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I. MULTIPLE CHOICE (Max. 10 points)

This section contains five (5) multiple choice questions. Choose the response for each question that is most accurate and write its corresponding letter in the space provided. Each correct response in this section is worth two (2) points.

1. ________. Which of the following IS NOT considered to be a legally binding offer?

A. Bill tells his adult softball team that he will pay $50 to the first player to cut his lawn.

B. A store mails its customers a circular that advises of this weeks sale items.

C. Walmart advertises that the first 50 customers to arrive at its new store for its Grand Opening will be entitled to purchase one of only fifty 50 big screen TVs for $50.

D. None of the above are valid, legally binding offers.

2. ________. Which is true of the objective reasonable person standard?

A. The standard is used in negligence cases but not in contract disputes.

B. The standard is used in contract disputes but not in negligence cases.

C. The standard is used in both contract disputes and negligence cases.

D. The subjective intent of the parties governs in contract disputes and negligence cases.

3. _______. Which of the following common law rules requires an offer to be accepted on the same terms that it was proposed without any material deviation from the offers terms?

A. The Mailbox Rule

B. The Mirror Rule

C. The Mutuality of Obligation Rule

D. Promissory Estoppel

4. ________. Which of the following is true with regard toan express offer?

A. Express offers must be clear and definite as to all material terms.

B. The person making an offer may also fix the terms upon which an offer can be accepted.

C. An express offer may be rescinded at any time prior to a valid acceptance occurring.

D. All of the above are true.

5. ________. Which of the following is true of fraud and misrepresentation?

A. It prevents a true meeting of the minds and frustrates mutual and voluntary assent.

B. It is generally inconsistent with the duty of good-faith and fair dealing owed to all parties in privity of contract.

C. Neither A nor B is true.

D. Both A and B are true.

II. PRACTICAL SKILLS SECTION. (Max. 15 points)

This Section consists of three Questions that require the demonstration of basic case research and case reading skills. All work must be your own without assistance or input from anyone else. The maximum number of points for correct responses in this Section equals fifteen (15).

Using either WestLaw or Google Scholar, look up and read the following case entitled Allen v. Bloomingdales, Inc., 225 F. Supp. 3d 254 (D.N.J. 2016), involving a corporate personnel matter and allegations of unlawful, discriminatory conduct, and answer the following questions after reading this United States District Court case arising out of the District of New Jersey:

A. The Court in the Allen case must consider the validity of an employment agreement that contains an arbitration clause that was acknowledged by the employee at the time of hire and that allegedly formed part of heremployment contract. Prior to doing so, the Court set forth the elements required by New Jersey Law for a valid and enforceable Contract in Section A under the III. Discussion portion of its Opinion. Identify each of those elements cited by the Court in this regard. (Max. 5 Points).

B. Explain whether the Court found that Bloomingdales arbitration agreement with its employees was valid/enforceable and the reasons provided by the Court for its holding. (Max. 10 Points)

III. SHORT ANSWERS. (Max. 25 Points)

This section requires you to review the following case scenario and respond to each of the questions that follow it with your critical thought, knowledge of the proper legal principles and your ultimate analysis. Your correct responses to each of the questions in this Section are worth a maximum score of 25points.

Case Scenario:

Ivan is a 16 year-old owner of a landscaping and lawn service business in Greenville, NJ. Virgil is an adult customer of Ivans services and had been for six months. As the winter season approached, Ivan spoke to Virgil about drumming up business in Virgils neighborhood for his new snow removal division. Ivan told Virgil that he will take $10 off Virgils monthly landscaping bill for six months, starting in March of 2021, for each new customer that Virgil refers to Ivan for snow removal at Ivan's snow job rate of $100 per house. Virgil tells Ivan that he is willing to help him out and use his best efforts to do so. Ivan then handed Virgil thirty fliers that bore Ivan's name, phone number, some marketing graphics and a general description of the snow removal services offered at the $100 rate discussed. Virgil thanks Ivan for his anticipated assistance and the two men quickly conclude their business in a cordial manner.

Virgil gave Ivan's flyers to twenty of his friends and neighbors and spoke favorable to them about Ivan's new service. Fifteen of them agreed to use Ivan for their snow removal services. In the winter months, 12 of these friends/neighbors did use Ivan for snow removal on at least one occasion. Ivan performed the initial services requested by Virgil's friends and neighbors and gave them all his discounted, new customer rate of $75 for their initial snow removal job. Ivan also advised each new customer that his standard rate of $100 would apply to their second and subsequent snow removal jobs when requested. Only 3 of Virgil's referrals used Ivan a second time. Ivan charged these three referral customers 100 for their second and subsequent snow removal jobs. All three of these referral customers offered the flyer that Virgil gave them to their friends and families when Virgil told them that Ivan agreed to give him a $10 discount off the price for services for six months for each new customer he referred to Ivan. As a result of the referrals from these 3 friends of Virgil, Ivan received five new repeat customers.

In February 2021, Virgil caught up with Ivan and asked him to begin his regular landscaping services again in March. During the course of the conversation, Ivan thanked Virgil for his assistance and for the referral of three new customers to him, and gratefully advised Virgil that he would receive a credit on his monthly landscape bill in the amount of $30 for the next six months as promised. Virgil was surprised to hear that he would receive only $30 off his monthly landscaping services and protested to Ivan that he sent him more than ten referral customers for which Ivan provided snow removal services. Virgil told Ivan that he expected to receive a full $10 credit off of his Spring/Summer services for six months for every snow removal job that Ivan performed for all 12 of the referrals that Virgil provided and Ivan serviced. Ivan sarcastically said yeah, right! You just want free services from me and exclaimed "that was certainly not part of any deal that we had." Both men became angry at one another, exchanged hostile words and Virgil walked away frustrated and outraged that he would not get the full amount of the credits that he anticipated. Just before leaving, however, Virgil threatened to hire another landscaper and a lawyer to sue Ivan for breach of contract and to recover the amount of a monthly credit of at least $120 for the Spring/Summer months, as well as any difference in price should the new landscaper charge him in excess of $100 per month for such services.

A. Did Ivan and Virgil have a valid, enforceable Contract? In your answer, be sure to explain (a) whether there was a meeting of the minds between the two, (b) whether any such agreement formed a bilateral or unilateral contract and (c) what the material terms of any such Contract are. (Max. 15 points).

B. Did Ivan commit fraud in his dealings with Virgil? In your response, be sure to explain the required elements of fraud and to address each element prior to stating your conclusion. Remember that for fraud to exist, each element must be present and proven by a preponderance (a likelihood or 51%) of the evidence. (Max. 10points)

IV. OPTIONAL EXTRA CREDIT. (Max. 10 Points)

Randolph enrolled in a business law class and purchased a new business law textbook from the local bookstore. He dropped the class during the first week and sold the book to his friend Scott. Before making the sale, Randolph told Scott that he had purchased the book new and had owned it for one week. Unknown to either Randolph or Scott, the book was in fact a used one. Scott later discovered some underlining in the middle of the book and attempted to avoid the contract. Randolph refused to refund the purchase price, claiming that he had not intentionally deceived his friend. May Scott avoid the contract? Explain why or why not?