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Question # 1


Here is the link of blog post on legal bullying

A) Discuss why this story is a good example of strategic legal bullying, identifying why the case involves a weak/ non-existent legal claim and how the high costs of the legal system are being exploited for advantage.

B) Put yourself in the position of the legal bullying target in the story. Describe what measures you would take to fight back and neutralize the legal threat. Be creative, specific and realistic given your limited resources.]

Question # 2

Attached are the Contract (Part A) and Case (Part B) of Nutrisoya v. Sunrich. This case concerns an actual sales contract between two companies and a dispute that arises under that contract. Thoughtfully read the annotated Manufacturing and Packaging Agreement between Sunrich Foods, Inc., and Nutrisoya Foods, Inc., which follows at pages 1-10 Part A.

In Part (B) of the Case, you will receive information about the dispute between the parties and its adjudication. Please consider the legal issues and business decisions presented. This case is intended to demonstrate the relevance of topics covered in this course and the complexity of disputes in the real world, and to reinforce your understanding of legal and broader business issues.

I. (a) Identify which of the following important term(s) remained open in this sales contract: Price,Payment, Delivery, Contract Duration, Quantity.

(b) Now fill in those terms applying the gap filler rule using specific amounts or length of time.

II. Sunrich plans to sell soy-based beverages to Canadian retailers who are Nutrisoya customers. Identify the applicable clause in the contract that would determine whether Nutrisoya has a breach of contract claim if Sunrich goes ahead with this plan, and discuss whether Sunrich would face contract breach liability under this scenario.

III. John Doe purchases a Nutrisoya rice beverage, contracts salmonella and then suffers severe permanent injuries. A jury awards Doe $5,000,000 in damages under strict product liability and holds both Sunrich and Nutrisoya jointly and severally liable.
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A) What is the value of the total risk exposure to Sunrich under this scenario?

B) Identify the two clauses in the contract that inform your answer.

IV. In November 2005, Sunrich informed Nutrisoya that it might be discontinuing its rice milk business. Identify two different reasons why you think Sunrich made this statement.

V. If you were Sunrich, how would you modify your future contracts with customers to prevent disputes of this nature? Which legal pathway would this approach most resemble and why?

VI. a) Are clauses 6.1 & 6.2 vague?

b) Does 6.1 requires Nutrisoya to continually provide 3 month forecasts?

c) Was Nutrisoya in breach of the contract the minute they failed to provide the “written plan confirmation” for the following months under 6.2?

i) If so, why didn’t Sunrich object, and terminate the contract?

ii) What other legal contract doctrine would come into play?

VII. Was there any evidence that Sunrich acted in bad faith, under the UCC?
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