Devry Laws310 final exam

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Question 1. 1. (TCO 7) Todd and Yolanda Robinson are selling their house. One of reasons they are selling their house is that they have noticed that a large crack is developing in their foundation. Their basement also floods when it rains. They have decided to sell the home themselves and not hire a real estate agent. They are concerned that if a prospective buyer walks through the basement and sees the crack, they will begin asking questions about flooding and then not purchase the house. So, they decided to put a large cabinet in front of the crack in the basement so that it will not be visible when buyers walk through the basement and they tell prospective buyers that the cabinet stays with the house. They receive a favorable offer and sell the home. Two months later there is a heavy rain in their community which caused a bridge to wash out. Three months after this, the Robinsons get a letter from an attorney who represents the buyers. The letter states that the buyers intend to sue the Robinsons.

Were the actions of the Robinsons fraudulent? Was the failure to disclose the crack in the foundation a material fact in the transaction? Identify all elements of fraudulent misrepresentation and whether it applies in this situation. (Points : 50)

Question 2. 2. (TCO 8) Describe a nation’s court jurisdiction over international disputes. (Points : 25)

Question 3. 3. (TCO 5) Define insider trading under Section 10(b) of the Securities and Exchange Act of 1934, and provide an example. You should create your own hypothetical example, and not cite to actual examples such as the Martha Stewart case. (Points : 25)

Question 4. 4. (TCO 4) The Hagues owned a tract of land that they decided to sell. They signed a listing agreement with Harvey Hilgendorf, a licensed real estate broker, which gave Hilgendorf the right to list the property for 12 months. According to the agreement, Hilgendorf would be paid a 6% commission if a bona fide buyer was found during the listing period. Five months later, the Hagues sent Hilgendorf a letter terminating the listing agreement, although Hilgendorf did not agree to the termination. One month later, Hilgendorf presented an offer to the Hagues from a buyer willing to purchase the property at full value. The Hagues ignored the offer and sold it themselves. Hilgendorf sued the Hagues for breach of the agency agreement.

Did the Hagues act ethically? How should the lawsuit be decided? (Points : 50)

Question 5. 5. (TCO 1) The power to regulate business does not rest exclusively with the federal government. States have the power to regulate intrastate commerce – commerce that occurs within their borders. This is also called the state’s police power. Where does the state get its power to regulate commerce within its borders? Provide three examples of a state’s police power and how these examples relate to intrastate commerce. (Points : 25)

Question 6. 6. (TCO 8) The federal government of the United States can enter into a treaty with the country of Uganda that agrees to reduce trade barriers between them. However, the state of Arizona cannot enter into a treaty with the country of Uganda that reduces trade barriers between Arizona and Uganda. Give reasons to explain the scenario. (Points : 25)