Scenario: Grocery, Inc. is a retail grocery store chain based in Any State, U.S.A. Grocery has stores throughout the United States. Tom Green works as the produce manager for the store in My Town, U.S.A. Jeff Fresh, 17 years old, is spending his summer vacation working for Tom in the produce department. Using the scenario above, please give answers to the 5 following questions:
1) Grocery contracted with Masterpiece Construction to renovate the store on Main Street in My Town. Masterpiece, unable to complete the renovation within the six-month time limit due to a sudden increase in new contracts, sub-contracted the entire job to Build Them To Fall. Grocery was unaware of the sub-contract. When Grocery realized (due to the poor quality of work) that Build, not Masterpiece, was handling the renovation, Grocery petitioned the court for an injunction and then sued Masterpiece for breach of contract and specific performance. Masterpiece argued that it had a right to delegate the duties of the contract, or in the alternative, to discharge the contract due to commercial impracticability. Who wins? Explain your answer. In your response, be sure to summarize the legal defenses to contract formation and enforcement.
2) At the end of the summer, Jeff Fresh had earned enough money to put a down payment on a car. He decided to continue working part time during school to earn money for the car payments. Jeff purchased a car from Smooth Sales Used Cars. Smooth did not ask Jeff how old he was; the salesman assumed he had reached the age of majority. Jeff paid the down payment and signed the contract stating that he would make payments of $200 each month. Six months later Jeff lost his job and could no longer make the payments. Jeff took the car back to Smooth and said he wanted to cancel the contract and that he wanted his money back. What are the possible outcomes? In your explanation, be sure to compare and contrast potential legal and equitable remedies.
3) Tom Green spent his time away from work on his hobby, model trains. His train set was very large and consisted of rare and one-of-a-kind trains. One day, while visiting with a fellow train hobbyist Harry, Tom said, “When I retire in two years from Grocery, I’m going to sell my trains and spend the rest of my years traveling on real trains.” Tom then told Harry that he was the only person he planned to offer his trains to because he knew Harry would take good care of them. Harry said he looked forward to the day when he could buy the trains. Harry then spent the next two years and most of his savings building a new 2,000 sq. ft. room onto his house to make room for the trains. When Harry told Tom that he was building the new room, Tom just smiled. Tom also heard that Harry had borrowed money from his aunt to buy the trains. When Tom retired, he sold his trains to David. Harry sued Tom claiming breach of contract, or in the alternative, for promissory estoppel. Who wins? Explain your answer.
4) Grocery has recently developed an online ordering service for home delivery within a 10 mile radius of each its stores. In order to use the service, Grocery requires customers to agree to terms and conditions of a contract the first time a customer enters 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. George sees a Grocery newspaper advertisement for a chocolate sauce which has been discontinued at a reduced price. The sauce is a key ingredient in a special cake recipe he uses in his catering business. George attempts to make an online purchase of all of the remaining sauce at the store nearest to him. The store advises it has sold out, even though it has 10 cases in inventory. George then requests online that the store obtain the chocolate sauce from two other stores within the 10 mile radius. Grocery refuses citing the contract. George sues claiming the contract is not effective and he should receive all available chocolate sauce from all three stores at the sales price or that he should receive damages equal to the amount of money he would have made from selling cakes made with the chocolate sauce. Who wins? In your response, be sure to analyze the contractual issues unique to e-commerce.