BMGT 380 FINAL EXAMINATION
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some conflicting with federal regulations, covering operation of airplanes and<br />
licensing of airplane pilots.<br />
If the New York state statue is challenged as being unconstitutional, what is<br />
the likely result? Describe the applicable law and rationale for your<br />
conclusion.<br />
7. Fran, Joe, and Mike formed a general partnership to operate a flower shop called<br />
Fresher Flowers. One of Fran’s jobs is to make deliveries using the partnership<br />
truck. In one such delivery, Fran negligently ran a stop sign, striking a car driven<br />
by Peggy, causing damage to the car and injury to Peggy.<br />
Analyze and describe (1) the personal liability of Fran, Joe, and Mike, (2) the<br />
liability of the partnership, Fresher Flowers.<br />
8. Mark plans to open a barbeque restaurant. He can either open the business as a<br />
sole proprietorship or obtain a franchise for “Smokin’ Hot Bar-B-Q”.<br />
Compare and contrast the advantages and disadvantages of opening the<br />
business as a sole proprietorship and a franchise.<br />
9. 10 points<br />
Leon, a bank vice president, joined Fitness Center, Inc. (FC). He signed a contract<br />
for the membership. The contract stated, among other things, an exculpatory clause<br />
that FC…<br />
“shall not be liable for any claim, demand, cause of action of any kind<br />
whatsoever for, or on account of death, personal injury, property damage or<br />
loss of any kind resulting from or related to Member’s use of facilities or<br />
participation in any sport, exercise or activity within the club premises…”<br />
While working out at FC, Leon sustained back injuries when a treadmill on which<br />
he was walking suddenly collapsed at FC. Leon sued FC for his injuries.<br />
Discuss:<br />
a. Is the exculpatory clause in the contract valid or invalid in Leon’s case and<br />
why?<br />
b. Possible product liability claim(s) for which Leon could sue FC and why<br />
product liability claims might be applicable to this case<br />
c. Possible ordinary (non-product liability) negligence claim for which Leon<br />
could sue FC and why a negligence claim might be applicable to this case<br />
d. The likely outcome if Leon sues FC under product liability<br />
e. The likely outcome if Leon sues FC under ordinary negligence
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