2. Operations Management

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Business Law: Texted and Cases 14th Edition

Using the Landlord Tenant Dispute document and Lease (Charlie Brown's) (Below the Questions) as well as your textbook answer the following questions:

1. Assume you are the attorney for the Landlord. List the legal grounds under which you would sue the Tenants and list the arguments you would use to persuade the Judge to rule in your favor. Also list the defenses you would raise to the counterclaim brought by Tenants. Support your answers with legal reasoning and conclusions.

2. Assume you are the attorney for Tenants. List the grounds for bringing the counterclaim and the arguments you would use to persuade the Judge to rule in your favor. Also list the defenses you would raise to the original suit. Support your answers with legal reasoning and conclusions.

3. Now act as Judge and after weighing the evidence make your ruling and list your reasons for that ruling.

CHARLIE BROWN rents a one-bedroom apartment in from LUCY. The lease is signed on 1-3-18 and CHARLIE, his dog SNOOPY and his bird WOODSTOCK move into the apartment on 2-1-18.

CHARLIE has been shown a “display model” and has never actually seen the apartment he eventually rents. Upon inspection, CHARLIE notices a large tear in the carpeting in the dining room. In addition, the stove has only one burner that works, there is a leaky bathroom faucet and there is something green growing in the bathtub. CHARLIE notifies LUCY who assures CHARLIE the repairs will be made immediately and the growth in the bathtub will be cleaned up. Upon further inspection, CHARLIE discovers that two of the windows are cracked and do not lock. Again he notifies LUCY who promises faithfully to have repairs made. Lastly, the apartment seems to have a perpetual odor that LUCY assures CHARLIE will soon go away.

Shortly after moving into his apartment, CHARLIE decides to start a small business to make some extra money to finance a trip to baseball camp. CHARLIE has no marketable skills but SNOOPY is extremely talented including acrobatic flying, noted author and a prior member of the foreign legion. CHARLIE purchases business cards and uses his home address. While most of their business work is done outside of their home, SNOOPY does most of his writing at the apartment. Because the stove does not work, CHARLIE borrows a camp stove from PEPPERMINT PATTY to prepare their meals. Unfortunately, during a particularly busy cooking spree, CHARLIE allows the flames on the camp stove to get out of control and scorches the kitchen wall and sets the installed window blinds on fire. His only comment is “Good Grief”.

It becomes apparent that SNOOPY needs more privacy for his writing. CHARLIE hires LINUS to make some renovations which include dividing part of the bedroom into an office. Unfortunately, LINUS knocks a big hole in the wall with his hammer when he refuses to let go of us blanket. After CHARLIE has lived in his apartment for three months, a book publisher drops by with a check for SNOOPY. On his way out, he trips over a rug in the hallway and falls down the stairs. He alleges he has injured his back and intends to sue. CHARLIE inspects the stairs and discovers there is one broken stair, the handrail is loose and notices that most of the lights in the hallway are burned out. CHARLIE notifies the landlord who assures him the repairs to the common areas of the apartment complex will be made quickly. CHARLIE reminds LUCY that the tear in the carpet still has not been fixed in his apartment, the stove still does not work, the leaky faucet is now worse, the tub is still green and the odor is becoming unbearable. The repairs are never done to either his apartment or the common areas.

In anticipation of Christmas, CHARLIE and SNOOPY decide to decorate. As usual, SNOOPY’S flair for decorating includes a multitude of lights. Unfortunately, there are too many lights which short out the electrical system and cause a fire. CHARLIE and SNOOPY like the “charcoal brown” affect of the walls and carpet and do not make any repairs. In February of 2018, CHARLIE opens his door to find his little sister SALLY, SCHROEDER, AND PIGPEN. They beg CHARLIE to let them stay. CHARLIE agrees and SALLY, SCHROEDER (along with his piano) and PIGPEN move into the apartment. Two weeks later, while only SALLY is at home, the landlord, using her passkey, opens the door to the apartment to show it to a prospective renter. CHARLIE was not previously notified of the planned showing of his apartment and is angry that the landlord has frightened his little sister. A few months pass and SALLY, SCHROEDER and PIGPEN are still living with him. The apartment is starting to show some wear from too many people in too small a space. PIGPEN is horribly messy and is always surrounded by a cloud of dust. SCHROEDER is so caught up in his music that he does not notice the mess. However, the neighbors have begun to complain about his loud piano playing.

