The Legal Environment of Business: Text and Cases (MindTap Course List)
The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
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Chapter 14, Problem 1IS
Summary Introduction

Case summary: Firm E orders firm F to supply 150 desks for PCs. However, F delivered 150 printer stands in place of desks.

To find: The delivery of desks as acceptance or a counteroffer.

Summary Introduction

Case summary: Firm E orders Firm F to supply 150 desks for PCs. However, F delivered 150 printer stands in place of desks.

To find: The outcome of the case if F had notified E about desk as accommodation.

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A&P Grocery Stores decided to sell its own brand of canned milk (referred to as private label milk). A&P asked its longtime supplier, Borden, to submit an offer to produce the private label milk. Bowman Dairy also submitted a bid, which was lower than Borden’s. A&P’s Chicago buyer then contacted Borden and said, “I have a bid in my pocket. You people are so far out of line it is not even funny. You are not even in the ballpark.” The Borden representative asked for more details but was told only that a $50,000 improvement in Borden’s bid “would not be a drop in the bucket.” A&P was one of Borden’s largest customers in the Chicago area. Furthermore, Borden had just invested more than $5 million in a new dairy facility in Illinois. The loss of the A&P account would result in underutilization of the plant. Borden lowered its bid by more than $400,000. The Federal Trade Commission charged Borden with price discrimination, but Borden maintained it was simply meeting the…
Advanced) In some countries, there are restrictions on the length of a contract to rent an apartment. Suppose the restriction is that contracts must last for five years. In response, some people sign private agreements to rent for shorter durations, such as a year. What are the problems that might arise from signing these private agreements? What happens if there is a dispute? What role might reputations play in the enforcement of these private agreements?  
Mr. Henok claims he has been unfairly dismissed by his employers. He consults a law firm owned by Mrs. Justice, who agrees to take up Henok’s case. The law consulting firm, owned by Ms Justice advises him that if Henok wins his case he can expect a compensation of 30,000 birr but if he loses he will receive nothing. The law consultant firm estimates her fee to be 5,000 birr. As an alternative the consultant offer him a ‘no win, no fee’ deal under which he pays no fee but if he wins his case, the consulting firm will take half of the compensation he receives. Henok also asked to pay his employer’s cost which is 1000 birr in both deals. He can decide against bringing the case, which will incur no cost and result in no compensation. Based on the information given above: a. Develop a payoff table to Henok’s case b. Advise Henok what to do: i. Using the maximax decision ruleii. Using the maximin decision rule.iii. Using the Minmax regret decision rule
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