Contract

Was the chairman of the US company wrong for not having found out In advance about Japanese business practice? Not seek information Yes it was wrong for not having found out in advance about Japanese business practice. The tomato market In US has not been exceeding Its goals because It was not enough to absorb Increasing Imports. To enter the Japanese market was one of the potential bright spots for the Supreme Canning Company. Japan has been decreasing their trade barriers and attempting to encourage imports.

Since the US rim did not have well-known brand name/llama of it own Like the Japanese firm, which was much larger and handled a large number of products with great success, it was a good business opportunity for the US company to enter the Japanese market and act as a large-scale supplier of products made to customer’s specifications. The US company should have considered that Japan’s business practice Is a lot different than Is recognized In US with various cultures both In business and day to day life and they should have sought knowledge of how the Japanese carry out their business reactive.

If the US Company had done that there is a big possibility that they could have a long lasting successful collaboration in the tomato market in Japan. The president and chairman of the board of Supreme Canning Company went on a four- day business trip to Japan to discuss business matters with the Japan company. Some misunderstanding came up but the visit was concluded successfully and the Americans invited the Japanese to visit their plant in California.

The Japanese company was willing to sign up a mutual contract but the US Company rather wanted mom specific agreements and contract which Is the first sign of different business culture. When the Japanese were supposed to visit the US company for four days 1 OFF senior executive came. The vise president of the board of the California company was offended and wrote them a letter saying he was not satisfied with their behavior and the Japanese decided to cancel the visit and no further negotiations or serious contracts were made.

Seek information If the US company had sought information about Japanese business practice this misunderstanding would never have occurred. The Japanese found it offending when he vise president wrote them a letter asking why they were not going to send their president and were only staying for two days instead of four. The older the people get in Japan the more respect they receive. Therefore the Japanese company sent an older man who did not present a card nor did introduce himself when he and three other middle aged local businessmen of Japanese extraction visited the plant some months later.

The older man Just got along and listened what they talked about. This behavior is recognized in Japan but the vise president and the chairman of the US many did not know that because they did not seek information about Japanese business practice. Whether companies are going to export their product’s in Japan or some other countries it is extremely important to study the business practice so that communications between the companies can go as smooth as possible with few misunderstandings and respect.

Question 2 Where the Japanese wrong for not having found out about US business practice before they initiated contacts? The Japanese were both right and wrong. They were wrong because they didn’t do heir homework, they didn’t know enough about western negotiation habits. If they would have some knowledge of western culture they would have understood the chairman’s reaction, even as he reacted a little harshly. Even though the Japanese company was much larger than the US company, the Japanese had no right to behave like they owned the US company.

If they wanted this contract they would have learned that US negotiators typically prefer direct statements, vigorous defense of their position, agreements on a point-by-point basis, the covering of all contingencies n a written contract, and rapidly get to know their potential associates first, prefer to avoid argument and confrontation, wish to consider the agreement as a whole, and need to concur frequently among themselves and with their colleagues at the company before agreeing anything.

If these differences are not recognized and allowed for, feelings of mistrust may cause failure in reaching agreements that would otherwise be beneficial to both parties. Methods of negotiation also are culturally influenced. But the Japanese were not wrong about several things. The managers of the US many should have also learned more about Asian negotiation techniques before they arrived in Japan. The only thing that went wrong was huge misunderstanding between the two companies.

The managers of the both companies were insulting each other without even noticing. Dealing with foreign managers or subordinates in overseas offices presents potential for misunderstanding and conflict. That is exactly what happened between these two companies. Question 3 What should the president of the US company do now? The presidents of the US company should apology on behalf of the company for not Ewing so globalize, and try to have the Japanese back to the negotiations.

Project Description

Krasi & trofi? (once upon a Greek Bistro…) will open at Bonifacio High Street(B1). The store is open from Monday to Sunday at 10AM to 10PM. It introduces an exquisite type of Greek Cuisine in the Philippines. It offers a Greek traditional way of fine dining, where customers can enjoy the customs of Greece like being introduced to the Greek superstitions, traditions, and holidays.

The Bistro’s color scheme is blue and white since it’s the color of the national flag of Greece. Its advantage is the specialty dishes that are Greek inspired, as well as the fresh ingredients.

