Critical Legal Thinking Case Study

  1. Case Study 2

    Ron supervises delivery of flowers for a wholesale distributor of fresh flowers, Flowers. Inc. In order to accommodate one of the company’s best customers, Ron offers to immediately rush a delivery of fresh peonies. All of the delivery trucks are currently out on delivery. Ron directs an employee, Ruth, to use her own vehicle to deliver the flowers.Ruth carelessly parks her car on a steep hill, leaving the car in neutral and failing to engage the parking brake. The car rolls down the hill, knocking down an electric line. The sparks from the broken line ignite a grass fire. The fire spreads until it reaches a gasoline station one mile away. There is a tanker truck off-loading gasoline to the station’s gas tanks. The fire ignites the gasoline being pumped into the tanks, and one of the tanks explodes, causing part of the station structure to fall on and injure a passing motorist, Jim.

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    1. Can Jim recover damages from Ruth; from Flowers’ Inc? Why or why not?
    2. Identify the cause of action. Discuss each element of the cause of action, and relate them to your assessment of whether Jim has a cause of action against Ruth.
    3. Discuss the legal doctrine under which Jim might also recover from Flowers, Inc.

    Case Study 3

    On June 20 Frank had his workers open the boxes of casters to inspect them and place them in the appropriate space in the storage facility. Upon inspection, it was determined that nearly all of the casters were defective and unusable. This caused the company to default on several contracts for rolling cabinets as it ran out of casters before it could secure replacements for the defective ones. Cabinet Co. was able to replace the casters at a 15% increase in cost.

    RubricDiscuss Cabinet Co.’s remedies, duties, and obligations with respect to the casters.

  2. Frank is the receiving dock supervisor for Cabinet Co., a company that manufactures metal storage cabinets. His job is to supervise the inspection and stocking of components and materials used in the manufacture of the cabinets as they are delivered, and to notify the accounting department so invoices can be timely paid. On June 1, the company received a shipment of casters used in the manufacture of rolling cabinets. This new shipment would not be needed for three weeks, as there were plenty of casters located on the assembly line. The storage facilities where the casters would normally be placed were under renovation, and there would be no space to store this latest shipment of casters until June 20. Frank decided to leave the unopened boxes of casters in a secure and covered corner of the receiving dock. He did, however, notify the accounting department that the casters had been received. The accounting department paid the $8,000.00 invoice in time to earn the discount if paid within ten days.
  3. Discuss Cabinet Co.’s remedies, duties, and obligations with respect to the casters.
  4. Case Study 4

    Roger is a director of a major car manufacturer. This is one of the few remaining car companies yet to introduce a sport utility vehicle. Roger convinces the board to investigate forming a new division to design, build, and market a sport utility vehicle. Roger also convinces the board that the first sport utility vehicle that the division introduces should be the largest yet sold to the general public.The board set up a committee to do some research, and this committee hired a marketing consulting firm. The committee and the consulting firm both had a few reservations about such a large vehicle, but the data showed that the market could most likely support it. After much discussion, the board of directors voted in favor of creating the new division and the huge sport utility vehicle as its first product. The vote was 9 to 6 in favor of the plan.

    Shortly before this vehicle was introduced, there was a major oil supply disruption that caused the price of crude oil to nearly triple. Few purchasers were found for the huge new sport utility vehicle and the company lost considerable money. A shareholder files suit against Roger claiming he violated his duty to the corporation by convincing the board to build and market the large SUV.

    Discuss Roger’s duties as a director and any defenses he has to the lawsuit.

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