Scenario Synopsis

Scenario Synopsis Week Four

University of Phoenix

BUS/415

August 2, 2010

Scenario Four

            In the review of Scenario Four, Todd is using the online ordering service provided by Foodmart. Foodmart states in its online ordering service contract, “advertized prices do not apply to online purchases, and orders are limited to inventory on hand at the nearest store” (University of Phoenix, 2010, p. 15). Todd sees an advertisement in the newspaper that Foodmart is discontinuing a chocolate sauce that he uses for his catering business. All of the remaining chocolate sauce is at a reduced price. Todd tries to make an online purchase of all the available chocolate sauce from the nearest Foodmart store. Although the store has 10 cases of the sauce in stock, Todd is told the store does not have any sauce. When Todd requests that the store obtain the sauce from other Foodmart stores within the 10-mile radius for delivery, the store refuses stating the online contract as the reason.

            The Foodmart contract includes conditions of performance.  Foodmart requires the customers to be within the 10-mile radius, advertised prices do not apply to online purchases, and limits orders to inventory on hand at each store. These are conditions that Foodmart requires their customers to agree to when using the online ordering service.

            Although Foodmart was dishonest to Todd about the inventory, the store does not have to sell the chocolate sauce to Todd at the reduced price advertised in the newspaper. Foodmart is not liable for the potential sales lost by Todd because the online contract clearly states the conditions of the contract. However, it would likely be cheaper for Foodmart to settle the dispute by letting Todd purchase all the remaining chocolate sauce at the discounted price, rather than pay attorney’s fees to fight the lawsuit.

References

Berry, L. (2005). Contracts with minors in the entertainment industry. Retrieved August 2,...