• A Store posted advertisements around town that read: THIS SATURDAY ONLY - RIDING MOWERS STARTING AT $400!
• Buyer arrived at the Store early on Saturday, just as the Store was opening, and told the manager, "Here is my $400. I want one of those riding mowers that you have on sale."
• The manager replied that the Store did not have any riding lawnmowers for $400.
• Buyer argues that by his actions (going to the store and saying he wanted to buy one), he accepted the store's offer and therefore he entered into an enforceable contract with the Store.

Is Buyer correct, and why or why not?

Group of answer choices

Yes -- there is an enforceable contract because the Store should be punished for making that statement.

No -- there is no enforceable contract because the Store did not make an offer.

Yes -- there is an enforceable contract because Buyer reasonably believed the Store had made an offer and Buyer took all necessary steps to accept that offer.

No -- there is no enforceable contract because the subsequent facts establish that the Store was insincere.

• Accountant wants to open an office where she will offer tax services.
• Landlord owns a building with a vacant office.
• Landlord tells Accountant that Accountant can use the vacant office for at least six months IF Accountant will do Landlord's taxes, which, Landlord says, "would be worth more to me than the rent."
• Accountant agrees to that arrangement.
• The next day, Landlord tells Accountant that Landlord found a different tenant instead.
• Accountant sues Landlord for breach of contract.

Which of the following is the most likely outcome of that lawsuit?

Group of answer choices

Accountant wins -- because the arrangement was based on love and affection.

Landlord wins -- because Accountant's promise to perform tax services was an illusory promise.

Accountant wins -- because what Accountant agreed to do (Landlord's taxes) was valid consideration for the lease, and therefore a valid lease contract was formed and Landlord breached it.

Landlord wins -- because Landlord's promise was merely a conditional gift.

• Merchant Buyer sent a purchase order (Buyer's Form) to Merchant Seller, requesting Seller to send 10 engines to Buyer for cash upon delivery.
• Buyer's Form said: "All of the normal UCC warranties apply" regarding the engines.
• Buyer's Form also had the following term: "THIS OFFER IS EXPRESSLY CONDITIONED ON SELLER'S ASSENT TO ALL OF THE TERMS CONTAINED HEREIN."
• Seller then sent its own form (Seller's Form) back to Buyer.
• Seller's Form said Seller gave "No Warranties" regarding the engines.
• Seller's Form also had the following term: "THIS OFFER IS EXPRESSLY CONDITIONED ON BUYER'S ASSENT TO ALL OF THE TERMS CONTAINED HEREIN."
• Seller then shipped the 10 engines to Buyer.
• Buyer then paid Seller for all 10 engines.
• Nothing else was communicated between the parties.

Which of the following statements is TRUE?

Group of answer choices

Buyer and Seller formed a contract based only on Seller's terms.

Buyer and Seller formed a contract consisting of the terms on which the parties' writings agreed, together with "gap-filler" provisions of the Uniform Commercial Code.

No contract was formed between Buyer and Seller because both parties' forms are "knocked out" by their inconsistencies with each other.

Buyer and Seller formed a contract based only on Buyer's terms.

• Pam's cat ran away.
• Pam posted a sign in her neighborhood offering $100 to anyone who FINDS and RETURNS her cat.
• John texts Pam: "I promise to do whatever it takes to find your cat."
• Pam texts back: "I appreciate that."

What is the legal relationship between Pam and John at this point?

Group of answer choices

They formed an enforceable unilateral contract.

No cat is worth $100.

They formed an enforceable bilateral contract.

No contract exists between them.

• Mark is going to fly to Denver on Friday and spend the weekend looking for a house to buy.
• On Wednesday, he sends the following email to Polly: "I will pay you $500 IF you will pick me up from the airport on Friday at 1:00 PM and drive
• me around to look for houses."
• Polly emails him back, promising that she will do as Mark asks.
• When Mark arrives on Friday, Polly is not at the airport, so Mark rents a car.
• The next day, Saturday, Polly comes to Mark's hotel and says she is ready to drive him around and asks for the $500. Mark refuses.
• Polly sues Mark for breach of contract.

Which of the following is the most likely outcome of that lawsuit?

Group of answer choices

Mark will win -- because Polly never accepted his unilateral offer.

