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1.
Integrated Circuit Technology, Inc. (ICT) faced challenges in finding qualified engineers for its expanding production facilities due to the high cost of training equipment for engineering students.
Most colleges could only afford minimal amounts of this hardware, which restricted program sizes and limited the number of engineering graduates. ICT's CEO, Cruz, wrote to the heads of several universities, stating: “If your institution commits to accepting every junior-year undergraduate who wishes to pursue an engineering degree, ICT will provide all the necessary electronic hardware to train these students. Our engineers have informed me that one set of equipment (i.e., one of each machine used by ICT in production) is sufficient for five students. Therefore, for every five additional engineering majors you accept beyond your current enrollment, ICT will supply one set of equipment.”
Jackson, chancellor of Seaport College of Engineering (SCE), also received this letter from Cruz. The letter arrived during SCE's annual budget review, where Jackson had to decide how much of the college’s limited funds to allocate for engineering equipment. Upon receiving Cruz’s letter, Jackson informed the budget committee that no funds would be required for engineering equipment in that year’s budget. A few days later, while preparing to send an acceptance letter to ICT, Jackson received a second letter from Cruz stating that the ICT equipment program was canceled due to an influx of qualified foreign engineers in the United States. Since the budget was already approved, and all available funds had been allocated elsewhere, Jackson sent the acceptance letter regardless, and it was received by Cruz at ICT. If SCE files a breach of contract suit against ICT, what would be the likely outcome?
2.
In July of last summer, George, a grape grower, contracted with Walter's Winery to deliver 500 tons of premium-quality pinot chardonnay grapes grown on his ranch, Grapeacre, in Grape County.
The price was set at $1,000 per ton, with delivery scheduled on or before September 15. In August of the same year, George entered into a similar contract with Vinnie’s Vintner Co. to sell 300 tons of premium-quality pinot chardonnay grapes. George completed his harvest by September 10 and had 800 tons of premium-quality grapes. However, on September 11, an unexpected rainstorm ruined 400 tons. George promptly notified Walter and Vinnie on that day that he would only be able to deliver 250 tons to Walter and 150 tons to Vinnie. On September 14, Vinnie purchased an additional 150 tons of premium-quality pinot chardonnay grapes from Godfrey, one of several other suppliers of premium-quality pinot chardonnay grapes. These grapes, along with the 150 tons from George, provided Vinnie with the 300 tons he required. On September 15, what legal position does Walter's Winery hold concerning George's failure to deliver the 500 tons of grapes as required by his contract?
3.
Christine and her friend Zelda were heading off to college and had a large number of personal belongings to transport.
Christine's father offered to drive them in his van, but when they loaded it up, they realized there was only room for two passengers. Christine then asked her boyfriend, Harry, to drive her in his car while Christine’s father and Zelda rode in the van. About halfway to the college, while both the van and Harry's car were traveling on the freeway with the van in front, the van suddenly swerved out of control and veered off the highway, ultimately ending up on its side in the center divider. When Harry stopped his car and Christine ran to the van, she discovered, to her horror, that her father had died. Zelda appeared to be injured, though not severely. Christine, knowing her father had previously experienced heart trouble, assumed he had suffered a heart attack while driving. However, a later investigation revealed that the accident was caused solely by a defect in the van's steering mechanism. Filled with guilt, Christine told Zelda, "I’m so sorry about this. I’ll make good on any losses you suffer because of this accident." Later, when Christine learned Zelda planned to seek treatment from Dr. Winston, she wrote a letter to the doctor stating that she would be responsible for all of Zelda's medical expenses. Dr. Winston received the letter the following day. Assume for this question only that, several months after the accident and within the applicable statute of limitations, Zelda discovered she had sustained a spinal injury that would prevent her from ever playing basketball again. Zelda had been a scholarship basketball athlete at college and was expected to be a high draft pick for the newly formed women’s professional basketball league upon graduation. Zelda then filed a lawsuit against Christine seeking several million dollars in damages. What would be Christine's best defense against Zelda's claim?
5.
Tortfeasor negligently injured Victim in an auto accident. While Victim was recovering in the hospital, Tortfeasor's liability insurer, Insurer, settled with Victim for 5000 victim signed a released and recieved a written memorandum from insurer, promising o pay victim 5,000 by check within 30 days.
