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UMUC BMGT380 final exam fall 2014

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Question;UMUC BMGT380 final exam fall 2014CASE ONE ? Worth 25 PointsInstructions;Please read the Case One Background Facts carefully then answer the;corresponding multiple choice, short answer and essay questions below.Case One ? Background Facts:Charlie;Jones, a fireman for Boulder County, Colorado, saw an ad for the;vacation of his dreams in the local, ?Boulder County Gazette.? The ad;read, ?Seven days at the wonderful luxury Windell resort, ?Cabo Mar,?;$1200 per person, all inclusive.? The ad featured a picture of the front;of the hotel with a person receiving a massage by the pool superimposed;over the hotel fa?ade. The ad went on to say how the hotel was located;on the beach at Cabo San Lucas, Mexico and in a wonderful tropical;setting. The ad also listed the name of a local travel agency;Jennifer?s Tours, for booking purposes. In miniscule print at the bottom;of the ad, blending with the pattern of the iron railing, the ad went;on to make a short disclaimer to the effect that the amenities featured;were not necessarily those provided. Jones knew Jennifer Hooley, the;owner of the agency. Anxious for some time off in a warm climate, Jones;decided to Google the hotel name to verify that it was indeed a Windell;hotel as he knew Windell to be a reputable company. From Google, Jones;was able to confirm that the, ?Cabo Mar,? was owned by Windell, he also;noticed that the same picture appeared on this website as he had first;seen in the newspaper. The site also showed pictures of what seemed to;be spacious, well-appointed rooms with queen sized beds. Excited by what;he saw, Jones called Jennifer?s Tours and booked the special he saw in;the newspaper ad.Upon;arrival, Jones found that, while the hotel?s exterior looked like the;pictures he saw, the hotel was located mostly in the town of ?Cabo? with;only a very small portion of the hotel facing beachfront. His room was;smaller than on the website and had only a twin bed. Jones was told that;if he wanted a bigger room he would have to pay an upgrade fee of $500;for the seven days. He paid the $500 because as a typical fireman, he;was a tall, big man and needed more space to sleep. As the trip went on;Jones became increasingly uncomfortable with the, ?not included,? fees;that were mounting up, but when he went to check out on the seventh day;he found that he was being charged for seven lunches. Furious with how;the company had treated him, Jones stormed across the lobby to the;manager?s office, but before he could get there, he slipped and fell on;the wet marble floor having been just washed by the maintenance staff.;The staff had placed a ?wet? sign on the floor, but it was hidden from;plain view behind a large leather chair.Jones;was taken to the nearest hospital where it was determined that surgery;was necessary to place a pin in his broken ankle. Anxious to return home;and leery of the Mexican hospital, Jones flew out of Mexico immediately;after the surgery. He required two plane seats and an ambulance to meet;him at the various airports. His health insurance would not cover his;hospital stay in Mexico as it was outside the U.S. When back in Boulder;Jones was not able to work for twelve weeks and required another;surgery to remove the pin as well as several weeks of therapy. In;addition, Jones received his credit card bill with a thousand dollars;?additional charges,? that had been added during his stay at the, ?Cabo;Mar.?Jones;comes to you to consult about his options in this whole affair. He;wants to sue for $575,000 to recover on the medical expenses, the cost;of the trip (which, with the additional charges amounts to $2200), his;lost wages, and pain and suffering resulting from the injury.In your research of the situation, you discover the following additional information:1.;Jennifer?s Tours is a sole proprietorship owned by Jennifer Hooley. At;age 18, Jennifer took over the business from her mother, also named;Jennifer Hooley. Just prior to reaching the age of 18, Jennifer had;booked Jones? tour. Jennifer Tours has an exclusive sales contract with;Windell Travel, Inc. Jennifer Tours placed the ad in the Boulder;Gazette. Similar ads were placed by Jennifer Tours in various newspapers;around Colorado as well as on Jennifer?s Tours? company web site.2.;Both Windell Hotels, Inc. and Windell Travel, Inc. are corporations;registered and headquartered in Delaware. Windell Travel has no offices;and no hotels in Colorado. It does have an exclusive agency contract;with Jennifer Tours. Windell Hotels, Inc. owns and operates the Cabo Mar;Hotel.