ARIS HW2 QUESTION 1 1. Before opening her new sports merchandise store, Kay places an ad in the newspaper showing cross-training shoes at certain prices. Within hours of opening for business, the store is sold out of some of the shoes. In this situation Kay has made an offer to the people reading the ad. Kay has made a contract with the people reading the ad. Kay has made an invitation seeking offers. Any customer who demands goods advertised and tenders the money is entitled to them. 1. QUESTION 2 Trevor and Chris form a contract by a series of e-mails culminating in the contract and their "electronic signatures" in bold. The contract otherwise is fine, and they print out "hard copies" for their records; but an issue arises as to whether this "e-contract" is a valid one. This contract is: Invalid since the common law requires all contracts to be in paper, signed on the paper, and under seal. Generally valid in the United States by means of the federal E-Sign law. Valid but only if two witnesses are willing to testify that they saw each party sign electronically. Invalid under the Statute of Frauds due to the potential for deceit. QUESTION 3 1. Rowan, a basketball star, signs a two year contract to play basketball for the Bullets for $200,000 per game. Right before a "big game," Rowan goes to the owner of the team and says that he will not play at all unless the owner pays him and additional $10,000 per game. The owner, being desperate, reluctantly agrees and promises to pay Rowan more. Now that the season is over, Rowan demands his additional compensation of $10,000 per game; but the owner of the Bullets refuses to pay. Rowan sues the owner for breach of contract. The most likely result of the lawsuit is that: a Rowan wins . contract. since this is a valid modification of a pre-existing earlier b Owner wins since a contract can never . the parties agree to the modification. be modified whatsoever, even if c . Rowan wins since this is a valid modification of a contract pursuant to the Uniform Commercial Code, which needs no new consideration to be enforceable. d Owner wins since Rowan was under a prior duty to play basketball, so . the owner's new promise to pay more money for the same act was not detriment on Rowan's part, and consequently was not supported by consideration on Rowan's part, and thus the owner's promise is not enforceable. 1. QUESTION 4 At one point in time, the company Gator-Aide commanded 83% of the sports beverage market. This market share was primarily due to the fact that a University of Florida professor had invented the product which became very popular and thus the company became very successful. However, there were two other competitors in the market - Coke and Pepsi, which approximately shared the rests of the market. Pursuant to Section 2 of the Sherman Act, the best conclusion regarding anti-trust liability for Gator-Aide would be: The company would be deemed guilty of monopolization of commerce since it possessed a very high share of the market. The company would not be deemed guilty of monopolization of commerce. The company would not be liable since the courts would say that the market was too narrowly defined and should include other sports drinks, such as water, soda, and beer (but only light beer). The company committed a horizontal restraint of trade by "freezing out" its main competitors. QUESTION 5 1. Sue contracts to deliver Tom's products to his customers for $1,500, payable in advance. Tom pays the money, but Sue fails to perform. Tom can rescind the contract only. obtain restitution of the $1,500 but not rescind the contract rescind the contract and obtain restitution of the $1,500. recover nothing nor rescind the contract. QUESTION 6 1. Tomas is a business student with a very good business idea for academia. Tomas, with the help of his school's entrepreneurship center, then develops a detailed business plan for an academic online course registration system. The faculty at the entrepreneurship center thinks that Tomas' concept and plan have economic potential and thus are quite marketable. Tomas places on his business plan a Confidentiality statement, and also when he "shops" his plan to potential investors and school administrators he asks them to sign a Non-Disclosure Agreement. Based on the aforementioned facts, which statement is likely TRUE? a Tomas . has protected his business plan by means of federal patent law. b Tomas . law. has protected his business plan by means of federal copyright Tomas has failed to protect his business plan by trade secret law since a plan, concept, or idea is too "soft" information, as opposed to a "hard" formula or device, for legal trade secret protection. d Tomas has protected his business plan by means of state trade secret . law. c . QUESTION 7 1. Best Office Company promises to pay Carl $1,000 to repair the roof on Best's building. Carl fixes the roof. The act of fixing the roof imposes a moral obligation on Best to pay Carl. imposes no obligation on Best unless it is personally satisfied with the job. is not sufficient consideration because it is not goods or money. is the consideration that creates Best's obligation to pay Carl. QUESTION 8 1. Beta, Inc., includes a shrink-wrap agreement with its products. A court would likely enforce this agreement if a buyer used the product after having had an opportunity to read the agreement. before having had an opportunity to read the agreement. only after actually reading the agreement. none of the above. 