Sale and Resale of EPI Products Memorandum

THE ONLY SOURCES TO BE USED: LA1 Saylor: Advanced Business Law and the Legal EnvironmentChapters 1,3,4:Saylor: The Legal and Ethical Environment of BusinessChapter 1:LINKS:Common Law v. Civil Law SystemsPolice Powers of StatesAlternative Dispute Resolution (ADR)The U.S. ConstitutionJurisdiction and Internet SalesLA2 Saylor: Advanced Business Law and the Legal EnvironmentChapter 7:LINKS:Civil and Criminal Law ComparisonElements of Negligence SummaryPremises liabilityIntroduction to Torts (video – 15 mins)Maryland Workers’ Compensation LawLA3 Instructor Notes – very important to read!(SEE ATTACHED ON SP)Review assigned materials in Week 2Saylor: The Legal and Ethical Environment of BusinessChapter 17 LINKS:Manufacturing Defect v. Design DefectWarranties and Product LiabilitySummary of Product Liability Law: click link below, please/content/enforced/375136-M_001041-01-2192/Business Law I (Week 3) (1).pdfLA4 Saylor: Business Law and Legal EnvironmentChapters 8,9,10,11,12:LA5 Law for Entrepreneurs, Saylor Academy, 2012Chapters 13, 15.1, 16.3 LINKS:Summary of Contract Law, Statute of Frauds: click on link below, please/content/enforced/375136-M_001041-01-2192/Business Law I (Week 5).pdfLA6 Saylor: Advanced Business Law and the Legal EnvironmentChapters 8,9,10,11 LINKS: CISG: Guide for Business Managers and Attorneys in Applying CISGLA7 Law for Entrepreneurs, Saylor Academy, 2012 Chapter 20, 21Principal and Agent RelationshipsTermination of Agency RelationshipsLA8 Choosing a Business StructurePartnershipsGeneral CorporationLimited Liability CompanyPurposeThe purpose of this project is to research, analyze and apply tort law, product liability law, agency and contract law and their associated potential risks and liabilities in business. The project requires you to identify and analyze legal issues and to make recommendations.You will also develop skills in critical thinking to create an in-depth comprehensive analysis.The project relates to the concepts covered in weeks 1-7. You should refer to assigned materials in earlier weeks of the course, including Instructor Notes in Week 3 and other weeks.Outcomes Met by Completing this Assignment:recommend appropriate actions in the business environment based on an understanding of sources of law, legal process and procedure, and available remediesanalyze contractual rights, obligations, liabilities, and remedies in the business environmentanalyze tort rights, obligations, liabilities, and remedies in the business environmentBackground: Things are moving quickly for the GC owners. They are almost ready to open operations. GC will be purchasing EPI products exclusively for use in GC cleaning services and will be reselling some EPI products to the public. The GC owners have some final concerns about these sales contracts and about potential liabilities that could arise from the use of EPI products.Winnie and Ralph asked you to complete research and prepare some instructional materials to present in a memorandum for discussion among Winnie, Ralph, the GC owners, and you at a meeting. You decide to create hypothetical scenarios for analysis and later discussion at the meeting. Instructions:Part I. Use of EPI Products in GC Cleaning ServicesReview the tort of product liability in week 3 Overview, Instructor Notes. Review the scenario below and respond to the items following.Scenario: GC contracted to clean the ABC Industries, Inc. (ABC) office building using EPI cleaning products. GC assigned several experienced GC employees to the job. While cleaning the office windows with EPI’s Clear Light window cleaner, the cleaner left a sticky film on several of the windows. The cleaner was used exactly according to product directions. The sticky film could not be removed except by scraping which left permanent scratches on the windows. GC had used Clear Light many times before with no damage or problems.ABC expects GC to pay to replace the windows and sues GC to recover costs of replacing the windows. Note: ABC sued only GC. Analyze and discuss whether GC has any potential liability under product liability law for damage to the windows as described in the scenario:Describe any possible product liability claim(s) for which ABC could sue GC and why/how the claim(s) could apply to GC. 2-3 paragraphs minimumAnalyze and describe whether GC is likely to be found liable for the claim(s) identified in #1 above and why.