__________________________________________________________________Case One ? Multiple Choice: 2 points each (10pts. Total)Instructions;Select the best answer and give a two-to-three sentence explanation as;to why you believe it is the correct choice.1.;Jones wants to sue Jennifer Tours, Windell Hotels, Inc, and Windell;Travel, Inc together in Federal court for his injuries as a result of;the fall. Can he do so?a) Yes, because Federal Court has jurisdiction over citizens of different states.b) No, because Federal Court does not have jurisdiction in cases that do not involve federal laws.c);Yes, because the Federal Court has jurisdiction over citizens of;different states and the suit involves monies greater than $75,000.d) No, because the Federal Court has no jurisdiction over an accident that occurred in Mexico.2.;It would be easier for Jones to bring suit in Colorado State court, but;he wonders if the court can get the Windell Hotel and Travel companies;to come to Colorado. Can the court bring the defendants to Colorado?a) No, because the subject of the suit took place in a foreign country.b) No, because the corporations do not have sufficient contact with the state to allow the court to use the long arm statute.c) Yes, because the Plaintiff is a citizen of Colorado and it is his suit.d);Yes, because the corporations have sufficient minimum contact with the;state to justify the court?s use of the long arm statute.3.;Windell Travel and Windell Hotel?s both claim that they did not have a;contract with Jennifer because she was a minor at the time of her;dealings with Jones and that they are therefore not responsible to;Jones. The contract was void. Jones can refute this argument because:a) the fact that Jennifer was only days away from becoming an adult negates her minor status.b) being a minor doesn?t affect her agency relationship with Windell.c) the privilege to renounce the contract lies with the minor.d) both b and c4.;Jones wants to sue Jennifer?s mother personally because she has all the;family money. Jennifer Hooley, the mother, says that she isn?t;responsible because she doesn?t own the company anymore. Will Jennifer;Hooley, the mother, win?a);Yes, because Jennifer Travels is a sole proprietorship and if she;doesn?t own it anymore. She isn?t personally responsible for its;liabilities.b) No, because she owned the business at the time of the contract with Jones.c) No, because Jones knew her as the owner.d) both b and c5.;Jones wants to get his money back for the trip including the additional;charges for those items not included in his ?all inclusive? vacation.;Under what contract theory or theories will Jones prevail in his suit?a);The advertisement and website created an express warranty that the trip;would include all expenses, three meals a day, and a room with a queen;bed.b) Jones entered into the contract based on a mistake of material fact which the hotel knew to be untrue.c) Under the UCC written disclaimers must be conspicuously displayed to be valid.d) All of the above________________________________________________________________Case One - SHORT ANSWER: 5 pointsInstructions: In six to eight sentences, please answer the following question:Which;contract law will the court most likely apply in making a decision in;Jones? attempt to recoup his trip costs, common law or the UCC and how;will it affect the remedies he can obtain? ExplainCase One - ESSAY: Worth 10 pointsInstructions;Frame a complete definition of the legal question asked and explain how;the law applies to the facts. Suggested length is two to three;paragraphs.Jones;brings suit against all the defendants, Windell Travel, Windell Hotel;and Jennifer Travels for Negligence. Explain the theory, the elements;and how it would apply to Jones? case. Will Jones be successful against;all the defendants? Explain. Be sure to include any and all defenses if;any that may lie in your discussion.CASE TWO ? Worth 25 PointsInstructions;Please read the Case Two Background Facts carefully then answer the;corresponding multiple choice, short answer and essay questions below.Case Two ? Background Facts:Joan;and Don own ?Hot Diggety Dogs,? (HDD) a vending cart business, which;sells gourmet hot dogs on the Streets of Richmond, Virginia. The;partners operate four hotdog carts scattered at various points in the;downtown area close to the office and retail shops. They have a vendor?s;license from the City to operate their business. HDD is very;successful. Their best selling gourmet dog, ?The French Doogle,? is so;popular that it was the subject of a Food Network, ?Show Down? with Iron;Chef, Bobby Flay. The, ?French Doogle,? won the competition. Joan and;Don are