...Case Scenario: Big Time Toy Maker 1. At what point, if ever, did the parties have a contract? Our textbook defines a contract as “a promise or a set of promises enforceable by law” (). A contract does not necesarily has to be in writing. A contract can be oral and enforceable. Big Time Toymaker and Chou took part in an oral contract. Big Time Toy Maker and Chou held a meeting where an oral distribution agreement was reached. In addition, Big Time Toy sent an email to Chou confirming the agreement. 2. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? The facts that may weigh in favor of Chow are the exclusive negotiation rights for a 90-day period, the oral agreement that was reached at the meeting and the email he received from Big Time Toy. The facts against Chou would be that there is never an actual written agreement drafted by Chou. In addition, the exclusive negotiation rights agreement stipulated that no distribution contract existed unless it was in writing. Finally, no written agreement was turned in within the original 90-day period stipulated in the exclusive negotiation right agreement. 3. Does the fact that the parties were communicating by e-mail have any impact on your analysis in Questions 1 and 2 (above)? Yes, because the email represents the acknowledgment by both parties of the distribution agreement made in the meeting despite the e-mail failing to mention the word “contract.” In addition...
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...Big Time Toymaker Ronda Bonny LAW/421 AUGUST 13, 2012 JAMES ZACCARIA Big Time Toymaker 1. At what point, if ever, did the parties have a contract? After reading the case scenario, I do not believe either of the two parties involved ever established a binding distribution contract. It is true an oral distribution agreement was achieved just three days prior to the 90-day deadline, which was a condition established in the original negotiating contract. However, as clearly stated in the original negotiating contract, there is not to be a distribution agreement, or contract, unless it is in writing. After the meeting, Chou volunteered to draft the distribution contract that would formalize their agreement. However, before Chou could finish the draft, he received an e-mail from the BTT manager. The e-mail with the subject line “Strat Deal,” focused on the key points of the distribution agreement between both parties, including the price, time frames, and obligations of both parties. After receiving this e-mail, Chou incorrectly assumed that BTT wanted to draft the contract. Thus Chou stopped working on the draft and a month passed by. This passage of time voided any previous agreement because of the 90-day clause to finalize the contract. What BTT and Chou had was not a binding or enforceable contract. 2. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? The facts that prove there was no binding distribution contract...
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...Big Time Toymaker (BTT) is a toy company that sells products to the United States, Canada and Mexico. Chou just created Strat an new strategy game. BTT is interested in distributing this game so they entered into a deal where Chou got $25,000 for negotiation rights for ninety days. This agreement specified that all contracts were to be in writing and there would be no verbal contract. Before the time was up BTT, sent Chou an email that detailed the specified the agreements reached upon their meeting, except for the agreement that Chou was to write up the draft, not BTT. Chou never responded and later BTT sent him a fax, asking for the draft, which Chou again never responded to. At what point, if ever, did the parties have a contract? According to the scenario, both Big Time Toymaker and Chou did have a contract, when they meet and agreed on all the terms and conditions of the distribution, that would be a contract, but because they agreed that there would be no contract unless it was in writing then it can be assumed they never were in contract because there was never a document they both acknowledge and accepted as a contract. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? The most important fact weigh in against Chou is that he did get a document before the ninety days expire, this document seemed to express everything that they wanted as agreed in their meeting yet he never responded. The reason why he did not...
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...Submitted by Rob Lowe Individual Case Scenario: Big Time Toymaker | Read the “Theory to Practice” section at the end of Ch. 6 of the text.Answer Questions 1 through 6 based on the scenario in the “Theory to Practice” section, and complete the following in your response: * At the end of the scenario, BTT states that it is not interested in distributing Chou’s new strategy game, Strat. Assuming BTT and Chou have a contract, and BTT has breached the contract by not distributing the game, discuss what remedies might or might not apply. * Explain your answers and refer to Section 7-6 in Ch. 7 for support.Submit your answers. | 1. At what point, if ever, did the parties have a contract? After reading the scenario, I believe there was a contract when BTT sent an email to Chau referencing the intital terms of agreement. Here’s the verbage from the scenario… “a BTT manager sent Chou an e-mail with the subject line “Strat Deal” that repeated the key terms of the distribution agreement including price, time frames, and obligations of both parties.” This is where the deal became legal binding. 2. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? Mutual Assent. Both parties had verbally agreed to the deal. A reasonable person would have assumed the deal was going to go through because BTT paid Chau 25K for negotiation rights for a 90 day period. At this point there was an enforceable agreement between...
