Legal Aspects of Engineering

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INSTRUCTIONS
There is a lot here so please be careful. Think before you write. Be thorough and complete.
This exam is due on Monday, March 1st at 5 p.m. Pacific. I estimate that each essay will be 750 to 1,000 words to complete.
Question 1 – 100 Points
You are the property acquisition manager for Caruana Industries. Your job is to find properties so that the corporation can build buildings or other structures and develop land.
You have found a parcel of land of approximately 50 acres in the City of Oceanside.
First of all, if you were going to advise the corporation about how they should acquire the land, what would you advise? In other words, would you recommend that they rent the land on a month-to-month basis or perhaps get a lease or would you recommend purchase?
You are concerned about which of the above is the best but assuming that you have come to the conclusion that you would like to purchase the land, how can you be sure that the land is really owned by what appears to be the prior owner, Park Industries? What would you do to verify ownership?
Subsequent to deciding to purchase, assume that you are going to go into escrow. Please explain the escrow process and the significance of it. Please detail all of the stages and the issues.
In looking at the land that you will subdivide, certain pieces of land, once subdivided, if approved by the City of Oceanside, will need access to major streets and highways. What do we call the right of way that a person may have in going over another piece of property? Please explain what that is and the significance of it. Explain how it is accomplished.
Finally, if there are problems with the purchase of the land, the parties may have remedies. When it comes to remedies for real estate deals, please explain what the remedies might be if somebody wants to get out of a deal. Please check your text books for the types of damages and the other remedies. Make sure that you consider rescission as a remedy.
Be thorough!!!!!!!!!
Question 2- 100 Points
Reliance Steel Products sent a purchase for certain steel products to Kentucky Electric Steel referred to as KES. Reliance’s purchase contained a clause stating that Reliance would not be bound by any terms other than those in its purchase unless it agreed in writing to a change of the terms. KES responded with its standard acknowledgment form and the form contained a limitation of liability clause that limited KES’s liability for defective goods to replacing the goods or allowing the buyer a credit for them. Reliance later filed a breach of contract suit against KES arguing that some of the goods received did not conform to the contract specifications. Reliance asked for a damage award based upon damage to its fabricating machinery and lost profits that they claimed resulted from KES’s breach. KES obviously argues that such damages are not allowable for several reasons.
Please discuss the various positions. First of all, please analyze whether or not there is a valid offer and acceptance. Second, please discuss the various contents of the offer, if any, and the contents of the acceptance, if any. Third, please look into the damages issue as is requested. Please discuss what would have been allowable and not allowable.
Question 3 – 100 Points
Matthew Green, age 16, signed a contract to buy a Camaro from Caruana Chevrolet. Matthew Green is the son of Mark Green, a local businessman, well known by Caruana Chevrolet. The Green family lived about six miles from the dealership. The Green family was friends with the Caruana family. Matthew Green lived about six miles from his school and about one mile from his job and used the Camaro to go back and forth to school and to work. Matthew misrepresented his age by using a false ID card which was an obvious fraud. The photo looked nothing like Matthew.
When Matthew did not have the car, he used a car pool to get to school and to work. Matthew’s father drove in the car pool as did several other parents. Several months later, the used car became inoperable due to a blown head gasket and Green gave notice of his rejection of the car and of the contact to Caruana Chevrolet. Caruana Chevrolet refused to refund the purchase price.
Caruana Chevrolet had purchased this vehicle at auction for $2,500.00. The sale price to Matthew was $7,000.00.
Please discuss the issues contained within this case. Before you get to any subsequent issues, please take a look at the primary issues. As I have discussed with you in class, you cannot put the roof on the house until the foundation is poured.

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