University:
Indiana University Bloomington
Course:
Financial and Managerial Accounting: Information for Decisions - John J. Wild
Academic year:

2024
Views:

180

Pages:

2
Author:

bratrochanter

1. PBC and Emerald Club: This case involved the NBA team, formerly the Seattle Supersonics. PBC assured 2007 season ticket holders of cost certainty and other benefits through the Emerald Club for the 2008–10 seasons, encouraging renewals despite rumors of a team relocation. When the team moved to Oklahoma City in 2008, Emerald Club members sued for breach of contract. The issue was whether PBC’s promotional material constituted a binding contract or was simply marketing. 2. Mesaros v. U.S. Mint: In 1985, the U.S. Mint offered limited-edition Statue of Liberty coins, promoting early orders to secure discounted prices. Mr. and Mrs. Mesaros submitted credit card and check payments. Due to unexpectedly high demand, all coins sold out before the Mint could process all credit card orders. The Mesaros argued the Mint’s promotional materials constituted an offer, creating a binding contract upon order submission. The case centered on whether the promotional material was an invitation to negotiate or an actual offer. 3. Trell and ScienceNOW: Trell, a professor, submitted a mathematical manuscript to ScienceNOW following a call for “news tips.” AAAS declined, citing unsuitability. Trell claimed the advertisement was an offer, arguing a binding contract arose when he submitted the manuscript. This raised questions on whether the language of the ad could reasonably be construed as an offer or merely an invitation for submissions. 4. Jeff’s Car Purchase: Jeff test-drove a car and secured an oral agreement from a salesman, Jake, to hold the vehicle until 8:00 p.m. so he could show it to his wife. Although Jake noted the promise in writing, it was unsigned. The dealership sold the car before the agreed time. This scenario tests whether the dealership could revoke the offer, given the unsigned nature of the agreement and its informal setting. 5. Congress and the Statue of Liberty Coin Act: This statute required the Treasury to mint a specific number of commemorative coins, which led to unprecedented demand. The Mint received overwhelming orders, exceeding available coins, particularly with delayed credit card processing. Questions arose about whether the Mint's order form constituted an enforceable offer to sell the coins. 6. eBay and Online Auctions: The text advises exploring when an online auction listing, like on eBay, constitutes a binding offer. Generally, listings are invitations to negotiate unless specific language guarantees sale terms upon the highest bid. 7. Jones’ Resale Offer: After purchasing Jeff's test-driven car, Jones agreed in writing to hold it for Jill. This raised the question of whether Jones, a nonmerchant, could revoke the offer, given it was a signed agreement. Each scenario illustrates complex questions about contract formation, particularly distinctions between offers, invitations to negotiate, and the effect of timing and formalities on contract enforceability.