JURI 530 Final Exam
JURI 530 Final Exam Liberty University
- Decco Inc. and Graski LLC have been doing business together for several years. Decco provides accounting services for Graski’s construction business. Last winter, when Decco had some storm damage at its offices, Graski sent some workers over to repair the damage at no cost to Decco. The following summer, Graski found itself being audited by the IRS. Decco agreed to advise Graski during the audit at no cost, as a way of thanking Graski for its help the previous winter. Is the agreement between Decco and Graski supported by consideration?
- If Company A makes an offer for a unilateral contract to Company B, when will the contract be formed?
- Company A and Company B enter into an international contract for the sale of
Assume the CISG applies to this agreement. The agreement is memorialized in a completely integrated written agreement signed by both Company A and Company
B. A dispute between Company A and Company B breaks out, and at trial, Company A attempts to introduce parol evidence. Which parol evidence is likely to be admitted over Company B’s parol-evidence-rule objection? - General Contractor enters into a contract with a municipality for the construction of a pedestrian bridge. The contract provides that “any departure from the terms of this contract subjects the General Contractor to a $5,000 per day penalty which the General Contractor agrees shall be paid by the general contractor on demand.”
- Garrison has lost his employer-issued laptop someplace in the manufacturing facility he works at. He has looked for it for days but cannot find it. On Monday, Garrison tells his co-worker, Gina, that if she finds the laptop before he does, he will pay her $250. Gina says she will “keep her eyes open for it.” Throughout the day, Gina checks for the laptop in places she usually sees Garrison working. On Tuesday, Gina finds the laptop and returns it to Garrison. Choose the answer that best describes any contract between Garrison and Gina.
- Alan contracts to sell 100 pairs of shoes to Rex. The contract price is $6,000. Rex wrongfully refuses the shoes when Alan delivers them and Rex refuses to pay for them. Alan resells the shoes for $5,100. Choose the best answer:
- Collins contracts with Baxter for Baxter to prepare Collins’s income tax returns in exchange for payment of $500. Collins’s tax return is due on April 15. On April 14, Baxter calls Collins and tells her that he will need to be paid $900 to complete preparation of Collins’s tax return. Collins agrees to pay Baxter $900. Choose the best answer:
- Jasper contracts to sell 900 personal communications devices to CommCo at a total cost of $9,000. Jasper agrees to deliver the devices on or before September 9. On September 9, Jasper delivers 810 devices with a note indicating that the last 90 devices necessary to complete the order are “backordered” and will be delivered eventually, but that Jasper cannot say when they will be delivered. Does CommCo have to accept the delivery?
- ITDone is a computer company. It contracts to sell computer hardware systems that will manage BigBox’s inventory. The contract provides that the hardware will be delivered in one installment and that BigBox’s payment will be due once the hardware is delivered and tested. ITDone delivers and installs 90% of the hardware and informs BigBox that it will do no further work on the project. When BigBox refuses to pay ITDone, ITDone sues BigBox for breach of contract. Assume the contract is governed by the UCC, and not the common law. Choose the best answer:
- Trevor wants to buy a new home. He is interested in the house located across the street, owned by Jack and Connie. Trevor has a professional real-estate appraiser appraise Jack and Connie’s home, and the appraiser appraises the house at $300,000. Trevor asks Jack and Connie if they would sell their house to him for $275,000. Jack and Connie agree, and the three memorialize their agreement in a written purchase agreement signed by all of them. The closing is scheduled for June 30. On June 25, Jack and Connie tell Trevor that they will not sell the house to him. Is Trevor entitled to specific performance of the agreement, or must he accept damages for breach of the contract? Fully explain your answer, including any rule or rules that support it.
- Cupco makes plastic cups for the fast-food industry. Tommy owns Tommy’s Fast Food. Tommy contracts to purchase 500,000 plastic cups for his fast-food restaurants at a price of $75,000, to be delivered in 30 days. At the time of contract, $75,000 is the market price for cups purchased at that quantity. Seven days after agreeing to buy the cups, a documentary criticizing the use of disposable plastic cups goes viral on social- media platforms, and the price for plastic cups falls considerably. In fact, three days before Cupco’s delivery date, Tommy learns that Drinkup, one of Cupco’s competitors, will sell him the same quantity and quality of cups for $59,500. Tommy is shocked that he can find the same cups at such a low price and wants to void his contract with Cupco and buy cups from Drinkup instead. He argues that he should not have to honor his contract with Cupco because it is unconscionable for him to pay so much for the cups.
