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1. Greg, a used car salesman, tells Shirley that she will like the air when driving a convertible. Shirley asks if the top leaks and Greg says that he has never seen a leak but that it was patched recently. Shirley buys the car and decides she does not like smelling the exhaust fumes of other cars and that the top does leak where it was patched. May she rescind (i.e., undo and avoid) her purchase? Explain.

2. Oscar, age 16, whose father is a wealthy bank president, obtains fake identification that lists his age as 21. He then purchases a $10,000 car, a $2,000 fur coat that he gives to his girlfriend, a new $1,500 suit for himself, and a round trip first class airline ticket to Quebec, Canada. After his trip to Quebec, Oscar wants to disaffirm these agreements. Explain whether or not he can disaffirm these transactions under the law in a majority of the states.

3. In June, Daniels contracted with Lefkowitz to build a stone path leading from the road to his vacation home. Daniels asked him to complete the job within 11 (eleven) months. Explain whether Lefkowitz and Daniels must enter in a written agreement for such a contract to be enforceable.

4. The hotel workers union of Metropolis strikes in spite of a no-strike clause, causing several conventions to be canceled. Restaurant owners in Metropolis want to sue the hotel workers union for their loss of business caused by the canceled conventions. Will the restaurant owners win their suit?

5. The City of Gotham contracted with Ace Paint Contractors for the repainting of a steel bridge. The contract called for the use of Nopeel paint, a particular brand. It was later discovered that Ace used another brand of paint. Can the manufacturers of Nopeel paint recover damages from Ace for the breach of contract? Explain.

6. Wozniak’s Apple Co. contracts to sell 100,000 bushels of apples to Trader Vic’s Grocery Store, Inc. at $5.00 per bushel. An unexpected fungus kills 90% of the year’s apple crop and the wholesale cost of apples rises to $50 per bushel. Explain in detail if Wozniak’s Apple Co. is bound to perform the contract.

7. Sun Supply Co., a company supplying HVAC materials including filters, offered to sell Apartment Management, Inc. air conditioner filers at $15 per case in a signed writing that stated that the price was good for 60 (sixty) days. Apartment Management, Inc. discovered that other sellers charge $20 per case for identical air conditioner filters but before it can accept Sun Supply’s offer, Sun Supply withdraws the offer after only 30 days, stating that changed market conditions force it to charge more. Is Sun Supply allowed to withdraw its offer?

8. The carton in which the Weed King Trimmer was boxed stated that it was “able to cut down trees up to one inch in diameter.” Colby purchased a Weed King and discovered that it was unable to cut any trees. The owner’s manual in the carton contained instructions for ordering a special tree cutting attachment that was not included. Does Colby have any recourse against Weed King or the hardware store where he bought it?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M93109536

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