QUESTION 1

Mollie loses her dog Lassie and posts a reward for $1,000 if she is returned safely. Mike does not see the reward posted, but finds Lassie and returns her to Mollie. If Mike later finds out about the reward he can:

	a.	Collect nothing, because he did not know about the reward beforehand
	b.	Collect the full reward as long as he has proof Mollie offered a reward
	c.	Collect half the reward because he did not ask for the $1000 when he returned the dog
	d.	Collect nothing because the reward was excessive

2 points

QUESTION 2

Where two parties contract for the sale of an old and very rare Stradivarius violin, and the offeror changes his mind, a court would likely grant the offeree's request that the court force the sale under the doctrine of specific performance.

True

False

2 points

QUESTION 3

Liquidated damages are most likely to be upheld when actual damages are difficult to determine in advance and the amount of liquidated damages is such that they are not considered a penalty

True

False