Upon leaving the hospital two days later, Victim was presented with a bill from the hospital for 4,000 to settle his victim issued a negotiable promissory note to the hospital for$ 4000 , payable within 30 days , and assigned the settlement memorandum from from insurer to the hospital as collateral. The hospital promptly transferred both the promissory note and the settlement memorandum to holder, , who acquired the note as a holder in due course.
Subsequently, Victim falsely informed Insurer that he had lost the original settlement memorandum and requested a replacement. Insurer issued an identical memorandum, which Victim then assigned to ABC Furniture to secure a 5,000 credit purchase . ABC immediately notified insurer of it's claim to the assignment. Lter, it was discovered that the hospital had overcharged victim by $1,000 and that Tortfeasor was an irresponsible minor. Considering Tortfeasor’s age and irresponsibility at the time Insurer issued his liability policy, can Holder and ABC Furniture enforce their claims on the respective assignments?
6.
Mater, a wealthy widow, wanted to make a substantial and potentially lasting gift to her beloved adult stepson, Prodigal. She opened a passbook savings account with the Vault Savings and Loan Association by making an initial deposit of $10,000. For the purpose of this question, assume the following facts:
The account was issued solely in Prodigal's name, but Mater retained possession of the passbook, and Prodigal was unaware of the account's existence at that time. Later, Mater became dissatisfied with Prodigal's behavior and decided to transfer the account entirely to her beloved adult daughter, Distaff. Under the terms allowed by Vault Savings and Loan, Mater arranged this change through an agreement with Vault, leaving the passbook in Vault's possession. Soon after, Prodigal learned about the original account in his name and the subsequent transfer to Distaff. If Prodigal now sues Vault Savings and Loan for $10,000 plus accrued interest, will his lawsuit be successful?
7.
In early January 2004, representatives from MacDougall Corporation, makers of the famous MacDougall Dog hot dog and related convenience foods sold through thousands of owned and franchised MacDougall’s restaurants, met with representatives from Time Management, Inc. (TM), a firm specializing in time-and-motion studies for labor-intensive industries.
After extensive negotiations, it was orally agreed that TM would redesign the food production area of MacDougall’s restaurants, including modifying cooking equipment if necessary, so that savings in labor costs would result from a reduction in the restaurant's cooking staff using existing MacDougall’s food products. MacDougall's lawyers subsequently drafted a written agreement and sent it to TM. TM’s lawyers modified the draft and returned it to MacDougall. This modified writing, signed by both parties, stated in its entirety: “Provided that at least 2,000 work-hours per restaurant are eliminated, MacDougall Corporation will pay TM within 90 days of installation of new food production systems at MacDougall’s restaurants in Richmond a first installment of $1 million.upon installation of new food production systems nationwide , Macdougall corporation will pay TM a second and final installment of $1.5 million. Nationwide installation must be completed by January 15, 2005. Any amendments to this agreement must be in writing, signed by both parties.” TM immediately began work on restructuring MacDougall’s food processing methods. On September 5, 2004, a radical change in the layout of MacDougall’s kitchen area and new personnel assignments were designed, and TM demanded payment of the first installment $1 million. MacDougall Corporation refused , but negotiations between the parties resulted in an oral agreement that MacDougall would pay of $750,000 immediately, followed by the $1.5 million second installment as originally agreed after nationwide installation of the new system. The restructured food production system was installed and operational in all Richmond MacDougall's restaurants by october 1, 2004. Subsequent audits revealed that the new system enabled Macdougall Corporation to eliminate 1,500 work hours per restaurant , the corporation $90,000 in labor costs for all Richmond restaurants. The new system required MacDougall’s to increase the length of the famous MacDougall Dog by three centimeters and make the "Mother MacDougall Hot Apple Fritters" in a rectangular shape instead of the traditional round form. Nationwide installation of the new system in all MacDougall’s restaurants was completed on January 30, 2005. The 1,500 work-hour savings per restaurant was projected to save MacDougall Corporation $1.8 million per year. TM sent a certified letter to the CEO of MacDougall Corporation requesting certification that the new food production system was in place and operating as promised, and demanding the $1.5 million second installment. The CEO refused to certify and refused to make any payment, stating in his reply letter that the system had not been installed by January 15, 2005, and that it did not use the existing MacDougall’s food products as promised by TM. Assume, for the purpose of this question only, that an express condition of MacDougall Corporation’s duty to pay the contract price failed and that TM was in breach for failing to complete the nationwide installation of the food production system by January 15, 2005. If TM brings an action to recover the reasonable value of its services, will it likely succeed?
