1. Kerin sends a letter to Joli telling her that he has a book to sell at a certain price. Joli signs and returns the letter. When Kerin delivers the book, Joli sends it back, claiming that they do not have a contract. Kerin claims they do. What standard determines whether these parties have a contract?

2. Rocky Mountain Races, Inc. sponsors an ultramarathon with an advertised price of $10,000. The rules require the competitors to run 100 miles from the floor of Blackwater Canyon to the top of Pinnacle Mountain. The rules also provide that Rocky reserves the right to change the terms of the race at any time. Monica enters the race and is declared the winner. Rocky offers her a prize of $1000 instead of the $10,000. Did Rocky and Monica have a contract? Explain.

3. Sun Airlines, Inc., prints on its tickets that it is not liable for any injury to a passenger caused by the airlines negligence. If the cause of an accident is found to be the airlines negligence, can it use the clause as a defense to liability? Why or why not?