Mark will win -- because they had a bilateral contract, and Polly breached it when she was not at the airport to pick him up on Friday.

Polly will win -- because her email back to Mark was an effective acceptance of his unilateral offer.

Polly will win -- because she substantially performed and thus she accepted Mark's offer.

• Customer, an aerospace engineer who earned $500,000 per year, hired Mechanic to repair the brakes on Customer's car.
• Mechanic performed the work poorly, and as a result, Customer was in a serious car wreck and was hospitalized.
• After Customer's release from the hospital, she continued to suffer medical problems that resulted in high absenteeism from her work, and ultimately she was fired.
• Customer sued Mechanic for breach of contract, seeking damages that included the damage to her automobile, her medical expenses, and her lost wages from her lost job.

Which of the following is Mechanic's BEST argument for why Mechanic should NOT be liable for Customer's lost wages?

Group of answer choices

Customer's lost wages were avoidable.

Customer's lost wages are too uncertain.

Customer's lost wages are unconscionable.

Customer's lost wages were not foreseeable.

• WeParty (a Merchant) emailed a purchase order form to Balloon Company (a Merchant) for 70,000 balloons "in an assortment of colors."
• WeParty followed that purchase order with a phone call to Balloon Company, saying, "It is especially important for me to get black balloons."
• Balloon Company said they would have no trouble filling the order.
• A few hours later, Balloon Company emailed a confirmation form to WeParty, stating, "Balloon Company will supply the balloons per the terms of your written purchase order in one week for $3,500, payment due on delivery. Please confirm these terms by your signature below."
• WeParty signed Balloon Company's confirmation form and emailed it back to Balloon Company.
• On the delivery date, Balloon Company delivered 70,000 balloons in the colors of red, yellow, green, and blue. None of the balloons were black.
• Neither of their forms contains a Merger Clause, and thus their contract is considered to be Partially Integrated.
• The industry standard is that a request for a specific color is a "consistent additional term."

Was Balloon Company contractually obligated to provide black balloons in filling WeParty's order?

Group of answer choices

Yes -- because neither Trade Evidence nor the Parol Evidence Rule applies to this contract.

Yes -- because this contract is under the UCC, Trade Evidence would support Balloon Company's obligation to provide the black balloons, and since WeParty's request for black balloons was a "consistent additional term," it can supplement their Partially Integrated Contract under the Parol Evidence Rules.

No -- Balloon Company had no obligation to provide anything because the alleged contract fails for indefiniteness.

No -- because evidence of WeParty's request for black balloons is barred because it contradicts the parties' writings.

• Amy needs $40,000.
• Ms. Lender agrees to loan Amy the $40,000 so long as Mr. Surety guarantees the debt. (In other words: so long as Mr. Surety agrees to be the surety for Amy's debt).
• Mr. Surety tells Amy and Ms. Lender, "I will pay Amy's debt of $40,000 if Amy defaults on it."
• Based on Mr. Surety's verbal statement, Ms. Lender loans Amy the $40,000.
• Amy makes no payments on the $40,000.
• Ms. Lender asks Mr. Surety to pay the $40,000 based on his verbal Surety Agreement.
• Mr. Surety refuses to pay Ms. Lender.
• Ms. Lender sues Mr. Surety for the $40.000.

What is the most likely outcome of that lawsuit?

Group of answer choices

Ms. Lender should WIN -- because Surety Agreements are covered by the Statute of Frauds.

Ms. Lender should LOSE -- because Surety Agreements are covered by the Statute of Frauds.

Ms. Lender should WIN -- based on a claim of contributory estoppel.

Ms. Lender should LOSE -- because Ms. Lender always thought Amy was unreliable.

• Part Maker (Merchant) and Rocket Company (Merchant) agreed to all terms necessary for an enforceable contract, and they signed that contract.
• Under that contract, Part Maker is to provide plastic parts to Rocket Company.
• Two days later, Part Maker called Rocket Company and said, "I need to modify our contract. The price of my materials has gone up considerably. I'm going to have to charge you nine cents per part instead of five cents in order to break even."

Based on these limited facts, which one of the following statements about Rocket Company's situation is most true?

Group of answer choices

If Rocket Company does not agree to the higher price, Part Maker's obligations under the contract are discharged due to impracticability of performance.

