Question

FACTS for Questions 10 and 11:

Jay faints while visiting an amusement park, and hits his head on a wooden bench. Management of the amusement park calls an ambulance, which takes about 10 minutes to pick Jay up and then take him to the hospital for evaluation. During this 10 minutes time, Jay’s friend Billy-Bob has Jay sign a form, to sell his very valuable antique car (worth about $50,000) to Billy-Bob for only $2,000. Billy-Bob takes the car keys out of Jay’s coat, and drives off with the car. While Jay is in the ambulance, he becomes unconscious, and is admitted to the hospital with a brain concussion. The next day, Jay wakes up in the hospital, but remembers nothing about where his car is, or why he has $2,000 in his pocket! Jay is discharged from the hospital, and has to take a taxi home. Two days later, he receives a bill from the hospital for $10,000 for “services rendered” to him.

10. Does Jay have to pay the hospital?

A. No – because Jay never entered into a services contract with the hospital.

B. Yes – this is an example of a contract “implied by law” because Jay was unconscious at the time he was brought in and treated.

11. Does Jay lose his car to Billy-Bob?

Jay has a binding contract with Billy-Bob.

Jay should be able to get out of this “agreement” based on “illegality”

Jay should be able to get out of this “agreement” based on “lack of proper form”

Jay should be able to get out of this “agreement” based on “lack of competency”

12. An offer can be terminated by:

A) revocation by the offeror

B) rejection by the offeror

C) counter-offer by the offeror

D) all of the above

E) only two of the above

Answer 1

10. Yes Jay need to pay bill because he was in state of concussion and it was the need of the hour to give him medical facilities as fast as they can. So the correct option is B. Yes – this is an example of a contract “implied by law” because Jay was unconscious at the time he was brought in and treated.

11. It is unethical work done by his friend Billy-Bob and Jay can get his car back as he was in unconscious state when his friend forced him to sign as it was not in proper form with the help of witness he should be able to get out of this agreement. Hence the correct option is Jay should be able to get out of this “agreement” based on “lack of proper form”

12.Offers may be terminated in any one of the following ways: Revocation of the offer by the offeror; counteroffer by offeree; rejection of offer by offeree; lapse of time; death or disability of either party; or performance of the contract becomes illegal after the offer is made. So the correct option is D) all of the above