Lulene makes the best lemon meringue pies in Mississippi. So Ellen, who owns Ellen's Old Fashion Cafe, contracts with Lulene to buy 50 pies per week at the price of $5.00 per pie. Although Lulene took a class in business law, she forgot to get her agreement with Ellen in writing. Lulene and Ellen agreed during a chat. Lulene said: "I will supply you with lemon meringue pies for however long you
want them at $5.00 per pie." Ellen said: "That's great, I'll take them." Both women were pleased. Soon Lulene had a problem. Between a hurricane in Florida and brush fires in California, the price of lemons increased by 200%. Now, instead of the $5.00 per pie price she intended to charge Ellen, she feels she must charge $7.00 per pie to make a little profit. Lulene calls Ellen with the bad news and Ellen has a fit. She tells Lulene that's too bad, but the deal is off. Lulene says, "That's what you think!" and goes to see Amanda, her attorney. Instead of meeting to discuss the deal, Lulene had sent Ellen a letter offering to sell her lemon pies for $5.00 per pie for as long as Ellen likes. Lulene says she must receive Ellen's answer by May 10 . On May 8 Ellen signs a letter accepting the offer and mails it. On May 9 Lulene calls to withdraw her offer. Ellen says it's too late, she has accepted. Who wins?
a. Ellen wins, because it was effective when sent
b. Ellen wins, based on the faulty communication rule c. Lulene wins, because she revoked before receipt
d. Lulene wins, based on the precedent set in the Hixson case e. Lulene wins based on the UCC
a
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What is an organization-level incentive plan that is intended to motivate employees to align their activities with the organization's goals?
A. profit sharing B. Scanlon plan C. group bonus D. merit pay E. gainsharing
Answer the following statements true (T) or false (F)
1. An imprest system is a way to account for petty cash by maintaining a constant balance in the petty cash account. 2. The imprest system requires that the petty cash box contain cash and petty cash tickets that total the amount of the imprest balance only at the end of each month. 3. The journal entry to replenish a petty cash fund includes a debit to the Petty Cash account and a credit to the proper expense account(s). 4. When replenishing the petty cash fund, the company debits the Petty Cash account and credits the Cash account. 5. When replenishing the petty cash fund, the company debits either the associated expense incurred or the asset purchased with the fund.
Which of the following is most likely a want rather than a need?
A. clothing B. transportation C. steak D. shelter E. water
Bob, the tax accountant, promises to do Marge's individual federal, state, local, and gift taxes for the year. He completes all but the gift taxes. Under the substantial performance doctrine, Marge will:
a. not have to pay Bob. b. not have to accept the work. c. have to pay Bob for all but the gift taxes. d. have to pay Bob the contract price.