Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 4

Should a Buyer Refuse to Perform a Contract Because a Legal Product May Be Unsafe?
FACTS Carson and Olson are partners in a landscape and gardening business that operates out of three major locations and employs approximately thirty people. The business provides general lawn care predominately for residential homes; its services include grass cutting, fertilizing, and trimming of shrubbery. Carson and Olson also provide landscape design services.
One year ago, Carson and Olson entered into a two-year contract with Chem-Care, which manufactures chemicalbased fertilizers effective in weed control. Because the contract was for a long term and because Carson and Olson have been excellent Chem-Care customers for the past fifteen years, they obtained an extremely favorable price of $40,000 for a two-year supply of Chem-Care fertilizers.
Chem-Care fertilizers have been approved by the government and do not violate any standards currently in place. Nevertheless, due to publicity concerning health problems associated with certain chemical lawn treatments, the majority of Carson and Olson's customers now have decided that they no longer want chemical lawn treatments. Concerned by the health hazards associated with chemical fertilizers, the customers insist upon natural fertilizers.
Carson wants to cancel the contract with Chem-Care. But Olson feels a sense of loyalty to Chem-Care and wants to honor the contract by trying to find new customers who would be willing to use the Chem-Care products.
Social, Policy, and Ethical Considerations
Should Carson and Olson attempt to invalidate the contract? Compare the social value of enforcing promises made with the good faith intention of being legally bound against the value of protecting the public from health or environmental threats.