Legal and Ethical Scenarios

Support your responses with appropriate cases, laws, and other relevant examples by using at least three scholarly sources. Label the beginning of each scenario with the number you selected (e.g., Scenario 1). Cite your sources in APA format on a separate page.

Scenario 1 – Contracts

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Greg, a consumer in Tennessee, sent a purchase order to Campbell Manufacturing, a U.S. company, for a 4000 PSI gas pressure washer valued at $1275. Greg needed a new pressure washer for his part time business of washing houses. The order did not specify how disputes between the parties would be settled. Campbell returned a definite, unconditional acceptance that contained one additional term which stated that disputes must be submitted to arbitration. Greg received the acceptance; however, he never agreed or objected to the additional term.

Campbell orally contracted to sell 15 pressure washers to London Painting Company a large commercial painting company in France.

Explain the status of the contract between Greg and Campbell.
If a contract was formed, did the additional term in the acceptance become part of the contract?
Is the contract between Campbell and London legally enforceable? (Additional research outside of the textbook may be necessary).

Scenario 2 – Management of Corporations

Parker and Phillips incorporated P & P Resorts Inc., a closely held Texas corporation. Parker was president and Phillips served as vice president and director for operations. Parker owned 40% of the stock, while Phillips owned 60%. Both men met with CTA, a group of travel agents from California to discuss special deals for booking groups into the resorts. After the first meeting, all contracts with CTA were made by Phillips, who learned that there was a good chance that CTA would award the contract to P&P Resorts. Phillips incorporated Travel Brokers and was its sole owner. Phillips used P& P Resort’s time to work on proposals for Travel Brokers and managed to keep negotiations with CTA a secret from Parker. When Parker discovered Phillip’s actions, he filed suit against him for wrongfully taking a corporate opportunity from P &P Resorts. Phillips claimed that he did not take a corporate opportunity because Travel Brokers did not have the financial ability to undertake the contract with CTA.

Provide the arguments for Parker and Phillips.
Determine which party should win and provide support for your selection.
Explain any ethical principles applicable to this case.

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