EU BLaw 1 Exam 2 Fletcher

If no time is stated, when will an offer terminate?

After a reasonable period of time

What is an ad in the newspaper or a circular describing goods and stating prices considered?

An invitation to buyers to make an offer to buy goods

What is an offer that binds the offeror to keep an offer open for a specified period of time known as?

An option

Arnie negligently stopped his car on the highway. Beth, who was driving along, saw Arnie's car in sufficient time to attempt to stop. However, Beth negligently put her foot on the accelerator instead of the brake and ran into Arnie's car. Who has legal responsibility for the accident?

Because both parties were negligent, in a state that follows comparative negligence doctrine, both parties will share the liability for their injuries

Is an implied in fact or an express contract more enforceable?

Equally enforceable

Is there another name for an oral contract? If so, what is it?

Expressed contract

On Tuesday John sends a letter to Arlene rejecting her offer, but later the same day John changes his mind and sends a letter of acceptance to Arlene. When is the letter of acceptance effective?

It is effective only if it is received by Arlene before she receives the rejection

Henry was burning leaves in his backyard. One of the burning leaves was lifted by the wind into Bob's yard next door. It landed on the lawn mower which exploded, setting fire to the wooden lawn furniture. What would Henry's best argument against liability to Bob be?

It was not foreseeable that the lawn mower would explode

If the parties do not provide definite enough terms in their contracts, what will the courts do?

It will be avoidable

Joe intentionally pushed Bill into a fence negligently erected by Sam around Sam's swimming pool. The fence caved in and Bill nearly drowned. Who is liable?

Joe because of his intentional intervening conduct

Maxine offered to sell her video camera to Tom for $200 and also stated to Tom, "I will give you two weeks to accept my offer." One week later Tom learned that Maxine had sold the video camera to Cindy. What happened to the offer? Does Maxine have any liability to Tom?

Maxine has revoked her offer to Tom.

Chris was driving a car with defective brakes very slowly down Fifth Avenue looking for a parking place. Mindy jumped out into the street five feet in front of his car. Chris could not help but hit her. What is Chris's best defense to the charge of negligence?

Mindy crossed in the middle of the street, which is against the law

Helvey brought suit against the Wabash County REMC (REMC) for breach of implied and express warranties. He alleged that REMC furhished electricity in excess of 135 volts to Helvey's home, damaging his 110-volt household appliances. This incident occurred more than four years before Helvey brought this suit. In defense, REMC pleads that the Uniform Commercial Code's Article 2 statute of limitations of four years has passed, thereby barring Helvey's suit. Helvey argues that providing electrical energy is not a transaction in goods under the UCC but rather a furnishing of services that would make applicable the general contract six-year statute of limitations. Is the contract governed by the UCC? Why?

UCC, it qualifies as a good since it is a thing, existing, and movable.

When is an acceptance effective?

Upon dispatch

When is an offer effective?

When it is communicated to the offeree

In what situations would landowners have liability to trespassers?

Where the landowner has rigged up a trap to injure anyone coming onto the property without permission or where a landowner next to a nursery school has an unfenced swimming pool and a trespassing child drowns.

Alice makes a material misrepresentation of fact to Betty, and based upon the misrepresentation, Betty enters into a contract. Betty now realizes she was deceived and wants to get out of the contract. Is this contract voidable at Betty's option?

Yes

Can Caden sell his car to anyone, if he tells Sandy that he will give her two days to decide if she wants to buy his car?

Yes

If a person's 150-pound sheep dog has a propensity to jump enthusiastically on visitors, will the animal's keeper be liable for any damages done by the dog's playfulness?

Yes

Martha puts an ad in her company's newsletter saying she would pay $5,000 for a first-issue Grace Kelly stamp to the first person who accepted her offer. Martha decides she would rather go on a European vacation and changes her mind about investing in the stamp. Martha posts a sign at the executive water fountain saying the offer is no longer valid. A foreman from a branch plant takes a flight to the Chicago main office to see Martha and accept her offer. Does Martha owe him any money for breach of contract?

Yes

Sara, a lawyer, drew a deed for Robert by which Robert was to convey land to Rick. The deed was correct in every detail. Robert examined and verbally approved it but did not sign it. Then Sara erased Rick's name and substituted her own. Robert subsequently signed the deed with all required legal formalities without noticing the change. Was Sara guilty of forgery?

