QUESTION 9

1. The mirror image rule is:

   	a.	A UCC rule restricting counteroffers only to the non-material terms of the offer
   	b.	A common law rule that requires that the terms of the offerees acceptance adhere substantially to the material terms of the offer.
   	c.	A common law rule that requires that the terms of the offerees acceptance adhere exactly to the terms of the offer.
   	d.	A UCC rule that requires that the terms of the offerees acceptance adhere exactly to the terms of the offer.

3 points

QUESTION 10

1. Match the Damages (Questions) to the correct Definition (Answers)

   - A. B. C. D. E.	Punitive Damages
   - A. B. C. D. E.	Consequential Damages
   - A. B. C. D. E.	Compensatory Damages
   - A. B. C. D. E.	Liquidated Damages
   - A. B. C. D. E.	Nominal Damages

   A.	Awarded when no actual damage or financial losses result from a breach of contract
   B.	These damages, principally available in tort law, are meant to deter breaches and not merely compensate the plaintiff for economic loss.
   C.	Paid for actual losses
   D.	Paid when the parties agree that in the event of a breach by one of them, the breacher will pay damages in a specified sum.
   E.	These damages are awarded when the breach has more far-ranging consequences than direct, compensatory damages.

5 points

QUESTION 11

1. Please provide answers to BOTH questions in the Answer space provided below.

   You enter into a contract with a friend to mow and water her lawn from April 1st until November 1st. Your friend pays you in advance for the entire contract at the rate of $500 per month. On July 1st, in response to a severe drought, your friends town has banned the mowing and watering of lawns until December 1st.

   a. What is the effect of the towns ban on the contract between you and your friend? Please explain your answer.

   b. On July 2^nd, your friend asks you for the money back for the months you can no longer mow and water her lawn, but you cant because you used it to purchase a new lawn mower. She sues you. Judgment for whom? Please explain.

   QUESTION 12

1. Please provide answers to BOTH questions in the Answer space provided below.

   On March 1^st, Alex, a merchant, wrote to Bill: I offer to sell you a 70-inch High Definition LED television for $600. This is a firm offer for 60 days from todays date. (Signed) Alex.

   On April 10^th, Bill received a letter from Alex: I hereby revoke my offer of March 1^st.

   On April 30^th, Bill wrote to Alex: I accept your offer of March 1^st.

   a. Is there a contract? If no, explain why not. If yes, explain why, and also when the contract became effective.

   b. Now assume that that Alexs offer stated that it was firm offer for five months, and that on May 29th, Bill received a letter from Alex, dated May 25^th: I hereby revoke my offer of March 1^st. On June 20^th, Bill mailed an acceptance. Is there a contract? Please explain your answer.

QUESTION 13

1. Jones owns a number of parcels of land that are slated for development. He promised (in writing) to sell one of them to Xavier for $50,000. Prior to Xaviers acceptance, Jones withdrew the offer.

   Is Jones revocation valid?

   	a.	Jones' revocation is invalid because Jones is a merchant, and thus the UCC's provision of firm offer applies
   	b.	Jones' revocation is valid, because Jones didnt give Xavier any assurance that the offer would not be withdrawn
   	c.	The revocation is invalid, because this is for the sale of land, and is thus subject to the Statute of Frauds.
   	d.	The revocation is valid because Xavier's end of the bargain does not constitute valid consideration.

3 points

QUESTION 14

1. Serena: Caleb I will pay you $5,000 if you promise to paint my home within three days

   Caleb: I accept

   A valid contract has been formed between Serena and Caleb.

   True

   False

3 points

QUESTION 15

1. Serena: Caleb I will pay you $5,000 if you paint my home within three days."

   Caleb: I accept.

   A valid contract has been formed between Serena and Caleb.

   True

   False

3 points

QUESTION 16

1. All of the following are required elements of a valid offer, except:

   	a.	Communication of the offer to the offeree
   	b.	The terms of the offer must be reasonably definite or certain
   	c.	The offer must state either the time period or method for acceptance
   	d.	The offer must not contain gratuitous promises

3 points

QUESTION 17

1. A, who owed $500 to B, advised B that the debt would not be paid unless B washed As car after the payment was made. B agreed. However, after A made the $500 payment, B refused to wash As car.

