...Case Scenario: Big Time Toy Maker 1. At what point, if ever, did the parties have a contract? Our textbook defines a contract as “a promise or a set of promises enforceable by law” (). A contract does not necesarily has to be in writing. A contract can be oral and enforceable. Big Time Toymaker and Chou took part in an oral contract. Big Time Toy Maker and Chou held a meeting where an oral distribution agreement was reached. In addition, Big Time Toy sent an email to Chou confirming the agreement. 2. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? The facts that may weigh in favor of Chow are the exclusive negotiation rights for a 90-day period, the oral agreement that was reached at the meeting and the email he received from Big Time Toy. The facts against Chou would be that there is never an actual written agreement drafted by Chou. In addition, the exclusive negotiation rights agreement stipulated that no distribution contract existed unless it was in writing. Finally, no written agreement was turned in within the original 90-day period stipulated in the exclusive negotiation right agreement. 3. Does the fact that the parties were communicating by e-mail have any impact on your analysis in Questions 1 and 2 (above)? Yes, because the email represents the acknowledgment by both parties of the distribution agreement made in the meeting despite the e-mail failing to mention the word “contract.” In addition...
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...Big Time Toymaker (BTT) is a toy company that sells products to the United States, Canada and Mexico. Chou just created Strat an new strategy game. BTT is interested in distributing this game so they entered into a deal where Chou got $25,000 for negotiation rights for ninety days. This agreement specified that all contracts were to be in writing and there would be no verbal contract. Before the time was up BTT, sent Chou an email that detailed the specified the agreements reached upon their meeting, except for the agreement that Chou was to write up the draft, not BTT. Chou never responded and later BTT sent him a fax, asking for the draft, which Chou again never responded to. At what point, if ever, did the parties have a contract? According to the scenario, both Big Time Toymaker and Chou did have a contract, when they meet and agreed on all the terms and conditions of the distribution, that would be a contract, but because they agreed that there would be no contract unless it was in writing then it can be assumed they never were in contract because there was never a document they both acknowledge and accepted as a contract. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? The most important fact weigh in against Chou is that he did get a document before the ninety days expire, this document seemed to express everything that they wanted as agreed in their meeting yet he never responded. The reason why he did not...
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...Submitted by Rob Lowe Individual Case Scenario: Big Time Toymaker | Read the “Theory to Practice” section at the end of Ch. 6 of the text.Answer Questions 1 through 6 based on the scenario in the “Theory to Practice” section, and complete the following in your response: * At the end of the scenario, BTT states that it is not interested in distributing Chou’s new strategy game, Strat. Assuming BTT and Chou have a contract, and BTT has breached the contract by not distributing the game, discuss what remedies might or might not apply. * Explain your answers and refer to Section 7-6 in Ch. 7 for support.Submit your answers. | 1. At what point, if ever, did the parties have a contract? After reading the scenario, I believe there was a contract when BTT sent an email to Chau referencing the intital terms of agreement. Here’s the verbage from the scenario… “a BTT manager sent Chou an e-mail with the subject line “Strat Deal” that repeated the key terms of the distribution agreement including price, time frames, and obligations of both parties.” This is where the deal became legal binding. 2. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? Mutual Assent. Both parties had verbally agreed to the deal. A reasonable person would have assumed the deal was going to go through because BTT paid Chau 25K for negotiation rights for a 90 day period. At this point there was an enforceable agreement between...
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...1. At what point, if ever, did the parties have a contract? Upon reviewing this situation, Chou and Big Time Toymaker had participated in an oral agreement. During a conference between Chou and BTT a distribution agreement was reached, an e-mail was also directed by BTT to Chou confirming the significant terms of the verbal contract agreed upon during the conference. 2. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? In Chou’s situation, these facts may be in favor for him would be the verbal agreement and email Chou received from BTT. These facts however, are working against Chou. There is never an actual written contract created by Chou or that Chou arrived into a private contractual rights agreement with a 90 day probation with it explicitly stating, “No contract exists unless it is in writing.” Finally, no transcribed contract was turned in within the original 90-day time frame specified in the private negotiation. 3. Does the fact that the parties were communicating by e-mail have any impact on your analysis in Questions 1 and 2 (above)? Of course, the e-mail received signifies the response by both Chou and BBT of the dispersal agreement made in the meeting even though the e-mail had failed to mention the word “contract.” 4. What role does the statute of frauds play in this contract? Fraud has a role in case and it applies to this situation. “Under the Uniform Commercial Code, the statute...
