ACCT 315 Test #2

Sam, driving under the influence, causes a car accident that results in the death of Tanya. Sam is arrested and charged with a crime punishable by imprisonment for more than a year. This crime is

a felony.

Gwen is indebted to Home Loan Company for $75,000. Gwen agrees to pay, and Home Loan agrees to accept, a lesser amount than the lender originally claimed was owed. The performance of this agreement is

a satisfaction.

Red offers to pay Sara to deliver certain documents within thirty minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Red and Sara will have

a unilateral contract.

Cheri drives into Domestic Auto Service and asks to have a tire replaced on her car. After Domestic replaces the tire, but before Cheri pays for it, any contract between them is

executory.

Bruno buys and sells stocks and bonds. Bruno may be subject to penalties under the Racketeer Influenced and Corrupt Organizations Act

for the commission of securities fraud.

Without a legal framework of reasonably assured expectations within which to make plans, businesspersons would most reliably be able to count only on others'

good faith.

Kris buys Liz's house for $300,000, which is the fair market value of the house. If the contract is later disputed in court, the court is likely to declare Kris's consideration

legally sufficient.

Intoxicated, Efron enters a contract for the sale of his business, Freight Dispatch, to Gretel for less than its market value. This contract is enforceable if, at the time,

Efron understood the legal consequences.

Obie, a user of phone-apps.com's website, can download apps for free if he first clicks on "I accept" after viewing certain terms. This is

a contract that includes the terms.

Via the Internet, Britta enters false code into the computer control system of Chicken Company, a food maker, to alter the levels of ingredients so that consumers of the food become ill. Britta is

a cyberterrorist.

Data Inc. offers to provide certain services to Enterprise LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Enterprise accepts the written offer. Enterprise's best argument in favor of enforcement of the contract is

a unilateral mistake does not afford relief from a contract.

County Title Company processes information furnished by others to transfer title to real estate from Dale to Ezra. The furnished information is mistaken. The contract between Dale and Ezra may be rescinded

because the mistake is about a material fact.

Marketing Inc. offers to create a campaign to increase N'Ice Cream Inc.'s online business. N'Ice agrees to pay for the service. These parties have

an express contract.

Vicky asks Walt, a cobbler, to repair a pair of boots. There is no discussion of a price, and Vicky and Walt do not sign any documents. After the repair, Walt hands Vicky a bill. With respect to Vicky's obligation to pay the bill, this is

an implied contract.

The U.S. Department of Justice needs to have construction work done on a federal courthouse. The agency asks contractors to submit bids. This is

an invitation to submit offers, not an offer itself.

Caitlyn is a minor. As a minor, Caitlyn

all of the choices.

In selling a 300-acre tract to Organic Farm, Peyton tells the buyer that the land "will be worth twice as much by next year." This statement is not likely to support rescission of the contract because it is

an opinion.

Jade puts up a collection of sports memorabilia for bids on BuyBay, an Internet auction site. Khalil makes the highest bid and sends the payment, which Jade receives, but she does not send the collection. This is

cyber fraud.

Tracy is fifteen. In most states, for contractual purposes, Tracy would be considered a minor until she is

eighteen.

Insurance Company violates a state licensing statute when selling a policy to Jay, in whose state it is not licensed to sell insurance. As a member of the class of persons protected by the statute, Jay can

enforce the policy and recover from the insurer.

While sailboarding, Jolie is injured when Kirby carelessly crosses her path. Kirby's insurance company offers Jolie $50,000 to release Kirby from liability, and she accepts. Later, she learns that her injuries are more serious than she realized. The release is

enforceable.

Glen offers to sell Helen his iPad for $200. Under the mirror image rule, Helen's response will be considered an acceptance if the terms of the acceptance

exactly mirror those of the offer.

Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump

is the consideration that creates Kim's obligation to pay Leo.

Bud works at a Cheap Stuff Store from which, without authorization, he takes merchandise that he has not paid for home for his own use. This is

larceny.

Ed works for Family Dwellings Inc., an investment firm that buys, renovates, and rents foreclosed houses. Ed steals his employer's digital files to start his own competing business, Good Homes LLC. This is

larceny.

Sam offers Tiffany $1,000 for her collection of rare coins. She accepts. If a dispute arises, a court would likely

not question the adequacy of the consideration.

Posing as eBank, Frank e-mails Grace, asking her to update her credit-card information through a link in the e-mail. She clicks on the link and types in the data, which Frank promptly sells to Hector. This is

phishing.

Erica, a police officer, wants to search the offices of Debit & Credit, Accountants. She asks Judge Bern to issue a warrant. No warrant for a search can be issued without

probable cause.

Bob claims that Carla breached their contract for tutoring. Carla responds that she never intended to enter into a contract with Bob. The intent to enter into a contract is determined with reference to

the objective theory of contracts.

Susan enters into a contract with Trey to act as his personal sports trainer. If a dispute later arises, the court will interpret the contract according to

the parties' intent at the time they entered into the contract.

Jack enters into a contract with Kris, an unlicensed contractor. This contract may be enforceable if

the statute does not expressly affirm the barring of a contract's enforceability.

