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In: Operations Management

Assume Jinan University and an American Professor signed a contract for a summer business arrangement. In...

Assume Jinan University and an American Professor signed a contract for a summer business arrangement. In the contract, the professor promised to teach for the summer in Guangzhou, and in return, Jinan University promised to pay the professor $1 million. In preparation for the arrival of the professor, Jinan paid $20,000 for a fancy Guangzhou apartment for the professor. Jinan also bought $2,000 plane tickets, $500 in weekend tours, and $200 in equipment for the professor.

In addition, Jinan spent $12,000 in advertising, showing possible students that the professor was coming to teach. 500 students saw the advertising. Each paid $20,000 to Jinan to enroll. The students gave up the opportunity to attend a different program in Guangzhou. The other program would have cost each student $30,000.

All of the students fly to Guangzhou, spending $2,500 on airfare. Each also paid $10,000 for excellent apartments near the university. The university was ready to go. Then the night before classes start, the professor calls and says he decided not to come.

In the above story, who can sue whom? What will each party argue in each case? What legal concepts are involved from our class? Explain. Be thorough.

Please be specific on bold font questions !!

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Expert Solution

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In the above story, who can sue whom?

For contravention of the contract, Jinan University can sue the American professor. The American professor can be sued by Juan University for a contract violation. In Guangzhou, the professor agreed for the summer to teach, and Jinan University offered to pay the professor 1 million dollars. There was an agreement on the issue.The intention to create legal relations between the two parties was clearly illustrated by the signing of this agreement. The US Professor's $20,000 for an exquisite Guangzhou apartment for a professor, $2,000 air tickets, $500 for the weekends, $200 for the professor's equipment and $12,000 for publicity, which shows possible students that the Professor is coming to teach.

What will each party argue in each case? What legal concepts are involved from our class?

Students may sue Jinan University for contract violation and have missed opportunity. Students may sue Jinan University for contract violation. Through accepting an offer that had all required terms, the arrangement between the university and the enrolled students was legally binding and took into account the sum of $20,000 in fees. The infringement would cause everyone to recover: $20,000 in enrollment, $10,000 in value loss on account of giving the opportunity to enroll in an alternative program in Guangzhou, $2,500 in air travel and $10,000 in excellent apartments close to the university.

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