Fact Pattern 10-1
Lulene makes the best lemon meringue pies in Mississippi. So Ellen, who owns Ellen's Old Fashion Cafe, contracts with Lulene to buy 50 pies per week at the price of $5.00 per pie.
Although Lulene took a class in business law, she forgot to get her agreement with Ellen in writing. Lulene and Ellen agreed during a chat. Lulene said: "I will supply you with lemon meringue pies for however long you want them at $5.00 per pie." Ellen said: "That's great, I'll take them." Both women were pleased.
Soon Lulene had a problem. Between a hurricane in Florida and brush fires in California, the price of lemons increased by 200%. Now, instead of the $5.00 per pie price she intended to charge Ellen, she feels she must charge $7.00 per pie to make a little profit.
Lulene calls Ellen with the bad news and Ellen has a fit. She tells Lulene that's too bad, but the deal is off. Lulene says, "That's what you think!" and goes to see Amanda, her attorney.
-Refer to Fact Pattern 10-1. Under the common law, Lulene's offer:
A) is valid based on clarity
B) is valid based on communication
C) is valid based on intent
D) is invalid based on indefiniteness
E) is invalid based on illegality
Correct Answer:
Verified
Q556: Exemplary damages are also called:
A) special
B) punitive
C)
Q557: In violation of their contract, a partner
Q558: An example of an equitable remedy is:
A)
Q559: Liquidated damages:
A) are only available in some
Q560: A _ is an order by the
Q562: The remedy of _ may be used
Q563: A doctor driving on a highway stops
Q564: Quasi-contract is closely related to the concept
Q565: The courts may impose obligations on one
Q566: Fact Pattern 10-1
Lulene makes the best lemon
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