Case Problem:
Question 1. Hanna owned a Honda and sometimes had work done on it at Henry’s Garage. One day she drove up with a flat tire, parked her car beside the garage, and called to Henry that she had a flat tire and would be back in an hour. Henry fixed the tire. Hanna refused to pay, saying that she had intended to make the repair herself. (A) Was there a contract? Explain completely why or why not and how much Hanna would pay. (B) Suppose Henry also adjusted the carburetor and straightened a fender. Could he recover for this? Explain.
Question 2. Ron Dexter is engaged in the business of towing and storing vehicles. On February 14, 2008, the police recovered a stolen automobile and had it stored at Dexter’s lot. The legal owner of the car, Outback Insurance Company, learned that the automobile, valued at $11,350, was located at Dexter’s facility on May 8, 2008, but took no action to take possession of the vehicle. On July 12, 2008, Dexter discovered that Outback owned the automobile. On July 15, 2008, Dexter gave written notice to Outback that the car was at his storage facility. He enclosed a bill for storage fees at the rate of $30 a day. Outback refused to pay the fees. On July 10, 2009, Outback sued to take possession of the car. Dexter released the car to Outback on July 17, 2009, but sued Outback to recover $15,510 in storage fees. Is Outback obligated to pay $15,510 to Dexter for the storage of the vehicle? Discuss fully why or why not. What legal theories are at issue?