Written Assignment for Unit #4

BL 240

Welcome. This is the fourth written (and final) assignment in BL 240. Before you begin the assignment, review that portion of the course syllabus (see class webpage) dealing with “Written Assignments” to ensure that you understand the format (cover page plus no more than two type-written double spaced pages, content of the cover page, Code of Honor statement, etc.). You will be graded both on your response to the assignment and on having followed the directions (format). Remember that verbiage will not be rewarded but the thoughtfulness and thoroughness of your response will be. Remember, also, that the object is for you to show me that you understand the material in Unit 4 and can apply it to a specific fact set.

Written Assignments (WAs): Each Unit (1-4) will have a written component (called Written Assignment or WA) worth 25 points each for a total of at least 100 points of your final grade. You may have other (additional) short written assignments designed to address specific topics. All WAs are to be submitted via the designated WA Dropbox (available under each Unit, Unit Assessment, then WA Dropbox). Each WA is to be no more than two double-space typewritten pages plus a cover page. The cover page is to state your name and student identification number (not your social security number), the date of submission, brief restatement of the assigned question, and the class Honor Code (see below).

The Class Honor Code Statement: I declare and affirm that the work submitted for this assignment is my own work product from my own labor, efforts, and endeavors, and that I did not receive, seek, offer, or accept unauthorized aid or assistance or use the work product of another, unless otherwise so stated fully and completely herein.

• WAs are posted on Monday mornings and due the following Sunday evening.

All written course work must be computer-generated and submitted as an attachment via the Unit Assessment function (i.e., WA Dropbox) for each Unit. You must keep copies of all your work on a disk or other electronic medium. Should a problem occur, you may be asked to provide a copy of an assignment. Note that all assignments are to be submitted as Word documents.

Written Assignment #4:

As noted in WA3, Kyle took your advice and decided not to spend the money to fight for his claim to “KFC.com” as the domain name for his new product line, Kyle’s Fantastic Condiments and has reorganized the company as Alabama Sunshine, LLC. Kyle, however, does want to continue the move of his business to the next level of operations and he wants to complete the expansion by constructing of a new store in Dolphin Island, AL. Recall that Kyle hired Alexa as his agent to contact Scott, negotiate a price, and, if possible, buy Scott’s property; however, Kyle instructed Alexa to not tell Scott that she was working on behalf of Kyle. Unfortunately, Alexa realized that Scott’s property was an exceptionally good deal and bought the property for herself, not Kyle as agreed. Kyle has gotten over his anger and wants to move on with the construction of the new building on Blueacre (the Alexa/Scott parcel of land).

Alexa acquired Blueacre from Scott in fee simple absolute and proposes to convey Blueacre to Kyle with a right of reverter (reversionary interest) as the location for Kyle’s new store. The proposed conveyance would be a defeasible fee (fee simple defeasible) with the condition that, should Kyle fail to construct and open his store on Blueacre within fifteen months or should Kyle cease to use Blueacre as a site for his store at any time in the future, then Blueacre would belong to the town of Dolphin Island to use as a park. Alexa also mentions that she will not transfer mineral rights to Kyle and intends to transfer those to her daughter, Darlene.

Kyle likes Blueacre because it is located within the town limits of Dolphin Island, has a beautiful natural stream running through it; is close to retail sales, the beach, and residential areas; and is large enough for not only his store but also a processing and production facility. Eager to move forward, he tells Alexa that he will accept her terms. They shake hands on the deal and Kyle gives Alexa a check as a deposit.

All this sounds pretty complicated to Kyle and he is growing nervous about this deal. His knowledge is in growing, processing, and marketing produce, not real estate transactions and land transfers. Knowing that you are (successfully?) completing BL 240 and have studied land-use control, environmental law, and real property, Kyle turns to you for counsel. He is also concerned about any other problems that he should consider in this transaction or relating to the construction of the new business location. Kyle also mentions that a customer of United Nutrition Associates (UNA—recall WA2) is complaining that his holiday variety pack did not provide the health benefits that she would expect from organically grown produce. The family has filed a complaint with the federal government and is now threatening a lawsuit. Kyle wants to know what the legal issues are and how he should respond. What are the issues that must be addressed and what is the controlling law for each issue?

Note: To help you organize your thoughts, I suggest that you read the fact set; decide which facts are relevant and which are merely verbiage; based on the information in Unit 4; decide which legal information is relevant to the facts; then state the legal issue, state the general rule of law that applies to that legal issue, apply the law to the facts, and go to the next legal issue.