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Pay-Mart, Inc. (Pay-Mart) is a publicly traded corporation, which owns and operates retail general merchandise stores in Texas. Doug Cox is a salesman for CleanAll

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Pay-Mart, Inc. ("Pay-Mart") is a publicly traded corporation, which owns and operates retail general merchandise stores in Texas. Doug Cox is a salesman for CleanAll Products ("CleanAll") and Karalee Williams is the sales person for PrevenDust, Inc. ("PrevenDust"). Both companies manufacture and sell aerosol dust remover products for the consumer market; sold through big box retailers. Pay-Mart, Inc. recently decided to shrink its product offerings to increase efficiency in its supply chain. The goal would be to offer only one product in each product category. Both Doug and Karalee were competing in an effort to obtain the exclusive right to provide their aerosol dusting products to Pay- Mart. Pay-Mart had a very strict product acceptance policy. Their store slogan (and corporate philosophy) was "Lower Prices, Higher Quality!" In order to be awarded the exclusive rights to offer a product in Pay- Mart, the vendor had to submit their product for testing by Pay-Mart's product review board and pledge to offer the lowest price in their industry. Both CleanAll and PrevenDust submitted products for testing and it quickly became clear that CleanAll was the unquestioned winner in terms of quality; its spray nozzle clogged less, its coverage was superior, the product was less susceptible to temperature changes, it ran less and the contents of a single can lasted longer. In short, it was the better product, and Pay- Mart told both Doug and Karalee so. As to price, CleanAll was slightly more expensive, but Doug told Pay-Mart that he would "go to corporate to get the price down, which should not be a problem." On Friday, April 8 th, Pay-Mart told Doug and Karalee that it would award the contract to CleanAll in a week if PrevenDust could not submit a better product by then. Pay-Mart told them that they would immediately stock CleanAll in one of their stores, Pay-Mart #24 in Abilene, Texas, for the week to see how the product would be received. Doug was elated and delivered the first shipment of product to Pay-Mart #24 himself on Saturday, April 9th . He stocked the shelves with CleanAll dust remover, but forgot to put up the signs that were included in the shipment, which looked like this: Karalee was dejected. This was the 11th contract she had lost to CleanAll and Doug Cox. She was getting tired of losing.On Sunday, April 10, Karalee went into Pay-Mart #24 and purchased a hand towel and cans of CleanAll aerosol dust remover. On her second visit that day, she had soiled herself but proceeded to buy more cans of CleanAll aerosol dust remover and hand towels and told the checkout employee that she had had a seizure in the parking lot. On Williams's third visit the next morning, she entered the store naked from the waist down. Several Pay-Mart employees noticed her condition and communicated this to other employees. During that third visit, Pay-Mart employees gave Karalee a bath towel and a "sundress." After receiving these items Karalee purchased more cans of CleanAll aerosol dust remover and another hand towel. During each of Karalee's subsequent visits to Pay Mart she bought more cans of CleanAll aerosol dust remover and more hand towels. 3 Early Tuesday morning, April 12, Karalee died in the parking lot from the effects of inhaling aerosol dust remover, a process called "dusting," but her body was not discovered until the next day. (Dusting is a form of inhalant abuse whereby the user sprays an aerosolized household cleaning agent into a bag or cloth and inhales the fumes to attain a "high.")On Wednesday, April 13, Karalee was found dead in her car in the parking lot of Pay Mart Store #24. After an autopsy, the medical examiner ruled that her death resulted from inhaling a large quantity of aerosol dust remover. (Karalee entered Pay-Mart Store #24 on nine different occasions over the course of twenty-seven (27) hours, each time purchasing cans of CleanAll aerosol dust remover. She purchased at least sixty (60) cans of CleanAll aerosol dust remover over that period.) With the shocking news of Karalee's death in their parking lot, Pay-Mart decided to exclude aerosol dust remover from their product offerings and called Doug, informing him that CleanAll would not be awarded the exclusive contract. Doug was now depressed. The contract was expected to bring CleanAll $1.5M a year, which would have garnered Doug a commission of $150,000 this year. Karalee's mother, Kortney Kashman, has now sued Pay-Mart on Kortney's behalf for negligence with regards to Karalee's death and CleanAll is considering suing PrevenDust for the loss of the income they would have received from becoming the exclusive provider of aerosol dust remover for Pay-Mart. Question 1: In Kortney Kashman's action against Pay-Mart, discuss all standards of care that the plaintiff would argue may apply to Pay-Mart and the arguments the defendant would argue against the applicability of each. Please state which arguments you believe would prevail. Do not discuss the elements of proximate cause or injury. Question 2: Would CleanAll prevail in a suit against PrevenDust for Tortious Interference with a Prospective Economic Advantage? Please present arguments for both the Plaintiff and Defendant and state an answer to the question. [NOTE TO STUDENT: You may ASSUME, without further analysis, that PrevenDust would be responsible for the actions of their employee, Karalee Williams

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