Business Law I

Quiz No. 3

I. MULTIPLE CHOICE

This section contains five (5) multiple choice questions. Choose the response for each question that is

most accurate and write its corresponding letter in the space provided. Each correct response in this

section is worth two (2) points.

1. ________.

Which of the following IS NOT considered to be a legally binding offer?

A. Bill tells his adult softball team that he will pay $50 to the first player to cut his lawn.

B. A store mails its customers a circular that advises of this week's sale items.

C. Walmart advertises that the first 50 customers to arrive at its new store for its Grand

Opening will be entitled to purchase one of only fifty 50" big screen TVs for $50.

D. None of the above are valid, legally binding offers.

2. ________.

Which is true of the "objective reasonable person" standard?

A. The standard is used in negligence cases but not in contract disputes.

B. The standard is used in contract disputes but not in negligence cases.

C. The standard is used in both contract disputes and negligence cases.

D. The subjective intent of the parties governs in contract disputes and negligence cases.

3. _______.

Which of the following common law rules requires an offer to be accepted on the

same terms that it was proposed without any material deviation from the offer's terms?

A. The Mailbox Rule

B. The Mirror Rule

C. The Mutuality of Obligation Rule

D. Promissory Estoppel

4. ________.

Which of the following is true with regard to an express offer?

A. Express offers must be clear and definite as to all material terms.

B. The person making an offer may also fix the terms upon which an offer can be accepted.

C. An express offer may be rescinded at any time prior to a valid acceptance occurring.

D. All of the above are true.

5. ________.

Which of the following is true of fraud and misrepresentation?

A. It prevents a true meeting of the minds and frustrates mutual and voluntary assent.

B. It is generally inconsistent with the duty of good-faith and fair dealing owed to all parties in

privity of contract.

C. Neither A nor B is true.

D. Both A and B are true.

II. PRACTICAL SKILLS SECTION(Max. 15 points)

This Section consists of three Questions that require the demonstration of basic case research and case

reading skills. All work must be your own without assistance or input from anyone else. The maximum

number of points for correct responses in this Section equals fifteen (15).

Using either WestLaw or Google Scholar, look up and read the following case entitled Allen v. Bloomingdales, Inc., 225 F. Supp. 3d 254 (D.N.J. 2016), involving a corporate personnel matter and allegations of unlawful, discriminatory conduct, and answer the following questions after reading this United States District Court case arising out of the District of New Jersey:

A. The Court in the Allen case must consider the validity of an employment agreement that

contains an arbitration clause that was acknowledged by the employee at the time of hire

and that allegedly formed part of her employment contract. Prior to doing so, the Court set

forth the elements required by New Jersey Law for a valid and enforceable Contract in

Section A under the "III. Discussion" portion of its Opinion. Identify each of those elements

cited by the Court in this regard. (Max. 5 Points).

B. Explain whether the Court found that Bloomingdale's arbitration agreement with its

employees was valid/enforceable and the reasons provided by the Court for its holding.

(Max. 10 Points)

III. SHORT ANSWERS

This section requires you to review the following case scenario and respond to each of the questions that

follow it with your critical thought, knowledge of the proper legal principles and your ultimate analysis.

Your correct responses to each of the questions in this Section are worth a maximum score of fifteen (15)

points

.

Case Scenario

:

Ivan is a 21 year-old owner of a landscaping and lawn service business in Greenville, NJ. Virgil is an

adult customer of Ivan's services and had been for six months. As the winter season approached, Ivan

spoke to Virgil about drumming up business in Virgil's neighborhood for his new snow removal

division. Ivan told Virgil that he will take $10 off Virgil's monthly landscaping bill for six months, starting

in March of 2021, for each new customer that Virgil refers to Ivan for snow removal at Ivan's snow job

rate of $100 per house. Virgil tells Ivan that he is willing to help him out and use his best efforts to do

so. Ivan then handed Virgil thirty fliers that bore Ivan's name, phone number, some marketing graphics

and a general description of the snow removal services offered at the $100 rate discussed. Virgil thanks

Ivan for his anticipated assistance and the two men quickly conclude their business in a cordial manner.

Virgil gave Ivan's flyers to twenty of his friends and neighbors and spoke favorable to them about Ivan's

new service. Fifteen of them agreed to use Ivan for their snow removal services. In the winter months,

12 of these friends/neighbors did use Ivan for snow removal on at least one occasion. Ivan performed

the initial services requested by Virgil's friends and neighbors and gave them all his discounted, new

customer rate of $75 for their initial snow removal job. Ivan also advised each new customer that his

standard rate of $100 would apply to their second and subsequent snow removal jobs when

requested. Only 3 of Virgil's referrals used Ivan a second time. Ivan charged these three referral

customers 100 for their second and subsequent snow removal jobs. All three of these referral

customers offered the flyer that Virgil gave them to their friends and families when Virgil told them that

Ivan agreed to give him a $10 discount off the price for services for six months for each new customer

he referred to Ivan. As a result of the referrals from these 3 friends of Virgil, Ivan received five new

repeat customers.

In February 2021, Virgil caught up with Ivan and asked him to begin his regular landscaping services

again in March. During the course of the conversation, Ivan thanked Virgil for his assistance and for the

referral of three new customers to him, and gratefully advised Virgil that he would receive a credit on

his monthly landscape bill in the amount of $30 for the next six months as promised. Virgil was

surprised to hear that he would receive only $30 off his monthly landscaping services and protested to

Ivan that he sent him more than ten referral customers for which Ivan provided snow removal

services. Virgil told Ivan that he expected to receive a full $10 credit off of his Spring/Summer services

for six months for every snow removal job that Ivan performed for all 12 of the referrals that Virgil

provided and Ivan serviced. Ivan sarcastically said "yeah, right! You just want free services from me"

and exclaimed "that was certainly not part of any deal that we had." Both men became angry at one

another, exchanged hostile words and Virgil walked away frustrated and outraged that he would not get

the full amount of the credits that he anticipated. Just before leaving, however, Virgil threatened to

hire another landscaper and a lawyer to sue Ivan for breach of contract and to recover the amount of a

monthly credit of at least $120 for the Spring/Summer months, as well as any difference in price should

the new landscaper charge him in excess of $100 per month for such services.

A. Did Ivan and Virgil have a valid, enforceable Contract? In your answer, be sure to explain (a) whether

there was a meeting of the minds between the two, (b) whether any such agreement formed a bilateral

or unilateral contract and (c) what the material terms of any such Contract are. (Max. 10 points).

B. Did Ivan commit fraud in his dealings with Virgil? In your response, be sure to explain the required

elements of fraud and to address each element prior to stating your conclusion. Remember that for

fraud to exist, each element must be present and proven by a preponderance (a likelihood or 51%) of

the evidence. (Max. 5 points)

IV. SHORT ANSWERS

This section requires you to review the following case scenario and respond to each of the questions that

follow it with your critical thought, knowledge of the proper legal principles and your ultimate analysis.

Your correct responses to each of the questions in this Section are worth a maximum score of ten (10)

points

.

Case Scenario

:

Lord Berkeley Corp. recently concluded its discussions with Dewey, Cheatem & Howe, a mid-sized

accounting firm, after rejecting a Big-5 accounting firm's offer to undertake an annual company-wide

audit at higher hourly rates. Lord Berkeley Corp. was in search of a reputable accounting firm to

conduct an audit of its public bidding contracts and its revenue derived therefrom and to provide the

results of its audit within thirty to sixty days. Initial discussions with a Big-5 accounting firm occurred in

this manner:

After initial telephone discussions, the Big-5 Accountants forwarded a written proposal for services to

Lord Berkeley Corp.'s President that contained a fair, flat project rate to Lord Berkeley and indicated that

the "Accountants agree to use their best darn efforts in accordance with reasonable and professional

practice standards to complete the requested corporate audit within sixty (60) days." Because of the

time-sensitive nature of the work, the Big-5 Accountants Proposed Agreement was sent via overnight

mail on Tuesday afternoon and provided that "this Agreement and all offers contained herein shall be

null and void if not signed, accepted and faxed within 48 hours of receipt by the Lord Berkeley

Corp." Lord Berkeley Corp.'s mailroom received the Big-5 Accountant's written proposal for services on

Wednesday around noon and the President personally received the Proposal on Wednesday afternoon

at 5:00 p.m., just prior to the close of business and right before he left the office on that day.

On Friday morning, the President dictated a cover letter and left a signed copy of the Big-5 Accountant's

written proposal Agreement with his Secretary with explicit instructions to send and fax it back ASAP to

the Big-5 Accounting firm. The cover letter indicated that the hourly rates and everything else in the

agreement was acceptable and underscored that the audit work be performed and completed within 60

days. The President's Secretary personally mailed the signed cover letter and signed Agreement to the

Big-5 Accounting Firm in a properly addressed envelope at 4:00 p.m.,

i.e ., within 48 hours of the President's receipt of the proposed written Agreement. However, the Secretary neglected to fax the signed letter and Agreement to the Big-5 Accountants before leaving work on that Friday. Horrified that night by her failure to do so, the President's Secretary rushed into the office on Saturday morning and faxed a copy of the President's signed letter and the signed Agreement to the Big-5 Accountants' office around 9 a.m.

A. Is there a legally binding and enforceable Contract between the Big-5 Accountants and Lord Berkeley

Corp.? Explain your response and identify all of the relevant legal principles that guided your analysis

and conclusion. (Max. 7 Points)

B.If the parties had reached the same agreement on all material terms verbally via telephone, would the

Statute of Frauds require this type of professional service agreement to be in writing? Explain. (Max. 3

Points)

V.

Randolph enrolled in a business law class and purchased a new business law textbook from the local

bookstore. He dropped the class during the first week and sold the book to his friend Scott. Before making

the sale, Randolph told Scott that he had purchased the book new and had owned it for one week. Unknown

to either Randolph or Scott, the book was in fact a used one. Scott later discovered some underlining in the

middle of the book and attempted to avoid the contract. Randolph refused to refund the purchase price,

claiming that he had not intentionally deceived his friend. May Scott avoid the contract? Explain why or why

not?