Business Law

Business

Quiz 19 :

Remedies

Quiz 19 :

Remedies

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Walgreens operated a pharmacy in the Sara Creek mall. As part of this long-term lease, Sara Creek agreed not to lease mall space to another pharmacy. During an economic recession, Sara Creek's largest tenant left and the landlord informed Walgreens that it intended to rent that space out to a "deep discount" store that would contain a pharmacy. It was the only way to remain profitable, according to Sara Creek. Walgreens sued for an injunction against Sara Creek until its contract expired in 10 years. Should a court hold Sara Creek to its contract, even if this decision means bankrupting it?
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In the mentioned case, Company SC is defendant and Company WG id plaintiff. The plaintiff appeals in the court for judgement, under a permanent injunction against defendant.
Plaintiff had a thirty-year lease with Defendant proprietor was terminated The lease contained an exclusive provision to keep Defendant from renting any part of the shopping center containing Plaintiff's store to another drug store. The defendant bought tenant and to make a store with a pharmacy. Plaintiff sued for the breach of contract, the district court given a perma nent injunction to prevent Defendant pharmacy in the mall, according to the lease agreement. Defendant contends that Plaintiff did not provide remedy damages were insufficient.
The Court of Appeals for the Seventh Circuit held that they would not re-balance the elements to figure out which cure was more attractive. The region court made a sensible assurance that a harms solution for the rest of the lease would be profoundly theoretical and exorbitant to decide, and if the expenses to Plaintiff were higher than Defendant's expenses as the consequence of the order, then the business sector would normally resolve the issue.
Thus, the court should hold Company SC to its contract , even the decision means bankruptcy. The re-drafting court would not re-evaluate a last judgment to figure out whether they would reach the same conclusion. The re-appraising court will just figure out whether the trial court surpassed their limits in their choice.

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Consequential damages can be many times higher than direct damages. Consider the "Farmer Ted" scenario raised in the multiple-choice section of this review, which is based on a real case.7 Is it fair for consequential damages to be 60 times higher than direct damages? The Supreme Court is skeptical that punitive damages should be more than 9 times compensatory damages in a tort case. Should a similar "soft limit" apply to consequential damages in contract cases?
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Consequential damages are explained below:
Consequential damages are termed as a compensation for the harm that results from particular circumstances of the plaintiff.
Decision regarding the case issue is explained below:
In this case, consequential damages are higher than the direct damage because, compensation for the harm that results from particular circumstances is higher. So, it is fair that consequential damages are more valuable than the other damages.
Punitive damages are occasionally awarded in the lawsuits that involve both contract and an intentional tort. Soft limits are enforced for a session or process which can be applied to consequential damages in the contract cases.

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Ethics The National Football League (NFL) owns the copyright to the broadcasts of its games. It licenses local television stations to telecast certain games and maintains a "blackout rule," which prohibits stations from broadcasting home games that are not sold out 72 hours before the game starts. Certain home games of the Cleveland Browns team were not sold out, and the NFL blocked local broadcast. But several bars in the Cleveland area were able to pick up the game's signal by using special antennas. The NFL wanted the bars to stop showing the games. What did it do? Was it unethical of the bars to broadcast the games that they were able to pick up? Apart from the NFL's legal rights, do you think it had the moral right to stop the bars from broadcasting the games?
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Decision regarding the case issue is explained below:
In this case, NF can sue and can obtain an injunction for the violation of NF's copyrights in the broadcast. Here, the injunction prohibits the bars from showing any blacked out games without the written permission. So, it was unethical for the bars to show the game.
NF has all the rights to stop the bars from broadcasting the games because, it createdits own copyrights to broadcast the game. NF was the license of the local television stations to telecast certain games and maintain specific rules.