Project Objective

• To introduce a new taste to Filipino customers.
• To introduce to Filipinos the traditions and cultural ways of Greeks.
• To attract future investors through the unique way of our business. In any business, the main goal is to earn profit.
• To be competitive in the food industry by producing income.

Mission Statement

Our product mission is to let our clients/target market experience the Greek way of living as well as satisfying their wants, needs, and expectations. Our economic mission is to gain profit and to expand the business as well as to achieve our set margins in order to have a stable business and to satisfy shareholders. Our social mission is to provide employment to Filipinos and give them a great opportunity of experiencing a different way of serving in a fine restaurant, in order for them to have an extraordinary skill in the future.

Vision The company’s vision is for the next 3 years is to increase our profit to more than 50% of our current earnings. The business performance will also increase and attract other investors and shareholders. Gaining more investors will lead to the expansion of the business to greater markets. In those three years we intend to gain more clients that patronize our product and services. We, not only sell the products, but as well as the different yet wonderful experience in dining with us.

Highlights of the Project

Company’s History

Greece is famous for their large appetite which is identical to the eating habits of Filipinos, that is why Krasi & trofi? wanted to bring a new kind of cookery that is familiar as well in the Filipino culture. Greece is also known for its specialty ingredients like lambs, yogurts, olives, and wine that create remarkable dishes. Greece is also well-known for its lively entertainment and its superstitions and traditions that they practice up to now. Krasi & trofi? would also illustrate a Greek Style of service that would bring excitement and satisfaction to its customers.

Project time table and status

• Industry analysis
• Financial analysis
• Investment
• Major Suppositions Used and Summary of Findings
• Market Viability
• Technical Viability
• Financial Viability
• Socio-Economic Viability
• Management Viability

Conclusion of the Study

Product Description

Krasi & trofi? is a fine dining Greek Bistro that caters dishes like Fricasse (arn-nee free-cah-seh), a stew lamb made with spinach, Sadziki (tsa-tsi-key): Yogurt, cucumber and garlic, and salt.

It is great on fresh Greek bread. Those are few of the cuisines that we offer. Our dishes are both Greek and Filipino-inspired that interest more customers.

Demand and Supply

Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship. Supply represents how much the market can offer.

The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price. The correlation between price and how much of a good or service is supplied to the market is known as the supply relationship. Price, therefore, is a reflection of supply and demand.

Demand and Supply analysis

The analysis of demand and supply depends on how the relationship is doing. For example, if the demand is high and the supply remains constant, the price therefore will increase.

It is because there is a scarcity of supply; therefore there is a limited number of product/service that can be purchased so people who can only afford the product can buy it. And when the demand is lower than the supply, then the price would decrease because the company should be able to produce and sell all the supplies in order to gain back their capital. Price, therefore, is a reflection of supply and demand.

Do not change the font and do not put in any punctuation or other marks in the answer sheet; put only the letter choice of your answer. Also, do not put any spaces before or after the letter you enter as your answer. Be sure to turn off the automatic completion function of cell entries. On the Tools menu, click Options, and then click the Edit tab. Clear the Enable Autoclave for cell values check box. Please put only your last name on the Answer Sheet in the by writing it in the yellow space. 1. With regard to the court, adequacy of consideration means: A.

The court will adjust the consideration if the value exchanged is unfair. B. The consideration exchanged must be exactly equal in value. C. The court doesn’t care about value as long as the mutual assent is valid. D. The consideration exchanged must be reasonably close in value. 2. Bill gets many speeding tickets. His friend Ron told Bill that he would pay Bill $300 if he did not get a ticket for one year. Bill drove very cautiously for the next year and did not get a ticket. Is Ron obligated to pay? A. Yes, because Bill gave up a legal right based on the agreement.

B. No, because $300 is not an adequate amount based on Bill’s detriment. C. Yes, because a promise is a promise and consideration has nothing to do with this agreement. D. No, cause Bill suffered no detriment in this agreement. Page 2 of 6 LAW 421 – Quiz 3 – 7. 01. 14 3. Excursions Inc. (Excursions) ordered 300 kayaks from Seafarer’s, Inc. (Seafarer’s), with delivery to be made on April 20. The kayaks will used during the upcoming season. Under which circumstance may Excursions claim anticipatory repudiation? A.

