B Law 331 Exam 3 CH 10-15

Which of the following would be considered to be a misrepresentation of a material fact for purposes of establishing fraud in the inducement?

"this car has a new radiator"

__________ is a provision excusing one party from liability.

An exculpatory clause

Which of the following results in a void contract?

Duress by physical force.

In determining the meaning of a contract, which of the following will have first priority?

Express terms.

An offer is effective as soon as it is dispatched.

False

Fraud in the execution is a fairly common occurrence and involves defrauding a person as to the very nature of the contract.

False

George offered to paint Catherine's barn for $3,000. Catherine said she would accept the offer if George would paint the woodshed, too. At this point, they have made a valid and enforceable contract.

False

Pat told her friends that her car got 35 miles to the gallon in the city when in reality it only got 20 miles per gallon. When Pat decides to sell and one these friends decides to buy the car, Pat is under no duty to tell the correct figure unless asked.

False

The common law "mirror image" rule applies to an offer and the acceptance of that offer in a contract for the sale of goods.

False

Fourteen-year-old Marsha bought $120 worth of video games and DVDs at a local store, using her own money. Her parents insisted that she return the items and get her money back. Which of the following is true?

In a majority of jurisdictions, Marsha may get her money back even if she cannot return the merchandise.

​Jason's mother would like him to go to college, so in June he enrolls at the local university. He also quits his job and tells his mother his plans to take classes. His mother says, "I'm so happy that you are going to college that I want to pay for your books." Jason then sends her a bill for $485. Which of the following is true regarding his mother's promise?

It is unenforceable, because Jason had already enrolled in school when she made the statement that she wanted to pay for his books, and there is no consideration.

Jan promises Eli $4,000 for one of his original paintings on the condition that she receives $1 million from her mother's will.

Jan's promise is legally sufficient unless Jan knows she cannot inherit the $1 million.

Jill contracts to purchase Kevin's automobile under the belief that she can sell it at a profit to Linda, but after Jill has bought the car, she finds out that Linda isn't interested in buying it.

Jill cannot void the contract

The case in which the court held that a newspaper advertisement was an offer because it contained a promise of performance in definite terms in return for a requested act was:

Lefkowitz v. Great Minneapolis Surplus Store, Inc.

Which of the following is untrue with regard to the interpretation of contracts?

Technical terms will always be given technical meaning and language that has a commonly accepted meaning is always interpreted in accordance with that meaning.

If no time is stated, an offer will terminate automatically after a reasonable period of time.

True

​Aunt Ellie promises her 21-year-old nephew, Robbie, that she will pay him $100 if he quits smoking for a month. If Robbie does, is there a binding contract?

Yes, because Robbie gave up a legal right.

Don has an employment contract with Dunkirk Ice Cream. He sells ice cream and novelty ice cream products. He has nine children and doesn't make enough money, so he decides to see if another dairy will hire him, too. "After all," he reasons, "most stores carry four or five different brands." His employment contract prohibits him from competing. If Don sells for another dairy in addition to Dunkirk, will he be in trouble under his contract?

Yes, it is likely to be enforceable during employment.

Would a letter written after the execution of a contract and which contained agreements different from those in the written contract be admissible under the parol evidence rule?

Yes, it would be admissible, because it is subsequent to the written agreement.

In the Osprey L.L.C. v. Kelly-Moore Paint Co.,Inc. case, the Supreme Court of Oklahoma held that:

a faxed delivery of the written notice to renew the commercial lease was sufficient to exercise the renewal option of the lease.

In the Lesher v. Strid case, the court held that:

a mutual mistake of fact renders a contract voidable by the adversely affected party if the mistake is so fundamental that it frustrates the purpose of the contract.

The UCC provides that a merchant is bound to keep a written offer open for the stated period, but no longer than:

a reasonable time.

The remedies of damages and rescission are available for:

a. material fraudulent misrepresentation. b. negligent misrepresentation. c. innocent misrepresentation d. All of the above.

The sole nursing home in the county offers a long-term care agreement. The contract is prepared on a standard form and offers terms on a take-it-or-leave-it basis. Such a contract is called:

an adhesion contract.

​Alice says to Brian, "If I decide to buy a word processor next year, I will buy it from you." This is an example of:

an illusory promise

An ad in a newspaper or a circular describing goods and stating prices would generally be considered:

an invitation to buyers to make an offer to buy goods.

An undisputed debt is

an obligation that is not contested as to its existence or amount.

A contract that binds the offeror to keep an offer open for a specified period of time is known as:

an option contract

The parol evidence rule is:

another term for the exclusionary rule.

