364 Moe Curly and Larry have go

See attatchment, because it is really hard to read in this box.



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Moe Curly and Larry have gotten things rolling with their online delivery service. They were so
pleased with your work last time that they have come to you with a couple more problems with
which they would like you to help them frame the issues before they go to Larry’s friend, Shemp
(who just left On the Run), who is now the company’s attorney. Make sure to explain your reasoning
to them thoroughly so they can pass it along to Shemp.
First, On the Run purchased special delivery management software from Cybertime Software to
help them manage the delivery service. The terms of the contract provided that the OTR was
purchasing use of the software for six (6) months. The ordinary license fee was $6,000, but OTR
received a discount by putting “Our trucks run on Cybertime™” on the side of their delivery
vehicles. So the total cost was $5,400. Cybertime timely delivered the software copy on compact
disks, encoded to become usable on January 1, 2011, with payment due from OTR by February 1,
2011. Unfortunately, OTR was a bit short of funds in January, so, on February 2, they asked
Cybertime for an extension of the payment date. Their sales rep at Cybertime emailed back to
Moe, “Well, Moe, we don’t ordinarily do this, but because you are already advertising for us, we’ll
give you an extension to February 28 to pay.” However, their sales rep never did make a notion of
this change on the account.
Cybertime had problems with deadbeat clients before and so, without telling their clients (like
OTR), Cybertime set up the software to disable forty-five (45) days after delivery unless
Cybertime supplied the client with a special code to register the program, which would be done upon
full payment. Of course, OTR didn’t make the payment, and so the software disabled on February
15, causing mayhem for OTR. They missed a number of deliveries and needed to pay $1,000 to have
someone else cover their deliveries until they could get the software activated again.
First Task: Please discuss the following issues: First, examine the validity of the extension.
Cybertime is arguing that the extension isn’t valid. Second, Moe thinks there is something
sneaky about the disablement function. Discuss the legality of the software configuration.
Third, can OTR recover the $1,000 from Cybertime? Why or why not?
Moe sent Larry out to trade their 1998 Honda Odyssey for a proper delivery vehicle for OTR.
Larry goes out to Samples Sales to pick out a new truck. Junior, the owner of Samples Sales, walks
Larry over to a used 2008 GMC TurboVan. Junior tells Larry that driving the TurboVan is a
fantastic, reliable vehicle. Larry is no dummy, so Larry requests that Junior provide receipts and
invoices from all repairs made to the vehicle during the past year. Junior hesitates and then
agrees, but does not give Larry all of the receipts.
In the negotiating process, the appraiser at Samples Sales took the Odyssey for a test drive to aid
in the appraisal process. Larry decides that the 2008 GMC TurboVan is just the van OTR needs and
began negotiations in earnest. Based on the receipts and the fact that Larry thinks the TurboVan
will do the job for OTR, and tells Junior that he wants to buy the TurboVan.
Larry and Junior settled on a price for the TurboVan, with a final agreement contingent on an
acceptable amount for the trade-in. When Junior brought a contract showing the price of the GMC
TurboVan, with the deduction for the trade in, it noted `1999 Honda Odyssey` as the trade in.
Everything else in the Odyssey’s description (mileage, etc.) was correct. Larry noticed this
difference but said nothing and quickly signed the contract. A few minutes later when Larry went
to sign over the certificate of title on the old van, Junior said that the deal was off because he had
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based his trade-in allowance on the car being a 1999 model. Larry played it tough and said he would
take the deal only as it was, and would not accept a lower trade-in allowance. After some further
negotiations, the dealer agreed to grant the trade-in allowance as originally stated. Larry then
signed over the title and took the GMC TurboVan back to OTR.
After getting the van back to the office, Larry learns that the 2008 GMC TurboVan has significant
mechanical problems; however, it is just right for the job. Then, the next morning, the sales
manager called and said that the dealer was rescinding the contract based on the mistake. Larry
says, no dice on the rescinding the contract, but that he wants a further price break.
Second Task: Please discuss the following issues: What claims does OTR have against
Samples Sales? Would these claims be sufficient to get a price reduction? Does Samples
Sales have a right to force a rescission of the contract based on the mistake?
Finally, OTR signed a lease agreement in March of 2010 that includes the following provisions:
1. The monthly rent is $800, due on the first of the month. Late rent is not accepted and will
be considered a breach of this lease agreement. The term of this lease is 12 months.
2. Utilities costs will be shared with the other three units in the building. The landlord will
provide copies of the monthly electric and water bills along with a calculation of the amount
owed by the tenants in each unit.
3. No more than three vehicles per unit can be parked in the parking lot. Any vehicle parked in
the lot greater than three is subject to a $100 fee per month.
4. No trucks or vans are allowed in the front of the parking lot. Any tenant caught parking a
truck in violation of this provision will be considered in breach of this agreement.
5. Tenants parking a delivery van in the front parking lot will be charged a $100 parking
penalty at the termination of the lease.
6. Security deposit. The tenant will pay a security deposit of $1,000 to secure the
performance of this lease.
Several months into the agreements several items are discussed. The parties continue with the
agreement until just before the rent is due for the last month. OTR has the following disputes:
a. The landlord told Moe in the fifth month that OTR could pay by the fifth day of the month,
and has been accepting such payments. He now claims that OTR breached by paying in this
5-day period.
b. The landlord has been charging OTR one-fourth of the water and electricity costs even
though he told Moe that OTR’s share would be 20 percent, because OTR’s space is
significantly smaller than the other three units. Moe wants the difference refunded.
c. Next to the `three` in the car parking provision, the landlord wrote `five` by hand. OTR
has been parking five vehicles in the lot. Now the landlord wants to charge OTR $2,400.
d. OTR has been parking five delivery vans in the front lot for the last few months and the
landlord is now claiming OTR is in breach of the lease.
e. OTR wants the landlord to take the last month's rent out of the security deposit, and the
landlord refuses.
Third task: Discuss the following questions. 1. Is OTR in breach of the lease for violating
clause 1 and 4? 2. Is OTR entitled to a refund of some of the costs of the utilities. 3.
Can OTR insist that the landlord take the final month’s rent out of the security deposit?