Spotlight on Taco Bell-Implied Contract. Thomas Rinks and Joseph Shields develop

Question

Spotlight on Taco Bell-Implied Contract. Thomas Rinks and Joseph Shields developed Psycho Chihuahua, a caricature of a Chihuahua dog with a "do-notback- down" attitude. They promoted and marketed the character through their company, Wrench, L.L.C. Ed Alfaro and Rudy Pollak, representatives of Taco Bell Corp., learned of Psycho Chihuahua and met with Rinks and Shields to talk about using the character as a Taco Bell "icon." Wrench sent artwork, merchandise, and marketing ideas to Alfaro, who promoted the character within Taco Bell. Alfaro asked Wrench to propose terms for Taco Bell's use of Psycho Chihuahua. Taco Bell did not accept Wrench's terms, but Alfaro continued to promote the character within the company. Meanwhile, Taco Bell hired a new advertising agency, which proposed an advertising campaign involving a Chihuahua. When Alfaro learned of this proposal, he sent the Psycho Chihuahua materials to the agency. Taco Bell made a Chihuahua the focus of its marketing but paid nothing to Wrench. Wrench filed a suit against Taco Bell in a federal court claiming that it had an implied contract with Taco Bell and that Taco Bell breached that contract. Do these facts satisfy the requirements for an implied contract? Why or why not? [Wrench, L.L.C. v. Taco Bell Corp., 256 F3d 446 (6th Cir. 2001), cert. denied, 534 U.S. 1114, 122 S.Ct. 921, 151 L.Ed.2d 805 (2002)] (See Types of Contracts.)

Explanation / Answer

For an implied contract to exist, these three requirements must be fulfilled-

1. The plaintiff furnished some service or property.

2. The plaintiff expected to be paid for that service or property, or the defendant knew or should have known that payment was expected.

3. The defendant had a chance to reject the services or property and did not.

According to these requirements, Wrench LLC has a case against Taco Bell because they did not accept Wrench's terms when they came up with.By looking up the case and the biggest evidence that Wrench had the proposal they offered to Taco Bell and that they rejected the proposal, yet continued to use a chihuahua for their advertising campaigns.

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