Workplace Application Report Format:
1. Module: Topic / Legal Issue:
Topic: Genuineness of Assent
Issue: The webmaster for Disney, accidentally posted 2 season priced tickets for $58.00 instead of the original price of $258.00. Hundreds of people already purchased these tickets through their website before the site was shut down. How can Disney void these tickets without having to be liable and sued from the customers?
2. Why does this topic apply to your workplace? The internet has become one of the top places to purchase goods and services. However, there have been many mistakes in descriptions and pricing in various sites which may benefit or harm both the buyer and the seller. Webmasters are not perfect and may make mistakes on behalf of big companies such as Disney.
3. IRAC Analysis:
Issue: Is there a cause of action for Disney’s mistakes of fact and negligence?
Rule - Unilateral Mistakes of Fact: A contracting party makes a mistake as to some material fact. Only a mistake of fact allows a contract to be avoided. If the other party to the contract knows or should have known that a mistake of fact was made, the contract may not be enforceable (Cite: West Law p. 257.)
Rule – Negligent Misrepresentation: He or she fails to exercise reasonable care in uncovering or disclosing the fact or does not use the skill and competence that his or his business or profession requires (Cite: West Law p. 264.)
Application:
Because of the employee’s mistake and possibly negligence, Disney may no have any right to get a relief from the contract. Therefore, the customers have the right to keep the tickets for the price of $58.00. However, some can argue that those who purchased the tickets may in fact be aware of the mistake because of the insanely low price offered for the season tickets. Thus may be an exception to the general rule.
Conclusion: A unilateral mistake by Disney regarding the season price tickets are bound in contract to be sold to the customers if the other party does not know of the mistake of fact was made.
4. Appropriate management response to the situation to limit legal liability.
Before the webmaster submits his work through the internet, he or she must show have at least two different people to proof read the work to find any grammatical errors or pricing. In addition, the last person to proof read it should be someone who understands consumer law. Lastly, every person who proof reads it has to sign out to show that they were responsible for editing the work.
5. Preventative measures that management can take to limit liability in the future. Give citations for legal rules that may limit liability. Explain the action that management can take to apply the liability limiting rules to the situation.
The mistaken party may get out of the contract is the other party knows or should have known of the mistake (Cite: West Law p. 266.) An exception may arise when the party conducted a mathematical mistake in addition, subtraction, division or multiplication and was made inadvertently and without grow negligence. (Cite: West Law p. 258.)
To limit liability for Disney’s mistakes: