4. Bob paints cars in his commercial paint booth in his auto paint business, Bob’s custom Auto Paints, but he does not have a current business license or approval from the Regional Air Quality Control District. Jim the owner of a custom car detailer next door asks “Bob, Can you paint my 1965 Mustang this week? I want to give it to my son for his college graduation next Wednesday. I’ll be out of town until next Tuesday, how does $1500 sound?” Bob says to Jim,” I guess that would be OK but I have to check some other stuff. Just leave it in the driveway I suppose.” Jim parks the car in Bob’s driveway with a check for $1500 on the driver’s seat and leaves town for the rest of the week. The two business owners do not speak again until Jim returns on Tuesday afternoon to find the Mustang sitting in Bob’s driveway unpainted and the check not cashed. Jim is very angry and is threatening to file a lawsuit to force Bob to immediately paint the car and recover as much damages as possible, including punitive damages. Since you work in the legal claims department, Bob is requesting you prepare a report for his review on the following questions:
(A) Does the UCC apply? Explain why in detail.
(B) Is there a valid and enforceable contract? Explain why.
(C) Do all of the required elements exist? Explain why.
(D) What possible defenses to the formation of a contract might Bob have?
(E) If a valid and enforceable contract is found, what remedies including damages might be available to Jim?
Submit your report to Bob, answering and explaining each question.
A contract is an agreement enforceable by law.
For a valid and enforceable contract, the first requirement is the formation of an agreement.
For the formation of an agreement, a proposal or offer needs unqualified and unconditional acceptance by the offeree. Also, the acceptance should be communicated to the offeror.
In the instant case, first, there was no unconditional acceptance, as Bob had said that he would need to check some stuff before taking on the work. He did not say a clear Yes. But after checking the stuff, he did not get back to Jim as to whether he is going to go ahead with the execution of the job or not for the promised consideration. Jim for his part is entitled to assume that since Bob has not communicated a rejection of the offer, there was an implied acceptance of the offer, specially since Bob was aware of the purpose of the order, and the timeline.
Bob should have called Jim to communicate that his offer was not acceptable, and should have made a counter offer. If the counter offer was accepted by Jim, an agreement would have come into being.
4. Bob paints cars in his commercial paint booth in his auto paint business, Bob’s custom...
4. Bob paints cars in his commercial paint booth in his auto paint business, Bob’s custom Auto Paints, but he does not have a current business license or approval from the Regional Air Quality Control District. Jim the owner of a custom car detailer next door asks “Bob, Can you paint my 1965 Mustang this week? I want to give it to my son for his college graduation next Wednesday. I’ll be out of town until next Tuesday, how does...
QUESTION 1 In a bailment for the sole benefit of the bailee, the bailor does not need to notify the bailee of hidden defects in the bailed property that the bailor knows of. True False 2 points QUESTION 2 Greenway Freight is transporting a load of furniture for Levitz from Chicago to Portland. Greenway’s truck is damaged by a tornado. Much of the furniture is damaged as a result. Will Greenway be held liable to Levitz for damages? a....
Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...