8.
Producer hired Fiddler to play in an orchestra that was to leave on a 10-week tour of the United States. Fiddler, a musician, turned down another job opportunity in order to accept Producer's job offer. One week after the start of the tour, Fiddler was hospitalized with a bad back and was unable to perform. Producer hired Player to take Fiddler's part in the orchestra. Four days later, Fiddler recovered, but Producer refused to allow Fiddler to rejoin the orchestra or to complete the tour. Fiddler then sued Producer for breach of contract. Which of the following is Fiddler's best legal theory? Discuss.
9.
Aunt Sheila told her niece, Sinead, “I'd like you to go to Tara Imports and select the $300 lace shawl of your choice, and I'll buy it for you if you wear it to the ethnic festival. I want you to look as sweet and delicate as an Irish rose.” Sinead, a modern 22-year-old, despised shawls because she thought they were "the sorts of things old ladies wear." Additionally, her taste in music leaned towards heavy metal rock and roll rather than the traditional Celtic bagpipe and fiddle music she would be subjected to at the ethnic festival. However, Sinead really loved Aunt Sheila and did not want to hurt her feelings. Sinead went to Tara Imports and purchased a $300 lace shawl imported from Ireland. She accompanied Aunt Sheila to the ethnic festival, wearing the shawl, and Sheila was very pleased. Assume for purposes of this question that Sheila died shortly after the festival and her estate refuses to reimburse Sinead for her purchase. Sinead filed suit. Her attorney advanced four legal theories on which he asserts that Sinead can collect the $300 from Sheila's estate: Which of the following represents the correct combination of legal theories that support Sinead's case against Sheila's estate?
1. Promissory estoppel
2. Conditional gift
3. Bargain and exchange
4. Account stated
10.
Civil service rules, which have been in effect in the city of Charlesville for many years, provide that any member of the police department must serve a one-year probationary period before he or she will be considered a permanent employee. In fact, this rule was enacted before Charlesville had a police academy, and now a prospective police officer spends six months in the academy before being hired by the city. Ruby, a graduate of the police academy, was with the city police department for eight months when she was terminated. There were no city ordinances or state laws that required Ruby be given a reason for her termination or a hearing, and she was given neither. Which of the following facts, if shown, gives the city of Charlesville the strongest argument for refusing to give Ruby a statement of reasons for her termination and for denying her the opportunity to contest the termination?
11.
Jenny, a general contractor, advertised in a trade publication that she planned to bid on the construction of a new building to be located in the Civic Mall. The advertisement welcomed bids from subcontractors to perform various functions, such as plumbing, electrical work, and masonry. The lowest plumbing bid was from Plunger, who bid $10,000. Jenny used Plunger’s bid in preparing her general bid. At 2 p.m. on June 22, Jenny submitted her general bid. At 3 p.m., Plunger called her and said, "I'm sorry, Jenny, but I made a mistake on that bid I submitted to you; I can't possibly do that plumbing work for a dime less than $12,000." Jenny told him, "Look, you've done a lot of good work for me in the past and we all make mistakes. I'll just forget you ever made that $10,000 bid." Plunger effusively thanked Jenny. Jenny then hired Flusher to do the plumbing work for $12,000. She later sued Plunger for damages. Jenny will:
12.
Zeller contracted in writing to deliver to Baker 100 bushels of wheat on August 1 at $3.50 per bushel. Because his suppliers had not delivered enough wheat to him by that time, Zeller, on August 1, had only 95 bushels of wheat with which to fulfill his contract with Baker. If Zeller tenders 95 bushels of wheat to Baker on August 1, and Baker refuses to accept or pay for any of the wheat, which of the following best states the legal relationship between Zeller and Baker?
13.
