Here are 2 business cases in the attachment. Please read it carefully and answer all the questions listed.

This work DUE IN 3 HOURS.  You MUST submit on time.

Thanks.

Case1

You and your partner have lived in a local home for the past 15 years. During that time, the home has been subjected to normal wear and tear. In addition to the usual worn carpets and need for fresh paint in most of the rooms you have witnessed that the basement has flooded on at least one occasion and there have been instances where a bucket has been used to catch moisture that drips from the kitchen ceiling.

Recently the two of you have decided to pull up stakes and move to a new home in South Lake Union. To do this you will have to sell the only home you have ever owned and want to make sure you get top dollar considering how expensive the South Lake Union neighborhood has become in the last 5 years. Who would have ever thought that living near the “Mercer Street mess” would be so desirable.

After some consideration, you decide to retain the services of a real estate broker to handle listing your home and marketing it in hopes of finding a buyer. You interview 3 brokers and listen to the pitch of each of these individuals while they try to convince you why you should them to be your real estate agent.  You finally select Ben from AJACKS Real Estate to handle your property.

Ben wants to ask you some questions about the home so that he can market it correctly. First, he wants to know if there are any material defects in the home. You tell him about the wet basement and roof but point out that it has rained in Seattle in over 40 days and so there are no signs of these problems and you don’t want to share that information because those issues are not obvious now.

Your agent is becoming frustrated but puts the house on the market and does not disclose the issues that you asked him not to reveal. information that you asked him to conceal.

QUESTION:

1.What are the issues raised by this scenario?

2.Can Ben inform prospective buyers about the problems with the home?

3.What are the options of the agent?

4.What can the principals do if they are not satisfied with the way the agent is handling the listing?

5.If the sellers terminate the agent is Ben entitled to payment for his services.

CASE 2

Peter, Paul and Mary have a business selling coffee mugs with college logos imprinted on the mugs. They have been in business for about 10 years and are very successful. Peter learns of a unique opportunity that would allow him to buy an established business that sells custom ties and imprints the logos of fraternities on the ties.

QUESTION: Does Peter have a duty to let Paul and Mary know about his possible business venture before he completes the purchase?

  What questions should be raised and what answers to the questions would govern the behaviour of Peter?

  Do Paul and Mary have any recourse if Peter just blows them off and never discloses the purchase?

  Would it matter if Peter, Paul, and Mary had formed a partnership, LLC, or corporation when you evaluate this question?