The purpose of Discussion Board Forums is to generate interaction among students in regards to relevant current course topics. A thread of 800–1500 words in response must be submitted through the Discussion Board Forum as well as through a SafeAssign link to check for plagiarism. For each thread and each reply, you must support your assertions with at least 3 outside sources (other than the text and course materials) and cited in current APA format. Acceptable sources include: books, legal cases, articles, the Bible, etc. Sources should be more substantial than basic internet dictionaries.

DISCUSSION BOARD FORUM 2 CASE STUDY

Topic: ContractsDon Willetts and his wife Dana began visiting the Sunday School class you teach in New Bern,NC, about 3 months ago. Don is not a Christian, but, with the encouragement of his wife who isa Christian, he says he is beginning to explore the faith.After his first visit to the class, you spent some time talking with Don. You discovered that heowns a small, local health food products business and that he is interested in growing thebusiness by adding some new product lines. You informed him of the high anti-oxidant qualitiesof the Scuppernong grapes your family produces company sells, and you asked him if he mightbe interested in promoting either the grapes themselves or the various products and pillsdeveloped using their seeds. Don was interested, and, a few days later, you supplied him withsome samples. The samples turned out to be a very popular item with his regular customers, sohe placed a modest phone order with your company. Over time, Don placed regular, increasingphone orders, and he began investing heavily in advertising for the Scuppernong products at hisstore. Your company has faithfully delivered everything requested, promptly, and at consistentprices. You typically sent an invoice with each delivery, requiring payment within 30 days, and,though Don had frequently been late making payment, he had generally paid each invoice within45 to 60 days. You had elected not to charge him any interest or penalties though your invoicesstate that you reserve the right to do so.On one occasion when your 17-year-old son, a part-time deliveryman for your company,delivered some product to Don’s store, Don handed your son a requirements contract and askedhim to sign it on behalf of your company. The contract included a guaranteed price scheduleconsistent with what he had been paying. Don told him that it was just a formality to guaranteea continuing business relationship. Your son signed the contract and gave it back to Don. NeitherDon nor your son mentioned the contract to you.After a columnist for the New York Times wrote an article praising the anti-oxidant qualities ofScuppernongs, the demand for Scuppernongs skyrocketed nationwide. Your company becameinundated with orders, far in excess of your ability to meet the demand. A company inConnecticut offered to pay you twice the going rate for your products, but the company alsorequired you to sign an output contract as a part of the deal.Though this contract would represent a substantial financial windfall for your company, you feltbad about potentially leaving Don out to dry. You called Don, advised him of the offer you hadreceived, and, to try and soften the blow, you suggested to him the names of other reputablepotential suppliers in the area.To your surprise, Don became very angry and told you that he expected you to continue tosupply him with all the product he needed, when he needed it, and at the prices he had alwaysPage 1 of 2
BUSI 561
paid per the requirements contract between your businesses as well as in accord with an impliedduty of good faith and fair dealing that had evolved based on your ongoing business relationship.When you asked what requirements contract he was talking about, he faxed you a copy of thecontract that had been signed by your son.Your assignment:Looking at the situation from both a legal and spiritual perspective:1. What should you do about continuing to do business with Don?2. If you elect to stop doing business with Don, what legal causes of action might hebring against your company, what damages or remedies might he seek, and what legaldefenses might your company have?In connection with this assignment you may want to research the following legal concepts andincorporate what you find in your DB response if you consider them relevant:•
Covenants of good faith and fair dealing
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Minor’s capacity to contract
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Fraud in the execution of a contract
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An employee’s capacity to bind a company by contract
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Section 2-306 of the Uniform Commercial Code
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Implied contracts
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Promissory Estoppel
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Custom and practice between merchants
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Any other legal concepts you believe may be relevant
You may also want to look at:Sons of Thunder, Inc. v. Borden, Inc., 148 N.J. 396 (1997).Jenkins, Sarah Howard (Fall, 2006). Symposium: Contracting out of the Uniform CommercialCode: Contracting out of Article 2: Minimizing the obligation of performance & liability forbreach, 40 Loy. L.A. L. Rev. 401.