Task$-$Based Simulation

Unit Four

Task$-$Based Simulation

Green Dollar, LLC$,$ owns and operates retail stores that feature bargain$-$priced goods for budget. minded consumers.

The Formation of Sales and Lease Contracts. Green Dollar decides to install solar panels on the roof of one of its stores as part of a new heating, air conditioning, and ventilating system, The company orders Sun Bright brand panels from Intra Air, Inc. The pure, over the pf the panels is $$3\mathrm{.}50$ per watt. Representatives of Green Dollar and Intra Air will pay for them whe, that the seller will deliver the panels within two weeks and the buyermation of the order fhin thirty days of delivery. The next day, Green Dollar receives a confirmatiols can be obfrom Intra Air. Two weeks later, Green Dollar learns that the Sun Bright pared the panels. Gined from a different vendor at $$2\mathrm{.}70$ per watt. Intra Air has not yet detires to enforce thereen Dollar asks if it can cancel the order. Intra Air responds that it inten why not? contract. Is the contract enforceable against Green Dollar? Why or why not?

Title, Risk, and Insurable Interest. To transfer merchandise between stores, Green Dollar leases a truck and trailer owned by National Rental Corporation. Under a "Risk of Loss" provision in the lease, Green Dollar is obligated $"$to bear the entire risk of loss and damage to the leased equipment" and $"$to pay the lessor for irreparably damaged equipment or replace it$."$ The leased truck and trailer are destroyed in a collision caused by Overland Trucking Company. To fulfill its obligation, Green Dollar files a suit against Overland to recover the value of National Rental's destroyed truck and trailer. Overland argues that Green Dollar does not have standing to pursue a claim involving damage to a truck and trailer it did not own. Is Green Dollar entitled to maintain the action against Overland? Who suffers the financial loss from the collision? Discuss.

Performance and Breach of Sales and Lease Contracts. Green Dollar orders a shipment of breakfast cereals from Grocers Distribution Company for its bargain food markets in Los Angeles. The products are to be specially packaged to meet Green Dollar's pricing policieslesser quantities in smaller containers to be offered at lower$-$than$-$standard prices. The delivery is agreed to be $"$F$.$O$.$B$.$ Green Dollar warehouse, Los Angeles by May $7."$ Lacking enough products to fill Green Dollar's entire request, Grocers Distribution ships some of the specified goods and fills the rest of the order with cereals in standard packaging with standard prices. The delivery takes place on April $30.$ Can Green Dollar reject the shipment? What are the rights of Grocers Distribution in this situation? Explain.

Warranties. Steven Chao buys a Toolkit brand hammer at a Green Dollar store. On the label, beneath the Toolkit logo and the identification of the tool as a hammer, are instructions for its use and other information$-$including, in inconspicuous type, a provision disclaiming all implied warranties. The first time Chao uses the hammer, the handle breaks. The detached head flies off the tool and hits and injures Chao. Green Dollar is notified the next day. An examination reveals that the wood in the handle is rotten. Neither Green Dollar nor Chao could have known that the wood was rotten at the time of the sale. Can Green Dollar be held liable to Chao for breach of warranty? Why or why not?

International Law. To offer goods at low prices, Green Dollar reduces its costs by obtaining products made, distributed, and shipped by companies located in other countries. Because of developments affecting the global economy, the prices that Green Dollar's sources charge the U$.$S$.$ retailer are increasing. Green Dollar wants to take steps to reduce those expenses. Also, as the economies in other nations grow, Green Dollar is interested in expanding its retail operations into those markets. What are Green Dollar's options for attaining these goals? What are the characteristics of each of these choices?