ÿWPC‡ Nü¨‡ìêнøxÿfÏàyqÄëcÙƦ|#‡*'& åñÖ¤[Ëܾ€„O.H¯WÏ K˜‹é­8â<2¾ :*úŒÜ wükßegïí!ø7Ù¢µýܳø_]° øàý5E(¹›·”C?k¹´Ç½ò¬£Ø-+•*׎œéT?^ÈÖ©ª<•Îï>ë…Ô}0D6ú8Ž›­è«óÃÞ·÷Eå…2Åò*‡ñ¯‰ Éö}J}‰LºEìäØ® Ô—*1¢ŽÜBTDÀ¹ `÷™/«ÀÙ×­^4hÒþamÂÅâçAÖ¾”¾û>T9“´+9o=NYL(Eî [þèl@?® NÄ!oÃÝïè¹ãá|Ká±’Øø’ˆ‰-|sÔBÛÈ»O¯µoGn»œ¤ö³^V}ÒÒ·ƒÒ·Æ§„°(ºyØôý–ElIÊØÇæôP¤°À Ô{^°UÌÊ•\ þïÔBî’¨Ï]G*Ÿ-GHë!…!Ïü7€­ ãØÏúÜ-SŽ`—bŠä/ËUàŸKÛ©øÖþá\ò8zˆ²ƒ'á–Тy`*å73ïmÈ—ÀŠºA‡ÕÇÂÂIz•óœR­ã€Ã,zY œ #M–¥ÛGJoo.#Á„UNE %“ 0:™^ Ówß4ã÷ m 0U@¯UBïU>1U@ooN¯¯ 0V± 0  0ø § 0¨¯ W 1_ 72ì 1u 72“ 0 dÅ 1‡) 72° 0wâ 0‹YšäU:~~~¸¸¸¸¸¸ 1‡Î 72U˜HP LaserJet 4000 Series PCL$,,,,$0(ÖÃ9 Z‹6Times New Roman RegularX(üœ$¡¡ÔUSUS.,Ôkˆ1s }n1ê:i¢×+003|xÿU‹ÿÀÀÀH$ ÿÿ4Body TextBody TextÓ  ÓÔ  ÔÔ  Ôò òó óÔ  ÔÔ  ÔÓ  Ó(ÖÃ9 Z(Times New Roman ô\  `*Times New RomanTT(ÖÃ9 Z‹&Times New Roman(ÎáA Z‹(Times New Roman (.3½Þ$©©Ý ƒüœ!ÝÔUSUS.,ÔÝ  ÝTVT ÿÿ:Body Text InBody Text InÓ  ÓÓ5+Ü Ü4Œ ä <”ìDœôL¤ü!5ÓÔ  ÔÔ  ÔÔ  ÔÔ  ÔÓ>4°X°` ¸ hÀpÈ xÐ (#>ÓÓ  Ó@YT ÿÿ0_level1_level1Ó  ÓÓ8.ÜÜ4Œ ä <”ìDœôL¤ü!8ÓÔ  ÔÔ  ÔÔ  ÔÔ  ÔÓ>4°X°` ¸ hÀpÈ xÐ (#>ÓÓ  Ó Ý ƒ½Þ)ÝÔUSUS.,ÔÝ  ÝÔ_Ôò òÓ  ÓBoardððs€Analysis€Page€Ú  Ú1Ú  Ú€of€Ú  Ú19Ú  Úó óH0% ÿÿ4heading 1heading 1Ô&  ÔÓ  ÓÔ  ÔÔ  Ôò òó óÔ  ÔÔ  ÔÔ'  ÔÓ  Ó (¦ÙCEMU]emu}AutoList1(1)(1)(1)(1)(1)(1)(1)(1)(1)3#37=CIQYag­­1.a.i.(1)(a)(i)1)a)i)(<·€$´´Ô2¦ÙÔ(Ú  Ú0Ú  Ú)Ô3  Ôà0  à(EhCEKQW]cioAutoList21.1.1.1.1.1.1.1.1.(O?œ$µµà0  àÔ2ª}ÔÚ  Ú0Ú  Ú.Ô3  Ôà0` (#(#à(cyº$¶¶à0  àà0` (#(#àÔ2ª}ÔÚ  ÚAÚ  Ú.Ô3  Ôà0¸ ` (#` (#à Ý ƒ½Þ)ÝÔUSUS.,ÔÝ  ÝÔ_ÔÔ‡#X+9XXXÔÔ‡#ôô¬ òX#X+9Ôò òó óà  àà ` àà ¸ àà@ÊÊÊìàò òÔ#†ôÄ ò ò#ôô¬=#ÔÔ#†Xí,X òôÄ\#ÔBoardððs€Analysis€Page€Ú  Ú12Ú  Ú€of€Ú  Ú19Ú  Úó óÔ‡ôÄ òXXí,ÔÔ‡#ôô¬ ò òôÄÔ)OfÀAZ‹"Futura Lt BT  Ñ „ Ñ0ª}CEKQW]cioAutoList3A.1.A.A.A.A.A.A.,A.Ý ƒüœ!ÝÔUSUS.,ÔÝ  ÝÔ_Ôò òÓ  ÓJULY€2004€BAR€EXAMINATIONÐ ° ÐÌÖ€ÿÿÖBOARD€ANALYSISÐ ˆØ ÐÌQUESTION€1Ð `° ÐÌó óÔ‡ X©·XXXÔÓ  ÓThese€facts€require€the€applicant€to€determine€whether€or€not€a€contract€for€the€sale€of€real€estateÐ 8 ˆ Ðwhich€provides€for€settlement€on€a€date€certain€and€that€includes€a€statement€that€ð ðtime€is€of€theÐ $ t Ðessenceðð€is€in€fact€an€ð ðessentialðð€condition€of€the€contract€or€merely€a€ð ðformalðð€provision.Ð  ` ÐÌà  àThis€answer€determines€whether€or€not€the€Buyer€can€succeed€in€this€action€to€compelÐ è 8  Ðspecific€performance€by€the€Seller€who€has€repudiated€the€contract.Ð Ô$  ÐÌà  àWhile€many€contracts€may€contain€ð ðtime€is€of€the€essenceðð€provisions,€the€conduct€of€theÐ ¬ü  Ðparties€or€the€facts€and€circumstances€surrounding€the€transaction€may€establish€that€theÐ ˜è  Ðprovision€is€formal€rather€than€an€essential€provision.Ð „Ô  ÐÌà  àIn€an€ordinary€case€of€contract€for€the€sale€of€land,€even€though€a€certain€period€of€time€isÐ \¬ Ðstipulated€for€its€consummation,€equity€treats€the€provisions€as€formal€rather€than€essential€andÐ H˜ Ðpermits€a€purchaser€who€has€permitted€the€period€to€lapse€to€make€payment€after€the€prescribedÐ 4„ Ðdate€and€to€compel€performance€by€the€seller€within€a€reasonable€time€notwithstanding€the€delay,Ð  p Ðunless€it€appears€that€time€is€of€the€essence€of€the€contract€by€express€stipulation€or€by€inferenceÐ  \ Ðfrom€the€conduct€of€the€parties,€the€special€purposes€for€which€the€sale€was€made,€or€otherÐ øH Ðcircumstances€surrounding€the€sale.€Ð ä4 ÐÌà  àIn€these€facts€there€is€an€express€stipulation€that€time€is€of€the€essence.€€Buyer€canÐ ¼  Ðovercome€the€specific€provision€by€establishing€that€the€parties€did€not€intend€to€establish€anÐ ¨ø Ðunyielding€date€of€settlement.€€The€fact€that€Seller€set€60€days€after€signing€of€the€contract€forÐ ”ä Ðclosing€was€based€upon€his€best€estimate€of€when€his€new€house€would€be€ready€for€occupancy€isÐ €Ð Ðirrelevant€on€the€issue€as€it€was€not€made€a€pre„condition€to€closing€on€that€date.€€It€would€also€beÐ l¼ Ðinadmissible€to€vary€the€terms€of€the€written€contract€as€Ô_ÔviolativeÔ_Ô€of€the€parole€evidence€rule.€€Ð X ¨ ÐÌà  àThe€fact€that€Buyerððs€attorney€had€not€completed€an€examination€of€title€on€February€27,Ð 0"€  Ð2004€is€also€irrelevant€and€would€not€excuse€Buyer€from€tendering€payment€on€or€before€thatÐ #l! Ðdate.€€Ð $X" ÐÌà  àBuyer€can€point€to€the€extension€of€time€granted€several€days€after€the€initial€settlementÐ à%0!$ Ðdate€had€expired€as€a€waiver€by€Seller€of€the€essence€clause€or€that€the€extension€indicates€thatÐ Ì&"% Ðthe€closing€date€was€not€considered€essential€by€Seller.€€It€is€generally€held€that€such€an€extensionÐ ¸'#& Ðfixes€a€new€time€by€which€settlement€is€to€be€made€but€does€not€waive€the€requirement€that€theÐ ¤(ô#' Ðsettlement€must€be€made€by€the€date€fixed.€€Ð )à$( ÐÌà  àBy€the€terms€of€the€contract,€Seller€was€obligated€to€deliver€possession€of€the€propertyÐ h+¸&* Ðand€a€deed€to€Buyer€ð ðupon€paymentðð€of€the€balance€of€the€purchase€price€at€settlement.€€ThisÐ ° Ðrequired€Buyer€to€tender€payment€and€was€a€condition€precedent€to€performance€by€Seller.€€ThisÐ œì Ðfailure€to€do€so€would€constitute€a€default€if€time€was€of€the€essence€and€the€Seller€did€not€waiveÐ ˆØ Ðor€otherwise€excuse€performance.€€By€modifying€the€contract€to€extend€the€date€of€closing€itÐ tÄ Ðcould€also€be€inferred€that€Buyer€was€aware€that€his€right€to€demand€a€deed€would€beÐ `° Ðextinguished€after€March€11,€2004.€€Ð L œ ÐÌà  àThis€is€insufficient€evidence€in€these€facts€to€conclude€that€Seller€did€not€intend€to€insistÐ $ t Ðon€timely€performance€by€Buyer,€or€that€Buyer€relied€on€any€conduct€on€the€part€of€Seller€to€hisÐ  ` Ðdetriment€that€would€trigger€the€doctrine€of€equitable€estoppel.Ð ü L  ÐÌà  àBuyer€would€not€be€successful€in€his€complaint€for€specific€performance€but€he€may€beÐ Ô$  Ðentitled€to€the€return€of€his€down€payment€in€the€absence€of€a€liquidated€damages€clause€in€theÐ À  Ðcontract€of€sale.€€Ð ¬ü  Ðò òÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÐ h+¸&* ЇÔ#†Xí,XX X©·×#ÔÔ‡ X©·XXXí,ÔÓ  ÓQUESTION€2ó óÐ ° ÐÓNÓÌÝ‚ ÿÿÿÝÓ  ÓÔ  ÔÔ  Ôò òÝ  ÝÐ ˆØ ÐÝ‚ ÿÿÿŽƒÝó óÔ  ÔÔ  ÔÓ  ÓÝ  ÝòòActions€brought€by€Eddie:óóÐ tÄ ÐÌòòa.€Eddie€v.€Molly:óóÐ L œ ÐÌEddie€would€argue€that€Molly€committed€the€following€torts€against€him€ð!ðnegligence,€battery,Ð $ t Ðand€intentional€infliction€of€emotional€distress.