1. Computers, Inc. (Computers) and Management Enterprises Company (Management) agreed that Computers would sell Management its computing business, including the land on which the business was situated, for $600,000. Both Computers and Management knew at the time the contract was formed that the business and land were actually worth $1,000,000. Is this a valid enforceable sales contract?

A. No, because Computers would not have agreed to sell the business for 40% less than its value unless it was under duress by Management to sell.

B. No, because $600,000 is not valid consideration for a business worth $1,000,000.

C. Yes, provided the contract was in accordance with state statutory law that permits real estate sales for 40% or more below market value.

D. Yes, provided the contract was in writing, in accordance with the Statute of Frauds, and the parties freely consented.

2. Accounting Temps, Inc. (Temps) has 50 employees who work in offices on two floors of Temps’ business office building. There are no elevators in the building. Taylor, a Temps employee for three years, has an office on the second floor. Following a fall, Taylor has a permanent leg injury and difficulty walking up and down stairs. Taylor requested to be moved to a first floor office, but Temps stated there is no space available on the first floor and that it would be unfair to move someone else from a first floor office because all employees on the first floor have seniority over Taylor. Temps promised to move Taylor when a first floor office becomes available. In the meantime, Temps offered to have another employee help Taylor up and down the stairs to the second floor daily.

Is Temps handling the situation properly?

A. Yes, Temps is required to make reasonable accommodation for Taylor, and has done so by promising to move Taylor to a first floor office as soon as possible, and by offering to help Taylor on the stairs daily.

B. Yes, Temps is required to make “reasonable accommodation” for Taylor, but not at the inconvenience of other employees who might have to move offices.

C. No, Temps should immediately move Taylor to a first floor office or find temporary first floor office space until permanent office space is available on the first floor.

D. No, Temps should install an elevator to the second floor if first floor office space is available.