IRAC-Case analysis for problem # 2 and 3

Issue(s) - These issues are questions one might ask regarding how the law applies to the problem.

Rules What are the laws/rules that you think may apply to the issues.

Analysis This is where the writer either proves or disproves the application of the

rules. This is a major focus of the paper.critical thinking must be applied.

Conclusion What do you think needs to be done, and why.

submitted the lowest condition and under the project." Notated that he felt eet budget. If this is bring it within budget. Waters The next day he retasequently, Wadswort X. Chapter Problems 1. The city of St. George, Utah requested bids on an airport construction project. Wadsworth Construction submitted the lowest responsible bid. The city council moved "to award the bid ... to Wadsworth Construction with the condition and understanding we can negotiate down to a price wherein we can meet budget. If this is not acceptable, rebid the project." Nothing was signed. The city cut $100,000 from the project price to bring it within budget. Wadsworth stated that he felt confident he could do the reduction, but was not prepared to discuss specifics. The next day he returned with a proposal, but the parties never reached an agreement regarding reduction of the price. Subsequently, Wadsworth claimed it had a contract for the project, which the city breached by rebidding it. The city claims no contract ever existed. Who wins and why? 2. Douglas County sought bids for a construction project. Robert Taggart wanted to submit a bid but knew the project needed rock. He talked with one of the owners of a rock source and was told the rock was for sale but the price could not be determined until the other owner was consulted. Taggart prepared an incomplete bid, told his bookkeeper to get the rock price and complete the bid. Taggart left on vacation. The bookkeeper did so and submitted the bid. The bids were opened. Taggart's bid was the lowest, but it was learned later that day that the rock was no longer for sale. The next day the bookkeeper delivered a written bid withdrawal to the county. The county subsequently awarded the contract to Taggart. Is there a contract and why? 3. Oscar Mayer ordered sausage casings from Union Carbide's Chicago plant. Union Carbide charged the Chicago sales tax, which Oscar Mayer paid. Because of competition, Union Carbide instructed Oscar Mayer to send its orders to an office outside Chicago, thereby saving Oscar Mayer the expense of paying the local tax and keeping it as a customer. Eight years later, tax authorities decided the taxes were due and assessed Union Carbide $88,000 in back taxes and $55,000 in interest. Union Carbide paid, and then sued Oscar Mayer, claiming Oscar Mayer had agreed to indemnify it for all sales tax liability. It relied on a provision printed on the back of its invoices sent to Oscar Mayer that the "buyer shall pay seller the amount of all governmental taxes ... that seller may be required to pay with respect to the ... sale ... Oscar Mayer claims it never agreed to this provision. When Oscar Mayer needed casings, it would phone Union Carbide and they would be shipped the next day. After the casings arrived, Oscar Mayer would send Union Carbide a standard purchase order (offer) for the shipment. About the same time, Union Carbide would send Oscar Mayer an invoice (acceptance) for the shipment, which contained the indemnity clause on the back of the invoice. Union Carbide claims Oscar Mayer is bound by the indemnity clause. Who wins and why