Reference no: EM13309059
Luke is a wholesale distributor of novelty supplies. Robert operates a novelty supply store. On May 1, Luke received a written order from Robert for 3000 miniature novelty cats at fifty cents each, which was the price listed in Luke’s catalog. The order from Robert stated that the cats were to be black/white and tabby with “Helena for City Council” on the front to be purchased by Helena. The order specified for delivery of half of the novelty cats by September 1st and the remaining novelty cats by October 1st.
On May 5, Luke sent Robert a written confirmation, which acknowledged the quantity, price, delivery dates, and purpose of the purchase. Both the order and the confirmation were on forms containing a number of printed clauses. The printed clauses were substantially the same on both forms, except Luke’s confirmation forms included additional clauses stating that all disputes about the transaction were to be resolved by arbitration, and that damages were limited to costs of shipping the items back for replacements.
On June 30, Robert telephoned Luke and told him another distributor offered him the same novelty cats for only forty cents each and that Robert intended to switch his order to a new distributor unless Luke agreed to lower his price. Rather than lose the sale with a long-term customer, Luke stated, “For a good customer as yourself I will give you the forty cent price.”
On August 30, Luke shipped the first 1500 novelty cats and, on September 2nd, Luke accepted Robert’s payment for those novelty cats at forty cents each. Since 1500 right color of novelty cats were not available, Luke sent 500 each of gray, white, and calico. Unbeknownst to Robert, the plastic of novelty cats reacted to heat and if they were not stored in temperatures less than 90 degrees, they would melt. Robert stored the novelty cats in a warehouse where temperatures ranged from 99 to 100 degrees. If Robert had known, he could have stored the novelty cats in proper conditions.
On September 12, Robert wrote to Luke and canceled the second half of the order because Helena dropped out of the race. When Luke received the letter of cancellation, Luke had not yet ordered the second set of novelty cats from the manufacturer.
Luke sued Robert for breach of contract in state court, seeking damages based on the original fifty cents price for those remaining 1500 novelty cats. Luke also sued for the additional ten cents per cat he is believed owed to him from the first shipment. Robert counterclaims for the ruined novelty cats. He also argues breach of contract because none of the novelty cats confirmed to the type that he specified in his order. Luke argues that if he is liable to Robert for anything, it is only the cost to return the novelty cats because of the damage limitation clause.
What arguments should each party make (Luke and Robert) and how should the case be decided? Should this case go to arbitration? Why or why not? What about the damage limitation clause?
Values of the parcel weight distribution
: The weight of parcels received at a warehouse loading dock is normally distributed with a mean of 300 lbs. and a standard deviation of 50 lbs. The weight of a parcel is independent of the weight of any other parcel.
|
An element in plane stress is subjected to stresses sigma
: An element in plane stress is subjected to stresses sigma x = -50 Mpa, sigma y =10 MPa, and tau xy = -40 MPa. Using Mohr's circle, determine the stresses acting on the element oriented at an angle of 45 degrees, the principal stresses, and the maximu..
|
Standard normal distribution
: Which of the following is NOT CORRECT about a standard normal distribution?
|
Calculate the voltage drop across the capacitor
: A series RC circuit consists of a 24.8 V dc source, a 43.9 kOhm resistor, and a 0.037 microFarad capacitor. Assume a 5.7 ms charging time. Calculate the voltage drop across the capacitor.
|
What about the damage limitation clause
: Luke is a wholesale distributor of novelty supplies. Robert operates a novelty supply store. On May 1, Luke received a written order from Robert for 3000 miniature novelty cats at fifty cents each, which was the price listed in Luke’s catalog. The or..
|
Company issued ten year bonds
: A company has issued 10-year bonds, with a face value of $1,000,000, in $1,000 units. Interest at 8% is paid quarterly, if an investor desires to earn 12 % nominal interest (compounded quarterly) on $10,000 worth of these bonds, what would the purcha..
|
Find the slope of the feed line
: A feed mixture of ethanol and water is 40 mole % ethanol. The feed is at 200 degrees Celcius and is at a high enough pressure that it is liquid. It is input into the column through a valve, where it flashes. Column pressure is 1 kg/cm^2. Find the slo..
|
In a laser driven thermonuclear fusion reaction
: In a laser driven thermonuclear fusion reaction, a tiny pellet is imploded to super high densities for ignition. In such a reaction about 10^17 neutrons at 14 Mev will be emitted pratically instantaneously. Using the transport equation coompute the n..
|
Difference between doing inside and manager doing outside
: Note the difference between "doing inside" and manager "doing outside" "Doing inside" where managers manage projects and solve problems, and "doing outside" where managers negotiate deal and relationship and manger them overtime
|