1.) On August 18, 1979, the Orchard Co., Inc. of Lofton, Tennessee, entered into a written agreement with L.H. Everest, Inc. of Burgton, Tennessee, under the terms of which the Orchard Co. agreed to supply “50,000 citrus fruit trees to be selected as to variety, on or before October 1, 1979, by the buyer, said trees to caliper at time of delivery 5/8 inches or larger and said trees to be from seedlings now growing in seller’s nursery.” The price was to be $1.70 per tree, delivery to be between December 1, 1980 and April 1, 1981. On September 15, 1979, L.H. Everest, Inc. ordered the following citrus trees: 2,000 Pineapple oranges, 5,000 Marsh Pink oranges, 1,000 Washington Navels and 33,000 Marsh Seedless oranges. All of these were in seedling form at the seller’s nursery. The Orchard Co. refused to perform the agreement, upon the ground that it was indefinite as to the subject matter, since the particular kinds of trees and the amount of each kind were not specified in the agreement. Is the contention of the Orchard Company sound? Explain.
2.) Blackwell faxed Singer “I will take 400 bushels of tomatoes at $8.00 each, F.O.B Camden.” Singer, believing that she had only 300 bushels, immediately wrote in reply, “will send you 300 bushels at the price named.” After mailing this letter, Singer discovered that she had enough tomatoes to fill Blackwell’s order for 400 bushels, and the next day sent a facsimile to Blackwell that she would ship 400 bushels according to Blackwell’s fax. The fax was received and read by Blackwell before the letter. After receipt of Singer’s letter, however, Blackwell bought from X, the price of tomatoes having fallen, and refused to accept Singer’s shipment. (a) What are Singer’s rights against Blackwell? (b) Would your answer remain the same if Blackwell had received Singer’s letter before he received Singer’s fax? Explain.
3.) Wilson Oil Co. offered to sell Vera a parcel of land in a distant state at a certain price. Vera said she would like to examine the property to see if it was as represented. The Wilson Oil Co. agreed to give Vera ten days to make the examination. Within the ten-day examination period and while Vera was examining the property, Wilson Oil Co. advised her that it would sell the land only for an advanced price, which was considerably higher than the first price mentioned. After making an examination at considerable expense, Vera decided to take the land on the terms first stated and notified Wilson Oil Co. within the ten-day period that she accepted those terms. The Wilson Oil Co. refused to convey the land. Vera sued Wilson Oil Co. for damages. Can she recover? Explain.
4.) On May 1, 2002, the Adobe Products Company wrote Peters offering to supply up to five million bricks at the rate of $428 per thousand, and expressly agreeing to keep the offer open until July 1. On June 1 the Adobe Products Company wrote Peters withdrawing their proposition, and Peters received this letter on June 2. On June 3 Peters wrote the Adobe Products Company stating that he accepted their proposition and renouncing their attempt to withdraw the offer, in as much as they had given Peters two months in which to accept. When called upon to deliver the bricks, Adobe Products Company refused to do so and Peters sued. (a) Decide and explain, assuming the case is not governed by statute. (b) Would your answer remain the same if the transaction is governed by the Uniform Commercial Code? Explain.
BLAW 201 Week 3 DQ
Week 3: Question 1
The television network CNBC and other television networks have been working to develop policies for their business correspondents and guests on their business shows because of conduct known as pump-and-dump, the practice of a Wall Street professional or network correspondent appearing on television to tout a particular stock as being a good buy. Often, unbeknown to the viewing audience, the guest or correspondent promoting the stock has a large holding in it and, after the television show runs and the stock price creeps up, sells his or her interest at a higher price than would have been possible before the show on which the person raved about the stock appeared. What category of ethical issues exists here? If you were a network executive, what would you do to remedy the problem? Should the government regulate such practices? (Post is due before 11 PM Thursday.)
Week 3: Question 2
A new trend is emerging in health insurance: premium increases based on claims. It is common practice in the auto insurance industry, for example, for insurers to revisit your premium each year and adjust it based on factors such as your driving record or number of accidents. However, health insurers have generally evaluated their insured’s health only once, at the outset, when issuing a policy. The reevaluation of health and premiums was a practice that ended in the 1950s because the insurers feared regulators would impose limitations on premiums. At least one health insurer, however, has begun to evaluate the health of its insureds annually and to adjust policy premiums accordingly. Even without examination of insureds, some insurers have increased the insureds’ premiums based simply on the nature of their claims for the year and the possibility that more claims will arise.
Those who are healthy are in favor of this annual review. Perceiving themselves as the equivalent of good drivers, they want to pay less when they stay healthy. The health discount is, in their minds, the equivalent of the safe driver discount. However, those who are less healthy argue that people buy insurance so that it will be there when they need it, and the coverage should apply without regard to claims. Consider the ethical issues in this type of pricing for health insurance. (Post is due before 11PM Friday.)