Posted: July 23rd, 2016

What are the possible outcomes?

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.