BL WA3

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Written Assignment for Unit #3
BL 240
Welcome. This is the third written assignment in BL 240. Before you begin the
assignment, review that portion of the course syllabus (see class webpage)
dealing with “Written Assignments” to ensure that you understand the format
(cover page plus no more than two type-written double spaced pages, content of
the cover page, Code of Honor statement, etc.). You will be graded both on your
response to the assignment and on having followed the directions (format).
Remember that verbiage will not be rewarded but the thoughtfulness and
thoroughness of your response will be. The object is for you to show me that you
understand the material in Unit 3 and can apply it to a specific fact set. List the
issues to be addressed and state the controlling law for each issue that you find.
Written Assignment #3: Kyle took your advice and decided not to spend the
money to fight for his claim to “KFC.com” as the domain name for his new
product line, Kyle’s Fiery Condiments. Kyle, however, does want to continue the
move of his business, Alabama Sunshine, to the next level of operations. His
produce marketing efforts in Hamilton and surrounding areas in Alabama and
into Mississippi and Tennessee have proven to be very successful. He now
wants to expand to other choice locations in areas that he likes to visit, namely
the beach and resort areas along the Gulf Coast of Alabama and Florida
between Mobile, AL, and Panama City, FL. Kyle has found a possible location to
construct a new store in Fairhope, AL. The property is owned by Sam. Since
Kyle’s business is successful and people throughout Alabama and abutting
States know of Kyle and of Alabama Sunshine, Kyle hires Agnes to contact Sam,
negotiate a price, and, if possible, buy Sam’s property. Concerned that, if Sam
knows that he (Kyle) wants the location, the price will increase, Kyle instructs
Agnes to not tell Sam that she is working for Kyle. During negotiations with Sam,
Agnes realizes that Sam’s property is a good deal, an exceptionally good deal,
and buys the property for herself, not Kyle as agreed. Kyle is angry, very angry,
and wants to know what he can do.
Respecting your knowledge of business law, Kyle comes to you for advice. What
are the issues and how would you advise Kyle? During the conversation, Kyle
mentions that Alabama Sunshine is operated as an informal partnership between
himself and his uncle, who has pretty much retired from management of the
business. He asks you about the advantages and disadvantages of a partnership
and whether he should change the business to some other business structure. If
so, which one would be the most advantageous? In passing he notes that the
farm worker that he refused to hire back during the peak season (remember
WA1) has now filed an employment discrimination (national origin) charge
against him personally and against Alabama Sunshine and Kyle wonders what
the procedure is for such charges.
Note: As with all Written Assignments, WA3 has a point value of 25 points. This
is to be your own work with no help offered, given, or accepted, unless you so
state, as per our Class Code of Honor.
To help you organize your thoughts, I suggest that you read the fact set; decide
which facts are relevant and which are merely verbiage; based on the information
in Unit 3; decide which legal information is relevant to the facts; then state the
legal issue (relevant facts), state the general rule of law that applies, apply the
law to the facts and then go to the next legal issue.
Student name
L# 00XXYYZZZ3456
Date
Written Assignment 1
“I declare and affirm that the work submitted for this assignment is my own work product
from my own labor, efforts, and endeavors, and that I did not receive, seek, offer, or accept
unauthorized aid or assistance or use of the work product of another, unless otherwise so
stated fully and completely herein.”
Were shipping terms included in the contract with ABF?
If shipment terms were not agreed upon in the contract, the risk of loss depends on if the seller is
a merchant or a nonmerchant. If the seller is a merchant, the risk of loss passes to the buyer
when the goods are actually received. If the seller is not a merchant, the risk of loss passes when
the seller makes the goods available to the buyer.
What shipping terms were in place with the goods that were shipped to ABF?
Title of goods passes from the seller to the buyer in an FOB shipment contract when the seller
delivers the goods to the carrier. Title of goods passes from the buyer to the seller in an FOB
destination contract when the goods have arrived and are available to the buyer for pick up and
the buyer is notified of their availability.
Since all of the goods weren’t damaged did the store manager have a right to ship them
back?
The buyer has the right to return some or all of the goods in a sale or return contract. In a sale or
return contract, the buyer bears the expense and risk of return for the goods they are unsatisfied
with. More specifically, the buyer can reject the full shipment, accept the shipment and seek
damages for the goods, or accept the goods that conform to the contract and reject the goods that
do not conform to the contract.
Is the transaction considered canceled after ABF sent the goods back?
If a buyer rejects goods, the seller is given an opportunity to deliver goods that conform to the
contract, also known as right to cure. The seller only has the time remaining in the contract to
replace the goods, and the seller needs to notify the buyer in a timely manner that they are
sending different goods to them. In some cases, right to cure can still occur if the time has
already expired through the contract. Additional time may be allowed if: the seller notifies the
buyer and the seller reasonably thought that the initial goods sent would have been acceptable to
the buyer.
