Tumillah, an 18-year-old coin collector, walks into Cory’s Coin Store. Tumillah identifies what she believes to be a coin that she is missing from her collection and asks Cory how much he wants for, as Tumillah put it, “that one-of-a-kind, rare coin.” Cory knows that the coin is actually a very nice, but far from unique, reproduction worth about 90 dollars. Seeking to capitalize on Tumillah’s misunderstanding, Cory offers to sell the coin to Tumillah for $400. Tumillah happily buys the coin for $400. Has a legally enforceable agreement been made?

One of these cases, discussed in lectures and/or the texts, is not properly matched with the concept after it.  Pick that mismatched case.

Natalie gets car insurance from Lizard, Inc. Every six months, Lizard automatically renews her policy and charges her credit card for the next six months. This process has been occurring for five years. One week after the automatic renewal, Natalie is in a car accident, and her car is totaled. Lizard refuses to pay and claims there is not a valid contract. Was there a valid contract?

Choose the true statement:

Wayne has contracted with his neighbor, Julius, to build a shed for Julius in exchange for Julius’s installing a security system at Wayne’s vacation house. Both parties agree to finish their projects in two weeks. Three days before the deadline, Wayne has not started building the shed. Julius does not think Wayne can finish on time, so he does not start performing. Wayne finishes the shed on time, but Julius did not install the security system. Are Julius’ duties discharged?

A man, Ronald, is seeking employment at Massage Femme as an after-hours custodian. The manager of the company informs him that it is a women’s only spa, and, therefore, the company only hires women massage therapists and employees, to keep an open and comfortable environment for its female guests. Ronald sues Massage Femme for discrimination under Title VII. Ronald will probably:

Rumi, Sly, and Theresa are neighbors. They eventually all have families and decide to build a waterslide for their children to enjoy. They also agree to split the cost of fixing the waterslide, if anything happens to it. Eventually, the slide breaks and it will cost $180 to repair it. Sly proposes that they just buy a new slide for $300. Rumi agrees and they purchase it without speaking to Theresa. How much of the cost is Theresa responsible for?

1.3.1 When productive efficiency and allocative efficiency coincide. (1)

Eric and Frank are buddies. One night, they head to a pub to celebrate Frank’s recent lottery win. Frank becomes intoxicated, and Eric presents him with a contract. In the contract, Eric agrees to wash Frank’s car in exchange for half a million dollars. Frank thinks that the contract is a great, “funny” deal and signs. Once Frank is sober, he refuses to follow through with the contract. Eric will most likely:

Veronica offers tutoring services.  Bill has been falling behind in some law lectures and calls Veronica for help. Veronica suggests that Bill pay Veronica $12 an hour for tutoring, with Veronica tutoring Bill for an hour every night for two weeks.  Bill notes that the cost is less than some others advertise.  Veronica nods and says, “Yes, it is.” Bill says, “Well, Veronica, that’s some offer!”  Veronica nods again and says, “I agree.” Bill smiles broadly, nods, and happily declares, “okay.” When is the contract considered accepted?