Wendy, a wealthy widow, owned a prime piece of land in an exurban area populated by affluent residents. Wendy had a daughter, Dorothea, who was Wendy's only child and the "apple of her eye." Dorothea was 23 years old and engaged to be married to Pemberton d'Argent, a rich, polo-playing investment banker. Wendy wanted to give Dorothea a very special wedding gift. Wendy therefore entered into a written agreement with contractor Brikk, whereby Brikk would build a house on the property for $300,000.
The house was to be built to very exacting specifications that described in great detail the materials to be used, the exact shape of each room, etc. These specifications were included in the written agreement between Wendy and Brikk. The agreement provided that Wendy would pay Brikk $300,000 upon completion of the building according to the specifications, and that Brikk would turn the keys to the home over to Dorothea.
After the agreement was signed by both Wendy and Brikk, Dorothea and Pemberton looked at some fine homes in the same general area. They had two opportunities to purchase suitable homes at good prices but decided to turn them down. Since then, property values in the area have increased by approximately 30%. Just as Brikk was about to begin construction of the house, he discovered that an underground river bisected Wendy's property, leaving insufficient subterranean support to construct the house as planned. Assume, for purposes of this question only, that upon discovering the underground river, Brikk refused to try to build the house for $300,000.
If Wendy files suit demanding specific performance or damages from Brikk, which of the following additional facts, if proven, would most favor Wendy's case?
14.
On February 1, Ridewell Rubber Co. telephoned Smithson Tire Shop and offered to sell to Smithson 500 series 4 Ridewell tires for $20,000. Smithson accepted immediately. On February 3, Smithson sent Ridewell a letter confirming the deal and stating that Smithson was counting on a 20% discount due to the size of the purchase. On February 20, Ridewell telephoned Smithson and stated that it could not afford to sell the 500 series 4 tires for less than $30,000. If Smithson brings suit against Ridewell and Ridewell asserts the Statute of Frauds as a defense, will Smithson prevail?
15.
Integrated Circuit Technology, Inc. ("ICT") was having difficulty finding qualified engineers to work in its expanding production facilities because the hardware needed to train top-flight engineering students was so expensive that most colleges could not afford to purchase more than a minimal amount of such equipment.
This limitation restricted program sizes and reduced the number of applicable engineering degree candidates. ICT's chief executive officer, Cruz, wrote the following letter to the heads of several universities: "If you commit your institution to accepting into your engineering degree program every junior-year undergraduate who wishes to pursue that major, ICT will provide your institution with all the necessary electronic hardware to instruct such students. Our engineers have informed me that one set of equipment (i.e., one of each machine used by ICT in its production process) is sufficient for use by five students; therefore, for every five engineering degree majors you accept in excess of your current engineering degree population, ICT will provide one such set of equipment."
Marchand, chancellor of Middle States University ("MSU"), received a letter from Cruz and immediately mailed a reply letter accepting ICT's generous offer. A few weeks later, Marchand received another letter from Cruz explaining that the response to his original letter had been so overwhelming that schools such as MSU, which had no history of supplying graduates to ICT as employees, would have to be omitted from ICT's equipment program. If MSU brings an action for breach of contract against ICT, what would be the likely result?
16.
Martha needed a new pair of shoes. She went to her local Skysheim shop and told the salesperson that she worked in the city’s downtown area and had to walk eight blocks to get from her house to her commuter train and then six blocks from her train to her office. During the workday, she had to climb up and down stairs several times. She wanted shoes that were suitable for walking on concrete, had gripping power for stairs, and were comfortable. The salesperson went into his stockroom and brought out four different styles of Skysheim's ‘Clouds,’ reputedly the most comfortable shoe on the market, designed for the type of use that Martha had in mind. Martha tried on each of the four pairs but did not like the way any of them looked. While walking around the store, however, Martha saw a shoe she did like: ‘Hobblers,’ Skysheim’s high-fashion shoe. She told the salesperson to bring her a pair to try. He did so and explained to Martha that Hobblers were completely made of the finest leather and would probably last for years. Martha tried on the shoes and told the salesperson that she would take them. Assume for this question only that Martha bought the shoes and wore them twice. She decided that they were too uncomfortable for her daily commute. She took the shoes back to the Skysheim shop and demanded her money back. Skysheim refused. If Martha sues to get her money back, under which theory would she most likely prevail?
