A Contracts hypo

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A Contracts hypo

Postby BDP » Wed Dec 07, 2011 4:12 pm

Ron Swanson enters into negotiations with Leslie Knope to purchase software that Ron can sell in is computer store. Leslie operates on “online marketplace” where business owners can purchase various computer hardware, software, etc. at wholesale or refer service work to for a commission.

Ron email Leslie the following: “I am interested in purchasing 10 copies your “parks and recreation” management software.”

Leslie replies, “absolutely, I am authorized to offer you the price of $100/per copy with a 10% discount on each copy you order after the fifth copy. If you order at least 10 you get 6 months of free user support.”

Ron replies to Leslie, “wow, 10% discount! I will take fifteen copies, provided you can include a year of free user support for the software. There is a high demand for this software so I will be grateful if we can act quickly on this” and provides his credit card number

Leslie responds “Great! Here are 15 codes to download the software from our website. If you can subscribe for our premium website membership, we can include that year of free user support.” Leslie charges Ron's card moments after sending this email.

Ron glances at this email, and sees the codes, and is happy, but fails to read the part about subscribing for the premium membership.

The next day Ron “packages” the codes and hangs them on display for customers to purchase.

Ron is happy with the purchase, and promptly tenders payment to Leslie. That same day Ann Perkins in considering purchasing one of the software codes to help her better manage her local park. Ron, the good salesman he is, tells Ann “hell, it even comes with a free year of customer support.” Ann decides to make the purchase. Ron pulls out his standard order form, fills it out for Ann’s code purchase, and has her sign it. The agreement has a merger clause stating that this “writing is a final expression of intent, all warranties express or otherwise are found in paragraph 17 on the reverse side of this document.”

Seven months later, Ann Perkins is having problems with the software, and calls Ron. Ron tells her, “no worries, it comes with free 1 year support, remember?!.” And gives Ann Perkins Leslie Knope’s customer support number. Ann calls the number, but is told the six months of free customer support has expired, and she can purchase a monthly subscription for the low price of $20/month.
Needless to say Ann feels like she has been taken, and goes to give Ron a piece of her mind. Ron, upon hearing this is equally upset. Both want to pursue legal action. What are the rights and obligations of Ron and Ann?

This is roughly rehashed form a practice exam given by the student association, so it may read funny. What are everyone's thoughts?

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