QUESTION 1: Ethics & Contracts
City Bumper Car Tours of Jersey City, LLC (CBCT), operated tours where customers used Bumper Cars transportation vehicles to tour the city. There is a city ordinance that requires "All tour companies to properly supervise, inspect for safety, and maintain proper control over Bumper Car Vehicles." Donald Metro and his significant other signed up for such a tour. The contract they signed prior to beginning the tour contained a release of liability clause (exculpatory clause) that stated:
"I do hereby waive, release, acquit, and forever discharge CBCT from any and all losses, claims, suits, causes of actions, etc. for property damages, personal injuries, or death I may suffer or sustain while riding or operating the CBCT bumper car transportation vehicle, whether arising from my own acts, actions, activities and/or omissions of those of others, except only those arising solely from the gross negligence of CBCT"
While riding the bumper cars, Donald Metro collided with the bumper car ridden by his significant other. It was proven that Donald was driving faster than permitted and instructed by the Tour Company, but there was no gauge that limited the speed to be set at any specific level. Donald Metro fell out of his car onto the ground and fractured his right arm because the bumper car safety belt was not properly fastened by Donald. It was later proven that the safety belt was not defective.
Donald sued CBCT for negligence to recover for his injuries. CBCT argued that the release of liability clause that Donald Metro signed above released them from all liability other than gross negligence. Donald Metro arguer] the release of liability clause was not enforceable. Did CBCT act Ethically in placing a release of liability clause in its contract? Do you think CBCT could be liable for Donald's injuries explain.
QUESTION 2: Third Party Rights: Assignment of a Contract
Billy Bob Cunningham, a professional basketball player, entered into a contract with Southern Sports Corporation, which owned, the Dakota Sparks, a professional basketball team. The contract provided that Billy Bob was to play basketball for the Dakota Sparks for a three-year period. The contract contained a provision that it could not be assigned to any other professional basketball franchise (another team) without Billy Bob Cunningham's approval. After the contract was signed, Southern Sports sold all of its assets, including the basketball team franchise (Dakota Sparks) which Cunningham played for, and the contract, to the Opportunity Fund Corporation. There was no change in the location of where the Dakota Sparks played basketball. When Billy Bob Cunningham refused to play for the new owners, the rev.' owners sued to enforce the contract. Is Billy Bob's contract assignable to the new owner? Take one side of the argument for either Billy Bob Cunningham or for the Opportunity Fund Corporation and argue your position.
Question 3: Negotiable Instruments
John Smith executed a note payable to NJ Media, a joint venture that solicited investments for an independent film. John Smith's promissory note read, "John Smith hereby promises to pay to the order of NJ Media, the sum of $329,800." Four years later, NJ Media negotiated the note to Cooperative Film Studios Credit Union, A Federal Credit Union Bank. A default occurred, and Cooperative Film Studios Credit Union filed suit against John Smith to recover on the note. Is the note executed by Mr. Smith a Negotiable instrument?