Business Law

Business Law

Assignment

Sweet Things, Inc. (STI) is a 50 year old family business in Pasadena that provides premium chocolate pieces made fresh in its kitchen. Unique in the possible shapes that can reflect the occasion/festival people need it for. It’s a very popular store.

STI believed that the important factor in the taste is the Grade A sugar supplied by Maui Mihiko Company (MMC), with whom STI had a contract for monthly delivery of 3000 pounds @ $4 a pound. Since 2000, the contract has been renewed every 5 years, and the price and weight have remained same.

For approximately four months starting June 2013, the MMC office in Los Angeles has been sending STI notice of bad harvests that may force an adjustment in deliveries and prices. On November 30, 2013, instead of shipping the regular 3000 pounds @ $4 per pound, MMC delivered 2000 pounds with Invoice for $10,000 plus the usual shipping fee of $100, and a Note explaining the adjustment in delivery. After negotiations broke down, STI sued MCC in June 2014 for breach of contract, and won.

Instructions and Rubrics:
1) For each claim, give the rule of law used by the Parties.
2) Show exact calculations for the amounts argued. Do not just give “a number”.

Claim One: $6,000 plus $1,200 shipping fee
When MMC did not deliver the 1000 pound of sugar, STI had to scramble to find more sugar as the holiday season of December is prime time for sale of chocolates. On December 20, 2013, STI managed to buy Grade B sugar 1000 pounds @ $6 per pound from Philippines and had it flown express air to its store in Pasadena.

Plaintiff Case:

Defendant Case:

Plaintiff Challenge:

Judgment:

Claim Two: $16,000

From the 1000 pounds of sugar, STI created 3000 pieces of chocolates: 400 pieces in the shape of Star of David; 400 in the shape of a Cross; 400 in the shape of the Three Wise Men; 400 in the shape of Christmas Trees; and 400 in the shape of a Silver Bell. STI put them on sale from December 23 at the price of $8 per piece. By January 5, 2014, STI did not sell a single piece.

Plaintiff Case:

Defendant Case:

Plaintiff Challenge:

Judgment:

Claim Three: $1,575,000

Before December 2013, during the months when consumption of chocolates is high – New Year´s Eve, Valentine Day, Easter, Graduation, and June (favorite month for Spring weddings) – STI revenue on chocolate pieces would be at least $63,000 that month. After December 2013, a few loyal customers have told STI how disappointed they were at the quality of the December chocolates and that “they will never buy anything from STI again”, and that they would tell their friends not to buy as well.

Plaintiff Case:

Defendant Case:

Judgment:

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