Final Exam Review PDF

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FINAL&EXAM&REVIEW&PROBLEMS& CHAPTER&4:&TORTS/NEGLIGENCE& LEGAL&RULE& • 4#elements#needed#to#prove#Negligence:# 1. Defendant&has&duty&a&of&care&to&the&plainLff& 2. Defendant&breached&the&duty&of&care& 3. CausaLon&=&actual&causaLon&+&proximate&causaLon&(plainLff&must&be&in&zone&of&danger)& 4. PlainLff&must&be&injured& SAMPLE&PROBLEM&1& Denise#owns#and#operates#a#chiroprac8c#office#in#midtown#Manha;an.#On#December#2nd#she#no8ced# that#one#of#the#chairs#she#uses#to#give#examina8ons#on#had#a#crack#in#one#of#its#legs.#She#thought#that# the#chair#would#be#fine#un8l#she#could#replace#it#with#a#cheaper#version.#Unfortunately,#Doug#came#in# later#that#day#for#his#appointment#and#sat#down#on#the#chair.#The#chair#collapsed#and#a#piece#of#wood# from#the#cracked#chair#leg#broke#off#and#stabbed#Doug#in#the#leg.#Doug#screamed#very#loudly#because#of# the#intense#pain.#His#screams#were#so#loud#that#Gigi,#who#was#outside#riding#her#bike#2#blocks#away,#was# startled#and#crashed#into#a#parked#car#breaking#her#ankle.#Both#Doug#and#Gigi#want#to#sue#Denise#to# recover#for#their#injuries.# (a) In#an#ac8on#by#Doug#against#Denise#to#recover#damages#for#his#injuries,#judgment#for#whom?# • Judgement&for&Doug&since&all&4&of&the&elements&of&negligence&have&been&met&and&can&be& proved&in&a&court.& (b) In#an#ac8on#by#Gigi#against#Denise#to#recover#damages#for#her#injuries,#judgment#for#whom?# • Denise&was&the&actual&cause&of&the&injury&but¬&the&proximate&cause&because&she&was& not&in&the&office.&While&other&3&elements&are&present,&proximate&cause&is¬&there&since& Gigi&was&2&blocks&away.&Thus&judgement&for&Denise&

CHAPTER&5:&PRODUCTS&LIABILITY/&STRICT&LIABILITY& LEGAL&RULES# • Six#requirements#for#products#liability#lawsuit#based#on#strict#liability#(page#122)# 1. The&product&must&have&been&in&a&defecLve&condiLon&when&defendant&sold&it& 2. Defendant&must&be&normally&engaged&in&the&sales&or&distribuLon&of&the&product& 3. Product&must&be&dangerous&to&the&user&because&of&the&defecLve&condiLon& 4. PlainLff&must&insure&physical&harm&by&use&or&consumpLon&of&the&product& 5. &The&defecLve&condiLon&must&be&the&cause&of&the&injury&or&damage& 6. Goods&must¬&have&been&substanLally&changed&from&the&Lme&the&product&was&sowed&to& the&Lme&that&the&injury&was&sustained& • Who#can#be#sued#in#a#products#liability#lawsuit#based#on#strict#liability?## • Any&party&connected&to&that&product&in&the&manufacturing,&supplying,&distribuLon&or&sales& SAMPLE&PROBLEM&2& Chris8an#was#visi8ng#his#cousin#Frankie#at#Frankie’s#new#apartment.#Chris8an,#feeling#thirsty#,#asked# Frankie#if#he#had#anything#to#drink.#Frankie#told#him#yes#and#got#Chris8an#a#bo;le#of#Pepsi#that#he#had# bought#at#Rite#Aid.#Chris8an#started#to#open#the#the#old#style#glass#bo;le#and#it#sha;ered#in#his#hand# severely#cu\ng#him#and#requiring#25#s8tches#to#repair#his#hand.#The#bo;le#had#been#part#of#an#error#at# the#Pepsi#manufacturing#plant#that#caused#the#glass#to#be#more#fragile#and#likely#to#break#than#usual.#

