1. The Smiths purchased a new home from JC Construction in Sunnyvale subdivision. They signed a standard purchase agreement that stated in boilerplate language that there were no warranties, express or implied, in the sale of the home. One year after they moved into the home, the basement began to flood as a result of substantial defects in the construction of the basement. It will cost the Smiths $10,000 to repair the basement. Is JC liable for that cost? Why or why not?

2. Dawn buys a house on some acreage. Describe the ownership interest Dawn more than likely has in this property.

3. Suppose Dawn in the above case installs an above-ground swimming pool on her property. Describe Dawn's potential premises liability. What would be some things Dawn could do to exercise reasonable care in regard to her swimming pool?

4. Describe how zoning ordinances and the power of eminent domain could affect Dawn's right to enjoy her property.

5. Troy buys a convenience store in an older neighborhood that has some problems with crime. Describe Troy's reasonable care and duty to provide a safe environment for his customers.

Case Problem

Hartford Penn-Cann Service, Inc., operated a gas station, restaurant, and truck wash directly across the highway from a gas station and truck stop operated under the name "Hartford 65." It brought suit against the operators of Hartford 65, contending that dust from their property was blowing onto the Penn-Cann Service property to the detriment of its business and to the health of its employees. Dust from Hartford 65 frequently blew onto Penn-Cann Service's property and prevented some of its employees from wearing contact lenses and one had to wear a dust mask; its machinery, including its gas pumps, had to be replaced more frequently; the windows in its restaurant could not be opened; dust collected on packages of food in the restaurant and the packages had to be wiped off before they could be opened; and business at its truck wash fell off.

Should the owners of Hartford 65 be enjoined from operating a gas station or truck stop on the grounds such use constitutes a nuisance?