25.After working for IBM for 30 years, Kathleen Sullivan is retiring. Upon hearing the news of her retirement, the President of IBM announces that she will pay Sullivan $100,000 for her 30 years of dedication and exceptional services to IBM.But upon retiring, Sullivan isn't paid the bonus.Sullivan decides to sue IBM for breach of contract. Which of the following is true of this case?

a. It is unenforceable because the IBM's detriment and Sullivan's benefit constitutes past consideration

b. It is an enforceable contract because IBM's president obligated the company to pay the bonus.

c. It is enforceable because IBM'sPresident was authorized to make such a promise.

d. It is unenforceable because it constitutes unlawful consideration.

ANSWER:__________

26.Three years ago B-Law Survivor Ms. Brianna "Hoppa" Fetterley needed transportation to the library because her car was in need of repairs.Brianna borrowed a bicycle from BUS 320 Survivor and Downhill Bike Racer, Henry Scholz at no charge. Brianna promised to return the bicycle on Wednesday, May 14th, the same day that she had an important B-Law examination.While Brianna was riding the bike, the front tire came off, and Brianna crashed and her favorite textbook, yep, Cheeseman, was destroyed.Henry did not know of the defect, but a reasonable inspection would have indicated that the front wheel was bent (maybe by a collision with an elderly pedestrian!) and that a repair was needed.Proving that no good deed goes unpunished, Brianna sued Henry to replace her beloved Cheeseman.In this situation:

a. Henry was not liable because he did not know of the defect.

b. Henry was liable because he was an insurer of Brianna's safety.

c. Henry was not liable because he did not charge Brianna for using the bicycle.

d. Henry was liable because he should have discovered the defect by inspection.

e. A and C are correct.