INSTRUCTIONS: Submit your paper to me by email as a MS-Word attachment. Each assignment should be between 450 and 550 words. Preferred font: Times New Roman, 12 point. Be sure to proofread and spellcheck!
GRADING: Each paper will be graded on attention to instructions, persuasiveness of your argument, and thoroughness in research. The maximum points will be 25 per question. Failure to submit a paper on time will result in a zero score.
EXTRA CREDIT ASSIGNMENT – CONTRACTUAL FORMATION
Delbo, a sharp businessman, and Kipling, an equally sharp businesswoman, occasionally see each other on the ride to work on the subway. During these rides, they enjoy talking about their respective businesses. After some time, it becomes clear to both of them that Kipling produces widgets that she could profitably sell to Delbo. Delbo, unknown to Kipling, will be able to repackage and resell these widgets to one of his customers at a handsome profit (if Kipling knew about this customer, she could have sold the widgets directly). As the subway rides continue, they discuss production, colors, sizes, shipment, price, delivery dates, quantities, and other aspects of a sale of widgets by Kipling to Delbo. Their only communication is during these subway rides. Neither party ever makes an express offer to buy or sell any widgets.
One day, after having not seen Kipling for a couple of weeks, Delbo arrives at work to find a shipment of 10,000 widgets has been left on his loading dock. Checking his email, he finds an invoice from Kipling for $10,000 plus shipping costs. Delbo lets the shipment sit on his loading dock for a week, then inspects some of the widgets, finding that they exactly conform to the discussions he had with Kipling on the subway. Delbo calls up his customer, only to get a phone message announcing that a bankruptcy had been filed that morning and they were out of business.
Discuss the formation (or non-formation) of a contract between Delbo and Kipling, with emphasis on offer, acceptance, consideration and mutual assent, and things the parties could have done differently to alter the outcome of this situation.
EXTRA CREDIT ASSIGNMENT – ALTERNATE DISPUTE RESOLUTION
FACTS: Delbo was driving on University Boulevard, and got involved in an auto accident with a car driven by Luca Loser. The police report indicates that Delbo was going uphill on University Boulevard, in the left lane, and was stopped, with his left turn signal blinking, waiting at the traffic light to make the left turn into the Robert Morris Campus. When all of the oncoming traffic cleared, Delbo started his left turn. He was hit from his right by Luca’s car, coming out of the shopping center, intending to cross the Boulevard and enter the Robert Morris Campus.
Delbo told the police officer that his light was still green when he started his turn. Luca also told the officer that her light had just turned green when she commenced crossing the Boulevard. Both drivers said that they had not seen the other car. The officer also interviewed two independent witnesses, one of whom confirmed Delbo’s version, and the other confirming Luca’s.
No one was injured, but both cars were damaged beyond economical repair. Each driver wants to recover the value of his or her vehicle from the other driver.
LAW: Pennsylvania law requires that any driver in or entering an intersection must make sure that the area into which he or she is driving is clear of other vehicles before proceeding. Pennsylvania law also requires that every driver keep his or her vehicle under control sufficient to ensure it can be stopped in the assured clear distance visible to the driver.
QUESTION: Which of the alternate dispute resolution methods discussed in the textbook are available to Delbo and Luca? Discuss each possible method, pick one as the best under the circumstances, and support your selection as to why that is the best method. Keep in mind the effect of the independent witnesses on how the proceedings will be carried out.