Reference no: EM133685481
Chapter 18
1. Metalcrafters made a contract to design a new earth- moving vehicle for Lamar Highway Construction Co. Metalcrafters was depending on the genius of Samet, the head of its research department, to design a new product. Shortly after the contract was made between Metalcrafters and Lamar, Samet was killed in an automobile accident. Metalcrafters was not able to design the product without Samet. Lamar sued Metalcrafters for damages for breach of the contract. Metalcrafters claimed that the contract was discharged by Samet's death. Is it correct?
2. Christopher Bloom received a medical school schol- arship created by the U.S. Department of Health and Human Services to increase the number of doctors serving rural areas. In return for this assistance, Bloom agreed to practice four years in a region identified as being underserved by medical profes- sionals. After some problem with his postgraduation assignment, Bloom requested a repayment schedule from the agency. Although no terms were offered, Bloom tendered to the agency two checks totaling $15,500 and marked "Final Payment." Neither check was cashed, and the government sued Bloom for $480,000, the value of the assistance provided. Bloom claimed that by tendering the checks to the agency, his liability had been discharged by an accord and satisfaction. Decide. [United States v. Bloom, 112 F.3d 200 (7th Cir.)]
Chapter 19
3. Self-described "sports nut" Gary Baker signed up for a three-year club-seat "package" that entitled him and a companion to tickets for 41 Boston Bruin hockey games and 41 Boston Celtic basketball games at the New Boston Garden Corporation's Fleet Center for approximately $18,000 per year. After one year, Baker stopped paying for the tickets thinking that he would simply lose his $5,000 secu- rity deposit. New Boston sued Baker for breach of contract, seeking the balance due on the tickets of $34,866. At trial, Baker argued to the jury that although he had breached his contract, New Boston had an obligation to mitigate damages, for example, by treating his empty seats and those of others in the same situation as "rush seats" shortly before game time and selling them at a discount. New Boston argued that just as a used luxury car cannot be returned for a refund, a season ticket cannot be canceled without consequences. Decide.
4. Protein Blenders, Inc., made a contract with Gingerich to buy from him the shares of stock of a small corporation. When the buyer refused to take and pay for the stock, Gingerich sued for specific perfor- mance of the contract on the ground that the value of the stock was unknown and could not be readily ascertained because it was not sold on the general mar- ket. Was he entitled to specific performance?
Text
Twomey, David and Marianne Moody Jennings, Business Law: Principles for Today's Commercial Environment, West Legal Studies in Business, 2017, 5th edition.