Sal enters into a contract with Trucking Company to work as a driver. Under the plain meaning rule, the court cannot consider any evidence not contained in the document if

the words in the contract appear clear.

Analytics LLC processes misinterpreted data furnished by Botched Services to propose a marketing plan for Clientele Inc. Analytics and Clientele are both ignorant of the mistaken data. Their contract can be rescinded on the basis of

a bilateral mistake.

The state of New York enacts a usury statute. With respect to different types of transactions, including ordinary loans, the purpose of the statute is to

set a maximum rate of interest.

Apps Inc. promises to give stock options to Belden, a creative coder, for processes he has already designed. This promise is

unenforceable.

Fresh Agro Inc. offers to deliver produce to Growers' Market for a certain price. Fresh's intent to extend an offer is determined by reference to Fresh's

words and actions.

Mel agrees to work as a freight broker for National Shipping Inc. In determining whether a contract has been formed, an element of prime importance is the parties'

intent.

Adam agrees in writing to pay Bob to damage Adam's car, which is fully insured. Bob damages the car, but Adam's insurer refuses to pay for the damage. In Adam and Bob's suit against each other for breach of contract, the court is most likely to

none of the choices.

An ad for the New Plays Festival asks playwrights to submit their work and "we might produce it for the world." Oded submits a play with a note that states, "I accept." Between the Festival and Oded, there is

none of the choices.

Jen promises to pay Kay $500 because "she does not have as much money as other people." Jen's promise is

not enforceable because Kay has not given consideration in return.

Ian goes to Jona for a portrait. Jona says that the work will be "perfect." When the portrait is finished, however, Ian thinks that it is "poor." With respect to breach of contract, Jona is

not liable, because "perfect" is an opinion.

Domestic Gas Company offers to sell Energy Ltd. a certain quantity of liquefied natural gas. If Energy sends an acceptance via Domestic's authorized mode of communication, it will be effective when it is

received.

Rafi offers to sell his sailboat, Sea Siren, to Tara for $50,000. Referring to the prices for similar vessels, Tara says, "I'll pay no more than $40,000." Rafi's offer is

terminated.

A speedy trial, a trial by jury, a public trial, and the right to confront witnesses are guaranteed by

the Sixth Amendment.

Ken, a real estate agent, assures Lily that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Lily buys the property and then discovers that the street has no more traffic than any other in its vicinity. Lily may recover damages for

the agent's fraudulent misrepresentation.

Floyd, a minor, misrepresents his age when entering into a contract to buy a car from Gas Hogs Inc. Floyd takes possession of the car, but makes no payments on the contract and tries to disaffirm it. Most likely, Gas Hogs can recover

the balance due on the contract.

Under a contract with Soybean Farms, Tai begins grading a terraced hillside for planting. Halfway through the project, Tai asks for $5,000 over the contract price, claiming an increase in the "cost of doing business." The farm agrees but later refuses to pay. The agreement to pay more is

unenforceable because Tai's performance was a preexisting duty.

National Trucking Company begins transporting crude for Oil Inc. under a contract for a stated amount per load. After six months, National demands an increase in the stated amount because ordinary business expenses have increased. Oil's agreement to pay the increased amount is

unenforceable due to the preexisting duty rule.

A lease between Mia and Niles for residential property contains an exculpatory clause. This clause is most likely

unenforceable.

Brick and Candy are in an auto accident. Brick offers Candy $20,000 if she promises not to pursue any legal claim against Brick arising out of the accident. Candy agrees. This agreement is

a release.

Vin admires Will's collection of coins. Vin asks, "Will you sell it?" This statement is

a request, not an offer.

Steel Mill Inc. makes an offer to Tom to enter into a contract to work as a mechanical engineer for a certain salary for one year subject to a five-year renewal based on his performance. Tom accepts the offer. This is a valid contract because it includes

an offer and an acceptance.

A misunderstanding concerning a basic assumption on which a contract is made will support the rescission of the deal if the mistake is

bilateral.

Beryl enters into a contract with Clay for a guided tour of Deep Canyon. Clay represents that he is an experienced, knowledgeable guide, when in reality he has never been in the canyon. Most likely, Beryl

can rescind the deal based on fraudulent misrepresentation.

The Racketeer Influenced and Corrupt Organizations Act has become an effective tool in attacking

certain white-collar crimes.

Restaurant Food Inc. intends to sell a certain quantity of beef for $1,000. In e-mail, however, the firm's sales representative mistakenly offers to sell the beef to Steak House for $100, Steak's manager immediately accepts. The seller

is bound to the deal at the offered price.

Don enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment many times over. When the results do not match this claim, Don learns that Eve does not have access to the algorithm and files a suit, alleging fraud. Don must show harm to

recover damages.

Gary owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respectively. Helen enters into a contract to buy "Gary's ATV" for $750. Gary believes, in good faith, that he is selling the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV. In this situation

the contract is not enforceable.

Intoxicated, Odell enters a contract for the sale of her business, Precision Machining, to Quentin for less than its market value. This contract is voidable if, at the time,

Quentin fraudulently induced Odell to become intoxicated.

Brie buys a subscription to music provided by Concerto, an online streaming service. Before gaining access, Brie must agree to a provision stating that she will not make and sell copies of the music. This provision is

a click-on agreement.