CONTRACTS MYA
PROFESSOR JANICE KOSEL
MIDTERM EXAM
MARCH 7, 200

INSTRUCTIONS

1. This exam consists of nine (9) pages.

2. You have three (3) hours to complete this exam. You may allocate your time as you wish.

3. This is a closed book exam.

4. The exam consists of two (2) parts: Using a # 2 pencil, darken the letter corresponding to the correct answer on the ParScore Form. If you change your answer, please be sure that your erasures are complete. The exam will be scored by a machine and any ambiguities will be counted as a wrong answer. 5. Write your exam number on your exam envelope, at the top of the exam question packet, and on the ParScore form. Also, write your exam number on the Blue Book. Do not use your name, student ID number, or Social Security Number on any exam materials.

6. At the conclusion of the exam, return all test materials to the exam envelope and submit it to the proctor.

Read, think and analyze before you begin to write.

Good luck!


Part II

Fannie purchased four personal seat licenses ("psl's") or the Faders as soon as the football team returned to Oakland. The psls were expensive but Fannie t ho ght they would be worth it. Each license gave her the opportunity to purchase season tickets to Faders games and, god willing, playoff games. Moreover, each psi owner was promised a chance to purchase Super Bowl tickets-if the Faders ever got there.

Over the seven years the Faders played in Oakland, m ny psi owners stopped renewing their annual licenses. There were only 15,000 psl owners left when the unbelievable happened-in January 2003 the Faders won their division and made it to the Super Bowl.

Each of the competing teams was allocated 15,000 tickets. As was the custom, the Faders' opponent notified their season ticket holders by letter three weeks in advance of the Super Bowl game if they had won a raffle giving them a chance to purchase tickets Indeed, three of the four playoff teams followed this procedure. Only the Faders did not because the' management did not want to lose mailing costs of $5,000 in the event the Faders failed to make it to the Super Bowl.

As a result, notification of Faders fans was a real nightmare. Starting six days before the big event, the Faders hired two people to telephone winning psl owners and notify them of their right to purchase Super Bowl tickets. Faders management allocated only 1,000 of the 15,000 tickets to psl owners; the remaining 14,000 were reserved for the family an friends of team management.

Fannie was ecstatic when she came home from work four days before the Super Bowl and her caller ID listed a phone call-and hang-up-from the Faders. Fannie had already booked an airline ticket ($600) and hotel suite ($1,200) for Super Bowl weekend because she was sure she would be able to get a ticket. The next morning at 7:00 a.m. she stood in line for three hours to buy her ticket. Unfortunately, when she reached the head of the line, there was no ticket waiting for her. The ticket representative explained that initially she had been selected in a ticket lottery, but when she didn't answer her phone, the caller simply dropped down to the next name on the list.

Fannie went to San Diego and watched the game in a sports bar. She couldn't afford to buy a ticket. The face value of each ticket was $400 but they were selling through ticket brokers and on the Internet for at least $2,000 each.

The game itself was a horror. But Fannie thinks the Faders treatment of loyal season ticket holders was an outrage. When she complained to management, they told her that psl holders had no contractual rights to Super Bowl tickets-simply a chance. Allowing 1,000 psl owners to purchase tickets was a magnanimous gesture by the team to fans; management could select the lucky psl owners in any manner it chose.

Fannie plans to sue the Faders. She wants to recover t e expenses of her trip, compensation for emotional distress and punitive damages. She also wants to cancel her psl. Advise Fannie.

Note: This is a fictional account. Any resemblance to any person living or dead is simply coincidence.


End of Exam