Yes

Tom's dog has bitten three mail carriers, but Tom can't bear to chain him up. What the dog bites the newsboy, will Tom be strictly liable?

Yes

When determining negligence, will a blind person be held to the standard of care of the reasonable blind person rather than that of the reasonable sighted person?

Yes

On June 1, a civic club made an offer to pay a beer distributor to have ten kegs delivered to the city park for a July 4th fundraising event. On June 30, the city passed a new law prohibiting consumption of alcohol in the city park. What will happen to the civic club's offer?

The civic club's offer is terminated on June 30

Elvis makes an offer to Fred, but before Fred can accept, the state supreme court decides a case that makes Elvis's offer illegal. What is the effect of the court's decision on the offer?

The court's decision automatically terminates the offer

Charlene hears about a reward being offered by the local television station for information leading to the arrest and conviction of a local rapist. She supplies the requested information and the suspect is then arrested and convicted. Can Charlene collect the money? Was the reward an offer for a contract?

The offer by the television station was an offer made to the general public to enter into a unilateral contract, which offer Charlene has accepted.

Jack has been in the business of selling carpeting for 20 years. He calls Bob, who is opening another branch of his furniture stores, and offers to sell him 100 yards of carpet at $20 per yard. Bob agrees and sends back the following letter confirming the deal: "Dear Jack: As we discussed on the phone January 3, we accept your offer of 100 yards of Saxony "heather blue" carpeting at the rate of $20 per yard. We also reserve the right to purchase any additional yardage we need to carpet our other showroom facilities at the same rate for one year from that date. Very truly yours, Bob. Is there a contract?

There is a contract for only 100 yards of carpeting.

St. Charles Drilling Co. contracted with Osterholt to install a well and water system that would produce a specified quantity of water. The water system failed to meet its warranted capacity, and osterholt sued for breach of contract. Does the U.C.C. apply to this contract?

the well is a good, but the installation is a service. since the service applies more, the UCC would not apply.

Anna is about to buy a house on a hill. Prior to the purchase she obtains a promise from Betty, the owner of the adjacent property, that Betty will not build any structure that would block Anna's view. In reliance on this promise Anna buys the house. Is Betty's promise binding? Why or why not?

Betty's promise is not binding and there is no contract. The essential elements of a contract (mutual assent, consideration, legality and legal capacity) are not all present. However, the doctrine of promissory estoppel may be applicable. If a jury finds that Anna acted reasonably in reliance on Betty's promise, Betty's promise will be enforceable.

"I promise to pay you $100 if you will promise to fix my car next month." What kind of contract is this an offer for?

Bilateral contract

Matt says to Lynn, "If you will mow my lawn, I will give you $20." Lynn replies, "Okay." Under these facts, which party is a promisor and which is a promisee?

Both

Maria posted several signs in the neighborhood offering $50 for the return of her lost cat. Dave calls to get a description of the cat and tells Maria, "I'll look for your cat." Is a contract formed by Dave's call to Maria?

False, when he brought back the cat, a contract is formed.

Owen telephones an order to Hillary's store for certain goods, which Hillary delivers to Owen. Neither party says anything about the price or payment terms. What are the legal obligations of Owen and Hillary?

Implied contracts. Falls under the UCC since it is goods. Omission of a stated price would require payment of a reasonable price with full payment occurring upon possession of goods

If there is no time specified for the acceptance of an offer, when does the offer terminate?

Automatically after a reasonable period of time

What must an offer have to be effective?

Be sufficiently definite and certain, Be communicated to the offeree, Manifest an intent to enter into a contract

Barb goes to Marlin's Department store to look for clothes. The store happens to be in the process of remodeling, and there is a lot of clutter in the aisle. Barb trips over the clutter and breaks her leg. What standard of care does the store have toward Barb under the circumstances?

Because Barb is a business visitor, the store must exercise reasonable care to protect her against dangerous conditions she is unlikely to discover

Ray is informed that his six-year-old child is shooting in the street with a .22 rifle. Ray fails to take the gun away from the child. The child unintentionally shoots Bill, a pedestrian. Who is liable to whom?

