case studies
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lawTRANSCRIPT
1. Jim phones Automobiles Dealer for a “Ford Escape” car. The Dealer sends him a fax
“”Ford Escape” with grade of 3.0 at the price of $10,000 including excise tax,
delivery at our location.” The fax is ( ).
a. An offer
b. A quotation
c. An advertisement letter
d. An acceptance
2. Brick Dealer offers to sell 1,000 bricks at the price of $250 to Greg. It seems to be
very cheap. So, Greg deposits $50 to Brick Dealer and says that “Keep $50. Leave me
two days for checking. If the bricks are fit for my purpose, I will buy it.” Within two
days of checking, if Thomas asks to buy such bricks, Brick Dealer can buy the brick
to Thomas.
a. True
b. False
3. Animal Feeding Manufacturer sends Dealer a fax “Sale of food for chicken, $1/kg,
delivery at your location.” Dealer replies by fax “Deal, provided that, discount 10%.”
Dealer’s reply is ( ).
a. An acceptance
b. A counter offer
c. An inquiry
d. A rejection
4. Tom finds a note put into his store. This note says “$30 per set of headphone, discount
10% for Dealer. Contact us by phone number: 123456890. Ring Factory”
a. Tom phones Ring for 5 sets. Ring says “Ok, however, no discount.” Tom sues Ring for
breach of contract. Who wins?
b. Tom phones Ring for 100 sets. Ring says “yes, when are you ready for taking delivery”
Tom answers “May 1, at my store.” Ring says “As you wish”. May 15, Tom calls Ring for
headphones. Ring says no contract forming. Tom sues Ring. Who wins?
5. Farmer telephones Wholesaler for a piece quote on Farmer’s corn crop. Wholesaler says
“$275 a ton”. Farmer says “It’s a deal.” Wholesaler immediately sends a written confirmation
stating “$275 per ton, upon delivery to my storage facility in Middleton.” Farmer refuses to
deliver and is sued for damages. Farmer claims no contract. Who wins?
6. Carter phones Janet “I bought you a ticket for a fantastic movie tonight. Wait me at the
front door of “X-Screen” cinema at 8 pm.” However, Carter does not come, she has to get
another ticket at the price of $30. Janet calls Carter “pay me $30 for the ticket.” Is Carter
liable to pay Janet $30 for this ticket?
7. On March 1, 2012, Distributor gets a benefit offer from Manufacturer. The offer says “Sale
of 10 tons of nutrition powder, $ 0.3/kg including freight and insurance. The offer will expire
on March 8, 2012.” On March 1, 2012, Distributor immediately transfers $1,000 to
Manufacturer’s bank account for deposit. May Manufacturer revoke the offer on March 6,
2012?