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...Big Time Toy Maker Law / 421 Big Time Toy Maker 1. At what point, if ever, did the parties have a contract? Yes, both parties had a valid contract when they agreed upon the terms of the deal. They both agreed upon the terms and Chou accepted the twenty five thousand dollars from Big Time Toymaker. A written agreement was not needed due to BTT being only a distributer and not a producer. 2. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? Chou was paid twenty five thousand dollars by BTT for the negotiation rights to his house board game. This could have given Chou the impression that the contract was finalized. This would be considered a bilateral contract due to two promises and two performances. BTT would perform by distributing the product but would first promise to pay the twenty five thousand dollars. Chou promised to sell the negotiation rights and the performance was to turn them over to BTT for twenty five thousand dollars. 3. Does the fact that the parties were communicating by e-mail have any impact on your analysis in Questions 1 and 2 (above)? Since both parties were communicating through email, it does not have an impact on my analysis because of the factors stated earlier of a binding contract. The emails do reinforce the contract in the courts. 4. What role does the statute of frauds play in this contract? The statue of fraud applies to a sale of goods above 500 dollars. Since this...
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...Case Scenario Big Time Toy maker Aragon Week4 Instructor Rosale Lopez April 16, 2014 Level One Heading Option Contract and Distribution Agreement After reading this scenario, Big time toy maker and Chou did take part in an oral contract. In a meeting between BTT and Chou oral Documents were signed which bind both parties to fulfill certain obligations. A written contract was not necessary since this was a contract mainly dealing with services to disseminate the game, not a production contract or a sales contract Had it occupied a good contract to buy, sell which under which under the Statutes of Frauds would not be a contract until all the terms were not put in writing: that occurred when the supervisor from BTT emailed the terms which would have included his electronic signature and thus would have sealed the contract between the two. Furthermore whenever the contract is under (general) law besides the (mailbox) rule could say it went into effect when it was sent and not received. Into effect when was sent but not received. The analysis of the case verifies that the two parties were definitely not involved in a binding of the contract they never had a written contract or documented legal frame work. But the parties did have a...
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...Big Time Toy Maker Could BTT avoid this contract under the doctrine of mistake? Explain. Would either party have any other defenses that would allow the contract to be avoided? Chou could take BTT to court for breach of contract. When BTT paid Chou $2,500 for, and Chou gave BTT exclusive negotiation rights for 90 days, they both mutually assented to a legally binding agreement. Under the Uniform Commercial Code (UCC), if the contract of the sale of goods is $500, or more, and any lease transactions for the sale of $1000, or more, the statute the statute of frauds apply (Melvin, 2011). The $2,500 Chao received met this requirement. When BTT sent Chou an email 3 days before the expiration of the 90 day agreement, which included the price, time frames, and the obligations of both parties, it signified to Chao that BTT still intends to do business with Chao, and meets all the requirement for a contract. Chao's intentions were to draft the contract as agreed upon, but Chao made a unilateral mistake, he had an erroneous belief that the email between BTT and Chao, with all the terms already in it, plus the mutual assent of the two parties, was the actual contract. Thirty days passed before BTT, requested the distribution agreement contract from Chao, by fax. Up to this point, Chao thought he already had an agreement through the email. By BTT sending the fax, it signifies to Chao that the BTT wishes to proceed with the business transaction. Chao sends the draft immediately...
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...Case Scenario: Big Time Toy Maker LAW/421 May 5, 2015 Case Scenario: Big Time Toy Maker At what point, if ever, did the parties have a contract? The two parties, Big Time Toymaker and Chou entered into a contract when they came to the initial agreement where Big Time would pay $25,000 for exclusive negotiation rights for a 90 day period. What facts may weigh in favor or against Chou in terms of the parties’ objective intent to contract? The biggest factor in favor of Choe is that in the initial exclusive negotiation agreement, it was stated that no distribution contract existed unless it was in writing. Even though Chou never drafted an actual contract, the manager of Big Time sent an email with all of the details of a contract to him. Since all four parts of a contract existed, this is a contract, even though the email did not say so. Does the fact that the parties were communicating by e-mail have any impact? The fact that the parties are communicating by email gives tangible proof to the agreement being made and proof of the 4 parts to a contract. What role does the statute of frauds play in this contract? The Statute of Frauds requires contracts to have signatures. If this contract is found to fall in this category, which it may since the value is over five hundred dollars, it may be found invalid. Now, depending on what state, the fact that both parties responded via e-mail, their name signed at the end may be considered an electronic signature...
