BUS 415 Foodmart, Inc.
Foodmart, Inc. is a retail grocery store chain based in Any
State, U.S.A. Foodmart
Business Entities, Laws, and Regulations Paper Foodmart, Inc. is a retail grocery
store chain based in Any State, U.S.A. Foodmart has stores throughout the
United States. Brian McDonald works as the produce manager for the store in My
Town, U.S.A. Jeremy Atwater, 17 years old, is spending his summer vacation
working for Brian in the produce department.
Write a 1,050- to
1,750-word paper with detailed answers to the following scenarios:
• Foodmart
contracted with Masterpiece Construction to renovate the store on Main Street
in My Town. Masterpiece, unable to complete the renovation within the 6-month
time limit due to an increase in new contracts, subcontracted the job to Build
Them to Fall Construction. Foodmart was unaware of the subcontract. When
Foodmart realized, due to the poor quality of work, that Build was handling the
renovation, Foodmart petitioned the court for an injunction and sued
Masterpiece for breach of contract and specific performance. Masterpiece argued
that it had a right to delegate the duties of the contract, or to discharge the
contract due to commercial impracticability. Who wins? Explain your answer.
Summarize the legal defenses to contract formation and enforcement.
• At the
end of the summer, Jeremy Atwater earned enough money to put a down payment on
a car. He decides to continue working part-time during school to earn money for
the car payments. Jeremy purchased a car from Smooth Sales Used Cars. Smooth
did not ask Jeremy how old he was; the salesman assumed he reached the age of
majority. Jeremy paid the down payment and signed a contract stating that he
would make payments of $200 each month. Six months later, Jeremy lost his job
and could no longer make the payments. Jeremy took the car to Smooth and said
he wanted to cancel the contract, and that he wanted his money back. What are
the possible outcomes? Compare and contrast potential legal and equitable
remedies.
• Brian
McDonald spent his time away from work on his hobby, model trains. His train
set was large and consisted of rare and one-of-a-kind trains. One day, while
visiting with fellow train hobbyist Harry, Brian said, “When I retire in 2
years from Foodmart, I’m going to sell my trains and spend the rest of my life
traveling on real trains.” Brian told Harry that he was the only person he
planned to offer his trains to, because he knew Harry would take care of them.
Harry said he looked forward to the day when he could buy the trains. Harry
spent the next 2 years and most of his savings building a new 2,000-square foot
room onto his house to make room for the trains. When Harry told Brian he was
building the new room, Brian just smiled. Brian also heard that Harry borrowed
money from his aunt to buy the trains. When Brian retired, he sold his trains
to his neighbor, James. Harry sued Brian, claiming breach of contract, or in
the alternative, for promissory estoppel. Who wins? Explain your answer.
• Foodmart
has recently developed an online ordering service for home delivery within a
10-mile radius of each store. To use the service, Foodmart requires customers
to agree to terms and conditions of a contract when first entering an online
order. The contract specifies that advertised sales prices do not apply to
online purchases, and orders are limited to inventory on hand at the nearest
store. Todd sees a Foodmart newspaper advertisement for a chocolate sauce that
is discontinued at a reduced price. The sauce is a key ingredient in a special
cake recipe he uses in his catering business. Todd attempts to make an online
purchase of all the remaining sauce at the store nearest to him. The store
advises it has sold out, even though it has 10 cases in inventory. Todd
requests that the store obtain the chocolate sauce from two other stores within
the 10-mile radius. Foodmart refuses, citing the contract. Todd sues, claiming
the contract is not effective and he should receive all available chocolate
sauce from all three stores at the sales price, or he should receive damages
equal to the amount of money he would have made from selling cakes made with the
chocolate sauce. Who wins? Analyze the contractual issues unique to e-commerce.
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