- Tasha operates a business consulting firm. She contracts with Raleigh to provide business consulting services for his new company for a period of six weeks. Tasha and Raleigh sign a written agreement. Assume that it is a completely integrated
After signing the agreement and working on Raleigh’s project for three days, Tasha asks Raleigh if he would be willing to extend the time for her to work on the project to seven weeks to give Tasha some additional time to accumulate data for the project. Raleigh verbally agrees that it would be good to have more data and agrees to extend the time for performance to seven weeks. At the end of the six-week period, Tasha has not completed her work, and Raleigh refuses to pay. If Raleigh argues that the verbal agreement is inadmissible evidence under the parol evidence rule, will his argument be successful? Fully explain your answer, including any rule or rules that support it. - Manager interviews Candidate. At the end of the interview, Manager offers to hire Candidate on a one-year contract with a salary of $38,000, plus health insurance, if he will sign the Manager’s standard contract of employment. Candidate says that he’d have to think about the offer, but that “I’d agree to start tomorrow if the offer was for $50,000.” Choose the best answer:
- XYZ employs Zena to work as its director of operations. The term of the contract is one year, beginning on June 15. The annual salary is $75,000. On June 5, before the employment begins, Zena quits. XYZ pays a recruiter $2,500 to find a new director of operations. The recruiter immediately finds an equally qualified and capable replacement employee who is willing to serve as director of operations for an annual salary of $80,000, beginning June 15. Choose the best answer:
- Renee interviews for a job. At the end of the interview, the owner of the company, Ellie, tells Renee that she will be in touch. Ellie mails a letter agreement that offers to hire Renee on a one-year contract with a salary of $48,000, plus health insurance. The letter indicates that the agreement must be accepted by June 15. On June 13, Renee countersigns the letter agreement and mails it back to Ellie. On June 14, Ellie calls Renee and leaves a voice mail for Renee informing her that Ellie revokes the offer. On June 16, Ellie receives the countersigned letter from Renee in the mail. Choose the best answer.
- Diane owns a parcel of land. She verbally agrees to sell her parcel to Emory for $275,000. The parcel has a fair market value of $240,000. She transfers the parcel to Emory, but Emory never pays for it. Assume that the contract is unenforceable because it fails to satisfy a requirement of the Statute of Frauds. What is Diane’s best argument?
- Seller offers, in writing, to sell her house to Buyer for $295,000. Buyer inspects the house and mails a written acceptance letter indicating that “I agree to buy the house for $295,000, including the lawn tractor parked in the garage of the house when I inspected it today.” Choose the best answer:
- Which of the following contracts is most likely to be enforced by way of the remedy of specific performance?
- Gary and Buddy want to vacation in Daytona Beach, Florida, during spring break. Gary’s grandfather owns an oceanfront condominium in Daytona Beach. Gary and Buddy are both 17 years old. Gary and Buddy contract to pay Gary’s grandfather $1,500 to rent his condominium during spring break. The week before spring break, Gary and Buddy are arrested and are unable to travel to Daytona Beach because of their court hearing dates. Are Gary and Buddy obligated to pay $1,500 for the condominium?
- Linda runs a manufacturing company. She meets with Roy, who has worked for the company for 40 years. Linda and Roy agree that neither will terminate the employment relationship for the next two years. The next month, Linda has a change of heart and wants to terminate Roy’s employment. Linda argues that the alleged verbal agreement is unenforceable because the Statute of Frauds requires that it be in writing. Choose the best answer:
- Airplane Company, Inc. (ACI) and Sealant Factor, Inc. (SFI) agree that SFI will sell as much specialty sealant as ACI requires to manufacture commercial airplanes during the next 12 months at a price of $3.25 per gallon. For the first six months of the contract, ACI requires 200 gallons of sealant every month. In the fourth month, ACI orders 2,500 gallons. SFI only provides 200 gallons to ACI, and ACI sues for breach of
What evidence is least important to ACI’s claim? - Boris has a lot of landscaping mulch delivered to his home and wants some help spreading it around in the landscaped areas of his three-acre yard. He talks to a local landscaper, Dennis, about doing the work. Boris makes it clear that performance is the only manner of acceptance that is invited. After five hours of work, Dennis has spread about half of the mulch around the yard, as directed. Boris tells Dennis that he will not pay him anything and to leave the job site.