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...Matrix and even a vast majority of all the more recent animated films such as Toy Story or Monster’s Inc have all used computers to enhance the experience of the movie. Movie goers have been enjoying the quality that these technologies have been adding to movies for years, maybe even longer than some might know of. It’s said that John Whitney, Sr. was the first to bring computer graphics to the film industry with his slit-scan technology creating the visually powerful “into the monolith” imagery of 2001: A Space Odyssey. Over the years computers would keep proving there worth in movies such as Tron, the film many people associate with the birth of Hollywood computer graphics. In 1985 Pixar produced what is said to be the first CGI character animation in film with the stained glass window come to life effect in the Young Sherlock Holmes. Disney, the maker of popular children’s movies of all kinds would later acquire Pixar and take animated movies from the classic sketched scenes of Cinderella and Bambi to the first full length CGI movie, Toy Story. Toy Story changed the way of viewing for animated movies making the characters seem more realistic and giving more detail to the worlds created in the movies. Another big maker of all CGI movies that would prove its worth would be DreamWorks Animation which would follow in the steps of the new Disney/Pixar to bring such movies as Antz and Shrek to the big screen. Today these companies are still going strong with multiple movies being...
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...China. The Ohio Art Company was perhaps well known to be one of the top selling toys producing company of all time. In the 1990s, Etch-A-Sketch, the maker of the popular drawing board, was faced with a sluggish toy market and strong pressure to keep prices low. Consequently, the company made the unpopular decision to outsource production in December of 2000 to Kin Ki Industrial, a leading Chinese toy maker, laying off 100 U.S workers in the process. The closure of the company was expected by the employees but the thought of it moving was not emotionally easy since the company was the one holding the community together. The small Ohio town of Bryan where the manufacturing took place faced significant effects from the outsourcing. The population declined heavily and the tax base of Bryan, Ohio was severely eroded. Homes were also on auction and there were notices of foreclosures on the local paper. The rationale behind the decision for outsourcing was mainly cost saving. First and foremost the company wanted to lower their wages. Chinese factory workers made $75 per month compared to $1500 per month for U.S factory workers. On top of that, there were also low overhead costs for plants, maintenance, electricity and health benefits. All in all, they had to keep the cost of Etch-A-Sketch under $10 in order to compete with big retailers such as Walmart and Toy “R” Us. In December 2003, New York Times published a report stating that there were dismal pictures of working conditions...
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...marketing of violent toys, games and entertainment to children. Position paper : Reduce the marketing of violent toys, games and entertainment to children. DeVry University Engl-112-61206: Composition Professor: Jamie Pacton Student: Valeriya Zakreski Violence is a physical action to injure people or property. We can read a lot of information and watch news about violence. We can say that violence is a part of our life and he human condition. But the worst fact that today, our children are involved to this part of human condition. From child abuse to murder, to school-yard bullying, violence takes its toll, often with children being the innocent. But what can cause the violence between the children? Today we can hear a lot of information about it, as: toy guns and video games affect on the children’s health and behavior, violent homes lead children to the crime. “More than 1,000 studies on the effects of television and film violence have been done over the past 40 years. The majority of these studies reach the same conclusion: television and film violence leads to real-world violence. By age 18 an American child will have seen 16,000 simulated murders and 200,000 acts of violence.” Senator Orrin G. Hatch, Utah, Chairman Committee on the Judiciary. September 14,1999. Children, Violence, And the Media. A report for Parents and Policy Makers (http://ratemyschoolboard...
