Subject: Legal Environment Of Business - Recommended textbook for the subject: Cheeseman, H. R. Legal Environment of Business: Online Commerce, Ethics, and Global Issues. (CHAPTERS 9, 10 & 11) - A

Subject: Legal Environment Of Business

- Recommended textbook for the subject: Cheeseman, H. R. Legal Environment of Business: Online Commerce, Ethics, and Global Issues. (CHAPTERS 9, 10 & 11)

- Answer the following essay questions:

1. You have been asked to speak to your class about gifts to movie stars. Go to www.nytimes.com/2006/03/05/business/05goodie.html and read about gifts to movie stars. Then write an outline of a 10-minute talk on the subject.

2. Norma English made an offer to purchase a house owned by Michael and Laurie Montgomery (Montgomery) for $272,000. In her offer, English also proposed to purchase certain personal property—paving stones and a fireplace screen worth a total of $100—from Montgomery. When Montgomery received English’s offer, Montgomery made many changes to English’s offer, including deleting the paving stones and fireplace screen from the personal property that English wanted. When English received the Montgomery counteroffer, English accepted and initialed all of Montgomery’s changes except that English did not initial the change that deleted the paving stones and fireplace screen from the deal.

Subsequently, Montgomery notified English that because English had not completely accepted the terms of Montgomery’s counteroffer, Montgomery was therefore withdrawing from the deal. That same day, Montgomery signed a contract to sell the house to  another buyer for $285,000. English sued Montgomery for specific performance of the contract. Montgomery  defended, arguing that the mirror image rule was not satisfied because English had not initialed the provision that deleted the paving stones and fireplace screen. 

Is there an enforceable contract between English and Montgomery? Explain your answer.

3. Wells Fargo Credit Corporation (Wells Fargo) obtained a judgment of foreclosure on a house owned by Mr. and Mrs. Clevenger. The total indebtedness stated in the judgment was $207,141. The foreclosure sale was scheduled for 11:00 A.M. on a specified day at the west front door of the Hillsborough County Courthouse. Wells Fargo was represented by a paralegal, who had attended more than 1,000 similar sales. Wells Fargo’s handwritten instruction sheet informed the paralegal to make one bid at $115,000, the tax-appraised value of the property. Because the first  “1” in the number was close to the “$,” the paralegal misread the bid instruction as $15,000 and opened the bidding at that amount.

Harley Martin, who was attending his first judicial sale, bid $20,000. The county clerk gave ample time for another bid and then announced, “$20,000 going once, $20,000 going twice, sold to Harley… .” The paralegal screamed, “Stop, I’m sorry. I made a mistake!” The certificate of sale was issued to Martin. Wells Fargo filed suit to set aside the judicial sale based on its unilateral mistake. 

Does Wells Fargo’s unilateral mistake constitute grounds for setting aside the judicial sale? Explain your answer.

4. David Abacus uses the Internet to place an order to license software for his computer from Inet License, Inc. (Inet), through Inet’s electronic website ordering system. Inet’s Web page order form asks David to type in his name, mailing address, telephone number, e-mail address, credit card information, computer location information, and personal identification number. Inet’s electronic agent requests that David verify the information a second time before it accepts the order, which David does. The license duration is two years, at a license fee of $300 per month. Only after receiving the verification of information does Inet’s electronic agent place the order and send an electronic copy of the software program to David’s computer, where he installs the new software program.

David later refuses to pay the license fee due Inet because he claims his electronic signature and information were not authentic. Inet sues David to recover the license fee.

Is David’s electronic signature enforceable against him? Explain your answer.

5. Discuss the performance of traditional contracts and e-contracts. How are they similar/different?