Discussion Question 3 – Sources of Contract Law Pretend that you still have your

Question

Discussion Question 3 – Sources of Contract Law Pretend that you still have your car detail business as we discussed in Week 1. As part of your business, you provide car detailing services as well as sales of car accessories like running boards, applying stripes and letters on the car and windows, and window tinting. Your customer Lucy Looney came to the shop and asked you for a quote for window tinting. You quoted her $250 for you to apply tinting on all of the windows with your top of the line window tinting. Lucy agreed and brought her car in for the work. As agreed, you applied the window tinting and she paid you $250. You thought everything was fine until Lucy called very upset. She explained that there was a problem with the window tinting. According to Lucy, the tinting was peeling in places, bubbles were in certain areas, and the tint color was not uniform. Lucy has threatened to sue you in small claims court. If Lucy sues in small claims court, which body of contract law will the court apply? Explain (be sure to read your business law text before answering)

Explanation / Answer

Answer: Small claims court is a special court where disputes are resolved quickly and inexpensively. In small claims court, the rules are simplified and the hearing is informal.

In general, claims are limited to disputes up to $5,000. However, natural persons (individuals) can claim up to $7,500. Corporations, partnerships, unincorporated associations, governmental bodies, and other legal entities cannot claim more than $5,000. Also, no claimant (natural person or legal entity) may file more than two small claims court actions for more than $2,500 anywhere in the State during any calendar year. For example, if you file an action for $4,000 in February 2010, and another action for $4,000 in March 2010, you may not file any more actions for more than $2,500 until January 1, 2011. You may file as many claims as you wish for $2,500 or less.

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