Question
a. Luke Lush visited Schnuck's Market to purchase a six-pack of Octoberfest Beer. He returned home to discover that one of his bottles had a
a. Luke Lush visited Schnuck's Market to purchase a six-pack of Octoberfest Beer. He returned home to discover that one of his bottles had a cap that was for "Ice House" beer, and not the Linenkuegels Octoberfest that he purchased. Upon further inspection, the beer inside the bottle was lighter in color and appeared to be a different beer. What remedies are available to Luke Lush and against whom, if anyone, may he seek those remedies. What obligations does Luke Lush have with respect to the beer?
b. Assume the same facts as above, except that Schnuck's Market discovers the incorrect bottle cap after delivery of 30 cases of the beer. They discover the defect approximately 45 days after delivery by the manufacturer, Miller Brewing Company. Approximately 10 cases of the beer have bottles with the incorrect cap. What remedies, if any, are available to Schnuck's Market against Miller? What obligations does Schnuck's have with respect to the beer?
c. In February, Pooler, a schoolteacher with no experience in running a tavern, entered into a contract to purchase for $40,000 the Punjab Tavern from Moffat. The contract was contingent upon Pooler's obtaining a five-year lease for the tavern's premises and a liquor license
from the State. Prior to the formation of the contract, Moffat had made no representations to Pooler concerning the gross income of the tavern. Approximately three months after the contract was signed, Pooler and Moffat met with an inspector from the Oregon Liquor Control Commission (OLCC) to discuss transfer of the liquor license. Moffat reported to the agent, in Pooler's presence, that the tavern's gross income figures for February, March, and April were $5,710, $4,918, and $5,009, respectively. The OLCC granted the required license, the transaction was closed, and Pooler took possession on June 10. After discovering that the tavern's income was very low and that the tavern had very few female patrons, Pooler contacted Moffat's bookkeeping service and learned that the actual gross income for those three months had been approximately $1,400 to $2,000. Will a court grant Pooler rescission of the contract? Explain why or why not.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started