Anybody good at contract law??

saviourgirl

Hello,

Could anybody help me with this, I'm doing a marketing thesis and law isnt my strong point.
A few pointers would be good.

Thanks
Sarah

Scenario:

Rock Bottom is a recording studio whose equipment is becoming quite dated. New recording desks and microphones are urgently needed.

Rock Bottom’s managers have asked both Digital Music Ltd. and Microtune Teo. to provide them with their price list. As the studio was planning to purchase a lot of equipment a good discount could be anticipated.

Digital Music’s prices for the items required were given by phone on the 10th of March. During the conversation, Rock Bottom’s manager mentioned that the mics would be used for Pop/Rock style of music. The salesman at Digital Music then told him: “these mics are the model used by U2 on their last album”.

Microtune’s order form was received on the 19th of March, with a letter mentioning that there were only a few remaining desks left at that discounted price and that they were likely to go very quickly.

On the 15th of March an order for twenty desks and thirty microphones was sent to Digital Music Ltd, together with a cheque for the full amount. The goods were sent via postal services on the 20th, accompanied by a delivery note that contained a list of terms and conditions, some of which excluded Digital Music Ltd from liability for “any loss or damage caused by any failure of the equipment”. Delivery took place on the 23d of the same month.

However after Microtune’s very competitive quote, Rock Bottom sent a letter to Digital Music, dated 19th of March, asking them to disregard the order and not to lodge the cheque. This letter reached the company on the 21st of March.

On the 19th of March Rock Bottom also emailed Microtune, who were unavailable on the phone, asking them to make sure to keep twenty desks and thirty mics for the studio. An answer was immediately sent by email but due to a network failure, the message was only read on the 25th. It stated: “we are delighted to ship to you the requested items, please lodge the money for the full amount to our bank account, the details of which are set out below”…


1)To whom is Rock Bottom contractually bound?

2)Assuming that Rock Bottom is using Digital Music’s equipment, some of the items are clearly faulty and cannot be used to their full potential. The seller is refusing any refund, reminding the studio of their terms and conditions. Has Rock Bottom got any possible redress?

3)It is later established that the microphones that do work have never actually been used by any known band. Is there any legal route open to Rock Bottom?

4)Does the development of electronic commerce introduce an unacceptable level of uncertainty into the Law on the formation of contracts?

hullaballoo

Moved to legal discussion.

johnnyskeleton

saviourgirl wrote:

Hello,

Could anybody help me with this, I'm doing a marketing thesis and law isnt my strong point.
A few pointers would be good.

Thanks
Sarah
...

1)To whom is Rock Bottom contractually bound?

2)Assuming that Rock Bottom is using Digital Music’s equipment, some of the items are clearly faulty and cannot be used to their full potential. The seller is refusing any refund, reminding the studio of their terms and conditions. Has Rock Bottom got any possible redress?

3)It is later established that the microphones that do work have never actually been used by any known band. Is there any legal route open to Rock Bottom?

4)Does the development of electronic commerce introduce an unacceptable level of uncertainty into the Law on the formation of contracts?

How is this relevant to a marketing thesis? It sounds like a first year contract law assignment to me.

If you are doing a taught masters and there is a contract law module, I would imagine that the answers are contained in your course notes. I'm sure your college would not expect you to go off and read a large legal tome for that, but if you're interested Contract Law by Paul Anthony McDermott (butterworths/tottel) is the standard text for legal practitioners.

If you want a quick and easy guide, there is a series of books called nutshells which break down large subjects such as contract law. You can get them in all good bookshops (Easons/Waterstones/Hoggis Figgis) and I if there are law courses in your college, the library should stock them(to the chagrin of the older professors).

You can also get most of the legislation you need (e.g. Sale of Goods and the Products Liability Acts) on www.irishstatutebook.ie.

timmywex

sale of goods and supply of services act 1980 should help you out, i think

the goods must be fit for the purpose of use which they clearly aren't

gonk

timmywex wrote:

sale of goods and supply of services act 1980 should help you out, i think

Does this apply to business to business transactions though, or is it only consumer protection?

frobisher

Um, I hate to be a pedant but as the resident recording studio person I feel it's my duty to say WTF! 20 desks in one studio??!!! Wow. Most places have 1.

I'd also say that the fact you're doing so much business with muso types over Paddy's weekend is going to get you into no end of trouble.:D

johnnyskeleton

gonk wrote:

Does this apply to business to business transactions though, or is it only consumer protection?

I think it applies to all contracts, but consumers get a greater protection. I think the example most commonly cited are the provisions for used cars, where a car sold to a consumer must be roadworthy (unless expressly sold as scrap), but if sold to a car dealer it doesn't have to be.

Implied condition on sale of motor vehicles. [s. 13: 16/1980]
...
(2) Without prejudice to any other condition or warranty, in every contract for the sale of a motor vehicle (except a contract in which the buyer is a person whose business it is to deal in motor vehicles) there is an implied condition that at the time of delivery of the vehicle under the contract it is free from any defect which would render it a danger to the public, including persons travelling in the vehicle.

