1. Mary Ellen sues Katie for breach of contract in a state trial court in North Carolina.

(a) Does the judge in the state trial court have to follow a rule established in a case decided last year by the Supreme Court of South Carolina? Why?

(b) Does the judge in the state trial court have to follow a rule established in a case decided last year by the Court of Appeals (an appellate court) in North Carolina? Why?

(c) Does the judge in the state trial court have to follow a rule established in a case decided last year by the United States Supreme Court? Why?

2. Anjelica, a choreographer, received a valid offer to purchase a dance studio in New York from Lisa (the owner of the studio) for $1,000,000, but Anjelica wasn't interested. Anjelica asks her assistant stage manager, Edgar, to let Lisa know that she was rejecting the offer. However, Edgar decided to accept Lisa's offer and to purchase the dance studio for himself.

(a) Is there a valid contract? Explain why or why not.

(b) Now suppose Lisa responds to Edgar as follows: "ok, we have a deal!", is there a valid contract? Explain why or why not.

3. Jaimie is a commercial property owner. She asks Erik, a real estate agent, to help market and sell the strip mall in West Orange that Jaimie owns. In her offer to Erik, Jaimie says thatif Erik helps to market and sell the strip mall from now until the end of the month, and a buyer makes a serious offer to buy the building within the month or sixty days after that, she will pay Erik a 15% commission for the sale. Immediately, Erik puts signs on the building, ads in real estate pamphlets and a local real estate web site, features the property in a "walking" tour online, and shows the strip mall to potential buyers. Three weeks after making her offer, Jaimie tells Erik that she is canceling their arrangement and a day after Jaimie cancels the arrangement, she closes a sale of the strip mall and doesn't pay Erik any commission. Erik sues Jaimie for breach of contract.

Was there an agreement between Erik and Jaimie? Explain why or why not.

4. Phoebe's birthday is on January 3. On her birthday in 2020, Paul, her grandfather, offered to give Phoebe $12,000 on her birthday the following year. Phoebe accepts Paul's offer. On January 3, 2021, Paul refuses to pay Phoebe the $12,000. Phoebe sues Paul for breach of contract.

Does Phoebe win? Explain why or why not?

5. Melany, a law student, offers to sell Robert her Harley-Davidson bike for $8000. Melany calls Robert two days after making the offer and tells him to "forget the offer" because she found someone willing to buy the bike for $10000. Robert never attempted to accept the offer until getting this call from Melany.

(a) If Robert then attempts to accept the offer, is there an agreement? Explain why or why not.

(b) Now suppose that Melany is a salesperson at motorcycle dealership (and not a law student), was Melany's offer revocable? Explain why or why not.