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Answer each question using the legal concepts discussed this week. The facts presented in each question do not carry over to the other numbered questions. For example, the facts added in question #2, do not apply in question #3. Please see the attached Commercial Lease Agreement and Employment Agreement.
Employment Agreement – Download Employment Agreement – (Check attachment) ****
Lease Agreement – Download Lease Agreement – (Check attachment) ****
1. On February 13, 2021, Patrick Brewer and Megan Dougherty met at 23152 Ginsberg Place to discuss the terms of the lease agreement. After giving him a tour, Megan explained that she was eager to rent the property. Patrick was apprehensive and worried that he would not be able to afford the rent in the initial months of his business. Megan reassured Patrick that she understood. She explained was willing to accept half of the rental amount during the first six months of the lease. Patrick agreed. The lease was drawn up and sent to Patrick’s office. Patrick was so excited that he ripped open the envelope, signed it and returned it to Megan.
For the first three months, Patrick pays only $500 per month in rent. Anderson Holdings, LLC has filed suit and alleged that Patrick has violated the terms of the lease.
Patrick argues that because he did not read the lease before he signed it, it is not binding. Is Patrick correct? Explain your answer.
Patrick asserts that Megan Dougherty had agreed to accept a reduced amount for rent during the beginning of the rental period. Will Patrick prevail? Explain your answer.
2. After ten (10) months in business, Patrick evaluates his sales and determines that he can be more successful if he changes his store. He is going to shift the merchandise in the store and add five (5) manicure/pedicure stations, as well as a coffee bar. Does anything in his lease impact this decision? Explain your answer.
3. Management of Anderson Holdings, LLC has an opportunity to sell the property presently leased by Patrick Brewer. Christopher Stapleton has offered $1.5 million for the property. Anderson Holdings, LLC accepted his offer and notified Patrick Brewer of the sale of the property. Patrick is upset about the sale and argues that he has a right to stop the sale. What do you think? Explain your answer.
4. The State has undertaken a project to widen Ginsberg Place and intends to exercise its power of eminent domain. This will result with the rental property losing 75% of the parking lot to the state road project. Patrick argues that he cannot operate a business where his customers have no place to park and he seeks to terminate the lease. What do you think? Explain your answer.
Following the execution of the lease, Patrick Brewer opens Brewer’s Boutique, Inc. (Patrick thinks that the name sounds better with Inc. He has not taken any steps to incorporate.) He operates the store for over one year and it has become popular in the community. Carla Customer is shopping in the store when a portion of the drop ceiling falls and strikes her. She files suit against Brewer’s Boutique, Inc. and Anderson Holdings, LLC.
After examining the lease, explain whether there are any protections for Anderson Holdings, LLC.
Explain the impact of including Inc. in the corporate name. Does this have any effect on liability in terms of Carla Customer’s lawsuit?
Cook’s began work at Baystate Health on January 4, 2021. It was not a smooth transition. Dr. Cook did not agree with the scheduling system employed and wanted to spend additional time talking with patients than was encouraged by the employer. By the end of February, it was clear that Dr. Cook was not a good fit. Dr. Cook expressed a desire to leave to Baystate Health. Dr. George Pouncey was the chief medical officer for Baystate Health and agreed with Dr. Cook. They discussed it and determined that Dr. Cook’s final day should be March 31, 2021.
On March 2, 2021, Dr. Cook was involved in a car accident and died. Dr. Cook’s spouse, Dr. Lee Simmons is seeking payment of $75,000 as per the terms of the employment agreement. Explain whether Baystate Health is still obligated to pay even though Dr. Cook had expressed a desire to stop work at the practice.
Cook works at Baystate Health through March 31, 2021 as per his verbal agreement with Dr. Pouncey. Subsequently, Dr. Cook demands payment of his outstanding salary for the term through March 31, 2021 and $5,000.
Cook’s performance at Baystate Health is outstanding. In fact, Dr. Cook’s high quality of care has helped grow the practice tremendously. Based on the foregoing, Dr. Pouncey tells Dr. Cook to expect a significant pay increase. Dr. Cook receives a memo outlining the pay increase that is already signed by Dr. Pouncey. Dr. Cook signs it and submits it to HR. Explain whether the pay increase is permitted as per the terms of the employment contract.