Fact Pattern 10-1 Lulene Makes the Best Lemon Meringue Pies in Mississippi. So

question 171

Multiple Choice

Fact Pattern 10-1
Lulene makes the best lemon meringue pies in Mississippi. So Ellen, who owns Ellen's Old Fashion Cafe, contracts with Lulene to buy 50 pies per week at the price of $5.00 per pie.
Although Lulene took a class in business law, she forgot to get her agreement with Ellen in writing. Lulene and Ellen agreed during a chat. Lulene said: "I will supply you with lemon meringue pies for however long you want them at $5.00 per pie." Ellen said: "That's great, I'll take them." Both women were pleased.
Soon Lulene had a problem. Between a hurricane in Florida and brush fires in California, the price of lemons increased by 200%. Now, instead of the $5.00 per pie price she intended to charge Ellen, she feels she must charge $7.00 per pie to make a little profit.
Lulene calls Ellen with the bad news and Ellen has a fit. She tells Lulene that's too bad, but the deal is off. Lulene says, "That's what you think!" and goes to see Amanda, her attorney.
-Refer to Fact Pattern 10-1. Instead of meeting to discuss the deal, Lulene had sent Ellen a letter offering to sell her lemon pies for $5.00 per pie for as long as Ellen likes. Lulene says she must receive Ellen's answer by May 10. On May 8 Ellen signs a letter accepting the offer and mails it. On May 9 Lulene calls to withdraw her offer. Ellen says it's too late, she has accepted. Who wins?

• A) Ellen wins, because it was effective when sent
• B) Ellen wins, based on the faulty communication rule
• C) Lulene wins, because she revoked before receipt
• D) Lulene wins, based on the precedent set in the Hixson case
• E) Lulene wins based on the UCC

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Definitions:

Wagner Act

A foundational piece of US labor law that established the rights of employees to unionize, engage in collective bargaining, and take collective action, including strikes.

Collective Bargaining

The process of negotiation between employers and a group of employees aimed at agreements to regulate working conditions.

Strike

A collective action taken by employees refusing to work, aiming to gain concessions from their employer, typically related to wages, benefits, or working conditions.

Wrongful Acts

Actions or behaviors that are illegal or morally incorrect.