Week 2

Chap 3 Q3

Fred Sanguine is a New York City produce broker. Ned Santini is a 19-year-old college student who works for Sanguine from 4:00 A.M. until 7:00 A.M. each weekday before he attends classes at Pace University. Fred has instructed Ned on the proper packing of produce as follows: “Look, put the bad and small cherries at the bottom. Do the same with the strawberries and blueberries. Put the best fruit on top and hide the bad stuff at the bottom. This way I get top dollar on all that I sell.” Ned is uncomfortable about the instructions, but, as he explains to his roommate, “It’s not me doing it. I’m just following orders. Besides, I need the job.”

Should Ned just follow instructions? Is the manner in which the fruit is packed unethical? Would you do it? Why or why not? Is anyone really harmed by the practice?

Chap 3 Q12

David A. Vise, a Pulitzer Prize winner and a reporter for the Washington Post, wrote the book The Bureau and the Mole. When the book hit the market, Mr. Vise purchased 20,000 copies via Barnes & Noble.com, taking advantage of both free shipping offered by the publisher and a discounted initial price. Mr. Vise’s book had already hit the New York Times’ bestseller list in the week before the purchases. He used the books he purchased to conduct online sales of autographed copies of the books, and then returned 17,500 books and asked for his money back. However, that return of 17,500 books represented more books than a publisher generally runs for a book. Mr. Vise said that he did not intend to manipulate the market or profit from the transactions. He said his only intent was to “increase awareness of The Bureau and the Mole.”

Mr. Vise’s editor offered to pay Barnes & Noble for any expenses it incurred. Was it ethical to do what Mr. Vise did? Was he within his rights to return the books? What are his remedies? Does Barnes & Noble have any rights?

Assignment 2

Allison operates a pizza establishment and has run into difficult economic times. Just when Allison feels that her business was finally going well, a new pizza place opens nearby. Allison cannot stand the thought of again facing bankruptcy of a business that she has worked so hard for. Allison contacts the suppliers of the new pizza place and tries to convince them not to deal with the new place. The credit worthiness of the new restaurant is lied about, and the moral character of the owner called into question. What torts has Allison committed? What defense(s) might she assert? What ethical issues are presented by Allison's behavior? How can they be resolved?

Thoroughly explain your answer. Fully describe the applicable laws and then apply them to the material facts. Explain your analysis. If you make assumptions of fact, fully explain them.

Week 3

Chap 16 Q7

In February or March, Corning Glass Works orally agreed to retain Hanan as management consultant from May 1 of the year to April 30 of the next year for a present value fee of $200,000. Was this agreement binding? Is this decision ethical? [ Hanan v. Corning Glass Works, 314 N.Y.S.2d 804 (A.D.) ] 

Chap 19 Q9

Melodee Lane Lingerie Co. was a tenant in a building that was protected against fire by a sprinkler and alarm system maintained by the American District Telegraph Co. (ADT). Because of the latter’s fault, the controls on the system were defective and allowed the discharge of water into the building, which damaged Melodee’s property. When Melodee sued ADT, its defense was that its service contract limited its liability to 10 percent of the annual service charge made to the customer. Was this limitation valid? [ Melodee Lane Lingerie Co. v. American District Telegraph Co., 218 N.E. 2d 661 (N.Y) ] 

Assignment 3

Chap 12 Q13

L. B. Foster invited Tie and Track Systems Inc. to submit price quotes on items to be used in a railroad expansion project. Tie and Track responded by e-mail on August 11, 2006, with prices or 9 items of steel ties. The e-mail concluded,   “ The above prices are delivered/Terms of Payment  — to be agreed/Delivery to be agreed/We hope you are success u with your bid. If you require any additional information please call. ”   Just 3 of the 9 items listed in Tie and Track’s price quote were “accepted “ by the project. L. B. Foster demanded that Tie and Track provide the items at t h price listed in t e quote. Tie and Track refused. L. B. Foster sued for breach of contract. Did the August 11 e-mail constitute an offer, acceptance of which could bind the supplier to a contract? If so, was there a valid acceptance?  [L. B. Foster v. Tie and Track Systems, Inc.  , 2009 WL 900993 (N.D. Ill.)]

Week 4

Chap 22 Q14

Flora Hall went to Rent-A-Center in Milwaukee and signed an agreement to make monthly payments of $77.96 for 19 months in exchange for Rent-A-Center’s allowing her to have a Rent-A-Center washer and dryer in her home. In addition, the agreement required Hall to pay tax and a liability waiver fee on the washer and dryer. The total amount she would pay under the agreement was $1,643.15. The agreement provided that Hall would return the washer and dryer at the end of the 19 months, or she would, at that time, pay $161.91 an d own the washer and dryer as her own. Is this a sales contract? Is this a customer lease? At the time hall leased her washer and dryer, she could have purchased a set for about $600. What do you think about the cost of her agreement with Rent-A-Center? Is it unconscionable? Determine whether any other consumer laws apply. Must this contract be in writing? [Rent-A-Center, Inc. v. Hall, 510 N. W.2d 789 (Wis.)]

Chap 26 Q1

Firewood Manufacturing Co. had a contract to sell General Tire 55 Model 1225 posture inflators (PCIs). PCIs are $300,000 machines used by General Tire in its manufacturing process. The contract was entered into in 1989, and by April 1990 General Tire had purchased 22 PCIs from Firewood. However, General Tire then closed its Barrie, Michigan, plant. Firewood reminded General Tire that it still had the obligation to purchase the 33 remaining PCIs. General Tire communicated to Firewood that it would not be purchasing the remaining ones. Firewood then was able, over a period of three years, to sell the remaining PCIs. Some of the PCIs were sold as units, and others were broke down and sold to buyers who needed parts. Firewood’s sales of the remaining 33 units brought in $18,513 less than the General Tire contract provided, and Firewood filed suit to collect the resale price difference plus interest. Can Firewood recover? Why or why not? [Firewood Manufacturing Co., Inc. v. General Tire, Inc., 96 F. 3d 163 (6th Cir.)]

Assignment 4

During a promotional sale, Alice bought a car from Bill for $10,000. Bill warranted that the car had no defects. The car would have been worth $11,000 had it complied with Bill's warranty. In fact, the car's transmission was defective; a breach of warranty. As a result, the actual value of the car was only $9,000. Alice paid $200 for a rental car when the transmission failed and she needed transportation. Alice has accepted the car, and intends to keep it.

Under the theories of obligation and performance, and given that Allison wants to keep the car, what can she do? What standard must she prove? What are her responsibilities as the buyer? Is Alice required to give Bill notice of the breach? 

What can Bill do if Alice gives him notice? 

How much in damages can Alice recover? 

What other remedies might Allison have? 

Be sure to focus on the assigned reading for this week when answering the questions.

Thoroughly explain your answer. Fully describe the applicable laws and then apply them to the material facts. Explain your analysis. If you make assumptions of fact, fully explain them.