(3) Subsection (2) of this section shall not apply where—
(a) it is agreed between the seller and the buyer that the vehicle is not intended for use in the condition in which it is to be delivered to the buyer under the contract, and
(b) a document consisting of a statement to that effect is signed by or on behalf of the seller and the buyer and given to the buyer prior to or at the time of such delivery, and
(c) it is shown that the agreement referred to in paragraph (a) is fair and reasonable.

(4) Save in a case in which the implied condition as to freedom from defects referred to in subsection (2) is either not incorporated in the contract or has been effectively excluded from the contract pursuant to that subsection, in the case of every sale of a motor vehicle by a person whose business it is to deal in motor vehicles a certificate in writing in such form as the Minister may by regulations prescribe shall be given to the buyer by or on behalf of the seller to the effect that the vehicle is, at the time of delivery, free from any defect which would render it a danger to the public, including persons travelling in the vehicle. source at p. 34

mountainyman

1)To whom is Rock Bottom contractually bound?
Digital Music

2)Assuming that Rock Bottom is using Digital Music’s equipment, some of the items are clearly faulty and cannot be used to their full potential. The seller is refusing any refund, reminding the studio of their terms and conditions. Has Rock Bottom got any possible redress?

Terms and conditions (Exclusion Clauses) cannot create a contract such that contract exists. In other words I cannot sell broken microphones.
Loss or damage caused by failure etc. does not mean that faulty equipment can be sold. It means that if a microphone breaks when U2 are in stdio and I lose their business because I mike breaks that is not DM's problem.

3)It is later established that the microphones that do work have never actually been used by any known band. Is there any legal route open to Rock Bottom?

Yes the fact that they were told that the microphones had been used by U2 and that DM knew they had to be of professional quality will open a legal route. The U2 issue is an implied term. Look up 'Sales Puff' and 'Fraudulent Misrepresentation'.

4)Does the development of electronic commerce introduce an unacceptable level of uncertainty into the Law on the formation of contracts?
No because these issues have existed since the invention of the telegraph. The offer and acceptance model of bargain formation is still sufficient.

MM

yournamehere

some inaccurate info in the earlier post

now i'm not going to do your assignment for you, but here's some pointers:
elements of liability to both email delay error brings in ecommerce act - look at nutshells for info -

2)relates to exclusion clauses. redress under the ec unfair contract terms regulation....certain prov of sale of goods apply to commercial and consumer transactions, some apply to consumer only.


3) misrepresentation - was the statement re U2 mere sales puff or did it induce them to enter the contract have a look at dick bentley v hc motors/ oscar chess case v williams. misrep can be fraudulent, innocent or negligent. was seller in position to know accuracy of statement? too specific to be sales puff so fraudulent misrep derry v peek

4) YES absolutely yes. Esp since the e-commerce act 2000, s19 or thereabouts roughly introduces that email is thought to be received when sent whether or not receivee has read it....have a look at contract law in an ecommerce age for information...other provisions also which bring uncertainty to the area

new nutshells book on contract law out this yr. it's a small easy to read book you'll find sufficient infor in there.
sorry only had time to skim and not enough time to give you a proper structure but thats the general bones of your answer

mountainyman

yournamehere wrote:

4) YES absolutely yes. Esp since the e-commerce act 2000, s19 or thereabouts roughly introduces that email is thought to be received when sent whether or not receivee has read it....have a look at contract law in an ecommerce age for information...other provisions also which bring uncertainty to the arear

No (4) is just the postal rule. How is email different from the postal rule?

MM

dermot_sheehan

Entores v. Miles says the postal rule does not apply to electronic communications.

sh_o

gabhain7 wrote:

Entores v. Miles says the postal rule does not apply to electronic communications.

Entores v Miles was in 1955, Section 21 of the Electric Commerce Act 2000 modifies the position. Look at sections 21 (2) and 21(3) for instance. Section 21 should be read in conjunction with section 19.

dermot_sheehan

hmm interesting, the thing is s. 21(2) simply says that a communication is deemed received when it enters the communication system unless otherwise provided by agreement or the law. I wonder how that connects with ordinary contract law which states an agreement is made when the offeror is notified of acceptance (with the exception of the postal acceptance rule which entores says is confined to snail mail).

mountainyman

Section 21 wrote:

Where an electronic communication enters an information system, or the first information system, outside the control of the originator, then, unless otherwise agreed between the originator and the addressee, it is taken to have been sent when it enters such information system or first information system.

That sounds very like the postal rule.

MM

dermot_sheehan

hmm, it does, but it seems strange that the legislature would extend the postal rule since most regard it as an illogical historical anomaly.

walrusgumble

sh_o wrote:

Entores v Miles was in 1955, Section 21 of the Electric Commerce Act 2000 modifies the position. Look at sections 21 (2) and 21(3) for instance. Section 21 should be read in conjunction with section 19.

its the postal rule linsdell v adams 1870 or adams v linsdell (cant remember which). not too sure if that rule still applies, does it?

either way e-commerce act states that the rule would not apply to the electronic communication such as email.