Assignment task:
Stein & His son owned a television appliance store. However they were having severe financial difficulties and decided to borrow money in order to increase their working capital for the company, stein, was having difficulty borrowing money from conventional lenders due to his poor Dunn & Bradstreet rating and his spoor personal credits rating, He was introduced by a friend to a company which provided loans to companies in need of capital. Stein signed on behalf of the corporation and the interest rate for the loan was 26% annually. In Addition he signed for a personal loan of 17%
A few month later, despite this influx of capital, stein realized that the business was falling. He was forced to sell to national appliance chain, GP Pritchard. Pritchard's attorney prepared a sale contract which included a provision prohibiting stein from operating an appliance store within 10 Miles of the current store location and for a time period of 10 years. Stein reluctantly signed the agreement due to his financial inabilities, Pritchard opened a new appliance store and made it employees sign an employment agreement which prohibited its employees from working for Pritchard's Completion for no less than 10 year after they left Pritchard's employ.
Stein in the meantime opened a new business, a health Spa. Members signed contracts which relived Stein from any liability for negligence for any reason whatsoever. Jim a new member, slipped near the spa pool are which contained puddles of water.
In the meantime , Pritchard's business was booming. However, Pritchard's attorney suggested that Pritchard could further increase its customers. The terms of the installment contract included a provision such that if the customer defaulted in the payment of any installment, the company could repossess any appliances bought , at any time form Pritchard.
Pritchard's Business expanded. In addition to appliances the business now sold household goods, clothing and food. One day Theodore Cleaver, a 15 year old, entered the store. He appeared old than his age but no one questioned him. He bought a flat screen Tv , Sneakers, and groceries such as milk and eggs. A day later he appeared at the store to returned all of the items and he demanded his money back.
Theodore's Grandmother June had been declared an incapacitated person by the NYC courts. Theodore, Who lived with his grandmother to have cable tv installed in their home. His mother refused. One afternoon, he called the cable company and had his grandmother sign a contract to install cable Tv. His mother came home and was furious. She called the cable company to remove the cable system. The company refused.
Stein's son is having financial problems and goes to a local bank. The bank wants a guaranty from stein for his son's debts. Stein calls the banker by phone and advise the bankers that he will "make good" on the loan if his son defaults. The banker has the son fill out the forms and he sends a form to Stein to sign. Stein leaves for Europe and advise the banker that he will sign when he returns from Europe. The Son is given the loan. Stein returns from europe but never signs the guaranty. The son defaults on the loan.
Stein's son meets the girl of his dreams. He agrees to marry the girl. The girl's father agrees to give a new jaguar auto if he does marry the girl. He marries the girl and the father-in law refuse to give him the car and states that he was merely joking when he stated that. Stein's son hires a lawyer to sue his father in law. He also asks the lawyer to prepare divorce paper for his bride.
Prtichard decides to buy the land next to its current store. Prichard's executives enter into a contract after about 6 months of negotiation. The written contracts has a clause which declares that the written contract is the final and complete understanding between the parties. During the oral negotiations . Pritchard was told by the seller that the seller would remove a shed in the rear. However, the written contract contract did not state this fact and the seller refused to remove the shed.
Pritchard commenced a new advertising campaign. It hired famous jingle writer composer and singer Harry Banilow to create and record a theme song for some tv commercials, after signing the contract Banilow, leaves for Asia on a concert tour. He calls his friend , Bob agrees. Pritchard is furious.
Spot the many issues above Jurisdiction is a fundamental aspect of any legal proceeding, as it establishes the power of a court to hear and decide a case. In this fact pattern, there are two possible courts with jurisdiction: the federal court and the New York State court.