12-1,12-2,12-5,12-7,12-8

Problems 12-1. Unilateral Contract. Rocky Mountain Races, Inc., sponsors the Pioneer Trail Ultramarathon," with an adver- tised first prize of $10,000. The rules require the competitors to run one hundred miles from the floor of Blackwater Can- yon to the top of Pinnacle Mountain. The rules also provide that Rocky reserves the right to change the terms of the race at any time. Monica enters the race and is declared the win- ner. Rocky offers her a prize of $1,000 instead of $10,000. Did Rocky and Monica have a contract? Explain. (See An Overview of Contract Law.) 12-2. Preexisting Duty. Tabor is a buyer of file cabinets manufactured by Martin. Martin's contract with Tabor calls for delivery of fifty file cabinets at $40 per cabinet in five equal installments. After delivery of two installments (twenty cabi- nets), Martin informs Tabor that because of inflation, Martin fi is losing money. Martin will promise to deliver the remaining [ thirty cabinets only if Tabor will pay $50 per cabinet. Tabor 2 agrees in writing to do so. Discuss whether Martin can legally 12 collect the additional $100 on delivery to Tabor of the next M installment of ten cabinets. (See Consideration.) m. - 12-5. Agreements That Lack Consideration. Arkansas- Missouri Forest Products, LLC (Ark-Mo), sells supplies to make wood pallets. Blue Chip Manufacturing (BCM) makes pallets. Mark Garnett, an owner of Ark-Mo, and Stuart Lerner, an owner of BCM, went into business together. Garnett and mt Lerner agreed that Ark-Mo would have a 30-percent owner- n- ship interest in their future projects. When Lerner formed en Blue Chip Recycling, LLC (BCR), to manage a pallet repair His- facility in California, however, he allocated only a 5-percent interest to Ark-Mo. Garnett objected. In a Telephone Deal," 200 Lerner then promised Garnett that Ark-Mo would receive a ined 30-percent interest in their future projects in the Midwest, Salary and Garnett agreed to forgo an ownership interest in BCR. 113 But when Blue Chip III, LLC (BC III), was formed to operate - gross a repair facility in the Midwest, Lerner told Garnett that he - could "was not getting anything." Ark-Mo filed a suit in a Missouri eceived state court against Lerner, alleging breach of contract. Was of con there consideration to support the Telephone Deal? Explain. ndefinite [Arkansas-Missouri Forest Products, LLC v. Lerner, 486 S.W.3d Technical 438 (Mo.App.E.D. 2016)] (See Consideration.) year 127. Online Acceptances. Airbnb, Inc., maintains a web- site that lists, advertises, and takes fees or commissions for property rentals posted on the site. To offer or book accom- modations on the site, a party must register and create an account. The sign-up screen states, By clicking 'Sign Up'... you confirm that you accept the Terms of Service (TOS). The TOS, which are hyperlinked, include a mandatory arbitration provision. Francesco Plazza registered with Airbnb and cre- ated an account but did not read the TOS. Later, Plazza filed a suit in a federal district court against Airbnb, alleging that the defendant was acting as an unlicensed real estate broker and committing deceptive trade practices in violation of New York state law. Airbnb filed a motion to compel arbitration, L. pursuant to the TOS. Can Plazza avoid arbitration? Explain. [Plazza v. Airbnb, Inc., 289 F.Supp.3d 537 (S.D.N.Y. 2018)] (See E-Contracts.) (a 128. Contracts Contrary to Public Policy. P.M. and C.M. (the "Ms") are married and live in Iowa. Unable to con- ceive their own child, they signed a contract with T.B., who, (b) in exchange for $13,000 and medical expenses, agreed to be r SA tu 264 Unit Three The Commercial Environment sperm and the "overturning," "unpredictable currents," "obstacles" in the impregnated with embryos fertilized with PM.'s water, and "drowning." The release clearly stated that her ova of an anonymous donor. T.B. agreed to carry the pregnancy signature discharged Arkansas Valley from liability for all to term, and she and her spouse, D.B., (the "Bs") promised to claims arising in connection with the trip. On the river, while hand over the baby at birth to the Ms. During the pregnancy attempting to maneuver around a rapid, the raft capsized. The the relations between the parties deteriorated. When the baby current swept Apolinar into a logjam where, despite efforts to was born, T.B. refused to honor the agreement to give up the save her, she drowned. Her son, Jesus Espinoza, Jr., filed a suit child. Meanwhile, genetic testing excluded T.B. and D.B. as in a federal district court against the rafting company, alleging the biological parents and established P.M. as the father. Iowa negligence. What are the arguments for and against enforcing exempts "surrogacy" from a state criminal statute that prohibits the release that Apolinar signed? Discuss. (Espinoza u Arkansas selling babies. There is no other state law on point. Is the con- Valley Adventures, LLC, 809 F.3d 1150 (10th Cir. 2016)] (See tract between the Ms and the Bs enforceable? Discuss. [PM. Legality.) T.B., 907 N.W.2d 522 (lowa 2018)] (See Legality.) 12-7. Online Acceptances. Airbnb, Inc., maintains a web 12-9. A Question of Ethics-The IDDR Approach and site that lists, advertises, and takes fees or commissions for Minors. Sley High Sports Nashville Operations, LLC oper- property rentals posted on the site. To offer or book accom- ated a trampoline park in Nashville, Tennessee. As the park, modations on the site, a party must register and create an during a dodgeball tournament. Jacob Blackwell, a minor, suf- account. The sign-up screen states, By clicking "Sign Up fered a torn tendon and a broken tibia. His mother, Crystal you confirm that you accept the Terms of Service" (TOS). The filed a suit on his behalf in a Tennessee state court against Sky TOS, which are hyperlinked, include a mandatory arbitration High, alleging negligence and seeking $500,000 to cover medi- provision. Francesco Plazza registered with Airbnb and cre- cal and other expenses. Sley High asserted that the claim was ated an account but did not read the TOS. Later, Plazza filed barred by a waiver of liability in a contract between the par a suit in a federal district court against Airbnb, alleging that ties, which the defendant asked the court to enforce. The waiver the defendant was acting as an unlicensed real estate broker released Sky High from liability for any reegligent acts or omis- and committing deceptive trade practices in violation of New sions." (Blackwell v. Sky High Sports Nashville Operations, York state law. Airbnb filed a motion to compel arbitration LLC, 523 S. W.3d 624 (Tenn. Ch.App. 2017)| (See Contrac- pursuant to the TOS. Can Plazza avoid arbitration? Explain. tual Capacity) (Plazza u Airbnb, Inc., 289 F.Supp.3d 537 (S.D.N.Y. 2018)] (See E-Contracts.) (a) Should Sky High offer a defense to the suit? What might 12-8. Contracts Contrary to Public Policy. P.M. and Sky High argue as a reason for enforcing the waiver? Use C.M. (the "Ms") are married and live in lowa. Unable to con- the IDDR approach to answer these questions, ceive their own child, they signed a contract with T.B., who, (b) Would it be unethical to allow Jacob to recover damages? in exchange for $13,000 and medical expenses, agreed to be Apply the IDDR approach to explain