Scenario 1
Food Fair recently developed an online ordering
service for home delivery within a 10-mile radius of each of its stores. To use
the service, Food Fair requires customers to agree to terms and conditions
described on the website when first entering an online order. The terms and
conditions specify that that advertised sales prices do not apply to online
purchases, and that orders are limited to inventory on hand at the nearest
store to the purchaser. Ernie saw a Food Fair newspaper advertisement for
frozen burger patties at a reduced price. He uses the patties in his catering
business. Ernie attempted to make an online purchase of all the remaining
patties at the store nearest to him. The store advised him that it was sold
out; however, he was told that there were 10 cases available at other stores in
town and that there were 12 cases in inventory at the regional warehouse. Ernie
requested that the store obtain the patties from the warehouse. Food Fair
refused, citing the online terms and conditions. Ernie sued, claiming the terms
and conditions were not effective and that he should be able to obtain patties
at the sales price from all stores in town, as well as those available at Food
Fair’s warehouse; or he should receive damages equal to the amount of money he
would have made from selling the burger patties in his business.
Discuss the following issues:
·Is there a
contract? If so, what are its terms?
·Analyze
the application of common law of contracts and UCC Article 2 as they relate to
whether a contract was formed.
·Who will
win the lawsuit and what, if any, will be the winning party’s damages?
·Discuss
the contractual issues in this scenario that are unique to e-commerce?
Carol’s hobby was collecting American quilts.
Her collection was large and consisted of many rare items. One day, while
visiting with Ruth, a fellow collector, Carol said, "When I retire in a
two years, I am going to sell my collection to you." Ruth said she looked
forward to the day when she could buy the collection. Ruth then spent a year
and a great deal of money building a room in her house to display the
collection. When Ruth told Carol that she was building the room, Carol said
nothing. Carol also knew that Ruth had borrowed money to build the room. When
Carol retired, she sold her collection to someone else. Ruth sued Carol
claiming breach of contract.
·Are there any legal theories under which Ruth could prevail?
·Discuss the outcome of this lawsuit.
·Discuss the remedies available to Ruth if she wins the lawsuit.
·How would her damages be calculated?
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