ACCT 315 Exam 3 (CH 15,16,16,18,23,28)

Rita contracts to work for Social Media Corporation (SMC) during April for $4,500. On March 31, SMC cancels the contract. Rita declines a similar job with Tech Talk, Inc., which would have paid $3,500. Rita files a suit against SMC. As compensatory damages, Rita can recover

$1,000

To cater a holiday banquet, Food Service LLC agrees to buy one hundred pumpkin pies from Great Desserts Inc. To be enforceable, the agreement must be in writing if the pies cost at least

$500

Agri Products Inc., a U.S. firm, signs a contract with Bao Ltd., a Chinese firm, to distribute Agri's products in China. The most likely reason for this deal is

China represents a substantial market for Agri.

City Delivery, Inc., enters into a contract to deliver furniture to Damien's house with payment due on July 4. On July 4, Damien's bank is closed, and for this reason, he claims that he cannot pay on time. In this situation

Damien is in breach.

Daredevil Rides Inc. owes debts to Equipment Company and Food Supplies, Inc. Equipment orally agrees to assume Daredevil's debt to Food to prevent the concessionaire from filing a suit against Daredevil. This agreement is enforceable by

Daredevil, Equipment, or Food

Fred agrees to assume a debt owed by Guitars Inc. to Home Bank. The agreement is not in writing. To be enforceable under the "main purpose" rule, the promise must be for the benefit of

Fred.

Heber, Irma, and Jon apply to work for Kitchen Chicken Inc. in Louisiana. These individuals' eligibility to work must be verified by

Kitchen Chicken.

Under the Export Trading Company Act, U.S. banks are

Under the Export Trading Company Act, U.S. banks are

Burger Heaven, a U.S. firm, makes a deal with a Canadian firm, Donny's Diners, that allows Donny's to use Burger Heaven's trade name in Canada in return for a fee. This is

a license.

Hardware Store Company and Indestructible Tools Inc. sign a written contract for a sale of goods. To be enforceable, this written contract must include

a quantity term, such as "50 hammers" or "100 boxes of assorted nails."

The government of Japan sets a limit on the amount of rice that can be imported from the United States. This is

a quota.

Renew Turf Inc. enters into a contract with Sports Park to provide surface material for Sports Park's baseball fields by a certain date. The contract specifies an amount to be paid if Renew breaches the deal. This clause is enforceable if the amount is

a reasonable estimate of the loss on the breach.

Restful Hotel Corporation, a U.S. firm, establishes a wholly owned subsidiary in Singapore. As a parent corporation, with respect to the subsidiary, Restful retains complete ownership of

all of the facilities in Singapore.

Discharging a contract by executing a new agreement with performance different from what was originally promised is

an accord and satisfaction.

Consolidated Corporation, a U.S. firm, wishes to participate, but limit its involvement, in Middle Eastern markets. Consolidated empowers Doha Ltd., an Egyptian firm, to enter into contracts in certain countries on behalf of Consolidated. This is

an agency relationship.

Builders Corporation files a suit against Concrete Company to enforce a written contract. If the court finds that the parties intended the contract to be the final statement of their agreement, parol evidence can be admitted to prove

an orally agreed-on condition.

Emil enters into a contract to buy Foley's cultivated bottomland if County AgriCredit will lend Emil the funds to pay for the land. Emil's duty to perform is

conditional

Don enters into a contract to buy Ezra's office building for a certain price subject to an appraiser's evaluation that the structure's condition is not substandard. If the appraiser deems the condition to be substandard, the parties' obligations will be

discharged.

Fern, who owns and operates Garden Farm, agrees to sell Harvest Grocery a minimum quantity of fresh fruits and vegetables every week for three months. If bad weather destroys Fern's crops, the obligation to deliver produce to Harvest is

discharged.

Debt Collection Service enters into a contract to employ Emma as a billing manager for two years. During the first year, Emma is often absent without explanation and when present fails to adequately do her job. This

discharges the employer from the contract.

Juan and Isidro enter into a contract to buy, restore, and reopen the Coastal Park Carousel. Before either party begins to perform, they make a new agreement to rescind their deal. This

discharges the original contract.

Inez hires Josh to paint her portrait to her satisfaction for $4,000. When Josh finishes the portrait, Inez announces that she is not satisfied with it. Inez

does not have to pay Josh.

Lew and Mavis enter into a contract for the clearing and plowing of Mavis's 350-acre tract for which she agrees to pay $1,000. Lew transfers his duty under this contract to Nye. With respect to the duties under the original contract, this transfer

does not relieve Lew of the potential obligation to perform.

Oscar orally agrees with Poppy's Pizza to provide delivery service to its customers for nine months. This contract is enforceable by

either Oscar or Poppy's.

Home Furnishing Store's contract for a sale of its appliances provides that the only remedy for breach is replacement, repair, or refund of the purchase price. With respect to this provision, on a customer's suit for breach, a court is most likely to

enforce it

Beau borrows $15,000 from Credit Center to buy a car. The lender assigns the right to receive the loan payments to Debt Collections Inc. If Beau does not pay the debt, the assignee can

enforce the payment in court.

Jan is obligated under a contract to pay Katie $500. Katie assigns the right to receive the funds to Loren. If Jan does not pay the debt, the obligee can

enforce the payment in court.

Gobi is an employee of Haz-Mat, Inc. He refuses a transfer to a Haz-Mat department in which several employees suffered serious injuries from exposure to hazardous materials. Under the Occupational Safety and Health Act, Gobi may be

entitled to protection from discharge.

Bagels Bakery enters into a contract with Cineplex for discounted tickets for Bagels's employees. When Cineplex does not provide the tickets, Bagels enters into a contract with DigiMovies for the same service at a lower price. In a suit for breach, Bagels might be awarded nominal damages to

establish, as a matter of principle, that Cineplex acted wrongfully.