1. QUESTION 9 Lee, a salesperson for Midsize Corporation, causes a car accident while on business. Lee and Midsize are liable to all those who were injured. only those who were uninsured. only those whose injuries could have been reasonably foreseen. only those with whom Lee was doing business. QUESTION 10 1. Jerry applies for a lower-level, non-management job at U.S. Shoes, Inc. He is told before he is hired that he must sign an agreement declaring that he has not, and will not, become a union member while working for U.S. Shoes, Inc. Such an agreement is: a Fair labor practice . employer b Legal . by the in a right-to-work state c . Legal if Jerry is an employee at-will. d Illegal. . QUESTION 11 1. Ron contracts to repair Stu's building for $30,000. Payment is to be made "on the satisfaction of Tina, Stu's architect." Stu tells Tina not to approve the repairs. Ron sues Stu for $30,000. Ron likely will win, because Stu is not acting reasonably and in good faith. win, because Tina is Stu's architect. lose, because Ron is not acting reasonably, honestly, and in good faith. lose, because Tina has not expressed satisfaction with the work. 1. QUESTION 12 Carol is a salesperson who works for Delta Products, Inc. In determining whether Carol is Delta's employee or an independent contractor, the most important factor is the degree of control that Delta exercises over Carol. the distinction between Delta's business and Carol's occupation. the length of the working relationship between Delta and Carol. the method of payment. QUESTION 13 1. The Institute of Progressive Studies, a well-known San Francisco research foundation, promises Teofilo, a college professor, that it will pay him a grant of $55,000 in order that Teofilo pursue his studies of the lives of "third-world revolutionaries." Teofilo is not required to produce any specific work product in exchange for this grant. He makes it clear to the Institute that he intends to obtain leave without pay from the university where he teaches and to move 1000 miles to San Francisco to complete the work. Accordingly, Teofilo secures the leave and makes the move. However, soon thereafter he is informed by the Institute that regrettably the grant will have to be revoked due to the Institute's unexpected loss of some government funding in the latest government budget "cut-backs." Teofilo then sues the Institute to recover his various losses. What is the best answer regarding the resolution of this lawsuit? A . Teofilo prevails due to the promissory estoppel exception to the consideration requirement of contract law. B . Teofilo prevails since the Civil Rights Act protects against national origin discrimination. C . The Institute prevails since there was never an explicit written contract with Teofilo. D . The Institute prevails due to the Impossibility of Performance doctrine of contract law. QUESTION 14 1. The District of Columbia sues several big gun manufacturers contending that the guns they sell in large quantities legally in Virginia often illegally find their way into the District where they are used to commit crimes and to injure residents of the district as well as the criminals. The District wants to recover its public hospital expenses from the gun manufacturers and accordingly sues them for the tort of negligence. The likely result of this lawsuit will be: The District will win since guns are very dangerous products for which the gun manufacturers are absolutely liable for. The District will win if the residents who are shot by the guns do not have health insurance. The District will lose if it cannot establish a factual and proximate causation connection between the original sale of the guns and the harm to the District residents. The District will lose since Virginia is a state and the District is not a state. QUESTION 15 1. Dan, a doctor, renders aid to Eve, who is injured. Dan can recover the cost from Eve even if Eve was not aware of Dan's help under quasi-contract. only if Eve was aware of Dan's help. only if Eve was not aware of Dan's help. under no circumstances. QUESTION 16 1. Jay is seeking to avoid performing a promise to pay Karen $150. Jay is claiming a lack of consideration on Karen's part. Jay will win if he can show that before Jay's promise, Karen had already performed the requested act. Karen's only claim of consideration was the relinquishment of a legal right. Karen's asserted consideration is only worth $50. the consideration to be performed by Karen will be performed by a third party. 1. QUESTION 17 Fran buys a franchise from Global Services, Inc. In their agreement, Global may specify requirements for the business form of the organization only. standards of operation only. requirements for the form of business and standards of operation. none of the above. QUESTION 18 1. Jim and Gail contract for the sale of 500 computers. The agreement states, "The obligations of the parties are conditional on Gail obtaining financing from First Bank by August 1." This clause likely is a condition precedent. a condition subsequent. a concurrent condition. not a condition. QUESTION 19 1. General Contractor Corporation (GCC) begins constructing a building for High-rise Apartments, Inc. In mid-project, GCC asks for $150,000 more, claiming an increase in ordinary business expenses. High-rise agrees. This agreement generally is enforceable as an accord and satisfaction. enforceable because of the unforeseen difficulties. unenforceable as an illusory promise. unenforceable due to the preexisting duty rule. QUESTION 20 1. John, Jr., a college freshman, 17 years old, and thus a minor, lies about his age, stipulating in writing that he is 19, and buys a big, flatscreen TV from Good Buy. The TV is badly damaged when John, Jr. and his friends are tossing around a football in his dorm room. He returns the TV to Good Buy and demands his money back, saying he is just 17 years old. The likely legal result of this situation would be: Since he is a minor he can disaffirm the contract and get all his money back and is protected due to his youth and immaturity. Since he is a minor he can disaffirm the contract and get some money back but because he lied, he is liable for the damage and depreciation to the TV. He cannot disaffirm even though he is a minor since he misrepresented his age and the misrepresentation is in writing.. He cannot disaffirm the contract since a big, flat-screen TV would probably be regarded as a "necessity" for a college student today