Case 9.2 Bilateral or Unilateral Contract
G.S Adams, Jr., vice president of the Washington Bank & Trust Co., met with Bruce
Bickham. An agreement was reached whereby Bickham agreed to do his personal
and corporate banking business with the bank, and the bank agreed to loan Bickham
money at 7.5 percent interest per annum. Bickham would have ten years to repay
the loans. For the next two years, the bank made several loans to Bickham at 7.5
percent interest. Adams then resigned from the bank. The bank notified Bickham
that general economic changes made it necessary to charge a higher rate of interest
on both outstanding and new loans. Bickham sued the bank for breach of contract.
Question 1. Was the contract a bilateral or a unilateral contract?
Question 2. Does Bickham win? Why does he win or lose?
Case 9.5 Ethics Case
The Lewiston Lodge of Elks sponsored a golf tournament at the Fairlawn Country
Club in Poland, Maine. For promotional purposes, Marcel Motors, an automobile
dealership, agreed to give any golfer who shot a hole-in-one a new Dodge
automobile. Fliers advertising the tournament were posted in the Elks Club and sent
to potential participants. On the day of the tournament, the new Dodge automobile
was parked near the clubhouse, with on of the posters conspicuously displayed on
the vehicle. Alphee Chenard, Jr., who had seen the promotional literature regarding
to hole-in-one offer, registered for the tournament and paid the requisite entrance
fee. While playing the 13th hole of the golf course, in the presence of the other
members of his foursome, Chenard shot a hole-in-one. When Marcel Motors refused
to tender the automobile, Chenard sued for breach of contract.
Question 1. Was the contract a bilateral or a unilateral contract?
Question 2. Does Chenard win? State reason for your decision.
Case 10.7 Ethics Case
Mighty Morphin’ Power Rangers was a phenomenal success as a television series.
The Power Rangers battled to save the universe from all sorts of diabolical plots and
bad guys. They were also featured in a profitable line of toys and garments bearing
the Power Rangers logo. The name and logo of the Power Rangers are known to
millions of children and their parents worldwide. The claim of ownership of the logo
for the Power Rangers ended up in a battle in a courtroom.
David Dees is a designer who works as d.b.a. David Dees Illustration. Saban
Entertainment, Inc. (Saban), which owns the copyright and trademark to Power
Rangers figures and the name “Power Ranger,” hired Dees as an independent
contractor to design a logo for the Power Rangers. The contract signed by the parties
was titled “Work-for-Hire/Independent Contractor Agreement.” The contract was
drafted by Saban with the help of its attorneys; Dees signed the agreement without
the representation of legal counsel.
Dees designed the logo currently used for the Power Rangers and was paid $250 to
transfer his copyright ownership in the logo. Subsequently, Dees sued Saban to
recover damages for copyright and trademark infringement. Saban defended,
arguing that Dees was bound by the agreement he had signed.
Question 1. What does the adage “ A contract is a contract is a contract” mean??
Question 2. Does the doctrine of equity save Dees from her contract? Explain your
answer
Case 11.6 Infancy Doctrine
Lindsey Stroupes was 16 years old and a sophomore in high school. Anthony
Bradley, the manager of a Finish Line, Inc.’s store in a mall, offered Lindsey a position
as a sales associate, which she accepted. Lindsey signed an employment contract
that required that all claims against Finish Line be submitted to binding arbitration.
Shortly after being hired, Lindsey quit and she and her parents filed a civil action in
U.S. district court against Finish Line, Inc., alleging that Bradley sexually harassed
Lindsey in violation of Title VII of the Civil rights Act of 1964. Finish Line filed a
motion to dismiss Lindsey’s lawsuit and to compel arbitration of her complaints.
Lindsey argued that the arbitration agreement was voidable by her under the
infancy doctrine because she was a minor when she signed the contract.
Question 1. What is the infancy doctrine?
Question 2. What is the public policy that supports the creation of the infancy
doctrine?