€€Ð  ` ÐÌMolly€acted€in€a€negligent€manner€for€once€she€assumed€the€duty€to€come€to€the€aid€of€Eddie€sheÐ è 8  Ðhad€a€duty€to€act€reasonably€and€her€failure€to€do€so€was€the€direct€and€proximate€cause€of€hisÐ Ô$  Ðinjuries.€€Ð À  ÐÌA€battery€occurred€because€there€was€an€Ô_ÔunpermittedÔ_Ô€and€intentional€contact€to€Eddieððs€personÐ ˜è  Ðthat€was€caused€by€Molly.€€Molly€may€counter€that€she€intended€to€scare€Ô_ÔVichussÔ_Ô.€€She€may€beÐ „Ô  Ðsuccessful€if€doctrine€of€transferred€intent€can€only€be€applied€between€individuals€and€notÐ pÀ Ðbetween€an€animal€and€a€person.Ð \¬ ÐÌEddie€may€bring€a€claim€for€intentional€infliction€of€emotional€distress.€€A€claim€of€Ô_ÔIIEDÔ_Ô€€hasÐ 4„ Ðfour€elements:€(1)€conduct€that€is€intentional€or€reckless;€(2)conduct€that€is€extreme€andÐ  p Ðoutrageous;€(3)€a€causal€connection€between€the€wrongful€conduct€and€the€emotional€distress;Ð  \ Ðand€(4)€€severe€emotional€distress.€€òòÔ_ÔManikhiÔ_Ô€v.€Mass€Transit€óóAdministration,€360€Md.€333,€367Ð øH Ð(2000)€€Eddie€may€be€successful€since€Molly€acted€recklessly€and€outrageously€by€discharging€aÐ ä4 Ðfirearm€in€a€reckless€manner€and€Eddie€has€suffered€actual€damages€as€a€result.€€€€Ð Ð  ÐÌMolly€may€argue€that€sheððs€protected€by€the€privilege€of€defense€of€others,€and€that€she€acted€as€aÐ ¨ø Ðreasonable€person€would€have€under€the€circumstances.€€Ð ”ä ÐÌòòb.€Eddie€v.€Town€of€Beverly:óóÐ l¼ ÐÌEddie€may€try€to€sue€the€Town€for€Mollyððs€actions€since€she€arguably€acted€under€color€of€itsÐ D!” Ðauthority.€€She€was€on€duty€checking€meters€and€in€uniform.€€The€Town€would€counter€thatÐ 0"€  ÐMolly€acted€outside€of€the€scope€of€her€employment€as€a€meter€maid€by€carrying€a€weapon€andÐ #l! Ðdischarging€it,€and€that€it,€therefore,€cannot€be€held€liable.Ð $X" ÐÌòòc.€Eddie€v.€June:óóÐ à%0!$ ÐÌEddie€may€also€argue€that€June€was€negligent€in€releasing€Ô_ÔVichussÔ_Ô€without€the€muzzle€since€herÐ ¸'#& Ðactions€were€Ô_ÔviolativeÔ_Ô€of€the€Townððs€Ordinance€and€the€resulting€bite€would€be€the€type€of€actionÐ ¤(ô#' Ðthat€the€ordinance€sought€to€avoid.€€òòHammond€v.€óóRobins,€60€Md.€App.€430€(1984)€€June€mayÐ )à$( Ðcounter€that€she€used€reasonable€force€to€counter€the€threat€she€perceived€Molly€to€be.Ð |*Ì%) ÐÐ h+¸&* ÐJune€will€be€strictly€liable€for€Eddieððs€injuries€as€she€knew€or€with€reasonable€care€should€haveÐ ° Ðknown€that€Ô_ÔVichussÔ_Ô€€had€a€propensity€to€bite.€€òòÔ_ÔPahaneshÔ_Ô€v.€Western€Trails,€Inc.óó,€69€Md.€App.€342Ð œì Ð(1986)€Ð ˆØ Ðò òòòÌActions€brought€by€Molly:óóÐ `° Ðó óÐ L œ Ðòòa.€Molly€v.€Ward:óóÐ 8 ˆ ÐÌ€Molly€may€sue€Ward€for€negligence€in€his€operation€of€his€vehicle.€€As€a€driver€he€owes€all€otherÐ  ` Ðdrivers€and€pedestrians€the€duty€to€be€aware€as€he€drives€and€not€to€be€engrossed€in€changing€hisÐ ü L  ÐCDs.€€It€is€not€unusual€to€expect€people€to€be€in€the€middle€of€residential€streets.€€€Ward€mayÐ è 8  Ðassert€that€Molly€was€Ô_ÔcontributorilyÔ_Ô€negligent€in€being€frozen€in€the€street,€but€he€had€the€lastÐ Ô$  Ðclear€chance€to€avoid€the€accident€had€he€been€more€attentive€to€his€driving.€€€€Molly€may€not€beÐ À  Ðawarded€damages€for€any€generalized€ð ðrecurring€anxietyðð€however.Ð ¬ü  ÐÌòòb.€Molly€v.€June:óóÐ „Ô  ÐÌMolly€may€also€assert€a€negligence€action€against€June€since€she€violated€the€ordinance€by€Ð \¬ Ðreleasing€Vichuss€and€the€resulting€harm€is€one€that€the€ordinance€sought€to€avoid.€(SeeÐ H˜ Ðdiscussion,€òòsupraóó)€€€June€may€assert€that€she€correctly€came€to€the€aid€of€the€children€and€usedÐ 4„ Ðthe€minimum€ð ðforceðð€to€counter€the€threat€she€reasonably€perceived€Molly€to€be.€€Ð  p ÐÔ#†Xí,XX X©·/#ÔÔ‡ X©·XXXí,Ôò òà  àà ` àà ¸ àà  àà h àà À àà  àà p àà È àà  àà x àà Ð àÐ  \ ÐÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÐ h+¸&* ЇÔ#†Xí,XX X©·º&#ÔÔ‡ X©·XXXí,ÔÓ  ÓQUESTION€3ó óÐ ° ÐÓí'ÓÌà  àFirst€Bank€has€a€perfected€security€interest€in€all€E„Ô_ÔTronicsÔ_Ô€inventory€and€equipment.Ð ˆØ Ðà  àÌà  àòòFax€EquipmentóóÐ `° Ðà  àÌà  àFirst€Bankððs€security€interest€has€priority€over€Two€Guys€interest€in€the€fax€equipment.€Ð 8 ˆ ÐTwo€Guys€failed€to€file€a€financing€statement€during€the€20€day€temporary€perfection€period€asÐ $ t Ðprovided€in€CL€9„312(f)€and€9„324(a).Ð  ` Ðà  àÌà  àòòComputer€EquipmentóóÐ è 8  Ðà  àÌà  àTwo€Guysðð€purchase€money€security€interest€in€the€computer€equipment€has€priority€overÐ À  ÐFirst€Bank.€€Two€Guysðð€filed€the€financing€statement€within€the€20€day€temporary€perfectionÐ ¬ü  Ðperiod€as€allowed€in€CL€9„324(a).€€Two€Guys€purchase€money€security€interest,€therefore,€takesÐ ˜è  Ðpriority€over€conflicting€security€interests€in€the€same€collateral.Ð „Ô  Ðà  àÌà  àòòTelevisions.óóÐ \¬ Ðà  àÌà  àFirst€Bankððs€security€interest€in€the€televisions€has€priority€over€Third€National€Bankððs.€Ð 4„ ÐCL€9„324(b).€€The€televisions€are€inventory.€€CL9„102(48).Ð  p Ðà  àÌà  àThird€National€Bank€failed€to€perfect€a€security€interest€in€the€televisions€prior€to€theÐ øH Ðdebtor€receiving€possession.€€The€20€day€grace€period€does€not€apply€to€inventory.€€Additionally,Ð ä4 ÐThird€National€Bank€failed€to€send€an€authenticated€notice€to€First€Bank€informing€it€of€ThirdÐ Ð  ÐNational€Bankððs€intention€to€take€a€security€interest€in€the€televisions.Ð ¼  Ðà  àÌà  àAll€three€secured€creditors€have€a€priority€over€general€creditors,€based€on€the€securedÐ ”ä Ðcreditorsðð€perfected€security€interests.Ð €Ð Ðà  àÌÓ  Óà @ àò òEXTRACT€SECTIONS€FOR€QUESTION€3Ð X ¨ Ðó óÓ 0ÓÌò òAnnotated€Code€of€Maryland,€Commercial€Law€ArticleÐ 0"€  ÐÌÔ#†Xí,XX X©·Î'#ÔÔ‡ X©·XXXí,ÔTITLE€9.€SECURED€TRANSACTIONS:€ðð€9„102,€9„312,€9„324Ð $X" ÐÌÌÌÌÌÌÌÐ h+¸&* ЇÓ  ÓQUESTION€4Ð ° ÐÓb1ÓÌÌÔ#†Xí,XX X©·Ú0#ÔÔ‡ X©·XXXí,Ô1.à  àThe€Supply€Contract:Ð tÄ Ðà  àó óThis€contract€is€a€sale€covered€under€Article€2€of€the€UCC.€€The€contract€is€written€and,Ð `° Ðtherefore,€complies€with€the€statute€of€frauds€for€a€sale€of€goods,€Commercial€Law€Article€ðð2„Ð L œ Ð201(Ô_ÔiÔ_Ô).€€The€provisions€of€Commercial€Law€Article€ðð2„210€govern€the€Ô_ÔassignabilityÔ_Ô€of€the€supplyÐ 8 ˆ Ðcontract.€€The€statute€holds€that€ð ðA€party€may€perform€his€duty€through€a€delegate€unlessÐ $ t Ðotherwise€agreed€or€unless€the€other€party€has€a€substantial€interest€in€having€his€originalÐ  ` ÐÔ_ÔpromisorÔ_Ô€perform€or€control€the€acts€required€by€the€contractðð.€€Furthermore,€unless€otherwiseÐ ü L  Ðagreed€all€rights€of€either€seller€or€buyer€can€be€assigned€except€where€the€assignment€wouldÐ è 8  Ðmaterially€change€the€duty€of€the€other€party,€or€increase€materially€the€burden€or€risk€imposed€onÐ Ô$  Ðhim€by€his€contract,€or€impair€materially€his€chance€of€obtaining€return€performance.€€A€right€toÐ À  Ðdamages€for€breach€of€the€whole€contract€or€a€right€arising€out€of€the€assignorððs€due€performanceÐ ¬ü  Ðof€his€entire€obligation€can€be€assigned€despite€agreement€otherwise.Ð ˜è  Ðà  àÌà  àThere€is€nothing€that€prevents€Ô_ÔMegaÔ_Ô€Mini€from€performing€the€provisions€of€the€contractÐ pÀ Ðand€is€clearly€assignable.€€See,€òòò òÔ_ÔMackeÔ_Ô€Co.€v.€Pizza€of€Gaithersburg,€Inc.,€259€Md.€479,€270€A.2dÐ \¬ Ð645€(1970).óóó ó€€€In€the€absence€of€a€contrary€provision,€the€rights€and€duties€under€an€executoryÐ H˜ Ðbilateral€contract€may€be€assigned€and€delegated.Ð 4„ Ðà  àÌà  àThere€is€no€difference€between€the€product€Pete€happened€to€get€from€Ô_ÔCheezeÔ_Ô€and€thatÐ  \ Ðsupplied€by€Ô_ÔMegaÔ_Ô€Mini.€€There€was€not€a€material€change€in€the€performance€of€obligationsÐ øH Ðunder€the€supply€contract€as€would€justify€Peteððs€refusal€to€recognize€the€assignment.€€Therefore,Ð ä4 Ðthe€supply€contract€is€enforceable€by€Ô_ÔMegaÔ_Ô€Mini.Ð Ð  ÐÌò ò2.à  àThe€Advertising€ContractÐ ¨ø Ðà  àÌà  àó óA€written€contract€to€be€performed€over€more€than€one€year€satisfies€the€statute€of€frauds.Ð €Ð Ððð5„901,€Courts€Art.€€€This€is€a€personal€services€contract€and€not€governed€by€the€UCC€but€ratherÐ l¼ Ðby€general€contract€law.€€Maryland€law€has€long€held€that€an€advertising€agency€could€notÐ X ¨ Ðdelegate€its€duties€under€a€contract,€which€had€been€entered€into€by€an€advertiser€who€had€reliedÐ D!” Ðon€the€agencyððs€skill,€judgment€and€taste.€òòò òEastern€Advertising€Co.€v.€Ô_ÔMcGawÔ_Ô€&€Co.,€89€Md.€72,Ð 0"€  Ð42€A.€923€(1899).€€€óóó óThis€is€exactly€the€situation€here€and€as€such€a€personal€services€contract€isÐ #l! Ðnot€assignable.€€ð ðRare€genius€and€extraordinary€skill€are€not€transferable,€and€contracts€for€theirÐ $X" Ðemployment€are€therefore€personal,€and€cannot€be€assigned.ðð€€òòÔ_ÔMackeÔ_Ô,€Supra.óó€€Ô_ÔMegaÔ_Ô€Mini€willÐ ô$D # Ðthus€be€unable€to€enforce€the€advertising€contract.Ð à%0!$ Ðà  àÌò ò3.ó óà  àò òDamages€for€Breach€of€the€Supply€ContractÐ ¸'#& Ðà  àó óÌà  àÔ_ÔMegaÔ_Ô€Mini€would€only€be€entitled€to€damages€under€the€supply€contract.€€Its€damagesÐ )à$( Ðwould€not€be€the€$1,000,000€estimated€value€of€the€total€goods€purchased€but€rather€Ô_ÔMegaÔ_Ô€MiniððsÐ |*Ì%) Ðlost€profits.€€To€recover€direct€profits€in€a€breach€of€contract€case,€the€measure€of€damages€is€theÐ h+¸&* Ðdifference€between€what€it€would€have€cost€Ô_ÔMegaÔ_Ô€Mini€to€perform€and€what€Ô_ÔMegaÔ_Ô€Mini€wouldÐ ° Ðhave€received€had€repudiation€not€occurred.€€òòÔ_ÔMackeÔ_Ô,€270€A.2d€at€650.óóÐ œì Ðà  àÌà  àÔ_ÔMegaÔ_Ô€Mini€would€also€be€entitled€to€any€compensatory€damages€that€arose€from€thisÐ tÄ Ðbreach€including€any€expenditures€made€in€preparation€of€or€upon€reliance€of€the€contract.€Ð `° ÐòòÔ_ÔWartzmanÔ_Ô€v.€Ô_ÔHightowerÔ_Ô€Productions,€óó53€Md.€App.€656€(1983).Ð L œ Ðà  àÌà  àThere€is€no€claim€for€punitive€damages€in€a€contract€action.€€òòMiller€Building€Supply€v.Ð $ t ÐRosen,€óó305€Md.€341€(1986).Ð  ` Ðà  àÌò òÓ  ÓEXTRACT€SECTIONS€FOR€QUESTION€4ó óÔ#†Xí,XX X©·Â1#ÔÔ‡ X©·XXXí,ÔÐ è 8  ÐÓæEÓÌò òAnnotated€Code€of€Maryland,€COURTS€AND€JUDICIAL€PROCEEDINGSÐ À  ÐÌTITLE€5.€LIMITATIONS,€PROHIBITED€ACTIONS,€AND€IMMUNITIES:€ðð€5„901Ð ˜è  ÐÌAnnotated€Code€of€Maryland,€COMMERCIAL€LAWÐ pÀ ÐÌTITLE€2.€SALES:€ðð€2„102,€2„106,€2„201,€2„210Ð H˜ Ðà  àà ` àà ¸ àà  àà h àà À àà  àà p àÌÌÌÌÌÌÌó óÔ#†Xí,XX X©·7F#ÔÌÌà  àà ` àà ¸ àà  àà h àà À àà  àà p àà È àÌÌÌÌÌÌÌÌÌÌÌÌÌÌÐ h+¸&* Ðò òò òÓ  Óó óÔ‡Xí,XXXí,ÔQUESTION€5ó óÐ ° ÐÓÒHÓÌà  àÌà  àPursuant€to€Rule€8.5€of€the€Maryland€Rules€of€Professional€Conduct€(ð ðRuleðð€or€ð ðRulesðð,Ð tÄ Ðas€the€context€may€require)€Amanda€is€subject€to€the€disciplinary€authority€of€Maryland,€evenÐ `° Ðthough€she€is€not€a€member€of€the€Maryland€Bar€because€she€provided€legal€services€to€HeavenÐ L œ Ðand€Universe€in€Maryland.€€The€facts€reveal€that€Amanda€has€violated€€the€following:Ð 8 ˆ ÐÌà0  àà0` (#(#àà  à1)à ` àRule€5.5€ð!ð€Practice€of€law€in€Maryland€in€violation€of€the€laws€of€that€jurisdiction.Ð `` (#` (# ÐÌà0  àà0` (#(#àà  à2)à ` àRule€1.5€„€Reasonableness€of€fees.€€It€is€questionable€whether€Amandaððs€fees€ofÐ è 8  Ð$350€per€hour€for€the€time€expended€together€with€the€ten€percent€(10%)€memberÐ Ô$  Ðinterest€in€Universe€is€reasonable€given€her€experience€and€her€failure€to€satisfyÐ À  Ðmany€of€the€criteria€of€Rule€1.5(a)(1)€through€(6).Ьü ` (#` (# ÐÌà0  àà0` (#(#àà  à3)à ` àRules€1.7€(a)€and€(b)€(conflicts€of€interest)€and€1.13€(organization)€have€beenÐ „Ô  Ðviolated€in€that€Amanda€represented€Heaven€and€she€should€not€have€undertakenÐ pÀ Ðeither€to€represent€Max€individually€or€to€create€Universe€as€both€of€theseÐ \¬ Ðrepresentations€were€directly€adverse€to€Heaven.€€In€addition,€her€representationÐ H˜ Ðwill€be€materially€limited€by€her€responsibility€to€Heaven,€by€her€own€interests€asÐ 4„ Ða€member€of€Universe€and€as€counsel€to€both€Heaven€and€Universe.€€In€thisÐ  p Ðmatter,€Amanda€failed€to€consult€with€Heaven€and€Morley€(in€accordance€withÐ  \ Ðrule€1.7(c))€prior€to€undertaking€to€represent€Max€and€Universe.€ÐøH` (#` (# ÐÌà0  àà0` (#(#àà  à4)à ` àRule€1.8(a)€„€Prohibits€a€lawyer€from€entering€into€a€business€transaction€with€theÐ Ð  Ðclient€unless€the€transaction€is€fair€and€reasonable,€and€the€client€is€advised€to€seekÐ ¼  Ðthe€advice€of€independent€counsel€and€is€given€a€reasonable€opportunity€to€do€so.€Ð ¨ø ÐAmanda€failed€to€comply€with€the€requirements€of€Rule€1.8(a)€in€obtaining€aÐ ”ä Ðmember€interest€in€Universe.ЀÐ` (#` (# ÐÌà0  àà0` (#(#àà  à5)à ` àRule€8.4(a)€„€Misconduct€attributable€to€violation€of€the€Rules.ÐX ¨` (#` (# ÐÌà0  àà0` (#(#àà  à6)à ` àRule€8.1(b)€„€Failure€to€provide€information€to€disciplinary€authority,€òòAttorneyÐ 0"€  ÐGrievance€Commission€v.€Ô_ÔFezellÔ_Ôóó€361€Md€254,€760€A.2d€1108€(2000);€òòAttorneyÐ #l! ÐGrievance€Commission€v.€Ô_ÔVanderlindeÔ_Ô,óó€364€Md€376,€773€A.€2d€463€(2001)€andÐ $X" ÐòòAttorney€Grievance€Commission€v.€Ô_ÔDuvallÔ_Ô,óó€373€Md€482,€819€A.€2d€343€(2003).Ðô$D #` (#` (# Ðà0  àÐ (#(# Ðà0  àÐ (#(# Ðà0  àÐ (#(# Ðà0  àÐ (#(# Ðà0  àÔ#†Xí,XXXí,áH#ÔÐ (#(# ÐÌÐ h+¸&* ЇÓ  Óò òà @ àQUESTION€6ó óÐ ° ÐÌÓ  Óà  à1.€à0 ` àGenerally,€if€the€grounds€for€divorce€occur€outside€the€State€of€Maryland,€a€party€ÐˆØ` (#` (# Ðcannot€apply€for€a€divorce€unless€one€of€them€has€resided€in€the€State€of€Maryland€for€one€(1)Ð tÄ Ðyear.€€Since€Brenda€committed€adultery€in€Cumberland,€Maryland,€Al€does€not€have€to€wait€untilÐ `° ÐDecember,€2004€to€file€and€can€file€his€complaint€now€if€he€wishes.€€See€Family€Law€article€SecÐ L œ Ð7„101(a).Ð 8 ˆ ÐÌÓ€ (Eh83ÓØ! !ØÝ"‚·€"ÝÝ  Ýà  àÝ‚·€‡YÝÔ2EhÔÚ  Ú2Ú  Ú.Ô3  Ôà0 ` àÝ  ÝSocial€Security€benefits€may€not€be€considered€marital€property€and€are€not݃·€‡YÀY݌Р`` (#` (# ÐŒÝ  Ýsubject€to€distribution€or€division€in€any€manner€in€a€divorce€case.€€See€Pleasant€vs.€Pleasant€97Ð ü L  ÐMd€App.€711€632€A2d€202€(1993).€Brendaððs€entitlement€to€social€security€benefits€could€be€aÐ è 8  Ðfactor€in€the€determination€of€Brendaððs€entitlement€to€a€monetary€award€from€Al,€however.Ð Ô$  ÐÌÝ"‚·€"ÝÝ  Ýà  àÝ‚·€\ÝÔ2EhÔÚ  Ú3Ú  Ú.Ô3  Ôà0 ` àÝ  Ý(A.)Townhouse€„€Al€initially€acquired€it€while€the€parties€were€living€together€but€Ýƒ·€\<\݌Ьü ` (#` (# ÐŒÝ  Ýnot€married€so€it€is€initially€a€non„marital€asset.€€Mortgage€payments€were€satisfied€by€the€rentalÐ ˜è  Ðincome€so€that€increase€in€equity€by€virtue€of€reduction€in€the€principal€balance€of€the€mortgageÐ „Ô  Ðis€not€a€marital€asset.€€After€the€parties€married€and€moved€to€the€property€using€it€as€their€maritalÐ pÀ Ðresidence€in€December,€2003,€from€that€date€forward,€if€Al€makes€mortgage€payments€fromÐ \¬ Ðmarital€earnings€that€portion€of€mortgage€principal€reduction€could€be€a€marital€property€assetÐ H˜ Ðthat€could€form€the€basis€for€a€monetary€award€in€Brendaððs€favor.€€Ð 4„ ÐÌà  àà ` à(B).à0 ¸ àThe€1000€shares€in€Turk,€Inc.€was€given€to€Al€by€his€father€(3òòrdóó€person)€Ð \¸ (#¸ (# Ðand€titled€in€his€name€alone€and€is€non„marital€property€(Family€Law€Article€Section€8„Ð øH Ð201(e)(3)(ii)).Ð ä4 ÐÌà  àà ` à(C).à0 ¸ àThe€Mutual€fund€is€a€marital€asset€acquired€from€marital€earnings€during€Ð¼ ¸ (#¸ (# Ðthe€marriage€and€since€titled€in€Alððs€name,€could€be€a€source€of€a€monetary€award€in€BrendaððsÐ ¨ø Ðfavor.Ð ”ä ÐÌà  àà ` à(D).à0 ¸ à500€shares€received€in€December,€2003€based€on€a€stock€split€is€a€non„Ðl¼¸ (#¸ (# Ðmarital€asset€generated€from€a€non„marital€asset.€See€Ô_ÔWilenÔ_Ô€vs.€Ô_ÔWilenÔ_Ô,€61€Md€App€337,€486€A2dÐ X ¨ Ð775€(1985).Ð D!” ÐÌò òà  àà ` àÌó óÝ"‚·€"ÝÝ  Ýà  àÝ‚·€›cÝÔ2EhÔÚ  Ú4Ú  Ú.Ô3  Ôà0 ` àÝ  ÝSocial€Security€Disability€Dependency€benefits€to€Sally.݃·€›cÔcÝŒÐ$X"` (#` (# ÐŒÝ  ÝÌà  àà ` àCurrent€case€law€suggest€these€payments€do€not€result€in€an€automatic€creditÐ à%0!$ Ðagainst€a€parentððs€child€support€obligation.€Section€12„202(a)€of€the€Family€Law€Article€does€notÐ Ì&"% Ðspecifically€provide€that€income€received€by€a€child€is€to€be€considered€as€a€factor€in€deviatingÐ ¸'#& Ðfrom€the€guidelines.€€A€court€has€discretion,€if€circumstances€warrant,€to€adjust€the€amount€of€aÐ ¤(ô#' Ðparentððs€child€support€obligation€but€the€court€would€be€obligated€to€make€a€finding€that€theÐ )à$( Ðdeviation€serves€the€best€interest€of€the€child.€See€Drummond€vs.€State€350€Md€502€714€A2d€163Ð |*Ì%) Ð(1998)€and€see€Tucker€vs.€Tucker,€No.€501,€September€Term,€2003,ò ò€ó óCourt€of€Special€Appeals.Ð h+¸&* Їà  àà ` àRecent€legislation€passed€by€the€House€and€Senate€(Senate€Bill€928)€confirms€thatÐ ° Ðwith€the€passage€of€the€legislation€the€amount€of€Social€Security€dependency€income€paid€to€theÐ œì Ðchild€will€be€treated€as€income€to€the€disabled€person,€but€the€amount€is€to€be€set€off€against€theÐ ˆØ Ðchild€support€obligation€of€the€parent€whose€disability€generated€the€payment.ò òÐ tÄ ÐÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÐ h+¸&* ÐÓ  ÓQUESTION€7ó óÐ ° ÐÓðiÓÌÔ‡Xí,XXXí,Ôà  àThe€Act€can€be€challenged€on€a€variety€of€grounds.€€Ð ˆØ ÐÌà  àFirst,€while€Section€5€of€the€Fourteenth€Amendment€gives€Congress€the€power€to€enactÐ `° Ðlegislation€to€enforce€its€provisions,€this€grant€of€authority€does€not€extend€to€making€decisionsÐ L œ Ðas€to€the€extent€of€constitutional€protections.€€This€function€is€a€judicial€one€and€is€exclusivelyÐ 8 ˆ Ðreserved€to€the€courts€pursuant€to€the€doctrine€of€separation€of€powers.€€òòCity€of€Ô_ÔBoerneÔ_Ô€v.€Floresóó,Ð $ t Ð521€U.S.€507,€517€„€521;€117€S.€Ct.€2157;€138€L.€Ed.€2d€624€(1997);òòóó.€€Congress€does€not€have€theÐ  ` Ðauthority€to€set€aside€judicial€decisions€interpreting€and€applying€the€Constitution.€€òòÔ_ÔDickersonÔ_Ô€v.Ð ü L  ÐUnited€Statesóó,€530€U.S.€428,€437,€120€S.€Ct.€2326;€147€L.€Ed.€2d€405€(2000).€€Thus€Section€2€ofÐ è 8  Ðthe€Act€is€unconstitutional.Ð Ô$  ÐÌà  à2.€€Congress€does€not€have€the€power€to€direct€State€officials€to€enforce€federal€laws,€suchÐ ¬ü  Ðas€the€prohibition€against€same€sex€marriages€contained€in€Section€3€of€the€Act.€€òòÔ_ÔPrintzÔ_Ô€v.€UnitedÐ ˜è  ÐStates,€óó521€U.S.€898€(1997)€(provisions€of€gun€control€legislation€requiring€local€lawÐ „Ô  Ðenforcement€officers€to€perform€background€checks€is€inconsistent€with€concept€that€"theÐ pÀ ÐConstitution€confers€upon€Congress€the€power€to€regulate€individuals,€not€States.")€€This€is€trueÐ \¬ Ðeven€if€the€federal€mandate€is€intended€to€be€a€temporary€measure€pending€adopting€of€anÐ H˜ Ðoverarching€federal€regulatory€scheme.€òò€Idóó.€€Thus,€Section€4€of€the€Act€is€unconstitutional.Ð 4„ ÐÌà  à3.€€Congress€does€not€have€the€power€to€compel€state€legislatures€to€take,€or€refrain€fromÐ  \ Ðtaking,€legislative€action.€€òòNew€York€v.€United€Statesóó,€505€U.S.€144,€112€S.€Ct.€2408,€120€L.€Ed.Ð øH Ð2d€120€(1992)€€Thus,€Section€5€is€unconstitutional.Ð ä4 ÐÌà  à4.€€While€the€Supreme€Courtððs€decisions€in€this€area€are€not€completely€consistent,€a€goodÐ ¼  Ðargument€can€be€made€based€upon€the€Supreme€Courtððs€Fourteenth€Amendment€jurisprudenceÐ ¨ø Ðthat€Section€5€of€the€Fourteenth€Amendment€gives€Congress€the€power€to€create€remedies€forÐ ”ä Ðviolations€of€the€provisions€of€that€amendment€but€not€the€authority€to€set€out€the€substantiveÐ €Ð Ðscope€of€the€amendment€itself;€òòcompare€The€Civil€Rights€Casesóó,€109€U.€S.€3,€13„14€(1883)€€(ð ðTheÐ l¼ Ðlegislation€which€Congress€is€authorized€to€adopt€is€not€general€legislation€upon€the€rights€ofÐ X ¨ Ðcitizens€but€corrective€legislationðð)€and€òòÔ_ÔBoerneÔ_Ô€v.€Flores,€supraóó,€withòò€Ô_ÔKatzenbachÔ_Ô€v.€Morganóó,Ð D!” Ð384€U.S.€641€(1966).€€Thus,€Section€5€does€not€give€Congress€the€power€to€prohibit€same€sexÐ 0"€  Ðmarriages.€€The€authority€to€regulate€marriage€would€be€reserved€to€the€State€under€theÐ #l! Ðprovisions€of€the€10òòthóó€Amendment.€€òòSee€United€States€v.€Morrisonóó,€120€S.€Ct.€1740€(2000)€Ð $X" Ð(Congress€may€not€regulate€non„economic€criminal€behavior€based€solely€on€the€aggregate€effectÐ ô$D # Ðof€such€behavior€on€interstate€commerce€for€to€do€so€would€render€the€10òòthóó€€Amendment€aÐ à%0!$ Ðnullity.)òòóó€€Such€reasoning€would€lead€to€the€conclusion€that€the€Act€is€invalid€in€its€entirety.€€òòSeeÐ Ì&"% Ðalso€Lawrence€v.€Texasóó,€539€U.S.€558€(2003)€(Texas€anti„sodomy€law€invalidated€as€violatedÐ ¸'#& Ðsubstantive€due€process;€€majority€(per€Justice€Kennedy)€and€dissenters€(per€Justice€Scalia)Ð ¤(ô#' Ðdisagree€as€to€whether€decision€invalidates€same€sex€marriage€prohibitions.Ð )à$( ÐÌÐ h+¸&* ЇÓ  Óò òQUESTION€8ó óÐ ° ÐÌÓŠzÓ(a)€òòThe€PhotographóóÐ ˆØ ÐÌà  àAn€objection€should€be€made€based€on€the€photographððs€not€being€relevant.€€MarylandÐ `° ÐRule€5„402€states€in€pertinent€part€that€ð ðall€relevant€evidence€is€admissible.€€Evidence€that€is€notÐ L œ Ðrelevant€is€not€admissible.ðð€€Evidence€is€relevant€and€therefore€admissible€€ð ðif€it€tends€either€toÐ 8 ˆ Ðestablish€or€disprove€the€issue€in€dispute.ðð€€òòBanks€v.€State,óó€84€Md.€App.€582,€589€(1990);€òòLucasÐ $ t Ðv.€State,óó€116€Md.€App.€559€(1997),€òòcert.€deniedóó,€348€Md.€206€(1997).€€Carlððs€lawyer€should€argueÐ  ` Ðthat€a€photograph€of€the€defendant€kneeling€behind€stacks€of€money€has€nothing€to€do€withÐ ü L  Ðpossession€of€cocaine€with€the€intent€to€distribute.€€Money€can€be€made€through€legal€activity,Ð è 8  Ðand€people€are€free€to€be€photographed€with€their€money.€€In€other€words,€the€photograph€doesÐ Ô$  Ðnot€tend€to€establish€that€Carl€possessed€cocaine€with€the€intent€to€distribute,€and€therefore€isÐ À  Ðirrelevant.€€The€State,€however,€should€counter€that€Carlððs€connection€to€the€apartment€isÐ ¬ü  Ðimportant€because€it€helps€to€establish€that€Carl€was€involved€in€processing€and€distributing€crackÐ ˜è  Ðcocaine,€not€just€visiting€the€apartment€to€purchase€it.€€The€photograph€being€in€a€backroom€ofÐ „Ô  Ðthe€apartment€ð ðtends€to€establishðð€that€Carl€had€more€than€a€casual€connection€to€the€apartment,Ð pÀ Ðand€therefore€is€relevant,€and€the€objection€probably€will€be€overruled€by€the€judge.€€TheÐ \¬ Ðprosecution€may€authenticate€the€photograph€by€identifying€Carl€as€the€person€in€the€picture.€€òòSeeÐ H˜ ÐLucas€v.€State,€supraóó.Ð 4„ ÐÌà  àAssuming€that€the€photograph€is€relevant,€Carlððs€lawyer€should€object€to€its€beingÐ  \ Ðallowed€into€evidence€based€on€Maryland€Rule€5„403,€which€states€in€pertinent€part€that€relevantÐ øH Ðevidence€ð ðmay€be€excluded€if€its€probative€value€is€substantially€outweighed€by€the€danger€ofÐ ä4 Ðunfair€prejudice.ðð€€Introducing€the€photograph€into€evidence€may€unfairly€prejudice€Carl€becauseÐ Ð  Ðlarge€amounts€of€cash€often€are€associated€with€the€drug€culture.€€The€balance€of€the€probativeÐ ¼  Ðvalue€of€the€photograph€(connecting€Carl€to€the€apartment)€against€its€prejudice€to€the€defendantÐ ¨ø Ð(drug€culture€association)€is€ð ðcommitted€to€the€trial€judgeððs€sound€discretion.ðð€€òòBedford€v.€Stateóó,Ð ”ä Ð317€Md.€659€(1989).€€A€Courtððs€determination€in€this€area€will€not€be€disturbed€unless€plainlyÐ €Ð Ðarbitrary.€€òòJohnson€v.€Stateóó,€303€Md.€487€(1985).€€Although€the€photograph€is€prejudicial,€givenÐ l¼ Ðthe€connection€it€creates€between€Carl€and€the€stash€house,€a€judge€likely€will€overrule€theÐ X ¨ Ðobjection,€and€such€a€decision€will€not€be€seen€as€ð ðplainly€arbitraryðð.Ð D!” ÐÌà  à(b)€òòCarlððs€Prior€ConvictionóóÐ #l! ÐÌÖ€"ìÖà  àMaryland€Rule€5„404(b)€does€not€allow€evidence€of€other€crimes€ð ðto€prove€the€characterÐ ô$D # Ðof€a€person€in€order€to€show€action€in€conformity€therewith.ðð€€However,€evidence€of€other€crimesÐ à%0!$ Ðmay€be€ð ðadmissible€for€other€purposes,€such€as€proof€of€motive,€opportunity,€intent€,€preparation,Ð Ì&"% Ðcommon€scheme€or€plan,€knowledge,€identity€or€absence€of€mistake€or€accident.ðð€€None€of€theÐ ¸'#& Ðexceptions€under€the€Rule€is€applicable,€and€therefore€the€objection€should€be€sustained€by€theÐ ¤(ô#' Ðjudge.€€Ð )à$( Ðà  àÌà  àThe€conviction€is€not€admissible€in€the€Stateððs€case„in„chief;€but€may€be€introduced€inÐ h+¸&* Ðrebuttal€if€defendant€testifies€to€impeach€his€credibility.€€See€Maryland€Rule€5„609€which€sets€outÐ ° Ða€three€part€test:€€1.€is€the€conviction€more€than€15€years€old?€€2.€€is€it€an€infamous€crime€or€otherÐ œì Ðcrime€relevant€to€a€witnesses€credibility?€and€3.€€does€the€probative€value€of€evidence€outweighÐ ˆØ Ðthe€danger€of€unfair€prejudice€to€the€witness?€€Here€the€conviction€falls€with€the€15€year€timeÐ tÄ Ðlimit.€€Theft€is€a€crime€relevant€to€credibility,€òòJackson€v.€Stateóó,€340€Md.€705€(1995).€€The€trialÐ `° Ðjudge€must€weigh€the€probative€value€v.€prejudice€factors.€€Based€on€the€facts,€the€court€wouldÐ L œ Ðprobably€allow€the€State€to€introduce€evidence€of€the€conviction.Ð 8 ˆ ÐÌà  àc)€òòCarlððs€Offer€to€Testify€Against€RoyóóÐ  ` ÐÌà  àMaryland€Rule€5„410(4)€provides,€in€pertinent€part,€that€statements€are€not€admissibleÐ è 8  Ðthat€are€made€ð ðin€the€course€of€plea€discussions€with€an€attorney€for€the€prosecuting€authorityÐ Ô$  Ðwhich€do€not€result€in€a€plea€of€guilty.ðð€€The€facts€state€that€Carl€offered€to€testify€against€Roy€inÐ À  Ðexchange€for€probation,€which€was€rejected€by€the€prosecutor.€€This€indicates€that€the€statementÐ ¬ü  Ðwas€made€in€connection€with€plea€discussions€that€did€not€result€in€a€plea€of€guilty,€and€thereforeÐ ˜è  Ðis€not€admissible.€€This€ruling€will€be€the€same€whether€the€proffer€of€evidence€is€made€duringÐ „Ô  Ðthe€Stateððs€case„in„chief€or€in€rebuttal.Ð pÀ ÐÌÐ  H˜ ÐÔ#†Xí,XXXí,/j#ÔÔ‡Xí,XXXí,ÔÓ  Óò òÑ€&¿SÑQUESTION€9ó óÔ#†Xí,XXXí,E‘#ÔÐ ° ÐÓ  Óò òÔ‡ X©·XXXí,Ôó óÌà  àInitially,€Parsnip€and€the€òòBugleóó€should€file€a€motion€to€dismiss€for€insufficiency€of€serviceÐ ˆØ Ðof€process€(Rule€2„322€(a)(4))€and€improper€venue€(Rule€2„322€(a)€(2).€€Under€Maryland€Rule€2„Ð tÄ Ð322€(a),€these€motions€must€be€filed€prior€to€filing€an€answer€or€these€preliminary€defenses€areÐ `° Ðwaived.€€Ð L œ ÐÌà  àThe€Court€should€grant€the€motions.€€However,€in€granting€the€motions,€the€Court€shouldÐ $ t Ðrequire€that€proper€service€be€made€on€the€defendants€as€required€under€Maryland€Rule€2„121€(a),Ð  ` Ðand€transfer€venue€of€the€case€to€Somerset€County€as€permitted€in€Rule€2„327€(b).Ð ü L  ÐÌà  àService€on€the€defendants€was€improper€because€the€facts€state€that€the€Ô_ÔDoolittlesÔ_Ô'€madeÐ Ô$  Ðservice€via€first€class€mail.€€To€be€effective,€service€of€initial€process€may€be€made€by€mail€onlyÐ À  Ðif€made€"by€mailing€to€the€person€to€be€served€a€copy€of€the€summons,€complaint,€and€all€otherÐ ¬ü  Ðpapers€filed€with€it€by€certified€mail€requesting:€€'Restricted€Delivery€„„€show€to€whom,€date,Ð ˜è  Ðaddress€of€delivery.'€€Service€by€certified€mail€under€this€Rule€is€complete€upon€delivery."€RuleÐ „Ô  Ð2„121€(a)€(3).€€The€defect€in€service€can€be€remedied€by€mailing€the€summons€and€complaint€asÐ pÀ Ðrequired€by€the€Rule€without€prejudice€to€the€Defendant.€€Ð \¬ ÐÌà  àAlthough€the€defendants€can€also€correctly€assert€that€the€Circuit€Court€for€PrinceÐ 4„ ÐGeorge's€County€is€not€the€proper€venue€for€the€action€to€be€heard,€the€Court€need€not€dismiss€theÐ  p Ðaction.€€Under€Md.€Code€Ann.€Ô_ÔCtsÔ_Ô.€&€Ô_ÔJudÔ_Ô.€Proc.€("Ô_ÔCJPÔ_Ô")€ðð6„201€(a),€the€action€should€have€beenÐ  \ Ðfiled€"in€a€county€where€the€defendant€resides,€carries€on€a€regular€business,€is€employed,€orÐ øH Ðhabitually€engages€in€a€vocation."€€According€to€the€facts,€Parsnip€resides€and€operates€herÐ ä4 Ðbusiness€in€Somerset€County.€€Although€the€òòBugleóó€solicits€advertisers€in€Prince€Georgeððs€CountyÐ Ð  Ðit€should€not€be€deemed€doing€business€in€that€county€absent€other€contacts.€€òòDavidson€TransferÐ ¼  Ðand€Storage€Co.€v.€Christian€óó197€Md€392,€79€A.2d,€541€(1951).€€The€exemptions€from€thisÐ ¨ø Ðrequirement€in€ðððð6„202€and€6„203€are€not€applicable€in€this€case,€therefore€the€action€shouldÐ ”ä Ðhave€been€filed€in€Somerset€County,€not€in€Prince€George's€County.€€If€the€Court€sustains€theÐ €Ð Ðdefense€of€improper€venue€in€this€case,€which€it€should,€the€Court€can€transfer€the€action€toÐ l¼ ÐSomerset€County€if€the€Court€determines€that€"in€the€interest€of€justice€the€action€should€not€beÐ X ¨ Ðdismissed."€€(Rule€2„327€(b)).Ð D!” ÐÌà  àIn€addition€to€these€two€mandatory€preliminary€motions,€Parsnip€and€the€òòBugleóó€have€otherÐ #l! Ðgrounds€to€request€dismissal€of€at€least€one€of€the€claims€in€the€action.€€Although€the€generalÐ $X" Ðstatute€of€limitations€is€three€years€(Ô_ÔCJPÔ_Ô€ðð5„101),€Eliza's€claim€for€damages€for€libel€or€slander€isÐ ô$D # Ðgoverned€by€Ô_ÔCJPÔ_Ô€ðð5„105€and€is€barred€by€limitations.€€The€statute€of€limitations€for€thoseÐ à%0!$ Ðintentional€torts€is€one€year.€€Eliza€filed€her€action€on€March€15,€2004,€which€is€more€than€oneÐ Ì&"% Ðyear€after€the€January€12,€2003€publication€of€the€defamatory€statements€by€Parsnip.€€ParsnipÐ ¸'#& Ðshould€file€a€motion€to€dismiss€this€Count€and€the€Court€should€grant€it.€Ð ¤(ô#' ÐÌà  àDonna's€claims€for€damages€for€libel€or€slander,€on€the€other€hand,€are€not€barred€byÐ |*Ì%) Ðlimitations.€€At€the€time€that€Parsnip€published€her€libelous€statements,€Donna€was€a€minor.€€TheÐ h+¸&* Ðfacts€state€that€the€Complaint€was€filed€on€the€day€after€Donna's€18òòthóó€birthday.€€This€means€thatÐ ° ÐDonna€was€a€minor€until€one€day€before€the€suit€was€filed.€Under€Ô_ÔCJPÔ_Ô€ðð€5„201,€a€statute€ofÐ œì Ðlimitation€is€extended€for€a€minor€until€"the€lesser€of€three€years€or€the€applicable€period€ofÐ ˆØ Ðlimitations€after€the€date€the€disability€was€removed."€€In€this€case,€the€"disability"€was€removedÐ tÄ Ðon€March€14,€2004.€€Donna€had€one€year€from€that€date€or€until€March€13,€2005€to€file€her€claimÐ `° Ðfor€damages€for€libel€or€slander.€€Donna's€complaint€was€timely€filed.Ð L œ ÐÌà  àThe€counts€for€false€light€defamation€and€intentional€infliction€of€emotional€distressÐ $ t Ðshould€both€survive€preliminary€motions€to€dismiss.€€Those€counts€are€both€subject€to€the€generalÐ  ` Ðthree€year€statute€of€limitations€in€Ô_ÔCJPÔ_Ô€ðð5„101.€€The€Complaint€for€those€counts€was€timely€filed.Ð ü L  ÐÔ#†Xí,XX X©·Ø‘#ÔÌò òAnnotated€code€of€Maryland,€COURTS€AND€JUDICIAL€PROCEEDINGSÐ Ô$  ÐÌTITLE€5.€LIMITATIONS,€PROHIBITED€ACTIONS,€AND€IMMUNITIES:à x àÐ ¬ü  Ðà  àÌà  àðð€5„101,€5„105,€5„201Ð „Ô  ÐÌTITLE€6.€PERSONAL€JURISDICTION,€VENUE€PROCESS€AND€PRACTICE:Ð \¬ ÐÌà  àðð€6„201,€6„202,€6„203,€6„301,€6„312Ð 4„ ÐÌAnnotated€Code€of€Maryland,€MARYLAND€RULESÐ  \ ÐÌTITLE€1.€€GENERAL€PROVISIONS:€Rules€1„202,€1„203Ð ä4 ÐÌTITLE€2.€€CIVIL€PROCEDURE€„€CIRCUIT€COURT:€Rules€2„121,€2„124,€2„311,€2„321,€Ð ¼  Ðà  à€€€€2„322,€2„327Ð ¨ø Ðó óÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÐ h+¸&* ЇÓ  ÓÔ‡ X©·XXXí,Ôò òQUESTION€10ó óÐ ° ÐÌÓ±©Óò òÔ#†Xí,XX X©·½©#ÔÔ‡ X©·XXXí,ÔLandlordððs€positionó óÐ ˆØ ÐÌà  àBoth€Will€and€Grace€are€in€violation€of€their€respective€leases.€€Grace€made€a€unilateralÐ `° Ðdecision€to€sublet€a€portion€of€her€premises€to€a€co„tenant.€€Will€made€a€unilateral€decision€toÐ L œ Ðfirst€reduce€his€rent€and€then€to€vacate€the€premises€because€he€had€concerns€about€the€effect€thatÐ 8 ˆ ÐGraceððs€business€had€on€his€flower€and€card€shop.Ð $ t ÐÌà  àLandlord€may€be€at€fault€in€his€treatment€of€Grace.€€Although€she€arguably€breached€theÐ ü L  Ðexpress€term€of€the€lease€by€entering€into€a€co„tenancy,€Landlord€effectively€waived€his€right€toÐ è 8  Ðprotest€the€breach€when€he€continued€to€accept€rent€after€becoming€aware€of€the€situation:Ð Ô$  ÐÌÝ‚ÿÿÿÝÓ  ÓÓ?+Ü Ü4Œ ä <”ìDœôL¤ü!°œX?ÓÔ  ÔÔ  ÔÝ  Ýà0  àWaiver€is€the€intentional€relinquishment€of€a€known€right€or€such€conduct€as€warrants€anÐ ¬ü  Ðinference€of€the€relinquishment€of€such€a€rightð8ð.€An€act€of€the€lessor€which€is€frequentlyÐ ˜è  Ðrelied€upon€to€establish€waiver€is€his€acceptance€of€rent€from€the€assignee€withÐ „Ô  Ðknowledge€of€the€assignmentð8ð.€Thus,€we€apply€in€Maryland€the€universal€rule€that€aÐ pÀ Ðwaiver€of€forfeiture€may€occur€by€an€acceptance€of€rent€which€accrues€after€the€lessor€isÐ \¬ Ðon€notice€that€a€breach€has€been€committed€by€the€lesseeð8ð.ÐH˜(#(# ÐÝ‚ÿÿÿ™­ƒÝÔ  ÔÔ  ÔÓ! °œXÜÜ‹Xü!!ÓÓ  ÓÝ  ÝÓiUÜÜ4Œ ä <”ìDœôL¤ü!T$¬&)\+´- 0d2¼47l9Ä;>t@ÌB°œXiÓÌòòÔ_ÔChertkofÔ_Ô€v.€Southland€Corporationóó,€280€Md.€1,€371€A€2d€124,€127€(1977).€€Despite€this€waiver,Ð  p ÐLandlord€may€notify€Grace€that€her€co„tenantððs€use€of€the€property€has€caused€a€nuisance€andÐ  \ Ðmust€cease€or€Grace€will€be€evicted.Ð øH ÐÌLandlord€may€fare€better€against€Will.€€At€common€law,€Landlord€had€three€avenues€of€redressÐ Ð  Ðagainst€a€tenant€that€abandons€a€commercial€lease€prior€to€its€expiration:Ð ¼  ÐÝ‚ÿÿÿÝÓ  ÓÓB.ÜÜ4Œ ä <”ìDœôL¤ü!ÜÜšXBÓÔ  ÔÔ  ÔÝ  Ýà0 Ü àà0Ü(#Ü(#àà Ü àð"ðà  àLandlord€could€accept€the€surrender€of€the€lease€and€terminate€the€tenancy;€if€so€tenantððsÐ ¨ø Ðobligation€to€pay€rent€ceasesДä(#(# Ðà0 Ü àà0Ü(#Ü(#àà Ü àð"ðà  àLandlord€could€reenter€premises,€attempt€to€re„let€the€premises,€and€hold€tenant€liable€forÐ €Ð Ðany€accrued€rent€at€the€time€of€reentry,€as€well€as€any€future€deficiencies€if€unable€to€re„letÐ l¼ Ðor€unable€to€re„let€at€the€same€rentÐX ¨(#(# Ðà0 Ü àà0Ü(#Ü(#àà Ü àð"ðà  àLandlord€could€do€nothing€and€hold€tenant€liable€for€the€entire€rent€(although€some€courtsÐ D!” Ðno€longer€look€favorably€upon€this€option)Ð0"€ (#(# ÐÝ‚ÿÿÿ…³ƒÝÔ  ÔÔ  ÔÓ' ÜÜšXÜÜ‚,Œ ‰Xü!'ÓÓ  ÓÝ  ÝÓiUÜÜ4Œ ä <”ìDœôL¤ü!T$¬&)\+´- 0d2¼47l9Ä;>t@ÌBÜÜšXiÓÌòòCircuit€City€Stores,€Inc.€v.€Rockville€Pike€Joint€Venture€Limited€Partnershipóó,€376€Md.€331,€829Ð $X" ÐA.2d€976€(2003)€Ð ô$D # ÐÌÝ‚ÿÿÿÝÔ& Ø ÔÓ  ÓÔ  ÔÔ  Ôò òÝ  ÝÔ  ÔWillððs€positionÔ Ý ¹Ôó óÐ Ì&"% ÐÝ‚ÿÁ¸ÐgovÝÔ  ÔÔ  ÔÔ'ØÌ&ѸÔÓ  ÓÔ_ÔÝ  ÝÌà  àWill€may€argue€there€was€a€constructive€eviction€when€he€experienced€problems€with€hisÐ ¤(ô#' Ðtenancy€and€Landlord€failed€to€address€them.€€However,€Will€must€show€that€the€premisesÐ )à$( Ðbecame€uninhabitable€as€a€result€of€Landlordððs€actions,€or€by€its€procurement.€€òòÔ_ÔMcNallyÔ_Ô€v.Ð |*Ì%) ÐÔ_ÔMoserÔ_Ôóó,€210€Md.€127€(1956)€€€Moreover,€Will€must€prove€that€he€abandoned€the€premises€as€aÐ h+¸&* Ðresult€of€the€action€complained€of€and€the€abandonment€must€occur€within€a€reasonable€time€ofÐ ° Ðsaid€action.€€Will€has€not€shown€that€the€premises€can€no€longer€be€used€as€a€card€shop€and€hisÐ œì Ðabandonment€occurred€nearly€a€half„year€after€he€first€complained€of€the€odor.€€He€may,Ð ˆØ Ðtherefore,€still€be€liable.€€òòSeeóó,€òòStandard€Brewing€Company€v.€Weilóó,€129€Md.€487€(1916)€Ð tÄ ÐÌWill€may€also€argue€that€the€Landlord€and/or€Grace€were€negligent€in€allowing€the€nuisanceÐ L œ Ðcaused€by€the€nail€business.€€Four€elements€must€be€shown€to€succeed€on€his€negligence€claim:Ð 8 ˆ Ð(1)€that€the€Landlord/Grace€had€a€duty€to€protect€Will€from€injury;€(2)€that€the€duty€wasÐ $ t Ðbreached;€(3)€that€Will€suffered€actual€injury€or€loss;€and€(4)€that€the€loss€or€injury€resulted€fromÐ  ` ÐLandlord/Graceððs€breach.€€A€Landlord€is€clearly€liable€for€injuries€that€result€from€common€areasÐ ü L  Ðover€which€it€retains€control,€but€ordinarily€has€no€obligation€to€maintain€the€leased€portion€ofÐ è 8  Ðthe€premises.€€However,€in€a€situation€such€as€the€one€at€bar,€where€the€Landlord€becomes€awareÐ Ô$  Ðof€the€fact€that€a€tenant€has€created€a€hazardous€condition€he€may€be€liable€for€the€resulting€harmÐ À  Ðto€another€tenant€since€he€could€have€informed€Grace€that€her€failure€to€abate€the€conditionÐ ¬ü  Ðwould€result€in€her€eviction.€€òòMatthews€v.€Ô_ÔAmberwoodÔ_Ô€Associates,€Ô_ÔL.L.P.Ô_Ôóó,€351€Md.€544,€558Ð ˜è  Ð(1998);€òòRealty€Co.€v.€National€Distillers€Products€Corp.óó,€196€Md.€274,€279€(1950).€€Even€ifÐ „Ô  ÐLandlord€could€not€successfully€evict€Grace€due€to€his€waiver€of€her€breach,€he€would€haveÐ pÀ Ðfulfilled€his€duty€to€protect€Will€from€the€harmful€effects€of€the€nail€business€by€instituting€anÐ \¬ Ðeviction€proceeding.€€òòMatthews,€óón.€3.€€Ð H˜ ÐÔ& ì ÔÔ'ì4ÄÔÌÔ& œ ÔWill€may€have€a€private€nuisance€claim€against€Grace€for€the€harm€suffered€as€a€result€of€the€nailÐ  p Ðsalonððs€activities,€since€it€diminished€the€value€of€his€property.€€Grace,€as€a€co„tenant,€had€a€dutyÐ  \ Ðto€not€allow€a€nuisance€to€occur€that€unreasonably€interfered€with€Willððs€tenancy.€€Will€may€alsoÐ øH Ðhave€a€cause€of€action€sounding€in€negligence.€€Grace€does€not€appear€to€have€a€defense€to€eitherÐ ä4 Ðsuit€by€Will€unless€she€can€show€that€the€nail€business€did€not€result€in€the€harm€experienced.€€Ô'œ "ÄÔÐ Ð  ÐÌÔ#†Xí,XX X©·9ª#ÔÔ‡ X©·XXXí,ÔÐ ¨ø ÐÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÓ  ÓÐ  h+¸&* Ðà @ àò òQUESTION€11ó óÐ ° ÐÓÇÓÌA.€à0  àDefense€counsel.ЈØ(#(# ÐÌÝ"‚ ?œ"ÝÝ  Ýà  àÝ‚ ?œ¦ÇÝà0 ` àÔ2EhÔÚ  Ú1Ú  Ú.Ô3  Ôà0¸ ` (#` (#àÝ  ÝDefense€counsel€will€object€to€the€Stateððs€use€of€Mary€Janeððs€notes€and€Ýƒ ?œ¦ÇßÇÝŒÐ`°¸ (#¸ (# ÐŒÝ  Ýwill€make€a€motion€for€the€immediate€return€of€the€notes€to€Mary€Jane€and€the€suppression€of€theÐ L œ Ðuse€of€her€notes€by€the€State.Ð 8 ˆ ÐÌÝ"‚ ?œ"ÝÝ  Ýà  àÝ‚ ?œ†ÉÝà0 ` àÔ2EhÔÚ  Ú2Ú  Ú.Ô3  Ôà0¸ ` (#` (#àÝ  ÝDefense€counsel€may€also€consider€filing€a€motion€for€mistrial€depending€Ýƒ ?