First Question:-

 Maximillian Snell is having a very bad Monday at his “pre-owned” car dealership, Maximillian Motors.  Known county-wide for his “eye-catching” (some would say obnoxious) television advertisements (with staged customers proclaiming “Thanks a million, Maximillian!”) Snell is having a difficult time attracting and retaining an effective and reliable sales staff; in fact, not a single salesperson has appeared for work on Monday.  The only employee who does shows up for work that day is his secretary of three years, Daisy Martinez, whose responsibilities include processing “tax, title and tag” paperwork after the sale.

 Business is slow that Monday, with only two “window shoppers” appearing on the lot from 8:00 a.m. to 2:00 p.m.  Famished, and eager to try out the new Italian restaurant down the street, Snell instructs Martinez to tell any prospective customers he will return at 3:30 p.m.

 When Snell returns at 3:30, he asks Martinez whether any potential customers visited the lot in his absence.  Daisy beams with pride, and says “why yes, Max, there was a young couple who came by right after you left.  They wanted to buy that red BMW sedan on the front row, and I knew business was slow, so I went ahead and sold it to them.  The contract is here on my desk.  Aren’t you proud of me?!”

 Curious, Maximillian examines the contract.  It describes the red BMW sedan, and includes the signatures of both purchasers, as well as Daisy’s signature (indicating “Daisy Martinez, for Maximillian Motors.”)  The contract price is $21,000.  Maximillian’s face reddens as he heads for the car inventory purchase price records on his computer.  Computer records reflect that he purchased the car at auction last Wednesday for $28,000, and that his established retail price for the car was $31,000.  When he confronts Daisy with the facts, she bursts into tears, saying “please boss, don’t fire me, I’ve made a terrible mistake!” Daisy is inconsolable, but that is irrelevant to Snell; he is not exactly in the mood for consoling.

 Through her tears, Daisy indicates that the couple will return at 5:30 p.m. to take possession and ownership of the car; they have gone to their bank to retain the $21,000.

 Is Snell legally obligated to sell the car to the couple? Please provide a complete explanation to support your position.

From an ethical standpoint, should the couple agree to pay at least Snell’s cost for the car ($28,000?)

 

Second Question:-

 The law firm of Dewey, Cheatum & Howe, a general partnership, represents 20 plaintiffs in a class-action product liability lawsuit, with trial scheduled to begin Monday of next week.  It will be the biggest trial in the history of the firm, and the partners understand that success will depend, for the most part, on a collaborative effort on the part of all professionals at the firm, including partners, associate attorneys, paralegals, and secretarial staff.  It is the Friday before the trial, and there will be no weekend for those working at Dewey, Cheatum & Howe.

 The partners and the associate attorneys are reviewing depositions in the conference room.  The clock on the wall shows 11:00 p.m.  Partner Dewey turns to a first-year associate, J. Benjamin Fotheringham, and says “Ben, how about going to Donovan’s Delicatessen and picking up a few subs for all of us? Here’s $100.” Donovan’s Delicatessen is a favorite of the firm for “late-night” trial preparation sustenance, and is located approximately two miles away, down Chestnut Avenue.

 Eager to make a positive impression on senior partner Dewey, and ready to escape the “tunnel-vision” brought on by twelve hours of deposition review, Ben heads for his car.  In a rush to complete the “deli run” quickly, Ben accelerates his car to 50 miles per hour.  The posted speed limit on Chestnut Avenue is 35 miles per hour.

 Fidgeting with his compact disc player in order to listen to an audio-recorded deposition, Ben inadvertently crosses the center line and collides with an oncoming automobile operated by Brandi Kernigan.  Ms. Kernigan is severely injured, and experiences $22,000 in medical expenses; her $25,000 Volkswagen is a total loss.  She sues Fotheringham individually, and the law firm partnership of Dewey, Cheatum & Howe.  Kernigan also lists Dewey, Cheatum, and Howe as individual defendants.

 Is the law firm of Dewey, Cheatum & Howe liable for Brandi Kernigan’s injuries? Are Dewey, Cheatum, and Howe individually liable for Kernigan’s injuries?  Please fully explain your answers.