1. Lucy, whose child is trapped in a burning building, repeatedly screams that she will pay $100,000 to anyone who will save the child. Mike, a neighbor, hears Lucy and, at the risk of his life, rescues the child. If Lucy refuses to pay Mike, what is the best argument she can make:

A. Courts do not recognize such "rewards" contracts.

B. Such an agreement would be unconscionable.

C. Randy would not have an action for breach of contract, because the offer was not made in a reasonable state of mind.

D. Randy would not have an action for breach of a unilateral contract, because he had a duty to rescue the child.

2. Casey sells bikes at a local discount store. To encourage Amy to buy a particular model, he states that this bike is (1) "the most awesome bike on the trail;" (2) "has a new form of rubberized wheels that grip the hills better than any other bike for the price;" and (3) I enjoy riding it as it is very comforting and relaxing." Based on these statements, Amy buys the bike. Which of these statements, if not true, could be a part of the grounds for Amy to disaffirm the contract as voidable?

A. Statements 1 and 3, because they constitute misrepresentations.

B. Statement 1, because it constituted a misrepresentation.

C. Statement 2, because it constituted a misrepresentation.

D. None of the statements can constitute a misrepresentation.

3. Which of the following would be an example of undue influence?

1. Rachel threatens to break Sydneys knees if Sydney does not sign the contract.
2. Hank and Sean are distantly related. Both are 25. Both are healthy, mentally and physically. Hank persuades Sean to sell Sean's 20 acre farm to him for 95% of the fair market value.

A. I only

B. II only

C. Both I and II

D. Neither

4. Jacob Cole, an avid collector of hockey memorabilia, was looking to buy some autographed hockey sticks. He went into Joe Irmen's "Sports-Mart" store in Addison, Illinois and saw a hockey stick from 1968 signed by the great Boston Bruins defenseman Bobby Orr. A clerk working at the store misread the $1200 price as $12.00. Cole knew a great deal about hockey players and autographed hockey sticks, while the clerk was relatively new at the job, working only two months. Cole purchased the hockey stick for $12.00.

When Irmen found out about the purchase, he demanded that Cole return the hockey stick. Cole refused, claiming that the contract constituted a valid sale and that it was not his fault that the clerk misread the price. Irmen sued to get the autographed hockey stick back, claiming that the contract should be rescinded. Cole refused.

What is the strongest argument Cole could make to keep the hockey stick?

A. mutual mistake

B. innocent misrepretation

C. Unilateral mistake on the part of Irmen's employee

D. Economic duress.

5. Which of the following are characteristics of the common law system?

1. Courts can make law as their decisions can be precedents for future cases.
2. Legislative Codes from Roman law serve as a basis for modern U.S. administrative law.

A. I only

B. II only

C. Both I and II

D. Neither