understandably, very proud of their products.Currently;the partnership has no formal agreement that outlines profit;distribution, managerial responsibilities, and liabilities of the;parties. Joan and Don want to expand the business. The have agreed to;expand the cart business to include four new carts in the city and a;kiosk in the mall. They also decide to franchise the cart business;around the state. Joan has agreed to the expansion only if they bring in;a new partner, with money, for the express purpose of getting the;franchise contracts. Jack, one of Joan?s friends, has agreed to become a;partner for the time it takes to set up the franchise business. Jack;offers to contribute $50,000 to the partnership with the understanding;that he will double his money by the end of the 1st twelve months of;continuous operation of the four new carts in the city, the kiosk in the;mall, and no less than 10 additional franchises around the state. No;written agreement was made between the partners.Every;year The Women?s League sponsors an old fashioned Fourth of July;Festival. It begins on the second of July and culminates with the;fireworks display on July 4th. The proceeds of the festival are given to;the local children?s hospital. The three day festival is a big money;maker for HDD because of all the activity in the downtown area leading;up to the festival and because of the large number of people who come to;the festival. It comprises almost 25% of their annual income.;Historically, HDD has had their usual four carts around the city during;the festival. This income goes to HDD.HDD;also sponsors one cart during the festival which is located in the;festival area, itself. The proceeds from this cart go the festival;sponsors. This year, the sponsors anticipate an increased attendance of;15%. Joan and Don are excited about this, and hope that they can use the;additional funds to help fund their business expansion.One;month before the Festival, Joan and Don received a mailed notice from;the City of Richmond informing them that, due to a new City Ordinance;brought about because of excessive traffic flow, licensed street vendors;would no longer be able to set up in the immediate downtown area of;Richmond. The city passed the ordinance at the last city council meeting;without prior notice of any kind. The ordinance was written to go into;effect on the 1st of July. Vendors could only sell their wares in a;concentric circle some 15 blocks from the main street of Richmond. Not;only would all the street vendors be more or less together, but the;proposed area has very little foot traffic and customers. Failure to;abide by the law would result in the loss of a vendor?s license for ten;days and a five thousand dollar fine.The;HDD partners were angry and devastated. If this law were allowed to;stand, they could no longer do business in the downtown area, they could;not participate in the Festival, and their expansion plans would go up;in smoke. Worse yet, in anticipation of the Festival, Joan and David;ordered and made payment on thirty thousand hot dogs, thirty thousand;buns of various types, and condiments from Salvo Food Distributors;their usual supplier. After much discussion, Joan and Don decide that;they were going to set up for the festival as usual and take the chance;of getting a fine and suspension. Joan and Don make this decision;because they think it will be cheaper to pay the fine and lose the;ability to do business for ten days than to do business on the city?s;terms. The serious financial pressure from having already prepaid Salvo;for the hot dogs, condiments, buns, etc. has added real urgency to their;decision to pursue business as usual.From;their point of view, it means that HDD can live to fight another day.;Joan and Don agreed to this course of action without asking Jack who was;not around.July;first arrives, and HDD set up for the Festival. Business at the;Festival was going great. The money was pouring in and all the carts are;really busy. People having seen the Show Down show were anxious to try;the French Doodle. One customer was so excited that he raced to the;cart, tripped over a nearby box of hotdogs which caused him to fall into;the steaming water, seriously burning his arm and that of the young;women manning the cart. Both sue HDD. The suits total $60,000. Moreover;in the midst of the accident, the police arrive. HDD receives a summons;and ticket for violation of the new city ordinance. HDD was given a;ticket on each remaining day of the festival.As;if this were not enough, three thousand of the buns delivered by Salvo;Food on the second of July contained mold. This was not discovered until;the final day of the festival. Once