The popularity of kayaking has suddenly decreased and Excursions isn’t sure it can use 300 kayaks during the upcoming season. B. The cost of kayaks has tripled owing to worldwide demand, lowering Seafarer’s profit margin. Yet Seafarer’s insists that it will honor the contract with Excursions. C. Excursions have found another manufacturer that can provide less expensive kayaks of the same quality as Seafarer’s kayaks. D. Seafarer’s only manufacturing plant burned down on January 1 5, yet Seafarer’s insists that it will rebuild the plant and honor the contract with Excursions. 4.

Ronald contracted with Quality Hotel (Quality) to rent a room for a weekend while at a business meeting in the city. The contract with Quality required a $50 deposit with the remaining balance due on check-in. The deposit was nonrefundable unless the reservation is cancelled at least 36 hours prior to check in. The day before he was to eave for the resort, Arnold’s boss called off the business meeting. Ronald called Quality, canceled the reservation, and demanded a refund of his deposit. A. Ronald will get the refund because of impossibility of performance; he can’t attend a business meeting that isn’t going to be held.

B. Ronald will get the refund because of frustration of purpose; his intention was to attend a business meeting that is no longer being held. C. Quality is not required to provide a refund. D. Ronald will get the refund because of impracticability; he doesn’t need a room to attend a business meeting that isn’t going to be held. 5. Paul contracted with Dan to buy some land on behalf of Developers, Inc. Developers told Paul to use Pall’s own name and not to disclose to Dan that Paul was working for Developers. Paul signed the contract in his own name only. Developers refused to honor his arrangement with Paul.

A. Paul is liable, but may sue Developers based on failure of loyalty. B. Paul can’t be sued because he’s only an agent. C. Developers has no liability to anyone since his name was never disclosed. D. Paul is liable, but may sue Developers based on indemnification. 6. Which of the following is not an exception to the employment-at-will doctrine? A. An employee is working under an implied employment contract. B. An employee’s termination violates a public policy or statutory right. C. An employee is terminated but has received excellent evaluations and the employer cannot give a reason for the dismissal.

D. An employee is working under an express employment contract. Page 3 of 6 LAW 421 – Quiz 3 – 7. 01. 14 7. Big Box Inc. (Big Box) was hiring a security guard for one of its stores. On its application, Big Box asked whether the applicant had ever been arrested. Bob applied for a Job at Big Box and answered no to the question. He also answered no to a question asking if there was any reason that he would not be qualified to work as a security guard. Soon after Bob was hired, he hit a customer. It was discovered at trial that Bob had been fired from numerous Jobs for abusing customers and other offenses.

If the customer sued Big Box: A. Big Box would not be liable because it made a good faith effort to screen applicants by specifically asking about past indiscretions. B. Big Box would not be liable because Bob was supposed to control customers. C. Big Box would be liable for negligent hiring. D. Big Box would be liable for negligent retention. 8. With regard to whistle-blowers: A. Every state law protects both government and private employees from retaliation. B. Employers may terminate whistle-blowers if they can prove a reason for termination independent of retaliation for the whistle blowing. C.

There is no federal whistle-blower act. D. Based on the employment-at-will doctrine, employers may terminate whistle- blowers without proving a reason independent of retaliation for the whistle blowing. 9. Rupert hired Calvin to drive a car to a site 75 miles away. Rupert specified the route that Calvin was to take and told him to be sure to arrive by 4:30 pm. On the ay, Calvin became hungry and decided to stop to eat. He had plenty of time to stop, eat, and still make the deadline. He went too restaurant that was three miles off the route that Rupert had specified. Calvin did not call Rupert to ask for permission.

On the way to the restaurant, Calvin failed to stop ATA red light and hit Cam’s car. Sam sued Calvin and Rupert. A. Rupert will lose because Calvin was on a frolic, so Rupert is liable B. Rupert will win because Calvin was on a detour, freeing Rupert from liability C. Rupert will lose because Calvin was on a detour, so Rupert is liable D. Rupert will win because Calvin as on a frolic, freeing Rupert from liability 10. Adam accepted a new Job. Which of the following is not a contract condition related to that Job? A. Adam will receive a bonus provided that he obtains 25 new clients within 30 days. B.