Ted is liable to Bill

Calvin uses fraud to induce Maria to promise to pay money in return for goods he has delivered to her. Has a contract been formed? If so, what kind? What are the rights of Calvin and Maria?

This is a voidable contract. A contract was formed but Maria, at her option may rescind the contract. Calvin has no right to avoid the contract if Maria decides not to rescind.

Sam said to Carol, ''Kim is going to sell me a good used car next Monday and then I'll deliver it to you in exchange for your computer but I'd like to have the computer now.'' Relying on this statement, Carol delivered the computer to Sam. Sam knew Kim had no car and would have none in the future, and he had no such arrangement with her. The appointed time of exchange passed, and Sam failed to deliver the car to Carol. Has a crime been committed?

Yes, false pretenses

Jonathan writes to Willa, stating "I'll pay you $150 if you reseed my lawn." Willa reseeds Jonathan's lawn as requested. Has a contract been formed? If so, What kind?

Yes, unilateral. Jonathan must pay $150 to Willa

James offers to sell his fishing boat to Brenda for $3,000. Brenda says she will apply for a loan and will buy the boat within a week. Is a contract formed? And if so, when was it formed?

Yes, when Brenda tells James she will buy the boat

What is/are considered in determining the application of the reasonable person standard?

Physical disability, superior skill or knowledge, emergency circumstances

What is an obligation imposed by law where there has been no agreement or expression of assent by word or act on the part of either party involved?

Quasi contract

If Janice, while driving her car, negligently runs into Paul, a pedestrian who is carefully crossing the street, what is Janice liable for?

Negligence for physical injuries Paul sustains from the collision because Janice's negligent conduct proximately caused harm to a legally protected interest

Does the Uniform Commercial Code apply only to the sales of goods by manufacturing firms who ship goods to buyers interstate?

No

George offered to paint Catherine's barn for $3,000. Catherine said she would accept the offer if George would paint the woodshed too. At this point, do they have a valid and enforceable contract?

No

Does the common law "mirror image" rule apply to an offer and acceptance of that offer in a contract for the sale of goods?

No.

What Article of the UCC governs a contract to sell five acres of land?

None of them, the UCC does not govern real estate

Pedro receives an unordered three-CD set in the mail accompanied by the statement, "This CD set can be purchased for the special price of $19.95. If the CDs are not returned within two weeks they will be deemed accepted and the payment is due within 30 days of receipt of CDs." Is Pedro under obligation to return the CDs or pay for them?

Pedro is under no obligation to either return the CDs or to pay for them, he may use them or give them or throw them away.

What is a person who makes a promise called?

Promisor

The Brewers contracted to purchase Dower House from McAfee. Then, several weeks before the May 7 settlement date for the purchase of the house, the two parties began to negotiate for the sale of certain items of furniture in the house. On April 30, McAfee sent the Brewers a letter containing a list of the furnishings to be purchased at specific prices; a payment schedule including a $3,000 payment due on acceptance; and a clause reading: ''If the above is satisfactory, please sign and return one copy with the first payment.'' On June 3, the Brewers sent a letter to McAfee stating that enclosed was a $3,000 check; that the original contract had been misplaced and could another be furnished; that they planned to move into Dower House on June 12; and that they wished that the red desk also be included in the contract. McAfee then sent a letter dated June 8 to the Brewers listing the items of furniture they had purchased. The Brewers moved into Dower House in the middle of June. Soon after they moved in, they tried to contact McAfee at his office to tell him that there had been a misunderstanding relating to their purchase of the listed items. They then refused to pay him any more money, and he brought this action to recover the outstanding balance unless the red desk was also included in the sale. Will McAfee be able to collect the additional money from the Brewers?

Mirror Image Rule. Here, McAfee did not indicate in his April 30 letter to the Brewers that a particular manner of acceptance was required. Therefore, the Brewer's letter of June 3, together with the enclosed $3,000 check, the amount due upon acceptance of the contract, manifested their assent to the items listed in the April 30 letter from McAfee. The June 3 letter was both definite and seasonable, and the reference to the red writing desk was not expressed in language making acceptance conditional upon inclusion of the desk. This item, then, was merely a proposal for an addition to the contract as McAfee requested, they did send a letter of their own. This was reasonable under the circumstances since they had misplaced the contract and, therefore, the letter constituted an effective acceptance of McAfee's offer.