chapell’s claims and debts cannot rightfully granted and hence, Stewart is set to win the case.[William, Hines N., Joint Tenancies in Iowa Today (2012) , Accessed on 24 November 2014.] <...
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