Overview
The partners of Sterling Cooper have moved the firm to Gotham, California. Assume that all persons named are natural persons (and not corporate or other entities) and are residents of California, unless the question states otherwise.
In all instances, apply either the standard common law rules of contract or the UCC rules, as appropriate.
In selecting an answer, if several seem possible, choose the best answer.
1. Bert contracts with Pete to sell Pete his portfolio of Lucky Strike tobacco stock, worth $25,000. It’s a handshake deal, with nothing in writing. Later, Pete regrets his decision to buy and refuses to pay the agreed price. Bert sues Pete for breach of contract, but Pete claims that the agreement needed to be in writing to be enforceable. Who wins?
a)Pete, under the common law
b)Pete, under the UCC
c)Bert, under the common law
d)Bert, under the UCC
2. Roger is tired of advertising and leaves Gotham to become an otter rancher in Sonoma County. Roger is considering a sale to Betty of 100 otters for $5,000 and a sale to Don of his Cadillac for $10,000. Under UCC Article 2/2A and the Merchant’s Firm Offer Rule (MFOR), can Roger give an irrevocable offer for these sales?
a)No to sale of otters: UCC does not apply
b)No to sale of Cadillac: MFOR does not apply
c)No to both sales
d)Yes to both sales
3. Roger is once again running an otter ranch in Sonoma County, and he contracts with a local fishery to supply fish for his otters. The fishery delivers smelt, which are inappropriate for otters, and Roger demands more suitable fish. The fishery refuses and the contract is not clear on its face regarding kind of fish. Using implied contract interpretation, what information will a court consider third in interpreting the agreement?
a)Parties’ negotiations
b)Fish delivery practices in the industry
c)Previous deliveries under the parties’ prior contracts
d)Previous deliveries under this contract
4. Bert contracts with Harry to buy a new plasma television for the office. The parties agree that Bert will pick up the TV from Harry, and Harry selects a TV that conforms to the contract terms, sets it aside and tells Bert that it is ready. However, a group of Elvis impersonators steal the TV before Bert gets it. As between Bert and Harry, who bears the risk of loss?
a)Harry, if he is a (TV) merchant
b)Harry, if this was a shipment contract
c)Harry, if this was a destination contract
d)Bert, regardless of whether Harry is a merchant
5. Joan has stolen Peggy’s electric, weight-reducing belt and sold it to Betty for $500. One day, Peggy notices the belt at Betty’s house and demands it back. Can she get it?
a)Yes
b)No, if Betty acted in good faith
c)No, if Betty paid good consideration (value)
d)No, if there was both good faith and consideration
6. EXTRA CREDIT. According to Sir Walter Scott, what can a lawyer aspire to call himself (or herself)?
a)Architect
b)Carpenter
c)Electrician
d)Plumber
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