Chapter 6 Think Critically About Evidence

While her car was in Prescott's garage for repairs, Wood noticed a large, seemingly unused, metal tool chest in the corner, complete with about 400 standard and metric tools. Wood offered to buy it for $3,000 and said, "You can take a week to think about it before you decide whether to accept." Four days l ater, before Prescott had responded, Wood told Prescott that she was withdrawing her offer as she had found a better set for less money. Can Prescott still accept Wood's original offer? If Wood had put the offer in writing, could she have withdrawn it before the week was over?

• Yes Prescott can accept the offer; No, if Wood had written it down she could not withdraw the offer

• No Prescott can accept the offer; No, if Wood had written it down she could not withdraw the offer because she is a merchant

• No Prescott can accept the offer; No, if Wood had written it down she could not withdraw the offer because of the $3,000 offered for the tools.

• No Prescott cannot accept the offer; Yes Wood could still withdraw the offer if it was written because Wood is not a merchant and no money was given for an option

Frank saw a wheelchair advertised in the paper for sale for $900. When he called Tom, the offeror who had bought it to use while he was recovering from a skiing accident, Tom said it had not yet been sold. Frank drove out to see it but found it needed work. So Frank offered $700. Tom seemed insulted and said he wasn't interested at that price. Frank left. About an hour later, he went back and found the wheelchair had not been sold. He then offered the $900 specified in the ad. However Tom refused to sell it to him. Frank became upset and sued to get the court to force Tom to sell it to him for $900. Will Tom have to do so? Why or why not?

• Yes, since the offer is printed on the newspaper it can be enforced.

• Yes, since he would have sold it to Frank if he wasn't insulted

• No, the price in the ad is an invitation to negotiate.

• No, Frank's insult gives Tom the right to not sell the wheelchair to him.

Gus walked into his local hardware store to buy exterior paint for his house. It was on sale for $35 a gallon. Gus wanted ot check around but didn't want to lose the chance to buy at the sale price. In response to Gus' request, the manager of the paint department wrote Gus a note stating, "Gus Almondson may buy up to 15 gallons of Old Dutch Exterior Grade Paint for $35 per gallon anytime within the next two weeks." The manager signed and dated the note. Is this offer binding?

• Yes, this is a firm offer from a merchant

• Yes, but putting the offer in writing was not necessary

• It would only be binding if Gus gives a down payment or buys an option

• No, a hardware store cannot create a firm offer

Phil was talking with Sharon about Opie, his Springer Spaniel dog. Phil explained that Opie has a strong personality, loves to snuggle up to people, likes to eat "people food," and is a good watchdog. Sharon liked Opie a lot and needed a dog. As she knew Phil needed money at the moment, she offered him $1,000 for Opie. Phil said, "It's a deal but I have to take him with me on vacation, we can exchange when I return." Is there a contract between Phil and Sharon for the sale of Opie?

• Yes, Phil accepted Sharon's offer

• No, this contract needs to be written and signed

• No, Phil altered the terms of the offer, thus creating a counteroffer

• No, $1,000 is not enough money for a dog

Blake offers to sell Poe a copy of Lord Byron's first edition of poetry for $22,000 and specifies the acceptance has to be in writing, accompanied by a check for the required amount, and delivered by certified mail. Poe follows the offer's instructions exactly and mails the certified letter at 3pm on April 1. However, at 9am on April 1, Blake accepted an offer of $30,000 from Edgar. He then mailed a revocation of his offer to Poe at 1pm the same day. The revocation arrived at Poe's address at noon on April 2. Which contract will be upheld by the courts?

• The contract with Poe will be upheld because the offer was made to Poe first

• The contract with Poe will be upheld because acceptance is effective upon mailing, whereas revocation is only effective upon receipt.

• The contract with the Edgar will be upheld because the deal was made before Poe mailed his acceptance.

• The contract with Edgar will be upheld because it is for more money.