1. Tech Performance, Inc., completes programming and other tech services for Uno IT Products Corporation. When Uno’s computer system crashes, it loses $500,000 worth of business and pays $100,000 to have the system reprogrammed. Uno IT announces to the media that the crash was due to Tech Performance’s incompetence and files a complaint in a federal court against the firm. What are Tech Performance’s options in response? (25 Points)
2. Dixie, a driver for Express Delivery Company, leaves the truck’s motor running in neutral and carelessly forgets to set the parking brake while she makes a delivery. The truck rolls and crashes into a nearby gas station pump, igniting a fire that spreads quickly to a construction site a block away. A burned wall collapses onto a crane, which falls on Fazio, a bystander, and injures him. What must Fazio show to recover damages from Express Delivery? (25 Points)
3. Lakeside Resort hires Micheline to act as its agent to buy a 1,000-acre waterfront tract of land from Nabil for $1,000 per acre. Lakeside does not want Nabil to know that it is the principal or that Micheline is its agent. Lakeside wants the land for a new marina, and believes that Nabil may not sell the land for that purpose or may demand a premium price. Micheline makes the purchase, signing only her name on the contract as the buyer and not disclosing to Nabil the agency relationship. Lakeside gives Micheline the amount to pay for the land, but she absconds with the funds. Nabil soon learns of Lakeside’s identity. Can Nabil enforce the contract against Lakeside? Why or why not? Against Micheline? Why or why not? (25 Points)
4. The Pennsylvania Consumer Protection Agency (PCPA) investigates the marketing practices of Respond Now!, Inc. The PCPA serves a subpoena on Respond Now!, ordering the firm to provide certain business records, including its marketing agreements with other companies. Respond Now! refuses to comply with the subpoena. On what is the company most likely basing its refusal? Is a court likely to support this position? Why or why not? (25 Points)
5. Chris promises Doreen $40,000 if she graduates from Eagle College. Doreen enrolls in Eagle, attends full-time for four years, and graduates. When Doreen asks Chris for $40,000, Chris says, “I don’t remember promising you $40,000. But if there was a promise, it’s not enforceable, because we didn’t bargain for it. And even if there was a promise that would otherwise be enforceable, I revoke it now.” Can Doreen enforce Chris’s “promise”? Why or why not? (25 Points)
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