Business Law 2550 Final Examination 10 10 A M Wednesday December 10th 2014 1 When an issue is presented to a court for resolution the court will first look for guidance to 2 The doctrine of stare decisis applies to Supreme Court decision applies to all courts 3 A federal district court always has the power to resolve an automobile accident lawsuit if the amount in questions is at least 75 000 the plaintiff and defendant are from different states 4 That part of the law that creates defines and regulates rights and responsibilities duties is known as Substantive Law 5 6 If the plaintiff is from Wisconsin and the defendant is from Texas and the auto accident involving them occurred in the Disney World parking lot in Orlando Florida jurisdiction would be proper Long Arm Statues If a plaintiff is from Michigan a defendant is from Ohio and the incident involving them occurred in Colorado a U S District Court sitting in California and exercising diversity of citizenship jurisdiction would most likely apply to the substantive law of the state of Ohio 7 The Federal Environmental Protection Agency EPA sues Daimler Chrysler for violation of the Environmental Protection Act If this case were to be heard in the Federal Courts the EPA would have to allege damages of Punitive Damages 8 John waves down a taxi in Manhattan The driver delivers him to his requested destination John pays the driver appropriate fare plus tip This contract may be characterized as being Unilateral 9 Although Tom has never actually seen Kim s house he agrees to paint it for 1 500 By mistake Tom paints Pete s house Pete is aware of Tom s mistake but says nothing until Tom is finished at which time he refuses to pay Tom anything The contract relationship between Tom and Pete as a result of Tom s mistake might be characterized as Unjust Enrichment 10 In legal terms a promise is Contract 11 On April 1 Crouch wrote Pure a letter of inquiry about a silica processing plant which Pure owned but which had not been in use for many years In the letter Crouch asked whether Pure might be interested in selling the building and its contents and if so what the lowest price would be On April 4 Crouch received a letter of reply from Pure which stated We will sell this building and the equipment in and about the building for a total of 50 000 On April 14 Crouch addressed another letter to Pure which read I guess we will buy the building for the amount you quoted 50 000 I am sending you a personal check for this amount a Crouch s April 1 letter was an offer which was accepted by Pure when Crouch received the letter of April 4 b Pure s Reply of April 4 was an offer which terminated when Pure Received Crouch s letter of April 9 which was a counteroffer c Pure s reply of April 4 was an offer which was accepted by Crouch when Pure d Pure s reply of April 4 was an offer which was accepted by Crouch when received Crouch s letter of April 14 Crouch mailed the letter of April 14 12 Disner a real estate agent approached Braun the owner of a piece of valuable property and sought permission to find a buyer for Braun s land Braun made Disner his exclusive agent for such a sale and agreed that Disner could show the real estate to prospective buyers and solicit offers Disner succeeded in getting a written offer of 165 000 from Froling a prospective buyer Braun rejected this offer and told Disner to communicate to Froling a counteroffer of 185 000 Disner did so and a few days later Froling communicated to Disner his acceptance of the counteroffer a There is a contract Froling s acceptance was effective when communicated to Disner as that means of acceptance was impliedly authorized b There is no contract Braun s revocation of the counteroffer was effective when sent c There is no contract Braun s revocation of the counteroffer was effective when received by Froling since Braun himself had not yet received Froling s acceptance d There is a contract at the time Braun learned of Froling s offer 13 Joe offers Pete 50 if he will walk across a bridge on his hands When Pete is halfway across Joe cries out I revoke a Joe s revocation is invalid because Pete accepted the offer when he began performance b Joe s revocation is invalid because the offer became irrevocable for a reasonable amount of time when Pete substantially began performance Joe s revocation is effective when he makes the statement c d Joe s revocation is invalid because Joe has made a firm offer 14 On March 28 Lori sent for an application to an exclusive fitness club She received the application on March 3 filled it out giving her credit references and mailed it back April 1 The Club received Lori s application on April 3 On April 2 the Club announced in the newspaper that it was closing its membership at the current level They notified Lori personally on April 8 a The blank application constituted an offer which was accepted by Lori on April 1 when she mailed it back b The blank application did not constitute an offer and Club rejected Lori s offer which was made in the form of a completed application c The completed application constituted an offer which was legally accepted when the Club received Lori s application on April 3 d The blank application was an offer but it was effectively revoked on April 2 15 Diane offered to teach Debbie how to play the piano for 20 per one hour class Debbie was not very interested in music but she told her little sister Sylvia about the offer Sylvia immediately wrote Diane stating I accept your offer Diane received the note the next day a There is no contract Sylvia did not have the power of acceptance b There is no contract The terms of the offer were too indefinite c There is a contract Sylvia s acceptance was effective when mailed d There is a contract Sylvia s acceptance was effective when received 16 On March 31 Joe mailed an offer to rent his warehouse to Bill On April 3 Bill received the offer and immediately mailed his acceptance However on April 2 Joe sent a written revocation to Bill which Bill received April 4 Joe received Bill s acceptance April 5 Revocation would be issued because it was sent before the contract was accepted 17 Patrick offered to sell his house to Jarrod for 50 000 Jarrod was interested but did not wish to decide immediately so he asked Patrick if he would hold the offer open for thirty days in exchange for fifty dollars Patrick agreed Counteroffer 18 Hugh emailed an offer to Barbara requesting that the acceptance be made by