Smith and Roberson’s Business Law
17th Edition
ISBN: 9781337094757
Author: Richard A. Mann, Barry S. Roberts
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 22CP
Summary Introduction
Case summary:
Studios E entered into a contract for the construction of park ride with company T. Company T entered into the subcontract with company P to furnish and install all water treatment for the price of $959,131 and were paid $897,719. Project term was from April 2016 until June 2017. However, company P’s license was under suspension from October 2016 to March 2017. In addition, company P’s license had expired in January 2017. Company P had brought suit against studios E and company T.
To discuss: Who should prevail.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
International Underwater Contractors, Inc. (IUC), entered into a written contract with New England Telephone and Telegraph Company (NET) to assemble and install certain conduits under the Mystic River for a lump sum price of $149,680. Delays caused by NET forced IUC’s work to be performed in the winter months instead of during the summer as originally bid, and as a result, a major change had to be made in the system from that specified in the contract. NET repeatedly assured IUC that it would pay the cost if IUC would complete the work. The change cost IUC an additional $811,810.73; nevertheless, it signed a release settling the claim for a total sum of $575,000. IUC, which at the time was in financial trouble, now seeks to recover the balance due, arguing that the signed release is not binding because it was signed under economic duress. Is IUC correct?
Ronald D. Johnson is a former employee of International Business Machines Corporation (IBM). As part of a downsizing effort, IBM discharged Johnson. In exchange for an enhanced severance package, Johnson signed a written release and covenant not to sue IBM. IBM’s downsizing plan provided that surplus personnel were eligible to receive benefits, including outplacement assistance, career counseling, job retraining, and an enhanced separation allowance. These employees were eligible, at IBM’s discretion, to receive a separation allowance of two weeks’ pay. However, employees who signed a release could be eligible for an enhanced severance allowance equal to one week’s pay for each six months of accumulated service with a maximum of twenty-six weeks’ pay. Surplus employees could also apply for alternate, generally lower-paying, manufacturing positions. Johnson opted for the release and received the maximum twentysix weeks’ pay. He then alleged, among other claims, that IBM subjected him to…
Discovery. Advance Technology Consultants, Inc.(ATC), contracted with RoadTrac, LLC, to provide software and client software systems for the products of globalpositioning satellite (GPS) technology being developed byRoadTrac. RoadTrac agreed to provide ATC with hardwarewith which ATC’s software would interface. Problems soonarose, however. ATC claimed that RoadTrac’s hardware wasdefective, making it difficult to develop the software. RoadTrac contended that its hardware was fully functional and thatATC had simply failed to provide supporting software.ATC told RoadTrac that it considered their contract terminated. RoadTrac filed a suit in a Georgia state court againstATC alleging breach of contract. During discovery, RoadTracrequested ATC’s customer lists and marketing procedures.ATC objected to providing this information because RoadTrac and ATC had become competitors in the GPS industry.Should a party to a lawsuit have to hand over its confidential business secrets as part of a…
Chapter 13 Solutions
Smith and Roberson’s Business Law
Ch. 13 - Prob. 1COCh. 13 - Prob. 2COCh. 13 - Prob. 3COCh. 13 - Prob. 4COCh. 13 - Prob. 5COCh. 13 - Prob. 1QCh. 13 - Prob. 2QCh. 13 - Prob. 3QCh. 13 - Prob. 4QCh. 13 - Prob. 5Q
Ch. 13 - Prob. 6QCh. 13 - Prob. 7QCh. 13 - Prob. 8QCh. 13 - Prob. 9QCh. 13 - Prob. 10QCh. 13 - Prob. 12CPCh. 13 - Prob. 13CPCh. 13 - Prob. 14CPCh. 13 - Prob. 15CPCh. 13 - Prob. 16CPCh. 13 - Prob. 17CPCh. 13 - Prob. 18CPCh. 13 - Prob. 19CPCh. 13 - Prob. 20CPCh. 13 - Prob. 21CPCh. 13 - Prob. 22CPCh. 13 - Prob. 23CPCh. 13 - Prob. 1TSCh. 13 - Prob. 2TSCh. 13 - Prob. 3TS
Knowledge Booster
Similar questions
- Assume that Elkins contracted to build an addition to Cromwell’s plant producing cruise missiles just prior to the Gulf War. The war ended before Elkins started work, and Cromwell tried to cancel the contract. Can Elkins do anything about the loss of his anticipated profit (a) if the contract contained a proper cancellation clause? (b) if the contract contained no clause dealing with cancellation?arrow_forwardDr. Pooneh Hendi Glascock, a female physician of Iranian origin, entered an “Independent Contractor Physician Service Agreement” with Linn County Emergency Medicine (LCEM) in May 2007 to work as an emergency room physician at Mercy Medical Center in Iowa. The Agreement was for one year and could be renewed for an additional year unless terminated by either party with 90 days notice. LCEM provided professional liability insurance for Glascock, but no benefits or vacation pay. The agreement guaranteed Glascock 15 shifts per month at an hourly rate of $130. Glascock submitted her monthly availability and scheduling preferences to LCEM, and LCEM assigned shifts. She also remained free to engage in other professional activities. Glascock filed her own self-employment tax returns. The Agreement gave LCEM no control or direction over the method or manner by which Glascock performed her professional services and duties. As the attending physician at Mercy Medical Center, she selected a…arrow_forwardDennis and Donna Smith owned a 10-acre tract of land that they decided to sell. The couple entered into a listing agreement with Kelly McLaughlin, a licensed real estate broker. The agreement gave Kelly the exclusive right to sell the property for a period of 6 months. The Smiths agreed to pay Kelly a 6% commission of the selling price if a buyer was found during the listing period. Four months later, the Smiths sent Kelly a letter terminating the listing agreement. Kelly did not approve of the conditions. One month later, Kelly presented a full price offer to the Smiths; however, they ignored the offer and sold the property to another buyer. Kelly sued the Smiths for breach of the agency agreement. Which party wins the lawsuit? Did the Smiths act ethically in this case?arrow_forward
- • Effective April 21, 2014, Philip Luis F. Marin (Marin, for short) was appointed Reservations Officer of Cathay Pacific Aiways Ltd (Cathay) for a probationary period of six months. A letter dated March 23, 2014 was given to him specitying his appointment wherein he is to receive a monthly salary including holidays and rest days, with a promise of a salary review upon satisfactory completion of the probationary period. The letter also stated that Cathay reserved the right to terminate (Marin) services during the probationary period if performance proves to be unsatisfactory, in which case will receive the salary due at the time of the termination of his services. Mr. Marin accepted those terms of employment and that he would be reconfirmed asa member of regular staff upon completion of the probationary period. Mr. Marin was briefed and counseled by virtue of a Memorandum which was released by M.A. Canizares (Administrative Supervisor) dated October 15, 2013. It was noted that Mr. Marin…arrow_forward“A” and “B” entered into a verbal contract whereby “A” agreed to sell to “B” his only parcel of land for P20,000 and B agreed to buy at the aforementioned price. “B” went to the bank, withdrew the necessary amount, and returned to “A” for the consummation of the contract. “A,” however, had changed his mind and refused to go through with the sale. Is the agreement valid? Will an action by “B” against “A” for specific performance prosper? Reason.arrow_forwardWhich one of the following is a term that is implied by statute? Select one: a. A term required to make the contract between the parties effective b. A term that goods must be of merchantable quality c. Good faith d. A term implied on the basis of past dealings between the partiesarrow_forward
- An agent is NOT personally liable on a contract made with a third party when: 1) neither the existence, nor the name of the principal is known to the third party. 2) the name and existence of the principal are known to the third party. 3) the agent makes the contract with the third party in his/her personal capacity as a co-signor or obligor with the principal. 4) the existence, but not the name of the principal is known to the third party.arrow_forwardTogether We Stand is an organisation that owns land in Soweto. They accidentally accept an offer submitted by Bongani to purchase Erf 231 in Soweto when in fact, they had instead intended to accept the tender which was submitted by Vusi to purchase the erf directly next door, Erf 233. Bongani is unaware of the mistake made by Together We Stand.Together We Will stand cannot be held liable in terms of the contract with Bongani as the mistake was a material one. Write a legal opinion in which you critically analyse the correctness of the above underlined statement.arrow_forwardThe contract of sale is an onerous contract. a. True b. Falsearrow_forward
- Sheila owned an old roadside building that she believed could be easily converted into an antique shop. She talked to her friend Barbara, an antique fancier, and they executed the following written agreement: a. Sheila would supply the building, all utilities, and $100,000 capital for purchasing antiques. b. Barbara would supply $30,000 for purchasing antiques, Sheila would repay her when the business terminated. c. Barbara would manage the shop, make all purchases, and receive a salary of $500 per week plus 5 percent of the gross receipts. d. Fifty percent of the net profits would go into the purchase of new stock. The balance of the net profits would go to Sheila. e. The business would operate under the name “Roadside Antiques.” Business went poorly, and after one year, a debt of $40,000 is owed to Old Fashioned, Inc., the principal supplier of antiques purchased by Barbara in the name of Roadside Antiques. Old Fashioned sues Roadside Antiques, and Sheila and Barbara as partners.…arrow_forwardGary Olsen, known affectionately as “Gazza” or Gazzarooney” by his mates, is the Group Head for Corporate Finance in a boutique investment bank called “DA Bank Limited”. There is a term in Gazza’s employment contract, which he signed on 15 February 2020, providing as follows: Prohibition on client contact. In the event that your employment with DA Bank Limited ceases for whatever reason and howsoever caused, you explicitly agree and undertake not to contact clients of DA Bank through whatever means. This includes contact by phone, email, mail or any other common means of communication. This prohibition will last for 3 years upon the cessation of your employment with the bank. Gazza resigns from DA Bank on 1 March 2021. He is later recruited by his good mate Colin Taggart, who is the Chief Executive Officer of a merchant bank called “Tag Bank Limited”. Upon joining, Colin immediately appoints Gazza to the same position that he held with DA Bank. Gazza then starts calling some…arrow_forwardHow are duties discharged by a party under a contract?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Understanding BusinessManagementISBN:9781259929434Author:William NickelsPublisher:McGraw-Hill Education
Management (14th Edition)ManagementISBN:9780134527604Author:Stephen P. Robbins, Mary A. CoulterPublisher:PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract...ManagementISBN:9781305947412Author:Cliff RagsdalePublisher:Cengage Learning
Management Information Systems: Managing The Digi...ManagementISBN:9780135191798Author:Kenneth C. Laudon, Jane P. LaudonPublisher:PEARSON
Business Essentials (12th Edition) (What's New in...ManagementISBN:9780134728391Author:Ronald J. Ebert, Ricky W. GriffinPublisher:PEARSON
Fundamentals of Management (10th Edition)ManagementISBN:9780134237473Author:Stephen P. Robbins, Mary A. Coulter, David A. De CenzoPublisher:PEARSON
Understanding Business
Management
ISBN:9781259929434
Author:William Nickels
Publisher:McGraw-Hill Education
Management (14th Edition)
Management
ISBN:9780134527604
Author:Stephen P. Robbins, Mary A. Coulter
Publisher:PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract...
Management
ISBN:9781305947412
Author:Cliff Ragsdale
Publisher:Cengage Learning
Management Information Systems: Managing The Digi...
Management
ISBN:9780135191798
Author:Kenneth C. Laudon, Jane P. Laudon
Publisher:PEARSON
Business Essentials (12th Edition) (What's New in...
Management
ISBN:9780134728391
Author:Ronald J. Ebert, Ricky W. Griffin
Publisher:PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:9780134237473
Author:Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:PEARSON