Business Law
Read the following scenarios and answer each question in 5-10 sentences.
1.You are the owner of a rare 1969 Chevrolet Corvette ZL-1. The car is in poor condition, and you want to return the car to its original condition in two months for eventual resale. You contact Dominic’s Restorations, Inc., and speak with Dominic, the owner, who is a renowned specialist in repairing Chevrolet Corvettes. Dominic tells you that he would welcome the opportunity to work on such a rare automobile. Dominic also says there is a possibility that he would not able to repair the entire car within the two month time period. Instead, he would like to reserve the right to delegate the obligation to another company in case he can’t meet the deadline. Weigh the pros and cons of granting Dominic the right to delegate the work.
2. You are a manager employed by a construction company that builds small venues for rock concerts, sporting events, and other activities. RP Properties is negotiating an agreement with your company to build a $100 million stadium near a city downtown. Among many other terms, the contract states that the project should be completed by January 1 of next year. The contract also states that your company will be obligated to pay $20,000 for each day of delay in completion after January 1. Although you know the contract will be profitable for your company, evaluate the risks of accepting such a contract given the contract clause.
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