Question
Sally is a merchant in the business of making fine guitars, which are sold to retail dealers at wholesale prices through an online catalog. Bonny
Sally is a merchant in the business of making fine guitars, which are sold to retail dealers at wholesale prices through an online catalog. Bonny is a merchant who owns a retail music store that sells numerous brands of various stringed instruments. Bonny after consuming plenty of alcohol, emailed Sally asking that ten A model guitars be delivered to Bonny at the wholesale price of $5,000 each as listed in the catalog. The next day, Sally emailed an invoice for $50,000, stating (i) that delivery would be made within 14 days, (ii) that any complaints about the condition or quality of the guitars, and/or return requests, must be made within 10 days of delivery, and (iii) that payment is due on delivery. Those three provisions are customary in the musical instrument industry. Bonny received the invoice, but did not respond. The guitars were delivered to Bonny 11 days later, but Bonny sent no payment to Seller. Two weeks after the instruments were delivered, after having had several customers buy other guitars instead of the Model A, Bonny sent an email to Sally stating, "These guitars do not satisfy my customers' needs. Therefore I am not paying for them. I am returning them at my expense." Sallysued Bonnyfor breach of contract. What arguments will Sallymake in support of her claim; what defenses will Bonnyassert; and what is the likely outcome, including what remedies, if any, can Sallyexpect if her claim succeeds? Discuss.
One of Bonny's customers, Don, was injured while trying to play the guitar. He has hired an expert who claims that the guitar was flawed by design and this caused the Don's injury. In addition the expert claims that the guitar lacked any warning signs or instructions about the use of product. What arguments can Don make against Sally and Bonny? Who should be sue and under what theory?
Don reached out to Liz, one of Bonny's agents. An argument ensued about who was at fault regarding the guitar injury. Liz works for Bonny fulltime and has been employed for five years. She receives a salary. She does not have any other employment. During the argument Liz became furious and asked Don to leave the office. When Don refused to leave, she shut the door in his face causing Don a nose fracture. Can Don successfully bring a lawsuit against Liz and Bonny? Explain theory of case as to each party.
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