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Big Deals Case Presentation
Transcript of Big Deals Case Presentation
cannot sue Avenue
will sue in contract (doesn't have to prove any duty of care) Avenue Cannot sue Len for breach of contract (privity)
Can sue Big Deals for breach of contract Big Deals not suing anyone
return down-payment OR replace computer Probable Court Outcome Likely Court Decision court will make big deals change contract to reflect maximum
of 5% annually
put Len back to original position (rescission)
- choose whether wants computer replaced
Void contract(get back down payment) LEN Brandon Tomash
Sebastian Aranguren Sanchez
Mohammed Ouda KHAN "I have just
what you need" most up to date technology anywhere leading edge of computer development
would be current for years to come
upgradeable when advances beyond its capabilities were finally developed, "not that Len would ever need anything better"
would run all current, most developed software what everyone is using nowadays
extremely fortunate to find one in the store that hadn't been sold yet
"better take it because they are going fast" "If you buy the package
I'll throw an answering machine at
no extra charge" extended warranty
"office" software bundle
$4,800 Deferred payment plan:
conditional sales contract
Big Deals retained security interest
until loan paid in full paid down-payment of $500
agreed to repay balance over 4 years with interest at 2% per month Khan not salesman,
just trainee, not
authorized to make
sales alone Can't help Len because earlier
that day we assigned the
conditional sales agreement
along to Avenue Finance Ltd. Points out the small print of contract:
"All sales were final"
"unless product actually defective... no warranty implied"
"Any statements made by salesperson
or otherwise that were not specifically
included within the written contract were
void and of no effect" "Out of luck" RUTH Later that week... Avenue Financial Legal Issues Goods not fit for purpose
Statement of Fact
Assignment – chose in action
Sale of Goods Act
Standard of Care
Privity of Contract (Novation)
Contract vs. Tort AFL was assigned the conditional sales agreement by Big Deals
Len was not made aware of this until he returned to Big Deals with the problems
AFL will be able to successfully sue Big Deals based on the fact that the interest rate was stated as a monthly, not annual rate.
AFL will be able to enforce Len pay his bills, if they can prove they had no prior knowledge of the issues that arose.
Novation does not apply in this case because there was no notification/agreement Avenue Finance Ltd. Vicarious Liability Khan is an employee at Big Deals
Trainee = Employee ->The control test
Khan committed negligent misrepresentation
Big Deals commits negligent misrepresentation Negligent Misrepresentation Allegation of Fact – “Most up to date technology available anywhere” – “computer would run all current software that was available”
Silence or non-disclosure - There must be some actual communication of information
False statement – The computer Len had been sold was an older model and it would require a complete removal and replacement of the mother board to run some newer software
Statement must be Inducement – Len was misled into buying that specifically equipment Contract vs. Tort Len tried to use computer...
- hard drive not big enough to load software
- unnecessary software
- didn't work Get advice from a professional and do research before making a large investment
read fine print before signing any contract
ask questions about contract that are not clear
Seek the advice of a lawyer if being sued
Know your rights as a consumer Purchased equipment for his business that he could not use
Told he no longer had contract with Big Deals- turned over to Avenue Finance
Not paying the monthly payments as per contract
Len can sue Big Deals for negligent misrepresentation
Trying to get Down payment back OR have computer replaced
Decide whether to sue in Contract or Tort Responding as a Sophisticated Client Thank You for watching Sophisticated Client - confident ( not in awe of lawyers)
- up to date (can search relevant legal terms online)