Marketing Agreement (24 points):

On October 15, 2015 Samantha and Lucas, who is 19 years old, both signed a written document that described their agreement that will begin on the next New Years Day. Lucas will create a social media profile and presence for Samanthas pet sitting business. Sam and her employees, Abby and Ethan, are excited about this because they hope the marketing campaign will help Sams business grow; and if the business grows they hope to be promoted and make more money. During the negotiations Lucas told Sam in detail about what kinds of services he provided to other clients including creating and maintaining a LinkedIn profile, Instagram, Facebook, Snapchat, TikTok, and Twitter accounts, as well as placing articles in local newspapers. Sam is pleased because other marketing firms have told her theyd charge her $1,000 a month for such a package of services. As of May of 2016 only a Facebook account had been created for Sams business. Sam comes to you and asks for help. She shows you a one page document signed by both Samantha and Lucas. Among other provisions the agreement states the following:

(1) Lucas agrees to create and maintain a social media profile for Samanthas pet sitting business in exchange for monthly payments of $100 for the term of the agreement.

(2) The term of the agreement is eighteen months from the start date. The start date is January 1, 2016.

(3) Any dispute arising out of this agreement will be subject to binding arbitration before a single arbitrator in Bangor, Maine, according to the rules of the American Arbitration Association.

(4) This document contains the entire agreement between Samantha and Lucas about the subject matter and replaces any prior agreements or understandings.

A. Samantha wants to sue Lucas in the small claims court division of District Court in Portland for breach of contract because he hasnt created multiple social media accounts for her. What are Lucass best defenses? [4 points]

B. When presenting evidence, will Samantha be allowed to testify about Lucass description of his services during the negotiations? Why? [4 points]

C. What provision of the Statute of Frauds requires this contract to be in writing? [2 points]

D. Will Samantha be successful in getting a remedy to require Lucas to provide more services (as in, will a court order specific performance in this case)? Why? [4 points]

E. If Sam doesnt pursue a case against Lucas, can Abby enforce Sams contract rights against Lucas? Or, put another way, is Abby a third party beneficiary with the legal right to enforce this contract? Why? [4 points]

F. If Sam stops paying Lucas before the end of the term can Lucas enforce the agreement against Sam and make her pay the remainder? Why? [3 points]

G. Does your answer to F change if Samantha, Abby and Ethan are all 15 years old? Why? [3 points]

Question 3 (3 points) Wimble ordered 1,000 pro-quality luminescent orange tennis balls from Sports Unlimited at a cost of $8,000. On June 1, Sports Unlimited shipped standard white tennis balls, but Wimble rejected them. Wimble bought the same number of pro- quality luminescent orange balls from another supplier the same day for $9.000. In a suit against Sports Unlimited for breach of contract, what approximate dollar amount of damages will Wimble recover and why? Question 4 (5 points) Carl lives in Portland, Maine and contracted with Acme Furnaces Co. for the purchase and installation of a new furnace in his home. Carl selected the furnace he wanted, accepting no suggestions from Acme's heating specialist. The furnace operated fine, but it did not heat the entire house. The size of the blower on the furnace was not sufficient to propel hot air to the third floor. Carl sued Acme for breach of the implied warranties of merchantability and fitness for a particular purpose. What will the result be? Will Carl or Acme win? Why? Does it matter if Carl is buying the furnace for his home or his business? Question 6 (18 points) Please match the term to the appropriate description or example Clearly stated fact or promie made orally or in writing by seller to buyer Legal doctrine that requires the party injured by a breach of contract to take reasonable steps to decrease/lessen the amount of damages Requirement that parties to contract not act arbitrarily, irrationally or unreasonably 1. Mitigation An automatic promise given by the seller of a product who knows how the buyer want to use the product, advises the buyer about the product, and knows or should know the buyer is relying on the recommendation. 2. Consideration 3. Statute of Frauds 4. ME implied warranty of merchantability Bargained-for exchange between parties without which their agreement is not enforceable 5. ME implied warranty of fitness 6. Merger clause This document contains the entire agreement between the parties with respect to the subject matter and 7. Good faith