Reference no: EM132828702

Legal Scenario

Delia from Delia Designs Inc approached Cloverdale Paints Inc (Cloverdale) to purchase enough paint to recover the interior of Dream Hotel, a boutique hotel with 75 rooms and includes an indoor pool area. When selecting the paint, Delia describes the job to the sales representative at Cloverdale:

"I was hired to repaint the interior of Dream Hotel. This is the first time I have painted in a space that includes an indoor pool room. Do you have an all-purpose paint that can do the whole job? I think it will be easier if I can use one paint that will work in different types of humidity."

The sales representative recommended a latex paint that was moisture resistant and, according to the sales representative, would work well in all the spaces described. Delia purchased the recommended paint, relieved she would only need to use one type of paint.

Six weeks after the hotel had been painted, Delia learned that the latex paint in the pool room was starting to deteriorate. In fact, the walls were showing signs of mildew. Delia approached Cloverdale for advice to remedy the situation. The sales manager confirms that latex paint in a
pool room would not protect the walls given the humidity. The manager offers to sell the appropriate vapor-retardant paint coating at a 40% discount as a way to compensate for the 'misunderstanding' between Delia and the sales representative.

Delia is certain there is a better remedy than a 40% discount on new paint. She consults you to determine a legal remedy.

Your answer should discuss:

1. Case Name (who is suing who)

2. The main legal issue (legal concept that applies),

3. Reasoning (legal discussion/description as it applies to the case), and

4. Risk Reduction strategies (Can speak for any of the parties involved)