Terry, an employee of Stan’s, is working in Stan’s warehouse. Terry sees that a large barrel is about to fall on Stan. Terry pushes Stan out of the way and saves him from harm. However, the barrel falls on Terry, causing him to be permanently disabled. Stan says: “You saved my life. I promise this company will pay your salary for the rest of your life.” Stan puts the promise in writing and pays Terry’s salary as promised. Years later, Stan dies and the executors of his estate refuse to continue paying Terry’s salary, arguing that there is no consideration supporting Stan’s promise to Terry. If Terry sues the estate for breach of contract, in most states he will most likely,

Larson Lexus, a new car dealer, runs the following newspaper advertisement: “Three 2016 Lexus LS-500s must go! $50,000 each! The first three customers who arrive at our dealership on Saturday, October 8 with this ad can buy one of these cars for $50,000!” Knowing that $50,000 is a very good price for an LS-500, Mike is the first customer to appear at the Larson lot on Saturday, October 8. He hands the ad to the Larson salesperson and says that he’d like to buy one of the LS-500s for $50,000. Is the dealership contractually bound to sell Mike the car at that price?

The State of Maryland agrees with the Ace Construction Company that Ace will do some repair work on a bridge. The agreement, however, does not specify the work to be done, the quality standards Ace must meet, or the time the job must be completed. Also, the agreement states an ambiguous formula for determining Ace’s compensation. Later, before either the company or the state has done anything, Ace backs out of the job. It is then sued by the state for breach of contract. Ace defends by arguing that the contract fails because it (or the offer) is indefinite. Which of the following is true?

Please remember to tear up your scratch paper before you submit.

You and Gary enter a contract where you will receive $1,000 if you tamper with a slot machine in the “Bye-bye Bucks Casino” in Las Vegas so that Gary can make it pay out a jackpot whenever he wants it to. Tampering with a slot machine is a crime. You perform your part of the contract, but Gary doesn’t pay. In your breach of contract suit against Gary, the court will:

Kyle sent Talisha a letter offering to sell Talisha his car. Talisha left the letter on her desk, where her roommate, Maggie, saw it. After reading the letter, Maggie wrote to Kyle and stated that she (Maggie) accepted his offer. Which of the following is true?

On November 1, 1990, Harry Hawk signed an agreement with Wings Aviation for five parachute jumps. He paid $500. The agreement he signed contained the following conspicuous, bold-faced clause: “EXEMPTION FROM LIABILITY exempts and releases Wings from any and all liability, claims, demands, actions or causes of action whatever arising out of any damage, loss or injury to while upon the premises of Wings or its aircraft or while participating in any of the activities contemplated by this agreement, when such loss, damage, or injury results from the NEGLIGENCE of Wings, its officers, agents, servants, employees, or lessors.” Harry had to initial the clause. He signed the agreement two months before his 18th birthday. He made one successful jump before his 18th birthday and three successful jumps after his 18th birthday. (Assume 18 is the age of majority for the state law governing the contract.) However, Harry’s fifth and last jump could only be characterized as “less than a success.” Harry’s parachute only partially opened due to the negligence maintenance by Wings and he was severely injured. After the accident, Harry wants to sue and asks you for advice.

There is an existing contract calling for Seller to deliver 1,000 widgets to Buyer. Buyer says to Seller, “I would like to buy 100 additional units at the same price.” Seller responds, “We promise to sell you the 100 extra units if we decide not to sell them to other customers.” Regarding only the sale of the extra 100 units:

Which of the following is true about the difference between express and implied warranties?

Fen pulls her car into a line for a car wash. Fen says nothing and her car is washed by the employees there. Fen then refuses to pay for the car wash, stating that there is no contract. In a subsequent lawsuit: