Directions: For each scenario, do the following (and type your response in (a) (b) (e) format): (a) state which law (UCC Article 2 or Common Law) applies to the scenario, (b) define and apply the 4 elements of contract formation to determine whether or not the parties formed a contract, (e) state the contract terms if you decide the parties formed a contract. If you decide the parties did not form a contract, state "No contract formed." SCENARIO 1 Beth graduated with her Accounting degree and applied for a job with Ace Accounting Temps HR manager: We can use you immediately, starting tomorrow morning. Pay is $55,000 per year for 45 hours per week, working Monday through Saturday Beth: I accept. In get the 45 hours completed on Monday through Friday: I spend weekends with my kids. I can start tomorrow morning. I am excited to work here. SCENARIO 2 Cal Carpenter designs and installs custom kitchens, designing the remodel from start to finish. Lee wants a new kitchen and interviews Cal for the job. Lee: I want everything to go down to the frame. The new cabinets and new counters must be measured SCENARIO 2 Cal Carpenter designs and installs custom kitchens, designing the remodel from start to finish. Lee wants a new kitchen and interviews Cal for the job Lee: I want everything to go, down to the frame. The new cabinets and new counters must be measured to fit my height requirements (Lee is 6'2" and tired of low counters), and new appliances installed. You select the best appliances you can find as this is the last house I will ever own, and it needs to fit me like a glove. And I want the best appliances for once in my life...no more bargain stuff Cal: I have taken measurements and am familiar with the cost of the best appliances on the market. Here's what I can do: Appliances will cost $34,000, materials $6,000, and my design and labor $30,000. I can start the project in 5 weeks; this is my busy season. Lee: I need work to begin immediately as my son is getting married at home in 4 weeks. The remodel must be completed by then. Cal: To meet your deadline, I'll need my assistant, so total labor will cost $45,000. (Hint: When a contract is a mixed (goods and services, aka "hybrid) contract, the cost of the goods versus the cost of the services is not the sole factor used to determine which predominates, goods or services. Remember: if goods predominate a hybrid or mixed contract, then Article 2 of the UCC applies. If services are the predominant reason for the contract, then the common law of contracts applies) mysReview View o Search SCENARIO 3 Stan Student is a college freshman, living in the university dorm. He wanted an HD TV for his room, and went to Best Appliances, Inc. to purchase the TV on credit. He signed a Financing Agreement obligating him to pay for the TV in 12 equal monthly payments and took possession of the TV. Stan is 17, a minor. No adult co-signed the contract. SCENARIO 4 Bob offers to paint Abe's house for $10,000. This cost includes all materials needed to remove old siding, rotten wood, and reseal windows, and of course, paint. Two weeks into the job, Bob tells Abe that he underestimated the amount of rotten siding needing replacement, that to complete the job properly, Abe must pay more. Bob: Once I got to work, I found more rot than I first thought. I'll need $2,000 more to complete the job. If you can't agree to that, then you will need to find someone else to finish the job. Abe: OK, I promise to pay you the extra $2,000. It will be hard, but I need this work completed. I plan to put the house on the market as soon as you are finished. I need to move to Dallas for work ASAP. Bob completes the work, and Abe gives Bob a check for $10,000. Bob sues Abe for the extra $2,000. Did Abe and Bob form a contract regarding the extra $2,000? Why or why not? Attached are some contract (K) scenarios Please review these scenarios demonstrating knowledge of: 1. which law applies for analysis, 2. the 4 elements of a contract (with definitions), and 3. the outcome posed in the scenario, contract (K) or no contract (K) or breach of contract. 20180217 Contracts Practice - 4 Scenarios Rev 2.docx Post questions to this thread for additional explanation. Your Instructor will respond. Directions: For each scenario, do the following (and type your response in (a) (b) (e) format): (a) state which law (UCC Article 2 or Common Law) applies to the scenario, (b) define and apply the 4 elements of contract formation to determine whether or not the parties formed a contract, (e) state the contract terms if you decide the parties formed a contract. If you decide the parties did not form a contract, state "No contract formed." SCENARIO 1 Beth graduated with her Accounting degree and applied for a job with Ace Accounting Temps HR manager: We can use you immediately, starting tomorrow morning. Pay is $55,000 per year for 45 hours per week, working Monday through Saturday Beth: I accept. In get the 45 hours completed on Monday through Friday: I spend weekends with my kids. I can start tomorrow morning. I am excited to work here. SCENARIO 2 Cal Carpenter designs and installs custom kitchens, designing the remodel from start to finish. Lee wants a new kitchen and interviews Cal for the job. Lee: I want everything to go down to the frame. The new cabinets and new counters must be measured SCENARIO 2 Cal Carpenter designs and installs custom kitchens, designing the remodel from start to finish. Lee wants a new kitchen and interviews Cal for the job Lee: I want everything to go, down to the frame. The new cabinets and new counters must be measured to fit my height requirements (Lee is 6'2" and tired of low counters), and new appliances installed. You select the best appliances you can find as this is the last house I will ever own, and it needs to fit me like a glove. And I want the best appliances for once in my life...no more bargain stuff Cal: I have taken measurements and am familiar with the cost of the best appliances on the market. Here's what I can do: Appliances will cost $34,000, materials $6,000, and my design and labor $30,000. I can start the project in 5 weeks; this is my busy season. Lee: I need work to begin immediately as my son is getting married at home in 4 weeks. The remodel must be completed by then. Cal: To meet your deadline, I'll need my assistant, so total labor will cost $45,000. (Hint: When a contract is a mixed (goods and services, aka "hybrid) contract, the cost of the goods versus the cost of the services is not the sole factor used to determine which predominates, goods or services. Remember: if goods predominate a hybrid or mixed contract, then Article 2 of the UCC applies. If services are the predominant reason for the contract, then the common law of contracts applies) mysReview View o Search SCENARIO 3 Stan Student is a college freshman, living in the university dorm. He wanted an HD TV for his room, and went to Best Appliances, Inc. to purchase the TV on credit. He signed a Financing Agreement obligating him to pay for the TV in 12 equal monthly payments and took possession of the TV. Stan is 17, a minor. No adult co-signed the contract. SCENARIO 4 Bob offers to paint Abe's house for $10,000. This cost includes all materials needed to remove old siding, rotten wood, and reseal windows, and of course, paint. Two weeks into the job, Bob tells Abe that he underestimated the amount of rotten siding needing replacement, that to complete the job properly, Abe must pay more. Bob: Once I got to work, I found more rot than I first thought. I'll need $2,000 more to complete the job. If you can't agree to that, then you will need to find someone else to finish the job. Abe: OK, I promise to pay you the extra $2,000. It will be hard, but I need this work completed. I plan to put the house on the market as soon as you are finished. I need to move to Dallas for work ASAP. Bob completes the work, and Abe gives Bob a check for $10,000. Bob sues Abe for the extra $2,000. Did Abe and Bob form a contract regarding the extra $2,000? Why or why not? Attached are some contract (K) scenarios Please review these scenarios demonstrating knowledge of: 1. which law applies for analysis, 2. the 4 elements of a contract (with definitions), and 3. the outcome posed in the scenario, contract (K) or no contract (K) or breach of contract. 20180217 Contracts Practice - 4 Scenarios Rev 2.docx Post questions to this thread for additional explanation. Your Instructor will respond