Maker manufactures printing presses. News, a publisher of a local newspaper, had decided to purchase new presses. Rep, a representative of Maker, met with Boss, the president of News, to describe the advantages of Maker's new press. Rep also drew rough plans of the alterations that would be required in the News pressroom to accommodate the new presses, including additional floor space and new electrical installations, and left the plans with Boss. On December 1, Boss received a letter signed by Seller, a member of Maker's sales staff, offering to sell the required number of presses at a cost of $2.4 million. The offer contained provisions relating to the delivery schedule, warranties, and payment terms, but did not specify a particular mode of acceptance of the offer. Boss immediately decided to accept the offer, and telephoned Seller's office. Seller was out of town, and Boss left the following message: "Looks good. I'm sold. Call me when you get back so we can discuss details." Boss next telephoned Pressco and rejected an outstanding offer by Pressco to sell presses to News similar to those offered by Maker. Using the rough plans drawn by Rep, Boss also directed that work begin on the necessary pressroom renovations. By December 4, a wall had been demolished in the pressroom and a contract had been signed for the new electrical installations. On December 5, the President of the United States announced a ban on imports of foreign computerized heavy equipment. This removed from the American market a foreign manufacturer that had been the only competitor of Maker and Pressco. That afternoon, Boss received a telegram from Maker stating, "All outstanding offers are withdrawn." In a subsequent telephone conversation, Seller told Boss that Maker would not deliver the presses for less than $2.9 million. A telephone call by Boss to Pressco revealed that Pressco's entire output had been sold to another buyer. ASSIGNMENT: Fully and legally discuss the following:

1. Was Maker obligated to sell the presses to News for $2.4 million? Why/why not? and

2. Assume Maker was so obligated. What are News' rights and remedies against Maker? Why/why not?