Please use IRAC (Issue, Rule, Analysis, and Conclusion).

l. Bilateral vs. Unilateral Contracts.Pennys was the principal owner of Ray Pennys, Inc., a real estate firm. Pennys signed an exclusive brokerage agreement with Nickles in which Pennys promised to find a purchaser for Nickles's property within ninety days. In return, Nickles promised to pay Pennys if the property is sold to any purchaser to whom it is shown during the ninety-day period. Nickles tried to cancel the brokerage agreement before the ninety-day term had expired. Pennys had already advertised the property, put up a "for sale" sign, and shown the property to prospective buyers. Nickles claimed that the brokerage contract was unilateral and that she could cancel at any time before Pennys found a buyer. Pennys claimed that the contract was bilateral and that Nickles's cancellation breached the contract. Discuss whether the contract is bilateral or unilateral and who should win.

2. Express vs. Implied Contracts.Engelcke Manufacturing, Inc., planned to design and manufacture Whizball, an electronic parlor game. Engelcke asked Eaton to design the electronic schematic for it. Engelcke told Eaton that he would be paid for the reasonable value of his services upon the project's completion, but no written contract was signed. The specific amount and terms were also not discussed. Eaton had produced a plan that represented 90 percent of the finished design when Engelcke terminated his employment. Eaton sued Engelcke for breach of an implied-in-fact contract. Engelcke claimed that they had an express contract. Who is correct? Discuss.

Example of IRAC methods:

Jurisdiction. While wondering around the Iowa State Fair for the first time with his family, Patterson encountered a booth called "Home Goods" in the Industries Building that sells solar-powered microwaves, among other things. EarthPros Inc., an Oregon corporation, makes these microwaves in its manufacturing plant in Happy Valley. Home Goods, LLC, a Minnesota retail company, has been purchasing the microwaves from EarthPros for the past two years to sell at the Iowa State Fair. EarthPros does not advertise in Iowa, but markets its products to retailers such as Home Goods. Home Goods has been renting a booth space in the Iowa State Fair for the past 5 years, and is widely known by attendees of the fair for its high-quality and affordable consumer products. Thrilled by this newly discovered environmental friendly innovation, Patterson bought one solar-paneled microwave for his home. He set up the solar panels and wiring as instructed and allowed a sufficient amount of solar input before using. He placed a plate of leftover roasted chicken breast, yams, and green beans that his wife made the day before in the microwave. About thirty second into the job, the microwave made a screeching noise. When Patterson pulled on the door handle, the microwave exploded in Patterson's face, causing burns and injuries to his head, face, neck and arm. Patterson is now suing both Good Homes and EarthPros in Iowa state court for allegedly causing his injuries. Can the Iowa state court exercise personal jurisdiction over defendant Home Goods?

Issue: Whether Iowa state court has personal jurisdiction over Home Goods.

Rule: A court may exercise personal jurisdiction over an out of state company through its long-arm statute if that company has min contacts with the state. A company has min contacts when it "advertises or sells its product within the state or places its good into the 'stream of commerce' with the intent that the goods be sold in the state.

Analysis: Home Goods is from Minnesota, so this means it is an out of state defendant. The Iowa court will have personal jurisdiction over Home Goods (HG) if it advertises or sales its product in Iowa or places them in the stream of commerce. From the facts, we do not know if HG advertises in Iowa. But it does sell its goods in Iowa. It has been selling its products to customers at the Iowa State Fair for the past 5 years. Patterson bought a microwave at the Iowa State Far from HG. HG also sells other things at the fair too. Even if HG does not sell anything in Iowa, the court may still have personal jurisdiction over HG if it places its products in the stream of commerce in order to sell it to residents of Iowa. Unfortunately, we don't know if HG is doing that. But it could be inferred that HG is likely to place its goods in the stream of commerce by the sheer fact that is a retailer. But just based on the fact that it sells goods in Iowa, there are sufficient min contacts.

Conclusion: Yes, Iowa court can exercise personal jurisdiction over HG.