- Hardhart, Inc. sells 200 yellow construction-safety hats to BuilderSolutions, a retailer that provides tools, workwear, and other equipment to the construction industry. BuilderSolutions’s purchasing manager calls Hardhat’s telephone order line, places its order, pays the contract price with a credit card, and receives the 200 construction hats as requested. However, the hats are made of ordinary, thin plastic and do not provide any safety benefits to the wearer. In fact, when BuilderSolutions inspects the shipment of hats, one hat is dropped on the floor and the hat cracks. When BuilderSolutions calls to complain, Hardhat claims that the hats were not sold with any kind of a warranty, and it refuses to refund BuilderSolutions’s contract price. Is Hardhat right? Fully explain your answer, including any rule or rules that support it.
- Yans put his car up for sale. The car runs well but has 201,800 miles on it. Before showing the care to a prospective buyer, Yans manipulates the dashboard odometer on the car to read “101,800.” Buddy agrees to buy the car from Yans believing the car has 101,800 miles on it. If Buddy wants to avoid his contractual obligation to pay for the car, what is his best argument?
- Rob is interviewing for a job as a sales associate. He has his final interview with the sales manager, Nancy. Nancy offers him the position, details the salary and benefits, and tells him that if he accepts the offer, she’d like him to start work in two weeks. Rob is unsettled about taking the job and not sure he wants to commit to the position. He tells Nancy that he would like to take a day or two to think through the offer carefully before making a decision. Nancy says, “Just let me know what you decide.” The next morning, Nancy texts Rob the following: “Hey Rob. We found someone who is a better fit for the job and the position is now filled. Thanks for considering us.” Choose the best answer
- MapleSolutions contracts with Breakfast House to sell 800 gallons of maple syrup to
- Breakfast House. MapleSolutions agrees to deliver the maple syrup on or before November 15. On November 8, MapleSolutions delivers 700 gallons of maple syrup with a note stating that the remaining syrup would be delivered the following day. The next day MapleSolutions delivers 100 gallons of maple syrup. Is Breakfast House entitled to reject the maple syrup and refuse to pay for it? Choose the best answer:
- Company A and Company B enter into a contract for Company B to provide consulting services to Company A. The agreement is memorialized in a completely integrated written agreement. A dispute between Company A and Company B breaks out, and at trial Company B attempts to introduce parol evidence. Which parol evidence is likely to be admitted over Company A’s parol-evidence-rule objection?
- Seller contracts to sell Buyer 100 widgets for $100. At the time of the contract, the fair market value for widgets is $1.25 per widget, and the two agree that payment will be due upon delivery. Seller fails to tender any of the widgets on time. Buyer looks to all of his suppliers but cannot find anyone with the widgets he needs. This is problematic, because Buyer has another contract to resell the 100 widgets to Buyer’s biggest and most important customer, WidgetCash. The only other manufacturer with widgets in stock is selling them for $3 per widget. Left with no other choice, Buyer buys 700 widgets for $3 per widget so that he will not default on his contract with WidgetCash. Choose the best answer:
- EngineMaker contracts with AutoMaker to sell 600 electric engines at a cost of $1,750 each. EngineMaker agrees to deliver the engines in three installments of 200 engines each on June 7, July 7, and August 7, respectively. On June 1, EngineMaker delivers 194 engines together with a note stating that the remaining six engines would be delivered the following day and that all future deliveries would be complete and timely. Does AutoMaker have to accept the delivery of 194 engines?
- Tonway Logistics (Tonway) is a private courier company. Tonway hires Robbie, the seventeen-year-old son of one of Tonway’s truck drivers, to work during the months of June, July, and August cleaning the truck wheels and tires of Tonway’s transportation fleet. Tonway agrees to pay Robbie $17 for each truck that he cleans. Robbie turns out to be a very hard worker, and on his first day of work, he cleans the tires of 20 trucks. Tonway thinks $340 is more than it expected to pay Robbie for eight hours of work and wonders if it can use the infancy defense to avoid paying Robbie and to terminate his employment contract early. Do you think Tonway’s argument will be successful? Fully explain your answer, including any rule or rules that support it.
