Read the Hypothetical Case Problem #1 at the end of Chapter 1 and respond to these questions:
- If Javier sued Energy-Auto Inc., identify who would be the plaintiff and the defendant.
- In which state or states can the suit be brought?
- Assume that Javier incurred $100,000 in damages.
- Analyze whether the suit can be brought in federal court
- Explain the advantages and disadvantages of federal versus state court for this type of suit.
Read the Ace Heating and Cooling scenario in your text and answer the following questions:
- Under UCC 2-302, who has the best chance of getting out of the contract due to unconsionability?
- The symbol for justice features a woman wearing a blindfold illustrating that the law should be applied the same way regardless of who the parties are. Does the UCC rule seem to contradict this? Which approach do you think is more ethical?
- Note that both Glamour and Shady Rest are businesses, and courts rarely find that contracts between two businesses are unconscionable. The rationale is that a business is a sophisticated entity, familiar with transactions and able to protect itself. Do you think Glamour and Shady Rest are in a comparable position in regard to this contract? Why or why not?