1. You see an Ad online that states: "Today only buy the new iPhone for $8.99." Assume the new iPhone actually retails for $1,000 and the advertiser intended the Ad to state: "$899," but through an error inserted the decimal point. You go to the store and attempt to buy the phone. Select the best legal analysis.
1) The store's Advertisement was an offer and so long as you accept before the offer is revoked you can buy the phone at the $8.99 price.
2) the store's Advertisement was a solicitation to make an offer and not an offer. Therefore the store can refuse to sell you the phone for $8.99.
3) The store's Advertisement falls under a special rule for offer revocation. Advertisements are offers but unlike normal offers can be revoked at any time prior to acceptance.
4) The store's Advertisement is not an offer because the wording of the ad is not sufficient to state an intent to want to sell.
2. Greg and Holly are parties to a contract. They subsequently agree that Irma should take the place of Greg and assume all of his rights and duties under the contract. This is
1) an accord and satisfaction.
2) a modification.
3) a novation.
4) an assignment.
3. Zeke and Bob, as part of their contract, agree that if Bob breaches the contract, he will pay $10,000 to Zeke as damages. The actual amount of damages that would result in the event of a breach would be difficult to determine, and $10,000 is a fairly reasonable amount. A court would likely rule that the agreed upon amount is
1) a penalty, and would be unenforceable.
2) a penalty, and would be enforceable.
3) liquidated damages, and would be enforceable.
4) liquidated damages, and would be unenforceable.
4. Joey, a 12-year-old boy, agrees to subscribe to cable TV after receiving a telephone solicitation. Joey receives the service but never pays the bills. Eventually, the cable company sues Joey. What will happen?
1) Joey will owe for the services already received but will be allowed out of his future obligations.
2) 2 Joey will have to abide by the contract because everyone knows that cable TV is a necessity.
3) Joey will not have to pay for the services because he is a minor
4) Joey will owe for the service because he breached his contract by not paying for the service.
5. Development Associates (DA) agrees to buy a printing machine from Eagle for $5,000 with delivery in one month. Prior to the date for delivery and before DA paid for the machine, Eagle tells DA that it will not be able to deliver the printing machine and will breach its contract with DA. DA contacts Hawk, a competitor of Eagle, and is able to buy the same machine on the same timeline for $4,500. DA then sues Eagle for breach of contract. What will DA recover?
1) $5,000
2) $4,500
3) Nothing (nominal damages).
4) $500.
6. You are a poor college student and the backpack you use to carry your books, notes and other supplies to class every day is starting to break apart. The backpack is ripping because you used it to carry some sharp tools without covering them. You have known for some time that you need a new backpack, but you are hoping it will hold together until you graduate. On your way up the stairs in Centennial Hall, your backpack breaks spilling pens, papers and books down the stairs. A student behind you slips on a book that just fell out of your backpack. The student sues you. Select the best legal analysis.
1) You are likely liable for the student's injuries because you breached of duty of care to properly maintain your backpack. A reasonable person would have fixed or replaced the backpack.
2) You are likely liable for the students injury because the backpack was dangerous beyond the expectations of an ordinary consumer and you could have fxed it for an economically viable amount of money
3) You are not likely liable because the injured student assumed the risk of walking up the stairs and could have taken the elevator instead.
4) You are not liable because you did not break a duty of care. The manufacturer of the backpack is liable under product liability law.
7. Phil placed a large mattress on the top of his car and did not tie it down. He was only traveling about one mile to his new apartment and he thought he and a friend could hang onto it for that long out of the window. Halfway to his new apartment, a gust of wind hit the mattress and it flew out of Phil's and his friend's control. The mattress hit a truck in the windshield causing the truck to swerve violently. Some packages in the truck fell onto the road and surrounding areas as a result. Jim, a pedestrian, picked up one of the packages and found that it contained cocaine. He sold some of the cocaine to a child who died as a result. The parents of the child sue Phil on a claim of negligence. What is Phil's strongest defense?
1) Phil did not behave in a negligent manner, the burst of wind was an act of god
2) Phil did not have a duty of care to the child
3) No proximate cause (foreseeability)
4) No per se negligence
8. Elmo advertises a reward for the return of his lost dog. Floyd, who does not know of the reward, finds and returns the dog. Floyd cannot recover the reward because he
1) did not know of the reward when he found and returned the dog.
2) does not need the money.
3) returned the dog.
4) did not confer a benefit on Elmo by returning the dog.