Dam’s medical and dental benefits will start after he has worked for seven months. C. Dam’s salary will be $1,200 a week. D. Adam cannot begin work until he passes a drug test. 11. The IRS has developed a three-part test to determine an agent’s status. Which of the following is not an element in this test? A. Whether the working relationship is written or oral B. He type of working relationship between the parties C. Behavioral aspects of the parties D. The financial arrangements between the parties Page 4 of 6 LAW 421 – Quiz 3 – 7. 01. 14 12. Ernie worked as a delivery driver for a local fast food restaurant.

His duties consisted of making deliveries along a designated route. One day Ernie decided to visit his friend, who lived 8 miles out of his delivery route. While driving to his friend’s house, Ernie injured a pedestrian, Alvin. The accident was caused because of Ermine’s negligent driving. Alvin sued both Ernie and the restaurant for personal injuries. Under the circumstances: A. The restaurant is never liable for the negligent acts of its agents. B. The restaurant is liable under the doctrine of respondent superior. C. The restaurant is not liable because Ernie was on a frolic of his own. D.

Alvin can recover damages from both the restaurant and Ernie. 13. James wanted to have a pool built at his house. He called Patio Construction, Inc (Patio). When Patio came to give James a price, it did some soil tests and discovered no problems. Patio quoted $1 5,500 for the pool. However, when it begin excavating for the pool, Patio discovered solid rock few feet below ground level. Patio stopped work and informed James that, due to the rock, it will have to use explosives to remove the rock and that the cost of the pool would now be $18,000. A. James is under contract and will have to pay the new price. B.

James can have the contract discharged based on impracticability. C. James can have the contract discharged based on frustration of purpose. D. James can have the contract discharged based on impossibility. 14. Jake advertised his scooter for sale. The scooter doesn’t start easily in damp weather. Adam was looking for a scooter to use at his home, which near the seacoast, which he told Jake. Jake said nothing. Adam bought the scooter, brought it to his house, where Adam often had trouble getting it to start on damp mornings. A. Jake has committed a fraudulent misrepresentation because he withheld a material fact.

B. Jake has not committed a fraudulent misrepresentation because Adam didn’t specifically ask if the scooter started easily in damp weather. C. Jake has committed an innocent misrepresentation because he didn’t state a lie, but only withheld all of the truth. D. Jake has not committed a fraudulent misrepresentation because silence cannot be considered a fraudulent misrepresentation. 15. In which of the following scenarios would enforcement of specific performance be appropriate? A. You ordered a stereo from an electronics store and a few days later it breached by not ordering it from the manufacturer.

B. A store agreed to order a laptop computer for you, but breached its contract with you by canceling the order the next day. C. You ordered 50 cubic yards of crushed from a local store and it breached by not delivering or making the stone available to you. D. You contracted to buy an antique clock to add to your art collection; but, despite the contract, the owner refused to sell at the last minute. 16. Which of the following is the true statement? A. Apparent authority is based on what the principal communicates to the agent and not to the third party. B.

Actual authority must be expressly created and cannot be based on custom or past dealings. C. Actual authority must always be expressed in writing. D. Ratification applies to previously unauthorized acts. Page 5 of 6 LAW 421 – Quiz 3 – 7. 01. 14 17. Jim contracted with Gardeners Inc. To plant some trees in Jims back yard. Jim was to purchase the trees. The contract with Gardeners was solely for planting. Payment was to be 25% at the time that the work commenced and 75% once the Reese were planted. Jim purchased the trees and paid Gardeners the 25%. Gardeners began work.

When Gardeners was half way through the Job, Jim changed his mind about having trees planted, so he refused Gardeners access to the yard. If Gardeners wanted to rescind the contract and be paid for work completed, it would sue for: A. Consequential damages. B. Compensatory damages. C. Restitution. D. Liquidated damages. 18. Marine, Inc. Advertised a canoe on sale. The normal price is $1,250 and the sale price should have read $950, but the advertisement stated $750. Sam went into the tore and demanded to purchase the canoe at the advertised price of $750. Which of the following is correct? A.

The court will adjust the consideration, if the value exchanged is unfair. B. The court doesn’t care about value, as long as the mutual assent is valid. C. The consideration exchanged must be exactly equal in value. D. The consideration exchanged must be reasonably close in value. 19. In which of the following situations is the agent not liable should the principal breach the contract with the third party? A. Agents are liable in all agency situations B. Undisclosed agency C. Partially disclosed agency D. Disclosed agency 0. Bobby entered into a contract with Eddie. Subsequently, Bobby assigned his rights in that contract to Jake.