œ†É¿É݌Р`¸ (#¸ (# ÐŒÝ  Ýupon€the€substance€of€Mary€Janeððs€notes€and€defense€counselððs€perception€of€how€the€case€isÐ ü L  Ðgoing€for€the€defense.Ð è 8  ÐÌÝ"‚ ?œ"ÝÝ  Ýà  àÝ‚ ?œZËÝà0 ` àÔ2EhÔÚ  Ú3Ú  Ú.Ô3  Ôà0¸ ` (#` (#àÝ  ÝThe€notes€are€protected€by€the€attorney„client€privilege€and€the€attorney€Ýƒ ?œZË“ËÝŒÐÀ ¸ (#¸ (# ÐŒÝ  Ýwork€product€privilege.€€Defense€counsel€requested€Mary€Jane€to€make€the€notes€for€use€duringÐ ¬ü  Ðthe€trial.€€The€notes€contained€Mary€Janeððs€comments€regarding€the€testimony€and€exhibitsÐ ˜è  Ðpresented€Ô_ÔsoÔ_Ô€far€at€trial€for€use€by€her€attorney.Ð „Ô  ÐÌÝ"‚ ?œ"ÝÝ  Ýà  àÝ‚ ?œØÍÝà0 ` àÔ2EhÔÚ  Ú4Ú  Ú.Ô3  Ôà0¸ ` (#` (#àÝ  ÝFourth€Amendment€violation.€€Defense€counsel€may€argue€that€there€was€Ýƒ ?œØÍÎÝŒÐ\¬¸ (#¸ (# ÐŒÝ  Ýan€illegal€search€of€the€lock„up€by€the€deputy€sheriff€where€the€notes€were€found€and€read€and€anÐ H˜ Ðillegal€seizure€when€the€notes€were€turned€over€to€the€prosecutor€instead€of€being€returnedÐ 4„ Ðdirectly€to€Mary€Jane.Ð  p ÐÌÝ"‚ ?œ"ÝÝ  Ýà  àÝ‚ ?œÐÝà0 ` àÔ2EhÔÚ  Ú5Ú  Ú.Ô3  Ôà0¸ ` (#` (#àÝ  ÝSixth€Amendment€violation.€€Defense€counsel€will€argue€that€Mary€Jane€Ýƒ ?œÐRÐÝŒÐøH¸ (#¸ (# ÐŒÝ  Ýhas€a€right€to€counsel€in€the€trial€of€her€criminal€charge.€€That€right€was€violated€when€the€deputyÐ ä4 Ðsheriff€realized€the€notes€were€about€the€ongoing€trial,€but€failed€to€return€the€notes€to€Mary€Jane,Ð Ð  Ðinstead€providing€the€notes€to€the€prosecutor.€€If€the€prosecutor€is€allowed€to€use€Mary€JaneððsÐ ¼  Ðnotes€in€the€trial,€confidential€information€between€attorney€and€client€is€exposed.€€At€aÐ ¨ø Ðminimum,€the€notes€would€contain€those€parts€of€the€testimony€and€exhibits€that€Mary€JaneÐ ”ä Ðwanted€to€comment€upon€and€wanted€to€discuss€with€her€attorney.Ð €Ð ÐÌÝ"‚·€"ÝÝ  Ýà  àÝ‚·€äÓÝÔ2EhÔÚ  Ú5Ú  Ú.Ô3  Ôà0 ` àÝ  ÝCourtððs€ruling.€€There€was€no€Fourth€Amendment€violation€by€the€discovery€of€Ýƒ·€äÓÔÝŒÐX ¨` (#` (# ÐŒÝ  ÝMary€Janeððs€notes€in€the€lock„up€as€she€was€an€inmate€and€there€was€no€reasonable€expectationÐ D!” Ðof€privacy€there.€òòòòò òHudson€v.€Palmeró óóóóó,€468€U.S.€517,€526,104€S.€Ct.€3194,€82€L.Ed2d€393€(1984).€Ð 0"€  ÐThe€notes€were€not€marked€confidential€or€privileged.€€However,€instead€of€giving€Mary€JaneððsÐ #l! Ðnotes€to€the€prosecutor,€the€deputy€sheriff€should€have€returned€the€notes€to€Mary€Jane€uponÐ $X" Ðrealizing€the€notes€were€about€an€ongoing€trial.€€There€was€a€Sixth€Amendment€violation€of€MaryÐ ô$D # ÐJaneððs€right€to€counsel€because€the€notes€were€confidential€communications€between€Mary€JaneÐ à%0!$ Ðand€her€attorney€and€the€State€wanted€to€make€use€of€Mary€Janeððs€notes€in€its€case.€€The€attorney„Ð Ì&"% Ðclient€Privilege,€codified€in€section€9„108€of€the€Courts€and€Judicial€Proceedings€Article,€and€theÐ ¸'#& Ðattorney€work€product€privilege€were€both€potentially€violated.Ð ¤(ô#' ÐÌòòòòCarter€v.€State,óóóó€149€Md.€App.€509,€519„522,€817€A.2d€277€(2003)Ð |*Ì%) ÐòòòòHudson€v.€Palmeróóóó,€468€U.S.€517,€526,€104€S.€Ct.€3194,€82€Ô_ÔL.EdÔ_Ô.2d€393€(1984)Ð h+¸&* ÐÑ&¿SÑâ &âÑ„°Ñâ &âÑ  Ñò òÓ  ÓQUESTION€12ó óÐ „ ÐÓKÚÓÌà  àThe€following€principles€are€applicable€to€this€fact€pattern:€Ð \Ø ÐÌà  àA€corporation€may€provide€by€its€charter€for€any€preference,€right,€restriction,€includingÐ 4° Ðrestrictions€on€transferability.Ð  œ ÐÌà  àIf€the€corporation€which€issues€the€stock€imposes€a€restriction€on€transferability€the€stockÐ ø t Ðcertificate€should€contain€a€full€statement€of€the€restriction(s);€or€a€statement€that€the€corporationÐ ä ` Ðwill€furnish€information€about€the€restriction€to€a€shareholder€on€request€without€charge.€Ð Ð L  ÐÌà  àA€restriction€in€the€transfer€of€a€security€imposed€by€the€issuer€(Zero,€Inc.)€even€ifÐ ¨ $  Ðotherwise€lawful,€is€ineffective€against€a€person€without€knowledge€of€the€restriction€unless€theÐ ”  Ðsecurity€is€certified€and€the€restriction€is€noted€conspicuously€on€the€security€certificate.€€Ð €ü  ÐÌà0  àà0` (#(#àà  àA.à ` àRights€of€Zero,€Inc.€€Its€right€to€acquire€the€stock€of€a€shareholder€is€limited€toÐ XÔ  Ðacquisition€upon€death€of€the€stockholder.€€It€is€not€a€party€to€the€buy„sellÐ DÀ Ðagreement€among€its€stockholders€and€it€obtained€no€pro„rata€purchase€right€inÐ 0¬ Ðthat€agreement.€€Ð˜` (#` (# ÐÌà0  àà0` (#(#àThe€agreement€among€all€of€the€shareholders€of€Zero,€Inc.€granting€each€the€rightÐ ôp Ðto€acquire€a€Ô  Ôòòpro€rataóóÔ  ÔÔ  Ô€share€of€the€stock€of€a€selling€shareholder€is€valid€andÐ à\ Ðenforceable.€€Abe€violated€the€agreement€when€he€sold€100€shares€to€Ed.€€Dan€andÐ ÌH Ðthe€other€stockholders,€Ben€and€Chris,€were€each€entitled€to€a€Ô  ÔÔ  Ôòòpro€rataóóÔ  ÔÔ  Ô€share€if€theyÐ ¸4 Ðelected€to€purchase.€€They€will€have€a€cause€of€action€against€Abe€for€violating€theÐ ¤  Ðagreement.€Ð ` (#` (# Ðà0  àà0` (#(#àÐ ` (#` (# Ðà0  àà0` (#(#àBecause€the€terms€of€the€restriction€on€transferability€in€the€buy„sell€agreementÐ hä Ðamong€the€shareholders€was€not€on€the€stock€certificates,€it€cannot€be€enforcedÐ TÐ Ðagainst€Ed€who€was€a€Ô  ÔÔ  Ôòòbona€fideóóÔ  ÔÔ  Ô€purchaser€for€value€without€notice€of€theÐ @¼ Ðrestriction.€Ð,¨` (#` (# Ðà0  àà0` (#(#àÐ ` (#` (# Ðà0  àà0` (#(#àThe€restriction€noted€on€the€Zero,€Inc.€stock€certificates€at€the€time€of€issuanceÐ !€  Ðcreated€an€enforceable€right€in€Zero,€Inc.€to€purchase€Benððs€stock€upon€his€death.€Ð ð!l! ÐBenððs€personal€representative€holds€the€stock€as€part€of€Benððs€estate€and€isÐ Ü"X" Ðobligated€to€sell€the€shares€to€Zero,€Inc.€at€$300€per€share€notwithstanding€theÐ È#D # Ðvalue€of€the€500€shares€is€substantially€higher€than€the€price€agreed€upon€at€theÐ ´$0!$ Ðtime€of€issuance.€€Ð %"%` (#` (# Ðà0  àà0` (#(#àÐ ` (#` (# ÐÒe°Òà0  àà0` s#s#àFran€is€charged€with€actual€or€constructive€notice€of€the€restriction€onÐ x'ô#' Ðtransferability€of€the€stock€because€it€was€conspicuously€noted€on€each€certificate.€Ð d(à$( ÐFran€cannot€be€a€Ô  ÔÔ  Ôòòbona€fide€óóÔ  ÔÔ  Ôpurchaser€under€this€circumstance.€€The€contract€to€sellÐ P)Ì%) ÐBenððs€stock€to€Fran€at€market€value€is€invalid€and€Zero,€Inc.€can€enforce€its€right€toÐ <*¸&* Ðpurchase€against€Benððs€personal€representative€at€the€agreed€upon€price€of€$300.€€Ô#†Xí,XX X©·ÀÆ#Ô