discovered HDD was forced to close;two of their carts completely before the end of the festival. Joan and;Don estimate they lost four thousand five hundred dollars of business.In;addition, while Joan and Don where busy with the festival happenings.;Jack, signed three new HDD franchise contracts, and took deposits;totaling fifty thousand dollars. Upon his arrival back in Richmond he;finds out the problems with the festival and wants out of the;partnership. He feels his partners did not include him in their;decision-making and that he should not have to pay for their mistakes.;He does inform them of the franchise agreements. However, he also;informs them that he is leaving with the fifty thousand dollars he;collected from the companies, because it is the same amount he put in to;the business.Joan and Don look to you for advice. They have come with the following list of questions for you to answer:CASE TWO - MULTIPLE CHOICE: 2pts each (10pts. Total)Instructions: Select the correct answer and give a two-to-three sentence explanation as to why you believe it is correct.1. If the law suits are successful against HDD will Jack have to pay too?a. No, because he didn?t get to vote on the decision to participate in the festival.b. No, because no one knew that he had become a partner.c. Yes, only to the extent of his fifty thousand dollar contribution.d.;Yes, because an incoming partner is personally liable for debts and;obligations incurred by the partnership after becoming a partner.2. Does the fact that there is no written partnership agreement for HDD mean that no partnership exists?a. No, a partnership may be oral or written.b. No, a partnership can be implied by the actions of the party toward others.c. Yes, because no one on the outside can tell if they are partners or not.d. Both a and b3.;If the law suits are successful, and if HDD does not have enough money;to pay for what has been ordered, do the partners have to personally pay;the difference?a.;No, because the partnership is considered a person in the eyes of the;law and the partners are not personally liable for what the partnership;does.b. Yes, partners are both jointly and severally liable for torts against third parties.c. Yes, they will each be equally liable for torts against third parties.d. Yes, because partners are jointly liable for debts of the partnership.4.;Joan and Don feel that they should not be responsible for the;customer?s damages, because they told all HDD employees never to leave;the hotdog boxes lying around the cart. Will this fact get them off the;hook?a. No, because as an agent of HDD the employee?s actions are deemed their actions.b. No, because the act was committed within the scope of employment.c. Yes, because the employee was acting outside the scope of employment by not adhering to the rules.d. Both a and b5.;Joan and Don do not want to continue with the Franchise business with;Jack gone. Is it possible for them to get out of the contracts by;claiming they did not know Jack was making them?a. Yes, because they can show how busy they were at the Festival.b. Yes, because they can show that they did not authorize Jack to make the contracts.c. No, because partners are agents of each other and the partnership.d. No, because contracts entered into on behalf of the partnership are binding on the partnership.CASE TWO - SHORT ANSWER: 5 pointsInstructions: In six to eight sentences explain your answers to the following questions.6.;Joan and Don are also concerned about their contract with Salvo Foods.;They would like to know if they can get reimbursed for the forty-five;hundred dollars of business they lost and the money they paid Salvo for;the buns and delivery. Under the UCC explain two of the best warranty;theories that would help HDD to recover there losses.CASE TWO - Essay: 10 pointsInstructions;Frame a complete definition of the legal question asked and explain how;the law applies to the facts. Suggested length is two to three;paragraphs.7.;Joan and Don still have a very major concern left to ask you about.;They can not continue doing business without a repeal of the city;ordinance which has caused them to receive several citations from the;city of Richmond. They want to fight the City and go to court with the;citations. They feel that the ordinance is in violation of the;constitutional right to do business and they were not even given a;chance to protest the law. Do you agree? Define the constitutional law;theory that would help Joan and Don to defeat the law and its;application to their business. Make sure that you are complete in your;analysis by incorporating any tests or defenses that may apply.