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Questions
1. Did all the parties (Kobelt and his W customers) consent to the 'book-up' credit agreements examined in this case? How did they do so? Do you think they regarded the credit arrangements as binding?
2. Was there any evidence that the m customers thought they were exploited or mistreated in the credit relationship? Did they regard themselves as being bound by their arrangements with Kobelt? Was it because those arrangements were seen to be legally enforceable or for some other reason?
3. What was the evidence provided about the nature of exchange relationships within the W communities? What were some of the obligations among members of the community vis-a-vis each other? What was the source of those obligations? Were they regarded as binding? You may recall the discussion of law and custom in Foundations of Law.
4. Do you think about obtaining a legal remedy whenever someone breaches a promise they made to you? What if the promise is in a contract? Do you have some non-legal avenues for redress? ls contractual enforcement more important as the basis for commercial transactions between business parties? You may read Stewart MW 'Non-Contractual Relations in Business: A Preliminary Study' (1963) 28 American Sociological Review 55. Wwork provides the basis for the relational theory of contracts, positing that commercial parties do not insist on their legal contractual rights, as they prefer to maintain long-term cooperative relationships with their commercial partners.
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