Contractual incapacity excuses a minor from an obligation to pay for necessaries.

false

In the Giannetti v. Cornillie case, the court found:

the modification of the mortgage amount was a material term, a counteroffer which rejected the original offer.

An arm's length transaction is one in which:

the parties are acting in their own self-interest.

James offers to sell four acres of land to Jennifer for $8,000 and further offers to keep the offer open for one month if Jennifer will pay him $100 for the privilege. Jennifer pays James $100. Which statement describes the payment of $100?

this created an option contract

A covenant not to compete is a type of restraint of trade that courts today will enforce under certain circumstances.

true

A disaffirmance must come either during a minor's minority or within a reasonable time after he reaches majorit

true

A mental condition that impairs a person's ability to act in a reasonable manner is one type of mental incompetence.

true

A modification of a preexisting contract occurs when the parties agree to change one or more of its terms.

true

A significant impediment to e-commerce has been the questionable enforceability of contracts entered into through electronic means, such as the Internet or e-mail, because of the writing requirements under contract and sales law.

true

An exculpatory clause attempts to excuse one from liability for her own tortious conduct.

true

Andria, an attorney, has a personal injury case which is set for trial next week. She needs a good doctor to testify on behalf of her client, so she contacts Dr. Wood who agrees to testify on behalf of Andria's client at the trial. In return for Dr. Wood's testimony, Andria agrees to pay Dr. Wood $10,000 if they win the case, and $5,000 if they lose. Dr. Wood agrees. The agreement between Andria and Dr. Wood is unenforceable.

true

At common law, a minor was a person who was under the age of twenty-one years.

true

At the marriage of her daughter, Lorna is given papers to sign, which the catering company says are the invoices for the food, service, and decorations. Underneath the invoices are a carbon and a contract of sale for a portion of the failing catering business. Lorna signs the papers; her signature is transferred to the sales contract. This is a void contract because it was entered by fraud in the execution.

true

The main purpose doctrine is a court-developed exception to the suretyship provision.

true

Anna is 88 years old and under the legal guardianship of her daughter. One day Anna receives a telephone call from a health insurance salesman and purchases a $400-a-month Medigap insurance policy. This contract is

void

Mary agrees to sew Georgia's prom dress for $50 plus costs. Georgia decides that she wants ruffles around the neck and calls Mary who says it will now cost $60. When Mary finishes the dress (with ruffles), Georgia must pay:

$60, since the modified agreement is supported by additional consideration

To be effective an offer must

- be sufficiently definite and certain. - be communicated to the offeree. - manifest an intent to enter into a contract.

Barbara, a wealthy widow, promises the pastor of her church that she will donate $30,000 to the church to help pay off its mortgage if the stewardship committee can obtain enough pledges for the balance of the $60,000 mortgage. Other pledges are obtained to pay off the mortgage, but now Barbara has changed her mind and plans to take an around-the-world cruise instead.

- there is no consideration for Barbara's promise to pay $30,000 - Under the Restatement of Contracts, Barbara's promise is enforceable

Which of the following is true with regard to an exculpatory clause?

-An exculpatory clause excuses one party from liability for her own tortuous conduct. -Where one party has a superior bargaining position that has enabled him to impose an exculpatory clause upon the other, the courts are inclined to nullify the provision. -An exculpatory clause may be unenforceable for unconscionability.

Which of the following is correct with regard to consideration?

-In a unilateral contract, a promise is exchanged for an act or forbearance to act. -In a bilateral contract, there is an exchange of promises.

Carlos owns a store in Polk County. His trade extends throughout River City, but not beyond the county limits. He sells his store to Virginia and as part of the transaction agrees not to engage in the same business anywhere within the state for a period of four years.

-The agreement is unreasonable. -The agreement unduly interferes with the interests of the public.

Ratification can occur in which of the following ways?

-Through express language. -As implied from conduct. -Through failure to make a timely disaffirmance.

A misrepresentation is material if:

-it would likely induce a reasonable person to enter into a transaction -the maker knows it would likely induce the other party to enter into the transaction.

Permissible lender's expenses, which would not be considered in determining the rate of interest under usury statutes, include ALL BUT WHICH of the following?

A charge to the borrower of $500 to investigate the borrower's credit, when it actually cost the lender $75.

Which of the following would generally be considered to be a revenue-raising licensing law?

A statute requiring that salespeople be licensed, but not establishing any educational or training requirements.

Cheryl, age 16, ordered a new dress to wear to the school prom. She has contracted to pay $500 when the dress arrives. Before the dress arrives, Cheryl decides that the dress is too expensive, and she now wishes to cancel the order.

