BUS 212 M2 ASSIGNMENT 2 BE CAREFUL WHAT YOU SIGN
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BUS 212 M2 Assignment 2 Be Careful What You Sign
BUS212
BUS 212 M2 Assignment 2 Be Careful What You Sign
Sudson Washer and Dryer Service is in the business of leasing
used washers and dryers to apartment landlords for a contracted lease term. The
coin-operated machines are used by apartment tenants. Letisha, 25, a human resource
clerk, owns a five-unit apartment complex. While she resides in one of the
units, the others are occupied by tenants. Sudson contacts Letisha and offers
to lease one washer and one dryer.
The washer and dryer in Letisha s apartment complex are old and
worn-out. Anxious to keep her tenants happy, Letisha meets with Sudson s
salesman who presents her with a one-page agreement for the use of one washer
and dryer for five years. The five-year term is standard and the front page of
the contract states the lease period. 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.
The salesman did not inform Letisha of, nor did she bother to
read the back of the agreement which contained additional terms, one of which
is an automatic renewal clause that states: If the lessee fails to provide a
90-day written notice to terminate the contract by certified mail to the
lessor, the five-year lease term period shall automatically renew for three
additional five-year terms and shall only be subject to termination by the
lessor.
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. In the paper, respond to the following questions:
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? Explain.
What legal arguments could be raised by Sudson in support of the
enforcement of the automatic renewal clause against Letisha? Explain.
What ethical issues are raised, if any, by Sudson s practice of
using the automatic renewal clause in their lease agreements? Explain.
Does the Uniform Commercial Code Article 2A apply in this case?
Explain.
Are there any government or private entities available to
Letisha for lodging complaints about businesses which treat consumers unfairly?
Explain.
If Sudson sues Letisha for breaching the contract s automatic
renewal clause, what do you think the outcome of the case will be? Explain.
Write a five-page paper in Word format. Apply APA standards for
writing style to your work.
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