OH Bar Contracts and Sales 2

Question 1

A merchant emails another merchant: "I will sell you 500 widgets at $10 each, offer firm for 30 days." Ten days later, before acceptance, the seller revokes.
Under UCC Article 2, is the revocation effective?

Accepted Answer

No, because a signed firm offer by a merchant is irrevocable for the stated period up to three months

Answer

Yes, because no consideration was given to keep the offer open

Answer

Yes, because firm offers require a separate signed writing apart from the offer itself

Answer

No, because all offers between merchants are irrevocable for 90 days

Question 2

A homeowner promises to pay a painter $5,000 for painting her house. After the painter finishes, the homeowner says, "I'll also give you a $500 bonus next week." She never pays the bonus. Is the bonus promise enforceable?

Accepted Answer

No, because past consideration is not valid consideration

Answer

Yes, because the painter relied on the promise

Answer

Yes, because it modified an existing contract in good faith

Answer

No, because bonuses must be in writing under the Statute of Frauds

Question 3

A buyer and seller sign a fully integrated written contract for the sale of land. The buyer seeks to introduce evidence of a prior oral agreement that the seller would also remove an old barn. Is the evidence admissible?

Accepted Answer

No, because the parol evidence rule bars prior agreements that contradict or supplement a fully integrated writing

Answer

Yes, because oral agreements are always admissible to explain a writing

Answer

Yes, because the parol evidence rule applies only to sales of goods

Answer

No, because the Statute of Frauds bars all oral evidence about land

Question 4

A seller contracts to deliver 100 chairs by June 1. On May 15, the seller delivers 100 chairs, 10 of which are scratched. Under the UCC perfect tender rule, what may the buyer do?

Accepted Answer

Reject the whole, accept the whole, or accept any commercial units and reject the rest

Answer

Only reject the entire shipment

Answer

Only accept the shipment and sue for damages

Answer

Nothing, because the defect is not material

Question 5

A general contractor uses a subcontractor's bid in computing its own bid on a project. After the general contractor wins the project, the subcontractor tries to revoke its bid. What is the general contractor's best theory to hold the subcontractor to the bid?

Accepted Answer

Promissory estoppel making the bid irrevocable due to foreseeable reliance

Answer

The merchant firm offer rule

Answer

An implied-in-law quasi-contract

Answer

The mailbox rule

Question 6

A buyer contracts to buy a rare painting for $50,000. The seller repudiates and sells it to a third party. What remedy is the buyer most likely to obtain?

Accepted Answer

Specific performance or replevin is unavailable against the good-faith purchaser, so damages measured by market price minus contract price

Answer

Specific performance against the third party regardless of good faith

Answer

Punitive damages for bad-faith breach

Answer

Rescission plus consequential damages only

Question 7

An uncle promises his nephew $10,000 if the nephew refrains from drinking and smoking until age 21. The nephew complies. Is there consideration for the uncle's promise?

Accepted Answer

Yes, because forbearance of a legal right is valid consideration

Answer

No, because the nephew benefited from healthy living

Answer

No, because family promises are presumed gratuitous and unenforceable

Answer

Yes, but only if the promise was in writing