Business legal advise

Q1

Scenario:  Rentals, LLP (Rentals), an office equipment rental company, owns the land, office building and 2 warehouse buildings on which it has been

operating. Rentals advertised the property “For Sale by Owner: $650,000”

on a sign posted on the property, and in various news and sales publications.

A licensed real estate appraiser inspected and valued the property at

$650,000.  The 3 other partners in Rentals selected you to represent them in the sale of the property.

Rentals moved its operations to a location across town where it now leases,

under a signed contract with Business Spaces, Inc, larger office and

warehouse facilities.

The 3 owners of Farmers Feed and Grain Company (Farmers) contacted

Rentals to tour the property. Later, you, representing the partnership,

accepted Farmers invitation to dinner to discuss the property and a possible

sale. You and the 3 owners of Farmers had a leisurely dinner, and 2 glasses

of wine each.   At the end of dinner, the Farmers owners offered Rentals

$475,000 for the property in an all-cash deal, and you accepted on behalf of

the Rentals partnership.

Farmers owners and Rentals partners signed a sales contract for the sale of

the property for $475,000, but before the deal was completed and before the deed was transferred to Farmers, Rentals’ financial advisor urged Rentals to cancel the contract claiming that the contract was unenforceable because the price offered for the sale was too low and below the appraised value.  You, as a representative of Rentals, met with the financial advisor about the matter.

Following the meeting, prepare a memo to the other Rentals partners about the deal with Farmers, advising them about the deal, whether it is valid and enforceable, and why or why not.

Q2

Sabrina Levy, MD, has a medical practice specializing in orthopedic surgery.   Dr. Levy is the medical director of the practice that includes 3 other surgeons, a staff of Registered Nurses, Nurse Practitioners (NPs), x-ray technicians, medical records specialists, IT specialists, reception and office personnel, and a practice management director. 

Following surgery, most patients have x-rays taken at Dr. Levy’s office.  Typically, patients come to Dr. Levy’s office for x-rays, go directly to the c-ray department without seeing a physician, and follow up at a later appointment with a surgeon to discuss x-ray results.

A patient, Dan, has had several x-rays at Dr. Levy’s office for an x-ray, each followed by a later appointment with one of the physicians to discuss results.   Dan refused to pay the $500 bill for the x-rays, claiming that he did not sign a written contract for the x-rays or have a specific oral agreement regarding the x-rays.  An increasing number of patients are also refusing to pay for x-rays claiming that they did not have a written or oral agreement to pay for x-rays.  This has resulted in time-consuming and costly re-billing and collection fees, and sometimes lawsuits for Dr. Levy’s practice.

Dr. Levy asked you, the practice management director, to consult with an attorney specializing in business about this matter, and whether it is necessary to require patients to sign written contracts for x-rays or whether the current procedures for medical services are proper and sufficient. 

Following your meeting with the attorney, write a report summarizing advice to Dr. Levy regarding whether specific written contracts are required for x-rays and why or why not.