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Question 1- Multiple choice

April and Ann are residents of the Kunduri Kingdom. The Kunduri Kingdom is a parliamentary constitutional monarchy reigned over by King Dutt The First. Its legislators are quite lazy and not one statute has been passed. As a result, the Kunduri Kingdom operates on the basis of strict common law - that is, judge made concepts and principles through holdings in cases.

April and Ann walk into a bar. April ordered a bottle of ginger beer for Ann. After consuming some of it, Ann discovered part of a decomposed snail at the bottom of her bottle. Ann became very ill as a result of drinking the contaminated beverage. Ann plans on suing based on contract and asks you for legal advice. What do you say?

	A.	Ann is unable to sue the bar and the manufacturer in contract because she lacks privity. She may be able to sue in negligence because the manufacturer owed Ann a duty of care under the reasonable foreseeability test.
	B.	Ann is unable to sue in contract because she lacks privity and she is unable to sue in tort because neither the bar nor the manufacturer owe her a duty of care. She must hope parliament passes a consumer protection statute.
	C.	Ann is able to sue in contract because she has privity of contract with the bar. She has no privity with the ginger beer manufacturer and cannot sue in negligence because neither the manufacturer nor the bar owed her a duty of care.
		D. Ann is able to sue in contract although she lacks privity with both the bar and the manufacturer under the Kunduri Kingdoms consumer protection statutes. question 2:\ Carbolic Smoke Ball Company manufactured a product that it claimed would protect users from the flu. They offered $100 to anyone who used their product as prescribed and still contracted the flu, and stated in an advertisement that $1,000 had been deposited in the Bank of Nova Scotia, Main Street, which showed their sincerity in the matter. Holly used the product and still got the flu. She claimed $100 from the company. The company reneged, stating that the advertisement was an advertising puff that merely indicated enthusiasm for the product. Holly sued for breach of contract. The court will find for: A. Holly, because merchants are never allowed to make exaggerated claims. B. Carbolic Smoke Ball Company because Holly should have sued in tort and not in contract after getting the flu. C. Carbolic Smoke Ball Company because the advertisement was in the nature of a puff. D. Holly, because she subjectively believed the advertisement to be a serious offer. E. Holly, because a reasonable person seeing that $1,000 had been placed in a bank would view the advertisement as a serious offer.

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