Which of the following would not prevent that assignment? A. The contract contains an anti-assignment clause. B. The assignment would materially alter Eddies duties and cause an increased burden or risk to Eddie. C. Eddie protests the assignment and demands that Bobby not make the assignment. D. The assignment would violate public policy matters. 21 . Which of the following is the best explanation of the parole evidence rule? A. Oral agreements may be used to change a final written contract if the final written entrant isn’t exactly conforming to the pre-contract agreements. B.

Written contracts with ambiguous terms are automatically void and cannot be corrected. C. Written agreements may be used to change a final written contract if the final written contract isn’t exactly conforming to the pre-contract agreements. D. A written contract is the final expression of the party’s agreement and may not be contradicted by oral or written agreements made prior to the writing. 22. Ralph was a driver for Discount Appliances, Inc. (Discount) and made deliveries to customers. One day, Ralph negligently secured a fridge on the back of his truck and, hill driving, the fridge fell out of the truck and hit Jims car.

Which of the following is correct? A. Both Ralph and Discount are liable. B. No one is liable, it was an accident. C. Ralph is liable, but not Discount. D. Discount is liable, but not Ralph. Page 6 of 6 LAW 421 – Quiz 3-7. 01. 14 23. Richard called Jeff asking him to referee a game. Jeff is not obligated to work the game. If Jeff accepts the assignment and works the game, he would be told the time of the game, he would be required to wear an approved uniform, and he would be paid a fee. Once at the game, Jeff would be in complete control. Jeff is considered a/an: A. Principal. B. Independent contractor. C. Agent. D. Employee. 24. In which of the following situations will the court enforce a contract? A. Kevin offered to sell his boat to Dave for $12,500. Dave replied that was too much and said, “I’ll give you $10,000 for it,” Kevin said no. The next day Dave called Kevin and said, “l accept. ” B. Kevin offered to sell his boat to Dave. Dave asked for 24 hours to decide and Kevin agreed. At midnight, the boat sank, although neither Dave nor Kevin knew it sank. Dave called Kevin before the 24 hours was over and said, “l accept”. C. Kevin offered to sell his boat to Dave.

Dave asked for some time to decide and Kevin gave him until 7:00 pm. At 5:00 pm, Dave saw Adam painting the boat and was told that Kevin sold it to him. Dave called Kevin at 6:00 pm and said “l accept”. D. Kevin offered to sell his boat to Dave. Dave asked for more time and Kevin said you may have until 11:00 am the next morning. Dave gave Kevin $150 for him to keep the offer open to him, which was nonrefundable. Kevin died during the night and, after hearing that Kevin died, Dave called Seven’s heirs at 10:00 am the next morning and accepted Seven’s offer.

When Paul came home from work, he found that all the snow from a recent storm had been removed from his yard. An hour later, a boy came to Pall’s door to collect payment for the work. Paul refused to pay him because he had never seen the boy before, nor had he hired him to do the work. Which of the following is accurate? A. This is an implied, unilateral contract, therefore, he must pay. B. Paul received unjust enrichment, so a quasi contract was formed and he must pay. C. Paul would not have to pay anything. D. To be fair to both parties, the court would make Paul pay the reasonable coos

There are many definitions of the term “contract”. Usually, contract is defined as any agreement between two or more parties i. e. organizations, businesses, government agencies or individuals with the purpose to exchange something of value. Generally, contracts are presented in written form or seldom are they entirely verbal. There can be a breach in contract when any party fails to find a compromise with others. However, the key elements of any valid contract are agreement, consideration, capacity and legality.

Agreement means that each party is clear about contract’s rights, obligations and details and it fully supports them. To avoid future misunderstanding and disputes all points are dealt down in the contract. No agreement is achieved if any party is bragging and joking or there is no actual agreement. Furthermore, agreement can’t be found if both parties make material mistakes. Consideration means that party must provide something of value to be exchanged if other sides are to be held to the current contract. Read also 

Parties aren’t allowed to obtain something without putting something valuable for exchange. For example, money is considered the most commonly used compensation, but property can be also involved. Illicit acts aren’t consideration and such contract is invalid. Capacity means that each party must have conceptual capacity to enter in to contract signing. It means that parties must be entailed with sufficient legal competency. Legality means that any contract should involve only legal acts; otherwise it would be invalid contract.