- Garland contracts to resurface the asphalt parking lot at DeliverCo’s distribution compound. The contract provides that the contract price will be $120,000. Garland resurfaces one-third of the parking lot, but refuses to complete the job. As a result, DeliverCo has to hire someone else to resurface the rest of the parking lot for $60,000. The fair market value of the work performed by Garland is $30,000. Choose the best answer:
- Owner contracts with Paver for Paver to place a brick walking path in the courtyard of Owner’s office complex at a cost of $22,000. Paver delegates his duty to perform the work to another local company called PaveCo. PaveCo paves walkway, but some defects in its work result in damages to Owner in the amount of $9,000.
- ACO Inc. contracts to repair BCO Inc.’s custom storefront sign on the front of BCO’s retail locations. In the course of repair, ACO replaces six wire connectors and includes the cost of the wire connectors in the ACO invoice. The total cost of the wire connectors is $1.66. The total cost of repairing the sign is $431.66. Is the transaction covered by the Uniform Commercial Code?
- PaintCo contracts to paint each of three warehouses on TruckCo’s distribution compound. The contract provides that the contract price will be $75,000. PaintCo paints the first two warehouses, but not the third. As a result, TruckCo has to hire someone else to paint the third warehouse at a cost of $30,000. Choose the best answer:
- Cal wants to buy Del’s 40-acre farm. Del does not want to sell the farm. Cal know that Del has been failing to report income from his farming operations on the farm for over a decade. Cal tells Del that, unless Del agrees to sell the farm to Cal, Cal will report Del to the Internal Revenue Service. Del agrees to sell the farm to Cal, only to avoid being reported to the Internal Revenue Service. If Del wants to avoid selling the farm to Cal, what is the best defense for Del to raise?
- Buyer contracts to purchase an undeveloped parcel of land from Seller. Buyer will need to obtain financing from a bank to purchase the parcel and is concerned about the possibility of rising interest rates and his ability to secure financing. Accordingly, Buyer negotiates a provision in the purchase agreement that provides that “Buyer’s obligation to purchase the parcel is conditioned upon him securing 30-year mortgage financing at an interest rate no higher than 3.75%.” Buyer meets with several bankers before the closing and can only find a mortgage rate of 3.8%. One day before the day set for the closing, Buyer e-mails Seller and writes, “I’ve not been able to find a mortgage at 3.75%, but I still want to buy the property. I’m planning to close tomorrow.” What is the legal effect of this text?
- Blanket Liquidators places an advertisement online, using a social-media company’s advertising distribution system. The advertisement includes a photograph of a wool blanket with the following message: “Get this cashmere wool-blend blanket for $19.99, only at your local Blanket Liquidators! Regularly priced at $299!” Tanya sees the advertisement and races to her local Blanket Liquidators to buy the blanket. When she tells the manager, “I want one of those blankets I saw on the internet,” the manager responds that they have sold out of their entire inventory of cashmere wool-blend blankets. Tanya is enraged at his response. Choose the best answer.
- Bankston loans Mark $40,000. Mark promises to repay Bankston in 12 months. After 12 months, Mark still has not repaid Bankston. Bankston tells Mark’s wife, Mandy, that Bankston will “hold off on suing your husband to get my money back for as long as I feel like it” if Mandy will agree in writing to guarantee Mark’s obligation to repay the debt. Mandy signs a note promising to guarantee Mark’s debt. What is Mandy’s best defense to an action by Bankston to enforce the guarantee?
- Tony hires Pascal to paint the interior of his office building. He does not tell Pascal why he wants the building painted. Tony wants to paint the building so it will look its best when he shows it to a prospective buyer. Pascal agrees to complete the work by November 1. Pascal does not complete the work on time. As a result, Tony shows the building to a prospective buyer who decides not to buy the building because the building does not look its best.