If Rocket Company tries to refuse to modify the contract, Part Maker can force Rocket Company to accept the modification based on duress.

Rocket Company must accept the modification of the contract price because of the additional consideration provided by Part Maker.

So long as Rocket Company is acting in good faith, it can refuse to modify the contract, even if its refusal means that Part Maker will lose money on the deal.

• Merchant Buyer contracted to buy 700 boxes of bolts from Merchant Manufacturer.
• Manufacturer instead delivered 505 boxes of bolts.
• In good faith, Buyer accepted the delivery without counting the boxes, and then paid Merchant Manufacturer the full contract price for 700 boxes.
• A week later, Buyer discovered the shortfall of 195 boxes, and there was no time left for Manufacturer to cure the shortfall.
• Buyer sues Manufacturer for breach of contract.

What is the most likely result of that lawsuit?

Group of answer choices

Buyer will win -- because Manufacturer materially breached its obligation under the contract.

Buyer will win -- because Manufacturer didn't honor the warranty of merchantability.

Buyer will lose -- because Manufacturer substantially performed the contract.

Buyer will lose -- because Buyer accepted delivery of the 505 boxes.

• Investor was considering buying a piece of land that Seller was offering for $80,000, but Investor first needed to see if he could arrange for a loan.
• Investor paid Seller $1,000 in exchange for Seller's promise to keep the $80,000 offer open for ten (10) days.
• Three (3) days later, Seller sold the land to Buyer for $90,000.
• One (1) day after that, Investor notified Seller that he had obtained the loan and wanted to proceed.
• Seller informed him that the land was sold and offered to return the $1,000.
• Investor sues Seller for breach of contract.

Which of the following is the most likely outcome of that lawsuit?

Group of answer choices

Investor should win -- because an Option Contract was formed, making Seller's offer irrevocable during the ten (10) day option period.

Investor should win -- because Seller violated a moral obligation and deprived Investor of a material benefit.

Seller should win -- because $1,000 is insufficient consideration to support a $80,000 purchase price.

Seller should win -- because an Option Contract was formed, giving Seller the option to terminate her offer.

• Museum owns two of the three gemstones that were once in a famous crown.
• The third and highly unique gemstone is in the possession of Collector.
• In a signed contract, Collector agreed to sell the third stone to Museum for $500,000.
• The day before the scheduled delivery, Collector repudiates the contract.
• Museum sues Collector for breach of contract.

In that lawsuit, which remedy would most likely be best for Museum?

Group of answer choices

Specific Performance

Expectation Damages

Restitution Damages

Reliance Damages

• Stadium enters into a contract with Band whereby Band is to perform a concert at Stadium three months later.
• The day before the concert, Stadium is destroyed by fire.
• Band does not perform its concert.
• Stadium sues Band for breach of contract.

Which of the following statements is the most true?

Group of answer choices

None of these statements is true.

Band is not liable to Stadium because Band's performance was impossible, REGARDLESS OF WHO WAS RESPONSIBLE FOR THE FIRE.

Stadium is entitled to recover from Band the difference between the price that Stadium contracted to pay Band and the price of a substitute band.

Band is not liable to Stadium because Band's performance was impossible, SO LONG AS BAND WAS NOT RESPONSIBLE FOR THE FIRE.

• Soldier has just been discharged from the military and cannot find a decent-paying job in her area.
• Uncle, who lives on the other side of the country, tells her, "There are lots of high-wage jobs in this area. If you come here, you can stay with me, and I'll help you find a job."
• Soldier quits her low-wage job and drives across the country to Uncle's house.
• However, upon Soldier's arrival at Uncle's house, Uncle tells Soldier that she will be unable to stay with him, and that he will not help her find a job.

What is Soldier's best legal argument against Uncle?

Group of answer choices

Soldier and Uncle did not enter into a contract -- but injustice can only be avoided by enforcement of Uncle's promise under the principle of Promissory Estoppel.

Soldier and Uncle formed a contract -- because Uncle made an unequivocal offer to enter into a unilateral contract.

Soldier and Uncle formed a contract -- because Uncle bargained for Soldier to drive across the country, and Soldier bargained for the benefit of having a place to stay.

Soldier and Uncle did not enter into a contract -- but injustice can only be avoided by enforcement of Uncle's promise under the terms of the UCC.