Question

LAW QUESTION:

Question 4: You are selling illegal fireworks at a roadside stand, the good kind. The kind that will 100% certainly blow somebody's fingers off. In the distance, but coming closer, you see a man wearing armor and clopping together coconuts - he's allergic to horses. We will call this man, the Knight. The Knight says: "I will buy your fireworks, but see I have these chainmail gloves, so I can't blow my fingers off with them. Because this is a lower risk to me, the risk to you is also lower! No bad press, no lawsuits from me. So, I would like to buy all your fireworks for 50% off, but I can't come back, it has to be now." The trouble here is that you have heard the Insane Clown Posse (the ICP) will be passing through in 5 hours. Their juggalos are known for buying huge amounts of fireworks, the more dangerous, the better. They will often pay up to 200% of the price for finger-busters - which is the kind you have! You know that there is a risk of a lawsuit, and bad press, but 200%, if true, would let you retire from the fireworks business for good and make your mama proud. Of course, if the FBI comes around they will shut your little roadside stand down, and confiscate all of your illegal fireworks. Assume everyone in this fact pattern is a reasonable person who is willing to negotiate. 4A. Identify for me where you think the risks are (ex. there is a risk that the Knight buys my fireworks and I miss out on a huge sale to the ICP, or, there is a risk if I wait for the ICP to come along, the FBI shows up first and I lose everything). 4B. Then try to figure out a deal with the Knight that deals with these risks as best you can.

Answer 1

Answer. 4 A) There is a risk if you wait for ICP - Because had been heard that jaggalos are known for buying huge amount of fire works, but there is a risk of lawsuit and also there is no surety that they will buy your fire works so if you want to make it the deal safer it is advisable to not wait for ICP which will also eliminate the risk of FBI proceedings.

Since Knight is ready to buy your fireworks on the spot it is a good deal to liquidate your stock of illegal fire works because he is stating that there would not be any legal suit by him and in addition he is wearing chainmail gloves which reduces the risk of bursting fingers to the great extent, but in addition it is advisable to get into the negotiation to reduce his demand of 50% discount to the lesser.

Answer 4 B) To create a win-win situation you can negotiate with the knight that if he will wait up to the arrival of  ICP or FBI whichever is earlier then there will be the better deal for both the parties.

Situation-1- If Knight is not ready to wait - than it is advisable to go for selling the fireworks to knight at lesser discount (lass than 50%) which can give profit to you after deducting cost.

Situation-2 If knight agrees to wait, and FBI comes first - Than if during that waiting period you can tell knight that if he can provide surveillance for FBI and found someone suspicious as FBI agent then he can tell you and get all the fireworks at 60% discount.  

Situation-3 If knight agrees to wait, and ICP comes first - Then you can sale 75% of the fireworks to jaggalos at 200% of price and promise knight that he will give the remaining fireworks to knight at free of cost. Even if you are giving 25% of fire works to knight at free of cost you are still earning the profit.