Fact Scenario: Quik Results, Inc.(QRI), a Michigan corporation, makes and sells Power Up!, a super energy boosting, carbonated beverage. Power Up! is made in Michigan, but shipped to stores all across the Midwest and East Coast. Power Up! is made by QRI, and delivered on QRI. trucks, by QRI employees. QRI has in-house accounting and marketing staff.1. Orin, a citizen of Ohio, sees an ad for Power Up! in EXTREME!!! magazine and buys it in Ohio at a local store. Within 2 hours of drinking Power Up! Orin suffers internal injuries. Alleging that the injuries are caused by Power Up! Orin files a suit against QRI in an Ohio state court. QRI asks the court to dismiss the suit on the ground that it does not have personal jurisdiction over QRI. What is the court most likely to rule and why?2. Steve, a driver for QRI, leaves the truck’s motor running in neutral and carelessly forgets to set the parking brake while he makes a delivery. The truck rolls and crashes into a nearby gas station pump, igniting a fire that spreads quickly to a construction site a block away. A burned wall collapses onto a crane, which falls on, and injures, a bystander, Flo. What must Flo show to recover damages from Steve? What are QRI’s potential liabilities?3. QRI’s in-house marketing department decides to use in print ads for Power Up! direct quotes from a study that shows the ingredients in Power Up! are safe and effective. The study was done by Deep Topics, Inc. a private, for profit research/think tank organization. QRI does not obtain the permission of Deep Topics to use the study in its advertisements. Deep Topics files a suit against QRI, alleging infringement of the plaintiffs’ intellectual property rights. Which type of intellectual property is involved in this situation? What is QRI’s likely defense? How is a court most likely to rule? Explain.4. Flossy, worried about her cousin Garth’s dangerous obesity and seeming addiction to Power Up! promises to pay Garth, $10,000 if Garth stops drinking Power Up! and loses 100 pounds within the next two years. Garth agrees, performs his part of the bargain, and asks for the money. Flossy refuses to pay, saying that she forgot about the deal, but that even if she did make such a pledge, there was no valid consideration for it. Garth files a suit against Flossy. In whose favor is the court likely to rule, and why?5. Quicksilver Delivery Service contracts to deliver Power Up! in California for $5,000, payable in advance. QRI pays the money, but Quicksilver fails to perform. Can QRI rescind the contract? Can QRI also obtain restitution? What does it mean to “rescind” a contract? How is a contract rescinded? What is restitution? How is restitution accomplished? Explain.
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