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In a word document, answer the following two essay questions in IRAC format and turn them in by November 25 at 5 pm.  Each IRAC should be approximately 1 page long. 

#1. You  manage a small bike shop and sell luxury bikes, some costing up to $2,000. A young man comes into the store and wants to buy a mountain bike for $1,200. He has the cash. You are very happy to sell it to him. He tells you that he is a high school student who is taking classes at a local university and needs the bike to make it to class, because he isn’t old enough to drive a car. He buys the bike and leaves the store.  Two years later, the young man comes into the shop and tells you that yesterday was his 18th birthday, and after drinking a great deal of alcohol, he rode his bike down Topanga Canyon and crashed into a large SUV. He hands you a piece of bent bike frame and states that this is all that was left of the bike when he went back to the accident scene this morning.  He asks for his $1,200 back and he now “desires to undo the contract.” Will you agree to the full refund? Why or why not?

#2. Peter and Mike are in a bar one day after a long day at work when Peter commented to Mike about how lucky he was to live out in the country, where it is quiet and relaxing, away from the noise and traffic of the big city.  Mike agreed that living on the farm was nice, however, he claimed he missed the nightlife of the big city. The two continued to talk and drink for hours, each consuming numerous alcoholic beverages. Later in the night, Mike said to Peter, “You want the country life and I want the city life, I’ll sell you my California farm for $50,000.” Peter said, “Yes! Amazing! I cannot wait to move.” The next day, Peter came up to Mike with proof that he had the money to buy the farm. Mike laughed and said, “You’ve got to be kidding, I’m not selling you my farm! My wife would be so mad if I sold the farm! I was so drunk last night. I don’t even remember that conversation!” If Peter tries to enforce the agreement, what factors will be considered in determining whether Mike was intoxicated? Also, what is the majority rule regarding contracts entered into while intoxicated?

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