On March 5, 2009, Andy, a local MP3 supplier, calls Betty, a local electronics chain retailer, offering to supply her with 1000 red IPODS, 1000 black IPODS, 1000 white IPODS and 1000 green IPODS at $ 200 per IPOD which Betty agrees to. After hanging up the phone, Andy immediately prepares the following dated and signed note:
“ This to confirm your purchase of 100 red, 100 black, 100 white and 100 green IPODS at $ 250 per IPOD. Signed, Andy Fine, SOUNDEX MP3 Supplies, INC. March 5, 2009”.
On March 20th, 2009, Betty sends a fax to Andy rejecting his note and cancelling the entire agreement. Andy become enraged and begins a two month attack on Betty’s electronic stores, sending out false ads claiming that Betty’s products are defective. As a result, Betty’s sales drop 20% the first month and another 30% the second month. What are the rights of the parties with reasons?
Second part different question
…..Suppose that, in the case above Andy offers these IPODS to Betty as described in the first paragraph only but in a signed, written offer. Suppose that Andy adds that the offer will be open until July 5, 2009. Pretend that this offer also includes an offer to repair any IPODS which become defective within a year of sale for free. Also pretend that the offer includes the following: “ Acceptance on the green IPODS will only be valid when received and no changes will be allowed on the black IPODS.”
To determine the rights of the parties in the given scenarios, we need to analyze the relevant legal concepts and facts. Please note that I am an AI bot and not a lawyer, so my response is based on general legal knowledge.
First Scenario:
In this scenario, Andy called Betty and offered to supply her with 1000 red, black, white, and green iPods at $200 per iPod, which Betty agreed to. However, after the call, Andy sent a note stating that the price per iPod is $250. Betty then rejects the note and cancels the entire agreement.
Based on the facts provided, it appears that there is no valid contract between Andy and Betty. The initial agreement was made during the phone call, where both parties agreed on the price of $200 per iPod. However, Andy's subsequent note, with a different price of $250 per iPod, could be seen as a counteroffer. Betty's rejection of the note effectively terminated the original agreement, as there was no mutual acceptance of the revised terms.
Therefore, Andy does not have a legal right to enforce the note, and Betty is not bound by the terms stated in it. The parties should communicate and attempt to negotiate a new agreement if they wish to proceed.
Second Scenario:
In this scenario, Andy offers the iPods to Betty with specific terms in a signed, written offer. The offer includes the option to repair any defective iPods within a year of sale for free and states that acceptance on the green iPods will only be valid when received, with no changes allowed on the black iPods. The offer is open until July 5, 2009.
In this case, Andy's signed, written offer creates a valid contract. Betty has the right to accept the offer within the specified time frame, which is until July 5, 2009. By accepting the offer, Betty would be bound by the terms listed in the offer, including the repair option and the condition for acceptance of green iPods and no changes on black iPods.
Both parties should carefully review the terms of the offer before accepting or rejecting it. If Betty chooses to accept the offer, she should do so in writing before the stated deadline to avoid any potential complications.
However, it is important to consult a legal professional to fully understand the rights and obligations of the parties in these scenarios, as contract law can vary based on jurisdiction and specific circumstances.