Commercial Law

Case scenario

Corgi was the breeder of prize-winning pedigree dogs that often sold for very high prices. Reynolds, a wealthy businessman who had recently retired, decided to purchase one of these dogs. His intention was to enter the animal in the various dog shows that were held from time to time across the country.

Reynolds knew very little about dogs. He explained to Corgi that he wished to purchase a young dog that was already a prize-winning specimen of the breed. Corgi took Reynolds to a fenced run where several young dogs were caged. He pointed to one dog that he said, in his opinion, had the greatest potential, and that it had already won a prize at a local dog show. Corgi pointed to a red ribbon pinned to the opposite wall of the kennel building and explained that it was a first-prize ribbon that the dog had won. Reynolds did not bother to examine the ribbon.

Reynolds purchased the dog for $1,000 and took it home. His neighbour later saw the dog in Reynolds' backyard. He instantly recognized it as the dog that had recently won the first-prize ribbon in the children's pet show at the neighbourhood park. When he told Reynolds where he had last seen the dog, Reynolds telephoned Corgi immediately and demanded his money back.

Corgi refused to return Reynolds' money or take back the dog, and Reynolds threatened to take legal proceedings against him. Reynolds was unable to do so immediately, however, as he was called out of town on a family matter the next day. He was obliged to leave the dog with his neighbour during his absence. Reynolds advised the neighbour to take care of the animal as if it were his own.

Reynolds was out of town for several weeks. During that time, his neighbour entered the dog in a dog show sponsored by a kennel club. The dog won first prize in its class for its breed. On Reynolds' return, the neighbour advised him of his success. The two men decided to enter the dog in another dog show that was scheduled to be held in a nearby city.
At this second show, the dog placed only third in its class, and Reynolds was disappointed. He returned home and immediately took legal action against Corgi.

Assignment Questions:

1. Identify the material facts, and the resulting issues that are raised in this case.

2. Discuss the nature of the claim and possible supporting arguments that might be raised by the Plaintiff.

3. Discuss the nature of the defense and possible supporting arguments that might be raised by the Defendant.

4. Render, with reasoning, your judgement.

5. Discuss 2 lessons that you feel can be learned from this case from a legal risk management perspective.

Guidelines:

1. Your report should reference at least 2 real world court judgements that you feel are relevant.

2. The length should be approximately 8 to 10 typed pages, single spaced.

3. Report is due December 7th, and is to be submitted via Blackboard.

4. All reports will be screened with anti-plagiarism software.