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...Big Time Toy Maker Law / 421 Big Time Toy Maker 1. At what point, if ever, did the parties have a contract? Yes, both parties had a valid contract when they agreed upon the terms of the deal. They both agreed upon the terms and Chou accepted the twenty five thousand dollars from Big Time Toymaker. A written agreement was not needed due to BTT being only a distributer and not a producer. 2. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? Chou was paid twenty five thousand dollars by BTT for the negotiation rights to his house board game. This could have given Chou the impression that the contract was finalized. This would be considered a bilateral contract due to two promises and two performances. BTT would perform by distributing the product but would first promise to pay the twenty five thousand dollars. Chou promised to sell the negotiation rights and the performance was to turn them over to BTT for twenty five thousand dollars. 3. Does the fact that the parties were communicating by e-mail have any impact on your analysis in Questions 1 and 2 (above)? Since both parties were communicating through email, it does not have an impact on my analysis because of the factors stated earlier of a binding contract. The emails do reinforce the contract in the courts. 4. What role does the statute of frauds play in this contract? The statue of fraud applies to a sale of goods above 500 dollars. Since this...
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...1. At what point, if ever, did the parties have a contract? Upon reviewing this situation, Chou and Big Time Toymaker had participated in an oral agreement. During a conference between Chou and BTT a distribution agreement was reached, an e-mail was also directed by BTT to Chou confirming the significant terms of the verbal contract agreed upon during the conference. 2. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? In Chou’s situation, these facts may be in favor for him would be the verbal agreement and email Chou received from BTT. These facts however, are working against Chou. There is never an actual written contract created by Chou or that Chou arrived into a private contractual rights agreement with a 90 day probation with it explicitly stating, “No contract exists unless it is in writing.” Finally, no transcribed contract was turned in within the original 90-day time frame specified in the private negotiation. 3. Does the fact that the parties were communicating by e-mail have any impact on your analysis in Questions 1 and 2 (above)? Of course, the e-mail received signifies the response by both Chou and BBT of the dispersal agreement made in the meeting even though the e-mail had failed to mention the word “contract.” 4. What role does the statute of frauds play in this contract? Fraud has a role in case and it applies to this situation. “Under the Uniform Commercial Code, the statute...
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...school regulation will have a huge impact on their lives. To sufficiently influence policy makers, these parents need to be educated on the issues and involved in advocating for the new regulation. Their involvement will give ABC’s advocacy work the necessary visible support of young families. However, few young parents participate in ABC’s advocacy programs, preferring to join XYZ for their relevant information and support groups or LMN for their help in addressing problems in the school system. ABC recognizes that young parents have a limited amount of free time and wants to make it easy for them to participate in its advocacy efforts. In addition, ABC needs to be a good steward of its resources and not compete for clients with other organizations that are providing excellent complementary services. Purpose of the alliance The purpose of this alliance is to • Share information about the proposed school regulation • Recruit young parents into the project • Provide training to young parents so that they can assist in revising the proposed school regulation • Defray the costs of parent involvement in the project Outcomes An alliance of ABC, XYZ, and LMN (and perhaps other partners) will directly impact people with disabilities and their families and make a difference in their lives for years to come. The involvement of informed, concerned constituents will influence policy makers and help to make needed revisions in the proposed school regulation. The first steps Before...
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...Case Scenario Big Time Toy maker Aragon Week4 Instructor Rosale Lopez April 16, 2014 Level One Heading Option Contract and Distribution Agreement After reading this scenario, Big time toy maker and Chou did take part in an oral contract. In a meeting between BTT and Chou oral Documents were signed which bind both parties to fulfill certain obligations. A written contract was not necessary since this was a contract mainly dealing with services to disseminate the game, not a production contract or a sales contract Had it occupied a good contract to buy, sell which under which under the Statutes of Frauds would not be a contract until all the terms were not put in writing: that occurred when the supervisor from BTT emailed the terms which would have included his electronic signature and thus would have sealed the contract between the two. Furthermore whenever the contract is under (general) law besides the (mailbox) rule could say it went into effect when it was sent and not received. Into effect when was sent but not received. The analysis of the case verifies that the two parties were definitely not involved in a binding of the contract they never had a written contract or documented legal frame work. But the parties did have a...