Cheryl may disaffirm this executory contract because, while clothing in general is classified as a necessary, a new prom formal would probably not be classified as a necessary.

If Bill tells Sara that he will give her two days to decide if she wants to buy his car, he cannot sell it to anyone else during that time.

False

It is a fundamental policy that if the parties do not provide definite enough terms in their contracts, the courts will complete the contract in the court's best judgment.

False

Martha puts an ad in her company's newsletter saying she would pay $5,000 for a first-issue Grace Kelly stamp to the first person who accepted her offer. Martha decides she would rather go on a European vacation and changes her mind about investing in the stamp. Martha posts a sign at the executive water fountain saying the offer is no longer valid. A foreman from a branch plant takes a flight to the Chicago main office to see Martha and accept her offer. Martha does not owe him any money to pay for a breach of contract.

False

An executor personally promises to pay the debts of the decedent's widow. Under what circumstances would the creditor need to have a writing in order to enforce this promise?

If the promise is made to the creditor.

Which of the following promises does not have to be evidenced by a writing or be in proper electronic form in order to be enforceable?

Mindy's agreement with Susan to buy her bike for $400

A contract was made for 125 bales of cotton to arrive on a ship named "Peerless" from Bombay. Unbeknownst to either party to the contract, there were two ships named "Peerless," both of which were sailing from Bombay. One sailed in October and the other in December. The buyer had in mind the ship sailing in October, but the seller had in mind the ship sailing in December. Each party held his belief in good faith. When the goods failed to arrive on time, the buyer sued for breach of contract.

No contract exists due to mistake in meaning of terms.

Robert Briscoe is 17 years old. He lies to Bouyers Auto about his age in order to induce them to sell him a new pickup truck. Bouyers falls for this lie and sells him the pickup. Under the prevailing view, which of the following is correct?

Robert may disaffirm and get his money back

Steve purchases a four-wheel drive truck from Belk Auto Sales. Steve is only 17 years of age. He wrecks the vehicle and attempts to disaffirm the contract and have Belk repay him all that he has paid. In the majority of jurisdictions, what would happen?

Steve may simply return the vehicle and get his money

Charlene hears about a reward being offered by the local television station for information leading to the arrest and conviction of a local rapist. She supplies the requested information and the suspect is then arrested and convicted.

The offer by the television station was an offer made to the general public to enter into a unilateral contract, which offer Charlene has accepted.

Destruction of the subject matter has what effect on the offer?

The offer is terminated

​William agrees to drill a well up to 200-feet deep for John's rural cabin. The contract price is $3,000. After drilling 100 feet, William strikes solid granite rock. He talks to John and explains that this is highly unusual for the area and could not have been anticipated at the time of entering into the contract. He offers to get a special drill, but says it will cost him more money, so that he will be unable to complete the project for the agreed price. Because John is anxious to have the well, he agrees to pay William an additional $1,000 to complete the job. However, once the well is finished, he changes his mind and now says he will pay only the originally agreed-upon amount.

The parties have agreed to a substitute contract which discharges the original contract. John is obligated to pay the additional $1,000.

Which of the following would not be enforceable without additional consideration?

The settlement of an undisputed debt.

Jack has been in the business of selling carpeting for 20 years. He calls Bob, who is opening another branch of his furniture stores, and offers to sell him 100 yards of carpet at $20 per yard. Bob agrees and sends back the following letter confirming the deal: Dear Jack: As we discussed on the phone January 3, we accept your offer of 100 yards of Saxony "heather blue" carpeting at the rate of $20 per yard. We also reserve the right to purchase any additional yardage we need to carpet our other showroom facilities at the same rate for one year from that date. Very truly yours, Bob Which of the following is true?

There is a contract for only 100 yards of carpeting

Arnold has offered to take Bob into his accounting firm as a partner upon payment of $5,000 cash. In response, Bob says, "I'll give you $3,000 cash now and I will pay you the remainder in two months after I see whether things are working out as a partnership."

Bob has rejected the terms of the original offer, but there is still a contract.

Marjorie has been cared for by her family physician for 35 years. She decides to assume the mortgage on his new clinic. The contract is automatically invalid because of undue influence.

True

On June 1, a civic club made an offer to pay a beer distributor to have ten kegs delivered to the city park for a July 4th fund-raising event. On June 30, the city passed a new law prohibiting consumption of alcohol in the city park. The civic club's offer is terminated on June 30.

True

On Tuesday morning John sends a letter to Arlene rejecting her offer, but later the same day John changes his mind and sends a letter of acceptance to Arlene. The letter of acceptance will be effective only if it is received by Arlene before she receives the rejection.

