CASE PROBLEM WITH SAMPLE ANSWER: The Parol Evidence Rule. Novell, Inc., owned the source code for DR

CASE PROBLEM WITH SAMPLE ANSWER: The Parol Evidence Rule.
Novell, Inc., owned the source code for DR DOS, a computer operating system
that Microsoft Corp. targeted with allegedly anticompetitive practices in the
early 1990s. Novell worried that if it fi led a suit, Microsoft would retaliate
with further alleged unfair practices. Consequently, Novell sold DR DOS to
Canopy Group, Inc., a Utah corporation. The purposes of the sale were to
obligate Canopy to bring an action against Microsoft and to allow Novell to
share in the recovery without revealing its role. Novell and Canopy signed

CASE PROBLEM WITH SAMPLE ANSWER: The Parol Evidence Rule.
Novell, Inc., owned the source code for DR DOS, a computer operating system
that Microsoft Corp. targeted with allegedly anticompetitive practices in the
early 1990s. Novell worried that if it fi led a suit, Microsoft would retaliate
with further alleged unfair practices. Consequently, Novell sold DR DOS to
Canopy Group, Inc., a Utah corporation. The purposes of the sale were to
obligate Canopy to bring an action against Microsoft and to allow Novell to
share in the recovery without revealing its role. Novell and Canopy signed two
documentsa contract of sale, obligating Canopy to pay $400,000 for rights to
the source code, and a temporary license, obligating Canopy to pay at least
$600,000 in royalties, which included a percentage of any recovery from the
suit. Canopy settled the dispute with Microsoft, deducted its expenses, and
paid Novell the remainder of what was due. Novell fi led a suit in a Utah state
court against Canopy, alleging breach of contract for Canopys deduction of
expenses. Canopy responded that it could show that the parties had an oral
agreement on this point. On what basis might the court refuse to consider this
evidence? Is that the appropriate course in this case? Explain. [ Novell, Inc.
v. Canopy Group, Inc., 2004 UT App. 162, 92 P.3d 768 (2004)] To view a sample
answer for Problem 157, go to this books Web site at
www.cengage.com/blaw/clarkson, select Chapter 15, and click on Case Problem
with Sample Answer.