Does a contract exist between Kyle and the CEO of ABF?
In order for a contract to exist there has to be an offer and an agreement. Under Article 2,
acceptance can be through any medium that is reasonable under the given circumstances. In this
case, the answering machine message will not suffice because the contract is for over $5,000.
The statute of frauds states that contracts over this amount must be written.
What did Kyle promise Scooter?
Since a certain condition must be met in order for Scooter to receive the gift, this is a conditional
gift. For this to be considered an oral contract, this bonus will have to be less than $5,000.
What should Kyle do when the CEO calls to make sure the goods will be delivered?
After the setbacks caused by the power outage and the plant contamination, Kyle should
probably call for an anticipatory repudiation. This just means that he must provide ABF with a
record that he will not be able to perform the duties of the contract.
Written Assignment for Unit #1
Written Assignment #1: Kyle and his family own a successful farming and
processing business at several locations near Weston in Marion County, AL (not
far from Hamilton, AL). The produce that they grow (vegetables and fruits) is
sold under their own label, Alabama Sunshine. Kyle raises all of the produce on
the family farms and sells it and the condiments that he makes from the produce
at a roadside market that his family owns just outside of Weston on Bexar Ave.
Although his family helps run the business, Kyle hires temporary workers during
the peak times of the planting, growing, and harvest seasons. He also hires
temporary workers during peak production times in his condiment processing
facility in Hamilton, AL. As can happen, Kyle occasionally is approached by one
of his local, seasonal workers about hiring a cousin or other relative who is new
to Alabama. This potential employee would agree to work for below minimum
wages, would not ask for or expect any health insurance or other benefits, and
would gladly accept all wages in cash without any deductions for social security
(OASDI) or taxes. With the rising costs of fuel, fertilizer, and supplies, Kyle
needs to cut expenses wherever and whenever possible and he could save
money by hiring such workers. Since his operation is rural (primarily in Marion
and Fayette Counties, AL), he feels that he would probably not have
any problems from State or federal authorities.
Kyle tries to be an ethical business person. He knows that what he is being
asked to do is questionable at best and possibly illegal but it is midFebruary; planting time for the early season crops is approaching quickly; and he
knows that he needs the extra workers to get his fall/winter crops processed and
the spring crops planted. Without a successful harvest and preparation for the
next planting, there will be no Alabama Sunshine produce to sell and he will not
be able to support his family or regular workers.
As people have grown more health conscious, demand for Kyle’s organically
grown produce has increased and grocery store customers are asking
for Alabama Sunshine produce by name. Kyle would like to expand the retail
operations to include a store along a nearby major highway (I-22) that connects
Birmingham, AL, Tupelo, MS, and Memphis, TN but he does not want to get
entangled in what he considers to be “unnecessary” federal and state
regulations.
Kyle finished his business degree from UNA several years ago and he vaguely
recalls Unit 1 in his BL 240 textbook, so he understands the basic issues but he
trusts your knowledge and comes to you for advice and counsel. What should
Kyle consider as he ponders the relationship between “law” and “business
ethics”? What factors, if any, have changed society’s concept of business ethics
and the social responsibility of business enterprises? What should Kyle
understand about the relationship between “maximum profits” and “optimum
profits”?
Kyle wonders if the federal government can regulate his business
operations. And, if so, under what clause of the U.S. Constitution might the
federal government regulate Kyle’s business activities? What is Kyle’s best
argument against federal regulation of his roadside stand and farm businesses
as the operations exist now? Will he be successful in this argument? Would it
make a difference if he opens a store along the highway (I-22)
connecting Birmingham, Tupelo, and Memphis? Under what authority would the
State of Alabama have an interest in Kyle’s business? What other issues might
Kyle face?
Note: As with all Written Assignments, WA1 has a point value of 25 points. This
is to be your own work with no help offered, given, or accepted as per our Class
Code of Honor (which is to be on the coverpage of your submission, see
Syllabus).
To help you organize your thoughts, I suggest that you read the fact set; decide
which facts are relevant and which are merely verbiage; based on the information
in Unit 1, decide which information is relevant to the facts; then state the
questions (issues) that you must answer to help Kyle and, for each issue, state
the relevant law (general statement of the applicable law in your own
words). You can apply the law to the issue to reach a conclusion if you like, but
reaching a conclusion is not required. The key is to identify clearly the questions
(issues) that you must answer and state the applicable law that will guide you in
answering each respective question.
Also note that your response to this assignment is to be submitted as an
attachment via the Dropbox function, and not as an email attachment. Use Word
to prepare and submit your work.

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