1–The following problem is found in Chapter 17, at page 336, of Mann, R.A. and Roberts, B.S. (2009), Business Law and the Regulation of Business (10th ed.), Mason, OH: South-Western Cengage Learning:
The Park Plaza Hotel awarded its valet and laundry concession to Larson for a three-year term. The contract contained the following provision: “It is distinctly understood and agreed that the services to be rendered by Larson shall meet with the approval of the Park Plaza Hotel, which shall be the sole judge of the sufficiency and propriety of the services.” After seven months, the hotel gave a month’s notice to discontinue services based on the failure of the services to meet its approval. Larson brought an action against the hotel, alleging that its dissatisfaction was unreasonable. The hotel defended on the ground that subjective or personal satisfaction may be the sole justification for termination of the contract. Who is correct? Explain.
2– Question 10 in Chapter 18, at page 356, of the Mann & Roberts (2009) text reads:
Virginia induced Charles to sell Charles’s boat to Virginia by misrepresentation of material fact on which Charles reasonably relied. Virginia promptly sold the boat to Donald, who paid fair value for it and knew nothing concerning the transaction between Virginia and Charles. Upon discovering the misrepresentation, Charles seeks to recover the boat. What are Charles’s rights against Virginia and Donald?