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Question 1. Jeff, age 17, and his friends Jed and Josh, both age 18, are high-school seniors. After a home football game, they decide to
Question 1. Jeff, age 17, and his friends Jed and Josh, both age 18, are high-school seniors. After a home football game, they decide to stop at a nearby Steak n Shake. All three order a steakburger and vanilla shake. When the server drops of their bill, Jeff, whose brother is a law student, tells his friends, "My brother says that I really don't need to pay for my part of the order. I really didn't need it. I wasn't that hungry. I just came along to hang out. So I'll ask that my part of the bill be taken off." Is Jeff right that doesn't have to pay for his steakburger and shake? What principle(s) of contract law, if any, support Jeff's assertion that Steak n Shake should take out his part of the bill? If Jeff is wrong, what contract-law principle(s) is he misapplying? Discuss.
Question 2. Sun Airlines, Inc., prints on its tickets that it is not liable for any injury to a passenger caused by the airline's. negligence. If the cause of an accident is found to be the airline's negligence, can it use the clause as a defense to liability? Why or why not?
Question 3. In selling a house, Matt tells Ann that the wiring, fixtures, and appliances are of a certain quality. Matt knows nothing about the quality, but it is not as specified. Ann buys the house. On learning the true quality, Ann confronts Matt. He says he wasn't trying to fool her, he was only trying to make a sale. Can she rescind the deal? Why or why not?
Question 4. Elle, an accountant, certifies several audit reports to Flite Corporation, Elle's client, knowing that Flite intends to use the reports to obtain loans from Good Credit Company (GCC). Elle believes that the reports are true and does not intend to deceive GCC, but does not check the reports before certifying them. Can Elle be held liable to GCC? Why or why not?
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