However,#this#defect#was#not#visible#and#neither#Pepsi,#Rite#Aid#nor#Frankie#behaved#negligently#in# causing#or#not#no8cing#the#defect.#Nonetheless,#Chris8an#is#very#upset#and#wants#to#sue#somebody.# (a) Does#Chris8an#have#a#claim#against#Pepsi?#Explain#fully.# • Yes# (b) Does#Chris8an#have#a#claim#against#Rite#Aid?#Explain#fully.# • Yes# (c) Does#Chris8an#have#a#claim#against#Frankie?#Explain#fully.# • No#

CHAPTER&8:&CRIMINAL&LAW/CORPORATE&CRIMINAL&LIABILITY;&CHAPTER&13:&FRAUD,&CHAPTER& 32:&CONSUMER&LAW/DECEPTIVE&ADVERTISING.&(ANSWER&COME&FROM&DIFFERENT&CHAPTERS)& SAMPLE&PROBLEM&3& Jet#Zimora#is#the#president#and#chief#execu8ve#of#JZ#Enterprises,#Inc.#(“JZE”),#a#corpora8on.##JZE#heavily# adver8sed#and#promoted#the#Z-Ray#Ionized#Bracelet#on#its#website,#in#magazine#ads#and#in#television# infomercials.##JZE#claimed#that#the#bracelet#was#ionized#and#provided#a#“miraculous#cure#for#chronic# pain”#by#balancing#the#flows#of#posi8ve#and#nega8ve#energies.##The#ads#stated#that#the#claims#of# “immediate,#significant#or#complete#pain#relief”#had#been#proven#by#tes8ng.##In#reality,#all#of#these#claims# were#false.##The#bracelet#was#not#ionized,#no#tests#had#been#conducted#and#there#was#absolutely#no# evidence#that#the#bracelet#had#any#effect#on#pain.##Jet#Zimora#was#aware#that#the#claims#made#in#the#ads# had#no#basis,#but#approved#all#of#the#marke8ng#and#ads#done#by#JZE.# (a) Cora#Withers#is#70#years#old#and#suffers#from#severe#arthri8s.##Cora#saw#one#of#JZE’s#infomercials# and,#in#reliance#on#the#statements#that#it#would#relieve#pain,#called#the#number#on#the#screen# and#ordered#a#Z-Ray#Ionized#Bracelet,#which#cost#her#$300.##Cora#wore#bracelet#for#three#weeks# and#found#that#it#had#no#effect#on#her#pain.##Cora#wants#to#sue#JZE.### (i) What#claim#can#Cora#bring#against#JZE?##What#will#she#have#to#show#to#be#successful#on# her#claim?#She&can&sue&them&for&fraud.&In&order&to&do&this,&she&must&prove&these&3& things:&misrepresentaLon&of&facts,&intent&to&deceive,&plainLff&jusLfiably&relied&on&these& lies&to&purchase&the&product# (ii) If#Cora#is#successful#on#her#claim,#what#remedies#can#she#obtain?##She&she&proves&the& first&3&elements,&she&can&ask&for&cancelaLon&or&recession&of&the&contract.&If&she&wants& money&damages,&she&most&prove&the&4th&element&of&money&damages# (c) What#types#of#ac8ons#might#an#administra8ve#agency,#such#as#the#Federal#Trade#Commission# (FTC),#take#against#JZE?#Explain.# • The&FTC&can&send&a&warning&leger,&demand&that&the&company&stop&the&decepLve& adverLsing,&and&can&request&that&the&company&do&counter&adverLsing&(inform&the& public&of&the&deceit&and&put&out&new&adverLsing)& (d) Assume#that#JZE’s#adver8sing,#promo8on#and#sale#of#the#Z-Ray#Ionized#Bracelet#cons8tuted#mail# and#wire#fraud,#which#are#viola8ons#of#federal#criminal#statutes.# (i) Can#JZE,#as#a#corpora8on,#be#charged#with#and#found#guilty#of#those#crimes?#Yes&the& corporaLon&can&be&charged&because&any&corporaLon&that&commits&crimes&can&be&held& criminally&liable&and&charged&for&the&crimes&& (ii) Can#Jet#Zimora#be#charged#with#and#found#guilty#of#those#crimes?#Yes&because&if&of&the& Responsible&Corporate&Officer&Doctrine.&Whether&or¬&he&knew&about&them&or&took& part&in&them,&he&can&be&hold&criminally&liable&

