Reference no: EM132234371

Business Law 1, Fall 2018 East Los Angeles College Written Assignment 1 – Legal Issue Spotting and Factual Analysis Assignment: Analyze the fact scenarios, involving tort law (chapters 5 and 6 of course textbook) and write an answer by discussing each of the following: (1) Issue: List the tort(s) in each scenario, identifying (by name) each tort that has, or may have, been committed. This requires comparing and contrasting the differences between negligence, intentional, strict liability, and business torts (recall that a tort is a civil wrong for which relief can be granted); (2) Rule/Law: Describe the prima-facie case at law for each tort by giving the definition and listing the essential elements of each tort identified; (3) Analysis of Facts: For each tort identify the relevant facts, assess the facts and the law and give your analysis for determining whether or not a tort has been committed. This requires appraising the strengths and weaknesses of each set of facts relative to the law and determining whether a tort has occurred (whether the definition or elements of the tort have been met based on the facts presented); (4) Defenses: Discussing any relevant defenses available as they apply to the facts stated, and determine whether the defense may be asserted based on the facts; (5) Conclusion/Damages: State whether, based on your analysis and defenses (above), a tort has been committed and assess the likelihood and amount of recovery (damages). Format: Your answers should be typewritten and printed on paper (stapled together if more than one page) to be turned in with your name and course section number printed at the top of the first page. Organize your responses so that it is suitably presentable for review and assessment by performing the above steps (1-6) for each section of this facts scenario in order. Due date: This assignment is due by the beginning of the first class in week 10 of the semester. Section 1: Babak agreed to sell his small “Taste of India” restaurant with an open area barely large enough for parking behind the building in Echo Park to Ang for $800,000 in a written contract signed by both parties. The written contract and disclosure statement did not identify any damage or defects to the property. During negotiations, Babak told Ang that, although there was no deeded right of way giving access to the small space in the back of the restaurant used for parking, customers were allowed to enter through an undeveloped open portion of the adjacent lot on which stood only a small store surrounded by undeveloped open space. Babak stated to Ang “I’m sure your customers will be able to continue using undeveloped portions of the adjacent lot to access parking spaces behind the restaurant”. Parking was very important because the restaurant was located in a heavily congested urban area. Ang paid Babak $800,000 and Babak deeded the building to Ang. Ang immediately renovated to build her “Dream Asian-Fusion” restaurant at a cost of $150,000. While renovating, Ang discovered cracks from earthquake damage in the middle of the dining area. The cracks had recently been filled in, ground smooth and concealed under thick dark commercial-grade carpeting. Ang also discovered that the owner of the adjacent lot was really a developer preparing to start construction of an office building on it, blocking all access to the rear parking, and that Babak had already known about these development plans before the sale. Ang began operating her Asian-fusion restaurant receiving great online food reviews and making a decent profit. However, a month later Ang’s business decreased significantly when the adjacent lot was developed, blocking all access to the rear of her restaurant used for parking. Ang has tried to sell the building but has been unable to obtain offers of more than $700,000, due to both the structural foundation crack damage and the lack of parking space access, which she truthfully discloses to potential buyers. Analyze. Section 2: Carlos, a close friend of Ang’s, brings his friend Dale to the restaurant for lunch. While Carlos and Dale are eating, Ang tells Carlos “Babak, the man who sold me this place is a liar who deceived me in the transaction. Be cautious if you ever deal with him.” Dale overhears this statement. Dale is an investor that finances new ventures. Earlier that week Babak had approached Dale for investment money to open a new business venture “Babak’s Grand Taj Mahal Luxury Hotel and Resort”. At that initial meeting Babak presented his business plan to Dale and emphasized his (Babak’s) excellent reputation for honesty in the business community. Dale stated to Babak “Based on your business plan presentation and excellent reputation, I see no reason why I can’t provide full funding for your new venture by next week after my office performs a standard background check on you.” Based on Dale’s statement and confident after their initial meeting that full funding would be provided by Dale to launch, develop and operate the luxury hotel and resort venture, Babak invested all the money he acquired from the transaction with Ang, his entire savings, and leveraged his home as a non-refundable down payment on a huge undeveloped lot in the City of Commerce on which he intended to develop a luxury hotel and resort. After overhearing Ang’s statement to Carlos about Babak however, Dale immediately emailed Babak stating “Babak, I overheard someone say you are a ‘liar who deceived someone in a transaction’. All deals are off. I will not give you any investment money at all. Do not contact me again.” Dale accidently pressed “send to all contacts” which included posting on a trade website list-serve viewed by all investors who finance new development ventures throughout the state. Thereafter, Babak was not able to obtain any funding. Babak was not able to finance the new venture and lost everything, including his home and all his money. Analyze. Section 3: A few months later, after losing everything due to the failed luxury hotel and resort venture idea, Babak took a job as the night manager at “Enny’s” restaurant in Alhambra. Carlos and Dale go at the “Enny’s” for food after a late business meeting. Seeing Dale and Carlos from inside the kitchen, Babak decides he must defend his honor. Intending to get revenge on Dale for being the cause of all his problems, he uses his manager’s keys to access a locked storage closet containing industrial cleaners and janitorial supplies. He takes two cans of industrial strength cleaner, runs over and begins spraying Dale and Carlos in the face with industrial chemicals shouting “Take that you son of a goat!”. Both Dale and Carlos become critically ill from the chemicals and are hospitalized, but eventually recover and are released from the hospital after a month. Dale and Carlos endured severe pain and suffering, lost profits from missed business opportunities, and incurred substantial medical bills. Analyze.