This Section requires to review the following Case Scenario and respond to two short answer. The written
Question:
This Section requires to review the following Case Scenario and respond to two short answer. The written responses should demonstrate the student's knowledge of both the legal principles involved in the Scenario and critical thought in applying the legal principles to the Scenario provided. Write a short answers in sentence and paragraph form to each of the following questions after reviewing and analyzing the Scenario. Scenario: Jenny was her grandfather's favorite. Upon his death, she inherited $100,000.00 and embarked on a new business venture with her inheritance. She decided to go into the apparel business and created a line of women's sportswear bearing her brand "AngelWear," named with her grandfather in mind. Sally, the owner of a local Boutique, loved Jenny's new line and encouraged Jenny to return in a few weeks when Sally would be ordering for the next season. Jenny did so and showed Sally several new pieces in addition to samples of her previously demonstrated products. Sally was thrilled to see the new pieces and indicated that she would be happy to order and dedicate significant floor space to Jenny's new line. After leaving the Boutique and returning to her office, Jenny ramped up production and sent Sally an e-mail that offered a discounted wholesale price of 70% off of the MSRP for each piece for being her first customer and advised that delivery can be made within 3 days. In a reply e-mail, Sally thanked her for her generosity and told her that she would be in touch shortly. Jenny's joy turned into
Disappointment when she did not hear from Sally for an entire week. Both ladies played phone tag for the better part of the following week, leaving general messages for one another until, frustrated by the situation, Jenny visited Sally's Boutique again. Jenny was stunned to see that the space she thought would be dedicated to her line was filled with a competitor's apparel. Sally was not present at the time and Jenny left angry at what she had seen and the significant costs she expended in ramping up the production of her new line for Sally's Boutique.
(A) Analyze the above Scenario carefully to determine if a valid, legally enforceable Contract existed (explaining all relevant, legal contract principles) and whether Jenny will be successful in a lawsuit against Sally and Sally's Boutique for breach of contract or to recover her damages otherwise?
(B) What is the doctrine of "promissory estoppel" and would the application of that doctrine afford Jenny any rights in the absence of a valid, enforceable Contract with Sally?
Auditing Cases An Interactive Learning Approach
ISBN: 9780134421827
7th Edition
Authors: Mark S Beasley, Frank A. Buckless, Steven M. Glover, Douglas F Prawitt