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...LEGO is one of top toy-making companies established in Denmark. Its core and iconic product is the LEGO brick with its own unique design, interlocking tubes, which can expand building possibilities. In 2004, LEGO started to outsource 80 percent of its production to Flextronics, a large Singaporean manufacturing service provider, but after three years, LEGO had to end this cooperation. Therefore, we are going to do a deeper analysis of this case and have a better understanding of outsourcing. LEGO had two main expectations from the collaboration with Flextronics. The first one was that LEGO intended to run a cost-saving business model by licensing out 80 percent of production to Flextronics. Before outsourcing to Flextronics, LEGO conducted its production mainly in Denmark, the United States, Switzerland and so forth, which are high-cost countries. In order to reduce production cost efficiently and response the global trend that nearly 95 percent toy production went to Asian countries quickly, LEGO chose Flextronics as its partner to accomplish the goal. From 2004 to 2006, some of production capacity in Denmark and Switzerland were moved to Flextronics’ plants in Hungary, LEGO handed over the operational control authority of Kladno site in the Czech Republic to Flextronics, and Flextronics opened a new plant in Mexico; instead, LEGO shut down the factory in the United States. Another expectation that LEGO wanted from the relationship of Flextronics was that the LEGO group would...
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...character-branded goods in Japan and other parts of the world. Sanrio initially used the character to adorn petty merchandise like coin purses and pencil boxes targeted at small girls. However, after Hello Kitty became hugely popular, Sanrio extended the brand to a variety of other products. Sanrio Company, Ltd., based in Tokyo and with distribution throughout Japan and Southeast Asia, the Americas and Europe. In the Americas today, over 4,000 stores to sell Sanrio character merchandise. This includes Sanrio boutique stores Sanrio merchandise has many different kinds of categories including stationery, school supplies, bags, accessories, room décor, candy, and plush characters. The global toys and games market grew by 2.7% in 2008 to reach a value of $60.8 billion. In 2013, the global toys and games market is forecast to have a value of $69.1 billion, an increase of 13.7% since 2008. Sanrio’s marketing strategy is to raise the sale revenues in the increasing market condition as well as to maintain our loyal customers and attract more male customers; Sanrio will create different kinds of images of products to fit into different range of age, and repackage the old neutral characters such as Badtz-Maru (a male penguin), Keroppi(a frog), Shinkansen (a bullet train) to increase the male market on the seasonal promotion. There are so many competitors in the industry. Therefore, Sanrio’s products must be fresh and various thereby increase the competitiveness. Sanrio’s price strategy...
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...negative externality; negative externalities occur when a decision or activity imposes costs on anyone that is not involved in the making of the decision, that is if a decision imposes any kind of external cost, which are costs you impose on others, then the social cost will exceed the private cost, which is the cost to the decision maker. On the other hand, when the third party benefits from an activity in which they are not directly involved, the benefit is called positive externality. Negative externalities occur in our every day life; you see, since humans are a very self centered specie we tend to think about the cost something would have on us and very rarely on what it would have on others. Even consumers do not take cost of externalities into account when buying a product that may have a negative externality. So, when a negative externality occurs in an unregulated market, producers don’t take responsibility for external costs, these costs are just passed on to society and to the government’s hands. One very common example of a negative externality is pollution. If for example, you have a factory that operates near a coast, making truck toys, and as a consequence of your manufacturing you start dumping a lot of waste into the coast, then this would be a terrible cost for people who live near by and along the coast of that ocean....
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...KB Toys’ July 1, 2010 Abstract Why did KB Toys fail? KB Toys was offering toys at a discounted price like consumers where looking for but was that enough? KB Toys did restructures as well as took help from investment companies which brought a profit for a short time. While all of this was a quick fix the revenue never stayed constant but continued to drop. The store stayed in the original idea but never moved forward with the changes of times. Toys where out dated and there was lack of organization. KB Toys’ KB Toys started out as a candy wholesaler in 1922 (KB Toys, nd).Toys was not what the Kaufman Brothers, KB, where looking for however when a debt could not be paid by a client Kaufman Brothers inherited a wholesale toy company during the 1940s (KB Toys, nd). KB Toys changed their name a few times through out the company’s life span. Kay-Bee Toy & Hobby Stores was the first name to take life and sale items at discount prices. By 1977 the store had changed focus to just toys and it was such a big success the name was changed to Kay-Bee Toy and Hobby Shops, Inc. (KB Toys, nd). In 1981 the company is purchased by Melville Corporation and is a division known as Kay-Bee Toy Stores (KB Toys, nd). By 1996 the chains of stores are sold to Consolidated Stores Corporation (KB Toys, nd). Once Consolidated bought Kay-Bee the image of the company needed to be enhanced, thus the KB logo was created (KB Toys, nd). KB toys had a great idea with providing toys at a discounted...
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