Mini-Case Problem # 1 - Crying over spilled Coffee

Stephen entered a Great Buy store and bought an expensive coffee-maker on sale.The coffee-maker was advertised as an "end-of line" and "all sales final" deal.After Stephen began to use the coffee-maker, he found that it leaked constantly.It sent the vast majority of the coffee all over the countertop requiring expensive wipe up every time it was used.

Questions:

1.Has Great Buy breached the terms of its contract with Stephen?Why or why not?

2.Assuming Great Buy did breach the contract for the moment, what kind of breach

is it and why that kind of breach as opposed to another kind?

Case Problem # 2 - Temperamental Actors

Valentino signed a written contract with TV Production Co. whereby he was to be paid $20,000 for the lead role in a TV play.The contract terms required Valentino to work exclusively on the play for four weeks until shooting was completed. Shooting was scheduled to start seven days after he signed the contract.Three days after signing the contract, Valentino told the TV Production Co. he did not wish to do the role and they should find someone else as the lead.

TV Production Co. conducted an exhaustive search for a substitute actor for the role, but were unsuccessful and had to cancel the production.The company had spent $55,000 on production up to the point when they could not find another lead and estimated that the production would have produced a net profit of $125,000 after expenses.

Questions:

1.What kind of breach of contract has Valentino committed and why?

2.What amount of damages would a court likely order Valentino to pay to TV

Production Co. and why that amount?

3.What risk management strategy should TV Production Co. employ to avoid this sort of problem in the future?Why that strategy as opposed to the others?

Case # 3 - A Buggy Situation

Malcolm Tea Merchants Inc. ("Malcolm") entered into a contract with the Maple Leaf Tea Co. ("Maple Leaf"). Under the contract, Maple Leaf bought 400 wooden crates of tea from Malcolm which shipped them in from India.Upon Maple Leaf receiving the shipment, they found the tea crates had insects in the wood, but not in the tea itself which was sealed in bags inside the crates.Maple Leaf advised Malcolm that it would refuse to accept any more shipments infested with insects.

A month later, Maple Leaf entered a second contract with Malcolm for a further 400 wooden crates of tea.Upon arrival, Maple Leaf personnel examined the crates of tea.They found evidence that insects had been in the wood, but no insects were actually found.Maple Leaf rejected the shipment and refused to pay for it.Malcolm then sued Maple Leaf for the purchase price of the shipment plus interest and costs.

1.What defence to the claim of Malcolm for payment might Maple Leaf raise under contract law?Be specific.

2.Would such a defence likely succeed on the facts?Why or why not?

Case # 4 - A Sticky Situation

Andrew was hired by Mac's Milk under an oral contract to install window signs and decals for special events such as the Super Bowl.He was given one half hour of training and supplied with a squeegee and a large flat tray for hold water and paste.He was to be paid a fixed amount for each store in which he installed signs or decals.Provided the work got done within a couple of days of when it was supposed to, he was not required to be at a specific Mac's Milk at a specific date and time to install window signs or decals.Andrew used his own car to drive from store to store to do the work.

In early November, Andrew was at the Mac's Milk store on Airport Road in Mississauga putting up decals for the upcoming Grey Cup.The store was very close to the road where there was a sewer drain.Andrew, not paying attention, opened the store door and lobed the contents of the tray (paste and water) towards the drain.Walking towards the door at the time was Conrad in his brand new Hugo Boss dark blue suit.The water and paste splashed all over Conrad's suit jacket and pants. Conrad immediately took the suit to Penguin Drycleaners, but they could not get the stains out and the suit was ruined.Conrad had paid $1,800 for the suit and now claims that Mac's Milk is legally responsible for Andrew's actions.

Questions:

1.What defence could Mac's Milk raise to try to avoid being responsible for Andrew's actions and the resulting damages suffered by Conrad?Be specific.

2.What facts would help Mac's Milk in its defence and why?

Case # 5 - No Respect at All

At a public meeting called by the town council to look at installing a new sewer system, an upset taxpayer named Kilmer repeatedly took to the public microphone to question councilors in detail.The packed audience was enjoying Kilmer putting the councilors on the spot, but a frustrated councilor upset with Kilmer's domination of the meeting said in a loud voice, "Kilmer, you are an idiot.In fact, you come from a long line of idiots.Can't

you see we are at the early stages and don't have all the answers yet?"Kilmer was embarrassed and immediately left the room.

Questions:

1.What intentional tort might Kilmer sue the councilor for?What facts support such a claim and why?

2.What, if any, defence could the councilor raise if Kilmer sues him?Will it likely be successful?Why or why not?