The Legal Environment of Business: Text and Cases
10th Edition
ISBN: 9781337535878
Author: Frank B. Cross; Roger LeRoy Miller
Publisher: Cengage Learning US
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 5BCP
Summary Introduction
Case Summary: The Company S sold two containers of latex gloves to the company M, located in North Carolina. The company M failed to make the payment of $104,000 and was thus sued by the company S in the Illinois court. The judgment came against the company M. Then, an argument was put forth by the company M that it does not have minimum contact with the state of Illinois because North Carolina is its principal place of business and it is incorporated under its law. So, the judgment of the Illinois on the basis of personal jurisdiction is invalid.
To Explain: The argument of the company M was sufficient to prevent the judgment of Illinois.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
B. Hawkeye Bank & Trust and affiliated banks agreed to refer bank customers to Financial Marketing Services, Inc. (FMS) for the purchase of life insurance. Hawkeye and FMS shared the commissions. Hawkeye employees and some independent agents licensed through FMS made the actual sales; however, all insurance business was FMS’ property. Because of concern about the confidentiality of bank customer information, Hawkeye decided to terminate its contract with FMS and sell insurance directly to its customers. The independent agents claimed Hawkeye terminating the contract with FMS constituted intentional interference with the agents’ contracts and prospective relations. Was it? Explain your position.
Before the purchase transaction, Shell had made know to Carbonic Co the purpose and intended use of electrodes. In short, Shell company put their trust and reliance on the skill and expertise of Carbonic Co. So, Shell ordered 60,000 kilograms of welding electrodes from Carbonic Co. for use in a project involving the fabrication of a cross-country gas transmission line. It turned out the electrodes are incapable of producing satisfactory weld in a vertical position. Shell sued Carbonic Co for violation under the Sale of Goods Act.
Does Shell action prosper? Please state your reasons.
Mr. Oliver entered into contract with his friend Mr. Green to transport some material in two weeks’ time. About a month before the delivery was to be made, the material was banned by the legislature, and so delivery was not possible. Mr. Green could have been arrested by the police if he was caught delivering the goods, but he delivered it anyway. Mr. Oliver refuses to pay.
i. What can you say about the contract Mr. Oliver and Mr. Green entered
into?
ii. Should Mr. Green have made the delivery? why or why not?
iii. Can Mr. Green enforce payment? why or why not.
iv. What was the impact of the legislative action on the contract?
Chapter 2 Solutions
The Legal Environment of Business: Text and Cases
Knowledge Booster
Similar questions
- 1. Basic Research LLC advertised its products on television networks owned by Rainbow Media Holdings Inc through an ad agency Icebox Advertising Inc. As Basic’s agent Icebox had express authority to buy ads from Rainbow on Basics behalf, but the authority was limited to buying ad with cash in advance. Despite this limit Rainbow sold ads to Basic through Icebox on credit. Basic paid Icebox for the ads, but Icebox did not pass all of the payments on to Rainbow. Icebox filed for bankruptcy. Can Rainbow recoup the unpaid amounts from Basic? Explain.2. Western Fire truck Inc contracted with Emergency One Inc (EO) to be its exclusive dealer in Wyoming and Colorado through Dec. 2003. James Costello, a Western Salesperson, was authorized to order EO vehicles for hi customers. Without informing Western, Costello emailed EO about Westerns diffuclties obtaining cash to fund its operations. He asked about the viability of Westerns contract and his possible employment with EO. On EO’s…arrow_forwardHelvey brought suit against the Wabash County REMC (REMC) for breach of implied and express warranties. He alleged that REMC furnished electricity in excess of 135 volts to Helvey’s home, damaging his 110-volt household appliances. This incident occurred more than four years before Helvey brought this suit. In defense, REMC pleads that the