Question
David owns a carpet retail store; David's Carpet Store. Denise has a written enforceable employment contract with David whereby Denise promises to work for David
David owns a carpet retail store; David's Carpet Store. Denise has a written enforceable employment contract with David whereby Denise promises to work for David installing carpeting for him for a period of five years, beginning on January 1, 2020, for 5% of the net profits from David's carpet business. On January 1, 2021, Peter comes to David's store and orders carpeting for the living room at his home. David calculates that the job will cost $5,000 ($3,000 for the carpeting and $2,000 for the installation). Unfortunately, Peter cannot afford to pay all of this sum in cash. Peter and David agree that Peter will pay $1,000 upon installation of the carpet and the remaining $4,000 on March 1 2021 On February 15, 2021, the carpet is installed by Denise. Upon installation of the carpet, Peter pays David the agreed upon $1,000 partial payment for the carpeting. David then gives Peter a document which Peter does not read but to which he signs his name indicating acceptance of the terms contained therein. This document includes the following relevant language: "1. All warranties, express or implied, including the implied warranties of title, MERCHANTABILITY and fitness for a particular purpose are hereby expressly disclaimed! 2. Owner of carpeting after installation promises to hold harmless installer, David's Carpet Store its owners, employees and agents from any and all liability for any injuries, either personal or mental, pursuant to any allegation of negligence for the improper installation of the carpet ........ 22. If the color of the carpeting fades within one month David's Carpet Store will replace the carpeting at it's cost and risk." Unfortunately, Peter discovers on March 2, 2021 that Denise used the improper glue installing the carpeting and the carpeting is becoming unstuck from the floor and tearing in spots. Peter immediately complains to David about the problem. On March 10, 2021, David inspects the problem and admits that Denise used the improper glue on the carpet. David promises to fix the problem but never does. On March 15, 2021, Denise goes to Peter and demands payment of the remaining $4,000. Peter refuses saying that Denise never installed the carpeting correctly and demands that David fix the problem before Peter will pay the remaining $4,000. As Peter is throwing Denise out of his house, Peter trips on a tear in the rug caused by Denise's use of the improper glue and falls breaking his arm. Denise feels awful about Peter's injuries and makes an oral promise to Peter that she will pay all of Peter;s medical bills associated with this injury. Then, Denise decides that the stress of the job is too much for her and she no longer wants to be employed at all so she informs David that she quits. David is desperate for help and demands that Denise complete her agreed upon 5 year contract QUESTIONS REFER TO UCC SECTIONS WHERE APPROPRIATE 1. Discuss whether David successfully require Denise to complete the remainder of her employment agreement with David and physically have her return to work for David's business? 2. Discuss whether David breached any enforceable warranties to Peter in the sale and installation of the carpeting? 3. Discuss whether Peter can successfully sue David for his broken arm or is he barred by Claus #2 in the document provided to Peter by David on February 15, 2021? 4. Discuss whether Denise can be legally held to her promise to pay Peter's medical bills, if she changes her mind and now cannot afford to pay Peter's medical bills?
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