Habitable Premises Corporation, a U.S. firm, owns property in India. The government of India seizes the property for a proper public purpose and pays the firm just compensation. This is

expropriation.

Federal overtime provisions apply only after a covered employee works more than

forty hours in a week

Beck and Cary enter into a contract under which Beck agrees to cater Cary's wedding. The contract expressly prohibits any transfer of rights without the assignee's consent. Cary may transfer the right to receive Beck's services to her sister Dian

if Beck consents

The rights under an insurance policy can normally be assigned

if the assignment involves only a payment of benefits.

Investment Corporation wants to monitor business communications on phones that the employer provides to the employees. The employer's best course of action to avoid liability under laws related to employee monitoring is to inform

its employees.

Metro County contracts with New Build Inc. to build a courthouse. New Build hires Odell to excavate the site. Odell's work damages adjacent properties. Metro files a suit against the excavator, who argues that the county is not named in his contract with New Build. Most likely, the court will hold Odell is

liable on the ground that Metro is an intended third party beneficiary.

Finance Accountants, P.A., is a private employer. In most circumstances, federal law generally prohibits Finance from subjecting its employees to

lie-detector tests.

After a union election campaign among the employees of Frozen Food Company, the Food Workers Union does not obtain a majority vote in the election. This most likely violates

no federal or state law

Demi, an accountant, and Engineers PA enter into a contract under which Demi agrees to perform audits for Engineers. Demi can delegate the duty to perform the audits to

no other party.

Rough Canyon Adventures Inc. and Swampcraft Inc. enter into an oral contract for Swampcraft's sale to Rough of five rafts for $2,000 each. Before Rough takes possession of the rafts, this contract is enforceable by

none of the choices

Build-It Construction LLC contracts to build a warehouse for Corporate Storage Inc. Corporate does not have to pay Build-It if the warehouse is not built. Their respective promises are

not conditioned

Lew tells a representative of Music Inc. that he will pay for Nora's trumpet if she does not. Lew does not secure any personal benefit for this promise. This promise is enforceable as a contract

only if it is in writing

Steel Mill Inc., employs five hundred workers. For the Occupational Safety and Health Administration, Steel must do all of the following except

pay employees higher wages for working in more dangerous areas.

Builders Inc. agrees to construct an office building for Commerce Center Corporation. The project proceeds according to plan, but before it is done, the buyer tells Builders to quit. In a suit for breach, Builders may recover

profits plus the costs incurred up to the time of the breach.

Armand orally agrees to pay Borges to seed and harvest a quarter of Armand's farm acreage for four planting seasons. After Borges prepares the land and plants the first crop, Armand says that the deal is off. Borges can most likely recover on a theory of

quasi contract.

Ziplines Inc. enters into a contract to employ Scot as a manager for two years. If Ziplines breaches the contract, Scot has a duty to

reduce the damages that Scot might otherwise suffer.

Good faith in collective bargaining between a union and an employer does not include

rejecting a proposal without offering a counterproposal.

Ivy orally agrees to buy a unique collection of sports memorabilia for $10,000 from Jess and sends $2,500 as an initial payment. When Ivy pays the rest of the price, Jess refuses to ship the collection. In a suit for breach, Ivy should seek

specific performance.

Lance enters into a contract to mow Mary's yard every week for the summer. Mary sells her house and yard to Nora, and assigns the right to receive Lance's services to Nora. Mary is

the assignor.

Retail LLC contracts with Paving Inc. to grade and pave a parking lot. The contract provides that it cannot be assigned without Retail's consent. Later, Paving assigns the contract to Roadwork Company without obtaining Retail's consent. Retail could most successfully argue that the contract cannot be assigned because

the contract prohibits assignment.

Foundation Construction Company agrees to lay a foundation for Garth, but fails to finish the job. Garth hires Housing Projects Inc. to complete the work. In a suit for breach, Garth may recover from Foundation

the costs needed to complete construction

To create a valid delegation of duties requires

the delegator's expressed intent to make the delegation.

Coffee Company, a U.S. firm, owns property in the Dominican Republic. When the Dominican government seizes the property, the company asks a U.S. court to order the property's return. The court rules that the Dominican Republic is exempt from the court's jurisdiction. This is an application of

the doctrine of sovereign immunity

A novation requires

the existence of a previous, valid obligation.

Suisse Internationale, a Swiss maker of athletic equipment, enters into a price fixing agreement with Total World Sports, a U.S. wholesaler of Suisse's products. U.S. courts will apply U.S. antitrust laws if

the price fixing has a substantial effect on U.S. commerce.

Ben makes an appointment for a $50 haircut, buys a bike for $250, and agrees to work for Coding Associates for one year for $5,000 per month, starting at the beginning of next month. To be enforceable, a writing is required for

the purchase.

Global Project, a U.S. firm, owns property in Hong Kong. The government of China seizes the property. The firm claims that this is confiscation. The government claims that it is expropriation. The difference concerns

the purpose of the seizure and the payment of compensation.

Merl buys a tablet for $500, running shoes for $200, and a set of the Game of Crowns books for $100. To be enforceable as a contract, a writing is required for the purchase of

the tablet only

Salsa Inc. employs three hundred workers at four locations in two states. Under federal law, Salsa must provide each employee, during any twelve-month period, family or medical leave of

up to twelve weeks.

Sparkling Jewelers breaches its lease with Town Mall and vacates the premises six months before the end of the term. In some states, the mall would be required to

use reasonable means to find a new tenant.

Elin is thirteen years old. Under the Fair Labor Standards Act, she cannot

work in a hazardous occupation