Legal exercises:
Answer each question, and explain the basis for your answer.
1. A retailer advertised a suit for special sale at $49. A customer telephoned and asked if the retailer had size 38 in blue. When the customer was given an affirmative answer, he asked the retailer to set the suit aside and stated that he would take it if the shade of blue was satisfactory. Did a valid contract exist?
2. A customer told the owner of a music store that she would buy a $145 guitar as soon as the music store received it from the wholesaler. When the guitar arrived a week later, the customer said that she had changed her mind and that the contract was invalid because it was not in writing. Did a valid contract exist without a written document according to the law in most states?
3. Michael Carr, 17 years old, agreed to purchase a $400 shotgun from a sporting goods store. Before making the purchase, he changed his mind. Can Michael avoid the contract?
4. A prospective entrepreneur, in talking with a realtor and the owner of a business site, agreed to purchase the property for a specified sum. No contract was signed, however. During the night, this person had a change of heart and decided to look for another site. Was this person bound by the promise of the previous day?
5. A furniture retailer purchased a shipment of furniture and signed a promissory note, which the furniture manufacturer sold to a finance company. The retailer found the furniture to be defective. Can the retailer decline to pay the note?
6. A customer expected to pay for a car with a payment she hoped to receive from her insurance company. The exact date of payment was indefinite. To accommodate her, the automobile dealer modified the promissory note by showing the due date as "on or about April 15" in order to allow a few extra days if the customer found that she needed them. Did this affect the negotiability of the note?
7. The proprietor of a small service firm located in leased quarters discovered an ideal location available for purchase. She gave the owner of the site a check for $500 pending the drawing up of a written agreement. Later that day, the owner received and accepted a higher offer for the same property. Can the proprietor force the property owner to convey the property to her?
8. A business owner told his agent to see if he could find a certain piece of equipment for $40,000 or less. The agent made a contract to purchase the equipment for $47,000. Who is responsible on the contract? Why? Are there possible circumstances that would change your answer?