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...Big Time Toy Maker Could BTT avoid this contract under the doctrine of mistake? Explain. Would either party have any other defenses that would allow the contract to be avoided? Chou could take BTT to court for breach of contract. When BTT paid Chou $2,500 for, and Chou gave BTT exclusive negotiation rights for 90 days, they both mutually assented to a legally binding agreement. Under the Uniform Commercial Code (UCC), if the contract of the sale of goods is $500, or more, and any lease transactions for the sale of $1000, or more, the statute the statute of frauds apply (Melvin, 2011). The $2,500 Chao received met this requirement. When BTT sent Chou an email 3 days before the expiration of the 90 day agreement, which included the price, time frames, and the obligations of both parties, it signified to Chao that BTT still intends to do business with Chao, and meets all the requirement for a contract. Chao's intentions were to draft the contract as agreed upon, but Chao made a unilateral mistake, he had an erroneous belief that the email between BTT and Chao, with all the terms already in it, plus the mutual assent of the two parties, was the actual contract. Thirty days passed before BTT, requested the distribution agreement contract from Chao, by fax. Up to this point, Chao thought he already had an agreement through the email. By BTT sending the fax, it signifies to Chao that the BTT wishes to proceed with the business transaction. Chao sends the draft immediately...
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...Case Scenario: Big Time Toy Maker LAW/421 May 5, 2015 Case Scenario: Big Time Toy Maker At what point, if ever, did the parties have a contract? The two parties, Big Time Toymaker and Chou entered into a contract when they came to the initial agreement where Big Time would pay $25,000 for exclusive negotiation rights for a 90 day period. What facts may weigh in favor or against Chou in terms of the parties’ objective intent to contract? The biggest factor in favor of Choe is that in the initial exclusive negotiation agreement, it was stated that no distribution contract existed unless it was in writing. Even though Chou never drafted an actual contract, the manager of Big Time sent an email with all of the details of a contract to him. Since all four parts of a contract existed, this is a contract, even though the email did not say so. Does the fact that the parties were communicating by e-mail have any impact? The fact that the parties are communicating by email gives tangible proof to the agreement being made and proof of the 4 parts to a contract. What role does the statute of frauds play in this contract? The Statute of Frauds requires contracts to have signatures. If this contract is found to fall in this category, which it may since the value is over five hundred dollars, it may be found invalid. Now, depending on what state, the fact that both parties responded via e-mail, their name signed at the end may be considered an electronic signature...
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...the candles. The Holland House Candles Inc. is the company making these elaborate candles. Each candle has to be done in 15 minutes or the wax will be come to cool to carve. Once started, the artist will quickly and efficiently make a beautiful decorative candle. At the beginning of the process the candle maker starts by dipping the wax base into the hot wax. Each time the candle maker dips the base into the wax they have to then dip it in water to seal the color of wax and ensure that the candle is staying the temperature needed to finish and sculpt the candle. Once the candle is finished with the wax, the candle maker then cuts off the base and sculpts a mushroom candle out of it, so there is no waste. The candle maker then starts sculpting the candle. Once this process starts the candle maker only has 15 minutes before the candle becomes to cool to sculpt. She uses the cookie cutter like tool to dig out some of the middle to ensure the candle burns down the middle and not over the edges ruining the design. Then, the candle maker uses a hot pan to melt the bottom of the candle to make an even bottom to apply the company sticker. Once this step is completed the candle maker then dips the candle into an acrylic glaze to seal everything and to give it a shiny look while burning. It is then set up to finish drying before being ready to sell. Waste created from the base of the candle is sculpted into a mushroom shaped smaller candle. The direct materials used in this process are...