CHARLIE decides to take action and proposes a trip to Florida for spring training. CHARLIE sublets the apartment to “THE LITTLE RED HEADED GIRL” and three of her friends. “RED” agrees to pay directly to the landlord (in cash) $1600/month. “RED” is to tell LUCY that they are delivering the rent on Charlie’s behalf while he is out of town. They are not to inform LUCY about the subletting. “RED” also agrees to pay the utilities during their sublet. “RED” fails to pay the rent as promised nor does she pay the utilities. She knows that CHARLIE has a crush on her and does not think he will attempt to collect. LUCY calls and leaves a message on Charlie’s answering machine at the apartment demanding payment. RED ignores the message. LUCY leaves two more messages over the next 6 weeks. The rent is now 2 months overdue and LUCY is enraged. She goes to the apartment, using her passkey, and discovers the apartment in total disarray and disrepair. In addition, there is a notice on the door that the electricity has been turned off and there is spoiling food in the refrigerator. LUCY calls a moving company and removes all personal property from the apartment and changes the locks. LUCY sells Snoopy’s computer in lieu of back rent and throws the rest away for spite. In addition, LUCY retains the prior deposit but claims it does not cover all the past due rent and damages. CHARLIE returns from Florida to find the locks have been changed and he has no idea where “RED’ and her friends have gone. Shortly after CHARLIE’S return, a special process server hands him a summons. He has been sued by LUCY. CHARLIE decides to file a counterclaim. LEASE By this agreement, made and entered into on 1-3-18, between LUCY, referred to as “Lessor” and CHARLIE BROWN, referred to as “Lessee,” lessor demises, and lets to lessee, and lessee hires and takes as tenant of lessor, apartment no. 509 Schultz Lane, Santa Rosa, California, to be used and occupied by lessee as a residence and for no other purpose whatever, for a term of ONE year beginning on 2-1-18 and ending on 2-4-19 at a rental of$1600.00 per month, payable monthly, in advance, during the entire term of this lease, to lessor at Peanuts Lane, Santa Rosa, California. .

It is further mutually agreed between the parties as follows:

SECURITY DEPOSIT On the execution of this lease, lessee deposits with lessor \$ 1600.00, receipt of which is acknowledged by lessor, as security for the faithful performance by lessee of the terms of this lease agreement, to be returned to lessee, without interest, on the full and faithful performance by lessee of the provisions of this lease agreement.

NUMBER OF OCCUPANTS Lessee agrees that the leased apartment shall be occupied by no more than two persons, consisting of 2 adults without prior, express, and written consent of the lessor.

ASSIGNMENT AND SUBLETTING Without the prior, express, and written consent of lessor, lessee shall not assign this lease, or sublet the premises or any part of the premises.

SHOWING APARTMENT FOR RENTAL Lessee grants permission to lessor to show the apartment to new rental applicants at reasonable hours of the day and only upon giving lessee 24 hours notice of showing.

ENTRY FOR INSPECTION, REPAIRS AND ALTERATIONS Lessor shall have the right to enter the leased premises for inspection at all reasonable hours and whenever necessary to make repairs and alterations of the apartment or the apartment building, or to clean the apartment.

UTILITIES Electricity, gas, telephone service and other utilities are not furnished as a part of this lease unless otherwise indicated in this lease agreement. These expenses are the responsibility of and shall be obtained at the expense of lessee.

REPAIRS, REDECORATION, OR ALTERATION Lessor shall be responsible for repairs to the interior and exterior of the building, provided, however, repairs required through damage caused by lessee shall be charged to lessee as additional rent. It is agreed that lessee will not make or permit to be made any alterations, additions, improvements, or changes in the leased apartment without obtaining the written consent of lessor.

ANIMALS Lessee shall keep no domestic or other animals in or about the apartment or on the apartment house premises without the prior, express, and written consent of lessor.

WASTE, NUISANCE OR UNLAWFUL USE Lessee agrees that he will not commit waste on the premises, or maintain or permit to be maintained a nuisance on the premises, or use or permit the premises to be used in an unlawful manner.

REDELIVERY OF PREMISES At the end of the term of this lease, lessee shall quit and deliver up the premises to lessor in as good condition as they are now, ordinary wear, decay and damage by the elements excepted.

DEFAULT If lessee defaults in the payment of rent or any part of the rent at the times specified above, or if lessee defaults in the performance of or compliance with any other term or condition of this lease agreement, the lease, at the option of lessor, shall terminate and be forfeited, and lessor may reenter the premises and retake possession and recover damages, including costs and attorneys fees. Lessee shall be given 30 days written notice of any default or breach.

IN WITNESS WHEREOF, the parties hereto have hereunder set their hands, the day and year first above written. LESSOR____________________ LUCY LESSEE____________________ CHARLIE BROWN