Business Law 10-13

Article 2 of the UCC governs

the sale of goods.

Jennifer has offered to sell her laptop computer for $500 to Jack. She tells Jack that the computer is only six months old but, in fact, it is three years old, and does not work well. Jack agrees to buy the computer based on Jennifer's representations. This contract is a

voidable contract that Jack can void.

West was interviewing for a job as the CFO of a small start-up. After going through three rounds of interviews, West was on the phone talking to one of the vice presidents of the company, Tanesha. West said she hoped she would get the job, and Tanesha said, “You’ve got this! You don’t even need to wait for the official letter. Pack your bags—we want you as our CFO!” Based on this, West quit her job and ended her apartment lease. A week later, West received a letter in the mail stating that she did not get the job. What can West now do?

West can sue the company and argue promissory estoppel.

Hideo owns 200 acres of land. Hideo offers to sell the land to Ivan for $1,500 per acre. Ivan replies that he does not need 200 acres of land, but would like to buy 40 acres at $1,500 per acre. Hideo agrees to sell but does not identify which 40 acres. Later, Hideo refuses to sell any land to Ivan. What is the result?

Hideo wins; this agreement is too indefinite because it does not identify which 40 acres are to be sold.

India is a poor college student struggling to work and keep up with her studies. Jelani, her uncle, promises to pay India support of $200 per month for the next six months. Although Jelani didn't ask her to, India quits her job to focus on her studies for the next six months. Jelani makes one payment and then stops with no explanation. If India sues, what is the likely result?

India may win under the doctrine of promissory estoppel.

Jaime offered to buy Kevin's bike. Jaime is the

offeror.

Which of the following represents a unilateral offer?

"I will pay you $50 if you mow my lawn."

What element of a contract refers to both parties receiving some measurable benefit?

Consideration

Which of the following scenarios describes an offer?

Luther says to Consuela, "My son needs tutoring in Spanish. I'd like you to come to my home on Monday and Wednesday nights beginning next week for two-hour sessions, and I'll pay you $40 per hour. I'd like you to tutor him for the next three months."

Which of the following is NOT required to establish promissory estoppel?

A promise made by the plaintiff in response to the defendant's promise

Caelan tells Ray, “I will sell you my computer for $2,000, and you need to let me know by tonight” Ray does not give Caelan an answer immediately. Caelan goes home and opens the laptop and it does not work. Caelan calls Ray and tells Ray the computer is no longer for sale. Ray may

not force Caelan to sell the computer because Caelan revoked the offer.

When Aisha comes home from work one evening, she finds that her yard has been mowed and trimmed. Later, a man comes to collect for the yard work done. Aisha refuses to pay for the work because she did not hire him to do her yard work. Which of the following answers is most accurate?

Aisha would not have to pay for the yard work.

Camdyn offers to sell Cadence his 1955 Thunderbird convertible. Before Cadence can accept the offer, lightning strikes the car, and it is totally destroyed. Which of the following is true?

The offer is terminated by law due to the destruction of the agreement’s subject matter.

Drew is devastated when his dog, Loki, goes missing. Drew posts flyers offering a $100 reward for the return of Loki. Divit sees a flyer, goes to Drew’s home with the flyer, and tells Drew, “I am going to find Loki for you. I won’t rest until he is found. Give me the $100 reward.” Does Drew have to give Divit the $100?

No, because this is a unilateral contract that may only be accepted by performance.

JD mails an offer to Iris that states, "I offer to sell you my car for $2,000. If I don't hear from you in 10 days, I will assume you are willing to buy the car for the stated price." JD hears nothing by the deadline and assumes he has a deal. What is the result?

Iris is not bound. Generally, an offeree must say or do something to accept an offer.

Winter hires Frankie to pick up her daughter, Elliott, from school and take her to a local library for story time so Winter can attend ballet classes. At the end of the month, Winter does not tell Frankie to not pick up Elliott, so Frankie does so. Frankie continues to do this for an additional month. After four additional weeks of this, when Frankie drops off Elliott and asks for payment for the past month, Winter refuses. What would a court likely decide?

There is an implied contract, and Winter must pay Frankie.

The basic distinction between an executory contract and an executed contract is that

all parties have fulfilled their obligations in an executed contract.

Courts may award damages called quantum meruit, which means 

"as much as he deserves."

Iyana tells Jin, “I will sell you my laptop for $1,500, and you need to let me know by tonight.” Jin does not give Iyana an answer immediately. Iyana goes home and opens the laptop and realizes she needs to keep her computer. Iyana calls Jin and leaves him a voice mail message that the computer is no longer for sale. Without hearing the voice mail message, Jin texts Iyana that he accepts the offer. Which of these is true under the mailbox rule?

Jin accepted the offer, and there is now a valid contract.

If an offer specifies no time limit in which to accept, the

offeree has a reasonable period during which to accept.

Clay and Roan are negotiating the sale of Clay’s car to Roan. Roan tells Clay he needs a little time to consider the last offer Clay made. A week later, Roan emails Clay, “I accept your offer.” Clay and Roan

have a valid contract because Clay did not specify the method of acceptance and accepting via email a week later is reasonable.

An invitation to bargain

is not an offer.

Dorian breeds Scottish Fold kittens and informs Stevie that she is a cat breeder. Stevie says she is interested in purchasing one of her kittens. Dorian calls Stevie a month later and says Stevie’s kitten is ready for pickup and Stevie owes her $1,000. Stevie refuses, stating they did not have a valid contract. Dorian states they did have a valid contract. Who is correct?

Stevie. The terms of the offer were not definite.

Jerry offers to shovel the snow from Tyree's driveway for $35. Tyree replies "OK." This is an example of an

express, bilateral contract.

Travel Lines offered to sell 10 round-trip tickets to Elif. Travel Lines stated that the acceptance must be in writing by USPS next-day service. Which of the following acceptances will create a contract between Travel Lines and Elif?

Elif sends a letter by USPS next-day service to Travel Lines stating that she will buy the tickets.

Juan is devastated when his cat, Lufi, goes missing. Juan posts flyers offering a $75 reward for the return of Lufi. Jaslyn finds Lufi and returns him. Does Juan have to give Jaslyn the $75?

Yes, because this is a unilateral contract that is accepted by performance.

The courts will find an implied contract when

conduct of the parties indicates they intended an agreement.

What is the best definition of the mailbox rule?

Acceptance of an offer is generally effective upon dispatch; terminations are effective when received.

Javaris enters a dentist office and points to a damaged tooth. The dentist, Matt, treats the tooth. If Javaris refused to pay and Matt sued,

Matt would win; this is an implied contract.

Which term refers to whether an offeree accepts an offer by promising, by making a down payment, or by performing?

Manner of acceptance

Collector Antwon displays his beer can collection at the local swap meet. Jiao sees the collection and is interested in buying it. Antwon says he will sell the collection for $1,500. Jiao says she really likes the collection but is only willing to pay $1,000. Which of the following is correct?

Jiao's counteroffer terminates Antwon's offer of $1,500.

Which of the following types of property would be considered "goods" under the Uniform Commercial Code?

A computer

Jules and Corey are in an ethics class together. Jules tells Corey she will sell Corey her textbook. Corey assumes Jules means her ethics textbook because they are in that class together. Jules means her chemistry textbook. Corey agrees to buy Jules’ textbook. Do they have a valid contract?

No, because there is no meeting of the minds.