Section III. MULTIPLE CHOICE. (Max. 30 Points)

This section contains 10 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 three (3) points.

A. Which of the following constitutes a valid, legally binding offer?

1. Bill tells his adult softball team that he will pay $50 to the first player to show up at his house on Saturday morning and cut his lawn.

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

3. 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.

4. All of the above are considered to be valid, legally binding offers.

5. A and C are valid, legally binding offers.

B. _______. In which of the following scenarios is an agreement properly voidable within a reasonable amount of time by the aggrieved party?

1. An owner of a company learns that he has bipolar disorder at the time he signs a loan agreement and upon taking his newly prescribed medication a week after the diagnosis returns the loan monies and seeks to disaffirm the agreement.

2. A corporate President of Ajax Co. signs a deal with a supplier over dinner to sell goods at a 50% wholesale discount to a new retailer XYZ Corporation after having had four martinis. The retailers CEO had six martinis that night and upon receipt of the goods protests that he thought the discount was 60%. The next day, the CEO of Ajax sends a letter disaffirming the contract due to his being under the influence and demands the return of the goods shipped to XYZ.

3. Jack Swindler defrauds Susie Homemaker of $1,500 promising plumbing services that he never intended to complete or render in a competent fashion. Jack performs a small portion of the work and demands full payment of the agreed upon amount from Suzie and threatens to sue if not paid immediately. Suzie pays, Jack never shows up to complete the work and Suzie alleges that Jack defrauded her.

4. The Contracts are voidable in all of the above circumstances.