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You enter an expensive restaurant and are seated by the hostess. A waiter brings you plates, knives, forks, napkins, and other set-ups for dinner, including bread and butter and ice water, all of which you partly consume.

When you read the menu, you realize that the prices far exceed what you can afford. You then make it clear that you do not intend to order a meal. What type of contract (obligation) do you have, if any?

What factors and contractual elements will you consider in assessing whether a contract was formed? What if, instead, you read the menu and place an order, but say nothing about agreement to pay.

Is there a contract? Also, assume there is fine print at the bottom of the menu that states: 20% gratuity charged. $20.00 cover charge per table.

If you ordered dinner but didn't see the fine print, what is the effect?

Does this change in the facts alter your conclusion regarding the scenario above? Why or why not? What key factors and elements are at play?

Business Economics, Economics

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