I. Breach of the implied warranty of fitness for a particular purpose.
II. Breach of the implied warranty of merchantability.
III. Breach of express warranty.
17.
Hair of the Dog, a small pet store, entered into a written contract with Pet Products, Inc. whereby Pet Products agreed to supply Hair of the Dog with whatever quantity of pet food it might order, at a mutually agreed price, for two years, with an option to renew. Also, the contract required that Hair of the Dog buy its pet food from Pet Products only. For the first six months of the contract, Hair of the Dog ordered from Pet Products 10 cases of pet food per month. In the seventh month, the owner of Hair of the Dog sold the shop, inventory, and accounts receivable to Amalgamated Pet Shops, a chain operation. As part of the sale, Hair of the Dog assigned to Amalgamated the contract with Pet Products. Amalgamated promptly notified Pet Products of the sale and assignment. That same month, Amalgamated, looking to stock the pet food in stores throughout its chain, sent Pet Products an order for 5,000 cases of pet food on the terms and conditions of the agreement with Hair of the Dog, which had been assigned to them. Pet Products did not have the means to fill such a large order and refused to deliver 5,000 cases. If Amalgamated brings suit, the court should hold that:
19.
Patrick was exasperated with the smog in Big City and sent Andrew the following letter on January 1: "Andrew, my family and I are moving out of here and going to live on a tropical island. Do you want to buy the stuff in our house? The price is $25,000." Andrew received the letter on January 2 and on January 3 sent Patrick a letter accepting the offer. The next day, Andrew changed his mind. He called Patrick and told him to forget the deal. Later that day, Patrick received the letter that Andrew had sent on January 3. Is there a contract between Patrick and Andrew?
20.
Lehman was a limited partner in Bountiful Homes, a partnership organized by Lehman's nephew, Sanders, who was the sole general partner. The partnership purchased land, subdivided it, and then constructed and sold single-family residences on the resulting lots.
During the construction of the only housing development undertaken by the partnership, Lehman discovered that Sanders had taken most of the money invested by the limited partners and all of the money paid to the partnership by purchasers of the homes in the development, and lost it gambling in Las Vegas. When confronted by Lehman, Sanders admitted everything, then went to his apartment and committed suicide. When news of Sanders's suicide became public, Lehman was besieged by creditors of the partnership and people who had purchased homes. The jurisdiction statutorily limited the liability of limited partners for the debts of the partnership or acts of the general partner to the extent of their investment in the partnership. However, being unaware of this, Lehman believed he was personally liable to all who had claims against Bountiful Homes. He told Wolcott, a single mother whose house was partly completed, that he would make good any losses caused by his nephew's actions. Lehman then orally agreed with Smith, a contractor, to pay for the completion of Wolcott's house. Lehman also told Brubaker, an unsecured creditor of Bountiful Homes, that if Brubaker would hold off filing an involuntary bankruptcy petition against the partnership, Lehman would pay the partnership's debt. In a bankruptcy action filed by the secured creditors of the partnership, the assets of the partnership, which were very small, were consumed by the costs of the proceedings, and no creditor received any payment. Sanders himself left no assets and was, in fact, heavily indebted personally due to his compulsive gambling. If Smith did not complete construction of Wolcott's house and Wolcott brings an action against him for breach of contract, which of the following would be an effective defense for Smith?
I. Smith's contract was with Lehman.
II. Wolcott furnished no consideration.
III. Any agreement between Wolcott and Smith was discharged by novation because of the agreement between Smith and Lehman.
21.
Via a circular, WidgeCo, a manufacturer of widgets, sent an offer to Distrucorp, a major wholesaler. WidgeCo offered a standard lot (quantity well-known in the widget trade) of widgets for $8,000. This was a good price, and the president of Distrucorp personally mailed back to WidgeCo Distrucorp's standard printed acceptance form. However, the president wrote in large letters in his own hand on the form, “Our liability on this contract is limited to $200.” Two days later, the WidgeCo sales manager received the communication from Distrucorp. A week later, WidgeCo had sent no additional communication to Distrucorp. Assuming no additional facts, what is the relationship between the parties?
