Evaluate and discuss the rights and obligations of Pros following the inspection.
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General Background: The Clean-N-Shine (“Clean”) owners have questions and need clarification about several contract concepts and issues related to their new business. Specifically, they have questions about:
- the Statute of Frauds “writing requirement”and
- electronic contracts
Generally, contracts for the sale of goods must be in writing, and the parties must sign the writing to the agreement, and the parties must be sufficiently identified. Clean will be selling products via the internet, and the owners are wondering whether these electronic contracts are valid and enforceable.
Background Facts You Need To Know: Company X, a company in Illinois, contracted via the internet with Windows Bright, a small window washing business in Missouri to purchase four cases of Shiny Lite window cleaning solution at $200 per case. Company X paid via the internet with a company credit card and an electronic contract was create. The electronic contract stated that the four cases of Shiny Lite would be shipped to Company X’s place of business in Illinois via UPS. Once UPS delivered the Shiny Lite, the contract required Windows Bright to clean Company X’s windows.
Winne and Ralph have concerns about the Statute of Frauds and electronic contracts.
To respond to their concerns, you must address the following questions:
- Discuss whether the contract betweenCompany X and Windows Bright is subject to the Uniform Commercial Code Statute of Frauds.
- Analyze and explain whether the electronic internet contract between Company X and Windows Bright satisfies the “writing” requirements for the Statute of Frauds? If so, how and why?
Number each section as:
Background: The Clean-N-Shine (“Clean”) owners are aware of the importance of contracts to both buy and sell goods and services. They are reviewing the Uniform Commercial Code (UCC), Article 2, that covers contracts for the sales of goods.
The Clean owners understand that the terms in their purchase contracts (i.e., contracts to purchase products from EPI) will require very different terms from their sales contracts reselling these cleaning products purchased from EPI. EPI manufactures environmentally-friendly products.
First, the owners want to focus on understanding their rights and obligations associated with reselling EPI cleaning products.
Second, Winnie and Ralph ask you to prepare information to help the Clean understand risks and possible liabilities related to the resale of EPI cleaning goods to customers.
Background Facts You Need To Know: Office Cleaning Pros (Pros), a local company, emailed Clean that it wanted to purchase some cleaning products.
The email stated the following sales details:
- Pros wanted to purchase six cases of Carpet Re-New cleaning solution from Clean
- Price is $200 per case of Carpet Re-New
- Delivery was to be on or before April 1, 2019
- Delivery was to be made to Pros storage warehouse facility
Clean did not respond to the email, but on April 1, Clean delivered six cases of cleaning solution products to Pros office headquarters, located next door to Pros’ storage warehouse facility. Pros moved the cleaning solution products from its headquarters to its storage warehouse facility.
Three days later, Pros inspected the six cases Clean had delivered and discovered all six cases contained Floor Re-New cleaning solution, not Carpet Re-New as specified in the sales contract.
Answer the following questions for Winnie and Ralph to use for discussion with the Clean owners.
Referring to the scenario above, review UCC, Article 2, and respond to the following:
- Analyze and explain whether a contract was created between Clean and Pros under the UCC.
- Evaluate and discuss the rights and obligations of Pros following the inspection.
- Evaluate and discuss the rights and obligations of Clean, under the circumstances, following delivery and Pros’ inspection of the goods.
Background Facts You Need To Know: The Clean-N-Shine (“Clean’) owners recognize the importance of effective recruitment and hiring. They feel competent about recruiting and hiring new Clean management but want to hire an expert to recruit and hire employees to develop and manage their website, internal computer systems, and IT support.
They agree to hire a recognized expert in this area, George Tacy, to act as Clean’s agent in hiring website/computer/IT employees. The owners want to give full authority to Tacy to direct every aspect of recruitment and hiring of these employees, from the initial recruitment of applicants to the final hiring process.
Clean owners want to ensure that their agreement with Tacy will be valid and include all important terms. They have requested a meeting with TLG to discuss agency agreements.
Winnie and Ralph have asked you to join the meeting and respond to some of the Clean owners’ questions about agency law.
Winnie and Ralph direct you to draft responses to several questions for the Clean owners’ meeting.
- Analyze and explain the rights of Cleanunder the agency agreement with Tacy.
- Analyze and explain two specific duties Tacy must perform under the agency agreement with Clean.
- Analyze and explain two potential liabilities Cleancould face under the agency agreement with Tacy.
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