CHAPTER&10:&CONTRACTS/NATURE&&&CLASSIFICATION#&

SAMPLE&PROBLEM&4& Classify#whether#each#contract#is#one#of#the#following:#implied,#unilateral,#bilateral,#executory,#executed,# void,#voidable,#or#unenforceable.#Explain#why#each#should#be#classified#as#such.# (a) Alexa#puts#an#adver8sement#on#Craigslist#offering#$5000#reward#for#the#return#of#her#cat.#Dennis# sees#the#adver8sement#and#goes#out#to#see#if#he#could#find#the#cat#for#the#reward.# • Unilateral&-&a&promise&for&an&act& (b) Regina#enters#into#an#oral#real#estate#contract#with#Ted#over#the#phone,#failing#to#sa8sfy#the#Statute# of#Frauds.# • Unenforceable&-&it&is&a&contract&but&is&unenforceable&since&it&must&been&in&wriLng& (a) Julie#walks#into#the#local#hair#salon#and#sits#down#in#one#of#the#empty#chairs.#Zena#cuts#her#hair#in# accordance#with#a#picture#on#the#wall#that#Julie#pointed#at.#Neither#party#said#a#word#to#each#other.# • Implied&-&implied&by&the&conduct&of&the&parLes&involved& (b) Kyle#has#a#contract#to#purchase#Larry’s#car#for#$4,000.#Larry#delivered#the#car#to#Kyle’s#house,#but#Kyle# has#not#paid#Larry#yet.# • Executory&-&one&party&has&fulfilled&their&obligaLon&and&the&contract&is¬&yet&complete& (c) Cynthia#tells#William#that#she#will#buy#his#textbook#for#$65.#William#agrees.# • Bilateral&-&a&promise&for&a&promise& (d) Keith#agrees#to#kill#his#friend’s#mother#for#$2000.# • Void&-&this&is&an&illegal&act&and&thus&is&void& (e) David#tells#Angela#that#the#furniture#pieces#that#he#is#selling#her#are#valuable#an8ques#worth#several# thousand#dollars#each.#He#knows#the#furniture#is#fake#and#is#not#worth#much#money.#Angela#buys#the# furniture#and#shortly#thereaner#discovers#David#commi;ed#fraud.# • Voidable&-&at&the&opLon&of&Angela&since&David&commiged&a&crime&

