You recently started working for the law firm of "1-800-Call Saul" as a legal assistant. Part of your job includes researching legal issues and writing memos for your boss, Mr. McGill. He uses these memos as references when advising clients. Luckily, you can draw on the knowledge you gained in your Business Law I class to help you!

Mr. McGill has a new prospective client, Mr. Dwight Schutte, who after retiring from office work, is starting a new business called "Baltar's Beets, Pong, and Paint" (BBPP). The concept will be a casual restaurant with a beet-based menu and a sports bar with 50 ping pong tables and an outdoor space for paintball

Mr. Schutte will be hiring several new employees and purchasing equipment and goods. He does not know much about contracts and wants to make sure all the contracts he enters into are valid and enforceable. He also needs to know about his responsibilities and liabilities as an employer/principal. He has lots of questions, and Mr. McGill has passed these onto you to research and then provide answers to him to use when he counsels Mr. Schutte. "BBP&P" will be a large company and Mr. McGill wants to impress Mr. Schutte because he will be a big client to bring to the firm. He hopes having such a big client will let him spend less time trying to sign up clients at nursing homes and he can move into a better office.

All the questions are listed below. Be sure to write your answers in FULL SENTENCES. Do not provide yes or no answers. Be sure you use correct spelling, punctuation, and grammar. You want to make a good impression on both your boss and on the client. Your answers should be written in such a way that someone who has not taken Business Law and knows nothing about the subject will be able to understand them.

Good luck - it all depends on you. If you succeed, you will impress Mr. McGill and he may take you to Cinnabon to celebrate!

1. What are the six elements of a valid, enforceable contract? List each element and provide an example of each element to make it easier for Mr. Schutte to understand. (12 points)

2. If one of the six elements is missing, can there still be an enforceable contract? What are the two legal rule rules that allow a promise to be enforced even if one of the elements is missing? Give the name of the two rules and an example of each one. (6 points)

3. Do all contracts have to be in writing to be enforceable? Mr. Schutte thinks he can do most of his business on a handshake. Is this true? Do not just say "yes" or "no". (4 points)

4. What is the rule that states there are certain contracts that must be in writing to be enforceable? Provide an explanation of it. The list the types of contracts that fall under the rule and must be in writing and then give an example of each. (14 points)

4. Mr. Schutte wants to know if the following contracts must be in writing? Do not just say "yes" or "not. Give a written explanation for why the contract would or would not have to be in writing. (10 points)

A. A contract to purchase five ping pong tables for the price of $200.00 each.

B. A contract to hire Michael Scott as a consultant for a period of two years.

C. A contract in which Mr. Schutte promises to make the payments on Kevin Malone's loan for his anger management training.

D. A contract for Mr. Martin to give Mr. Schutte 100 paintball guns upon his marriage to Angela Martin.

E. A contract for Mr. Schutte to buy the family beet farm from Mose Schutte.

5. When Mr. Schutte is signing contracts, sometimes he or the other parties to the contracts have questions about some of the terms. If they discuss these questions, but do not include the results of the discussions in the contract, and a dispute arises later between the parties, can they testify in court about the discussions they had before or at the time they were signing the contract? What is the legal rule that governs this type of situation? When does this rule apply?Give an example of when this rule might be applied in a contract dispute. (6 points)

6. Are there any exceptions to this rule? If so, what are they and give an example of each one. (8 points)

7. Mr. Schutte is thinking about hiring a manager named Darryl Philbin, but he has some concerns about being responsible for Mr. Philbin's actions because although he is a hard worker and extremely competent, sometimes his behavior can be unpredictable. Mr. Schutte knows that there is something called "agency", but he does not really understand how it works. These are his questions.

A. If Mr. Philbin works for Mr. Schutte, what sort of duties does Schutte, as the principal, owe to Philbin as his agent? What duties does Philbin, as an agent, owe to Mr. Schutte, the principal? List the duties owed by Schutte and Philbin to each other as principal and agent and give an example of each. (15 points)

B. Mr. Schutte sends Mr. Philbin to Dunder Mifflin to pick up office supplies for BBPP and Mr. Philbin accidentally backs his GMC Sierra into the loading dock, causing thousands of dollars of damage to Dunder Mifflin property. Would Mr. Schutte be responsible for the damages caused by Mr. Philbin? Why or why not? What if Mr. Philbin saw his roommate Jim on the loading dock and because he was upset with him for being so messy, he backed into the loading dock and yelled, "Clean THIS up Jimbo!" (10 points)

C. Mr. Philbin gets off work and stops off at the bar "Nuts R US" to drink a few adult beverages and feed the pet squirrels. While there he runs into his former co-worker, Toby Flenderson, who has stopped off on his way home from T.J. Maxx. They both have a few too many drinks and end up getting into a fight after Mr. Philbin teases Toby about his crush on their former co-worker Pam. Would Mr. Schutte be responsible for any resulting damages to the bar, or injuries Mr. Philbin caused to Mr. Flenderson? Why or why not? (10 points)

D. Mr. Schutte wants to name all his menu items after Battlestar Galactica characters. He will have to purchase the rights to use these names. Due to an unfortunate incident at a Comic-Con event, he believes NBC Universal will not sell the rights to him. He decides to be as silent as a Sith Lord and instructs Mr. Philbin not to disclose that he is working for him, but instead to tell NBC Universal that Mr. Philbin himself wants to purchase the rights. If Mr. Philbin follows these instructions, who will be liable for any contract formed with NBC Universal? Is it ethical for Mr. Schutte to not disclose his identity to NBC Universal (5 points)