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Unformatted text preview: ulative and skillful predator. It concluded that Ryan should be
allowed to rescind the transaction, although Weiner was entitled to subtract the mortgage and house
expenses, plus reasonable interest from the sum Ryan had paid him. Weiner must repay the difference
Questions for Discussion
1. The law normally expects people to look after their own interests when they make a contract.
Why do you think the court decided otherwise in this case?
2. There was no evidence that Ryan lacked capacity to contract. Do you think it is ethical to let
him get out of the contract now? Many people make bad contracts. Where should the law
draw the line, when it comes to helping them after the fact?
3. Do you think Mr. Weiner acted ethically in this situation? Did he act legally? rog80328_06_c06_111-133.indd 128 10/26/12 5:37 PM CHAPTER 6 Section 6.4 Chapter Summary Case Study: Rosenberg v. Son, Inc.
491 N.W.2d 71 (N.D. 1992)
Facts: Pratt contracted to buy a Dairy Queen from the Rosenbergs. The terms of the sales contract for the franchise, inventory, and equipment were a purchase price totaling $62,000,
a $10,000 down payment, and $52,000 due in quarterly payments at 10 percent interest over a 15-year period. Pratt later
assigned and delegated the contract to Son Inc. The contract
included a “Consent to Assignment,” which the Rosenbergs
Even though Pratt no longer had
signed. Pratt then moved out of state and had nothing more the Dairy Queen, as an assignor and
to do with the Dairy Queen.
delegator Pratt remained liable to the
Son Inc. then assigned and delegated the contract to Merit original owner for payment.
Steven Lane/Associated Press
Corp. Merit made payments to the Rosenbergs, but payments
ceased with over $17,000 still owing. Merit then declared bankruptcy. The Rosenbergs sued Pratt and
Son Inc. for the unpaid balance plus interest.
Issue: Was Pratt, as an assignor and delegator, still liable on the contract to the Rosenbergs, the obligee/
Discussion: The court first stated the general principles of law...
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This test prep was uploaded on 04/09/2014 for the course BUS 311 taught by Professor Parker during the Spring '10 term at Ashford University.
- Spring '10
- Business Law