Mason, a resident of Arizona, booked reservations for a vacation at World Hotels
Mason, a resident of Arizona, booked reservations for a vacation at World Hotels, Inc. in Cabo Mar, Mexico. World Hotels is an international hotel chain incorporated in Delaware with hotels in North and South America; World Hotels has no hotels in Arizona but does advertise and book reservations for all its hotels over the internet, in any state. World Hotels has booked reservations in the past with residents of Arizona.
While a guest in the hotel in Cabo Mar, Mason was walking across the hotel lobby, and slipped and fell on the wet marble floor that had been just washed by the maintenance staff. The staff had placed a “wet floor” sign on the lobby floor on the side wall of the lobby.
Mason was taken to the nearest Mexican hospital where surgery was necessary to place a pin in his broken leg. Anxious to return home and see his regular doctor, Mason flew out of Mexico shortly after the surgery. He required two plane seats and an ambulance to meet him at various airports. His health insurance would not cover his hospital stay in Mexico as it was located outside the U.S. When back in Arizona, Mason was unable to work for 8 weeks and required another surgery to remove the pin. He also required several weeks of physical therapy. Mason sued World Hotels, Inc. for negligence to recover damages for his injuries resulting from the fall in the Cabo Mar hotel.
Will Mason likely be successful in the negligence lawsuit against World Hotels? Explain fully why or why not.
2
Racer contracted in writing to drive Owner’s one-of-a-kind, specially designed championship race car in the Miami 500 Race on July 15 for a fee of $2500. On July 1, the race car was destroyed in an accidental fire in a storage warehouse where the race car was being stored prior to the race. Owner owns no other race cars, so Owner considered the contract discharged. Racer claimed that she is still entitled to the $2500 fee because she and Owner had a valid enforceable contract.
Compare and contrast the rights and obligations of Racer and Owner under the contract as of July 1.
3
Mark plans to open a barbeque restaurant. He can either open the business as a sole proprietorship or obtain a franchise for “Smokin’ Hot Bar-B-Q”.
Compare and contrast the advantages and disadvantages of opening the business as a sole proprietorship and as a franchise.
4
Ted was hired by In Flite, Inc. to purchase an airplane on its behalf. Without mentioning that he was making the purchase on behalf of the principal, In Flite, Ted bought a Cessna 310 from Scott. 2 weeks later, In Flite declared bankruptcy and cannot now buy the airplane.
Compare and contrast In Flite’s liability under the contract to purchase the Cessna with Ted’s liability under the contract to purchase the Cessna
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