BUS 116 0901SP FRANCES DREW WA1 - Writing Assignment 1...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Writing Assignment 1 Business Law 116 0901SP Frances Drew 1. Benes contracts to purchase from Glover one hundred cases of Knee High Corn to be shipped F.O.B. from Glover's warehouse by Reliant Truck Lines. Glover, by mistake, delivers one hundred cases of Green Valley Corn to Reliant Truck Lines. While in transit, the Green Valley Corn is stolen. Between Benes and Glover, who suffers the loss? Explain. a. Unfortunately Glover would suffer the loss because he has sent the wrong goods to Benes. Had Glover sent the Knee High Corn then Benes would have had the loss because he contracted Glover to be shipped F.O.B. through Reliant Truck Lines. My making this shipping mistake then Benes would not be at a loss for goods that they never ordered. 2. Zeke, who sells lawn mowers, tells Stasio, a regular customer, about a special promotional campaign. On receipt of a $50 down payment, Zeke will sell Stasio a new Universal Lawn Mower for $300, even though it normally sells for $350. Zeke also tells Stasio that if Stasio does not like the performance of the lawn mower, he can return it within thirty days and Zeke will refund the $50 down payment. Stasio pays the $50 and takes the mower. On the tenth day, the lawn mower is stolen through no fault of Stasio's. Stasio calls Zeke and demands the refund of his $50. Zeke claims that Stasio should suffer the risk of loss and that he owes Zeke the remainder of the purchase price. Who is correct? Why? a. Zeke is correct in this case. The agreement is that if Stasio does not like the lawnmower he can return it within 30 days. Because the lawnmower was stolen he can no longer return the lawnmower. Stasio is liable to the remainder of the purchase price because the promotion does state that he has to return the mower. 3. Ron Rasmus was a farmer in the business of buying, selling, and raising exotic animals, including ostriches. When Gene Baker began buying flightless birds for investment purposes, he entered into an agreement with Rasmus to board the animals at Rasmus's farm. Mike Pickard bought two pairs of adult breeding ostriches from Rasmus, unaware that they were Baker's. Pickard sold one of the pairs to Gary Prenger. Both Pickard and Prenger arranged to board the ostriches with Rasmus. When Baker removed the birds from Rasmus's farm, Pickard and Prenger filed a suit in an Iowa court against him, seeking to recover the birds. To whom do the birds belong? Explain thoroughly. Apply your knowledge of the entrustment rule. a.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/11/2011 for the course BUS 116 taught by Professor Thomas during the Spring '11 term at Fayetteville Technical CC.

Page1 / 3

BUS 116 0901SP FRANCES DREW WA1 - Writing Assignment 1...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online