Summing up, agreement, consideration, capacity and legality are four key elements making any agreement a valid contract. If any of these elements is violated, then the contract is claimed to be void and illegal. Before signing any contract, parties must carefully get acquainted with all details to avoid misunderstanding and disputes.

I was told about the details of your situation. I am aware that you want to bring a lawsuit against Sam salesperson and the seller. I have done some research and gathered the following information for you. The ethical issues involved in your situation include violation of full disclosure, unfair practices, and breech of contract. Sam Salesperson failed to disclose to the seller that you requested an extension of the earnest money payment, and did not tell you this. Sam Salesperson Intentionally let time lapse to void your contract in order to accept a higher offer.

There are several causes of action in your case. You may bring action against the seller and Sam Salesperson based on a breach of contract. Because you had an agreement with the seller. There was a lack of communication between the salesperson and seller. There are grounds for fraud here based on Sam Salesperson not Intending to let the timeline for the earnest payment lapse. You also have grounds for negligent misrepresentation based on a breach of fiduciary duty to you.

You may request that the judge rescind the purchase contract as you had a contract with salesperson and seller before the higher offer was discovered. You had a contract agreement with the leer to purchase real estate which was breached when the seller accepted the higher offer. You also had a contract with the salesperson which was breached when you failed to pay the earnest money by the deadline. Even though Sam salesperson failed to notify the seller of your request for extension you are the one who breached the contract since there was never a stipulation extending the time for you to pay. A contract is created at law when there is a mutual exchange of promises upon reasonably understandable terms and conditions. A contract does not have to be reduced to writing in order to be enforceable” (ass) http://www. Us. Deed/counsel/ brief/contractions. HTML Remedies: You may request damages which would be measured by the difference in the price stated in your contract to buy the real estate and the price of the higher price it was sold for.

Rescission and restitution in order to cancel the contract with the subsequent buyer and pay restitution as punitive damages for time lost. Elements of a contract: Offer, acceptance, and consideration. The breach of contract is when one party Involved failed to fully or adequately perform the duty the contract provided. RE-28-1 101 . Dunes to Client A. A licensee owes a fiduciary duty to the client and shall protect and promote the client’s Interests. The licensee shall also deal fairly with all other parties to a transaction.

Barbara buyer memo By fruitychick2000 the earnest money payment, and did not tell you this. Sam Salesperson intentionally are grounds for fraud here based on Sam Salesperson not intending to let the the Judge rescind the purchase contract as you had a contract with salesperson and involved failed to fully or adequately perform the duty the contract provided. RE-28-1101. Dunes to Client client’s interests. The licensee shall also deal fairly with all other parties to a

Law Brief Assignment Case: Fans v. New York Highlanders Inc. Facts: The New York Highlanders are building a new stadium, offered a first come first serve season ticket special. In order to be eligible, buyers would have to pay a $10,000 licensing fee which would guarantee a specific seat as identified in a stadium seating diagram. About 10,000 fans signed up and sent in their seating choices at the 50 yard line (the most desired seats) and received confirmation from the Highlanders that their seats were reserved.

Unfortunately, after the licenses were sold to the 10,000 fans, the stadiums dimensions were reduced and only had 5,000 available seats on the 50 yard line. The Highlanders announced that 5,000 of the 10,000 would get the preferred seating based on a lottery, and the remaining 5,000 would be given other seats. Issue: The plaintiffs are suing the defendant to reimburse a $10,000 fee which guaranteed a specific seat in the new stadium. Due to reduced dimensions, the New York Highlanders Inc. would give the plaintiffs different seats Application: Referring to the case of Yocca v. Pittsburg Steelers Sports Inc. Yocca was sent a brochure granting the right to buy annual season tickets to games thru stadium building licenses. Yocca applied for the stadium building license and listed his seating preference. The Steelers sent him a letter notifying him of the section in which his seat was located. A diagram was included with detailed parameters of the section, but it differed from the original brochures diagram. The Steelers also sent Yocca documents including a clause that read,” This agreement contains the entire agreement of the parties. ” Yocca signed the documents, and the Steelers told him the specific location of the seats.

