Smith and Roberson’s Business Law
17th Edition
ISBN: 9781337094757
Author: Richard A. Mann, Barry S. Roberts
Publisher: Cengage Learning
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Chapter 12, Problem 2Q
Summary Introduction
To discuss: The result in the given three situations.
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Students have asked these similar questions
1. Roy asked Mark if he can use his phone for a week. If Roy agreed and allowed Mark to use his phone, what contract is created? Explain
2. Lance borrowed money from Renz. There was no stipulation to pay interest. Has Renz the right to demand interest? Explain
Ramona Smith spilled orange juice on her computer two days before her term paper was due.
Ramona desperately needed a new laptop, so she went online and found a laptop that fit her needs.
She emailed the seller, Effie Frost, expressing her desire to purchase the laptop. Effie ernailed
Ramona back and said that she (Effie) would sell Effie's laptop to Ramona for $300.
An hour later, Ramona and Effie signed the following agreement: "1, Effie Frost, agree to sell my
laptop computer to Ramona Smith for Four Hundred Dollars and zero cents. This is the entirety of
the agreement. This agreement supersedes any and all other agreements made by the seller and the
buyer."
Ramona now claims that she should only pay $300 for the laptop because during that initial email
exchange with Effie, Effie told Ramona that $300 was the price of the laptop, and she has the email
exchange as evidence of the price quote of $300.
What legal concept could be used to enforce the contract for $400?
O Condition…
On April 1, Orizon LLC sent Jim Stevens a letter via overnight delivery, offering to employ him to audit Orizon, LLC’s financial statements for the current year for $10,000. In the letter, Orizon, LLC stated that Jim had ten days to accept.
On April 5, Jim sent Orizon, LLC a fax that stated, "The price for the audit seems too low. Would you consider paying $12,000?" Orizon, LLC received the fax.
The next day, Serena Williams heard about the offer to Jim and said to Orizon, LLC, “I will accept that offer!” On learning of Serena’s statement, Jim immediately e-mailed Orizon, LLC agreeing to do the work for $10,000. Orizon, LLC received this e-mail on April 7.
1. Explain in detail why Orizon, LLC and Jim do, or do not, have a contract.
2. If you did not discuss it already, would applying the mailbox rule change your answer in #1?
3. Can Serena accept this offer?
Chapter 12 Solutions
Smith and Roberson’s Business Law
Ch. 12 - Prob. 1COCh. 12 - Prob. 2COCh. 12 - Prob. 3COCh. 12 - Prob. 4COCh. 12 - Prob. 5COCh. 12 - Prob. 1QCh. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - Prob. 4QCh. 12 - Prob. 5Q
Ch. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Prob. 9QCh. 12 - Prob. 10QCh. 12 - Prob. 11QCh. 12 - Prob. 12CPCh. 12 - Prob. 13CPCh. 12 - Prob. 14CPCh. 12 - Prob. 15CPCh. 12 - Prob. 16CPCh. 12 - Prob. 17CPCh. 12 - Prob. 18CPCh. 12 - Prob. 19CPCh. 12 - Prob. 20CPCh. 12 - Prob. 1TSCh. 12 - Prob. 2TSCh. 12 - Prob. 3TS
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- Matthew and Joe were roommates. When they were renting their apartment, each agreed to pay half of the cost of the rent and the cable and electric bills. Two months after moving in, Matthew borrowed Joe's car and was involved in an accident. Matthew promised to pay $2,200 in damages if Joe promised not to file a claim with his insurance company. Joe agreed. However, Matthew never paid him for the damages. He claimed that the agreement was not enforceable because there was no consideration. What is the outcome? Rubricarrow_forward13) When husband and wife live together, the law implies that the wife is authorized to use her husband's credit for necessaries suited to their style of living. Based on the above situation, the husband is an agent and the wife is a principal. a) True b) False 14) The person who gave assistance in agency relationship is known as agent. a) True b) False 15) The governing law for contract of sales is Sale of Goods Act 1957. a) True b) False 16) Goods means every kind of immovable property other than actionable claims and money. a) True b) False 17) Faiz meets Farhan, a car dealer and tells him that he wants a car that can move 20km/liter Farhan promotes one of the cars in the showroom and says that it suits the purpose. Faiz buys the car by relying on Farhan's representation. Subsequently Faiz finds that the car can move 15km/liter The above situation is an example of breach of warranty. a) True b) Falsearrow_forwardPeters paid Davis $1000 for carpeting which was installed in Peter's home on March 1, 1974. Peters immediately noticed a defect in the carpets and notified Davis. Davis's employees attempted several times to fix the carpets but were unsuccessful. On May 1, Peter wrote Davis and rejected the carpet demanding a full refund of the purchase price. Davis failed to remove the carpet. What will be the result?arrow_forward
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