   Does B now owe a car wash or the reasonable price for a car wash? Please explain your answer.

QUESTION 18

1. Tiffany agrees to buy a Picasso painting from a seller for $1,000,000. The seller told Tiffany that the painting was authenticated and appraised by a reliable source and showed Tiffany the appraisal document. After payment is made and Tiffany goes home with the painting, it is determined that the work was not by Pablo Picasso, but by his son Paulo Picasso, and is worth only $10,000. Tiffany wants to rescind the contract and get her money back.

   What is Tiffany's best argument to try to get the contract rescinded?

4 points

QUESTION 19

1. Write the answers to BOTH questions in the space provided below.

   Mary owns a small cattle farm with a fenced-in pasture. Her neighbor, Stephen, notices that there is a break in Marys fence large enough for her cattle to push through. Without consulting with or telling Mary, Stephen repairs the break. Upon learning of the repair, Mary is grateful, and expresses her thanks to Stephen. However, Stephen is expecting to be paid for the repair.

   a. What is Marys best argument that she is not liable to Stephen for the repair?

   b. What is Stephens best argument that Mary is liable to Stephen?

QUESTION 20

1. Abby enters into a contract with Bill for Bill to renovate Abbys bathroom and kitchen for $50,000. However, once Bill started the work, he realizes that it will cost an additional $10,000 to complete the work that he promised. To show good faith, he tells Abby that he will split the added cost with her and asks her for an additional $5,000. Abby refuses to pay the additional $5,000 and Bill threatens to stop work on the renovation. But realizing that another contractor will probably charge much more, she agrees to the additional $5,000. After the renovations are done, Abby again refuses to pay the additional $5,000. Bill sues Abby.

   Who wins? Please explain.

QUESTION 21

1. Which of following is an essential element of Fraudulent Misrepresentation?

   	a.	Negligent Misrepresentation of a material fact
   	b.	Willful Misrepresentation of nonmaterial fact
   	c.	Misrepresentation of a material fact
   	d.	All of the above

QUESTION 22

1. Cookie Manufacturing Co. (Cookie) offered to sell to a local retail bakery (Bakery) 300 pounds of chocolate cookies at $1.50 per pound.

   Bakery replied in a signed writing as follows: We accept your offer for the 300 pounds of chocolate cookies at $1.50 per pound. Please make sure that you furnish sufficient cellophane wrapping".

   Which of the following statements is correct?

   	a.	A contract has been formed between the parties.
   	b.	A contract will be formed only if Cookie agrees to furnish the cellophane wrapping.
   	c.	No contract is formed because Bakery included a new contract term in its reply.
   	d.	No contract is formed because Bakerys reply was a counteroffer.

QUESTION 23

1. On June 15, Peter sent an email to Mason offering to sell his electric guitar for $1,000 and stated that the offer would expire on June 30. On June 20, Peter sold the guitar to Todd for $1,200. On June 22, Mason learned of the guitar sale to Todd. On June 23, Mason emailed to Peter an acceptance of the June 15 offer.

   Which of the following statements is correct?

   	a.	Masons acceptance formed a contract with Peter on June 23 because of the mailbox rule.
   	b.	The sale of the guitar to Todd is void.
   	c.	Masons acceptance was ineffective because Peters offer had been revoked.
   	d.	Peter was obligated to keep the offer open until June 30.

QUESTION 24

1. On May 1, a couple planning on getting married said to their friend, a person licensed and authorized to perform marriages: If you officiate at our wedding on June 1, we will pay you a fee of $1,000. The friend then spent considerable time preparing the marriage ceremony. Two days before the scheduled wedding the couple broke up and cancelled the wedding. The friend sent the couple a bill for $1,000, broken down as $500 for the preparation time and another $500 for loss of profit income. The couple refused to pay the bill.

   The friend sues the couple for breach of contract asking for $1,000 in damages. The likely outcome will be:

   	a.	Judgment for plaintiff for $1,000.
   	b.	Judgment for plaintiff for $500 for the preparation time.
   	c.	Judgment for plaintiff for $500 for the loss of profit income.
   	d.	Judgment for defendant.