Please use the paragraphs below to answer questions 34-36.

Steve and Paul meet at a conference. Steve owns Supplier Inc., a seller of sensors. Paul is president of Purchaser Inc. Paul says to Steve My current supplier charges $600 for 15 sensors. Steve replies, I will charge 75% of what your supplier charges if you pay promptly. Steve and Paul shake hands and Paul says, That's great! Thanks very much. The next day, Supplier sends 15 sensors to Purchaser together with a $450 invoice on which Suppliers bookkeeper hand-writes Invoice reflects First Order discount of 25%. This payment must be delivered within 15 days of receipt to receive this deal Thanks, Steve.

Purchaser receives the sensors and distributes them to its operating units. Sixteen days after receipt, Purchasers accounting clerk mails a $450 check to Supplier. On the check subject line, Paul writes Thank you for the sensors. Three weeks later, Steve e-mails Paul: I received your $450 check. We sent you 15 sensors with a price of $450 if you delivered payment within 15 days. I need the $150 balance within five days or send me back all the sensors. Paul responds, No way, we have a contract.

34.

As Purchaser, what are the two most convincing arguments that support your view that a contract for 15 sensors for $450 HAS been formed?

Be sure to select the TWO most convincing answers to receive full credit. Do NOT select more than two answers.

Group of answer choices

1. Purchaser already distributed the sensors to its operating units.

2. Pauls response That's great! Thanks very much! is an acceptance.

3. Supplier sent the products before Purchaser sent a written acceptance, so the sensors are considered a gift and Purchaser may keep the sensors and is not obligated to pay.

4. There is an offer and acceptance at a price of $450. Paul paid promptly. The payment term added by Suppliers bookkeeper after Paul accepted the offer cannot modify the contract unless Paul agrees.

5. Because the note by Supplier's bookkeeper was handwritten, it could not constitute a valid payment term from Supplier.

6. Purchasers operating units already used some of the sensors Purchaser distributed received.

7. Suppliers offer to reduce the price for the 15 days for prompt payment is the best deal that Purchaser would find in this market and therefore was the best choice for Purchaser. Evidence of this could be found in trade journals and advertisements or obtained through subpoenas issued to 3rd parties under Federal Rules of Civil Procedure 30 and 45.

35.

As Supplier, what is the most convincing argument that supports your view that there IS NOT a binding contract and that the sensors should be returned?

Group of answer choices

1. Supplier made an oral offer to sell the sensors at a price below what Purchaser usually paid but the offer wasnt in writing. Purchaser could not accept an oral offer.

2. Steves offer to sell the sensors was ambiguous until his bookkeeper sent the written invoice with the meaning of prompt payment. That was the offer. Purchaser paid late, so did not accept that offer.

3. Purchaser and Supplier have never worked together in the past.

36.

If there is a contract, is the price $450? Why or why not? Pick the best answer.

Group of answer choices

1. Yes, the price is $450 because that was the price that was orally agreed by Steve and Paul. The prompt payment term was ambiguous but Paul paid promptly by commercial standards.

2. No, the price is $600 because Purchaser usually paid $600 for sensors.

3. No, the price is $600 because Purchaser accepted the sensors and used them.

4. No, if the Purchase returns 5 unused sensors, the price would be only two-thirds of $600.