Big Time Toymaker Essays - Contract Law, Contract, Mistake

Big Time Toymaker Essays - Contract Law, Contract, Mistake Big Time Toymaker LAW/421 November 10, 2014 Big Time Toymaker An agreement recognized by a court of law is called a contract. A binding contract is the result of an agreement, whether the agreement is verbal or written, providing certain requirements be met (Melvin, 2011). The purpose of contracts is to provide protection to both parties involved in the agreement. In this simulation, Chou had invented a revolutionary game, Strat, which had piqued the interest of Big Time Toymaker (BTT). Chou and BTT entered into an agreement that gave BTT exclusive rights to Chous inventory for the period of 90 days in exchange for a monetary transaction of $25,000 (Melvin, 2011). Evaluation of this particular situation will lead to the discovery of some of the pros and cons a contract can provide, how to determine if a contract is necessary in a situation, as well as a few remedies should a breach of contract occur. Contract Melvin (2011) stated, BTT was interested in distributing Strat and entered into an agreement with Chou whereby BTT paid him $25,000 in exchange for exclusive negotiation rights for a 90-day period. The exclusive negotiation agreement stipulated that no distribution contract existed unless it was in writing (p. 155). These are concrete terms that form a verbal agreement, which was held in place, that lead to the creation of a written agreement. Even though none of the e-mails exchanged between Chou and BTT ever actually contained the word contract, the e-mails clearly showed that all of the terms were agreed upon by both parties involved, which meets the requirements that outline a contract. Positive and Negative Facts of Agreement This particular simulation provides several facts that are in favor of and against Chou in terms of the parties objective intent to form a contract. The first fact in Chous favor is the first meeting where an agreement was made with BTT regarding the monetary exchange for exclusive negotiation rights. BTT sending over a follow-up e-mail that clearly stated their agreed upon terms was a second fact in favor of Chou, as well as the fax from BTT requesting that Chou create a draft for an actual contract. Chou also had in his favor the fact that both parties spent a notable amount of time acting under the agreed upon terms of the drafted contract. However, because the negotiation agreement stated that there would be no contract for distribution unless otherwise stated in writing, and BTTs e-mail that repeated the agreed upon terms did not contain signatures from either party, binding the contract, the oral negotiation agreement passed the 90-day deadline with no technical contract in pla ce. It was not until several months had passed that that BTT had requested a draft of a contract. Impact of E-mail Thanks to the evolution of technology, in the paperless world of electronic communications, a paper communication is no longer necessary to hold to the bond of an agreement. The e-mails exchanged between Chou and BTT outlines an agreement made by both parties based on the terms agreed upon in the meeting regarding distribution. Without the e-mail exchange identified as a contract by written words, it displays an acknowledgment by Chou and BTT of an existent contract. According to Melvin (2011), because the e-mail provided a senders name at the bottom of the message, the Mailbox rule applies, and the name is to be considered an electronic signature. Statute of Frauds Melvin (2011) states, Under the Uniform Commercial Code, the statute of frauds applies to any contract for the sale of goods for $500 or more, and any lease transaction for goods amounting to $1,000 or more (p. 151). Because the $25,000 was received by Chou under the negotiation agreement, the sale of goods should be considered for the Strat game. The electronic signature at the bottom of the e-mail from BTT to Chou is also considered, especially since the e-mail clearly stated the agreed upon terms. Chou could use the fact that the whole scenario was misleading because there was an exchange of money for goods, a verbal agreement, and an e-mail containing all of the elements of a contract. Doctrine of Mistake Melvin (2011) defines a mutual mistake as A mutual mistake may be the basis for canceling a contract (also

Vitamins May Hurt Your Health

Vitamins May Hurt Your Health MSN ran a feature about ConsumerLab.coms investigation into the purity of multivitamins. The lab looked at 21 brands of multivitamins for sale in the U.S. and Canada and found only 10 of these brands met the labeled claims or otherwise met quality standards. That doesnt have to mean anything earth-shattering. It could have been the other brands were close to meeting standards or had minor problems. However, the quality issues were ones that could actually hurt your health. The Vitamin Shoppe Multivitamins Especially for Women were found to be contaminated with lead. Now, lets put this in perspective. Several calcium supplements run the risk of lead contamination, because lead and calcium participate in many of the same chemical reactions and are difficult to separate. That trace amounts of lead would be present might be expected. However, ConsumerLab.com reported a daily dose of this mulitvitamin contained a whopping 15.3 micrograms of lead (more than ten times the amount permitted without a warning in California). To make matters worse, though you got some bonus lead for your bucks, you only got 54% of the stated levels of calcium. Another vitamin posed a different risk. Hero Nutritionals Yummi Bears, a kids multivitamin, contained 216% of the labeled amount of vitamin A in the retinol form [5,400 International Units (IU)], which is considerably higher than the upper limit set by the Institute of Medicine of 2,000 IU for kids ages 1 to 3 and 3,000 IU for kids ages 4 to 8. Vitamin A is one of the vitamins where more is not better. Instead, too much vitamin A can weaken bones and cause liver damage. Are these quality control issues? Yes, but I would have been surprised if the lab had found the vitamins met their stated claims. Why? For two reasons. First, vitamins arent regulated by the same standards as medicine. They are considered supplements and not drugs. Your best defense against this is to buy a product from nationally-recognized reputable source with an interest in protecting its good name. The other reason I wouldnt expect vitamins to contain exactly what is listed on the label is simple chemistry. Vitamins, by their very nature, are reactive. The quantities listed in a product will change over the course of its shelf life. Your main protection here is to not take vitamins past their expiration date. Should you take a multivitamin? Ask yourself whether the potential benefit outweighs the risk. If you are taking a major name brand multivitamin, you are probably getting approximately what is listed. Even then, expect some variation within the product and some degree of heavy-metal contamination with products that include minerals. These vitamins generally are safe, but dont take them automatically assuming they will help you.