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Ralph wants to sell his house, as is (meaning, “no warranties”), for $395,000. His neighbor, Juan, expresses interest in buying the house but wants time to think it over. Juan asks Ralph to keep the offer open for five days. Ralph gives Juan a writing, without a signature, that states, “Ralph will not revoke the offer for five days.” Three days later, Ralph revokes the offer. Juan argues the offer was not revocable for another two days. Was the offer revocable?

Manteo wishes to open a franchise. He tries to negotiate with the franchisor regarding the mandatory arbitration clause and the waiver of a jury clause. Still, the franchisor will not change a single word in those clauses. Manteo eventually gives up and signs the franchise agreement. Manteo could have gotten different arbitration and jury trial clauses at different franchises. What type of clauses are these?

Sara is an employee at West & East, LLP. Recently, her supervisor, Tomar, has been sexually harassing her. Sara has filed suit against West & East, LLP (the employer of both Tomar and Sara). The defendant, West & East, LLP, wants to assert an affirmative defense against liability for a hostile work environment. Which of the following actions by West & East LLP, after Sara reported the sexual harassment, would NOT hurt West & East, LLP’s chances to defend itself successfully?  

Sylvia owns a company that sells boomerangs, and Zubo is a potential customer. Sylvia informs Zubo that each boomerang is hand carved, crafted out of rare wood, and thoroughly tested for accuracy and reliance. Although he was considering other boomerang suppliers, Zubo ultimately decides to buy Sylvia’s boomerang due to the impressive description of its craftsmanship. After completing the transaction, Sylvia learns that her friend Aang switched out some of the boomerangs as a prank, and Sylvia realizes that she actually sold Zubo a boomerang that was not up to company standards and probably does not even fly correctly. If Zubo sues Sylvia for fraud, will Zubo be able to prove its case?

Emerson Props LLC (“EPL”) is a large props company formed in 1957, and Flags USA Corporation is a small, local flag manufacturer formed in 2015. These two businesses never had any dealings with each other until they recently entered into a contract, with terms all drafted by EPL. The contract provides that EPL shall purchase 1,000 flags that Flags USA will specially design for EPL. The contract further provides that EPL has the right to initiate, on a weekly basis, purchase orders of up to 100 flags until the contract’s total number of flag purchases – 1,000 flags – has been met. Also, the contract includes a clause stating that EPL can cancel its obligation to pay for the remaining flags at any time if any Flags USA shipment does not arrive on the exact day as stated in a particular purchase order; this last provision is included in the contract even though time was of little importance to EPL. The first shipment of 100 flags arrives a day late, and EPL decides to cancel the entire remainder of flags due, leaving Flags USA with 900 flags displaying Robert Emerson’s face. Flags USA does not have a secondary market in which to sell these flags and decides to offer EPL the flags at 30% of the initial price. What is Flags USA’s best claim to enforce the original contract?

Kenneth is sick of his old truck and decides to sell it. The truck is perfectly fine to his knowledge. Danny, a friend of Kenneth’s, takes it for a test drive, and decides to buy it. After exchanging money and the truck, Danny realizes three weeks later that the front right headlight is out. Danny calls Kenneth and demands a refund (to return the truck for his money back), but Kenneth refuses and claims the truck was fine to his knowledge when he sold it to him. Danny…

Spaimany is a newly founded country that adopted the CISG articles. One company in Spaimany, Dog Toys Co. (Toys), agrees to import components manufactured by a company in the United States, Small Parts LLC (Parts). The two companies agree on a date and sign the appropriate paperwork. Toys quickly realizes that Parts is not going to execute its part on time. Toys notifies Parts that (1) the failure to deliver the components in a timely fashion is a fundamental breach, and that (2) Toys has extended the delivery date for three weeks. The extended time passes, and Parts again fails to deliver.  Is Toys able to terminate the contract?

Andy and Sally, both merchants and residents of Gainesville, Florida, aspire to enter into a contract with each other for the sale/purchase of goods. After Andy makes an offer to Sally, Sally responds with a written confirmation of acceptance; however, this written confirmation of acceptance states additional terms that are not present in Andy’s offer. Nevertheless, Andy’s offer did not expressly limit acceptance to the terms of his offer and Sally’s additional terms do not materially alter Andy’s offer. If Andy does not give notification of objection to Sally’s terms within a reasonable time, which of the following will occur?

Larry lends his brother, Brad, $1,000. Brad agrees to build a new pool deck for Sanado in exchange for Sanado paying Larry $1,000. Brad builds the pool deck, but Sanado refuses to pay. Can Larry sue for payment?