Business Ethics

o Foodmart contracted with Masterpiece Construction to renovate the store on Main Street in My Town. Masterpiece, unable to complete the renovation within the 6-month time limit due to an increase in new contracts, subcontracted the job to Build Them to Fall Construction. Foodmart was unaware of the subcontract. When Foodmart realized, due to the poor quality of work, that Build was handling the renovation, Foodmart petitioned the court for an injunction and sued Masterpiece for breach of contract and specific performance. Masterpiece argued that it had a right to delegate the duties of the contract, or to discharge the contract due to commercial impracticability. Do they have that right? Who wins? Explain your answer. In addition, summarize the legal defenses to contract formation and enforcement.

In this scenario assuming in the contract that it stated no subcontracting could take place, Masterpiece had the right to pass the duties on to another organization via subcontract. This is a common occurrence among renovation based companies. They often pass duties on in order to keep pass with other work and make sure all aspects are done and done properly by organization that specialize in certain aspects of renovation or construction. Masterpiece construction in this case still remains the main contractor and is responsible if the poor quality of work is a problem for Foodmart. However, they can’t be in trouble for subcontracting the work.

o At the end of the summer, Jeremy Atwater earned enough money to put a down payment on a car. He decides to continue working part-time during school to earn money for the car payments. Jeremy purchased a car from Smooth Sales Used Cars. Smooth did not ask Jeremy how old he was; the salesman assumed he reached the age of majority. Jeremy paid the down payment and signed a contract stating that he would make payments of $200 each month. Six months later, Jeremy lost his job and could no longer make the payments. Jeremy took the car to Smooth and said he wanted to cancel the contract, and that he wanted his money back. What are the 2-3 possible outcomes? In addition, compare and contrast potential legal and equitable remedies.

There are various outcomes of this Scenario. The first is that Jeremy is off the hook because the contract

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