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Business Law

Pattern Fact 1

On the first scenario where the SUV is involved in an accident, Paul and Silvio should

take the case to the federal court. The two are residents of New Jersey, but the accident took

place in New York. The situation is referred to as a case of Diversity of Citizenship which can

only be listening by a federal court. Also, the amount of money that needs compensation

exceeds $75,000 which means the case can be determined in a federal court. In my opinion, the

fireworks company should compensate the two employees and any loss that happened as a result

of the accident. The fireworks and the New York Corporation driver was in the wrong; his

negligence on the road caused the crash which costed Anthony’s company and the two

employees. Silvio and Paul have a stronger case against the corporation. They should be

compensated for their medical bill and the loss they underwent through. The truck driver was

broke the law by driving beyond the speed limit. The judge should find the driver guilty of the

crime and rule in favour of Paul and Silvio. On the same case, Anthony should be compensated

by the Fireworks and New York Corporation for the damage of his SUV. However, if the

insurance covers it, it should be paid by the insurance cover. In summary, only the federal court

has the jurisdiction to listen and determine the case.

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The case in which Anthony held against the vice president of Queens Company presents

a problem. The contract under which the vice president signed was null and void. Anthony

coerced the vice president to sign the contract giving him trucks. The case can listen in a federal

court because the two companies under contract come from different states. The best case

scenario is that the case will dismiss based on the fact that the vice president was coerced to

signing the contract with Anthony. A valid contract is made between two or more parties that

are in agreement. The parties enter into a contract freely without pressure. Anthony, threated the

vice president with a gun on his head; hence he signed the contract under duress. This nullifies

the agreement they had signed. However, Anthony has a chance to win the case since the

president signed the contract without pressure. The president signed the contract without reading

it which can be regarded as negligence on his part. The president could have verified the contents

of the contract before signing it. Instead due to his negligence, he took the word of the vice

president on what the contract entails. The action by the president gives leverage to Anthony to

demand implementation of the agreement to the letter. The president may also argue on the case

based on undue influence. Undue influence is a situation where a person takes advantage of

another without any pressure to sign a contract. The vice president took advantage of the

President’s trust on him to get him to sign the contract. The vice president lied to the president so

that he could sign the contract without reading it. The situation where undue influence is proven

then the contract will be null and void. In summary, contracts are valid if both parties consent to

the terms of the agreement freely.

On the case that involves Paul’s advertisement of Television sets, he misleads his

customers by giving misleading information to customers. The advertisement was specific on

which customer would get a barbeque set. The case on false advertisements is determined in a

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state court. Jim should report the case in a state court. The law prohibits business people from

giving information about their products to customers. They should provide accurate and fair

information to avoid misleading the intentions of the customers. The information provided by the

appliance store on the gifts they were to provide their customer for meeting their conditions was

untrue. They misled Jim to buy a plasma TV and denied him the award. On this matter, the judge

would rule in favour of Jim and they were supposed to honour their word as it appears in the

advertisement.

Moreover, Paul’s case against Sony in regards to buying all the 19” plasma TVs they

produce, he has a good point of argument. The quantity on which the contract is signed was too

vague. The agreement did not specify the particular number of TVs that Paul would buy. The

contract would have specified on the number of TVs produced by Sony within a specified period.

The term “all” was too ambiguous for both parties to interpret. There was a possibility of one

party taking advantage of the other due to the vagueness of the contract. Therefore Paul was right

to reject the shipment from Sony. The case would be ruled in favour of Paul. The case being a

local one requires a civil state court since it is a problem of contract vagueness. A state court

judge would determine the case between Paul and Sony. In summary, the case by Sony would be

dismissed on the basis of ambiguity of the contract since there is no specified number of plasma

TV that Paul should buy from the company.

Silvio lying to the home buyers created a problem for them since they wanted to convert

their new home to two dwelling home. The broker concurring with Silvio also committed a

crime. The case should be taken to a state court because it involves the zoning laws of that state.

Therefore that is a local case which can be listened and determined by the state court. The issues

that come up on the case include misrepresentation by the broker. Silvio’s nephew lied to the

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home buyers on the zoning laws of the state. Therefore as a real estate agent, he committed a

crime of misrepresentation. There are two cases of deception, that is will and unhelpful deceit.

