The Legal Environment of Business: Text and Cases
10th Edition
ISBN: 9781337535878
Author: Frank B. Cross; Roger LeRoy Miller
Publisher: Cengage Learning US
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Chapter 14, Problem 4BCP
Summary Introduction
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.
Summary Introduction
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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Melodee Lane Lingerie Co. was a tenant in a building where alarm systems were maintained by the ADT company. When the systems were defective and allowed water into the building, it damaged Melodee’s property; Then Melodee decided to sue ADT and their defense was that the service contract limited the liability to 10% of the annual service charge given to the customers. The limitation can be valid since the ADT company did not provide much liability protection. The ADT company can offer another protection plan to Melodee, which would cover her property but at a higher price rate. This case limitation of liability clauses will be enacted since ADT company was not fully liable for Melodee's property, which only would cover the limited 10%. A limitation of liability clauses contract states that one of the parties is not fully liable for damages in case of a breach. The ADT company is at fault for the malfunctions in their systems they should offer a higher…
Syncrude ordered 30 gearboxes from Hunter, a manufacturer, to drive its conveyor belts in the Alberta tar sands project. Syncrude provided specifications of what the gearboxes were required to do, and Hunter designed them to meet those specifications. The contract contained an express term guaranteeing the gearboxes for two years. When the period had expired, the gearboxes developed faults that were found to be due to faulty designed.
Issues: Liability of Hunter for the design faults which caused the gearboxes to fail; Liability of Hunter under the statutory warranty in the Sale of Goods Act?
S insured his appliance store under an owner, landlords, and tenant’s policy that included products liability coverage. While he was demonstrating a microwave oven the door came open and injured a customer. Which of the following would protect S?
The oven manufacture’s products liability policy
The premises-operation section on S’s policy
The products Liability section on S’s policy
The incidental contracts section of S’s policy
Chapter 14 Solutions
The Legal Environment of Business: Text and Cases
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