______________________________________CASE THREE ? Worth 50 Points Total(25 points Part One/25 points Part Two)Instructions;Note- Case Three contains two parts with its own corresponding;questions and separate point values. Please read the Case Three;Background Facts carefully then answer the corresponding multiple;choice, short answer and essay questions below.CASE THREE- BACKGOUND FACTS:Darren;Troll, CEO of Cash Cow Incorporated (CCI) brought CCI?s two Vice;Presidents, John Quick and Dirk Driven, into his office to unveil his;new plan for a CCI amusement park, called FUN-A-MANIA-USA (FAMUSA). It;was to be located outside Washington D.C. and its design was to be based;on the design of D.C., itself. He had pitched his idea to the Board of;Directors, but it was not approved. However, Troll was confident that;the project would be a cash cow. He felt sure that once the Board saw;the project succeed, they would approve the 3.7 million dollar;expenditure.In;Troll?s mind, the key was to get the project up and running before the;next Board meeting some 11 months down the road. He assigns each VP;tasks and tells them that this is their number one priority. John Quick;known for his fast work, is first up. He is assigned the task of;finding the money to support the project from CCI?s budget and to set up;accounts for a new separate corporation named Fun-A-Mania-USA, Inc.;Quick is also expected to set up the corporation. Troll tells Quick that;he has until the next day, Friday, to get the money and accounts in;place. Troll emphasizes to Quick and Driven that everything has to be in;the name of the new company because he doesn?t want the Board to get;wind of things until they are all in place. ?Think of it as a surprise;gift for them,? he said. Troll then turned to Quick and said, ?Your job;is to find the site, buy the land, and construct the amusement park. You;have 10 months to get the job done.? Both men roll their eyes as they;leave the office. The deadline is impossible.PART ONE:Back;in his office, John Quick gets to work. John decides that his first;priority is to find the funding for the project. After careful review of;the CCI budget, John decided that there are two ways he can raise the;money for the project quickly. The first way is to sell the 2.8 million;dollar corporate apartment in San Francisco. Overlooking the Golden Gate;Bridge, this apartment should be very easily sold, even in today?s;market. In fact, he thinks he knows the perfect person, Jack Yono. Yono;had called Quick only the last week and asked if Yono knew a place in SF;for sale, as Yono was being transferred from Japan to the Bay area by;his company. Quick feels certain that Yono can afford the apartment and;knows that Yono can save real estate broker-fees if the sale is direct;to Yono. He picks up the phone and called Yono who was more than;delighted to get the apartment for 2.8 million. He would wire him half;of the money as a deposit this afternoon, and pay the rest when he got;the contract of sale and Deed. It would be a cash transaction. John told;him the documents would come via e-mail this afternoon after the;deposit wire had been received. He could close the deal by tomorrow.;Everyone was pleased when they hung up the phones. Quick called the bank;and arranged to set up a new account in the FAMUSA name.The;second part of John?s plan was to fire two upper management people, Joe;Jolly and Jill Jackal. Joe was the Director of Sales and Dirk Driven?s;gopher. The sales figures were down this year and this would be a;perfect excuse to let him go. CCI could save $450,000 dollars by letting;him go and promoting his immediate underling with a salary bonus of;only $100,000. John wanted to make sure first that CCI wouldn?t have any;problems with his employment contract. He pulled Joe?s file and found;that he was correct in surmising that he had signed one of the old;contracts. He was bound to a six year covenant not to compete even if he;was fired. Furthermore, all disputes with the contract were to be;handled through arbitration at Jolly?s expense unless Jolly won. John;was sure that wouldn?t happen because CCI would get to pick the person.;John decided if he let him go with two weeks notice and severance pay;that would be enough to prevent any problems. What John forgot to check;because it wasn?t in the new contracts, was the clause on dismissal of;the employee. It provided that when the employee was dismissed without;thirty days notice and severance pay, any disputes would revert to the;Court system for resolution.Jill;Jackal, though, was another matter. She had negotiated her own contract;and was sharp and talented. Her, ?Cow Time,? cartoon is a real hit. It;brings millions to the company each