MINDTAP BUSINESS LAW FOR MANN/ROBERTS S
17th Edition
ISBN: 9781337094498
Author: Roberts
Publisher: IACCENGAGE
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Chapter 3, Problem 13CP
Summary Introduction
Case summary:
Persons L and S worked for company N and signed non competition agreements that contained arbitration clause in case of any dispute. The plaintiffs quit the company N and started working for the competitor. They filed a case in district court of J County and subsequently to O Supreme Court. O Supreme Court held that the court has jurisdiction to review arbitration clause of non competition agreements and further declared that non competition agreements are void.
To discuss: If Supreme Court O erred in preventing the arbitration of the non competition agreement.
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State whether the following agreements or contracts are void, voidable valid, and provide a reason for your answer.
1 ) Taylor, aged 17, gets married, and divorces two months later. After getting divorced, she enters into a contract with Michael for the sale of his house. (
2 ) Jessica, aged 5, enters into a contract with John, aged 11, for the sale of his bicycle.
3 ) Nomsa, aged 16, runs a successful boutique with the consent of her parents, and enters into a contract relating to her business.
4 ) Amy, who is 17, has inherited an apartment in Cape Town from her deceased father. The apartment is valued at R2 million. With her mother’s assistance, Amy enters into an agreement to sell the apartment to her aunt.
5 ) Justin, who is mentally ill, concludes a contract for the sale of his laptop without his curator knowing. (2)
If one party to a contract uses any form of unfair coercion to induce another party to enter into or modify a
contract, the coerced party may avoid the contract on the basis of fraud.
True
O False
Deborah McCullough bought a new car from Bill Swad Chrysler, Inc. The car was protected by both a limited warranty and an extended warranty. McCullough immediately encountered problems with the automobile’s brakes, transmission, and air conditioning and discovered a number of cosmetic defects as well. She returned the car to Swad for repairs, but Swad did not fix the brakes properly or perform any of the cosmetic work. Moreover, new problems appeared with respect to the car’s steering mechanism. McCullough returned the car twice more for repairs, but on each occasion, old problems persisted and new ones emerged. After the engine abruptly shut off on a short trip away from home and the brakes again failed on a more extensive excursion, McCullough presented Swad with a list of thirty-two of the car’s defects and demanded their correction. When Swad failed to remedy more than a few of the problems, McCullough wrote a letter to Swad calling for rescission of the purchase agreement and a…
Chapter 3 Solutions
MINDTAP BUSINESS LAW FOR MANN/ROBERTS S
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