BLHW4

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Passaic County Community College *

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Feb 20, 2024

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BUSINESS LAW I Homework Assignment No. 4 ( Basic Contract Law ) HW Objectives : 1. Develop practical research and critical thinking skills. 2. Enhance Learning of select concepts pertaining to the law of contracts. 3. Provide opportunity to enhance writing & summarizing skills. Instructions . The following Questions are designed to enhance the Student’s understanding of select contract concepts, including “meeting of the minds,” “implied contracts,” “at will employment contract” and “statute of frauds.” The scenarios set forth are based on actual court cases and you will be expected to read, understand and critically think about the contract principles and actual court decisions in those cases. Your responses must be your own, must be set forth in your own words and should demonstrate substantial knowledge of the causes of action identified in the question. Section I. A Meeting of the Minds ? This Section deals with the common law concepts that determine whether a binding and enforceable contractual agreement between the parties was legally formed. Courts such as the one in the case of In re Plankenhorn , 228 B.R. 638 (N.D. Ohio 1998)(a federal Bankruptcy court in the Northern District of Ohio) will use an objective, reasonable person standard to determine whether a “meeting of the minds” exist. Find the Plankenhorn case using Google Scholar, read it and respond to the following questions. Your Maximum point score for this Section is ten (10) points. 1. The core issue in this case was whether a valid bankruptcy claim or contract existed. Larry Browneller took his 1963 Chevy sports car to Hubert (“Debtor”), a semi-retired mechanic, and requested that the Debtor repair the car and make it show-worthy. Debtor told him that he could not make it “show quality” and Larry insisted that Hubert do “a damn good job.” Debtor kept the car and worked on it for several years with Larry’s knowledge. When Hubert finished the work, Larry refused to pay the bill alleging that it was not “show quality” as originally requested. Did the Court agree with Browneller’s argument that Debtor did not produce a car that was “show quality” as requested? (3 Points) No, the Court did not agree with Browneller's argument that the Debtor did not produce a car that was "show quality" as requested. The Court found that there was a misunderstanding between the parties regarding the quality of work that could and would be obtained. While the Debtor had stated that the work would not yield a car of "show" quality, Mr. Browneller believed that his request for a "damn good job" would result in a car that would be more competitive at the amateur car shows he frequents. 2. Explain whether the Court found that a legally binding and enforceable Contract existed between Browneller and the Debtor and the primary reason for its decision. (5 Points) The Court found that there was no legally binding and enforceable contract between Browneller and the Debtor. It determined that there was a material misunderstanding between the parties regarding the quality of work to be done. While the Debtor believed that the work would yield a presentable car, Mr. Browneller had higher expectations for the car, expecting it to be more competitive at car

shows. Due to this lack of a shared understanding, the Court concluded that no contract existed, and thus the claim of Mr. Browneller was disallowed. 3. Explain why the Court rejected Browneller’s claim that the Debtor Hubert was negligent in fixing his Chevy sports car. (2 Points) The Court rejected Browneller's claim that the Debtor, Hubert, was negligent in fixing his Chevy sports car. The Court cited case law and stated that when the injury to the promissee is simply the loss of the bargain, no tort claim arises because the duty of the promisor to fulfill the terms of the bargain arises only from the contract. As Browneller alleged no loss other than the loss of the bargain, his claim under negligence failed. Section II. Implied vs. Express Contracts . This Section requires you to read the case of Roger’s Backhoe Service, Inc. v. Nichols at the end of Chapter 8 of your eText and respond to the following questions regarding the case. Your Maximum point score for this Section is fifteen (15) points. 1. Did the Court find that an express or implied agreement existed between the parties? (3 Points) The Court found that an implied agreement existed between the parties. 2. Explain why the Court found that an implied agreement existed between the parties. (5 Points) The Court found that Roger’s Backhoe Service, Inc.'s services were beneficial to Nichols. Their efforts to locate the subterranean sewer system were necessary for the successful completion of the project, as the city had initially refused to allow the project to proceed without addressing the drainage issue. Therefore, their services conferred a benefit on Nichols. 3. Identify the legal standard that the Court used to determine that such an agreement existed. (4 Points) . The Court used the elements outlined in the action on an implied contract, requiring that the services were performed for the recipient, not gratuitously, and with the expectation of compensation, and that the services were beneficial to the recipient. 4. Explain whether the Court in the Plankenhorn case discussed in Section I might have properly considered that the Contract at issue there for the repair of Browneller’s car was an Implied Contract and why? (3 Points) In the Plankenhorn case discussed in Section I, the Court might have considered the contract for the repair of Browneller’s car as an implied contract if the conduct and actions of the parties indicated an understanding or agreement, even if not explicitly stated. The Court would have examined the circumstances to determine whether the services provided were beneficial to Browneller and were carried out under such circumstances as to give Browneller reason to understand that they were not gratuitously performed.

Section III. Implied Contracts and At-Will Employment . This Section requires you to read the case of Wooley v. Hoffmann LaRoche at the end of Chapter 8 of your eText and respond to the following questions regarding the case. Your Maximum point score for this Section is fifteen (15) points . This important New Jersey Supreme Court case continues to govern most employment relationships through its common law principles regarding at-will employment and identifies an exception for when an employee-at-will cannot be fired or discharged without cause. Your Maximum point score for this Section is fifteen (15) points. 1. Why did the trial court dismiss the Plaintiff’s Complaint and grant the Defendant Employer’s Motion for Summary Judgment? (3 Points ). The trial court dismissed the Plaintiff's Complaint and granted the Defendant Employer's Motion for Summary Judgment because it held that the employment manual was not contractually binding on the defendant, allowing the defendant to terminate the plaintiff's employment at will. 2. At the center of the New Jersey Supreme Court’s decision was the Employer’s Manual for its employees . Explain the importance of the manual from the fired Plaintiff’s perspective and the Defendant’s explanation of its importance or lack of it in this case. (5 Points). The Employer's Manual was crucial from the fired Plaintiff's perspective as it appeared to outline the company's termination policies, creating an expectation that termination would only occur for cause. However, the defendant argued that the manual was merely an expression of the company's philosophy and was not intended to create a binding contractual relationship. 3. Explain how the New Jersey Supreme Court decided this case and what was its view of the importance of the Manual? (5 Points). The New Jersey Supreme Court decided the case by emphasizing the significance of the Manual as an offer that sought the formation of a unilateral contract. The Court viewed the manual as an offer that employees accepted by continuing to work, creating a unilateral contract that limited the employer's right to terminate employees at will without cause. 4. Do you think the NJ Supreme Court’s decision was fair to both parties? Explain. (2 Points) . The New Jersey Supreme Court's decision aimed to balance the interests of both parties by emphasizing the importance of basic honesty and fairness. It required employers to be straightforward and transparent in their communication with employees. The decision sought to prevent employers from reneging on promises implied by employment manuals that employees reasonably believed to be binding contracts. By emphasizing the importance of honesty and clear communication, the Court attempted to create a fair framework for both employers and employees. Section IV. Statute of Frauds . This Section requires you to read the assigned eText regarding the Statute of Frauds and to find/read the case of Cohn v. Fisher , 118 N.J. Super. 286 (Law Div.

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