month. Dealing with her would prove a;headache for sure. Quick needed her $500,000 salary. Fortunately, for;him, Jill entered his office at the moment and informed him that she was;resigning her position as Creative Director. She was giving her two;weeks notice. She also said that she wanted the $100,000 per month ?Cow;Time? royalty checks that Troll had promised her last month. The royalty;checks were to begin that same month and continue as long as, ?Cow;Time,? was used by CCI. Quick wanted to laugh. Troll was always making;promises like that to people, but he never paid. He said nothing. At;least he no longer had to fire her.John;had one last thing to do before he could go home for the day. He had to;get the corporation for FAMUSA formed. Normally, he would have gotten;legal to handle this, but they had gone home for the evening. He would;just take one of the corporate books from the shelf and scan the;documents into the computer. He would edit the existing name and put;Fun-A-Mania-USA in its place. He names Troll, Driven and himself the;shareholders and Board of Directors with the thought that this could be;changed later to CII when the Board approves the park plan. He had;accomplished the job Troll gave him in one day.The;Board of Directors, now very much aware of FAMUSA plan, and not too;happy, come to you for advice. They want your legal opinion on the;following questions.CASE THREE - MULTIPLE CHOICE (Part 1): 2 pts each (10 pts Total)Instructions: select the best answer and give a two-to-three sentence explanation as to why you believe it is correct.1. Can Troll justify his action to start the amusement park project by asserting the best business judgment rule?a. Yes, because Troll had diligently researched the project and in good faith felt it to be in the best interest of the company.b. Yes, because he exercised his judgment in believing that other CEO?s like him would also make the same judgment that he did.c. No, because he failed to use care and diligence in executing his plan.d.;No, because he failed to use care, and failed to do so in a manner that;a prudent person would believe to be in the best interest of the;company.2. Will the company be able to rescind John?s sale of the condo to Yono?a. Yes, because John acted outside the scope of his employment by selling the condo to a friend.b.;Yes, because Yono knew the condo was titled in the name of CCI not;FAMUSA and that the proceeds of the sale were to go FAMUSA account.c. No, because Yono had no reason to believe that the FAMUSA account was not owned by CCI.d.;No, because as Vice President, of CCI John had the implied, apparent;authority to act as agent of CCI and bind CCI to the sales contract.;Where the money went was irrelevant.3.;Joe Jolly has brought a suit in the state court against CCI to have the;employment contract held void because he claims the contract was;against public policy. The board wants to know if they can force him;into arbitration as is stated in his contract.a. Yes, because the terms of the contract call for arbitration to settle disputes.b. Yes, because the courts will not hear contract cases when a contract calls for arbitration.c. No, because the Federal Arbitration Act will permit court suits in cases where equity or legal grounds exist to revoke them.d.;No, because the terms of the contract, itself, allow him to bring the;suit in the Court system as John did not give him thirty days notice.4. Assuming that Jolly gets to keep the suit in the Court System, under what legal theory is he most likely to win his case.a. It is an adhesion contract, which, by definition, is a contract whose terms he was unable to negotiate.b.;It is an unconscionable contract because CCI used their dominant;position to impose an unfair, ?covenant not to compete,? clause and;Jolly had no other job alternative at the time.c. It is against public policy because the covenant not to compete is so long it approaches slavery.d. It is an adhesion contract, but its terms are so unfair that the court could use its equity power to make it fair.5. Jill Jackal has also filed suit against CCI as she has not yet received her promised royalty checks. Will Jill win?a.;No, because the oral agreement between Troll and Jackal cannot be heard;by the court as it is not an exception to the parole evidenceb. No, because even if the Court heard the evidence, the oral agreement is not supported by any consideration.c. Yes, because the cartoon was her creation and CCI should have to pay her for her ideas.d. Yes, because her employment contract was amended by Troll when he verbally agreed to pay the royalty premium.CASE THREE - SHORT ANSWER (Part 1): 5 pointsInstructions: In six to eight sentences explain your answers to the following questions:Can the Board sue Troll and John for negligence?If so, why?If not, why not?CASE THREE ? ESSAY (Part 1): 10 pointsInstructions;Frame a complete definition of the legal question asked and explain how;the law applies to the facts. Suggested length is two to three;paragraphs.