Uniform Commercial Code’s (UCC’s) Article 2 statute of limitations of four years has passed, thereby barring Helvey’s suit. Helvey argues that providing electrical energy is not a transaction in goods under the UCC but rather a furnishing of services that would make applicable the general contract six-year statute of limitations. Is the contract governed by the UCC? Why or why not?arrow_forwardRensselaer Water Company contracted with the city of Rensselaer to provide water to the city for use in homes, public buildings, industry, and fire hydrants. During the term of the contract, a building caught fire. The fire spread to a nearby warehouse and destroyed it and its contents. The water company knew of the fire but failed to supply adequate water pressure at the fire hydrant to extinguish the fire. The warehouse owner sued the water company for failure to fulfill its contract with the city. Can the warehouse owner enforce the contract? Explain.arrow_forward
- Moore ran a bakery in Santa Rosa, New Mexico. His business was wholly intrastate. Meads Fine Bread Co., his competitor, engaged in an interstate business. Meads cut the price of bread in half in Santa Rosa but made no price cut in any other place in New Mexico or in any other state. This price-cutting drove Moore out of business. Moore then sued Meads for damages for violating the Clayton and Robinson-Patman Acts. Meads claimed that the price-cutting was purely intrastate and, therefore, did not constitute a violation of federal statutes. Was Meads correct? Why or why not?arrow_forwardRegency transportation, Inc., operates a freight business throughout the eastern United States. Regency maintains its corporate headquarters and other facilities in Massachusetts. The vehicles in Regency's fleet were bought in other states. Massachusetts imposes various taxes on all taxpayers subject to its jurisdiction, including those that, like Regency, do business in interstate commerce. When Massachusetts imposed a tax on purchase price of each vehicle in Regency's fleet, the trucking firm challenged the assessment as discriminatory under the commerce clause. What is the chief consideration under the commerce clause when a state law affects interstate commerce? Is Massachusetts's tax valid? Explain.arrow_forwardAmanda and Emilia are co-directors and members of Griffin Pty Ltd, which imports widgets from Vietnam and sells them in various hardware stores in regional NSW. Griffin has a medium-sized warehouse where it stocks goods, and from which it distributes products. Griffin recently signed a contract to supply a large hardware store in Orange and Dubbo with widgets. So the company ordered 10 pallets of widgets from its Vietnamese supplier and also paid a substantial deposit. A shipping company who carries goods into Australia has already brought the pallets into the country and has sent their bill to Griffin. After a couple of deliveries to the hardware store, a safety issue is discovered with the widgets and the government bans the sale of the widgets. the hardware store cancels all further orders of the widgets. Now, Griffin has no future revenue and its remaining stock of widgets cannot be sold. The shipping company is demanding payment of its invoice; there are also several…arrow_forward
- Case 5 P Corp, a retailer of women’s fashion accessories, contracted Sandra as their purchasing agent. The agency contract expressly stipulates that Sandra is not allowed to enter into contract in excess of $50,000.00 without first obtaining approval from P Corp. On a number of occasions, Sandra negotiated the purchase of quantities of costume jewellery from Z Inc for prices varying between $30,000 to $45,000.00. Recently, Sandra placed an order with Z Inc for goods at a price of $60,000.00 and without consulting P Corp. Z Inc did not question the order. Two weeks after, Z Inc received payment from P Corp. Sandra was reprimanded by P Corp and, again, reminded of her $50,000.00 limit. Despite the warning, Sandra placed another order of $55,000.00 from Z Inc. This time P Corp refuse to pay and demanded Z Inc to take back the goods. Issues: Is Sandra acting on actual or apparent authority? Is the principal bound by the action of the agent, Sandra? Please state your reasonsarrow_forwardDavid M. Fox was a distributor