Business Law Cases: DJ vs WeselleMCheap Cars and Others - Prof. David J. Sorin, Exams of Business and Labour Law

Download Business Law Cases: DJ vs WeselleMCheap Cars and Others - Prof. David J. Sorin and more Exams Business and Labour Law in PDF only on Docsity! Memorandum on behalf of Sorin and BLAW Students, LLP: DJ has gotten himself into many questionable situations that require heavy business law knowledge. However, as a student of business law under Professor Sorin, I am confident that with the information provided below, which came from analysis of all of DJ’s circumstances, each one of DJ’s law cases can be settled. DJ vs WESELLEMCHEAP CARS It appears DJ came to the car lot on time, but it does not specify if he was one of the first 15 customers with brown eyes. Regardless, WESELLEMCHEAP did have an advertisement that they would sell 15 brand new Chevy Suburbans to the first 15 customers with brown eyes for $12,000. They are allowed to do this, however just because DJ came and wanted to buy the car did not mean they had an agreement to sell it to him for $12,000. The advertisement was merely a way to get people to come to the dealership. When DJ arrived at the dealership, assuming he arrived on time, he was wearing brown contacts but it was known by someone at the dealership that what DJ was doing was fraudulent, so they would not sell him the car for the price of $12,000. DJ then offered to buy one of the cars from WESELLEMCHEAP for $17,000 and said he wanted to know whether or not they would accept the offer by 2:00 PM the next day and the acceptance needed to be Fedexed to him. The dealership took about an hour to think and then decided it would accept the offer of $17,000 and began to write out the acceptance into a letter and bring it to the Fedex office within an hour or so from when DJ left. Since DJ did not back out of the offer before the letter of acceptance was in the hands of the post office, DJ was entered into a contract to buy the car assuming that WESELLEMCHEAP did not want to change any terms of the contract. DJ never received the letter from WESELLEMCHEAP for some reason. A few days later the dealership called him notifying him that he had to pick up the car. He was a minor so DJ figured he did not have to pay for the car and can avoid the contract. This is true, except for this specific situation. Sometimes there are contracts minors cannot avoid. One exception to the rule where a minor cannot avoid a contract is when the minor makes the contract while running his business. This means that if the car he was going to buy was a necessity for his business then he cannot avoid the contract for it and must pay. DJ vs Henry Imtoodumbforwords If DJ were not a minor in this situation, Henry would not really be able to do much. Since the price of the car was over $500 there needed to be a written contract expressed for the selling of this car and an oral contract would not suffice had there been a problem that needed to go to court, which in this case there was. Also, many other issues arise. It does not state whether or not DJ has a valid driver’s license, or whether or not DJ was given the title to the car, or if he took the car to the DMV to have the title officially transferred, or if DJ paid tax on the price of the car being sold. Under the assumption that DJ was completely eligible to drive and all taxes fees and law abiding rules had been fulfilled then everything would be fine. In addition to probably losing his license for the crash of the Lexus he ‘bought,’ there would be an issue with what happened with the car. Though there was almost nothing left after the car was totaled, DJ would have to give it back to Henry. Along with the only parts of the car remaining, DJ would be entitled to provide proper compensation to Henry for the value of the car. Because he is a minor he wouldn’t have to provide the full money he paid for the car especially if there were no capacity to buy the car, but depending on where he lived and where this happened he would most likely have to provide Henry with some form of compensation in order to restore the status quo ante. DJ reached his limit of credit from the grocery store and was told it was time to pay. He laughed assuming he would not have to pay for anything. Once again, under the assumption that he was not one day away from 18, DJ would be able to avoid that contract. This contract was for the payment for necessaries. Since it was the payment for necessaries he could easily avoid the contract but would have to pay the reasonable value for furnished necessaries. Having to pay reasonable value for everything is something that he could not avoid no matter what. Any necessaries include food, clothing, and lodging. He could buy as much food as he wanted and refused to pay but because it was a necessary he would still have to pay reasonable value for it even if he was a minor and wanted to void the contract. DJ vs Drexel University If DJ made a promise to donate the money to a group or organization it would not have to do it normally. If the promise is to pay an organization for a charitable purpose then the promise is not voidable and the money promised must be paid. Keeping this in mind, DJ entered into an agreement with Drexel University that he would provide money to the school with the consideration that they would name the school after him. If they did not name the school after him then he could easily avoid the contract. Since DJ throughout everything was still under the age of 18, he could avoid the contract and was able to get out of the contract because it was not an exception to the rule. So for this situation because he is under the age of 18 he can avoid the contract and not donate the money. If Drexel University already invested money to create a structure in that has his name on it though he may have to pay compensation for it to be removed because he voided the contracted and back out. DJ vs Clothing Store The clothes that DJ wanted to buy for a party were not necessaries. DJ promised he would buy the clothes for $500 if the store would have it all tailored by the next day. The store agreed and had everything fully tailored and finished by the next day. The store accepted DJ’s offer and it was based on the consideration that the store would have everything perfectly ready for DJ by the next day. If it had not been ready the next day then the contract would have been void by the fault of the clothing store. DJ never came to pick the clothing up until the store called and told him it was ready. DJ said to the salesman that he would buy the clothes for $400 and the salesman said okay. When DJ came to pick up the clothes he paid $400 and was then sued the next day for the remaining balance. The original deal was that DJ promised to pay $500 for the clothes and that was what he owed. The store claimed that the $400 deal was not supported on the stores end by any consideration. They claimed the original deal was promised by DJ and supported by consideration of the store so he was already obligated to pay $400 plus $100 more for a total $500. While all claims made by the clothing store were true, it does not mean that they would win the case. When DJ called back saying that he would pay $400 for the clothing he was making a modification to the contract, and by the salesman saying okay he was accepting the contract. If they did not want to sell the clothes at that price they had to say no they would not sell it for $400. Any modification to a contract does not need to have consideration as long as both parties agree on the terms of the transaction. With everything being set as it was, DJ was a minor and could back out of any contract because he was a minor. The only thing is that he would have to return all his clothes and get his $400 back or he would have to provide some form of compensation for what he owed. DJ vs Good Nursing Home DJ told his mom that he would always be there to care for his mother when she needed it. His mom knew this and decided that she would then go and enter herself into an extremely expensive nursing home. She also set up the payments to go to DJ although DJ was unaware and not notified of this. When the nursing home called DJ expecting his payment for his mother he was not obligated to pay for the costs. The contract was entered into by his mother and it was thus his mother’s contract, not his, so there was no way he was required to pay for a contract that he himself did not enter into. One day he decided to drink heavily, which would be illegal if he was doing it in the United States, and he decided to go walk over to see his mother at the cheaper nursing home that she was at. He was highly intoxicated and he went to his mother and said he felt bad and wanted to send her to a better nursing home and that he would do it with the consideration that she forgave him. She of course accepted the offer and even though the offer had consideration the agreement lacked capacity because DJ was highly intoxicated and did not know what he was doing when he made that agreement. Because he did not know what he was doing and had not capacity the contract was void because it lacked capacity. DJ’s mother immediately called the better nursing home back and reserved a spot. DJ is not liable for this though because he was lacking capacity when he entered the agreement. Morally he may have had an obligation to fulfill with his mother but legally he definitely did not. DJ vs Lawyer DJ met with the lawyer who was a good friend of DJ’s mother. The lawyer pressured DJ into giving his mother the best and most expensive care. DJ entered into the contract however immediately was second guessing himself. He was now 18 and could not avoid the contract