Case Studies Flashcards
Case study on legal gaps
Englaro Case
The Italian constitution, and as such the legal system, had a gap. So there, was a need to fix this issue. Englaro was in a car crash which left her in a vegetative state, and her father said that a few weeks prior when she went to visit a friend to who lay in a coma, she had told her father that if she was found in the same situation, her will was not to be kept artificially alive.
The court authorized the legal guardian to interrupt medical treatments that keep an Incapacitated person lying in a vegetative state if two conditions are met:
1) The vegetative state is ascertained to be irreversible according to science
2) The application reflects the patients will, and is drawn from their past statements and lifestyle
Case study on rights
Dwarf tossing
Dwarf tossing is an activity in which dwarfism-affected persons are thrown – participants compete to throw the dwarf the farthest
The mayor of a small french town banned dwarf tossing shows in public places
Dwarfism-affected people willing to take part in these shows challenged the administrative ban arguing the shows allowed them to maintain a source of income
The French court found that the administrative authority could legally prohibit dwarf-tossing on the grounds that the activity did not respect human dignity and so was contrary to public order
Case study on intention/ expression of a contract
Udall vs Hill case
Hill (animal food producer), Udall (a mink breeder)
They sign a contract for the supply of animal food
The contract described the basic expected “nutritional values” of said foodstuff.
However, an ingredient of the food supplied contained a toxic agent which, although usually not unfit for animals in general, caused thousands of Udall’s mink to die.
Udal sued for breach of contract BUT their claim for damages was dismissed
The test is an impersonal test,- what the seller promised is determined by ascertaining what his words and conduct would have led the buyer reasonably to believe that he was promising. It does not depend on the actual belief of the buyer himself as to what the seller’s promise was, unless that belief would have been shared by a reasonable man in the position of the buyer
Case on breach of contract and good faith
Yam Seng vs International Trade corporation
Contract of exclusive distribution of perfumes
- In duty free shops
- In specific territories
Through an agreement ITC granted Yam Seng the exclusive rights to distribute in duty free shops certain fragances bearing the name “Manchester United” in specified territories
.
During the contractual relationship ITC:
Authorised another distributor to apply in Singapore than the duty free proce Yam Seng was permitted to offer
Misled Yam Seng about the issue, in giving false information about the price applied
Yam Send sued ITC for breach of contract
Ruling: ITC was in breach of contract in acting in bad faith in misleading Yam Seng about the steps taken to ensure that the domestic retail price in Singapore was not lower than the duty free price
Case on Postal rule approach (contracts)
Adams v Lindsell (1818)
A contract for the sale of wool
Lindsell wrote to Adams offering to sell him the wool – he required expressed acceptance by a specified date in the form of a mailed response
Adams receives the offer and immediately sends his acceptance letter back -letter is delayed by the postal service
Lindsell believes the offer has not been accepted and so sells it to someone else
The court says there was a valid contract because even though the acceptance was not received by the specified date it was posted by the specified date.
In common law the offeree bears risk of revocation only for the period between the arrival of the offer and the dispatch of the acceptance (not the arrival of the acceptance to the offeror – only the dispatch!!)
Case on lack or impossibility of subject matter
Mc Ray vs Common wealth Disposals Commission
The owner of a tanker wrecked on the “Jourmand reef” containing soil sold it
The buys went and found that there was no such place
It became clear that the seller incurred in a reckless and irresponsible mistake, in thinking it has a tanker to sell
The high court of Australia sentenced the seller to compensate damages for breach of contract
Case on fraud
Bundesgerichtshof
Commercial tenancy between two shops selling textiles and accessories
The assortment list of the goods that were to be sold in the shops was integrated in the tenancy contract or emailed to the landlord
Although they did not mention the brands, the lists omitted that most of the clothes and accessories were of the controversial brand Thor Steinar
Brand often associated w extreme right-wing convictions by the media and internet sources
In addition, German Bundestag and some football stadiums forbid wearing clothes of this brand
In both cases, the landlords demanded the immediate termination, the clearance, and the restitution of the premises on the ground of fraud
The tenant did not mention his intention to sell goods of the brand Thor Steinar
Good faith can impose a duty on a contracting party to inform the other party of facts that are obviously of decisive nature for their consent
The economic loss and reputation of the landlord play an important role in assessing the information duties of the tenant
Case on information asymmetry
George Akerlof: the market for lemmons
The quality of goods traded in a market can degrade in the presence of information asymmetry between buyers and sellers
In the example of the used car market, there are good cars and bad cars
The buyer before doesn’t know if it is a good car or a bad car
The buyer will be willing to pay for the used car only the price of a car of known average quality
As such, the owner of a well-kept car will be unable to get a price high enough to make selling their care worthwhile, or they’ll pull out of the market and only lower quality cars will be sold
Case on unfairness
Charge of £85 if you overstay your parking time limit
Mr Beavis left his car in the carpark for longer than stated in the rules – he sued parking eye saying that the term was a standard term in his opinion and it was unfair under the unfairness principle because it was creating an unfair imbalance between the position of the parties and it was not a clause, he would have negotiated in good faith had it been an individual negotiation
Judgement – the imbalance between the parties did not arise as contrary to the requirement of good faith and so they believed therefore that a reasonable motorist would have agreed to the terms as the terms of the parking were objectively reasonable
Case breach of contract - termination or not
Hong Kong Fir Shipping v Kawasaki Kisen Kaisha
The ship ‘Hong Kong Fir’ was hired under 2-year charter party to Kawasaki Kisen Kaisha
Term in charterparty agreement required ship to be seaworthy
However, crew were insufficient in number and incompetent to maintain machinery, chief engineer was a drunk
On voyage, engines broke down, 15 weeks of repair needed before ship was sea worthy again
Only 17 months of 2-year charter remained at this point
As the charters still get to have the boat for 20 more months, the expected benefits can still be received
Therefore, breach does not lead to termination, only damages
Case study on foreseeability
Hadley v Baxendale
Claimants: Mr Hadley and another, were millers and mealmen and worked together in a partnership as proprietors of City Steam Mills
They cleaned grain, ground it into meal and processed it into flour and bran
Mill stopped by breakage in a crank shaft
Hadley enters into contract with Baxendale to have shaft carried to manufacturer for repair
Baxendale not told that mill will be stopped until shaft repaired, nor did he have reason to believe so
In breach of contract, the latter delays in delivering shaft
Hadley loses business profits because of stoppage of mill
Hadley cannot recover lost profits because Baxendale did not have reason to know that his delay would cause lost profits
Case on liquidated damaged clauses
U.S v Bethlehem Steel Co.
The government contracted with manufacturer to supply gun carriages
Haste was very important – passed up lower bids because manufacturer promised to be fast
Agree that a sum of 35 would be added for eacg day the delivary was late
Based on computation on average price different between manufacturer and cheaper but slower or supplier
Manufacturer delayed delivery of some of the carriages
Is it enforceable?
Yes, the aim of the clause was to compensate the government by means of a reasonable formula
Case on breach of duty
Case result of the sinking of the barge Anna C in NY harbour
Before accident: Anna C moored at pier 52 on north river, with other barges
Tug Carroll as went to remove a barge from pier
After removal of line, barges at pier broke free
Anna C sank
Case on vicarious liability
Driver of petrol tanker
Davidson was driving a petrol tanker for his transport board
While petrol was being pumped from his truck into the underground tank of a petrol station, he lit a cigarette and threw the match on the ground
Match ignited some material left on the ground, the fire caught up with the tanker and the ensuing explosion caused damage to property
The act was done in the course of the employment. The conduct must be examined in light of the surrounding circumstance and must not be taken into isolation
Case on causation
The Edelweiss and HH9
Two ships moored side by side in a lock
Ship’s operators were asked to specify the width of vessels before water level was lowered in the lock, to allow the personnel to organise mooring operations safely
HH9 operator mistakenly understood the width information, so that the following operation, the two vessels got stuck in the lock
The rescue activities were improperly executed by the lock personnel, and in the course of it Edelweiss was submerged and sank
Insurer of Edelweiss sued the insurer of HH9 for damages in tort – the wrong width information being the “but for” causation of the accident
The claim was dismissed on the ground of “adequate cause” theory