CHAPTER&11:&AGREEMENT;#CHAPTER&17:&SALES&AND&LEASE&CONTRACTS& LEGAL&RULES& • General&RevocaLon&Rule:& • Offerer#has#the#right#to#revoke#an#offer#at#any#8me#before#acceptance#occurs#by#the#offeree# and#they#must#communicate#this#to#the#offeree#before#revoking#it# • Most#offers#are#revokable# • General&Acceptance&Rule&/Mailbox&Rule:#(by#mail,#phone,#e-mail)# • Offer#is#accepted#the#day#the#le;er#of#acceptance#is#SENT#not#received# • If#le;er#of#acceptance#and#le;er#or#rejec8on#are#sent#that#the#same#8me,#whichever#one#is# received#first#is#the#one#that#is#effec8ve# • Mirror&Image&Rule:#offer#and#acceptance#must#mirror#each#other#exactly# • Counter&Offers:#rejec8on#of#the#original#offer#plus#the#offeree#sending#a#new#offer# • Firm&Offers&by&Merchants:## • Firm&Offers&by&Non-Merchants:& • OpLon&Contracts:& SAMPLE&PROBLEM&5& On#December#1,#Erica,#a#computer#salesperson,#sent#a#signed#le;er#to#Julia,#also#a#computer#salesperson,# offering#to#buy#from#Julia#three#used#laptops#for#a#total#of#$450.#In#the#le;er,#which#accurately#described# the#computers#and#indicated#the#price,#Erica#wrote;#“I#promise#to#keep#this#firm#offer#open#to#you#for#4# months#from#today.#(Signed)#Erica.”#On#March#23,#Erica#decided#that#she#did#not#want#to#buy#the# computers#anymore.#On#that#same#day,#Erica#sent#a#le;er#to#Julia#telling#her#that#the#offer#was#no#longer#

open.#Julia#received#the#le;er#on#March#27.#Aner#reading#the#le;er,#Julia#was#furious.#Later#that#day,#on# March#27,#Julia#sent#a#le;er#to#Erica#saying,#“I#accept#your#offer#of#December#1.”#Erica#received#this#le;er# on#April#2.#Erica#refused#to#pay#for#the#computers.#Julia#sued#Erica#for#breach#of#contract.# (a) Judgment#for#whom?#Explain.# • Judgement&for&Erica&since&Erica&made&a&valid&revocaLon&of&the&contract&amer&the&3rd& month.&A&merchant&has&the&ability&to&revoke&an&offer&amer&3&months&if&it&is&an&offer&for& more&than&3&months.& (b) Assume#that#Erica#and#Julia#are#both#soccer#players#by#profession#and#not#computer#salespersons# (not#merchants).#Judgment#for#whom?#Explain.# • Judgement&for&Julia&since&there&is&a&contract,&Erica&was¬&supposed&to&revoke&the&offer& for&another&month&since&it&was&only&for&2&months.& (c) Assume#again#the#facts#in#(b)#(that#Erica#and#Julia#are#both#soccer#players)#and#that#Erica#had# made#the#offer#orally#on#her#cell#phone#and#not#in#wri8ng.#Judgment#for#whom?#Explain.# • Judgement&for&Erica.&Using&the&General&RevocaLon&Rules,&Erica&revoked&the&offer&and& read&the&revocaLon&leger&before&Julia&sent&the&leger&of&acceptance,&thus&there&is&no& contract&that&can&be&enforced.& #################### SAMPLE&PROBLEM&6& On#May#1,#Sonia,#the#owner#of#a#garden#supply#company#sends#an#offer#to#Jasmine,#the#owner#of#a# flower#shop,#“I#will#sell#you#100#pounds#of#my#new#plant#food,#for#a#total#cost#of#$1,000.##I#need#to#sell# this#item#quickly,#so#the#offer#will#expire#in#10#days#from#today.”#(Signed)#Sonia.#On#May#2,#Jasmine# receives#the#le;er#from#Sonia.#On#the#morning#of#May#3,#Sonia#realizes#that#she#can#sell#the#plant#food# for#a#higher#price#to#a#different#buyer#so#she#sends#Jasmine#a#second#le;er#sta8ng:#“Sorry,#I#withdraw#my# previous#offer#of#May#1#to#sell#you#plant#food”#(Signed)#Sonia.#Due#to#a#delay#in#the#mail,#Jasmine#does# not#receive#the#second#le;er#un8l#May#7.#On#May#3,#aner#sending#the#second#le;er#to#Jasmine,#Sonia# sells#the#plant#food#to#a#different#buyer.#Meanwhile#on#May#6,#Jasmine#calls#Sonia#and#accepts#her# original#offer.#Sonia#informs#Jasmine#that#she#cannot#sell#her#the#plant#food#since#she#already#sold#it#to# another#buyer.#Jasmine#sues#Sonia#to#recover#damages#for#breach#of#contract.#Judgment#for#whom?# • Judgement&for&Jasmine.&When&Jasmine&called&Sonia&on&May&6&to&accept&the&offer,&she&had¬& yet&received&the&revocaLon&leger&from&Sonia&(she&received&it&on&May&7)&so&a&contract&was& formed&when&she&made&the&phone&call.& SAMPLE&PROBLEM&7& Tom#asks#Ed#if#he#was#interested#in#buying#his#house.#Ed#replied#that#he#was#interested#but####that#he# needed#a#li;le#8me#to#discuss#it#with#his#wife.#Tom#stated,#“I’ll#hold#this#offer#open#for#2#weeks#if#you#give# me#$500.”#Ed#responded,#“Great,#let#me#write#you#a#check#for#$500.”#Ed#wrote#the#check#which#Tom# cashed#the#next#day.#1#week#later,#Tom#sold#the#house#to#his#sister.#Ed#found#out#and#sued#Tom#for#breach# of#contract.#Judgment#would#be#for#whom?# • Judgement&for&Ed.&This&is¬&a&firm&offer&because&it&is¬&in&wriLng,&but&it&is&an&OpLon& Contract.&Ed&gave&Tom&$500&to&hold&the&offer&open&for&2&weeks,&which&Tom&was&obligated&to&do,& but&instead&he&sold&the&house&a&week&later&to&his&sister,&and&thus&he&broke&the&contract.&

