ARIS HW2QUESTION 11.Before opening her new sports merchandise store, Kay places anad in the…

ARIS HW2QUESTION 11.Before opening her new sports merchandise store, Kay places anad in the news¬paper showing cross-training shoes at certain prices.Within hours of opening for busi¬ness, the store is sold out of some ofthe shoes. In this situationKay has made an offer to the people reading the ad.Kay has made a contract with the people reading the ad.Kay has made an invitation seeking offers.Any customer who demands goods advertised and tenders the moneyis entitled to them.1.QUESTION 2Trevor and Chris form a contract by a series of e-mails culminatingin the contract and their “electronic signatures” in bold. The contractotherwise is fine, and they print out “hard copies” for their records; butan issue arises as to whether this “e-contract” is a valid one. Thiscontract is:Invalid since the common law requires all contracts to be in paper,signed on the paper, and under seal.Generally valid in the United States by means of the federal E-Sign law.Valid but only if two witnesses are willing to testify that they saw eachparty sign electronically.Invalid under the Statute of Frauds due to the potential for deceit.QUESTION 31.Rowan, a basketball star, signs a two year contract to playbasketball for the Bullets for $200,000 per game. Right before a “biggame,” Rowan goes to the owner of the team and says that he will notplay at all unless the owner pays him and additional $10,000 per game.The owner, being desperate, reluctantly agrees and promises to payRowan more. Now that the season is over, Rowan demands his additionalcompensation of $10,000 per game; but the owner of the Bullets refusesto pay. Rowan sues the owner for breach of contract. The most likelyresult of the lawsuit is that:a Rowan wins. contract.since this is a valid modification of a pre-existing earlierb Owner wins since a contract can never. the parties agree to the modification.be modified whatsoever, even ifc.Rowan wins since this is a valid modification of a contract pursuant tothe Uniform Commercial Code, which needs no new consideration tobe enforceable.d Owner wins since Rowan was under a prior duty to play basketball, so. the owner’s new promise to pay more money for the same act was notdetriment on Rowan’s part, and consequently was not supported byconsideration on Rowan’s part, and thus the owner’s promise is notenforceable.1.QUESTION 4At one point in time, the company Gator-Aide commanded 83% ofthe sports beverage market. This market share was primarily due to thefact that a University of Florida professor had invented the product whichbecame very popular and thus the company became very successful.However, there were two other competitors in the market – Coke andPepsi, which approximately shared the rests of the market. Pursuant toSection 2 of the Sherman Act, the best conclusion regarding anti-trustliability for Gator-Aide would be:The company would be deemed guilty of monopolization of commercesince it possessed a very high share of the market.The company would not be deemed guilty of monopolization ofcommerce.The company would not be liable since the courts would say that themarket was too narrowly defined and should include other sports drinks,such as water, soda, and beer (but only light beer).The company committed a horizontal restraint of trade by “freezing out”its main competitors.QUESTION 51.Sue contracts to deliver Tom’s products to his customers for$1,500, payable in ad¬vance. Tom pays the money, but Sue fails toperform. Tom canrescind the contract only.obtain restitution of the $1,500 but notrescind the contractrescind the contract and obtain restitution ofthe $1,500.recover nothing nor rescind the contract.QUESTION 61.Tomas is a business student with a very good business idea foracademia. Tomas, with the help of his school’s entrepreneurship center,then develops a detailed business plan for an academic online courseregistration system. The faculty at the entrepreneurship center thinksthat Tomas’ concept and plan have economic potential and thus arequite marketable. Tomas places on his business plan a Confidentialitystatement, and also when he “shops” his plan to potential investors andschool administrators he asks them to sign a Non-Disclosure Agreement.Based on the aforementioned facts, which statement is likely TRUE?a Tomas.has protected his business plan by means of federal patent law.b Tomas. law.has protected his business plan by means of federal copyrightTomas has failed to protect his business plan by trade secret law sincea plan, concept, or idea is too “soft” information, as opposed to a”hard” formula or device, for legal trade secret protection.d Tomas has protected his business plan by means of state trade secret. law.c.QUESTION 71.Best Office Company promises to pay Carl $1,000 to repair theroof on Best’s building. Carl fixes the roof. The act of fixing the roofimposes a moral obligation on Best to pay Carl.imposes no obligation on Best unless it is personallysatisfied with the job.is not sufficient consideration because it is not goods ormoney.is the consideration that creates Best’s obligation to payCarl.QUESTION 81.Beta, Inc., includes a shrink-¬wrap agreement with its products. Acourt would likely enforce this agreement if a buyer used the productafter having had an opportunity to read theagreement.before having had an opportunity to readthe agreement.only after actually reading the agreement.none of the above.1.QUESTION 9Lee, a salesperson for Midsize Corporation, causes a car accidentwhile on business. Lee and Midsize are liable toall those who were injured.only those who were uninsured.only those whose injuries could have beenreasonably foreseen.only those with whom Lee was doing business.QUESTION 101.Jerry applies for a lower-level, non-management job at U.S. Shoes,Inc. He is told before he is hired that he must sign