On Silvio’s part, he did not commit any crime by lying to the buyers. The zoning laws hold the

home buyers responsible for the information they have about the laws of the state. Silvio was

interested in selling his home hence lying on the zoning laws in which the house existed. The

problem with Silvio is a problem of morality and not a legal case. Therefore the judge would rule

in favour of Silvio since he did not break any law because they reached an agreement with the

home buyers. On the other hand, if Silvio’s nephew is a registered real estate agent, he would be

found guilty of misrepresentation. The filed by the home buyers would likely be dismissed

because Silvio did not violate any law while selling his home.

As an attorney representing the Antony, Silvio and Paul in different cases discussed

above, I am supposed to give them advice on possible outcomes of their situation. The presented

case scenarios above might be ruled in favour of or against the three clients. However, the

analysis is based on business law that exists and the opinion of all the case scenarios. In

summary, there are possible alternations of the case decisions depending on the judge in a court

of law.

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Pattern Fact 2

Stein and son television store experienced problems of poor creditworthiness. The reason

as to why they could not secure a loan was due to poor creditworthiness. The low rating can be

attributed to the difficulties experienced in the appliance store. They could not be trusted to pay

back a loan since they had shown signs of defaulting. Seeking alternative lenders is a risky move

for the company since the corporate loan attracts high-interest rates. 26% interest rate is very

high because the business is struggling financially. Also, the personal borrowing loan alongside a

corporate loan shows the separation that exists between a business and a private person. In case

there are problems of payment either loan cannot be transferred to the latter. Therefore, the

business loan has to be paid from the appliance store while personal loan has to be paid by Stein

himself. Finally, business financing is also another issue that arises from the case scenario. One

can finance business operations through loans which add working capital to the television

appliance store.

On the other hand, the contract drawn by Pritchard’s attorney on the sale of Stein’s

business raises the issue of the unfair contract term. Unfair Contract Term is a clause that exists

to protect parties in a contract from the limitation of their rights. A contract with an unfair

contract term is regarded as void. The contract drafted by Pritchard attorney limited the rights of

Stein. The contract contained a clause that would regulate Stein’s business operations for the

next year. The deal that the employees also signed was unfair to them. It limited their rights to

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seek employment from Pritchard’s competitors for 10 years. The issues that are clear on these

two contracts are the legal ways that make a contract void. The question of unfair contract term

applies to both case scenarios. Pritchard’s agreements violate the clause of unfair contract term

making the contracts void.

The issues that are arising from the contract made by Stein which releases him from

liability of negligence include the extent to which the tort applies and to what length should it be

against the law. The burden of negligence protects a person from being sued for a liability that

occurs due to their lack of action on specific issues. However, there is a particular instance

provided by the law to override the release from liability of negligence. For example, the law

does release a person or organization gross negligence; this is where the individual or the

corporation neglects primary duties. On the issue of Jim slipping on the spa pool, Stein did not

incur any liability since the accident occurred due to his negligence but was protected by the

release from future liability of negligence.

An installations contact made by Pritchard brought up various business law issues. An

installation clause has a forfeiture clause which allows the seller to repossess their products in

case the buyer defaults from payment. The sellers keep the payment made by the buyers and the

total amount from the reposed products. In the case scenario, Prichard had adopted such a

contract which gives him forfeiture power against his customers. An installation contract lacks

formality; it is regarded as security against defaulters. The contract provides leverage to the

seller to ensure the buyer pays for the goods and services offered. An installation contract

cannot be regarded as an unfair contract term.

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On Theodore’s situation, the issue of incapacitation is evident. Theodore was a minor and

could not make an agreement. Prichard should have ignored the age of a minor before making a

contract agreement with Theodore. A contract made by a minor cannot be honored or be voided.

