On October 1, 2019, Eugene Carr, the owner of a sporting goods store in Queens, N.Y., telephoned Joe Flom, a distributor of athletic warm-up suits. Carr said "I offer to buy 1000 pairs of Extension Athletic Wear for my store at your advertised price of $10,000. Please consider this offer quickly. I need for your acceptance to be received at my office by October 3." Flom replied, in a telephone conversation, I am considering your offer, but I think the price is low. Would you consider a sales price of $12,000?" After a few seconds, Carr said "No, sorry. $10,000 is the offering price." Flom then said he would get back to Carr within the next 24 hours. On October 2, Flom sent a response by certified letter that stated: I agree to your offer and will sell you the 1000 pairs of Extension Athletic Wear for $10,000. I accept your offer in its entirety." Flom's letter was sent on the afternoon of October 2. At the end of the business day on October 3, Carr telephoned Flom and told him, as per the terms of the offer, the "deal was off." Flom's letter accepting the offer was received by Carr the next day. The 1,000 pairs of Extension Athletic Wear were shipped, but upon seeing the goods, Carr refused to accept the goods and send them back, claiming that no contract was made. In the meantime, Carr bought 1000 pairs of Extension Athletic Wear from another distributor. Flom subsequently commenced a lawsuit to recover money damages for breach of contract. A. Was the offer terminated during by Flom's response during the telephone conversation of October 1? Why or why not? Explain. (12 credits) B. Assuming the offer was not revoked and still valid, was there a valid acceptance to create a contract? Explain. (15 credits) C. Changing the above facts, assume that Flom's acceptance was sent by certified mail on October 2nd and received by Carr on the 3rd. It stated "I accept your offer and will sell the Extension Athlete Wear for $10,000. It adds: All disputes regarding this agreement will be settled by arbitration based on the law of the State of California." Does a contract exist under traditional rules? Explain. (13 credits) On October 1, 2019, Eugene Carr, the owner of a sporting goods store in Queens, N.Y., telephoned Joe Flom, a distributor of athletic warm-up suits. Carr said "I offer to buy 1000 pairs of Extension Athletic Wear for my store at your advertised price of $10,000. Please consider this offer quickly. I need for your acceptance to be received at my office by October 3." Flom replied, in a telephone conversation, I am considering your offer, but I think the price is low. Would you consider a sales price of $12,000?" After a few seconds, Carr said "No, sorry. $10,000 is the offering price." Flom then said he would get back to Carr within the next 24 hours. On October 2, Flom sent a response by certified letter that stated: I agree to your offer and will sell you the 1000 pairs of Extension Athletic Wear for $10,000. I accept your offer in its entirety." Flom's letter was sent on the afternoon of October 2. At the end of the business day on October 3, Carr telephoned Flom and told him, as per the terms of the offer, the "deal was off." Flom's letter accepting the offer was received by Carr the next day. The 1,000 pairs of Extension Athletic Wear were shipped, but upon seeing the goods, Carr refused to accept the goods and send them back, claiming that no contract was made. In the meantime, Carr bought 1000 pairs of Extension Athletic Wear from another distributor. Flom subsequently commenced a lawsuit to recover money damages for breach of contract. A. Was the offer terminated during by Flom's response during the telephone conversation of October 1? Why or why not? Explain. (12 credits) B. Assuming the offer was not revoked and still valid, was there a valid acceptance to create a contract? Explain. (15 credits) C. Changing the above facts, assume that Flom's acceptance was sent by certified mail on October 2nd and received by Carr on the 3rd. It stated "I accept your offer and will sell the Extension Athlete Wear for $10,000. It adds: All disputes regarding this agreement will be settled by arbitration based on the law of the State of California." Does a contract exist under traditional rules? Explain. (13 credits)
