Burgertown Case Summary

1) Issue: If the termination of the lease is not correct, then who would be liable for the cost of rebuilding the structure?
Rule: The owner selling of the leased premises to a third party does not terminate the lease.
Analysis: Many leases for commercial structures require the tenant to rebuild the structure if it was destroyed out of the control of the landlord. The destruction was caused by a flood which is out of the control of a landlord.
Conclusion: Burgertown would be held liable for the rebuilding of the structure since the lease says that the tenant has to rebuild the structure.

2) Issue: There was a leak found by the Environmental Protection Agency at a waste disposal site. Who of these private parties would have to pay to clean it up?
Analysis: All three companies were on the site at the time of the leakage and disposing of waste.
Conclusion: Beta, Ace’s Parent Company, and Delta Bank could all be held liable to pay for cleaning up the waste that leaked.
3) Issue: The management at Sport Shoes Corporation wants to expand into the foreign investment and employment markets. What advantages and disadvantages would there be?
Rule: Advantage is that all profits go to the owner with a wholly-owned production. Disadvantage is foreign government expropriation of the facility.
Analysis: Chance of confiscation by foreign