Posted by kate on 8/11/10

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I have this case problem. I have to present this I want to
hear your thoughts to make sure I'm not missing any key
points?? Thanks!
PROBLEM:

Dirk Right is the owner and sole proprietor of Right’s
Bicycles, a retail bicycle store. Biff Smith is the Chief
of Police of the local police department. Biff wanted to
start a bicycle patrol unit in the police department, so he
called Dirk to order five mountain bikes. Biff was
familiar with the Schwinn bicycle company, so he told
Dirk “Order me five of Schwinn’s top of the line mountain
bikes. Get me the best price you can.” Dirk
responded: “You got it, Biff.”

A few days later, Dirk received a form letter from the
local PBA (Policemen’s Benevolent Association), asking for
donations. On the bottom of the letter was a handwritten
note: “P.S. - Thanks for ordering the bikes for me!” It
was signed “Biff“.

Dirk ordered five of the best mountain bikes that Schwinn
made for Dirk. They were a “special order”
because “POLICE” decals and other markings had to be put on
the bikes. Each bicycle cost Dirk $3,500, since the “top
of the line” mountain bike is made for the serious mountain
bike racer.

When Dirk got the bicycles from Schwinn, he had them
delivered to Police Headquarters, with a bill for $17,500.
(Dirk had decided to sell the bikes to Biff at his cost, as
a way of contributing them to the community). Shortly
after the bikes arrived, Dirk got a telephone call from an
angry Biff who yelled: “How can a bicycle cost $3,500.00?!
This is highway robbery! Come over and pick up these bikes
now. There is no way the town council will pay for these.
I am canceling the order.”

Dirk did not pick up the bikes because he could not return
them to Schwinn. (They were a “special order”). Nor could
Dirk make Biff listen to reason. Dirk’s only recourse was
to sue for his loss.

ANSWER THE FOLLOWING QUESTIONS:

1. Who should Dirk sue? Why? Will the Court rule that
a contract was created? Why or why not? If so, between
which parties? Why? If not, why not? If so, is it
enforceable? Why or why not? Your answer must include a
list of all the requirements of a contract, a detailed
explanation of each and an analysis of whether the Court
will rule that each requirement has been met, considering
the facts given above. Include in your answer and analysis
all issues that appear and affect the outcome of your
answer, including any defenses that may be available and
their likelihood of success, with your reasoning, and any
ancillary issues that appear in the problem.

2. Assume that the Court ruled that a contract was
created, and that it was breached. Who is the responsible
party? What type of relief is Dirk entitled to? Against
whom? Why?

bicycle case, 8/11/10, by kate.

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