Remedies Final Examination May 4, 2004 Professor Wells Examination Number______________ Instructions: Upon receiving this exam booklet, write your bluebook/exam number in the upper right hand corner of the first page of the exam booklet. There are 3 questions in this examination: Two (2) essay questions and one (1) question consisting of short answer sub-questions. Be sure that your exam has all 3 questions. Answer each question separately, using the corresponding exam question number (and subsections where necessary). All answers must be contained in the blue book provided. If possible, use a pen with blue or black ink. Write on only one side of the page. Do not tear pages out of the bluebook. Do not use pages of the bluebook for scratch paper. This is a limited open book exam. You may refer to the textbook assigned for this class, any materials that were handed out in class, your class notes, and any outlines you have prepared specifically for this class (alone or in conjunction with others). No calculators may be used during the examination. Do not consult any other materials or persons when taking this exam. Consulting any other materials or persons is an Honor Code violation. Each question has a suggested time limit, which is the amount of time I believe necessary to answer the question. Be advised that the amount of time allotted for each question is roughly equivalent to the total possible points for that question. In other words, the longer the question, the more weight to be given it in the grading process. Use your time wisely. In general, we have not studied the law of a particular state in this class. In answering questions, use the general principles of law that we studied in class. However, to the extent we discussed some Missouri law in class, you should discuss it on the exam if it would apply in a particular setting or if it poses a contrast to the general principles we studied in class. Remember: The issue to be analyzed is related to the appropriate remedy. You should assume that the substantive violation has occurred as described (i.e., do not argue about whether there has been a breach of contract, tort, etc. Assume that there has been). You will have three hours to finish this examination. At the end of the examination, place your exam inside your bluebook and turn them in. Question 1: (50 minutes) - deleted 2 Question 2: (60 minutes) Lisa, a student at Springfield College (“Springfield”), was recently suspended for cheating on a physics exam. Despite her protestations of innocence, Seymour Skinner, the Chancellor of Springfield nevertheless imposed a one-semester suspension to begin in the Fall. After learning of the Skinner’s decision, Lisa’s brother, Bart, formed an organization, the “Lisa Liberation Front” (“LLF”), for the purpose of committing acts of civil disobedience until Lisa was reinstated in school. On several successive nights, members of the LLF trespassed on school grounds and vandalized school property, each time leaving a spray-painted notice that “LLF was here - long live Lisa.” After some investigation, Skinner discovered that Bart had participated in most of the acts of vandalism. As a result of Skinner’s discoveries, Springfield immediately went to state court seeking a temporary restraining order (“TRO”). Springfield’s attorneys gave telephonic notice of the TRO hearing to Bart at least 24 hours prior to its occurrence. On May 1, the trial court held a TRO hearing. After the hearing, in which both Bart and Springfield participated, the judge issued an order barring Bart from engaging in vandalism of Springfield property. On May 8, Bart moved the trial court to dissolve the TRO against him because it conflicted with existing court precedent. Some appellate court decisions in the jurisdiction had held that vandalism specifically committed in the name of political protest was protected by the First Amendment of the United States Constitution. There are, however, other precedents holding that the First Amendment does not protect acts destructive to property. The judge refused to dissolve the TRO and commented, “Organizations like yours should be wiped off the face of the earth. I think I just might enjoin you forever.” Bart was enraged at the court’s refusal. He stomped home to his clubhouse where Ralph and Milhouse, members of LLF, were waiting. He threw the court’s original order at them, screaming “Read this - this man is an idiot!” On June 30, Ralph and Milhouse, who had watched Bart seethe in anger at his inability to reverse Lisa’s suspension, decided to take action and vandalize the school on their own. Armed with sledge hammers and crow bars, Ralph and Milhouse began to destroy the entryway to Springfield’s student union. They focused particularly on a large sign that had recently been posted warning students that the state court had issued an injunction barring vandalism of the school. Nelson wandered by while Ralph and Milhouse were destroying the sign and the entryway. Although not a member of LLF, Nelson likes to break things. He heartily joined in with the vandalism although he openly “eschewed the political purpose” of Ralph and Milhouse’s acts. Soon thereafter, Bart, who had refrained from committing vandalism after the court’s order, walked by. Gratified to see his friends’s actions he decided to join in. 3 Ralph, Milhouse, Nelson, and Bart were caught in the act of vandalism by Skinner who reported their behavior to the state trial judge issuing the original injunction. The judge has scheduled their criminal contempt hearing for two weeks from today. Assuming that all appropriate criminal procedures are followed, should the trial judge find Ralph, Milhouse, Nelson, and Bart in contempt? (Assume for purposes of this question that the state in which the contempt hearing is to be held has a rule of civil procedure identical to Federal Rule of Civil Procedure 65.) Examination continued on next page. 4 Question 3 (70 minutes) This question contains a series of six (6) self-contained short answer questions, labeled A-F. Make sure your exam contains all sub-questions. Your answers to these questions should be short and to the point. These are not lengthy essay questions and you will not have time to treat them as such. Subquestion A: (10 minutes) In the 1960s and 1970s the Chicago Police Department engaged in a series of operations that involved infiltrating and spying on various domestic protest organizations. A coalition of those organizations filed a lawsuit claiming that such monitoring violated their First Amendment right of free association. At the time they sought an injunction preventing the Department from further monitoring their activities and/or keeping dossiers on the organizations’ members. During the pendency of this lawsuit, the plaintiff organizations discovered that the Department had bugged the offices where the plaintiffs’ lawyers met to discuss the lawsuit. Plaintiffs then asked the court to issue an injunction preventing the Department from further bugging their lawyers’ offices. The Department replied that an injunction was not necessary because it already had stopped bugging the plaintiffs’ lawyers’ conversations. Should the court refuse to issue the injunction based upon the Department’s statement? Subquestion B: (10 minutes) Buzz’s business markets hair care products under the name “Hairtastic.” Roy also marketed hair care products, but he uses the name “Hairlastic.” Buzz recently sued Roy in federal court for trademark infringement. The district court issued a preliminary injunction enjoining Roy from distributing his products in all 50 states. Roy filed a motion to reconsider noting (rightly) that his trademark infringed in only 30 states. Before that motion could be decided, Buzz and Roy agreed to settle the lawsuit. The settlement agreement called for Roy to pay Buzz a license fee to use the name of Buzz’s business in the future. In return, Buzz agreed to voluntarily dismiss the entire lawsuit. Once the agreement was finalized, the district court dissolved the preliminary injunction. During the pendency of the preliminary injunction, Roy was unable to operate his business. As a result, he lost about $12,000 in profits in the states in which his trademark did not actually infringe Buzz’s. Roy sued to recover damages under the injunction bond which the court earlier required Buzz to post in the amount of $10,000. What amount will Roy recover under the bond? 5 Subquestion C: (10 minutes) Ellen recently received a gift from her grandmother of a hand-knitted, wool turtleneck sweater. After wearing it several times, she took it to her local dry cleaners, Ace Cleaners. Unfortunately, Ace Cleaners damaged the sweater beyond repair. Ace has offered to pay Ellen $40 for the sweater. It based that figure on an industry manual widely used by dry cleaners throughout the nation. That manual lists the average retail value of various types of clothing. Ace Cleaners arrived at $40 for Ellen’s sweater by looking at the average cost of similar sweaters at Gap, Target, Banana Republic, J. Crew and other national retail stores. Ellen is unsatisfied with Ace Cleaners’ offer of $40. While she acknowledges that her sweater was not unique in look or style, it was knitted by her grandmother which gives it great sentimental value for Ellen, who believes she should be reimbursed at least $100. What is the best argument for awarding Ellen only $40 for the sweater? Subquestion D: (10 minutes) Mo entered into a contract with Curly. Under the contract, Mo agreed to sell Curly a piece of land, Stooge Acres, for $100,000. Both parties signed the contract. The day after it was signed, and before Mo and Curly had performed under it, Larry approached Mo with an offer to buy Stooge Acres for $150,000. Mo agreed to sell the land to Larry instead of Curly. Mo and Larry signed a contract and Mo delivered Stooge Acres to Larry in exchange for $150,000. Mo then notified Curly that he was not going to deliver Stooge Acres pursuant to his original contract with Curly because he had already delivered the land to Larry. Does Curly have a restitution remedy regarding Mo’s breach of contract? Subquestion E: (10 minutes) Wilson is an inmate at a Missouri state prison. He filed suit in federal court claiming that the conditions of the prison constitute cruel and unusual punishment in violation of the Eight and Fourteenth Amendments of the United States Constitution. Wilson named various defendants including the State of Missouri, the Missouri Bureau of Corrections, and Larry Dessem in his official capacity as the Commissioner of the Bureau of Corrections. Wilson seeks both damages for past violations and injunctive relief preventing future violations. Explain which of Wilson’s claims may proceed in court. 6 Subquestion F: (20 minutes) Linduh and Ted entered into a contract whereby Ted agreed to sell Linduh a top-of-theline motor boat in exchange for $50,000 in AT&T stock (500 shares at $100 per share). After the contract was performed, Linduh took the boat and made some significant modifications, including the addition of a souped-up engine, a custom paint job consisting of a skull and crossbones surrounded by flames, and an eight-track tape player. The modifications raised the value of the boat by $5,000. Ted took the 500 shares of AT&T stock and immediately sold 250 of them for $25,000 dollars. He deposited that money in his bank account, in which there was already $10,000 of his own money. The next day Ted withdrew $15,000 from his account and bought several cases of rare anchovies, which he then ate in one sitting. This made Ted understandably sick so he visited the emergency room. Unfortunately, the medical staff was negligent in treating him, resulting in substantial delay in Ted’s recovery. As a settlement for this negligence, the hospital paid Ted $10,000. Ted deposited that money in his bank account. Soon thereafter, Ted sold 100 of the 250 remaining shares of AT&T and traded them for 100 shares of GM stock. GM stock recently fell to $10 per share. Linduh recently discovered that Ted had deliberately lied to her when he represented that the boat was made of a durable carbon-fiber shell when in fact it was made of plain old fiberglass. She has sued for rescission based on Ted’s fraud. What will each party get upon rescission of the contract? END OF EXAMINATION 7