- Drywall, Inc. contracts to install drywall on GC, LLC’s residential construction
Their contract provides that “GC, LLC shall pay Drywall, Inc. only after approval of all work by the Architect.” Drywall, Inc. completes the work. However, the Architect thinks the work does not comply with the contract specifications and refuses to approve the work. Choose the best answer:
Other sets
- Linda runs a manufacturing company. The company makes custom computer systems for users who play video games. She agrees to sell one of the “scratch and dent” computers from the company’s warehouse to Doug, who is 16 years old, if Doug promises to pay for the computer by picking up trash in the company parking lot every day after school for the entire school year. Doug picks up the computer, then shows up after school and picks up trash for the first week of school. After that, he never shows up again and refuses to return the computer. Does the company have a breach of contract claim against Doug?
- Seller contracts to manufacture widgets at a specified price for Buyer, based upon technical specifications provided by Buyer. The technical specifications called for the use of “Class A Widget Adhesive.” Seller is concerned that it may not be able to acquire Class A Widget Adhesive, but Buyer assures Seller that Buyer can always find Class A Widget Adhesive at a specified price. Thus, the parties include in their contract the following provision: “Seller’s obligation to produce the widgets is expressly conditional upon Buyer providing 20 kg of Widget Adhesive to Seller at $100 per kg by no later than July 1.” Seller has promised to deliver the widgets on or before December 1. On April 1, Seller contacts Buyer and states that Buyer will not need to procure the Class A Widget Adhesive, as Seller has found an alternative source at a lower price.
- Which of the following contracts is most likely to be enforced by way of the remedy of specific performance?
- Seller offers to sell his home to Buyer for $180,000. Buyer inspects the home and mails a written acceptance letter indicating that “I agree to buy the home for $180,000, including all of the furniture and window treatments in the house when I inspected it today.” Choose the best answer:
- Jenna contracts with Reardon for Reardon to pave Jenna’s employee parking lot at a cost of $18,000. Reardon delegates his duty to perform the work to Mandy. Mandy paves the lots, but some defects in her work result in damages to Jenna in the amount of $5,000.
- Manager interviews Candidate. At the end of the interview, Manager offers to hire Candidate on a one-year contract with a salary of $38,000, plus health insurance. Candidate says that he’d have to think about the offer, but that “I’d agree to start tomorrow if the offer was for $50,000.” Manager responds by saying, “I’ll have to ask my boss about that and get back to you.” That night, Manager texts Candidate the message: “Found someone else for the position, but thanks for interviewing and best of luck.” Choose the best answer:
- General Contractor enters into a contract with a subcontractor for the provision of sufficient concrete on the job site necessary to complete all concrete work according to the contract specifications. The contract provides that “any failure to comply with the strict terms of this contract subjects the subcontractor to a $10,000 penalty which the subcontractor agrees shall be paid on demand.”
- Seller contracts to sell Buyer 1,000 widgets for $1,000. Buyer pays $1,000 for the widgets at the time of contract. At the time of the contract, the fair market value of widgets is $1.50 per widget. At the time of delivery the fair market value of widgets is $2.00 per widget. However, the 1,000 widgets tendered by Seller are painted with the wrong color of paint, a defect which reduces their market value to $1.25 per widget. Buyer accepts the defective widgets.
- Able contracts with Baker for Able to paint Baker’s two-story house. The price is $2,500, payable on completion of the house. Prior to the contract, Able met with Baker, looked at the house, and discussed the kind of paint that Able would use and the timing of the completion of the work. Able starts painting the house on Monday
Monday afternoon, after Able has painted only one side of the house, Able tells Baker that he will require an additional $500 to finish the job. Baker promises to pay Able $3,000 upon completion of the house. Choose the best answer: - TriCo contracts with ByCo to sell 100 car engines at a cost of $2,000 each. TriCo agrees to deliver the engines in three installments of 100 engines each on April 1, May 1, and June 1. On April 1, TriCo delivers 98 engines together with a note stating that the remaining two engines would be delivered the following day and that all future deliveries would be complete and timely. Does ByCo have to accept the delivery of 98 engines?
- Gerard loans Larry $40,000. Larry promises to repay Gerard in 12 months. After 12 months, Larry still has not repaid Gerard. Gerard tells Larry’s wife, Linda, that Gerard will “hold off on suing your husband to get my money back for as long as I feel like it” if Linda will agree in writing to guarantee Larry’s obligation to repay the debt. Linda signs a note promising to guarantee Larry’s debt. What is Linda’s best defense to an action by Gerard to enforce the guarantee?
