If a common carrier delivers goods to the wrong person, the carrier is liable for breach
of contract and for the tort of conversion.
Mediation is a generally accepted method of resolving disputes.
A firm offer is effective only if the merchant receives consideration to keep the offer
open.
If there is a reference to a third party to determine a dispute, in most cases the decision
is binding.
Despite consumer protection legislation, for most consumers pursing their rights in
court is not cost beneficial.
When an oral contract is made to sell a 75-inch LED LCD TV for $6,800, payment and
acceptance of part of the purchase price avoids the bar of the statute of frauds.
Governments are generally immune from tort liability.
An art collector commissioned an artist to create a sculpture for the collector. The artist
wanted a substantial amount of money for the sculpture. This caused the collector some
worry regarding possible dissatisfaction with the artwork once it was completed. To
ensure that payment would be made only if the collector was satisfied with the
sculpture, a condition was written into the commission contract. It required that the
collector would have to be satisfied with the artwork, relying on the collector’s taste and
judgment, before an obligation of payment would be created.
The artist never imagined that a collector could possibly refuse a creation of his and
allowed the condition to be placed within the contract. At the completion of the
sculpture, the collector claimed that she did not care for the artwork and therefore
refused to pay. Can the artist force payment in this situation? Would it help if the artist
could establish that the collector actually approves of the sculpture but has temporarily
run short on funds, and that this is the true motivating factor in refusing to accept the
sculpture?
For a change to constitute an alteration, the person making the change must be a party
to the instrument.
Under the Berne Convention Implementation Act of 1988, it is no longer mandatory
that works published after March 1, 1989 contain a notice of copyright.
Officers that cause a corporation to break a contract with third party are liable to the
third party even if they acted in good faith to advance the interests of the corporation.
Nonprofit corporations are exempt from involuntary bankruptcy proceedings.
A limited liability company is treated like a partnership under federal tax law and has
the limited liability feature of corporations.
When a person who performs continuing services for another receives a fixed payment
that does not depend on the existence of profit and is not affected by losses, that person
is a partner.
Bob Corporation entered into a contract to sell parts to Zeck. The contract provided that
the goods would be shipped “FOB Bob’s warehouse.” Bob shipped parts to Zeck that
were stolen from the carrier. When Zeck checked the invoice, Zeck discovered that Bob
had sent Model #20B instead of Model #20A, which the contract required. Whose loss?
Why?
Even after there is an effective ratification, the original action of an agent still is treated
as unauthorized.
Contract formation in cyberspace is the result of a desire for businesses to use a
common language to form contracts.
An insurance company cannot refuse to pay the fire loss of the buyer of a house on the
grounds that the sales contract for the house was not binding because it was not
properly signed.
A landlord has the right to enter a leased property to make repairs without notifying the
tenant.
Freezo Refrigerators are sold by various retailers. Most of the same retailers also sell
Icy Refrigerators. The Freezo brand outsells Icy in some stores, but not in others.
Freezo has decided to offer secret bonuses and discounts to retailers where the sale of
Freezo Refrigerators lags behind the sale of Icy Refrigerators. Freezo sees this action as
an advertising ploy to increase market share. Retail stores where Freezo is number one
are not eligible for any of these bonuses and discounts. Discuss the implications of
Freezo’s advertising plan.