Business Case: Contracts Natasha had a 5-year-old son, Klaus, who had been diagnosed by his pediatric psychiatrist with attention deficit hyperactivity disorder (ADHD). The physician tried multiple different medications and dosages with varying results to help Klaus. Some would help for a while but then stop working; some would not help at all. Frustrated after a year of medication trials, Natasha came across an advertisement for a new center called BrainTrain that promised to help children with ADHD without the use of medications. It was advertised as a privately owned \"mental exercise center\" that didn't require a physician's referral and did not employ medical staff. Also among the advertising material was the story about the founder, John Gadeaux, who overcame his own ADHD without doctors or prescriptions and how he was bringing his technique to the world. Natasha made an appointment with the center to get more information. While there. Natasha met with Mina, the director ofthe center. Mina provided numerous pamphlets touting the almost 'i 00 percent "cure" rate oftheir method. She even provided Natasha with what looked like a clinical study conducted by six independent doctors showing a 100 percent success rate for 'l 0 children completing the program. Mina said that they believed ADHD was merely a failure ofthe brain to balance the \"primitive reexes" with which we are all born. She discussed how BrainTrain would test Klaus for these reexes at the beginning of the program and again at the end of the 12-week program, and \"withouta doubt\" Natasha would see improvement. Mina also told Natasha that the program consisted of a series of exercises that would be conducted at the center and that Natasha would need to conduct at home. The exercises involved things like listening to sounds in only one ear at a time and doing sitaups. Natasha thought the methodology seemed strange but was willing to give it a shot because she was exhausted from trying other therapies. Mina asked Natasha for copies of her pay stubs because she said, \"the amount we charge for the program is dependent on each familys individual income, and we don't want any family to have to go without our services just because they couldn't afford the program ." Apply it: Contracts Total points: --f5 Attempts left: 1 The value difference between Klaus's worsened behavior at the end of the 12 weeks versus the promise to "cure\" Klaus ofADHD can be described as a measure, in part, of: ( 3 punitive damages. 2' ,3 All ofthese are correct. . compensatory damages. II I' restitution. Natasha felt uncomfortable sharing her pay stubs, but relented, and Mina told Natasha the cost to her would be $6,000 for the 127week program. Unbeknownst to Natasha, Mina actually worked on a commission, in which her salary was directly proportional to the number of clients she enrolled and at what pay rate. Natasha paid the total amount up front, and Klaus began the program the following week when the initial evaluation test of Klaus was conducted. That same week, Klaus began his twice weekly sessions at the (enter. During the rst two weeks of the program, Natasha noticed a dramatic worsening of Klaus's behavior. He became agitated, hitting other family members and destroying furniture. Natasha raised her concerns with Mina and stated that she wanted to stop the program and have her money refunded. However, Mina assured her that it was perfectly normal to see some "behavior dips" but that the program would work if she just stuck to it. Frustrated, Natasha left the BrainTrain office without saying anything else; however, she continued to take Klaus to his sessions and diligently performed his atehome exercuses. At the end of the 'IZ weeks, Klaus was re-tested. He showed no improvement from his initial scores and, in fact, had scored even worse in two areas. His teachers at school had reported that his behavior had been getting worse. and he was more frequently in trouble. Natasha also continued to see Klaus's behavior worsen at home. Again, Natasha contacted BrainTrain and demanded a full refund as the program had not only been ineffective but had seemed to make Klaus's behavior worse. BrainTrain refused. Which of the following would Natasha argue to be an appropriate remedy in this case? O Compensatory and/or punitive damages. 0 Specic performance. O injunction. O Reformation. sha fel comfortable sham pay stubs, but red, and to a told Natas the If the court finds that no valid contract existed between BrainTrain and Natasha because of a anun which her salan was diners the ber failure in the meeting of the minds, what could Natasha argue to still recover damages? Toned and a e tome gw was cor O Liquidated damages. prog m, Nata ca git ed 1goth She is not able to recover damages if there is no contract. ut that pro aw a left the air n office hou ythin e continue nd dilige pe ed at-ho Expectation damages. s ini cored even worse what school had r Restitution. nenavion 1 and he was more frequenth.. blo Natand M a told asha the If BrainTrain and Natasha had executed a written contract which contained a liquidated st to would $6 WECK POST PULL damages clause for $200 in the event that BrainTrain breached, and assuming Brain Train tually miss an with her salary as directly al to the mber admits to a breach, would that clause be upheld in court? d N jount progra me to e WH ne initial ex AUS W2 eek, Klau 6 hi tw ekly S- progr ata Yes, it was mutually agreed upon by both parties. rama bec le tate m m ers d d Irel at na a th she Have wever, M a d H O No, the amount is too low for the type of harm she suffered. tha ork sh ge sessions an rm d his me Yes, it is reasonable and fair. the wd He sho pvement from is , had Te No, in this case, actual damages can be easily determined. ntly in to uble Atag vlou's by Brain and manded a fun en inen-- ad seer use In this case, what (if anything) could Natasha have done to mitigate her monetary damages after paying for the program?taDic wearing her pay stubs, but relent st to he Guld told Nata to Natask In this case, what (if anything) could Natasha have done to mitigate her monetary damages or tional to the num after paying for the program? clier she enro ash tal OW Juatio ucted Same wee She could have insisted more strongly on a refund. ac worsenin us's behavi La that the nde er, a ass d her O She could have continued to seek the right medication for Klaus. wou ork if she without sa g any g else ho TUIT big ome Nothing. ex At nd rove initia SC eporte She could have taken Klaus to another program. th en gett worse. lash al aus's behavior. am