Q&A: Need some input on some business law questions?

Question by Michael W: Need some input on some business law questions?
Could you guys take a look at these for me and let me know what you think?

1.Beta Software Company and Gamma Sales Corporation agree to follow a certain security procedure in transacting their business online. Beta fails to follow the procedure, however. Due to this failure, Beta does not detect an error in the deal, which will have a negative impact on Gamma’s interest in the deal. Can Gamma avoid the effect of this error? How?
a.

2.Creative Solutions Corporation (CSC) agrees to sell software to Drew from CSC’s Web site. To complete the deal, Drew clicks on a button that, with reference to certain terms, states, “I agree.” What is this sort of agreement called? Do the parties have a binding, enforceable contract that includes the terms? Explain.

a.This is an online acceptance of a click agreement. Yes, because there was an offer and an acceptance of that offer, and there was consideration.

3.Clean Machines Company makes washing machines. Over the phone, Clean offers to sell Dealers Appliance Outlet one hundred model EZ2000 washers at a price of $ 150 per unit. Clean says that it will keep the offer open for ninety days. Dealers responds that within two or three weeks it will decide whether to accept. One week later, Clean faxes, and Dealer receives, notice that the offer is withdrawn. Dealer immediately phones Clean to accept the $ 150-per-unit offer. When Clean refuses to deliver at that price, Dealer files a suit. Clean asserts, first, that there is no contract and, second, that if there is a contract, it is unenforceable. Discuss Clean’s assertions.

a.Clean can assert that they never received the cancellation of the offer, and, according to common law, once a valid offer is accepted a binding contract is formed.

4.Tune Products, Inc., offers to sell to Unlimited Sales Company one hundred MP3 players at $ 50 a piece, subject to certain specific delivery dates. Unlimited replies with a signed purchase order that reads, “Accept your offer for 100 I-appliances at $ 50 each. Must be delivered to our warehouse.” Tune does not respond or deliver the goods. Unlimited files a suit for breach of contract, to which Tune answers that there is no contract because Unlimited’s purchase order contained additional terms and is not signed by Tune. Can Unlimited recover? Explain.

a.No, since the delivery terms were not specifically spelled out in the original offer Tune does not have to accept the counter offer that includes delivery of the goods.

5.Quality Computer Company agrees to sell one hundred hard drives to Retail Electronics, Inc. The hard drives, which Retail Electronics expressly requires to have certain amounts of memory, are to be shipped “F.O.B. Retail Electronics distribution center in Memphis, TN.” When the drives arrive, Retail Electronics rejects them and informs Quality Computer, claiming that the drives do not conform to Retail Electronics’ memory requirement. A few hours later, the drives are destroyed in a fire at Retail Electronics’ distribution center. Will Quality Computer succeed in a suit against Retail Electronics for the cost of the goods?
a.No, because title of the goods did not pass to the buyer. QCC should still have had insurance on those goods until they were accepted. Also since it is FOB destination that specifically states seller is responsible for shipping and for the goods until buyer accepts possession.

6.A contract between Kwik Import Company in Los Angeles and Macro Retail Corporation in New York does not expressly state which party bears the risk of loss but says only that Kwik is “to ship goods at the seller’s expense.” At what point does the risk of loss of the goods pass from the seller to the buyer?
a.The seller is responsible until the buyer accepts the goods.
Yes it is my homework and my professor said we can use any source we want for help.
Thanks Mr. Placid that is the kind of input I was looking for.
Ok I think for

#2 my professor assumes the contract is valid otherwise, and is just looking for what clicking “I agree” really means.

#3 Clean cannot revoke the offer because it is within the reasonable period of time that was agreed between the parties.

#6 – My professor stated that unless agreed otherwise the ROL passes to buyer depending on whether delivery is with or without movement of goods. So from that I get is that either the seller is responsible until the buyer accepts the goods or the buyer is responsible when the seller ships the goods, but I dont know which one.

Thanks for the input so far, any idea on number #1 that one is just confusing?

Best answer:

Answer by divot II
These look like your homework.

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