1-1 The Production Manager of Manufacturing Company is negotiating with Meta Products to fill Manufacturing Company's requirements for nuts and bolts needed to produce Manufacturing Company's finished products.The Production Manager of Manufacturing Company sends Meta a purchase order form for nuts and bolts that describes the quantity and type of each nut and bolt that Manufacturing Company wants to purchase and other terms and conditions.The Manufacturing Company form does not fix a price for each nut and bolt but it states that Meta should offer a price that will be fixed for two years.Meta sends its own purchase order form with Meta's terms and conditions back to the Production Manager, signed by Meta, with Meta's prices but without specific reference to the two-year term.Under the Meta prices, payments by Manufacturing Company would be about $10,000 per year.The Production Manager signs Meta's purchase order form and sends it back to Meta, indicating Manufacturing Company's agreement to the price terms.After six months, Meta decides that it is not making enough money from the arrangement, and Meta stops making shipments.Manufacturing Company sues for breach of contract.

1-1What body or bodies of law govern this dispute and why?What body or bodies of law do not govern this dispute and why?Please be specific.

1-2Does the signed Meta purchase order form constitute an enforceable contract? Analyze referring to the essential elements of a contract.

1-3Does the signed Meta purchase order form contain all of the terms and conditions of the contract?If not, what additional information do you need to answer this question?Does this cause you to reconsider your answer to 1.1.2?

1-4Would your answer be different if Manufacturing Company stated that the arrangement would be for six months?Why or why not?Explain the significance of contracts having a term of less than one year.

1-5Would your answer be different if the total payments were $150 per year?Why or why not?Explain the significance of contracts requiring payment of less than $500.

1-2Assume the same facts as for Question 1.1, but the Production Manager of Manufacturing Company sends Meta Products a purchase order form for nuts and bolts that describes the quantity and type of each nut and bolt that Manufacturing Company wants to purchase, states that the term is two years, and sets forth other terms and conditions, but does not fix a price.Meta sends its own purchase order form with Meta's terms and conditions back to the Production Manager, signed by Meta, with Meta's prices but without specific reference to the two-year term.The parties then proceed based on this exchange of forms.After six months, Manufacturing Company decides that it is paying too much for nuts and bolts, and Manufacturing Company stops accepting shipments from Meta.Meta sues for breach of contract.

2-1Does the exchange of purchase order forms constitute an enforceable contract?Analyze referring to the essential elements of a contract.

2-2Manufacturing Company defends the case by stating that the Production Manager did not have the authority to bind Manufacturing Company.Explain the strengths and weaknesses of this defense.