When he arrived to the stadium, the seat was not where he expected it to be. Yocca filed a suit against the Steelers, the defendants appealed to the state supreme court. Since the parties, without any fraud or mistake, have purposely put their arrangements in writing, the law states the writing to be the only evidence of their agreement. All previous negotiations, conversations and verbal agreements can not be combined or added to evidence. “Once a writing is determined to be the parties entire contract, the parol evidence rule applies and evidence of any previous written negations or agreements nvolving the same subject matter as the contract is almost always inadmissible to explain or vary the terms of the contract. Because the plaintiffs based their complaint on the claim that the defendants violated the terms of the brochure, and the court held the brochure as not part of the contract, the case was dismissed. The Yocca v. Pittsburg Steelers Sports Inc case is similar to the Fans v. New York Highlanders Inc, in which the fan(s) paid for specific seats that they were guaranteed to have.

The fans signed up for their seat choices and received confirmation that the seats were reserved, same as Yocca’s agreement with the Steelers. A few differences between these two cases are that Yocca signs a clause that reads, “This agreement contains the entire agreement of the parties. ” But this clause was signed AFTER he applied for the SBL documents. With the Highlanders case, we are not giving enough information as to what the fans signed off to, but we can make an assumption that the fans signed off to a similar clause because they both are applying for stadium building license.

Also, in Yocca’s case the stadium was not reducing its dimensions. Both cases had plaintiffs purchasing “specific” seats in which they were guaranteed and resulting in having a different seat or wanting reimbursement. With the fans v. Highlanders, there was no brochure or previous negations; the plaintiff’s signed off on the SBL which is the only evidence of their agreement. Seeing as to the defendant violating the agreement, the plaintiff’s are subject to a reimbursement. Decision: In a court of law, the parties’ entire contract (the Stadium Building License Document) is the only evidence of their agreement.

All negations, conversations, and brochures cannot be added to parol evidence. Because the plaintiff’s based their case complaint that the defendant violated the terms of the Stadium Building License, the defendants owe the fans a reimbursement of $10,000. Citations: 1. Clarkson, Miller. Business Law. 11. Yocca v. Pittsburg Steeler Sports, Inc. , Supreme Court of Pennsylvania, 2004 578 Pa. , 854 A. 2D, 425: Pages 313-314. 2. http://www. associatedcontent. com/article/23473/how_to_write_a_legal_brief_pg2

As Vice President at Clear Hear, I would like to address some issues that have come to light with our manufacturing of cell phones here at Clear Hear. I have taken economic conditions into consideration and will offer my recommendation that will increase revenues for our company while hopefully adding a new client to our distribution list.

Overview

Clear Hear is a manufacturer of cell phones and is currently negotiating a 100,000 cell phone unit contract. Kendra Sherman, Business Development Specialist, was instrumental in securing the cell phones contract with Big Box. Big Box needed the phones to support a promotion the company was running with a telephone service provider. All approvals of this order must be approved by Lisa Norman, Production Manager of Clear Hear, and decisions to implement this order will have to be reviewed by Lisa who will be briefed by Kendra Sherman the originator of this order from Big Box.

Big Box requested to have a contract drawn up requiring the phones to be delivered within 90 days. Lisa’s keen sense of business and ability to run her production lines helped in her discovery of 70,000 cell phone units that we will have in excess over the next 90 days. Lisa also earns the largest part of the bonus on factory total profitability and utilizing these 70,000 units would put her on top in terms of sales production. A vital concern for Kendra was that Big Box was not willing to pay any more than $15 per cell phone which is based on the $20 per unit Alpha model. Essentially, cutting costs is a key factor as to how we are going to solve this issue.

Clear Hear Scenario Summary

Clear Hear manufactures two cell phones. The Alpha model which is based on the $20 per unit and the Beta model which has more feature and sells for $30 because it also cost more to manufacture. As a long time cell phone manufacturer, Lisa knew Clear Hear would not have had any issue in switching from building the 30,000 Bata model cell phones to expanding the Alpha model line. Having a competitor (Original Equipment Manufacturer (OEM)) willing to show us and produce 100,000 units of a prototype of the Alpha model that had identical performance features as our Alpha model and willing to manufacture them on such a short notice at $14 per unit became a fundamental concern in determining our company’s position and devising the best strategy to fulfill the order while still continuing business at our current manufacturing plant.

