Preparation
A law student, who was involved in Law Review, moot court, and clinic, was taking 18 credits.
She was afraid she was never going to get everything done on time, and she thought some extra
caffeine would help. The law student bought a coffee pot from Coffee Warehouse, Inc. She paid
top dollar for the coffee maker, but she figured it was worth it because the coffee pot had a
special "refresh" function that would keep brewed coffee fresh over a 48-hour period. The law
student used the coffee maker for several weeks and noticed a marked improvement in her
energy level. One morning, as the law student was reaching for the coffee pot, the pot suddenly
exploded. The law student's hand was severely cut by flying glass from the shattered pot. An
investigation revealed that the glass used by Coffee Warehouse to make the coffee pot was
defective, which is why it exploded. If the law student sues Coffee Warehouse on a strict lia -
ANS✔✔ The coffee pot was defective, and the defect was the cause of the law student's
injuries.
An employee successfully negotiated a lucrative contract for her employer. As a result, her
employer orally promised her a $10,000 bonus payable at the end of the year because of the
employee's "good work." At the end of the year, the employer informed the employee that the
company's profits were not as large as he expected, so the promised bonus would not be paid.
Which of the following is the legal effect of the employer's promise to pay the bonus to the
employee?
(A) It is enforceable, because the employee conferred a material benefit on the employer by
negotiating the lucrative contract.
(B) It is enforceable, because the employer was morally obligated to pay the bonus.
(C) It is unenforceable, because it was not supported by legally sufficient consideration.
(D) It is unenforceable, because it was not in writing. - ANS✔✔ C. It is unenforceable, because it
was not supported by legally sufficient consideration.
A man approached his cousin who was seven months pregnant, and said, "If you name your
daughter after my mother, I will pay you $100 per month for five years." The cousin agreed and
named her child after the man's mother. Afterwards, the man reneged on his promise and told
,his cousin that he decided not to pay her the money. Subsequently, the cousin sued the man for
breach of contract.
For whom should the court enter judgment?
A) The cousin, because there was a bargained-for exchange.
(B) The cousin, because naming the child was a condition of a gift made in consideration of
carrying out a moral obligation.
(C) The man, because naming the child was a mere gift promise unsupported by consideration.
(D) The man, because the cousin did not experience any recognizable detriment in the naming
of her child. - ANS✔✔ A. The cousin because there was a bargain for exchange
The owner of a discount luggage store always looks forward to graduation day because the
parents of graduating seniors often buy luggage as presents for children who are going away to
college. One June, the owner decides to run an advertisement in the local newspaper. The ad
copy read, "Valedictorian Sale--June 15! To each high school valedictorian graduating from
either of the town's two high schools this year, the luggage store offers two deluxe suitcases for
the price of one. Purchase one and receive a second free! Limit two suitcases per valedictorian."
The owner believes that because there are two high schools in town, there will be only two
valedictorians to qualify to accept his offer. However, he is unaware that students at the two
high schools may take a number of Advanced Placement courses and that any student receiving
an A in these classes may obtain a cumulative GPA greater than 4.0. In addition, the hig -
ANS✔✔ B. Yes, because she accepted the offer when she tendered the purchase price of one
suitcase
On Monday, a man told a gardener, "I am having a party on Sunday and I want my house to look
good. If you will promise to mow my lawn by Saturday, I will pay you $50." On Friday, the
gardener arrived at the man's home just as the man was leaving for work and began to mow the
man's lawn. The man said nothing to the gardener, but drove off as he saw the gardener
unloading his lawn mower. When the man arrived home from work that evening, he noticed
that only half of his lawn had been mowed. He then found a note from the gardener slipped
into his mailbox which read, "Sorry, but I ran out of gas to power the lawn mower and did not
have time to buy more gas to finish the job. I'm taking the weekend off, but I will be back
Monday morning to finish the work."
If the man brings suit against the gardener for breach of contract, who is likely to prevail?
,(A) The gardener, because he never accepted the offer made by the man. - ANS✔✔ (C) The
man, because the gardener's part performance necessarily implied an acceptance and a
promise that he would render complete performance.
