20pts 4. Jimmy Johns is the president of Cytoflex, Inc., a Delaware corporation, with its principal place of business in New York which manufactures home gym equipment. One of its products is the Cytoflex Trainer, a piece of equipment that includes weights, pulleys and elastic bands. Because of the way the Trainer is designed, if the user is not paying careful attention or is of slightly less than average strength, the elastic bands tend to snap back toward the user. This tendency was noticed by Cytoflex employees when the Trainer was being tested and the employees reported the results to Johns. Johns felt that this was not a significant problem and authorized the production and shipment of Trainers to retail outlets, including Big Mart Stores. Within a year, over 15,000 trainers had been sold nationwide. Within 18 months of the first sale, there were reports of over 200 accidents involving users of the Trainer. Many of those accidents involved serious injuries, including injuries to users' eyes, causing blindness in one or both eyes. A) Hugh Youser is one of the consumers who was injured by the Trainer. Identify two causes of action that Hugh Youser might bring against Cytoflex, Inc. and discuss what he would have to show to be successful on each claim. (State the Cause of Action and their elements and explain). B) C) Could Big Mart be held liable to Hugh Youser on either of those claims? Explain fully. Can Hugh Youser a resident of New York sue Cytoflex Inc., in New York Federal Court? Explain why or why not. 5. 15pts On January 15, Molly Pine, a well-known business executive, received a letter from The Varner Boutique, which stated: "We hereby offer to sell you the original Queens desk, entitled desk resolute, by the famed furniture designer Strada, for $1,075,000. This offer will expire on Feb 1. (signed) Donatella Varner Boutique. Pine, who liked to bargain, wrote back: "I'm very interested in your offer. Will you include a professional cleaning of the desk? (signed) Molly Pine." Varner Boutique received this letter on January 18 but did not respond to it. By January 25, Pine was in serious financial difficulties and realized she could not afford to buy another piece of furniture. She mailed the following letter to Vamer Boutique, "Since you have rudely failed to respond to my earlier letter, please be advised that I have no intention of buying the Desk Resolute from you. (signed) Molly Pine. Varner Boutique feceived this letter on January 28. On January 26, however, Pine found out that she was the sole winner of a $342 million Megazillions lotto jackpot. That day, she gave the following letter to Federal Express (authorized means) for delivery to Varner Boutique the next day: "I hereby accept your offer to buy the Desk Resolute, by Strada, for $1,075,000. (signed) Molly Pine." Due to an error by Federal Express, Vamer Boutique did not receive this letter until January 30. On February 3, Pine called Varner Boutique to ask when the Desk Resolute would be delivered to her. Varner Boutique responded that there was no contract between Pine and Varner Boutique and that the Desk Resolute had been sold to someone else. Pine sues Varner Boutique for breach of contract. Judgment for whom? Is there a contract? Discuss, explaining the significance of each communication between Pine and Varner Boutique. In addition to discussing and defining what law governs and why. 6. 10pts M Corp, a well-known television manufacturer, had several odd lots of discounted models, which it desired to clear out. M, the president, invited D, the owner of D Discount Chain, to come in and examine the different models and make M and offer for the entire lot. The sets were segregated from the regular inventory. Fifteen televisions that were not discounted models were accidently included in the segregated group by one of M's employees. D was unaware that M did not intend to include the fifteen televisions in the group. D made M an offer of $10,000 for the entire lot. Unaware of his employees mistake M accepted the offer. M would not have accepted the offer had he known that the fifteen sets were included. Upon learning of the error, M Corp refused to perform the contract and alleged mistake as a defense. D. Discount Chain sued M Corp for breach of contract. (a). Judgment for whom? EXPLAIN in detail why. Fully defining and identifying all legal terms and how they apply to the facts. (b). Would your answer be different if D of D Discount Chain knew of the mistake and never said anything? Explain. 10pts 7. The chairman of the board of directors of X Corp. wrote and signed a letter to P, the president who is 60 years old and planned to retire at the end of the year. "The corporation will pay you a pension of $60,000 a year for life if you retire as planned, and agree not to take another job in the industry." P replied, "I promise to do as you wish." Two years later, X Corp. stopped the pension payments. P sues X Corp. for the current installment. May P recover? Explain. Discuss and define all legal terms. Instead of the above letter, assume at P's retirement dinner, the chairman of the board of directors of X Corp., in his speech said "In view of the fact that you have been faithful to X Corp. for 30 years and have resisted efforts of our competitors to hire you away from us, the corporation promises to pay you a pension of $60,000 a year for life." P stood up and said, "I accept your pension promise with gratitude." Is X Corp's promise to pay enforceable by P and if not, what would be necessary to make it enforceable. Explain. Discuss and define all legal terms. 8. 15pts. On February 13, Mario purchased an engagement ring from John, a jeweler, for $5,000, relying on John's representation that the ring was set with a genuine diamond. The next morning Mario had the ring appraised by a gemologist and learned to his amazement that the center stone was not a genuine diamond, but rather cubic zirconia, a cheap imitation that looked like a diamond but was worth only $50 and that the entire value of the ring was $200. Nevertheless, the next day, Mario gave the engagement ring to Gina, his fianc, on Valentine's Day, as he had promised. One month later Gina terminated her engagement to Mario (she was upset that he did not buy her a diamond) and returned the ring to him (more like threw it at him, yelling obscenities). The following day Mario decided to rescind the contract with John and to sue John for damages. (a). Did John commit Fraud? Please list the elements and explain fully. (b). Does Mario have the right to rescind his contract with John? Explain stating the legal theory and why. (c). Does Mario have the right to recover damages from John and if so how would the damages be computed? Explain.