an agreementdeclaring that he has not, and will not, become a union member whileworking for U.S. Shoes, Inc. Such an agreement is:a Fair labor practice. employerb Legal.by thein a right-to-work statec.Legal if Jerry is an employeeat-will.d Illegal..QUESTION 111.Ron contracts to repair Stu’s building for $30,000. Payment is to bemade “on the satisfaction of Tina, Stu’s architect.” Stu tells Tina not toapprove the repairs. Ron sues Stu for $30,000. Ron likely willwin, because Stu is not acting reasonably and in goodfaith.win, because Tina is Stu’s architect.lose, because Ron is not acting reasonably, honestly,and in good faith.lose, because Tina has not expressed satisfaction withthe work.1.QUESTION 12Carol is a salesperson who works for Delta Products, Inc. Indetermining whether Carol is Delta’s employee or an independentcontractor, the most important factor isthe degree of control that Delta exercises overCarol.the distinction between Delta’s business andCarol’s occupation.the length of the working relationship betweenDelta and Carol.the method of payment.QUESTION 131.The Institute of Progressive Studies, a well-known San Franciscoresearch foundation, promises Teofilo, a college professor, that it will payhim a grant of $55,000 in order that Teofilo pursue his studies of thelives of “third-world revolutionaries.” Teofilo is not required to produceany specific work product in exchange for this grant. He makes it clear tothe Institute that he intends to obtain leave without pay from theuniversity where he teaches and to move 1000 miles to San Francisco tocomplete the work. Accordingly, Teofilo secures the leave and makes themove. However, soon thereafter he is informed by the Institute thatregrettably the grant will have to be revoked due to the Institute’sunexpected loss of some government funding in the latest governmentbudget “cut-backs.” Teofilo then sues the Institute to recover his variouslosses. What is the best answer regarding the resolution of this lawsuit?A.Teofilo prevails due to the promissory estoppel exception to theconsideration requirement of contract law.B.Teofilo prevails since the Civil Rights Act protects against nationalorigin discrimination.C.The Institute prevails since there was never an explicit written contractwith Teofilo.D.The Institute prevails due to the Impossibility of Performance doctrineof contract law.QUESTION 141.The District of Columbia sues several big gun manufacturerscontending that the guns they sell in large quantities legally in Virginiaoften illegally find their way into the District where they are used tocommit crimes and to injure residents of the district as well as thecriminals. The District wants to recover its public hospital expenses fromthe gun manufacturers and accordingly sues them for the tort ofnegligence. The likely result of this lawsuit will be:The District will win since guns are very dangerous products for whichthe gun manufacturers are absolutely liable for.The District will win if the residents who are shot by the guns do nothave health insurance.The District will lose if it cannot establish a factual and proximatecausation connection between the original sale of the guns and theharm to the District residents.The District will lose since Virginia is a state and the District is not astate.QUESTION 151.Dan, a doctor, renders aid to Eve, who is injured. Dan can recoverthe cost from Eveeven if Eve was not aware of Dan’s help underquasi-contract.only if Eve was aware of Dan’s help.only if Eve was not aware of Dan’s help.under no circumstances.QUESTION 161.Jay is seeking to avoid performing a promise to pay Karen $150.Jay is claiming a lack of consideration on Karen’s part. Jay will win if hecan show thatbefore Jay’s promise, Karen had already performed therequested act.Karen’s only claim of consideration was the relinquishment ofa legal right.Karen’s asserted consideration is only worth $50.the consideration to be performed by Karen will be performedby a third party.1.QUESTION 17Fran buys a franchise from Global Services, Inc. In theiragreement, Global may specifyrequirements for the business form of theorganization only.standards of operation only.requirements for the form of business andstandards of operation.none of the above.QUESTION 181.Jim and Gail contract for the sale of 500 computers. Theagreement states, “The obligations of the parties are conditional on Gailobtaining financing from First Bank by August 1.” This clause likely isa conditionprecedent.a conditionsubsequent.a concurrentcondition.not a condition.QUESTION 191.General Contractor Corporation (GCC) begins constructing abuilding for High-rise Apartments, Inc. In mid-project, GCC asks for$150,000 more, claiming an increase in ordinary business expenses.High-rise agrees. This agreement generally isenforceable as an accord andsatisfaction.enforceable because of the unforeseendifficulties.unenforceable as an illusory promise.unenforceable due to the preexistingduty rule.QUESTION 201.John, Jr., a college freshman, 17 years old, and thus a minor, liesabout his age, stipulating in writing that he is 19, and buys a big, flatscreen TV from Good Buy. The TV is badly damaged when John, Jr. andhis friends are tossing around a football in his dorm room. He returns theTV to Good Buy and demands his money back, saying he is just 17 yearsold. The likely legal result of this situation would be:Since he is a minor he can disaffirm the contract and get all his moneyback and is protected due to his youth and immaturity.Since he is a minor he can disaffirm the contract and get some moneyback but because he lied, he is liable for the damage and depreciationto the TV.He cannot disaffirm even though he is a minor since he misrepresentedhis age and the misrepresentation is in writing..He cannot disaffirm the contract since a big, flat-screen TV wouldprobably be regarded as a “necessity” for a college student today.