Group Project Assignment

Group Project Assignment - BUSINESS LAW GROUP PROJECT...

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USINESS L AW G ROUP P ROJECT A SSIGNMENT L EGAL B RIEF RAL A RGUMENTS Last summer Temple University Bookstore decided to capitalize on the electronic craze among college students. For the first time ever, the Bookstore started selling laptops, laptop accessories, and other electronic devices. Sarah Smith, an 18-year-old Temple freshman, moved into the dorms in late August 2010. Excited about becoming a Temple Owl, Sarah went to the main Temple Bookstore to buy a Temple University t-shirt, sweatshirt, sweatpants, and baseball cap. While she was at the Bookstore, Sarah saw the new electronics section. Laptops of all sorts of colors, shapes, and sizes were on display. Sarah selected and purchased a laptop for $500 on September 1. When she purchased the laptop, the salesperson asked Sarah to fill out a form with her name, address, phone number, and TUID. The form had a lot of pre-printed writing in small print. Sarah asked the salesperson, “What is this form for?” The salesperson responded, “It’s just a standard Sales Agreement that we have all laptop purchasers fill out.” Sarah didn’t bother reading the form, filled in all the blanks, and signed her name at the bottom. Sarah paid for her laptop. The salesperson gave Sarah her new laptop, a copy of the completed Sales Agreement, and her sales receipt. Sarah went back to her dorm room, tossed the paperwork in a drawer, and opened up her new laptop. Over the next week Sarah started using her laptop, but found that it was too heavy to carry around campus to take notes in class. She decided that she wanted a smaller, lighter laptop. On September 10, Sarah took her laptop, along with the receipt back to the Bookstore and tried to return it. The salesperson told Sarah that they would gladly take the laptop back since she was returning it within the 14-day return policy. However, there is a 20% restocking fee. Outraged, Sarah declared that she didn’t know anything about a restocking fee. The salesperson calmly showed Sarah that Clause 8 of the Sales Agreement (that Sarah had signed) clearly stated that non-defective returned laptops were subject to a 20% restocking fee. Feeling defeated, Sarah returned the laptop and got $400 back ($500 minus $100 restocking fee). The following week Sarah discovered that Temple Law School has a free Consumer Protection clinic. Sarah stopped by and spoke to a law student who was working in the clinic. The student reviewed the Sales Agreement and offered to have the clinic represent Sarah in a lawsuit against the Bookstore. Since the services were free, Sarah ecstatically agreed thinking maybe she would get her $100 back. The clinic filed a lawsuit in Pennsylvania on behalf of Sarah Smith against the Temple University Bookstore alleging that the Sales Agreement (and thus the restocking fee clause) is not enforceable because (1) the terms of the contract were unconscionable, and (2) the contract was an adhesion contract. Temple University’s Office of University Counsel declared that the Sales Agreement is
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This note was uploaded on 03/29/2011 for the course LAW 1101 taught by Professor Hodge during the Spring '11 term at Temple.

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Group Project Assignment - BUSINESS LAW GROUP PROJECT...

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