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City College of San Francisco Disputed Debt Business Law Questions

1. Alan purchased shoes from Barbara on open account. Barbara sent Alan a bill for $10,000. Alan wrote back that 200 pairs of the shoes were defective and offered to pay $6,000 and give Barbara his promissory note for $1,000. Barbara accepted the offer, and Alan sent his check for $6,000 and his note in accordance with the agreement. Barbara cashed the check, collected on the note, and one month later sued Alan for $3,000. Is Barbara bound by her acceptance of the offer? Please explain.

Make sure you answer question 1 with care. If you do not answer question 1, you will not receive credit for question 2 – 8. Please indicate whether the answers to the questions below are true or false. You need not explain your answers and do not include the question with your answer.

2. Andria, an attorney, has a personal injury case which is set for trial next week. She needs a good doctor to testify on behalf of her client, so she contacts Dr. Wood who agrees to testify on behalf of Andria’s client at the trial. In return for Dr. Wood’s testimony, Andria agrees to pay Dr. Wood $10,000 if they win the case, and $5,000 if they lose. Dr. Wood agrees. The agreement between Andria and Dr. Wood is unenforceable.

3. A covenant not to compete is a type of restraint of trade that courts today will enforce under certain circumstances.

4. Dana gives care to Marnie’s dog when Dana finds Marnie’s dog ill on the side of the road. After Marnie locates her dog, Marnie promises to reimburse Dana for the cost of treating the dog. Marnie’s promise is binding, because there is a bargained-for-exchange.

5. The Abbot Corporation contracts with the Baker Corporation to sell to Baker its entire production. After signing the agreement, Abbot can increase its production from one shift to two shifts and Baker will have to buy all of the doubled production.


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