The deal seizes to exist. The law is clear that minors do have the capacity to make decisions

without the consent of an adult. Theodore was a 15 year old and any commitment he had made

with Prichard was null and void. Hence, returning the goods, he had bought, gave him leverage

against Prichard. Also, Theodore’s grandmother had been declared incapacitated by the court of

New York. Therefore, any contract that she signed was regarded as void. The cable company

implemented a deal that was not correctly signed; hence it was void. People are declared

incapacitated due to their state of mind where they cannot make informed judgments while

making a decision. They are susceptible to manipulation; hence they are not in a position to

make the right decisions. They require someone of sober mind to decide for them. Therefore in

the case of Theodore’s grandmother, the mother was the only person capable of signing the

contract with the cable company. Theodore and his mother were both not in a position to sign a

contract with the cable company. Therefore the contract was void and the cable company should

not have honored the deal.

When Stein gives his word to honor a debt his son defaults does not give the bank enough

assurance. There lacks a written consent to be a guarantor in Stein’s son. Therefore the issue of

whether Stein should be forced to pay for his son’s debt arises. A recognizable agreement is the

one that has been physically signed by both parties. However, in this case, Stein did not sign a

deal of guarantee. The issue of word of mouth acting as a trust ascendants for an agreement

arises on the situation. The banker agreed to give the loan to Stein’s son out of a deal they had

with Stein. Therefore there existed a consensus between the banker and Stein that he would make

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good his word even though he did not sign the Guarantee agreement. The agreement between the

two is legally bidding since it was in the form of an oral contract.

On Theodore’s marriage, the issue of fraud arises. His father duped him in law that he

would get a car if he married his daughter. They made an oral agreement which was legally

binding. The law recognizes a verbal agreement as a binding contract between the two parties

that are freely and willingly consented to certain conditions. Therefore, during Theodore to

marry his daughter, the father broke the law. Theodore’s decision to marry the girl was made

based on the agreement they made with his father in law. Therefore he could terminate the

marriage since the father did not meet the agreement in doctrine.

Prichard negotiations on buying land led to several talks between the parties involved.

Finally, they reached a point of agreement and declared the contract to be the final agreement.

When the merger clause is incorporated in a contract, all the other negotiations do not apply to as

part of the definitive agreements. In contract law, the merger clause deems all the previous talks

and agreement void. Therefore, the oral negotiation between Prichard and the seller do not apply

as part of their agreement. The seller had previously agreed to remove the shed from the rear

when Prichard buys the land. However, they did not include that fact on the contract. The merger

clause which states that the deal is the final document and all other negotiations cannot hold sets

free any agreement the seller had made previously. In summary, the seller did not commit any

crime by refusing to remove the shed from the rear even after selling to Prichard.

The case where Pritchard contracts Harry Banilow to compose and record a theme song,

there exists an issue with breach of contract. A violation of the contract is when one party or

more who are in agreement deviates from the terms and conditions of the deal. On the above

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matter, Harry agreed with Pritchard agreeing to compose and record a theme song for the

Television advertisement campaign. However, he breached the terms of his agreement by giving

the job to his friend Bob. There two types of breaches of contract which are repudiatory and

renunciatory breaches. In the case mentioned above, there is an issue of a repudiatory breach;

this is a deviation from a contracts condition in which a party is supposed to reap benefits from

the agreement. Pritchard expected to leap the benefit from Harry’s expertise and celebrity name,

but instead, he did not honor his contract. By breaching the contract, Pritchard experienced

damages that he could sue Harry for incurring. Breach of contract in business law can lead to

termination of the contract and compensation for the losses incurred by the innocent party.

As discussed above, the second pattern fact shows issues of contract. The matters

discussed mostly exist in contract law. Contract agreements have many problems that bring

about legal questions. Depending on the specifics of each case, the issues arising from contract

agreements are dealt with differently. The issues discussed above include breach of contracts,

application of oral contracts, Unfair contract term, merger clause and liability of negligence.

These issues affect the operations of the business in legal terms. There are stipulated guidelines

in dealing with cases that lead to the emergence of such matters in business. Therefore it is

prudent to be familiar with contract law to avoid problems. In conclusion, business law

addresses all the legal issues that mostly come up in contract law and the business operation in

general.

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Work Cited

Clarkson, Kenneth W., Roger LeRoy Miller, and Frank B. Cross. Business Law: Texts and

Cases. Nelson Education, 2014.

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