Irac Case Analysis

Student Name: Chia-Chun Tsai (Mandy)

Date: September 14, 2011

Class: BUS540- Introduction to Business Contracts

IRAC Case Analysis

Case 1

Fact:

My friend went traveling in North Carolina. He rented a car first online and bought insurance for the rental car. By the time he arrived the rental car company, the officer refused to rent my friend the car unless he bought the insurance there. Therefore, my friend bought the insurance with a very high price in order to rent the car.

Issue:

Does my friend need to buy the insurance from the rental car company to rent the car?

Rules:

When my friend rented the car online, the company only said the driver need to have insurance to drive the car. But on the website, the company doesn’t say how much the insurance has to cover.

Analysis:

Generally speaking, when we drive a car on road, we need a basic insurance. My friend bought the rental car damage protection insurance from Access America. The rental company does not have the right to ask my friend to buy the insurance from their company to rental the car.

Conclusion:

My friend didn’t have to buy the insurance from the rental car company to rental the car.

Case 2

Fact:

One of my friends rented a room in a three room Condo. Before she moved in, she told the landlord that she needed to use the kitchen to cook her lunch. The landlord said that she could use the kitchen to cook but asked her not to cook too many days. After she moved in, she cooked around 3 days a week, one time per day. One month later, her landlord said she breached the contract because she cooked too many days and asked her not to cook anymore or move out.

Issue:

Does the landlord have the right to ask my friend move out?

Analysis:

On their contract, the landlord only stated not to cook too many days. But the landlord didn’t say how many days are too many. My friend cooked 3 days a week, one time per day. It means she cooks only one time every other day. People eat three...