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Business Laws and Ethics

Midwest Grains, Inc. (Grains) is a large, privately-owned Iowa-based supplier of various grains to manufacturers and retailers throughout the country.

National Bakers, Inc. (Bakers) is a large, family-owned corporation based in New Jersey with operations in 15 states.

On August 30, representatives for Grains and Bakers verbally agreed for Grains (1) to sell 1000 lbs. of wheat grain to Bakers for market price, to be shipped via truck to the Bakers’ warehouse in New Jersey by September 12, 2016, and (2) to sell 100 lbs. of ground corn to Bakers for market price, to be shipped via truck to the Bakers’ warehouse in New Jersey by November 1, 2016.

Grains and Bakers have engaged in previous business sales transactions and always commit their verbal agreements to signed written contracts via email.  On September 3, Grains and Bakers completed a written contract to reflect their agreement for the sale and shipment of grains.

  1. Write a valid enforceable contract that reflects the September 3 agreement between Grains and Bakers, as described above.

This is to be your own work, not use a standard form contract from the internet.

  1. Assume that beginning in the summer, 2016, there is an oversupply of grain that is driving prices down. Consequently, on September 1, 2016, US Congress enacted a law, popularly called the Limited Grain Act, that temporarily bans the production and sale of all grains in the US, and provides for payment of a subsidy to farmers for not growing grains.

Grains and Bakers were unaware of this ban when they signed the September 3 contract for the sale of grains.

 Analyze and discuss the (1) the constitutionality of the Limited Grain Act explaining the legal basis for the law and why it is constitutional or unconstitutional, and (2) the validity of the September 3 sales contract between Grains and Bakers explaining the conclusions and rationale in detail.

  1. Analyze and discuss the constitutionality of the Limited Grain Act explaining the legal basis for the law and why it is constitutional or unconstitutional.

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