287T KEY Midterm - Fall96



BA 287T Mid-Term Exam Key
Professor Murray
Fall 1996
November 5, 1996

In this key, I will merely document the law, I will not fully develop all factual arguments or conclusions that one must make. Also, I will give extra points to good arguments that I have not considered. The grade distribution is listed below.

Grade Distribution.


Average		71

Median		72



76 and above: top 30%

60-75		middle 60%

59 and below	bottom 10%

Although I am not assigning a letter grade at this time, remember that the general guidelines for core courses is 30% As, 60% Bs, and 10% Cs or below. Emerson and I will generally follow these guidelines.

1. Denise v. Dallas Cowboys-- respondeat superior (15 points):
Denise's arguments: [10 points]

Cowboys' arguments: [5 points]
Basically that Moose was not acting in the scope of his employment-- he was going on a "frolic of his own" (from Joel v. Morison). The basic question boils down to the pervasiveness of the Cowboys' control over their players.

[In the real case, Mauk v. Wright (Pa. 1973), the jury found for Denise and the court refused to grant the defendant's (Washington Redskins) motion for a summary judgment.]
2. Was there an enforceable contract between Oscar and the Bank to lend the money necessary to complete the order from Hobby Lobby? [15 points]

Oscar's arguments:
1. Oral Contract existed [5 points]: offer= the June 1993 meeting with the loan officer to discuss loan; Oscar asked if the Bank could handle a $70,000 to $80,000 loan, loan officer replied no problem.

For an offer to be valid: 1) offeror (Oscar) must have serious intent to be bound; Does he? 2) terms of the offer must be reasonably certain; Are they? 3) Offer must be communicated to offeree (Bank)

Bank's arguments: No oral contract because the discussion between the Bank and Oscar was just preliminary negotiations. There was no discussion of the terms of the loan-- interest rate, loan amount, term of the loan-- therefore the "offer" was not reasonable certain. Finally, the loan officer did not reasonably believe that an offer was being made.

2. Promissory Estoppel: [10 points] Oscar will argue that he detrimentally relied on the Bank's promise to lend him the money for the Hobby Lobby order.

a) The Bank made a promise to lend him the money;
b) The Bank could reasonably expect Oscar to rely on the promise to his detriment;
c) Oscar does rely on the promise; and
d) Enforcement of the promise is necessary to avoid injustice.

Oscar will argue that the loan officer's statement of "No problem" was a promise to lend him enough money to complete the order.
Bank will argue that it was not a promise-- just start of preliminary negotiation-- too vague to enforce.
Oscar will argue that the bank knew he was relying on the loan to complete the order because they did loan approximately $19,000, that he was justified in relying on the promise, and it would be unjust not to require the agreement to be carried out.
The Bank will also argue that there is no injustice in this case because they could not reasonably expect Oscar to rely on something so vague.

[In the real case Werner v. Norwest Bank South Dakota (1993), the court held no express oral contract because the terms were too vague and no promissory estoppel because plaintiff was not justified in his reliance on the vague "promise" of the Bank]

3. Donna v. Ford Motor Co. (Strict Liability) [15 points]
In order for Donna to prevail on the grounds of strict liability, she must prove:

Ford will argue (in addition to above):
[In the real case, Daniell v. Ford Motor Co. (1984) the court granted summary judgment for Ford, finding that the trunk was not defective or unreasonably dangerous, and that the plaintiff was engaged in unforeseeable misuse.]

4. Don v. Jack & Virginia Breach of Contract? [20 points]

Don's arguments:

The defendants will argue that their June 3 letter was not an acceptance because it does not mirror the offer-- it was merely a counteroffer. Although they do send a $3000 check, they nevertheless want another copy of the contract and specifically state "We'll talk specifics later." Thus, they will argue, they never reached mutual assent to enter the contract.

c) Don will argue that the June 8 letter is merely a restatement of the contract that was reached on June 3 (adding the red secretary). And by moving into the house on June 15, knowing all the furniture was in the house, the defendant's knew that they had agreed to purchase all the furniture at the agreed price. [2 points]

The defendants will argue that the June 8 list was merely a price list for them to consult in deciding which items they wanted to purchase.

The Defendants arguments (in addition to the ones listed above): [5 points]

They will argue that since they never signed the April 30 contract, and their June 3 letter was merely a counteroffer. No reasonable person would have believed that the June 3 letter was an acceptance.

This outcome of this case is based on whether or not there was mutual assent to be bound.

[The actual case McAfee v. Brewer (1974) held that the June 3 letter was an acceptance of the April 30 offer.]

5. Mary Jane v. Bob Jones Ford- Intentional Infliction of Emotional Distress [15 points]

In order for Mary Jane to establish IIED against Zeiser (Z) and Gilmore (G), she must prove: [10 points]

Z and G will argue that they were merely acting as reasonable employees in trying to get the car back-- anyone would be upset
[In the real case, LaBrier v. Anheuser Ford (1981) the court held the defendant's conduct to be extreme and outrageous]

Bob Jones Ford Liability: [5 points] Plaintiff must prove that the employees were acting within the scope of employment and the intentional tort was as a result of the employer's business activities. In this case if the actions of Z and G were IIED, then Bob Jones Ford is liable because they were acting for the company.


6. George v. Buster-- Negligence [20 points]:
George must prove: