Smith and Roberson’s Business Law
17th Edition
ISBN: 9781337094757
Author: Richard A. Mann, Barry S. Roberts
Publisher: Cengage Learning
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Chapter 14, Problem 1TS
Summary Introduction
Case summary:
Person D, age sixteen purchased a used truck from the company S auto sales in cash owned by person S. Person S did not question person D’s age as he assumed person D to be a major. Nine months later, the car started showing problems and eventually engine blew up. Person D requested to annul the contract and give him a full refund.
To discuss: The arguments that supports the person D’s termination of contract.
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Chapter 14 Solutions
Smith and Roberson’s Business Law
Ch. 14 - Prob. 1COCh. 14 - Prob. 2COCh. 14 - Prob. 3COCh. 14 - Prob. 4COCh. 14 - Prob. 5COCh. 14 - Prob. 1QCh. 14 - Prob. 2QCh. 14 - Prob. 3QCh. 14 - Prob. 4QCh. 14 - Prob. 5Q
Ch. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - Prob. 8QCh. 14 - Prob. 9QCh. 14 - Prob. 10CPCh. 14 - Prob. 11CPCh. 14 - Prob. 12CPCh. 14 - Prob. 13CPCh. 14 - Prob. 14CPCh. 14 - Prob. 15CPCh. 14 - Prob. 16CPCh. 14 - Prob. 17CPCh. 14 - Prob. 18CPCh. 14 - Prob. 19CPCh. 14 - Prob. 20CPCh. 14 - Prob. 21CPCh. 14 - Prob. 22CPCh. 14 - Prob. 1TSCh. 14 - Prob. 2TSCh. 14 - Prob. 3TS
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- May a moral obligation constitute a sufficient cause to support an onerous contract?arrow_forwardOn Chapter 12, Recognizing Employee Contributions with Pay; define Principal and define Agent. Also, what is the difference between outcome-oriented and behavior oriented contracts?arrow_forwardWhat are third party beneficiary contracts and what are the rights of the parties?arrow_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_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_forwardif David agrees in consideration of $1,000 to mow his elderly neighbor’s lawn “for as long as she lives next door to him,” does the contract have to be in writing? why or why not? what is the rule regarding the ability of a person who is not a party to a contract to enforce a contract?arrow_forward
- How are duties discharged by a party under a contract?arrow_forwardWhy would a business support allowing a transfer of rights or duties to third parties?.arrow_forwardWhy is past consideration no consideration at all? The adequacy of past consideration is difficult to determine. Past consideration is considered to be illusory. Past consideration may involve parties who are not involved in the current contract. Past consideration was provided before the current contract was made, and the current contract requires a benefit that has not yet been conferred.arrow_forward
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