Prof Allan – Law

Your responses should be well-rounded and analytical, and should not just provide a conclusion or an opinion without explaining the reason for the choice.

It is important that you incorporate the question into your response (i.e., restate the question in your introduction) and explain the legal principle(s) or concept(s) from the text that underlies your judgment.

For each question, you should provide at least one reference in APA format (in-text citations and references as described in detail in the Syllabus). Each answer should be double spaced in 12-point font, and your response to each question should be between 300 and 1,000 words in length.

16.1 Specific Performance The California and Hawaiian Sugar Company (C&H), a California corporation, is an agricultural cooperative owned by 14 sugar plantations in Hawaii. It transports raw sugar to its refinery in Crockett, California. Sugar is a seasonal crop, with about 70 percent of the harvest occurring between April and October. C&H requires reliable seasonal shipping of the raw sugar from Hawaii to California. Sugar stored on the ground or left unharvested suffers a loss of sucrose and goes to waste.

After C&H was notified by its normal shipper that it would be withdrawing its services at a specified date in the future, C&H commissioned the design of a large hybrid vessel—a tug of a catamaran design consisting of a barge attached to the tug. After substantial negotiation, C&H contracted with Sun Ship, Inc. (Sun Ship), a Pennsylvania corporation, to build the vessel for $25,405,000. The contract gave Sun Ship one and three quarter years to build and deliver the ship to C&H. The contract also contained a liquidated damages clause calling for a payment of $17,000 per day for each day that the vessel was not delivered to C&H after the agreed-upon delivery date. Sun Ship did not complete the vessel until eight and one-half months after the agreed-upon delivery date. Upon delivery, the vessel was commissioned and christened the Moku Pahu.

During the season that the boat had not been delivered, C&H was able to find other means of shipping the crop from Hawaii to its California refinery. Evidence established that actual damages suffered by C&H because of the nonavailability of the vessel from Sun Ship were $368,000. When Sun Ship refused to pay the liquidated damages, C&H filed suit to require payment of $4,413,000 in liquidated damages under the contract. Can C&H recover the liquidated damages from Sun Ship? California and Hawaiian Sugar Company v. Sun Ship, Inc., 794 F.2d 1433, Web 1986 U.S. App. Lexis 27376 (United States Court of Appeals for the Ninth Circuit)

 (Cheeseman 278)

18.1 Good or Service Mr. Gulash lived in Shelton, Connecticut. He wanted an aboveground swimming pool installed in his backyard. Gulash contacted Stylarama, Inc. (Stylarama), a company specializing in the sale and construction of pools. The two parties entered into a contract that called for Stylarama to “furnish all labor and materials to construct a Wavecrest brand pool, and furnish and install a pool with vinyl liners.” The total cost for materials and labor was $3,690. There was no breakdown in the contract of costs between labor and materials. After the pool was installed, its sides began bowing out, the 2 × 4-inch wooden supports for the pool rotted and misaligned, and the entire pool became tilted. Gulash brought suit, alleging that Stylarama had violated several provisions of Article 2 of the UCC. Is this transaction one involving goods, making it subject to Article 2? Gulash v. Stylarama, 33 Conn.Supp. 108, 364 A.2d 1221, Web 1975 Conn. Super. Lexis 209 (Superior Court of Connecticut)

 (Cheeseman 311-312)

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