CHAPTER&12:&CONSIDERATION&& LEGAL&RULES# • Pre-exis8ng#legal#obliga8ons/Modifying#a#preexis8ng#legal#obliga8on#and#new#considera8on# • Se;lement#of#a#Liquidated#Debt#and#excep8ons#(posted#on#BB)# • Se;lement#of#an#Unliquidated#Debt#and#excep8ons#(posted#on#BB)#

• Past#Considera8on#and#Excep8on# • Restric8ve#Covenants:# SAMPLE&PROBLEM&8& Steve#and#Michael#entered#into#a#wri;en#and#signed#contract#under#which#Michael#agreed#to#replace#the# roof#on#Steve’s#house#for#a#total#price#of#$20,000.# (a) Michael#replaced#the#roof#according#to#the#terms#of#the#contract.#While#Steve#acknowledged# that#he#owed#Michael#the#full#$20,000,#he#informed#Michael#that#because#he#was#short#of#cash# he#would#be#unable#to#pay#the#en8re#amount.#Michael#orally#agreed#to#accept#$15,000#in#full# sa8sfac8on#of#the#$20,000#that#was#owed#to#him#if#Steve#would#also#give#Michael#his#brand#new# large#screen#television.#The#television#was#worth#$2500.#Steve#immediately#paid#Michael#the# $15,000#and#gave#him#the#television.#Michael#took#the#television,#deposited#the#money#and#then# sued#Steve#for#the#addi8onal#$2,500#he#claims#is#owed#to#him.#Judgment#for#whom?# • Judgement&is&for&Steve.&This&is&a&liquidated&debt&since&there&is&no&disagreement&from& either&party&as&to&how&much&is&owed.&The&creditor&accepted&a&new&consideraLon&(the& television)&so&the&debt&was&fulfilled&Michael&cannot&sue&for&the&remaining&$2500.& (b) Instead#of#the#facts#in#(a),#assume#that#a#good#faith#dispute#arose#as#to#whether#Michael#had# replaced#the#roof#according#to#the#terms#of#the#contract.#Michael#claimed#that#the#full#$20,000# was#due,#but#Steve#claimed#that#he#owed#him#only#$15,000.#Aner#several#weeks#of#argument,# Steve#sent#a#check#to#Michael#for#$17,500#with#a#note#that#said#that#he#was#making#this#payment# as#full#payment#owed#on#the#contract#and#a#nota8on#on#the#check#that#said#“in#full#payment#of# roofing#contract.”#Michael#endorsed#the#check#and,#without#making#any#further#nota8ons,# deposited#it.#Michael#then#sued#Steve#for#the#remaining#$2,500#he#claims#is#due.#Judgment#for# whom?#Explain#fully.# • Judgement&is&for&Steve.&This&is&an&unliquidated&debt.&There&is&an&accord&and&saLsfacLon& since&Michael&endorsed&and&signed&the&check&without&wriLng&“under&protest”&on&it,& thus&the&debt&is&fulfilled&and&Michael&is¬&able&to&sue&for&the&remaining&$2,500& SAMPLE&PROBLEM&9& Cameron,#a#building#contractor,#entered#into#a#wri;en#agreement#with#Octavia,#for#a#new#addi8on#on# her#house#for#$100,000.