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Part I (25 points each) – Write a short essay answer for each of the following t
Part I (25 points each) – Write a short essay answer for each of the following topics.
Part I questions generally should not exceed a half page each. The Part II questions will mostly but not always be a little longer but always less than 1 page each.
1. Mattel, Inc. ordered 1,000,000 Barbie dolls from Supplier A in Mexico City and 1,000,000 Barbie dolls from Supplier B in Kuala Lumpur, for delivery by October 15th, for sale in connection with release of a movie about Barbie. Both Suppliers charged $15 per doll, payable upon delivery. Supplier A was able to deliver its 1,000,000 dolls on time, but Supplier B encountered production problems and notified Mattel that it could only deliver 500,000 dolls on time. Mattel then asked Supplier A to operate additional overtime production lines, and Supplier A was able to deliver on time an additional 350,000 dolls at $25 each (the $10 per doll increase was mostly due to overtime costs). Mattel sold out the entire 1,850,000 dolls it had available at an average profit of $20 per doll. In light of the reduced supply available, Mattel cancelled point-of-sale (and related digital) marketing promotions at theaters showing the film, in markets where it wouldn′t have adequate inventory to sell, and incurred $50,000 in cancellation fees and wasted production costs. Discuss what claims Mattel can bring against Supplier B and what amount of damages it reasonably 2 could recover on each claim. Use specific dollar amounts and explain how you arrived at them.
PART II (50 points each). Write a short essay answer on each of the following three topics.
A. United Airlines entered into a purchase agreement with Boeing to purchase 10 737 Max 9 airplanes. The contract provides that Boeing will repair or replace any defective operating parts, and that Boeing’s maximum liability to United in any case will not exceed 15% of the purchase price (which is approximately Boeing’s profit margin on each plane.) One of the planes delivered by Boeing had an exit door that was improperly bolted in place, and it blew out in mid-air, sucking one of the passengers out the hole in the fuselage when it blew out. Explain what types of claims (contract, tort, etc.) could be asserted (i) by United against Boeing, and (ii) by the next kin of the passenger who was killed when he was sucked out of the plane in mid-air. Explain the applicability and enforceability of Boeing’s limitation of liability to each claim.
B. United Shipping Company (“USC”) operates a package delivery business similar to FedEx and UPS. 95% of USC’s driver/delivery employees are male. USC requires applicants for these positions to take a test to demonstrate they can lift a 200-lb box and carry it while walking briskly for 25 yards. Assume that USC can show that there are both male and female applicants who fail this test, that many more of its female job applicants fail this test compared to male applicants, and that all of its male and female hires passed this test. Two female job applicants who did not pass this test and were not hired by USC filed a class action on behalf of female applicants claiming that USC discriminates against women applicants for the driver/delivery jobs. What arguments can the female plaintiffs make and what type of evidence would they need to present to have a successful discrimination claim?
C. Company A, a publicly traded company, gets involved in a major public controversy over its spending of corporate funds to contribute to various “extremist” political groups and candidates, who happen to also support policies favorable to Company A’s business. Many consumers start boycotting Company A’s products and the Company’s revenue falls off. The shareholders of Company A get upset and vote in favor of an amendment to the Company’s bylaws that prohibits donating corporate funds to any political candidates or to any organization that endorses or advocates for political candidates. Company A files a lawsuit to enjoin (or block) the bylaw amendment from being applied to Company A because it claims that the bylaw violates Company A’s First Amendment rights to free speech and to spend money to give effective voice to its free speech rights. Explain whether Company A’s First Amendment claim is likely to succeed.
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