- Shawl-Mart places an advertisement online, using a social-media company’s advertising distribution system. The advertisement includes a photograph of a wool shawl with the following message: “Get this cashmere wool shawl, for $10, only at your local Shawl-Mart! Regularly priced at $130!” Gert sees the advertisement and races to her local Shawl-Mart to buy the shawl. When she tells the manager, “I want one of those shawls I saw on the internet,” the manager responds that they have sold out of their entire inventory of cashmere wool shawls. Gert is enraged. Choose the best answer.
- Employer hires Employee to serve as the bodyguard to the Employer’s president. The term of the contract is one year. The annual salary is $75,000. Before the employment begins, Employee quits. Employer pays a recruiter $3,250 to find a replacement employee. The recruiter finds a replacement employee who is willing to serve as a bodyguard for an annual salary of $80,000. Choose the best answer:
- Alex hires Betty to make a prototype of a new lawnmower Alex hopes to manufacture and sell. Betty agrees to have the prototype ready by June 1. One May 25, Betty calls to tell Alex that she’s almost finished but that it will likely be June 4th or 5th before the prototype is completed. Alex tells her, for the first time, that he was planning to take the prototype to the Lawn Expo in New York City on June 3, and that if the prototype is not ready by then, he will have wasted the $5,000 exhibition fee he paid. Choose the best answer:
- ITDone is a software development company. They contract to develop software that will manage BigBox’s inventory. The contract provides that the software will be developed in three phases, and that BigBox’s payment will be due once the third phase is delivered and tested. ITDone completes the first two phases, but not the third. When BigBox refuses to pay ITDone, ITDone sues BigBox for breach of contract. Assume the contract is governed by common law and not the UCC Choose the best answer:
- TriCo contracts with ByCo to sell 300 car engines at a cost of $2,000 each. TriCo agrees to deliver the engines in one installment on April 1. On March 20, TriCo delivers 98 engines together with a note stating that the remaining two engines would be delivered the following day. The next day TriCo delivers two engines. Is ByCo entitled to reject the car engines? Choose the best answer:
- Buyer and Seller enter into a contract for the sale of goods. The agreement is memorialized in a completely integrated written agreement. A dispute between Buyer and Seller breaks out, and at trial Buyer attempts to introduce parol evidence. Which parol evidence is more likely to be admitted over Seller’s parol evidence rule objection? Assume the Uniform Commercial Code applies.
- AlphaCo contracts to sell to BetaCo three custom storefront signs, complete with brackets, and to install all three signs on the front of BetaCo’s three retail locations. Is the transaction covered by the Uniform Commercial Code?
- Seller contracts with Buyer to sell 450 widgets at a total cost of 9,000. Seller agrees to deliver the widgets on or before April 1. On April 1, Seller delivers 440 widgets with a note indicating that the last ten widgets necessary to complete the order are “on backorder” and will be delivered within the next 10 to 30 days. Does Buyer have to accept the delivery?
- Linda runs a manufacturing company. She meets with Roy, who has worked for the company for 40 years. She verbally promises Roy that if he retires, the company will pay him a monthly retirement benefit until he dies. Roy retires. Linda argues that the alleged verbal agreement is unenforceable because the Statue of Frauds requires that it be in writing. Choose the best answer:
- Boss desires to hire Laborer to spread landscaping mulch around an office building. Boss tells Laborer that he will pay him $140 when the work is completed. Assume that Boss makes it clear that performance is the only manner of acceptance that is invited. After three hours of work, Laborer has spread about half of the mulch around the office, as directed. Boss tells Laborer that he will not pay him anything and to leave the job site.
- If an offeror makes an offer for a unilateral contract, when will the contract be formed?
