Case summary: Company F contracted with company RB to install an awning system for outdoor seating coverage area. RB was disappointed with the execution of the work but did not gave any time to F to improve the error in the execution of the work. After two months of usage, the awning system was removed for the replacement of building’s siding and some defects were found in the welds. Both the parties differed in their opinion on damaged welds. RB paid F only
To find: The right of RB to rescind the contract and obtain the paid price.
Case summary: F contracted with RB to install an awning system for outdoor seating coverage area. RB was disappointed with the execution of the work but did not gave any time to F to improve the error in the execution of the work. After two months of usage, the awning system was removed for the replacement of building’s siding and some defects were found in the welds. Both the parties differed in their opinion on damaged welds. RB paid F only
To find: F’s right to recover the differences between the paid and the contracted price.
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Chapter 14 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
- John Campbell, an employee of Manhattan Construction Company, claims to have injured his back as a result of a fall while repairing the roof at one of the Eastview apartment buildings. He filed a lawsuit against Doug Reynolds, the owner of Eastview Apartments, asking for damages of $1,500,000. John claims that the roof had rotten sections and that his fall could have been prevented if Mr. Reynolds had told Manhattan Construction about the problem. Mr. Reynolds notified his insurance company, Allied Insurance, of the lawsuit. Allied must defend Mr. Reynolds and decide what action to take regarding the lawsuit.Some depositions and a series of discussions took place between both sides. As a result, John Campbell offered to accept a settlement of $750,000. Thus, one option is for Allied to pay John $750,000 to settle the claim. Allied is also considering making John a counteroffer of $400,000 in the hope that he will accept a lesser amount to avoid the time and cost of going to trial.…arrow_forwardNational-Southwire Aluminum Company (NSA) owns and operates a plant that emits fluoride. When its wet scrubbers were turned off as part of its regular maintenance program, NSA discovered no appreciable change in ambient fluoride levels. Because of the expense of operating the scrubbers and its belief that using the scrubbers did not significantly affect ambient fluoride levels, NSA desired to turn the scrubbers off permanently. Accordingly, NSA sought a determination from the Environmental Protection Agency (EPA) that turning off the scrubbers would not constitute a modification requiring the application of new source performance standards to the plant. Turning off the scrubbers would result in an increase of more than 1,100 tons per year of fluoride emissions with no decrease in the emission of any other pollutant. This increase was nearly four hundred times the level the EPA had established as inconsequential. The EPA determined that turning off the scrubbers would constitute a “new…arrow_forwardTube Art was involved in moving a reader board sign to a new location. Tube Art’s service manager and another employee went to the proposed site and took photographs and measurements. Later, a Tube Art employee laid out the exact size and location for the excavation by marking a four-by-four-foot-square on the asphalt surface with yellow paint. The dimensions of the hole, including its depth of six feet, were indicated with spray paint inside the square. After the layout was painted on the asphalt, Tube Art engaged a backhoe operator, Richard F. Redford, to dig the hole. Redford began digging in the early evening hours at the location designated by Tube Art. At approximately 9:30 P.M., the bucket of Redford’s backhoe struck a small natural gas pipeline. After examining the pipe and finding no indication of a break or leak, he concluded that the line was not in use and left the site. Shortly before 2:00 A.M. on the following day, an explosion and fire occurred in the building serviced…arrow_forward
- In employment establishments, an employee may be different from an independent contractor. By reference to case law, explain the tests used by courts to distinguish an employee from an independent contractor.arrow_forwardDiscuss any five (5) remedies available to the employees in case of breach of contract. b) With the aid of examples, explain the term vicarious liability.arrow_forwardAnalyze the legal principles and remedies available in cases of contract breach. Discuss anticipatory repudiation, material breach, and the concept of substantial performance. Explain the potential remedies available to non-breaching parties.arrow_forward
- Reaction to discussion below: In Melodee Lane Lingerie Co. v. ADT Co., the service contract's limitation of liability clause was lawful and enforceable. The equal parties freely entered the contract with knowledge of the potential risks, they should be bound by the agreement, including the limitation of liability clause that was clearly stated in the contract. As long as the contract and the clauses within it are clear, unambiguous, and negotiated between two equal parties, it will most likely hold in court as valid. These clauses divide the risk of loss among the parties and can limit one party's possible liability in the event of a breach even if it’s due to negligence. However, it is important to balance the competing policy interests at play. Although this opinion highlights freedom of contract and efficient risk allocation, it may also have the unintended effect of reducing incentives for companies to act responsibly and ensure the proper functioning of their services. As such,…arrow_forwardJack Tupp contracts to work for Iona Carr Autohaus during February for $1,800. On January 17, Iona Carr Autohaus wrongfully cancels the contract. Jack Tupp refuses to accept a similar job with another car dealership which would have paid him $1,650. If Jack Tupp sues Iona Carr Autohaus, how much in damages would he most likely recover?arrow_forwardMartha Simms is the plaintiff in a contract suit she has brought against Floral Supply, Inc., for its failure to deliver the green sponge Martha needed in building the floral designs she sells to exclusive home decorators. Martha had to obtain the sponge from another supplier and was late on seven deliveries. One of Martha’s customers has been called by Martha’s lawyer as a witness and is now on the witness stand, testifying about Martha’s late performance and the penalty she charged. The lawyer for Floral Supply knows that Martha’s customer frequently waives penalties for good suppliers. 1. In what legal tribunal the Simm’s case is tried? 2.To which jurisdiction does the trial of the Simm’s case belong?arrow_forward
- Martha Simms is the plaintiff in a contract suit she has brought against Floral Supply, Inc., for its failure to deliver the green sponge Martha needed in building the floral designs she sells to exclusive home decorators. Martha had to obtain the sponge from another supplier and was late on seven deliveries. One of Martha’s customers has been called by Martha’s lawyer as a witness and is now on the witness stand, testifying about Martha’s late performance and the penalty she charged. The lawyer for Floral Supply knows that Martha’s customer frequently waives penalties for good suppliers. Provide a paragraph with more than five sentences (i.e., in the section for “Purport”) that interprets the theme of the case, based on conceptsarrow_forwardMoulton Cavity & Mold, Inc., agreed to manufacture twenty-six innersole molds to be purchased by Lyn-Flex. Moulton delivered the twenty-six molds to Lyn-Flex after Lyn-Flex allegedly approved the sample molds. However, Lyn-Flex rejected the molds, claiming that the molds did not satisfy the specifications exactly, and denied that it had ever approved the sample molds. Moulton then sued, contending that Lyn-Flex wrongfully rejected the molds. Lyn-Flex argued that the Code’s perfect tender rule permitted its rejection of the imperfect molds, regardless of Moulton’s substantial performance. Decision?arrow_forwardDiscuss 6 main remedies for breach of contract.arrow_forward
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