(1);Is FAMUSA a viable corporate entity in the eyes of the law? Explain. Be;sure to include in your answer a discussion of the nature of a;corporation.CASE THREE ? BACKGROUND FACTS - Part Two:Upon;leaving Troll?s office, Driven does not bother to go to his office. He;knows that to get his job done within 10 months, it would be necessary;to get the site picked and the land purchased within the next two days.;He leaves the office almost immediately. Dirk also knows that to keep;the price down on the land purchase, it is necessary to keep the deals;?casual? and away from legal. That meant the rural areas where people;let cash speak.Dirk;knew exactly where he wanted to go, Front Royal, Virginia, a perfect;spot. Front Royal has a lot of empty land a two to three hour ride from;many major cities in the Washington, D.C. corridor. It also has the;Manassas Battlefield and Luray Caverns very close by to bring in the;tourist trade. With the help of a local realtor, Dirk locates two major;farms in the vicinity that would be good sites. One farm belongs to the;Jacobs and the other to the Dilly?s. One couple, Jordan and Janet Jacob;was anxious to sell off the 640 acres that the family left them so that;they could move into the city where they were employed. An offer;already exists from a local developer, Danny Dee, for a thousand dollars;an acre. This offer is seen to be low but is receiving their;consideration as the economy is so bad. Dee told them that they had to;let him know by the end of the week because he could lose his loan with;the bank soon without any land to develop.Driven;comes to them, the same day as his meeting with Troll, and two days;before their answer is due to Dee. Dirk, explained to the Jacobs that he;was a Vice President of CCI and gave them a business card. CCI, he;explained, is going to start a new company, FAMUSA, and wishes to buy;the land for that business. Dirk goes on to say that FAMUSA would pay;them $3,000 dollars an acre and closing would be in sixty days. He gives;them a check for $25,000 dollars as earnest money, drawn on a CCI;account, because as far as he knows the FAMUSA account is not yet opened;by Quick. The Jacobs think this is great. They agree to the deal and in;Dirk?s presence call Dee to turn down his offer.A;week later, Driven, after much consideration, decides that he is not;interested in buying the Jacobs land after all. He thinks that it will;cost too much money to develop. That day he makes a proposal to the;Dilly?s and buys 640 acres from them for $2,500 per acre. The Dilly?s;said that they wanted to reserve the mineral rights to the property and;asked him to write on the check in the memo slot ?sale of land does not;include mineral rights.? As he knows the sale isn?t in writing, Driven;agrees to this. Remembering the phone call and the Jacobs? delight he;thinks he will just forget the Jacobs? offer and let the earnest check;go as payment for their time. After all, nothing is in writing. Besides;he thinks, it is the easiest $25,000 dollars they will ever make.Immediately;after closing on the Dilly?s land, Dirk began construction on;Fun-A-Mania-USA amusement park. Within months it became apparent to;Driven that things were not going to get done within the ten month;deadline. He has trouble with the county inspectors, the suppliers are;not getting paid, and Quick is requiring several bids on everything to;save money. Furthermore, The Jacobs? write the Board of Directors;demanding to be paid for the contract they lost. The Board of CCI, now;aware of the project, tells Dirk that they could continue with the;project but he could not exceed the 3.7 million dollar budget.Dirk;is just about at that point and stressed out beyond belief. He writes a;check for $750,000 on the FAMUSA account and sneaks away to his secret;cabin in New Mexico. The check is labeled as severance pay. Upon;learning of Dirk?s departure, the Board halts the project. The suppliers;and contractors are furious at being treated so badly and decide to;picket the project. The picketing draws the attention of the media. One;contractor, Jim Jacob, Jordon?s brother, decides to blog a long diatribe;against CCI. Among many other things, he calls the Company a fraud.;This blog was picked up by the media.The;Board of Directors is now very much aware o

 

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