Law Paper C

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1.e. May GM avoid or lessen its liability to Ren because he was not wearing his seatbelt?

1-f. Is privity of contract required between Stimpy and GM for Stimpy to bring a successful claim?

Question 3

CHAPTER 4: Contract Law: (1 1/2 – 2) pages

Pages 115- 117 (including Reed v. King) for “a –b” and page 141 and this link (for more extra credit) for “c”:

http://www.pacourtwatch.com/proving-fraud-in-a-residential-real-estate-transaction/

Buyer Sheldon purchased property that contained a four-bedroom ranch home and two smaller duplexes on a few acres in the far Philadelphia suburbs. The duplexes are rental units, which was a major selling point in Sheldon’s decision to purchase the property. When the duplexes were constructed, Kripke, a building contractor who considers himself an amateur plumber, was involved in every step of the construction process. Against his attorney’s advice, Sheldon only had the ranch home inspected. It passed with the proverbial flying colors.

Soon after moving in, Sheldon applied for a building permit to build a small addition to one of the rental units. During a routine inspection, plumbing inspectors discovered the septic system was non-complaint with local plumbing codes. Sheldon spent an additional $30,000.00, which included $5,000.00 in attorney fees, to bring the septic system into code compliance. The plumbing issue was not disclosed to Sheldon by Kripke, despite the fact that Kripke filled out a Seller Disclosure Statement which did not mention any issues with the plumbing or septic tank.

NOTE: For questions a- c pretend there are NO real estate agents involved in the transaction. (I have read many appellate decisions with real estate agents as co-defendants in similar situations.)

QUESTIONS:

a. What legal theory will Sheldon utilize. Be certain to review the elements. Do you think Sheldon will be successful?

b. Kripke argues that because Sheldon did not ask about the plumbing, the condition was immaterial. Why will this argument be unsuccessful?

- What legal remedies are available to Sheldon