Business Law Homework - Short Answer

BUSINESS LAW
Name:
Course:
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(December 17, 2011)
Business Law
Part Two: Short Answer (seven questions—each worth one point)
1. Smith purchased a new product, the Wonderslicer, designed to slice any type of dry food with amazing speed in a variety of settings. In the Wonderslicer owner’s manual, it clearly warned that the product should not be used on wet food. The Wonderslicer itself contained an embossed warning to read the owner’s manual before using the product. Smith’s 12-year old daughter used the product to slice oranges. In the process she received an electrical shock that burned her hand. Analyze and describe the liability(ies) of the Wonderslicer manufacturer, if any, in a strict product liability claim.
A liability claim can occur when there is a manufacturing defect, a design defect, or a marketing defect i.e. failure to warn the users (Cheeseman, 2007). However, in this case all the three seems to have been observed and Wonderslicer manufacturer had not been negligent in informing the customers of the use and misuse of the product on the manual. Nonetheless, public policy stress that liability should be held on the manufacturer so as to reduce the hazards to the customer’s lives from the product. The customers who suffer injuries from the products if at all they were defective are never prepared for the incidences, and hence the manufacturer should be able to take liability and cover it in the cost of the products (Blum, 2007). In case an accident such as the one on Smith’s 12-year old daughter occurs the company has the liability to offer general and constant protection by covering such a risk.
2. Compare and contrast the advantages and disadvantages of mediation, non-binding arbitration and court trial litigation. Give an example of a type of dispute for which mediation is appropriate.
Mediation in the cost is less than a law suit; in addition with effective problem solving skills mediation is an easier process since it will settle all pending issues and create peace among the parties as opposed to non-binding arbitration and court trial litigation where only the dispute is solved on legal basis (Emerson, 2009). There are at times when the a mediator impose decisions and this would be bad for the case, however in non-binding arbitration and court trial litigation the court asks for arguments of facts to determine the case. In non-binding arbitration the panel may have conflicting ideologies hence complicating the case. While mediation is effective for businesses mediation is good for personal cases.
An example where mediation is appropriate is in divorce since the parties have very many issues to handle such as children visitation and custody.
3. Bitsy was hired to write courses for EZ LogOn, Inc., a web-based computer training organization. EZ gives Bitsy course content guidelines, a contract for each course she writes, and pays her a flat fee for completion of each course. It takes 2 - 6 weeks to complete one course. EZ wants Bitsy to work at EZ offices during the regular 40-hour work week, unless she needs to be elsewhere to do research. EZ provides a computer, printing and editing services for Bitsy. Examine whether Bitsy is an EZ employee or an independent contractor, and describe why.
Bitsy is an independent contractor working under terms and conditions stipulated on the contract; this is because she is given course content guidelines, a contract for each course she writes and is paid a flat fee for completion of each course. This means that she can only be paid for the courses completed if she would be an employee she should not be paid based on a contractual basis but on periodical terms. In addition she should not be required to fill a contract for each course she writes since she is obligated by the company to write the courses. The working during regular 40-hour work week is for efficiency so that she can be able to access the facilities to enable her work efficiently.
4. Fran, Joe, and Mike formed a general partnership to operate a flower shop called Fab Flowers. One of Fran’s jobs is to make deliveries using the partnership truck. In one such delivery, Fran negligently ran a stop sign, striking a car driven by Peggy, causing damage to the car and injury to Peggy. Analyze and describe (1) the personal liability of Fran, Joe, and Mike, (2) the liability of the partnership, Fab Flowers.
By destroying an asset that belongs to the partnership due to negligence then it becomes a personal liability. He will have to cater for the expenses of the damage and consequences if any. He is personally liable to for the accidents and the consequences that come with it (Emerson, 2009). The liability of the partnership, Fab Flowers is to replace the delivery truck; this is because the business must continue to run and deliveries made. Since it is a partnership there are agreements made by the partners regarding assets and the contribution. They can agree to avail another delivery truck but charge it on Fran (who has a personal liability for causing the accident) so that the business does not stop or be sued for not making deliveries. Since they are three i.e. Fran, Joe, and Mike and then Fran disagrees Joe and Mike can decide since they are the majority.
5. Clark and Li did not have a contract, but Clark completed extensive landscaping in Li’s yard by mistake while Li was away on vacation. Clark sent Li a bill for the landscaping service but Li refused to pay. Determine the likely result if Clark sues Li to recover the costs of the landscaping.
The lack of contract between the parties does not mean that Li will go scot-free without paying Clark. Li can sue Clark for breach of trust since they had contacted each other to get involved in business. All Li needs is to proof that there was a business deal before Clark received the extensive landscaping. He needs to prove the fraudulent intentions of Clark and make sure that he has all the approximate costs incurred and the communications before he delivered the landscaping. In case Clark sues Li he is most likely recover the costs if only he proves that there was a promise of deal before the work.
6. Don promised to buy his girlfriend, Sophie, a new car. Sophie agreed to accept the car from Don and sold her old car. Don later refused to buy Sophie a car. Sophie sued Don to enforce the promise. Describe the agreement between Don and Sophie and your conclusions about the outcome of Sophie’s lawsuit.
To Sophie the unequivocal acceptance is still an enforceable law especially when the offeree (Dan) freely accepts the terms of the proposal. The court is justified to apply the unequivocal acceptance also known as the mirror image rule if one party tries to back out of the deal. Since it was a promise which was freely entered in to and you have already incurred due to the selling of her car. For Dan to back out of the deal it is very inconvenient and embarrassing to Sophie, she needs to sue Dan to cover the damage and also fulfill his promise.
7. Ahmed, who is not a merchant, made a verbal offer to sell his TV to Sallie for $300. A few hours later, Sallie telephoned Ahmed and left a voicemail message stating, “I accept your offer to buy y...