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Julie signs a contract to buy Nick's 2012 Mustang GT for $20,000. Later, Nick changes his mind and refuses to sell his car. Julie soon buys a similar 2012 Mustang GT for $21,500. She then sues Nick and wins $1,500. The $1,500 represents her _______. (a) expectation interest (b) reliance interest (c) restitution interest (d) none of the above
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A manufacturer delivers a new tractor to Farmer Ted on the first day of the harvest season-but the tractor will not start. It takes two weeks for the right parts to be delivered and installed. The repair bill comes to $1,000. During the two weeks, some acres of Farmer Ted's crops die. He argues in court that his lost profit on those acres is $60,000. If a jury awards $1,000 for tractor repairs, it will be in the form of_________ damages. If it awards $60,000 for the lost crops, it will be in the form of __________damages. (a) direct; direct (b) direct; consequential (c) consequential; direct (d) consequential; consequential (e) direct; incidental
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Under the Uniform Commercial Code, a seller _______ generally entitled to recover consequential damages, and a buyer _______ generally entitled to recover consequential damages. (a) is; is (b) is; is not (c) is not; is (d) is not; is not
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YOU BE THE JUDGE WRITING PROBLEM John and Susan Verba sold a Vermont lakeshore lot to Shane and Deborah Rancourt for $115,000. The Rancourts intended to build a house on the property, but after preparing the land for construction, they learned that a wetland protection law prevented building near the lake. They sued, seeking rescission of the contract. The trial court concluded that the parties had reached their agreement under a "mutual, but innocent, misunderstanding." The trial judge gave the Verbas a choice: they could rescind the contract and refund the purchase price, or they could give the Rancourts $55,000, the difference between the sales price and the actual market value of the land. The Rancourts appealed. Were the Rancourts entitled to rescission of the contract? Argument for the Rancourts: When the parties have made a mutual mistake about an important factual issue, either party is entitled to rescind the contract. The land is of no use to us and we want our money back. Argument for the Verbas: Both sides were acting in good faith and both sides made an honest mistake. We are willing to acknowledge that the land is worth somewhat less than we all thought, and we are willing to refund $55,000. The buyers shouldn't complain-they are getting the property at about half the original price, and the error was as much their fault as ours.
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Racicky was in the process of buying 320 acres of ranchland. While that sale was being negotiated, Racicky signed a contract to sell the land to Simon. Simon paid $144,000, the full price of the land. But Racicky went bankrupt before he could complete the purchase of the land, let alone its sale. Which of these remedies should Simon seek: expectation, restitution, specific performance, or reformation?
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Is it reasonable to require the mitigation of damages? If a person is wronged because the other side breached a contract, should she have any obligations at all? For example, suppose that a tenant breaches a lease by leaving early. Should the landlord have an obligation to try to find another tenant before the end of the lease?
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CPA QUESTION Master Mfg., Inc. contracted with Accur Computer Repair Corp. to maintain Master's computer system. Master's manufacturing process depends on its computer system operating properly at all times. A liquidated damages clause in the contract provided that Accur would pay $1,000 to Master for each day that Accur was late responding to a service request. On January 12, Accur was notified that Master's computer system had failed. Accur did not respond to Master's service request until January 15. If Master sues Accur under the liquidated damage provision of the contract, Master will: (a) Win, unless the liquidated damages provision is determined to be a penalty (b) Win, because under all circumstances liquidated damage provisions are enforceable (c) Lose, because Accur's breach was not material (d) Lose, because liquidated damage provisions violate public policy
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CPA QUESTION Kaye contracted to sell Hodges a building for $310,000. The contract required Hodges to pay the entire amount at closing. Kaye refused to close the sale of the building. Hodges sued Kaye. To what relief is Hodges entitled? (a) Punitive damages and direct damages (b) Specific performance and direct damages (c) Consequential damages or punitive damages (d) Direct damages or specific performance
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Parkinson was injured in an auto accident by a driver who had no insurance. Parkinson filed a claim with her insurer, Liberty Mutual, for $2,000 under her "uninsured motorist" coverage. Liberty Mutual told her that if she sought that money, her premiums would go "sky high," so Parkinson dropped the claim. Later, after she had spoken with an attorney, Parkinson sued. What additional claim was her attorney likely to make?
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PepsiCo entered into a contract to sell its corporate jet to Klein for $4.6 million. Before the deal closed, the plane was sent to pick up PepsiCo's chairman of the board, who was stranded at Dulles airport. The chairman then decided that the company should not part with the plane. Klein sued PepsiCo for specific performance, arguing that he could not find a similar jet on the market for that price. Should a court force PepsiCo to sell its plane?
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Twin Creeks Entertainment signed a deal with U.S. JVC Corp. in which JVC would buy 60,000 feature-film videocassettes from Twin Creeks over a three-year period. JVC intended to distribute the cassettes nationwide. Relying on its deal with JVC, Twin Creeks signed an agreement with Paramount Pictures, agreeing to purchase a minimum of $600,000 worth of Paramount cassettes over a two-year period. JVC breached its deal with Twin Creeks and refused to accept the cassettes it had agreed upon. Twin Creeks sued and claimed, among other damages, the money it owed to Paramount. JVC moved to dismiss the claim based on the Paramount contract, on the ground that Twin Creeks, the seller of goods, was not entitled to such damages. What kind of damages is Twin Creeks seeking? Please rule on the motion to dismiss.
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Lewis signed a contract for the rights to all timber located on Nine-Mile Mine. He agreed to pay $70 per thousand board feet ($70/mbf). As he began work, Nine- Mile became convinced that Lewis lacked sufficient equipment to do the job well and forbade him to enter the land. Lewis sued. Nine-Mile moved for summary judgment. The mine offered proof that the market value of the timber was exactly $70/mbf, and Lewis had no evidence to contradict Nine-Mile. The evidence about market value proved decisive. Why? Please rule on the summary judgment motion.
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