Legal Environment Of Business Exam 2 Instructions Answer Any
Legal Environment Of Businessexam 2instructions Answer Any Two Quest
Answer any two questions with a short answer NOT to exceed four sentences in length. The remaining two questions require a well-developed essay, including an introduction, body, and conclusion. Use only the specified textbook, "Legal Environment of Business: A Managerial Approach: Theory to Practice, 2nd Edition" (McGraw-Hill Higher Education). Do not use internet sources. Proper APA or MLA citations must be used.
Paper For Above instruction
Introduction
The Legal Environment of Business encompasses key legal principles that shape business interactions, ensuring fairness, enforceability, and protection of stakeholders’ rights. This essay addresses four critical scenarios involving contract enforceability, breach, and validity within a business context. The analysis applies legal concepts as outlined in the specified textbook to determine enforceability and legal outcomes. Each scenario reflects core legal doctrines that influence contractual relationships and business transactions.
Scenario 1: Enforceability of the Sons’ Promises
The sons’ promises to the hospital are likely enforceable under the doctrine of promissory estoppel. Despite the absence of a formal contract, the sons expressly authorized treatment and assured payment, which the hospital reasonably relied upon. According to legal principles outlined in the textbook, such reliance creates an obligation to prevent injustice by enforcing the promise (McGraw-Hill, 2nd Edition). Therefore, the hospital can recover the unpaid bills from the sons based on their assurances and the reliance induced.
Scenario 2: Discharge of Duty Due to Sam’s Death
Metal’s argument that their duty was discharged upon Sam’s death is not entirely correct. Generally, a contract dependent on a specific individual’s skill or expertise is considered personal, and death can discharge the contractual obligation (McGraw-Hill, 2nd Edition). However, if the contract explicitly stipulated that performance was tied solely to Sam’s design capabilities, the duty would be excused. In this case, if the contract was based on Sam’s unique contribution, Metal may be discharged from performance; otherwise, they might still be liable.
Scenario 3: Law of Promissory Estoppel and Contract Formation
McCarthy’s successful persuasion of the media to report Washington as a communist constitutes sufficient reliance and a definite promise by Anthony (McGraw-Hill, 2nd Edition). Assuming McCarthy acted reasonably and the promise induced the reliance, the principles of promissory estoppel would uphold the claim, requiring Anthony to pay the $10,000. Since the promise was clear, and McCarthy’s reliance was justified, the court would likely enforce the promise to prevent injustice. The fact that Washington was not a communist does not affect the enforceability of the promise.
Scenario 4: Validity of the Sale of Greenacre
The sale of Greenacre for $5,000, significantly below its market value, raises questions about the validity of the contract due to potential undue influence or incapacity. Joan, being bedridden and dependent on Al, suggests a possible lack of voluntary consent (McGraw-Hill, 2nd Edition). If the sale was made under duress, undue influence, or without proper understanding, it could be challenged in court. Therefore, the sale’s validity depends on whether Joan had the legal capacity and freely consented to the transfer.
Conclusion
The various scenarios highlight critical legal principles such as promissory estoppel, personal service contracts, reliance, and capacity. Courts tend to enforce promises made with reasonable reliance and protect parties from undue influence or incapacity. Proper application of the law ensures justice and predictability in business transactions, as demonstrated in each scenario.
References
McGraw-Hill Higher Education. (2nd Ed.). (Year). Legal Environment of Business: A Managerial Approach: Theory to Practice.