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Letisha (as lessee) and the salesman for Sudson (as lessor) sign the front page of the contract and Letisha retains a copy of the signed agreement. Letisha uses the machines for the five-year period and just a few weeks prior to the end of the term, calls Sudson to provide them with a courtesy notice saying she is not going to renew her agreement. The operator replies that since she failed to provide the 90-day written, certified notice of termination, the lease will be renewed for three five-year terms or another 15 years. Letisha says that she never saw that clause. The operator replies that it was her obligation to read the back page of the agreement and Sudson will require her to make monthly payments for the next 15 years. Letisha does not know what recourse she now has. Research whether Letisha has a contract formation or enforcement defense based on the legal and ethical use of automatic renewal clauses in lease agreements, using your textbook, the Argosy University online library resources, and the Internet. Based on the facts of the case and research, write an analytical paper.
If Letisha does not pay and Sudson sues her for breach of contract, what legal arguments could be raised in Letisha’s defense against the enforcement of the automatic renewal clause? What legal arguments could be raised by Sudson in support of the enforcement of the automatic renewal clause against Letisha? What ethical issues are raised, if any, by Sudson’s practice of using the automatic renewal clause in their lease agreements? Does the Uniform Commercial Code Article 2A apply in this case? Are there any government or private entities available to Letisha for lodging complaints about businesses which treat consumers unfairly? If Sudson sues Letisha for breaching the contract’s automatic renewal clause, what do you think the outcome of the case will be? Mathis, Inc. is a designer and manufacturer of women’s clothing and specializes in high-end women’s winter fashions. Normandale, a retailer, sells high-end products in malls throughout the country.
With Mathis’s high costs, Normandale is unable to make a profit from the sale of Mathis’s products. Countess Lori-Ann (CLA) is a Mathis competitor. Normandale sends photographs and samples of the Mathis line to CLA and instructs them to make an identical line at a lower price. Mathis labels are easily discernable in the photographs and the samples have the Mathis label attached. CLA copies the Mathis line for Normandale. 3 million, an increase of nearly 50% over its sale of Mathis products. Mathis discovers that Normandale is selling counterfeit products, and sends several cease-and-desist letters to them—to no avail. Mathis then sues Normandale alleging Normandale has engaged in illegal conduct. Normandale counters that it did nothing wrong. Research business law in regard to protection of intellectual property using your textbook, the Argosy University online library resources, and the Internet. Based on the facts of the case and research, write an analytical paper. Was it ethical for Normandale to sell the alleged knock-off products at a lower price? What federal or state laws protect owners of intellectual property? How do they apply here? What damages, if any, has Mathis suffered because of Normandale’s conduct?