of tools manufactured and sold by Matco Tools Corporation (Matco). Cox purchased tools from Matco, using a credit line that he repaid as the tools were sold. The credit line was secured by Cox’s Matco tool inventory. In order to expedite payment on Cox’s line of credit, Matco decided to authorize Cox to deposit any customer checks that were made payable to “Matco Tools” or “Matco” into Cox’s own account. Matco’s controller sent Cox’s bank, Pontiac State Bank (Pontiac), a letter stating that Cox was authorized to make such deposits. Several years later, some Matco tools were stolen from Cox’s inventory. The Travelers Indemnity Company (Travelers), which insured Cox against such a loss, sent Cox a settlement check in the amount of $24,960. The check was made payable to “David M. Cox and Matco Tool Co.” Cox indorsed the check and deposited it in his account at Pontiac. Pon-tiac forwarded the check through the banking system for payment by the drawee bank.…arrow_forwardDorton, as a representative for The Carpet Mart, purchased carpets from Collins & Aikman that were supposedly manufactured of 100 percent Kodel polyester fiber but were, in fact, made of cheaper and inferior fibers. Dorton then brought suit for compensatory and punitive damages against Collins & Aikman for its fraud, deceit, and misrepresentation in the sale of the carpets. Collins & Aikman moved for a stay pending arbitration, claiming that Dorton was bound to an arbitration agreement printed on the reverse side of Collins & Aikman’s printed sales acknowledgment form. A provision printed on the face of the acknowledgment form stated that its acceptance was “subject to all of the terms and conditions on the face and reverse side thereof, including arbitration, all of which are accepted by buyer.” Is the arbitration clause enforceable? Why or why not?arrow_forward
- The ABC Company, located in Chicago, contracted to sell a carload of television sets to Dodd in St. Louis, Missouri, on sixty days’ credit. ABC Company shipped the carload to Dodd. Upon arrival of the car at St. Louis, Dodd paid the freight charges and reshipped the car to Hines of Little Rock, Arkansas, to whom he had previously contracted to sell the television sets. While the car was in transit to Little Rock, Dodd went bankrupt. ABC Company was informed of this at once and immediately telephoned XYZ Railroad Company to withhold delivery of the television sets. What should the XYZ Railroad Company do?arrow_forwardJohnson, who owned a hardware store, was indebted to Hutchinson, one of her suppliers. Johnson sold her business to Lockhart, one of Johnson’s previous competitors, who combined the inventory from Johnson’s store with his own and moved them to a new, larger store. Hutchinson claims that Lockhart must pay Johnson’s debt because the sale of the business had been made without complying with the requirements of the bulk sales law. Discuss whether Lockhart is obligated to pay Hutchison’s debt to Johnson.arrow_forwardWhat statutory protection is offered to a third party who enters into a contract with a person purporting to act on behalf of a company which is not yet formed?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
BUSN 11 Introduction to Business Student EditionBusinessISBN:9781337407137Author:KellyPublisher:Cengage Learning
Essentials of Business Communication (MindTap Cou...BusinessISBN:9781337386494Author:Mary Ellen Guffey, Dana LoewyPublisher:Cengage Learning
Accounting Information Systems (14th Edition)BusinessISBN:9780134474021Author:Marshall B. Romney, Paul J. SteinbartPublisher:PEARSON
International Business: Competing in the Global M...BusinessISBN:9781259929441Author:Charles W. L. Hill Dr, G. Tomas M. HultPublisher:McGraw-Hill Education
BUSN 11 Introduction to Business Student Edition
Business
ISBN:9781337407137
Author:Kelly
Publisher:Cengage Learning
Essentials of Business Communication (MindTap Cou...
Business
ISBN:9781337386494
Author:Mary Ellen Guffey, Dana Loewy
Publisher:Cengage Learning
Accounting Information Systems (14th Edition)
Business
ISBN:9780134474021
Author:Marshall B. Romney, Paul J. Steinbart
Publisher:PEARSON
International Business: Competing in the Global M...
Business
ISBN:9781259929441
Author:Charles W. L. Hill Dr, G. Tomas M. Hult
Publisher:McGraw-Hill Education