- Burn! Energy Drink Company (BEDC) markets a caffeinated energy drink to college students. It advertises specially marked six-pack containers of Burn! in retailers near college campuses, and includes packaging that states the following: “Burn! Energy Drink works! If you buy this six-pack, and drink it as instructed, you can study all night long without needing to sleep! We guarantee it! If it doesn’t work, just tell us and we’ll send you another six-back of Burn!” Bob buys the six-pack, and drinks all of it the night before his Microeconomics final exam. He falls asleep at his desk at 3:00 a.m. and doesn’t wake up until after his exam is over. Choose the answer that best describes any contract between BEDC and Bob.
- Seller contracts to sell Buyer 700 widgets for $700. At the time of the contract, the fair market value for widgets is $1.50 per widget. Buyer pays Seller $700 at the time of contract. Seller fails to tender any of the widgets on
Buyer looks to all of his suppliers but cannot find anyone with the widgets he needs. This is problematic, because Buyer has another contract to resell the 700 widgets to WidgetCash, Buyer’s biggest and most important customer. The only other manufacturer with widgets in stock is selling them for $3 per widget. Left with no other choice, Buyer buys 700 widgets for $3 per widget so that he will not default on his contract with WidgetCash. Choose the best answer: - Seller and Buyer agree that Seller will sell as much widget glue as Buyer requires to make widgets during the next 12 months at a price of $2 per gallon. For the first three months of the contract, Buyer requires 100 gallons of glue every month. In the fourth month, Buyer orders 1,200 gallons. Seller only provides 100 gallons to Buyer, and Buyer sues for breach of contract. What evidence is least important to Buyer’s claim?
- DeltaLLC and GammaCo have been doing business together for several years. DeltaLLC provides accounting services for GammaCo’s construction business. Last winter, when DeltaLLC had some storm damage at its offices, GammaCo sent some workers over to repair the damage at no cost to DeltaLLC. The following summer, GammaCo found itself being audited by the IRS. DeltaLLC agreed to advise GammaCo during the audit at no cost, as a way of thanking GammaCo for its help the previous winter. Is the agreement between DeltaLLC and GammaCo a bargained-for exchange?
- Manager interviews Candidate. At the end of the interview, Manager offers to hire Candidate on a one-year contract with a salary of $38,000, plus health insurance. Candidate asks if he can “sleep on it” and let Manager know his answer the next day. Manager agrees. That night, Manager texts Candidate the message: “Found someone else for the position, but thanks for interviewing and best of luck.” Choose the best answer:
- A contracts to sell 100 flashlights to B. The contract price is $600. B wrongfully refuses the flashlights when A delivers them and B refuses to pay for them. A resells the flashlights for $500. Choose the best answer:
- Manager interviews Candidate. At the end of the interview, Manager tells the Candidate that he will be in touch. Manager mails a letter agreement that offers to hire Candidate on a one-year contract with a salary of $38,000, plus health insurance. The letter indicates that the agreement must be accepted by January 5. On January 3, Candidate countersigns the letter agreement and mails it back to Manager. On January 4, Manager calls Candidate and tells him that he revokes the offer. On January 6, Manager receives the countersigned letter from Candidate. Choose the best answer.
- Buyer and Seller enter into a contract for the sale of goods. The agreement is memorialized in a completely integrated written agreement. A dispute between Buyer and Seller breaks out, and at trial, Buyer attempts to introduce parol evidence. Which parol evidence is more likely to be admitted over Seller’s parol evidence rule objection? Assume the CISG applies.
- Lawrence contracts to sell 10,000 widgets to Baxter for $40 per widget. The widgets are to be delivered in 30 days. At the time of contract, it costs Lawrence $30 to make each widget. The day after the contract, one of the essential components for making the widgets, widget glue, has a sharp increase in price. The price increase means that it will cost Lawrence $70 to make each widget it sells. Accordingly, instead of making $100,000 on the contract, Lawrence will lose $300,000 if he has to perform the contract. Choose the best answer:
- Donnie owns a parcel of land called Greenacre. He verbally agrees to sell Greenacre to Deena for $100,000. The parcel has a fair market value of $80,000. He transfers the property to Deena, but Deena never pays for it. Assume that the contract is unenforceable because it fails to satisfy a requirement of the Statute of Frauds. What is Donnie’s best argument?