#Aner#the#work#was#one-half#complete,#Cameron#complained#about#the#rising# cost#of#materials#and#stopped#work.#Octavia#said#to#Cameron:#“If#you#go#ahead#and#finish#the#job,#I’ll#pay# you#a#bonus#of#$25,000.”#Cameron#agreed#and#finished#the#job.#Cameron#then#demanded#payment#of# $125,000,#but#Octavia#refused#to#pay#more#than#$100,000.# (a) Can#Cameron#enforce#the#promise#for#the#bonus#claim?#Explain.# • No,&he&cannot&because&the&promise&is¬&backed&up&by&consideraLon&since&Cameron& already&had&a&pre-exisLng&duty&to&complete&job&according&to&the&contract.&If&Cameron& had&gogen&this&promise&in&wriLng,&then&he&could&have&gogen&the&bonus.& (b) Assume#that#Cameron#did#complete#building#the#new#addi8on#to#Octavia’s#house#and#Octavia# responded#by#sta8ng:#“You#did#such#an#amazing#job,#so#I’m#going#to#give#you#a#bonus#of# $25,000.”#Can#Cameron#enforce#this#promise?# • No&because&this&is&a&case&of&past&consideraLon,&a&promise&for&an&act&that&has&already& taken&place.&This&cannot&be&enforced&because&there&is&no&consideraLon.& (c) Assume#that#Octavia#had#said#to#Cameron:#“If#you#fix#the#pavement#in#front#of#my#house#as#well# as#the#new#addi8on#to#the#house,#I’ll#pay#you#an#extra#$25,000.”#Cameron#fixes#the#pavement#in# front#of#Octavia’s#house#as#well#as#finishes#the#addi8on#to#her#house.#Can#Cameron#enforce#the# promise#to#pay#the#extra#$25,000?#Explain.# • Yes&because&Octavia&promised&to&pay&Cameron&an&extra&amount&of&money&for&addiLonal& work,&thus&there&is&new&consideraLon.&

####################### SAMPLE&PROBLEM&10& Emma#goes#to#work#for#MSB#Corp.#located#in#Atlanta,#Georgia.#They#ask#her#to#sign#an#employment# contract#which#includes#a#clause#that#states#that#aner#Emma#leaves#MSB#Corp.,#Emma#will#not#work#for# any#compe8tor#company#in#the#state#of#Georgia#for#a#period#of#ten#months.#Aner#two#years#of#working# for#MSB,#Emma#leaves#MSB#and#two#months#later#begins#to#work#for#its#main#compe8tor,#NTC#Corp.,# located#in#Savannah,#Georgia.##MSB#sues#Emma#for#breach#of#contract.#Judgment#is#for#whom?#Explain.## • Judgement&is&for&MSB.&This&is&a&case&of&restricLve&covenant,&this&will&be&granted&if&it&is&for&a& larger&agreement&or&an&employment&contract,&also&if&it&is&reasonable&for&the&amount&of&Lme&and& geographically.&The&RestricLve&Covenant&is&reasonable&since&the&amount&of&Lme&of&10&months& and&geographical&barrier&of&within&Georgia&are&reasonable&since&Emma&can&work&in&another& state&over&the&next&10&months.&