Following the meeting with Kendra and before agreeing to accept the contract Lisa revisited the company’s profitability report and statement of values. Clear Hear profitability report is as follows:

Alpha Model price per unit was $20; variable cost per unit $8; fixed overhead $9; and profits of $3 per unit.

The Beta Model price per unit was $30; variable cost per unit $12; fixed overhead $10; and a profit of $8 per unit.

Big Box was not willing to pay our price per unit causing Clear Hear to rethink its strategy and discuss other necessary options to control costs. In order for Clear Hear to complete this order, Lisa and department heads will have to address profitability issues and will have to decide how to proceed to fill this order that will benefit our company needs, while still achieving profits for our company. If we agree to accept the contract from the 100,000 Alpha model units Clear Hear would be manufacturing each phone at a loss of $6 per units which I feel would be a bad business decision. A key contributor to our decision lies among our Clear Hear statement of values which consist of: (1) Keep our employees working; (2) Provide our customers with products on time and that reliably meet or exceed their expectation; (3) Treat our business partners the same as we want to be treated (UOP, 2010).

Analyzing Clear Hear Phone Contract Concerns

Accepting the contract Lisa knew that Clear Hear would no doubt live up to the organization statement of values with Big Box. The organization would meet the contract requirement at the cost of stopping production of the Beta Model unit. The Big Box contract would help Clear Hear to keep its employees working and the organization knew they were producing reliable phone that would exceed Big Box expectation. Anyhow, after analyzing the contract situation I feel that if Lisa accepts the contract as is, Clear Hear would lose more money than it stood to gain if Big Box decides to pay $20 per unit.

For this reason I would recommend that Clear Hear do one of the following three choices: (1) Decline the contract to manufacture the phones for Big Box based on the revenue losses that the organization would incur if they agree to the contract. (2) Manufacture the phones at a loss to Clear Hear. Manufacturing the phones at loss would keep the company’s employee working which is fulfilling one of the organization’s statements of values. (3) Accept the contract but sub-contract the phone order to Original Equipment Manufacturer (OEM) who can produce the phones for $14 per unit. Since OEM produce the phones at $14 per unit, Lisa and Clear Hear stand to earn $1 per unit profit on the contract.

Clear Hear would also save on variable cost and fixed overhead cost per unit produce by not producing the phones at a cost for Big Box. If Clear Hear agreed to accept the phone contract and decides to produce the phones in house, I believe the company would have to make some adjustment to variable cost input if the company wants to make a profit on the phone contract. Clear Hear would have to devise a strategy to produce the phones below the $15 range to earn a profit. Clear Hear could improve production rate and shorten the phone production time. Clear Hear could implement the change by instituting overtime or hire a second shift of part-time workers for the duration of the contract. Cutting the duration time for producing the phones would also cut the all fixed cost associated with the production of the phone. Clear Hear cutting the fixed cost could allow the company to meet the desire contract price.

Clear Hear could also produce the phones using a less costly material while providing the same level of functions the Alpha model phones provides. Nevertheless, Clear Hear changing the standard Alpha phone could put the company reputation at risk. Thus causes our name to be ruined from the manufacturing and supplying of an inferior product leading to reviews that are not reputable to our company by consumer advocates. Big Box may not agree to accept the new phone as part of the contract leading to a voided contract thus losing revenue for Clear Hear.

Recommendation

My recommendation to Lisa and Clear Hear is to accept order from Big Box for the 100,000 cell phones. I also recommend that Clear Hear sub-contract with OEM to produce the phone at $14 per phone. Clear Hear should continue to manufacture their Beta Model unit and keep their employees working.

Having OEM produce the phones will earn Clear Hear $100,000 just for acting as the general contractor with Big Box. My assumption is that with this recommendation is that Clear Hear can continue to work on their Bata Model unit with the present level of employees which will all the organization to sustain their commitment to organization statement of values with the employees. Also, with Clear Hear managing the contract, the company could be seen as a reliable organization that meet its customers needs and expectations, while still staying true to our statement of values. Clear Hear having partnered with EOM to complete the contract shows that our organization acts as a team player and our primary focus is our customer as well as keeping good relationships with our business partners and ensuring that all deadlines were met and products were up to our standards.