Expert answer:Peer response
Expert answer:attached is the peer response instructions along with the discussion instructions. Please respond substantively to the peers posts and the instructors follow up question using the reading material to support claims.
response_to_peers.docx
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PEER RESPONSE INSTRUCTIONS:
Please respond to two of your classmates’ posts in a minimum of 150 words. Explain your
position and why you agree or disagree with their comments. Do you think the contracts
are fair or unfair considering the parties had a disproportionate ability to bargain? Under
UCC Section 2-302 the court has the discretion to find the contract unconscionable. Do you
think this is a good approach? What other methods to resolve this issue is
appropriate? You may ask questions to extend their thinking. Utilize the reading material
(chapter reading) to support your claims.
Discussion 1 Instructions:
Read the Ace Heating and Cooling scenario in your text and answer the following questions:
Instructor Follow-up question:
While each of the buyers was charged too much, was the buyer at all responsible for going
forward with the agreement? In other words, should courts intervene when buyers make bad
bargains?
Student 1:
Under UCC 2-302, who has the best chance of getting out of the contract due to
unconscionability?
Breanna, the single mother with poor credit has the greatest chance of getting out of the
agreement due to unconscionability. At the price of $1000 plus $500 in fees and interest, this sale
takes advantage of Breanna’s necessity to take care of her family with limit resources.
The symbol for justice features a woman wearing a blindfold illustrating that the law
should be applied the same way regardless of who the parties are. Does the UCC rule seem
to contradict this? Which approach do you think is more ethical?
Yes, to some degree the UCC is fractional to some regarding the law. However, situations are
not always judicial, and the law must take that into justification. A business object is usually
preserved differently than an individual. Taking advantage of someone’s less fortune for your
monetary gain is never a good practice and there should a way to protect individuals from this.
Note that both Glamour and Shady Rest are businesses, and courts rarely find that
contracts between two businesses are unconscionable. The rationale is that a business is a
sophisticated entity, familiar with transactions and able to protect itself. Do you think
Glamour and Shady Rest are in a comparable position regarding this contract? Why or
why not?
This makes sense to me that businesses have knowledge of contracts and are expected to
understand how to take protective steps. Shady rest is in an analogous situation as Breanna
having people’s health to care for. But they are a profit business and providing air conditioning
during extreme heat is a necessity and should be expected by their clients. As a business owner
Shady rest should have anticipated the needs for their clients. Glamour got caught in a horrible
situation, not anticipating the need yet suffering an unexpected break down. These corporations
are collecting profits indirectly from providing air conditioning. The mother didn’t collect any
profit from providing air conditioning. Bigshot is an individual who is fully understands the
contract he is signing and implicating.
Student 2:
Under UCC 2-302, who has the best chance of getting out of the contract due to
unconsionability?
Of the four scenarios, Shady Rest seems to be the one that has the best chances due to the safety
and well-being of the patients in their care. Glamour Cafe would only have lost a bit of business
due to the issue with cooling and would likely be overruled because they’re a business and are
seen to “know better.” Breanna, while she is in financial dire straits and can’t afford to pay cash
for an AC unit, still has the luxury of time to shop around. Barry seems to be the least likely to
get out of it simply because he voluntarily forewent the option to shop around due to his
“importance.”
The symbol for justice features a woman wearing a blindfold illustrating that the law
should be applied the same way regardless of who the parties are. Does the UCC rule seem
to contradict this? Which approach do you think is more ethical?
I don’t feel that the blindfolded woman is a practical illustration when you get into the weeds of
things because law, like many other facets of life, is situational. Yes. Justice should be fair, but
I have learned that there is a pretty stark difference between equality and equity. Equality is too
overarching and can lead to some still being treated unfairly. Equity is much more situational, as
is the law. I feel that the UCC rule seems to lean more in the direction of equity and I would
definitely argue that equity is much more ethical than equality. My bottom line being, your
specific situational conditions need to be weighed in when making a determination.
Note that both Glamour and Shady Rest are businesses, and courts rarely find that
contracts between two businesses are unconscionable. The rationale is that a business is a
sophisticated entity, familiar with transactions and able to protect itself. Do you think
Glamour and Shady Rest are in a comparable position in regard to this contract? Why or
why not?
I do not feel that they are in a comparable position because, even though they are both facing
problems if they cannot cool their facilities in a timely manner, the nature of the problems are
vastly different. If Gamour cannot cool their shop quickly, it generally means some lost
business. As long as it doesn’t go on for a protracted period of time, the lost business should be
fairly easy to recover. If Shady Rest cannot cool their facility quickly, it becomes a health and
safety issue, potentially leading to the death of a patient and lawsuit by the grieving
family. Therefore, Shady Rest appears to be more in need of protection from an unconscionable
contract in this situation than Glamour.
…
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