expectation, restitution, or specific performance?
Question
Answer one of the Essay Questions located at the end of chapters 11-13 in Introduction to Business Law. Answer one question for each chapter. Each fully developed response (250-400 words) should include the following:
A clear introduction and conclusion
A thorough statement of the problem
A thorough explanation of the solution to the problem
Identify the chapter and question number you are answering.
APA format is not required, but solid academic writing is expected.
I have copied and pasted each essay question for each chapter. You are to pick only one essay question for each chapter.
Chapter 11
1. Nationwide Discount Furniture hired Rampart Security to install an alarm in its warehouse. A fire would set off an alarm in Rampart’s office, and the security company was then supposed to notify Nationwide immediately. A fire did break out, but Rampart allegedly failed to notify Nationwide, causing the fire to spread next door and damage a building owned by Gasket Materials Corp. Gasket sued Rampart for breach of contract, and Rampart moved for summary judgment. Comment.
2. Evans built a house for Sandra Dyer, but the house had some problems. The garage ceiling was too low. Load bearing beams in the“great room”cracked and appeared to be steadily weakening. The patio did not drain properly. Pipes froze. Evans wanted the money promised for the job, but Dyer refused to pay. Comment.
3. Racicky was in the process of buying 320 acres of ranchland. While that sale was being negotiated, Racicky signed a contract to sell the land to Simon. Simon paid $144,000, the full price of the land. But Racicky went bankrupt before he could complete the purchase of the land, let alone its sale. Which of these remedies should Simon seek: expectation, restitution, or specific performance?
4. ETHICS: The National Football League (NFL) owns the copyright to the broadcasts of its games. It licenses local television stations to telecast certain games and maintains a“blackout rule,”which prohibits stations from broadcasting home games that are not sold out 72 hours before the game starts. Certain home games of the Cleveland team were not sold out, and the NFL blocked local broadcast. But several bars in the Cleveland area were able to pick up the game’s signal by using special antennas. The NFL wanted the bars to stop showing the games. What did it do? Was it unethical of the bars to broadcast the games that they were able to pick up? Apart from the NFL’s legal rights, do you think it had the moral right to stop the bars from broadcasting the games?
Chapter 12
1. Make a list of provisions that you would expect in an employment contract.
2. List three provisions in a contract that would be material, and three that would not be.
3. Slimline and Distributor signed a contract which provided that Distributor would use reasonable efforts to promote and sell Slimline’s diet drink. Slimline was already being sold in Warehouse Club. After the contract was signed, Distributor stopped conducting in-store demos of Slimline. It did not repackage the product as Slimline and Warehouse requested. Sales of Slimline continued to increase during the term of the contract. Slimline sued Distributor, alleging a violation of the agreement. Who should win?
4. YOU BE THE JUDGE WRITING PROBLEMChip bought an insurance policy on his house from Insurance Co. The policy covered damage from fire but explicitly excluded coverage for harm caused“by or through an earthquake.”When an earthquake struck, Chip’s house suffered no fire damage, but the earthquake caused a building some blocks away to catch on fire. That fire ultimately spread to Chip’s house, burning it down. Is Insurance Co. liable to Chip?Argument for Insurance Co.: The policy could not have been clearer or more explicit. If there had been no earthquake, Chip’s house would still be standing. The policy does not cover his loss.Argument for Chip:His house was not damaged by an earthquake; it burned down. The policy covered fire damage. If a contract is ambiguous, it must be interpreted against the drafter of the contract.
5. Laurie’s contract to sell her tortilla chip business to Hudson contained a provision that she must continue to work at the business for five years. One year later, she quit. Hudson refused to pay her the amounts still owing under the contract. Laurie alleged that he is liable for the full amount because her breach was not material. Is Laurie correct?
Chapter 13
1. Nina owns a used car lot. She signs and sends a fax to Seth, a used car wholesaler who has a huge lot of cars in the same city. The fax says,“Confirming our agrmt—I pick any 15 cars fr yr lot—30% below blue book.” Seth reads the fax, laughs, and throws it away. Two weeks later, Nina arrives and demands to purchase 15 of Seth’s cars. Is he obligated to sell?
2. YOU BE THE JUDGE: WRITING PROBLEMUnited Technologies advertised a used Beechcraft Baron airplane for sale in an aviation journal. Attorney Thompson Comerford spoke with a United agent who described the plane as“excellently maintained” and said it had been operated“under §135 flight regulations,”meaning the plane had been subject to airworthiness inspections every 100 hours. Comerford arrived at a Dallas airport to pick up the plane, where he paid $80,000 for it. He signed a sales agreement stating that the plane was sold“as is”and that there were“no representations or warranties, express or implied, including the condition of the aircraft, its merchantability, or its fitness for any particular purpose.”Comerford attempted to fly the plane home but immediately experienced problems with its brakes, steering, ability to climb, and performance while cruising. (Otherwise, it was fine.) He sued, claiming breach of express and implied warranties. Did United Technologies breach express or implied warranties?Argument for Comerford:United described the airplane as“excellently maintained,”knowing that Mr. Comerford would rely. The company should not be allowed to say one thing and put the opposite in writing.Argument for United Technologies:Comerford is a lawyer, and we assume he can read. The contract clearly stated that the plane was sold as is. There were no warranties.
3. ETHICS: Texaco, Inc., and other oil companies sold mineral spirits in bulk to distributors, which then resold to retailers. Mineral spirits are used for cleaning and are harmful or fatal if swallowed. Texaco allegedly knew that the retailers, such as hardware stores, frequently packaged the mineral spirits (illegally) in used half-gallon milk containers and sold them to consumers, often with no warnings on the packages. David Hunnings, age 21 months, found a milk container in his home, swallowed the mineral spirits, and died. The Hunningses sued Texaco for negligence. The trial court dismissed the complaint, and the Hunningses appealed. What is the legal standard in a negligence case? Have the plaintiffs made out a valid case of negligence? Assume that Texaco knew about the repackaging and the grave risk but continued to sell in bulk because doing so was profitable. (If the plaintiffs cannot prove those facts, they will lose even if they do get to a jury.) Would that make you angry? Should the case go to a jury? Or did the fault still lie with the retailer and/or the parents?
4. Lewis River Golf, Inc., grew and sold sod. It bought seed from the defendant, O. M. Scott & Sons, under an express warranty. But the sod grown from the Scott seeds developed weeds, a breach of Scott’s warranty. Several of Lewis River’s customers sued, unhappy with the weeds in their grass. Lewis River lost most of its customers, cut back its production from 275 acres to 45 acres, and destroyed all remaining sod grown from Scott’s seeds. Eventually, Lewis River sold its business at a large loss. A jury awarded Lewis River $1,026,800, largely for lost profits. Scott appealed, claiming that a plaintiff may not recover for lost profits. Comment.
5. Boboli Co. wanted to promote its“California-style”pizza, which it sold in supermarkets. The company contracted with Highland Group, Inc., to produce 2 million recipe brochures, which would be inserted in the carton when the freshly baked pizza was still very hot. Highland contracted with Comark Merchandising to print the brochures. But when Comark asked for details concerning the pizza, the carton, and so forth, Highland refused to supply the information. Comark printed the first lot of 72,000 brochures, which Highland delivered to Boboli. Unfortunately, the hot bread caused the ink to run, and customers opening the carton often found red or blue splotches on their pizzas. Highland refused to accept additional brochures, and Comark sued for breach of contract. Highland defended by claiming that Comark had breached its warranty of merchantability. Please comment.
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