On March 1, a seller mailed a letter to a buyer offering to sell a specified quantity of shirts at list
price. The buyer received the seller's offer on March 2. The next day the buyer mailed the seller
a letter of rejection. The buyer then changed his mind and decided to accept the seller's offer.
On March 5, the buyer mailed a letter of acceptance to the seller. On March 4, the seller sent
the buyer a letter revoking his original March 1 offer. On March 6, the seller received the buyer's
acceptance. On March 7, the buyer received the seller's letter of revocation. The following day,
the seller received the buyer's rejection. The seller is now refusing to sell the shirts to the buyer,
and the buyer has sued for breach of contract.
Judgment should be for whom?
(A) The buyer, because he mailed his acceptance before receiving notice of the seller's
revocation.
(B) The buyer, because the seller received his acceptance - ANS✔✔ (B) The buyer, because the
seller received his acceptance before receiving notice of the buyer's rejection.
A man offered to sell his barbecue to his neighbor for $100. After receiving the man's offer, the
neighbor responded, "Let me think it over." The man then said, "If you say so." The next day, the
man sold the barbecue to his brother for $100. Thereafter, the neighbor decided to accept the
man's offer, but learned from a reliable source that the barbecue had been sold to the brother.
If the neighbor sues the man for breach of contract, judgment should be for whom?
(A) The man, because the offer to the neighbor terminated when the neighbor learned of the
sale to the brother.
(B) The man, because there was no consideration to keep the offer open for an extended
period of time.
(C) The neighbor, because the offer became irrevocable for a reasonable time when the man
allowed the neighbor to "think it over."
(D) The neighbor, because he is a merchant - ANS✔✔ (A) The man, because the offer to the
neighbor terminated when the neighbor learned of the sale to the brother.
, A homeowner said to a roofer, "My roof leaks. I think the old tiles are cracked. If you will replace
them with all new tiles, I will pay you $5,000." The roofer replied, "Sure, if I can clear my busy
schedule." The homeowner then remarked, "That's all right, but let me know soon." Three days
later, the roofer drove his pickup truck to the homeowner's home and unloaded the materials
and equipment needed to perform the roofing job. When the homeowner looked out his
window and saw what was transpiring, he immediately ran outside and exclaimed, "Stop! The
deal's off. I decided to repair the roof myself."
In an action by the roofer against the homeowner for breach of contract, which of the following
would provide the roofer with his best theory of recovery?
(A) A bilateral contract was formed when the roofer purchased the materials and equipment
needed to do the job.
(B) A bilateral contract was formed when the roofer s - ANS✔✔ D) The homeowner made an
offer that proposed a unilateral contract, and the roofer manifested an intent to accept the offer
when he began performance by unloading the materials and equipment at the homeowner's
house.
A college student was involved in a car crash while driving her father's car. Her negligent driving
caused her to collide with a vehicle operated by a teacher. Both the teacher and the college
student were seriously injured in the crash. The college student's father believed that since the
college student had been driving his car, he himself was liable for the accident. The father went
to visit the teacher in the hospital, where he was being treated for injuries suffered in the
accident. The father told the teacher that he would personally reimburse the teacher for any
losses he suffered as a result of the accident. The father also told the teacher's doctor to take
good care of the teacher, and that the father would pay the teacher's bill. A week later, the
college student died as a result of her injuries. She left no assets.
If the teacher files suit against the father to recover the amount of his lost wages as a re -
ANS✔✔ (D) Lack of consideration
A lawyer lived in an exquisite home located in a fashionable neighborhood. He had known a
gardener for many years. One day the gardener was walking down the street when he ran into
the lawyer. The gardener said to the lawyer, "I will landscape your garden for $200." The lawyer
replied, "That seems like a good deal." As they were talking, the lawyer's brother-in-law walked
by. The three individuals then started conversing about the stock market. Nothing further was
said about the landscaping of the lawyer's garden. The next day, the lawyer telephoned the