- Yans put his house up for sale. He has had trouble over the years with the basement leaking. The basement only leaks when there is heavy rain, so most of the time there is no water in the basement; however, there is some staining on the walls of the basement from leaks that have occurred from time to time. Before a potential buyer, Boris, looks at the house, Yans stacks cardboard boxes up along the wall where the water stains are, so that Boris will not see any evidence that the basement leaks. Boris subsequently contracts to buy the house from Yans. Boris later learns that the basement leaks, and wants to void his contract with Yans. What is his best argument?
- PaintCo contracts to paint one large warehouse on TruckCo’s distribution compound. The contract provides that the contract price will be $40,000. PaintCo paints one of the four sides of the warehouse, but refuses to complete the job. As a result, TruckCo has to hire someone else to paint the other three sides of the warehouse for $30,000. The fair market value of the work performed by PaintCo is $10,000. Choose the best answer:
- PaintCo contracts to paint each of three identical warehouses on TruckCo’s distribution compound. The contract provides that the contract price will be $25,000 per warehouse. PaintCo paints the first two warehouses, but not the third. As a result, TruckCo has to hire someone else to paint the third warehouse for $25,000. Choose the best answer:
- Drywall, Inc. contracts to install drywall on GC, LLC’s residential construction project. Their contract provides that “GC, LLC shall pay Drywall, Inc. in full for the work performed within 30 days of GC’s payment from the Owner of the project.” Drywall, Inc. completes the work. However, GC, LLC’s contract with Owner is terminated, and Owner never pays GC, LLC for the drywall work provided. Choose the best answer:
- Snowplow, Inc. provides snowplowing services to Boxes, LLC, which owns a large retail store with a substantial customer parking lot. The contract between Snowplow and Boxes provides that Snowplow will provide “prompt snowplowing services at the Boxes, LLC parking lot, as frequently as required, at Snowplow, Inc.’s sole discretion.” Snowplow does not always have the driveway plowed as early and as frequently as Boxes, LLC would like. How frequently does Snowplow, Inc. have to provide service? Fully explain your answer, including any rule(s) that supports it.
- Tammy manages a medical practice. She contracts with Medical Waste Solutions (MWS) to remove all medical waste, a task that necessitates compliance with legal requirements for disposal at the end of each business
Tammy wants to ensure that the medical waste generated by the facility is removed between 5:00 and 6:00 every day, and that if for any reason it is not, that MWS will have an employee on call who will pick up the waste before Tammy leaves each day at 6:30. The salesperson for MWS tells Tammy that they have someone on call 24 hours a day, seven days a week, and that they will pick up any medical waste within an hour of receiving a call. Feeling confident that MWS will do a good job, Tammy signs a one-year contract. However, the contract between the medical practice and MWS includes a provision that only requires that MWS pick up any uncollected waste “within 48 hours of receiving written or telephonic notice from the customer.” The contract is completely integrated. Tammy wants to know whether the term in the writing or the term assured to her by the salesperson controls. Fully explain your answer, including any rule(s) that supports it. - RonKO sells boxing gloves. It contracts to sell 100 pairs of leather boxing gloves to Golden Fist Gym, LLC (GFG) at a price of $30 per pair. RonKO packs the gloves to be delivered and hires a delivery company at a cost of $225 to transport the gloves to GFG’s offices. Prior to the date of delivery, GFG cancels its order. RonKO tells the delivery company, which agrees to return the gloves to RonKO but charges an additional $225 fee for doing so. RonKO resells the gloves to another customer at the market price of $25 per pair. What are RonKO’s damages? Fully explain your answer, including any rule(s) that supports it.
- Kinway Transportation (Kinway) is a private courier company, specializing in transporting manufacturing and medical equipment across the United States on an expedited basis. One of Kinway’s drivers falls asleep at the wheel and collides with a semi-truck owned by BoxCar Services (BoxCar). The collision causes substantial damages to the BoxCar truck, trailer, and the cargo contained in the trailer. Counsel for BoxCar threatens Kinway that if a settlement is not reached within 48 hours, BoxCar “is going to sue Kinway for every penny it owes, and the publicity that a lawsuit will bring will not help Kinway’s reputation for safe driving.” Kinway enters into a settlement agreement with BoxCar. Weeks later, Kinway seeks to avoid performing the contract, claiming that it entered into the contract under duress. Do you think Kinway’s argument will be successful? Fully explain your answer, including any rule or rules that support it.