Preview

Scuppernong Grapes: Case Study

Good Essays
Open Document
Open Document
926 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Scuppernong Grapes: Case Study
Running head: Scuppernong Grapes

Jennifer K. Smith
Liberty University
Scuppernong Grapes
28 January 2014

The Scuppernong Grapes Distribution Company should discontinue business with Don. Don did not act in good faith when requesting a minor to sign a contract. Don may be able to pursue some legal action against the grape distribution company, but it is in a good position to defend itself. Additionally, while Don does not claim to be a Christian and should therefore not necessarily be held to Christian beliefs, Don did not act with integrity or even a strong sense of professionalism in this particular instance.
North Carolina law includes a doctrine called the “implied covenant of good faith and fair dealing” (Meek, …show more content…
First, he asked the seventeen year old son, a minor, to sign the requirements contract. This at least appears to be suspicious on the surface. He was also dishonest by downplaying the importance of the contract to the minor by calling it “just a formality.” A guaranteed price schedule is not a formality; it is a significant agreement to which both parties should be complicit. Finally, Don never mentioned the contract to the owner of the Scuppernong Grapes Distribution Company which is also suspicious. All of these things point to Don not dealing with the Scuppernong Grapes Distribution Company in “good …show more content…
Don could choose to invoke one of several legal principles against the Scuppernong Grapes Distribution Company. Implied Contracts arise based on the conduct of involves parties “showing a mutual intent to contract” (Contract, n.d.). Promissory Estoppel protects someone when he/she believes a promise for a service has been made and the breaking of that promise will result in a loss for that person (Promissory, n.d.). Don could argue this principle because he believes he was promised a regular shipment of product at a regular price and he will likely lose some business and/or profit if he no longer carries the Scuppernong Grapes. It may especially result in a loss for Don if he has to purchase the grapes at a higher cost than was “agreed” to in the requirements
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Mandatory Memo
    • 1212 Words
    • 3 Pages

    Mandatory Memo

    The muscatine products were a success so naturally I continued to place orders for the products by phone and paid the invoices as the money became available; at this point in the business relationship there was no written contracts signed between Mrs. Doe’s business and mine thus my understanding is that our contract was of the implied variety, meaning that the action of my ordering and her supplying was the contract. After a few months I began hearing chatter about the popularity of muscadine grape products, and as a vendor I needed to get some legal documents locking down my business relationship Mrs. Doe’s vineyards before the price of the supply went too high. When I first started my company 2011, I remember reading a book about the laws of supply and demand. I remember reading that as the rise in demand grew the cost of the supply would grow as well. To refresh my memory I went back over that book and there it was in black and white “to make money within this cycle, get in early and get out early. That is, increase your supply as the demand starts to rise and cut your price as the demand starts to fall” (Ball K., Seidman. D 2011). Clearly our implied relationship was…

    • 1212 Words
    • 3 Pages
    Powerful Essays
    Read More
  • Good Essays

    Law 421 Case Scenario: Big Time Toymaker.
    • 753 Words
    • 4 Pages

    Law 421 Case Scenario: Big Time Toymaker.

    The parties did have a contract for exclusive negotiation rights as stated in the case scenario. Big Time Toymaker (BTT) paid Chou $25,000 for a 90-day period of exclusivity, thus prohibiting Chou from soliciting or entertaining offers from other parties. The agreement stipulated that unless it was written no distribution contract existed. Prior to the 90-days elapsing, the parties reached an oral agreement and BTT sent Chou an e-mail titled “Strat Deal” covering the key terms of the distribution agreement reaffirming the oral agreement. This e-mail does not constitute a contract for several reasons. First, this was part of the negotiation process and Chou failed to draft the contract to “memorialize" the deal. Second, the requirement of a signature is in compliance with the statute of frauds. This is the one element uniformly required to compel a court to enforce.…

