Read the following case and apply the concepts that you have learned from Unit # 3 -CONTRACTS in the textbook and answer the three questions below the facts of the case.

RAY'S RUGS v. JOANNE ROSINI

Joanne called Ray's Rugs which is a new business in the neighborhood recently started by Raymond Smith. Ray came to her house with rug samples, advertising brochures and order catalogues for rugs. Joanne wanted to get wall-to-wall rugs on her first floor where the living room and dining room were. She picked out a rug with a bright color and designs that she liked and told Ray that she would pay him for the rugs and the installation. He proceeded to measure the two rooms so he could cut the rug to fit precisely in her two rooms with the living room being larger than the dining room.

Within a week, Ray returned to install the rugs which he had cut precisely to fit both rooms. Joanne looked at the rugs as he unfolded them and started to lay them down. She yelled out "Oh no, these rugs don't match the walls and furniture and I don't want them." Ray told her that he had already cut the rugs to fit the rooms and it was too late. Joanne opened the front door and told him to leave and take the rugs. He quietly left with his equipment and the rugs. When he went back to his store, he took out of his jacket a billing statement for $5,200. He decided to call his lawyer as he felt that this should be taken to court.

A. As to contract law, what arguments and concepts might be used to argue on behalf of Joanne and what arguments and concepts might be used by Ray?

B. In regards to what you have read so far on contract law and sale of goods, what advice would you give to Ray in conducting his business and in using written contractswhen dealing with customers?

C. If this went to court and you were the judge, how would you rule and state legal reasons behind your opinion?