Jakes failure to render complete performance


1. Jake and Greg enter into a contract for home remodeling services. Jake substantially performs the service contract with Greg. Due to Jake's failure to render complete performance, Greg

a.should declare a material breach of contract and pay only for the value received.

b.likely must pay Jake the full contract price less the market value of the work left undone.

c.is discharged from any further contractual obligations and owes Jake nothing but labor costs.

d.is required to pay only for the materials Jake installed, based on quasi-contract theory (preventing unjust enrichment of getting something for nothing).

2. Jim entered into negotiations with Big Box, Inc. to be the purchaser for all electronics. Negotiations were ongoing for 3 months. Finally, Big Box announced in a staff meeting that Jim would be the next head of purchasing, starting next month. Big Box and Jim would meet to sign the contract next week. When Bill found out the amount of Jim's salary, Bill (who owned his own small electronics repair company) approached Big Box, offering to do the job for one-third less money. Big Box agreed immediately and hired Bill. Can Jim sue Bill?

a.Yes, for intentional interference with a contract.

b.Yes, for intentional interference with prospective advantage.

c.No, no written contract had been signed by Jim and Big Box.

d.Maybe, for breach of contract.

3.Rodney was employed by Deluxe Discount Store. Rodney's manager directed him to check the prices of dog food at Huge Savings Store. Rodney believed this to be unethical behavior and was fired. Rodney told his manager that firing him for refusing to act in an unethical manner is illegal, and Rodney continuted to do his job, refusing to leave the store. His manager ordered him to vacate the store immediately, and he threatened to call security to have Rodney removed. Still, Rodney continued to perform his work, ignoring the manager. Did Rodney commit a tort?

a.Yes, Rodney committed the tort of intentional infliction of emotional distress.

b.No. His firing appears unethical, so he had a legal right to stay and do his job.

c.It depends on whether the firing was unethical or justified.

d.Yes. He had no right to remain in the store after his boss ordered him to leave.

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Business Law and Ethics: Jakes failure to render complete performance
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