CHAPTERS&13/17:&DEFENSES&TO&CONTRACT&ENFORCEABILITY&# LEGAL&RULES# • Statute&of&Fraud&Rules&(cases#that#must#be#in#wri8ng#to#be#enforceable#in#court)& (a) Interests&in&Land&Provision&(Real&Estate&Provision):#in#general#real#estate#contracts#must#be#in# wri8ng#to#be#enforceable#in#court,#there#are#2#excep8ons:# • ExcepLon&1:#leases#for#1#year#or#less#do#not#require#a#wri8ng# • ExcepLon&2:#if#the#buyer#of#property#does#these#3#things#then#an#oral#contract#will#be# enforced:#pays#part#of#purchase#price,#takes#possession#of#the#land,#makes#valuable# improvements#on#the#land# (b) One&Year&Rule&Provision:&contracts#that#cannot#be#completely#performed#within#1#year#from#the# day#aner#the#contract#is#formed#must#be#in#wri8ng# • (c) Collateral&Promises&Provision:#secondary#promise#that#consists#of,#consists#of#a#creditor#debtor# and#a#neutral#3rd#party,#law#states#that#this#type#of#promise#must#be#in#wri8ng#to#be#enforced# • ExcepLon&1:#A#person#promises#to#become#primarily#responsible#for#debt# • ExcepLon&2:#“Main#Purpose#Rule”#if#the#purpose#of#the#3rd#party#is#for#their#own#selfish# reasons#then#that#collateral#promise#(oral#or#not)#is#enforceable# (d) Sales&of&Goods&$500&or&More&Provision:#under#UCC#and#transac8on#of#sale#of#goods#$500#or# more#(merchants#or#non#merchants)#must#be#in#wri8ng,#2#excep8ons#(page#410-411):# • ExcepLon&1:#“Merchant#Memo#Rule”#2#merchants#enter#into#an#oral#contract,#merchant#A# sends#a#conforma8on#le;er#and#merchant#B#receives#the#le;er#and#does#not#respond,#if# merchant#A#does#not#receive#a#rejec8on#le;er#within#10#days#then#it#is#considered#a# wri;en#contract# • ExcepLon&2:#law#states#the#oral#contract#is#enforced#if:#if#there#are#custom#made#goods#for# a#par8cular#buyer#and#the#goods#are#not#suitable#fore#resale#to#others,#also#if#the# manufacturer#has#substan8ally#started#manufacturing#the#custom#goods# • Fraudulent&MisrepresentaLon:## • If#fraud#occurs#then#the#contract#is#voidable# • The#plain8ff#has#the#op8on#to#have#the#contract#set#aside#(recession).#To#do#so,#the#plain8ff#must# prove#misrepresenta8on#of#fact,#that#the#defendant#intended#to#deceive,#and#that#thew#plain8ff# unjus8fiably#relied#on#this#promise# • In#order#to#get#money#damages,#the#plain8ff#must#prove#that#injury#occurred& • Mistakes&(Unilateral/Bilateral):&

• Unilateral&Mistake:&only#1#party#to#the#contract#makes#a#mistake,#has#to#be#a#mistake#about#a# material#fact#(fact#that#is#important#to#subject#ma;er#of#the#contract)#cannot#be#a#mistake#of# value#(textbook#page#310),#if#non-mistaken#party#knew#about#the#mistake#then#the#contract#can# be#canceled,#if#there#is#a#mathema8cal#mistake#it#can#be#canceled# • Bilateral&Mistake:#both#par8es#to#the#contract#are#mistaken#about#the#same#material#fact,#law# says#either#party#can#cancel#the#contract# SAMPLE&PROBLEM&11& On#May#1,#2015,#Simone#accepted#an#offer#for#a#...