Business Law Case Analysis

Davey Jones has had an incident with a used ship he purchased from Captain Jack Sparrow Inc., where upon the first voyage with the boat in calm seas he found it was taking on water and required rescue. Davey Jones is considering litigation against Captain Jack Sparrow Inc. for this incident. If this were to take place, Davey Jones would be the plaintiff and Captain Jack Sparrow Inc. would be the defendant. It is imperative to note that litigation cannot be taken against the salesperson who sold Davey Jones his boat. She is protected by vicarious liability because she was acting as an agent of Captain Jack Sparrow Inc. and acted fully within the ordinary course of employment (DuPlessis, Enman, O’Byrne, & Gunz, 2011) including allowing Davey Jones a choice of boats to purchase and allowing him to inspect each one prior to purchase.

There are a few relevant legal areas which apply to this scenario. The first is contract law. Upon the sale of the boat between Davey Jones and Captain Jack Sparrow Inc. a contract was created, whether it was written or oral is irrelevant but because a good was sold and received, there is no doubt a contract was made. This contract follows the objective standard test proving it was made in good faith (DuPlessis et al.), and both parties had equal bargaining power—Davey Jones was able to negotiate the original asking price down to what both parties found to be acceptable. Upon a review by a Judge, Davey Jones may request that an implied term (DuPlessis et al.) be included stating that the boat should have been sailable under the conditions it sunk, this will be reviewed in the section pertaining to The Sales of Goods Act. It may be possible for the defendant to prove that upon point of sale they were under economic duress (DuPlessis et al.). Captain Jack Sparrow Inc. was under great pressure to sell the boat because it was used and they could not afford to keep it in storage.

The second relevant legal area which...