Lake University entered into a contract with Carpenter Co. by which Carpenter agreed to complete the construction of a new dormitory no later than March 1. Lake University also entered into a separate contract with Plumber Co. which agreed to install all the plumbing fixtures in the dormitory after the building was constructed. Because Carpenter did not finish the construction until December, the plumbing installation was delayed by more than eight months. Plumber sued Carpenter for breach of contract alleging that Carpenters failure to complete the building by March 1 caused Plumber to incur damages of $10,000. Is Plumber entitled to sue Carpenter as a third-party beneficiary of the Lake-Carpenter contract? Explain. James Co., whose plant is located in Chicago, contracts to sell a machine tool to Braun Co. in New York, who is a manufacturer. What are Sellers delivery obligations assuming the goods are shipped: (1) F.O.B. Chicago, (2) F.O.B. New York, (3) C.I.F. New York, (4) F.A.S. Lake Queen (a freighter)? John Farmer ordered a new tractor from Lykins Tractor Sales, which delivered the tractor to Farmers residence on Friday. On Saturday, Farmer tried to use the tractor, but discovered that it was inoperable. The battery was dead, the water pump was missing, and various other parts were defective or improperly installed. On Monday, Farmer called Lykins to notify it that he wanted to return the tractor. Farmer stated that he would leave the tractor in his front yard and Lykins agreed that an employee would pick up the tractor within a few days. On Wednesday, the tractor was stolen from Farmers yard. Lykins asserts that Farmer is liable to pay for the tractor, but Farmer insists that Lykins bears the risk of loss. Who is correct? Explain. Corbin, a 37 year-old college graduate, enrolled for dancing lessons at Williston Dance Studio. After the instructor told Corbin that he had excellent potential, Corbin signed several contracts for additional lessons eventually paying over $20,000 for 2,700 hours of future dance lessons. Each contract included the following provision in bold face type: NONCANCELLABLE CONTRACT. I UNDERSTAND THAT NO REFUNDS WILL BE MADE UNDER THE TERMS OF THIS CONTRACT. Corbin was seriously injured in an automobile accident and rendered him permanently disabled and unable to continue the dance lessons. Corbin demanded a refund of the money paid to Williston Dance Studio. The studio refused. Corbin sues alleging impracticability of performance. Willistons attorneys argued that Corbin waived his right to claim impracticability. Are the attorneys for Williston correct? Explain. Riley, a 71-year old man, lived in an area of the southern United States where the heat and humidity are extremely high in the summer. In May, Riley called Giles Appliance Store about purchasing a new air conditioner for his house. After visiting his house, Giles recommended a suitable unit that Riley agreed to buy for $1,000. The unit, however, had a leak that allowed the refrigerant to seep out. By August, the blower continued to operate but the air conditioner no longer cooled the air. As a result, temperatures in the house exceed 100 degrees causing Riley to suffer a heart attack. Riley was taken to the hospital and his medical expenses exceeded $100,000. Riley sued Giles for breach of contract. The court found that Giles did breach the implied warranty of fitness. Should the damages include Rileys medical expenses of $100,000? Explain. Julie Murdock was interested in buying a house offered by Greg and Beth Puckett. During a tour of the house, Julie noticed an apparatus labeled water conditioner in the basement and asked, What kind of water do you have here? Mrs. Puckett replied, Its good. Its fine. Its a little hard but this system takes care of it. Mr. Puckett, though present, remained silent. Julie purchased the house and after moving in, discovered the water came from a well and that it smelled like rotten eggs. Sulfur was in the water, and although the water was a little hard, the sulfur had nothing to do with the water being hard. After treating the water, the water still smelled like sulfur and chlorine, which was used to treat it. After exhaustive attempts to fix the smelly water problem, Julie hired a plumber, who connected the house to a municipal water system. The cost was $30,000. Julie sues the Pucketts for fraud. Did either or both of the defendants commit fraud? Why