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BUL 4310  Legal Business John Jacobs New Expensive Cars Case Study

BUL 4310  Legal Business John Jacobs New Expensive Cars Case Study

BUL 4310  Legal Business John Jacobs New Expensive Cars Case Study

  1. John Jacobs is a 17-year-old high school senior. Most of his friends on Facebook have expensive cars. Although he has never seen these cars, they must exist because his friends have posted pictures of them on Facebook. John believes everything he reads and sees on Facebook. John considers a new car to be a necessity.

He decides to ride his bicycle to the local Chevrolet dealer. Once there, he decides to buy a 2016 Corvette. The salesman is reluctant to sell the car to John until John says that his father will co-sign the loan. The salesman is still reluctant so he calls John’s father. John’s father refuses to co-sign the loan.

John convinces the salesman that he can make the payments without his father’s help. The dealer then agrees to sell the car to John, who signs a contract agreeing to buy the car and make 60 monthly payments. John also makes a $500 down payment.

John misses the first three monthly payments because he spends all his money on gas. Even worse, he challenges all takers to drag races and loses a fortune in bets. John decides to return the car to the dealer for a full refund. The car dealer refuses to take the car back and demands that John make the past-due payments and all future payments.

John then sues the car dealer for his $500 down payment, and asks the court to invalidate the contract.

The car dealer sues John for the 3 payments that John has missed.

What will be the outcome of each lawsuit? Fully explain your answer.

II. Jack and Jill are drug smugglers. They make monthly trips to Mexico to buy bulk quantities of drugs. They then load them in their truck’s false gas tank and drive them back to the U.S.

Their truck is getting old and they decide to buy a new one. However, the new truck does not come from the factory with a false gas tank in which to hide the drugs. Jack decides to bring the truck to the Mechanic’s auto repair garage to have a false gas tank installed.

When Jack arrives at the garage he makes the following request to the Mechanic: “I need a spare gas tank installed in my truck within 2 days. Don’t worry about connecting it to the engine because I never intend to fill it with gas, just drugs.”

The mechanic agrees to install the gas tank only if Jack agrees to sign a written contract. The mechanic writes the following contract: “Mechanic agrees to install a gas tank in Jack’s truck. Jack agrees never to use the truck for an illegal purpose and will pay Mechanic $1000 for the work.” Jack and the Mechanic both sign the contract. The Mechanic is 17 years old. After the Mechanic installs the tank, Jack refuses to pay.

The Mechanic brings a lawsuit against Jack for breach of contract. Will he win? Fully explain your answer.

III. You are about to open a coffee shop in Miami. You have leased a building and purchased all the necessary equipment for the shop, including furniture for the customers. However, you must still arrange for bulk coffee to be delivered to your shop, which you will then brew and sell to your customers. You have interviewed several local suppliers, but have decided that Joe’s Coffee Supply has the best coffee at the best price.

You must now enter into a contract with Joe’s Coffee Supply. You recognize the importance of this contract to your business—without a reliable coffee supplier, your business will fail. You decide to write a contract that you will ask Joe’s Coffee Supply to sign.

For this question you are to draft a contract between your coffee shop and Joe’s Coffee Supply for the delivery of bulk coffee. The contract must contain eight to ten separate provisions that will best ensure the success of your business. You must also fully explain why those provisions are included in the contract.

IV. John Smith, a residence of Florida, decides to open an account on Twitter after talking to his friends, all of whom agree that Twitter is great. John goes to the Twitter website, fills in all the requested information, and then clicks the box that says “I accept the terms of service.” John clicked that box without reading the terms of service.

After a few months, John is upset that some of his private information has been misused by Twitter. He decides he would like to bring a lawsuit against Twitter. Can John file his lawsuit in Florida? Fully explain your answer.

V.You own a coffee shop. You take great pride in the coffee you serve, and always make sure that it is served nice and hot. One day while you are on vacation, the person you hired as manager of the shop decided to make a change in how the coffee is served. Several customers complained that the coffee was not hot enough, so the manager decided to turn up the heat on the coffee maker to its highest setting. Shortly thereafter, the manager heard a loud scream from a customer who said: “The lid fell of my cup and the hot coffee spilled on my lap. I have been burned.” The customer was rushed to the hospital where she was treated for third degree burns over 16% of her body. The customer decides to sue YOU for the cost of her medical care and for pain and suffering. Will the customer succeed in a negligence lawsuit against you?


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