CSUBakersfield Business Law & the Regulation of Business Questions Discussion

Hi The is a business Law assignment. You MUST have Business Law and the Regulation of Business (12^th Ed. 2017). book to answer the questions. There 6 questions posted down here. The questions are from Chapter 10-17. Each question has its own chapter. first one is an example on how to answer them. However, when you try answer the questions, it does not have to be in that length. Just make sure that answers covers all related facts.

Example:

SAMPLE QUESTION

Able is jogging in his neighborhood and as he goes by Baker’s driveway, he sees Baker’s old red Camaro automobile with a “For Sale” sign. He inspects the car and then asks Baker the price. Baker says, “I wouldn’t sell it for less than $500.” Able replies, “I accept your offer,” and attempts to give Baker the cash. Baker refuses and declines to sell. Able sues for breach of agreement. Who wins and why?

Suggested Answer

DECISION: (Baker) Loses

RULE(s) OF LAW: (Write the generic rule(s) here; do not incorporate the facts of the above case.)

A valid contract requires an agreement (offer and acceptance) between two or more parties, which the court will enforce in the event of a breach.

In order for there to be a valid offer, the offeror must exhibit objective intent to enter into a binding contract, the material terms of the proposed contract must be definite and reasonably certain (e.g, what the offeror is willing to do and what they want the offeree to do in return), and the offer must be communicated to the offeree. It must be more than preliminary negotiations (“Can we make a deal here?”), sales talk (“This car is a great deal”), invitations for offers (“I would expect to receive at least $500”), or requests for more information (“Does this car come with a CD player?”).

APPLICATION: (Discuss the rule(s) stated above as they apply to the problem/parties, reasoning to a conclusion.)

The issue here is whether Baker’s statement constitutes a valid offer. Although he “communicated” with Able, Baker’s comment that he “wouldn’t sell it for less than $500” does not indicate that he has a present and definite intent to sell the car for $500. Rather, it appears to merely set a floor or lowest price he would consider, and to invite further discussions or negotiations with Able to finally agree upon a mutually acceptable price. It was an invitation for an offer, preliminary to an actual offer.

Therefore, since there was no valid offer, there cannot be a legal agreement that would bind Baker. So, Able loses

QUESTION 1

1. Pamela and Tommy entered into a written contract whereby Tommy agreed to sell Pamela his drum set for $10,000, payable in two installments ($5,000 when Pamela picked up the drum set, and $5,000 payable one month later). Pamela picked up the drum set and paid Tommy the first $5,000. Pamela then sold the drum set to Heather. As part of the sale, Pamela transferred her duty to pay the additional $5,000 to Heather, who agreed to accept the obligation. Pamela immediately notified Tommy of the sale and transfer to Heather. Tommy asked Pamela to give Heather his address, so she could send the next payment to him. Pamela gave Heather Tommy’s information but Heather never paid him. After numerous unsuccessful attempts to collect the money from Heather, Tommy sued Pamela to collect the $5,000. Who wins and why?

QUESTION 2

On January 1, 2020 Hillary mailed Bart an offer to sell Bart her car on March 1, 2020, for $10,000 cash, payable on delivery. The offer stated it was valid until February 1. Bart received Hillary’s offer on January 4, and immediately prepared a written acceptance of the offer, agreeing to all Hillary’s terms. Bart signed the acceptance and mailed it back to Hillary that same day. As of February 1, Hillary had not received Bart’s acceptance, so she sold the car to Robert that afternoon. On February 10, Hillary received Bart’s original acceptance letter, which the mailman had mistakenly delivered to her next-door neighbor a month before. On March 1, Bart showed up at Hillary’s house with $10,000 cash, and demanded delivery of the car. Hillary did not give him the car because she no longer owned it. Bart sued Hillary for breach of contract. Who wins and why?

QUESTION 3

1. Flintstone Construction Company entered into an enforceable written contract to build a house for Fred in exchange for $500,000, $200,000 payable up front, and $300,000 payable upon completion of the house. Fred made the first payment, and Flintstone began construction. The contract provided, among other things, that the house would be completed by January 1, 2020 and that Flintstone would install hurricane proof glass in the four windows in the living room. After several delays, the house was ultimately completed on February 15, 2020, at which point Fred discovered that Flintstone had used non-hurricane proof glass in the living room windows. Fred refuses to make the final payment, and demands the return of the $200,000 down payment. Flintstone sues Fred for breach of contract. Who wins and why?

QUESTION 4

1. Beyonce wants to hire Jay, a graduate student at the University of Miami, to work for her company. During their negotiations, Beyonce tells Jay that as part of his benefits package he will be entitled to tuition reimbursement, meaning that the company will reimburse him the tuition he pays for every class in which he gets an A or B. On August 1, Beyonce and Jay both sign a written employment contract that includes his salary, start date, job responsibilities, health insurance benefits and retirement plan benefits, but does not mention tuition reimbursement. Jay begins work, takes two classes at UM during the Fall Semester, and receives an A in each class. He shows his final grades to Beyonce and requests that she reimburse him for the tuition he paid. Beyonce refuses and Jay sues her for breach of contract. At trial, Jay attempts to introduce the testimony of credible witnesses to the conversation in which Beyonce had promised him the tuition reimbursement. Will the witnesses be able to testify? Why or why not?

QUESTION 5

1. Ben and Jerry are the owners and operators of a very popular ice cream store chain called “Ben and Jerry’s”. The first store was opened thirty years ago in Vermont, but the chain has since expanded dramatically. As of December 31, 2018, Ben and Jerry have 1000 stores, located all around the country. On January 1, 2019, Ben and Jerry enter into a contract with Mr. Haagen to sell him their business for $25,000,000. In the contract, Ben and Jerry agree not to open an ice cream store in the United States for one year. The parties sign the contract and Mr. Haagen pays Ben and Jerry the $25,000,000. On November 1, 2019, Ben and Jerry, who have gotten tired of driving around the country in their Volkswagen van, open an ice cream store in Miami. Mr. Haagen immediately files a lawsuit seeking to enforce the contract, and force them to close the new store. Who wins and why?

QUESTION 6

1. Curtis Construction Company specializes in the construction of high-end homes in South Florida. On July 1, 2019, the first day of hurricane season, Curtis entered into a written contract with Wade, agreeing to build Wade a 7,000 square foot house in Miami by January 1, 2020. In exchange, Wade agreed to pay $1,000,000 upon completion of the house. On August 1, when the house was half completed, a hurricane struck South Florida. The hurricane caused substantial damage to South Florida. As a result, the cost of labor and building supplies went up by 25%. Curtis calculated that it was now going to cost him $1,100,000 to complete the house, as opposed to the $875,000 he had originally anticipated. Curtis approached Wade, informed him of the cost increases, and asked if Wade would be willing to pay an additional $200,000 for the house. Wade agreed in writing to pay Curtis the additional $200,000. Curtis completed the house on January 1. Wade paid Curtis $1,000,000, but refused to pay the additional $200,000. Curtis sued Wade for breach of contract based on the refusal to pay the additional $200,000. Who wins and why?