    • 753 Words
    • 4 Pages
    Good Essays
    Read More
  • Better Essays

    BUSI561 Legal Issues in Business
    • 1374 Words
    • 6 Pages

    BUSI561 Legal Issues in Business

    Let me begin by assessing the current situation and relationship with Don. Don and I met because of our individual desires to walk with Christ. We developed our friendship that eventually evolved to a business relationship; we are both small business owners. Our business venture started under favorable circumstances consistent with implied duty of faith and fair dealings. According to Kubasek, Brennan, &Browne (2012), an implied contract is formed by conduct of involved parties rather than written or spoken words. That was exactly the case between us. Don would place routine orders and would generally pay all invoices due within 45-60 days. I continue to supply him with my product [Scuppernong grapes] at consistent prices. The situation appeared to be mutually beneficial. Just recently, my product started to gain popularity that resulted to increased demand far in excess of my ability to supply. A company in Connecticut presented an extremely advantageous offer. After contacting Don to inform him of the circumstances, I was informed that my 17-year-old son who is a part-time deliveryman signed a requirements contract on behalf of my company. Neither my son nor Don had mentioned the existence of the contract before.…

    • 1374 Words
    • 6 Pages
    Better Essays
    Read More
  • Good Essays

    Law and Car Company
    • 770 Words
    • 4 Pages

    Law and Car Company

    Steve the salesperson was completely liable under the law for entering a contract with an underage minor. As a car company representative there is protocol which must be used when entering into any contract and a major part of protocol is to ensure that both parties are of legal age at the time of sale.…

    • 770 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Big Time Toymaker
    • 1420 Words
    • 6 Pages

    Big Time Toymaker

    This scenario deals with Big Time Toymaker and a contract they were negotiating with Chou, the inventor of a new strategy game that BTT wanted exclusive negotiation rights for a 90-day period. When Chou received an email with the details of what they were going to agree upon, he thought that was the contract and did not proceed in drawing up a contract himself. Months passed and when BTT changed management, they informed Chou that they were not interested in distributing his new strategy game, Strat.…

    • 1420 Words
    • 6 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Statement of Facts
    • 554 Words
    • 3 Pages

    Statement of Facts

    A valid contract does not exist between Mr. Lotts and Mr. Bibe because Mr. Bibe had no power to make a contract of any kind because he was entirely without understanding.…

    • 554 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Case Scenario: Grocery, Inc.
    • 2318 Words
    • 7 Pages

    Case Scenario: Grocery, Inc.

    Scenario: Grocery, Inc. is a retail grocery store chain based in Any State; U.S.A. Grocery has stores throughout the United States. Grocery has written contracts with many different vendors to purchase the products they sell in their stores. Vendors range from individuals to international corporations. Tom Green works as the produce manager for the store in My Town, U.S.A. Jeff Fresh, 17 years old, is spending his summer vacation working for Tom in the produce department.…

    • 2318 Words
    • 7 Pages
    Better Essays
    Read More
  • Better Essays

    Mondavi Procurement Management
    • 1943 Words
    • 8 Pages

    Mondavi Procurement Management

    This paper will describe the contract administration policies, procedures, tools and termination procedure for the Robert Mondavi Winery, external influences on the procurement management process, the role of risk management in contract administration, and how effective procurement management can lead to successful outsourcing by Mondavi.…

    • 1943 Words
    • 8 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Bob Pagan Ford, Inc. vs. Charles T. Smith, Jr.
    • 322 Words
    • 1 Page

    Bob Pagan Ford, Inc. vs. Charles T. Smith, Jr.

    OVERVIEW: Appellant automobile dealer, brought an action against appellee, its former employee, to enforce a written covenant in his employment contract not to compete in automobile sales business within the county for a three-year period. The trial court ordered a permanent injunction against appellee for a reduced period of six months, retroactive to the date of employment termination. Appellant sought review, contending that the trial court abused its discretion in reducing the covenant's duration. The reviewing court affirmed, finding no abuse of discretion in the trial court's decision. The court explained that because the injunction expired seven months prior to the court's decision, reinstatement and extension of the injunction imposed a more onerous burden on appellee than was reasonably necessary to protect appellant's business and good will.…

    • 322 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Stonebrook Case
    • 286 Words
    • 2 Pages

    Stonebrook Case

    The common idea of good faith and fair dealing is normally used when there are technical excuses for a breach of contract or specific wording. This principle may be used in different occasions such as fraud (McClain v Octagon Plaza), question of fact (Shah v Cover-it, Inc), unfair and unjust enrichment (Stainbrook v Low) and occasions such as reciprocal duties (Smith v. City and County of San Francisco).…

    • 286 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Gb519 Unit 4 Paper
    • 937 Words
    • 4 Pages

    Gb519 Unit 4 Paper

    The founder and CEO of EBI recently received a proposal from the vice president of Great Deal, Inc. (GDI), a large discount retailer. The vice president proposed a joint venture between his company and EBI, citing the growing demand for organic products and the superior distribution channels of his organization. Under this venture EBI would make some minor changes to the manufacturing process of some of its best-selling baby foods, which would then be packaged and sold by GDI. Under the agreement, EBI would receive $3.10 per jar of baby food and would provide GDI a limited right to advertise the product as manufactured for Great Deal by EBI. Initial calculations determined that the direct materials, direct labor, and other variable costs needed for the GDI order would be about $2 per unit as compared to the full cost of $3 (materials, labor, and overhead) for the equivalent EBI product. The CEO must decide whether or not to accept the proposed venture from…

    • 937 Words
    • 4 Pages
    Better Essays
    Read More
  • Powerful Essays

    Arnie Grape: Case Study
    • 2239 Words
    • 9 Pages

    Arnie Grape: Case Study

    I received a call from a Deputy Sherriff in Endora reporting the repeated dangerous activities involving the minor child, Arnie Grape. In my role, I must assess not only the actions of the minor, but I must also assess the living conditions (i.e. family , home, siblings, etc.) and make a recommendation for the child’s future supervision and appropriate sustained support for the family in-residence with the minor.…

    • 2239 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Unit 5 Case Study
    • 310 Words
    • 2 Pages

    Unit 5 Case Study

    “Millie contracted to sell Frank 10,000 bushels of corn to be grown on Millie 's farm. Due to a drought during the growing season, Millie 's yield was much less than anticipated, and she could deliver only 250 bushels to Frank. Frank accepted the lesser amount but sued Millie for breach of contract. Can Millie defend successfully on the basis of outcome impossibility of performance? Explain”…

    • 310 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Difference Between Belle And Frieda
    • 224 Words
    • 1 Page

    Difference Between Belle And Frieda

    4. Dan has no rights against Ben to receive the $100.00. Although Ben created an offer by telling Dan he would pay him $100.00 and Dan accepted the offer, the consideration, Dan assisting with the landscaping project, happened in the past. This case is similar to the one in which Leah was not given the apartment she was promised. Because Dan’s end of the bargain, was already complete he faced no detriment and therefore he has no rights against Ben.…

    • 224 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Good Essays

    Frigaliment V. B. N. S. Case Study
    • 675 Words
    • 3 Pages

    Frigaliment V. B. N. S. Case Study

    Facts: Frigaliment sued B.N.S. There were two contracts that involved selling chickens. In the first contract B.N.S was in agreeance with selling 75,000 pounds of 2.5-3 pounds of chicken, to Frigaliment. 50,000 pounds of chicken at 2.5-3 pounds at a higher price were agreed in the second contract. B.N.S fulfilled the first contract with two shipments. The first shipment fell short. B.N.S made up for the short shipment in their second shipment. Frigaliment accused B.N.S of shipping the larger chicken not to their expectations. Frigaliment protested the rest of the shipments. B.N.S said that their only obligations was to ship chicken that met the requirements stated in the contract.…

    • 675 Words
    • 3 Pages
    Good Essays
    Read More

Related Topics