Business Offer and Contract Scenarios Analysis
The scenarios provided involve communication between various business entities regarding offers, counteroffers, acceptance, and contract formation. From a boat rental company negotiating sail prices to a boutique dress shop considering a partnership proposal, each scenario explores different aspects of contract law and business negotiations. The questions posed require an understanding of contract formation principles and legal implications in business dealings.
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Review 4 Richard Warner
Sunset and North Sunset Sail (Sunset) is a boat rental company that periodically needs to replace its sails. It always deals with North Sails (North). Sunset sends a letter to North asking North to quote a price on an order for 20 sails. North writes back: "We offer to make you 20 sails at $1000 per sail." Sunset responds in a second letter: "We're thinking about it, but $1000 seems high." Then Sunset decides that the market price of sails is bound to rise soon and sends a third letter: "$1000 is OK; the sails are to be delivered one every 30 days beginning June 13." (a) North's first letter was an offer, and Sunset's second letter was a rejection. (b) North's first letter was a price quote and Sunset's third letter was an offer. (c) North's first letter was an offer; Sunset's second letter was an inquiry about price, and their third letter was an acceptance. (d) North's first letter was an offer; Sunset's first letter was an inquiry about price, and their third letter was a rejection because it contained different terms than the offer.
Sowle and Vogue Vicki Vogue runs a boutique dress shop, In Vogue. Ruddy Stone writes Vicki a letter, which reads in part: I will give you $100,000 for the right to use your name In Vogue to market clothes selected by you over my Internet site, Your yes will put us in business together! Vicki responds, Thanks for the offer. I am currently negotiating to be the exclusive dealer for the Mr. Stevie line of clothes known as Sowle Cloth. I would like to use your offer in my negotiations to show that I have an Internet distribution channel. It does not make sense to me to market over the Internet unless Mr. Stevie and I reach an agreement. So I want to hold off on an unconditional yes to you until I see what happens. Stone replies, Understood. Let me know as soon as you know about Mr. Stevie. I will wait. Vicki and Mr. Stevie agree that she will be the exclusive dealer for the Sowle Cloth line. She immediately calls Stone, but, before she can utter a word, Stone says, I am revoking my offer. Did Stone succeed in revoking his offer? (a) Yes (b) No
Barney and Fred Barney sends Fred a purchase order agreement for 2000 hula hoops for $2000. Assume this is an offer. Fred crosses out the $2000 price, and writes in $1500 instead, initials the change, signs the agreement and sends it back. Fred s doing so is (a) an expression of acceptance under UCC 2-207. (b) an expression of acceptance under UCC 2-207 that adds additional terms. (c) not an expression of acceptance. (d) sufficient to form a contract under UCC 2-207(3).
Debbie and Ed 1 While flying from O'Hare to LAX, Debbie calls Edward on her cell phone. Debbie asks Edward what he would charge to cut and color her hair; Edward says he will do it for $300. Debbie says, "That's about what I expected", and then conversation turns to other matters, and then static sets in and it is impossible to continue the conversation. When she gets to LAX, Debbie faxes the following message to Edward: "I'd like you to cut and color my hair; $250 is OK with me; anytime Thursday. Do we have a deal?" Debbie misremembered the price; she would be willing to pay $300. Edward faxes back: "11:00 Thursday, but the price is $300." Debbie replies: "$300 OK--will you warrant that the color treatment will make me blond? See you Thursday." Edward does not respond. Is Debbie's first call an offer? (a) Yes (b) No
Debbie and Edward 2 While flying from O'Hare to LAX, Debbie calls Edward on her cell phone. Debbie asks Edward what he would charge to cut and color her hair; Edward says he will do it for $300. Debbie says, "That's about what I expected", and then conversation turns to other matters, and then static sets in and it is impossible to continue the conversation. When she gets to LAX, Debbie texts the following message to Edward: "I'd like you to cut and color my hair; $250 is OK with me; anytime Thursday." Debbie misremembered the price; she would be willing to pay $300. Edward texts back: "11:00 Thursday, but the price is $300. Say yes and we are on." Debbie replies: "$300 OK--will you warrant that the color treatment will make me blond? See you Thursday." Edward does not respond. Is Edward s response to Debbie s text an offer? (a) Yes (b) No
Debbie and Ed 3 While flying from O'Hare to LAX, Debbie calls Edward on her cell phone. Debbie asks Edward what he would charge to cut and color her hair; Edward says he will do it for $300. Debbie says, "That's about what I expected", and then conversation turns to other matters, and then static sets in and it is impossible to continue the conversation. When she gets to LAX, Debbie texts the following message to Edward: "I'd like you to cut and color my hair; $250 is OK with me; anytime Thursday." Debbie misremembered the price; she would be willing to pay $300. Edward texts back: "11:00 Thursday, but the price is $300. Say yes and we are on." Debbie replies: "$300 OK--you warrant that the color treatment will make me blond. See you Thursday." Edward does not respond. Does Debbie accept Edward s offer? (a) Yes (b) No
Debbie and Edward 4 Suppose that the contact was for the sale of Edward's famous hair conditioner, and the warranty is that the conditioner will not damage color treated hair. Did Debbie accept? (a) Yes (b) No
