Law for Business 12th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 9

Pearsall and Alexander, friends for over 20 years, met twice a week after work at a liquor store. There they bought what they called a "package"-a half-pint of vodka, orange juice, two cups, and two lottery tickets. They then went to Alexander's home to scratch the tickets, drink, and watch TV. When they won, they bought more tickets. One day Pearsall bought a package, and when he returned to the car, asked Alexander regarding the lottery, "Are you in on it?" Alexander said, "Yes." When Pearsall asked him for half the price, Alexander said he had no money. At his home, Alexander worried that Pearsall might lose the tickets, grabbed them, and scratched them. They were losers. Later Alexander bought another package. This time Pearsall snatched the tickets and he scratched one and Alexander the other. Alexander's won $20,000. He refused to split the money with Pearsall. Does Pearsall have a right to half the winnings?