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...1. What is the major problem or opportunity facing Dave? The major problem that Dave is facing is the low morale of his team. From that issue, other issues have grown over time. The team does not work well together like it used to, the team has stopped caring for their trucks, and each member of the team has been vying for the new truck. Dave is also afraid of losing one of his team members because they would be hard to replace. 2. What are the courses of action available to the decision maker? Describe the possible impact of each action on the team members, the company, and Dave. Dave, the decision maker, can make an effort to increase the morale of his team through bonding programs or something similar. He also needs to select a better way to decide who gets the new truck. The first new truck went to a junior employee whose truck was not very old. This was the cause of the decrease in morale, which is likely because the senior employees whose trucks are older did not feel appreciated. Dave could give the second new truck to the member with the most seniority and the oldest truck, which would be George, but that may cause some issues still; other team members may feel like they are worth less than the others. Dave could randomly select who gets the truck by doing a drawing of some sort, but that may leave a feeling of unfairness amongst the team members. Dave could also make it a competition of some sort, but that will likely increase the tension between the team members...
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...the individuals are at the very basic level are motivated to participate in a monetary transaction or other trades for the sake of making a living. Making a living or a good living is basically a motive to acquire and maintain the basic needs in life such as shelter, food, clothes among other luxuries along the way such as comfortable couch, or a cozy blanket and etc. To acquire a living at first, an individual is motivated to conduct himself in a marketplace and offer a product or service in return for a monetary value or factor that will help him/her attain a good living. Not necessarily does the maker or seller of the product creates and sells the product out of a good heart – he may, he may not – but to gain something else in return for him. The buyer may not necessarily buy the product just because it is just a good product, but also that it solves their need or want and the maker is trying to earn a living like everybody else. There is a chain to it – just like a food chain – it is a chain. John buys the raw material from Doyle to finish making a beverage that in return will be bought by customers, by more Doyles. Those customers are a provider (seller) of another product or service to another buyer who are their customers. Again, a cleaner doesn’t offer to clean your house just because they want to be nice, but at the same time to earn something...
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...Question 1: From the case, the characteristics of the toy industry: 1. Seasonal Demand Demand for toys is usually correlated with festive celebrations in a country. One close example is Christmas day which falls in December annually. Coincide with this celebration, significant portion of the toy’s annual sales usually happen towards the end of the year especially in those countries that are dominated by those that celebrate Christmas. The impacts of the seasonal pattern towards the industry are critical as most manufacturers have to consider several factors that lead to sales. The huge demand at certain period of time requires thoughtful planning and smooth execution as minor mistakes can lead to loss of millions of sales value. Just imagine within short period of time toy manufacturers have to produce millions of toys. This requires good management of supplies and synchronization between supplies and production as to minimize costs and ensuring efficiency. Not to forget issues of quality management and lastly the impacts or magnitude of logistic management to the toy manufacturers. 2. Stiff Competition Basically the toy industry consists of many players. As stated in the case, there are 880 companies operated in the industry in 2002. This is 10% lesser than 1997. There are few Key players in the industry such as Mattel, Hasbro, RC2, JAAKS Pacific, Marvel and Lego. In term of sales only two companies managed to register USD1 billion marks, the company are,...
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...Beyersdorfer (2013) suggested in 2004, the market size of the toy industry is worth $61% billion in the wholesales revenue, with a steady growth of 4% per year in the retail market for toys. Thousands of toymakers flourish the market to serve global demand while keeping track of the 3 new trends in the industry which are toys demand rise while product life cycles decline, children has less time to play, and lastly increase demand of technology integration in physical toy or online worlds. Changes in conduct of competitors have change as witnessed by manufacturing in Asia, entering diverse retail channels and engaging in heavy marketing efforts. Therefore, we recommends LEGO Group to first, bring back LEGO DUPLO concepts and offer to unexplored market by establish strategic partnerships. Second, increase investment in R&D of new product designs and innovations. Third, adopt internal supply chain monitoring system and LEGO retailers’ system integrator. As external analysis has suggested increase of retail competition sector in the toy industry and this will have effect on LEGO Group because internal analysis shows that firms have high operational costs and as a result the firm is making no profit. By implementing these recommendations LEGO Group will achieve lower operational cost, establish sustained competitive advantages which will led to higher market shares and customer satisfaction. ANALYSIS The nature of the toy industry as analyzed by adopting the Porter (2008) Five Forces...
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