Precise Engineering Corporation has a contract with Quik Mart Stores to provide
customized software for Quik’s inventory control system. Retail Outlets, Inc., Quik’s
competitor, induces Sam, a Precise subcontractor who is writing code for the Quik
software, to delay delivery of the code for one week. As a result, Precise’s delivery of
the software is delayed, and Quik sustains $500,000 in lost profits. On what ground
could Quik recover damages from Retail Outlets?
A liquidated damages provision is the same as a penalty provision.
Bubbly Bottling Company is engaged in the soft-drink bottling and distribution industry
in the states of New York and New Jersey. The firm currently has about 40 percent of
the market for these products and related services. Carbonate Distribution Corporation
competes with Bubbly in the same states. Carbonate has about 35 percent of the market.
If Bubbly were to acquire the stock and assets of Carbonate, would Bubbly be in
violation of any of the antitrust laws? If so, which one? Discuss fully.
Gelato Cheese Company, a major processor of cheese sold throughout the United
States, employs one hundred workers at its principal processing plant. The plant is
located in Heartland Corners, which has a population that is 50 percent white and 25
percent African American, with the balance Hispanic American, Asian American, and
others. Gelato requires a high school diploma as a condition of employment for its
cleaning crew. Three-fourths of the white population completed high school, compared
with only one-fourth of those in the minority groups. Gelato has an all-white cleaning
crew. Has Gelato violated the Civil Rights Act of 1964? Explain.
Withdrawal from a partnership for a term prematurely does not constitute a breach of
the partnership agreement.
The Fifth Amendment prohibits unreasonable searches and seizures of persons or
property.
The law allows an innocent party to be discharged when the other party has materially
altered a written contract without consent.
The mailbox rule applies to communication by phone and fax as well as the mail.
A party must own property to have an insurable interest in it.
In a contract, an exculpatory clause releases a party from liability in the event of
monetary or physical injury no matter who is at fault.
If a third party will be affected by a contract, the parties to the contract are in privity
with the third party.
Proceeds from the disposition of collateral after default on the underlying debt are
distributed equally among lienholders who have made demands.
Some student loans are dischargeable in a Chapter 7 bankruptcy.
Rights to receive funds can be assigned.
If a debtor does not pay a mechanic’s lien, the debtor’s property can be sold to satisfy
the debt.