1. Ken owns and operates a famous candy store and makes most of the candy sold in the store. Business is particularly heavy during the Christmas season. Ken contracts with Sweet, Inc. to purchase ten thousand pounds of sugar to be delivered on or before November 12. Ken has informed Sweet that this particular order is to be used for the Christmas season business. Because of production problems, the sugar is not tendered to Ken until December 10, at which time Ken refuses it as being too late. Ken has been unable to purchase the quantity of sugar needed to meet the Christmas orders and has had to turn down numerous regular customers, some of whom have indicated that they will purchase candy elsewhere in the future. What sugar Ken has been able to purchase has cost him 35 cents per pound above the price contracted for with Sweet. Ken sues Sweet for breach of contract, claiming damages. Discuss the result fully.
2. Greenbaum commissions a $230,000 sculpture from Edmar, a famous artist. Edmar will create a sculpture that shows man’s dependence on nature. The design and size of the sculpture will be decided by the artist. The sculpture is to be delivered to Greenbaum’s sculpture garden within 18 months. Within four weeks, Edmar shows Greenbaum preliminary sketches of the sculpture whichGreenbaum dislikes. Edmar makes several changes, but Greenbaum decides he no longer wants a sculpture and refuses to allow Edmar to install it. Edmar sues Greenbaum for payment of $230,000 under the contract. Greenbaum defends by arguing that he has no legal obligation to pay Edmar. Decide the case discussing the arguments of both parties.
3. Will Greene, an experienced promoter and producer of musical concerts, entered into a contract with Len Rencel, a rock singer, whereby Greene would promote several concerts for Rencel. Rencel belonged to the American Federation of Musicians (AFM), a union that represents most big-name musicians. The contract between Greene and Rencel was on a standard, preprinted form required to be used by all AFM members. The contract contained an arbitration clause that required any disputes regarding the contract to be heard and decided by the executive board of the AFM. When a monetary dispute arose between Greene and Rencel regarding the division of proceeds from the concerts, Greene sued Rencel in court. Rencel filed a motion to compel arbitration. Greene argued that the arbitration clause was unenforceable. Is Greene correct? Why or why not? What legal theory will Greene argue?
4.In November 1959, Raymond Poole, a 33-year-old college graduate, went to the Ballroom Dance Studio to redeem a certificate entitling him to three free dance lessons. At that time, he lived alone in a one-room attic apartment. During the free lessons, the instructor told Poole that he had “the potential to be a fine, accomplished dancer.” Poole then signed up for more lessons. He attended lessons regularly and was praised and encouraged by the instructors despite his lack of progress. Contract extensions and new contracts for additional instructional hours were executed, which Poole prepaid. Each written contract contained the bold-type words, “Noncancellable contract.”
On September 24, 1961, Poole was severely injured in an automobile accident. At that time he had contracted for a total of 2,734 hours of dance lessons, for which he had prepaid $24,812. When the Ballroom Dance Studio refused to refund any of his money, Poole sued to end the outstanding contracts and recover the money for his prepaid lessons. What argument(s) can Poole use to end the contracts? What argument(s) will the Ballroom Dance Studio make? Decide who will succeed.
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5.On January 2, 2012, Delta Miller began a one-year contract of employment as a human resources manager for the J. Smythe Company. After four months at her new job and in the middle of a major project, Miller realized that she hated human resources work. On an impulse, Miller bought a one-way ticket to Brazil, where she planned to spend a year living in the rain forest. Before her departure, Miller convinced Victor Mullins, her former BLAW 201 classmate from Drexel, to take over her job. Mullins began working for Smythe, and within a week, Smythe was objecting to Mullins’ work style. Smythe fired Mullins and immediately filed a lawsuit against Miller for breach of contract. Did Smythe have the right to fire Mullins? What is the basis for Smythe’s lawsuit? Decide who will prevail and discuss fully the arguments and legal theories used by both Smythe and Miller.
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