Business Law Chapter 15

Dropbox Week 5

Chapter 15

Multiple choice question 1 p. 357 (6th Edition)

C

Multiple choice question 5 p. 358 (6th Edition)

B

Essay Question 4 p. 359 (6th Edition)

The reason the appeals court stated that the contract did not satisfy the Statute of Frauds is because it was missing specific information. The Statute of Frauds require the signature of the defendant (which in this case it did), and it must state with reasonable certainty the name of each party (this was completed), the subject matter of the agreement (it stated the lease of the basement in detail), and all the essential terms and promises (this is what was missing). The contract didn’t state how long the lease was for. It could be for 1 month, 6 months, or 5 years. It was not very clear and was incomplete.

Chapter 17

Multiple choice question 1 p. 399 (6th Edition)

C

Multiple choice question 5 p. 400 (6th Edition)

A

Discussion Question 1 p. 401 (6th Edition)

This situation is very similar to the case shown under the substantial performance paragraphs. Evans did complete the house so therefore Sandra Dyer is obligated to pay him. But, since there were so many problems with the house, she will not have to pay the full amount that was contracted out before. The court will have to determine what amount is fair to both of them. First, the garage ceiling was too low which could prevent any vehicles being parked inside making it a useless space. The load-bearing beams in the great room cracked making the house unstable. That would cause a big problem for the future of the house so I would consider that to be a major price deduction from the original contract. The patio didn’t drain properly which could prevent problems with the foundation of the house. When the pipes froze, I would have to have more details to see if that was the fault of poor workmanship or if it could have been prevented by Sandra. Out of all of the problems, I don’t think Evans would get very much of the original amount but will get paid for the work done.

Chapter 18

Multiple choice question 3 p. 424 (6th Edition)

B

Essay Question 2 p. 425 (6th Edition)

Twin Creeks is seeking out the damages of $600,000. They got into a contract with Paramount Pictures to buy their cassettes over the next 2 years