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Bill believes that most customers will simply sign the contract without reading it, as most customers tend to do. However, Bill intends to raise the
Bill believes that most customers will simply sign the contract without reading it, as most customers tend to do. However, Bill intends to raise the monthly price by $5 every 3 months for existing customers, i.e. new customers will still sign up at $30 per month and then receive the increases every three months thereafter, like other existing customers. Virgo's Production manager Jack Hammer then raises an issue with the group. He says that just over a month ago he had signed a contract with a local business Case Management to manufacture 100,000 protective cases for the Eyephone for $1 million. However, Jack had requested delivery of 100,000 cases no later than 3pm, yesterday and the contract had stated, as do all Virgo's contracts, that time is \"of the essence\". Jack had also stipulated in the contract that the cases be made out of Elastiform plastic because he has shares in the company that makes this brand of plastic. Case Management had delivered the cases at 4pm yesterday, an hour late, together with a bill for the $1 million. Jack had briefly inspected the delivery and had noticed that the cases were made out of a generic plastic similar in look and function to Elastiform. Further, one of the boxes of cases had a hole in it and about 3 cases were missing. Jack wants to reject the entire delivery because it was late, was less than the ordered amount of cases and Elastiform was not used. The meeting then closes and CEO Dick Tate asks you to think about everything that was discussed and to provide him with a memo outlining your response to 3 questions that he has below. Your task is to write ONE memo/report to CEO Dick Tate outlining your response to the following questions posed by him: 1) Whether or not the use of the name 'EyePhone' and the fact that it looks similar to an Apple iPhone may constitute misleading and deceptive conduct; 10 Marks 2) Whether or not the new standard contract terms may be classed as unfair contract terms pursuant to legislation); 10 Marks 3) Whether or not, with reference only to performance, Virgo has to accept and pay for the cases from Just in Case. 10 Marks Bill believes that most customers will simply sign the contract without reading it, as most customers tend to do. However, Bill intends to raise the monthly price by S5 every 3 months for existing customers, i.e. new customers will still sign up at $30 per month and then receive the increases every three months thereafter, like other existing customers. Virgo's Production manager Jack Hammer then raises an issue with the group. He says that just over a month ago he had signed a contract with a local business Case Management to manufacture 100,000 protective cases for the Eyephone for $1 million. However, Jack had requested delivery of 100,000 cases no later than 3pm, yesterday and the contract had stated, as do all Virgo's contracts, that time is \"of the essence\". Jack had also stipulated in the contract that the cases be made out of Elastiform plastic because he has shares in the company that makes this brand of plastic. Case Management had delivered the cases at 4pm yesterday, an hour late, together with a bill for the $1 million. Jack had briefly inspected the delivery and had noticed that the cases were made out of a generic plastic similar in look and function to Elastiform. Further, one of the boxes of cases had a hole in it and about 3 cases were missing. Jack wants to reject the entire delivery because it was late, was less than the ordered amount of cases and Elastiform was not used. The meeting then closes and CEO Dick Tate asks you to think about everything that was discussed and to provide him with a memo outlining your response to 3 questions that he has below. Your task is to write ONE memo/report to CEO Dick Tate outlining your response to the following questions posed by him: 1) Whether or not the use of the name 'EyePhone' and the fact that it looks similar to an Apple iPhone may constitute misleading and deceptive conduct; 10 Marks 2) Whether or not the new standard contract terms may be classed as unfair contract terms pursuant to legislation); 10 Marks 3) Whether or not, with reference only to performance, Virgo has to accept and pay for the cases from Just in Case. 10 Marks
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