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BUSINESS LAW – BUAD 381 Using the book, handouts and class discussions, the objective for the student taking this exam is to use what was learned during class and from the reading assignments, to answer each question following the IRAC format. Additionally, the student taking this exam is expected to answer each question it its entirety, i.e. provide an answer that demonstrates that the student knows how to fully complete the legal process from beginning to end. The applicable rule(s) for each question/scenario is in the book and/or was discussed in class. Each written question is worth 50 points (5 points for IRAC, 10 points for Rule Identification, 20 points for analysis, 5 points for conclusion, and 10 points for fully demonstrating the complete legal process in the answer) and True/False Questions are worth 10 points. Test is due via email to by 11pm Tuesday, March 14, 2017. No exceptions.


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On January 1, 2016, DT Enterprises, Inc. executed a contract with Samsung, Inc. for the sale and monthly delivery of electronic devices. The express terms of the agreement stated as follows:

Buyer shall pay a monthly fee of $20,000.00 for the sale and delivery of goods to the Buyer on the first day of each month during the life of the contract. A late fee of $100 per day shall be assessed upon the Buyer for the non-compliance with the monthly payment in full requirements of the Agreement after the 5th day of each month.

Seller shall deliver all good and products to the Buyer no later than the 10th day of each month. Complete delivery is required unless Seller gives notice to the Buyer that compliance is not possible.

On February 1, 2016, Samsung, Inc. contacted DT Enterprises by electronic mail and informed them that full delivery was not possible for the month of February 2016 by the 10th day of the month but that full delivery could be completed by February 21, 2016. DT Enterprises responded in an email that it would agree to the late delivery if Samsung agreed to reduce the charges for the month by 50%. Samsung agreed and DT Enterprises paid $10,000.00 on February 1, 2016. On March 1, 2016, Samsung called DT Enterprises and left a voicemail message informing DT Enterprises that delivery for the month of March 2016 could not be completed until March 12, 2016. DT Enterprises did not return the call. DT Enterprises paid $20,000.00 on March 13, 2016 after receipt of the products. On March 31, 2016, Samsung contacted DT Enterprises and informed them in a written letter sent by certified mail that there would be no April 2016 deliveries to any clients but that Samsung would be able to fully comply with both the April 2016 and May 2016 delivery on May 9, 2016. Samsung delivered goods for both April 2016 and May 2016 on May 5, 2016. DT Enterprises withheld its April 2016 payment and made its April 2016 and May 2016 payment on May 15, 2016. On May 21, 2016, Samsung sent a collection letter seeking late payment fees from DT Enterprises, Inc. for the months of March, April and May 2016. What do you think legally?

QUESTION NO. 2 (No IRAC format necessary):


You are the owner and operator of a new electronics store in Baltimore City. You expect to have customers that seek to purchase electronic devices ranging from cellphones, televisions, tablets, and headphones. You need to execute a contract with manufacturers for each and every product that you sell. What terms and conditions are essential in the contracts and/or purchase agreements you will have for each product?

help needed in law

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