Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

Sudson Washer and Dryer Service is in the business of leasing used washers and dryers to apartment landlords for a contracted lease term. The coin-operated machines are used by apartment tenants. Letisha, 25, a human resource clerk, owns a five-unit apartment complex. While she resides in one of the units, the others are occupied by tenants. Sudson contacts Letisha and offers to lease one washer and one dryer. The washer and dryer in Letisha’s apartment complex are old and worn-out. Anxious to keep her tenants happy, Letisha meets with Sudson’s salesman who presents her with a one-page agreement for the use of one washer and dryer for five years. The five-year term is standard and the front page of the contract states the lease period. Letisha (as lessee) and the salesman for Sudson (as lessor) sign the front page of the contract and Letisha retains a copy of the signed agreement. The salesman did not inform Letisha of, nor did she bother to read the back of the agreement which contained additional terms, one of which is an ”automatic renewal” clause that states: “If the lessee fails to provide a 90-day written notice to terminate the contract by certified mail to the lessor, the five-year lease term period shall automatically renew for three additional five-year terms and shall only be subject to termination by the lessor.” Letisha uses the machines for the five-year period and just a few weeks prior to the end of the term, calls Sudson to provide them with a courtesy notice saying she is not going to renew her agreement. The operator replies that since she failed to provide the 90-day written, certified notice of termination, the lease will be renewed for three five-year terms or another 15 years. Letisha says that she never saw that clause. The operator replies that it was her obligation to read the back page of the agreement and Sudson will require her to make monthly payments for the next 15 years. Letisha does not know what recourse she now has. Research whether Letisha has a contract formation or enforcement defense based on the legal and ethical use of automatic renewal clauses in lease agreements. If Letisha does not pay and Sudson sues her for breach of contract, what legal arguments could be raised in Letisha’s defense against the enforcement of the automatic renewal clause? Explain. •What legal arguments could be raised by Sudson in support of the enforcement of the automatic renewal clause against Letisha? Explain. •What ethical issues are raised, if any, by Sudson’s practice of using the automatic renewal clause in their lease agreements? Explain. •Does the Uniform Commercial Code Article 2A apply in this case? Explain. •Are there any government or private entities available to Letisha for lodging complaints about businesses which treat consumers unfairly? Explain. •If Sudson sues Letisha for breaching the contract’s automatic renewal clause, what do you think the outcome of the case will be? Explain.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91763984

Have any Question?


Related Questions in Operation Management

Assignment discussion-mungers mental modelsin his article

Assignment : Discussion-Munger's Mental Models In his article "A Lesson on Elementary, Worldly Wisdom as it Relates to Investment Management & Business," Charles Munger (1995) wrote about tools, techniques, and critical ...

Identify at least two distinct market segments for tesla

Identify at least two distinct market segments for Tesla model S or X. Each market segment description must include at least three (more if needed) of the characteristics from amongst any of the four bases categories, e. ...

Discussion audience and purposeshare with your classmates

Discussion: Audience and purpose Share with your classmates your planned audience and topic for the class proposal project.  Explain in descriptive detail why you selected the topic for your proposal (e.g., current probl ...

Morality deals with individual character and the moral

Morality deals with individual character and the moral rules that are meant to govern and limit our conduct. It investigates questions of right and wrong, duty and obligation, and moral responsibility. 'Ethics' can be us ...

Required text book c langley c john langley robert a

REQUIRED TEXT BOOK : C. Langley; C. John Langley; Robert A. Novack; Brian Gibson; John J. Coyle (2016) Supply Chain Management (12th Edition). Publisher: Cengage South-Western Chapter 8 Order Management and Customer Serv ...

Entrepreneurship in actionwho bears the loss for a shipment

Entrepreneurship in Action Who Bears the Loss for a Shipment of Missing Watches? On March 4, Pedro Pestana, a resident of Chetumal, Mexico, entered into a contract in which he agreed to purchase from the Karinol Corporat ...

Q1 factual recall - how does facebooks privacy management

Q1 (Factual Recall) - How does Facebook's privacy management of users' personal information affect the behavior of Facebook patrons? Q2 - (Opinion) - What is your opinion regarding how Facebook deals with privacy issues? ...

1 what are the different levels of diversification firms

1. What are the different levels of diversification firms can pursue by using different corporate level strategies and what are the advantages to diversifying their operations? (Post Reference) 2. Select two popular site ...

Choose any business organization of your interest and

Choose any business organization of your interest and analyze it accordingly. 1. Prepare a market plan to launch a new product or Services for your business in the market. 2. Analyze tools and technologies to support the ...

You are the supply manager for a us electronics

You are the Supply Manager for a US electronics manufacturer. The normal delivery quantity for part #654 is 10,000 units each working day; operating in a JIT mode. Your production schedule is for 20 days/month; 240 worki ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As