Audit: Doctrine of Privity and Case Study

Jameson Family Farms (JFF), a family owned business, grows, processes and packages a range of fruits and vegetables, but primarily specializes in growing and selling peanuts. The company has a niche for selling their particular salted and unsalted peanuts to grocery stores and baseball stadiums in the southeastern region of the US. The product offerings have been stable over the last five years, but the company began internet sales in 2010, which increased sales by about $19 million in 2010 over 2009. The commodity business for peanuts, however, is very competitive and seven to eight major companies vie for US sales. JFF’s has annual audits for lending

The three common exceptions to the exclusionary rule are the good faith exception, the inevitable discovery exception, and the

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Quality Objectives - The quality objectives define measurable goals relative to the company's quality management system. Requirements on the quality objectives are in ISO 9001:2008 section 5.4.1.

Pharmaceutical Society of Great Britain v Boots cash chemist (Southern) Ltd was a Court of Appeal decision on the nature of an offer. The court held that a display of an item in a store with a price tag is not enough to constitute an offer. Such a display would be a mere invitation to treat.

Every contract is based on the concept of agreement. A contract is defined as a legal agreement consisting of exchange of promises which is recognized by law as giving rise to enforceable rights and obligations. The test of agreement is used to ensure whether or not there is a contract between the parties. Whereas the objective test ensures certainty, the same cannot be said about the subjective test of agreement. The objective test of agreement is when the court decides whether there is contract based on the outward appearance of what constitutes the contract. However the subjective test of agreement involves trying to establish whether there was a “meeting of minds” when the contract was made. That is, to try to figure out the mental state of mind of the parties involved during the time the contract was made.

HN6"Mutuality of contract as now commonly understood should properly be taken to be sufficiently complied with when there are promises on each side that something shall be done for the benefit of the other side furnishing therefor [sic] considerations by each party, although they may relate to different terms of the contract and may be

3. With regard to illegality of a contract, what is the difference between a divisible and an indivisible contract?

The plaintiffs, Phillips found out the cheque was dishonoured after the rogue was sold the ring to the defendant. Therefore, the plaintiffs sued the defendant to claim back his jewellery. However, end up the defendants had good title to the ring and the contract is not void. This is because the plaintiffs was intended to deal with the rogue before the rogue pretended to be Sir George. There was no mistake of identity can found in this case.

Case 1 Bert owned an early historic speed boat which he decided to sell for $50,000. Bert told his friend James and James said he was very interested and would Bert give James the first right to buy the speed boat. Bert agreed to do so. After a few weeks Bert asked James if he still wanted to buy the speed boat. James said he was seriously thinking about it. Bert told James he was going to advertise the speed boat "for sale at $60,000 or near offer" on the Historic Speed Boat Club's notice board. In response to the advertisement in the club Bert received a telephone call from Alphonse. Bert told Alphonse the speed boat was for sale "But someone has right of first refusal." Alphonse then expressed surprise and asked Bert if he was selling or not. Bert said he was selling the speed boat for $60,000 or near offer and invited Alphonse to call and inspect the boat. Alphonse called on Bert and after inspecting the boat offered Bert $50,000 for it. Bert said he would have to speak to James before accepting. Alphonse then said he would pay Bert the asking price of $60,000. Bert told Alphonse to wait a minute and Bert went into his office and rang James telling him what Alphonse had said. James said he would buy the boat for $50,000 as originally agreed. Bert said to James "I suppose I have to sell the boat for $50,000 to you". Bert then told Alphonse about the conversation with James.

Besides that, goods on display is an invitation to treat and it is not an offer. (Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd［1953］ 1 QB 401)

Merry-Go-Round (MGR) is a clothing retailer that was founded in 1968. The company’s locations were in malls that targeted the youth and teen market. In the late 1980s, the company was listed by Forbes magazine as one of the top 25 companies. By the early 1990s, sales fell due to stiff competition from other retailers. Facing bankruptcy, the company hired turnaround specialists from Ernst and Young (E&Y) to help overcome the financial crisis. However, the company filed for Chapter 11 reorganization and due to that a group of 9,000 creditors filed a lawsuit against E&Y saying they were the main reason for MGR’s decline.

| * David should keep a straightforward and honest relationship with MAL. * David integrity will be compromised if these errors are discovered.

* On the job training is the primary method for employees to learn policies and procedures.

There are two cornerstones of contract law: sanctity of contract and reasonable expectations of honest men. The former relies on the ideal that once parties duly and autonomously enter a contract, they are bound by and must honour the terms and obligations of the contract. This principle allows for commercial certainty, where parties are aware that non-fulfilment of obligations constitutes a breach in contract. The latter expounds beyond the strict obligations held under the sanctity of contract, and allows modification of contractual relationships to fulfil the expectation of honest and fair dealing between parties.