1ARE 306 EXAM II November 13, 2001 Select the best answer. You may use one 3x5 card of notes, handwritten, front and back, and no other materials. All answers must be placed on the Trans-Optic® answer sheet using a number two pencil. (For True/False questions, True=a, and False=b.) For grade posting purposes your unique three digit identifier is ________. Please record it in a safe place and on your Trans-Optic® answer sheet under 'identification number'. The test includes several fact patterns upon which questions that immediately follow are based. Fact pattern #1 Fred and Addie own neighboring hog farms. Both have been in business for 15 years. Both have about 3500 sows and both store waste in lagoons. Both border a river. Fred's farm is downstream from Addie's. One day Fred noticed that the level of waste in Addie's lagoon was very close to running over. Fred called Addie to let him know that there was a problem. Addie replied, "Mind your own business - if I run it over the top it is no concern of yours!" and hung up the phone. That night, after a short rain, the dam on the river side of Addie's lagoon broke, allowing several million gallons of raw hog waste to flow into the river. Fred, who had used water from the river for his hog operation, has had to truck in water since the break. The stench of the hog waste combined with that of fish killed by the spill is so overpowering that Fred and his family have been forced to leave their home and live in a motel. Upon seeing the spill, Fred ordered his lawyer to immediately file a lawsuit against Addie. 1. What is Addie's best defense against an action on a nuisance theory? a. Fred did not engage in pre-litigation mediation b. Fred does not own the river c. Addie's farm has been in business for more than one year d. Fred is also a hog farmer e. None of the above 2. What is Addie's best defense against an action on a trespass theory? a. Fred did not engage in pre-litigation mediation b. Fred does not own the river c. Addie's farm has been in business for more than one year d. Fred is also a hog farmer e. None of the above 3. If Fred can get the case to trial, remedies are likely to include: a. abatement b. actual damages c. punitive damages d. actual and punitive damages e. abatement and actual and punitive damages2 4. Fred's suit based upon a nuisance theory will likely be based upon which category of tort? a. strict liability b. intentional tort c. negligent tort d. none of the above Fact pattern #2 Donald raises and trains poodles for dog fighting. He has discovered that the novelty of fighting poodles attracts customers to his dog fights, and that the authorities don't take fighting poodles seriously so he avoids arrest under North Carolina laws that make dog fighting a crime. At any given time he keeps about 20 poodles in locked cages in his back yard. His yard is posted with "No Trespassing" signs. One day his neighbor, Darby, who is outraged by Donald's business, entered Donald's backyard and let all of the poodles free, whereupon they mauled Darby, inflicting serious bodily injury. 5. Darby is most likely to recover actual damages under a theory of: a. strict liability b. intentional tort c. negligent tort d. none of the above 6. True or False Donald's defense of contributory negligence is a complete defense against the lawsuit brought by Darby. Fact pattern #3 Ernie and Kermit were sitting in the bar, the Snowflake, when Ernie said to Kermit, I will buy your farm for $100,000. Kermit said, "Sold!" Kermit drafted a contract on a napkin and signed it. At the insistence of Ernie they left the bar and went to Kermit's house to obtain Kermit's wife's signature on the contract. After they left the bar the DEA conducted a raid on it. They found three tons of cocaine in a storage shed behind the bar. The bar had originally belonged to Chump, who unable to make money in the business, had sold it to Risling who found that, after he renamed it and began selling drug paraphernalia, it became a real money maker. Chump financed the sale to Risling by taking back a deed of trust for the remaining purchase price owed. The federal government seized the bar. Risling refused thereafter to make any further payments to Chump. Kermit refused to convey his farm to Ernie. His comment was that he was "high as a Georgia pine tree" when he made the contract, and anyway, it was just a dare - he wanted to see if Ernie really had the money. 7. True or False Kermit's oral statement, "Sold!" created an enforceable contract for the sale of his farm.38. True or False Enforceable contracts for the sale of real property cannot be written on napkins under the Statute of Frauds. 9. Which fact tends to support the proposition that Kermit was of sufficiently sound mind to form a contract for the sale of real estate? a. Kermit had been drinking alcoholic beverages b. Kermit testified that he was "high" c. the sale price of the farm was $100,000 d. Kermit and Ernie left the bar to obtain the signature of Kermit's wife e. None of the above 10. Name the type of action that Ernie must bring to obtain the farm: a. Rescission and restitution b. Negative injunction c. Specific performance d. Money damages e. None of the above 11. True or False Chump is most likely to recover the bar by suing Risling alone. 12. Risling's best defense against a suit by Chump on the note to recover the remaining money owed is: a. Purchase money deed of trust b. Risling was unaware of the cocaine in the shed c. Loss of the property was a result of actions by a third party (the federal government) d. Chump failed to seek foreclosure first e. None of the above 13. The federal government's best defense against an action by Chump to recover the value of the security interest represented by his deed of trust is: a. Chump was aware of the illegal activity on the property b. Chump knew nothing of the illegal activity on the property c. Chump had initiated a foreclosure action against Risling as a result of Risling's illegal activities, prior to the federal forfeiture d. Chump was served with papers in the government's civil forfeiture action and defaulted e. None of the above Fact pattern #4 Tenant farmer (TF) rents farmland from Landlord (LL) under an annual oral lease. TF grows tobacco on the rented land. LL sells the land to Developer (D), who immediately upon closing bulldozes the tobacco crop and begins building houses.
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