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BUSI2301 Business Law
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BUSI2301 Business Law
0 Download3 Pages / 509 Words
Course Code: BUSI 2301
University: Panola College
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Country: United States
Question:
Spotlight on Goods and Services—The Statute of Frauds. Fallsview Glatt Kosher Caterers ran a business that provided travel packages, including food, entertainment, and lectures on religious subjects, to customers during the Passover holiday at a New York resort. Willie Rosenfeld verbally agreed to pay Fallsview $24,050 for the Passover package for himself and his family. Rosenfeld did not appear at the resort and never paid the money owed. Fallsview sued Rosenfeld for breach of contract. Rosenfeld claimed that the contract was unenforceable because it was not in writing and violated the UCC’s Statute of Frauds. Is the contract valid? Explain.
1. Format of the Case
FACTS: REQUIRED-You must type the case exactly as it appears in the text. Do not edit. It’s important you understand what you are trying to resolve. Do not read between the lines. Read what the summarized case is telling you (the main points of the case—subject matter; business legal terms and concepts; etc).
ISSUE: REQUIRED-Quality is important in answering your case questions at the end of the case which is the (ISSUE) TYPE THEQUESTIONS EXACTLY AS THEY APPEAR AT THE END OF THE CASE.DECISION: REQUIRED-Type one-two sentences naming specifically the company or party that you have decided to support from the issue.LEGAL REASONS: REQUIRED-You are trying to resolve the ISSUE with legal terms and concepts THAT SUPPORT YOUR DECISION within the LEGAL REASONS. Use detailed analysis from the business law principles you learned from your textbook chapter readings to answer the (questions-ISSUE) relating to the case. You are developing an informed answer to a business law problem in answering the case questions. You can quote the text and tie the concept to the case itself–but reference IS VERY IMPORTANT–BE SURE AND TYPE THE TEXT PAGE NUMBERS THAT HELPED SUPPORT YOUR DECISION. (Minus -10 points if you do not type your text page numbers at the end or within the Legal Reasons). If you use internet sources, you must type the ‘Bibliography’ support at the end of the Legal Reasons– document what you used; otherwise, it’s plagiarism! The Legal Reasons Section is a major part of the case assignment. A heavy deduction of points would occur for a poorly written and ‘short’ analysis of the legal reasons.
2. Minimum Requirement:
One (1) full-typed page, single-spaced and follow THE GUIDELINE DIRECTIVES PAGE AND SAMPLE CASE COPY under the EXAMS & ASSIGNMENTS button online. TYPE THE ACTUAL WORDS: FACTS; ISSUE; DECISION; LEGAL REASONS.
. I need a clear understanding of your decision and support thru your analyzed legal reasons. Please use proper English such as grammar, spelling, etc. in typing the case assignment.Develop full one – two paragraphs in detail to support your answer within the LEGAL REASONS
Answer:
Facts
Spotlight on Goods and Services — The Statute of Frauds. Fallsview Glatt Kosher Caterers ran a business that provided travel packages, including food, entertainment, and lectures on religious subjects, to customers during the Passover holiday at a New York resort. Willie Rosenfeld verbally agreed to pay Fallsview $24,050 for the Passover package for himself and his family. Rosenfeld did not appear at the resort and never paid the money owed. Fallsview sued Rosenfeld for breach of contract. Rosenfeld claimed that the contract was unenforceable because it was not in writing and violated the UCC’s Statute of Frauds.
Issue
Is the contract valid?
Decision
In the given case, I would support the plaintiff of the case, Fallsview Glatt Kosher Caterers as the company had suffered a monetary loss of $24,050 despite making necessary arrangements relying on the verbal agreement entered between the plaintiff and the defendant.
Legal Reasons
The reason for which I favor the plaintiff in this case is that the verbal contract entered between the parties does render the contract as enforceable. The contention made by the defendant that in absence of a written contract, it cannot be enforced under the UCC’s Statute of Frauds is not valid. Although verbal contracts are enforceable but under UCC’s Statute of Frauds require certain types of contracts to be made in writing to make them enforceable. Such types of contract includes contracts for sale of interests in land, sale of goods for more than $500 or more, consideration of marriage, contracts of suretyship, non-performance of contract within one year (Anderson 2016).
In this case, the defendant contended that the contract entered into with the plaintiff was not in writing; hence, it cannot be enforceable under the UCC’s Statute of Frauds under Articles 2-201. The sale of goods provision is dealt with the statute under Artcile The Plaintiff had rightly contended that under the UCC’s Statute of Frauds only sale of goods only when the primary purpose of the contract is sale of goods. Now, Sale of goods above $500 or more requires to be made in writing whereas the contract entered into with the defendant was that of a service and not goods. From the facts of the case, it can be further taken into account that the $24050 worth travel package for Passover holiday included accommodations, food, entertainment, and lecture on religious subjects. The price for these activities was all-inclusive within the price of $24,050.
In addition, the fundamental nature of such Passover Holiday retreat package was to ensure a communal and family experience, which cannot be defined as goods as the activities included within the package are essentially defined as services, which are not governed by the UCC. Thus, it amounts to verbal contracts that do not fall under the category of contracts, which requires to be made in writing. Therefore, the verbal contract entered into between the plaintiff and the defendant is valid and shall be enforceable as the main purpose of the contract as not sale of goods but services.
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