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Question 1:

For five years, clothing makers and marketers Style-One Corporation and Trend Now, Inc., both use the phrase "Looks Great" on their labels. Style-One files a suit against Trend Now, claiming trademark infringement. Trend Now argues that the phrase generally is not associated with any particular firm and that other companies use the same phrase on their labels and in their ads. In whose favor is the court most likely to rule, and why?

Question 2:

Isabel owns a house, which she advertises for sale for $300,000. On April 1, Jon-Pierre offers Isabel $280,000 for the house. On April 5, Isabel has delivered to Jon-Pierre at his office a form that includes additional terms but does not state a price. At 9 a.m. on April 6, Jon-Pierre signs the form and gives it to Karla, his administrative assistant, with instructions to mail it. At 10 a.m., Isabel calls to tell Jon-Pierre that the deal is off. The next day, Karla mails the signed form to Isabel. When Isabel refuses to sell the house to Jon-Pierre, he files a suit against her, alleging breach of contract. Isabel claims that there was no contract. What are arguments supporting each party's position? What is the court likely to rule? Explain.

Question 3:

Rush's Pasta & Pizza employs Sigfried as a delivery driver. Rush's guarantees that an order will be delivered within thirty minutes or there is no charge, and insists that its drivers meet the limit. One night, while making a delivery, Sigfried is caught in a traffic jam. To deliver the order within the thirty-minute time limit, Sigfried drives onto a sidewalk and hits Tanya, a pedestrian. Is Rush liable to Tanya for her injuries? Is Sigfried liable to Tanya? Why or why not?

Question 4:

A contract between two parties contains the following language:

"This Agreement contains the entire understanding of the Parties and supersedes any and all prior agreements. The Parties further agree that this Agreement cannot be changed, amended, modified, altered, waived, discharged, released or terminated except by a written instrument or instruments signed and or duly executed by the Parties."

We recently discussed this type of contractual language in class. What is it called? What does it mean?

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Accounting Basics, Accounting

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