1.In July, Shopper's Paradise contracts with Annie's Apple Orchard in Washington State for the purchase of Braeburn apples to be delivered on December 1. An early severe frost in November destroys the apples. Annie's can buy the apples from another orchard, but they would be expensive and Annie's profit would be about 2% versus the normal 15%. Annie's decides the 2% is not worth the hassle and does not deliver any apples to Shopper's.

Which result is most likely if Shopper's sues Annie's for breach of contract?

a.Annie's will win using the defense of impossibility

b.Annie's will win using the defense of frustration of purpose

c.Shopper's will win because Annie's did not deliver any apples

d.Shopper's will win, but only if the agreement is in writing

2.Ace Lighting informed its regional sales managers that any sales manager that doubled its region's sales of lighting products year-over-year would receive a bonus of $20,000, payable on December 31. That was in March. Manager Sue Bahr achieved the sales goal in November. The company sent out a memo in early December saying it decided to spend its money on expansion and would not be paying bonuses. The company did not pay any bonuses. In January, Bahr left the company and sued Ace for the failure to pay the $15,000 bonus.

Which is true?

a.no breach of contract because the offer was too vague

b.no breach of contract because it was not possible to give the full bonus

c.this was a unilateral contract that Bahr accepted by making the required sales numbers; Ace breached it

d.there was no contract because Ace revoked the offer

3.Marcus works for GetSetJet Airlines. He asked Sherri, the head of a small ad agency, to come up with an ad campaign for GetSetJet. Marcus liked Sherri's rough concept and encouraged Sherri to keep working on the campaign, telling her he wants to use her firm. Marcus eventually used another firm who "borrowed" many of Sherri's ad campaign themes and Sherri sued Marcus and GetSetJet for damages.

Which is most accurate?

a.there is no contract, but Sherri can recover the value of her work under the principle of quantum meruit

b.there is no contract, but Sherri can recover punitive damages

c.there was a unilateral contract and Marcus breached it

d.there was a bilateral contract and Marcus breached it