Jon agrees to sell 5,000 units of vitamins to Dany. Dany operates a retail grocery store and
Question:
Jon agrees to sell 5,000 units of vitamins to Dany. Dany operates a retail grocery store and intends to sell the vitamins in her store. Jon doesn’t have any experience in medicine or chemistry and he just started making the vitamins using a formula he learned from a friend who is a chemist up North. This is Jon’s first sale; he is trying to get into the business of selling vitamins so he can quit his full time job as a security officer. The contract calls for the vitamins to be shipped from Jon’s warehouse directly to Dany’s store by December 1st. Dany agrees to pay for the vitamins when they arrive at her store. Jon ships out the vitamins on November 15th. On November 19th, engineers for the railroad Jon uses to ship the vitamins go on strike. Jon notifies Dany of the strike, but she does not respond to his message. The strike ends and the vitamins finally arrive on December 2nd. Dany takes a look at the vitamins and decides she will keep them and she pays Jon. Dany notices that Jon has put what she believes to be an unnecessary warning on the vitamins that the vitamins should not be taken by people with high blood pressure. She thinks the warning will discourage people from buying the vitamins, so she removes it from all of the bottles of vitamins. She then begins to sell the vitamins but several customers, who have high blood pressure, get seriously ill from taking them. The customers sue Dany for damages on December 20th. On December 21st, Dany contacts Jon and informs him that she has changed her mind and no longer wants the vitamins and wants her money back because the goods did not arrive on time.
Discuss and analyze all relevant legal issues raised by this hypothetical scenario.
Cost Management Measuring, Monitoring and Motivating Performance
ISBN: 978-1119185697
3rd Canadian edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott, Liang-Hsuan Chen, Gail Cook