True

Pedro receives an unordered three-CD set in the mail accompanied by the statement, "This CD set can be purchased for the special price of $19.95. If the CDs are not returned within two weeks they will be deemed accepted and the payment is due within 30 days of receipt of the CDs." Pedro is under no obligation to either return the CDs or to pay for them; he may use them or give or throw them away.

True

Claudia sells her highly successful hair salon to Carl. In the sales contract, Claudia agrees never to open a hair salon in the state. Which of the following best describes this contract clause?

Unenforceable as a violation of public policy.

Albert found a stone in his yard and took it to Bob, a jeweler, for evaluation. Bob wasn't sure as to the nature of the stone, but told Albert he thought it was a topaz. Bob then offered to buy the stone for $25 and Albert agreed. Later Albert found out the stone was an uncut diamond worth about $700.

This is a valid contract that should be enforced by the law, because neither party knew the exact nature of the stone at the time of the sale.

Carl and Ron are both engaged in road construction work. They know that several jobs are going to be up for public bids, and agree between themselves that Carl will bid on one job and Ron will bid on the other, so that they both have work for the summer. When the bids are opened, Carl realizes that Ron has bid on both jobs. Ron is awarded both contracts. Carl now wants to sue Ron for breach of contract.

This is an agreement in violation of public policy that will not be enforced by the courts.

Bill is currently enrolled in law school, expects to graduate and take the bar exam in order to be able to practice law. Before Bill becomes a lawyer, he promises to represent his friend, Tom, in a breach of contract action if Tom will pay him 25% of the settlement. Bill negotiates and the case settles for $50,000. Tom refuses to pay Bill. Bill then graduates and attempts to sue Tom. Bill has a legal right to enforce the agreement.

false

Emancipated minors have no ability to avoid contracts based upon their minority.

false

For a misrepresentation to be fraudulent, it need not be material.

false

Fraud in the inducement will render an agreement void.

false

In general, a minor may only disaffirm a contract after he has reached the age of majority.

false

In order to be sufficient, an agreement required to be written under the statute of frauds must be signed at the bottom and notarized.

false

Jessica at the age of 15 entered into a contract to sell five acres of land to her uncle. She may disaffirm this contract at any time before reaching her majority.

false

Natalie, age 17, rented a power washer and while using the machine, she negligently damaged it beyond repair. Under the majority view, the rental company can successfully sue Natalie for damages on a tort theory of negligence since it is well settled that minors are liable for their torts.

false

Oswald applied for a loan from Pointe Lenders. Pointe's reasonable cost of checking Oswald's credit will be considered as part of the financing charge when determining whether Pointe's rate of interest exceeds that allowable under the usury statute.

false

Ratification makes a contract void from the beginning

false

Sixteen-year-old Todd's parents provide adequate food, lodging, and clothing for him, but he sees a sweater he wants and purchases it. In all states, the sweater is considered a necessary since it is an item of clothing.

false

The purpose of the statute of frauds is to prevent the performance of oral contracts.

false

The statute of frauds has to do with fraud in the inducement of a contract.

false

The word "parol" literally means release.

false

Ty threatened to have Lisa's father prosecuted for embezzlement unless Lisa signed a contract to pay Ty 12 monthly payments of $500 each to purchase his car. Lisa cannot avoid the contract based on duress since the threat was toward Lisa's father rather than Lisa herself.

false

Where parties to a failed agreement are in pari delicto, a court will provide a remedy to the injured party.

false

​Dana gives care to Marnie's dog when Dana finds Marnie's dog ill on the side of the road. After Marnie locates her dog, Marnie promises to reimburse Dana for the cost of treating the dog. Marnie's promise is binding, because there is a bargained-for-exchange.

false

​Under the common law, a modification of a preexisting contract must be supported by mutual consideration; under the Code, a contract can be modified without new consideration.

false

Archie bets his friend Jerry $100 that the Packers will win the next Super Bowl. This is an:

illegal wagering agreement

Rose is working hard on Arlin's mayoral campaign. She thinks that just a few more votes could win the election, so she promises to pay her friend Violet $50 if she will register and vote for Arlin. Violet does so, but Arlin loses the election, and Rose now refuses to pay. Rose's agreement to pay Violet:

is unenforceable and opposed to public policy.

Divided Parcel (DP) includes the following on its mailing receipts: "We are not responsible for any damages to packages whether or not through the intentional or reckless fault or negligence of our employees. Send packages at your own risk." Mary reads this clause but sends her watch back to the manufacturer to be repaired anyway. The watch is destroyed when the DP driver uses the package for a ball and tosses it to his buddy. Mary is:

likely to collect from DP because it attempted to excuse intentional and reckless behavior.

Melody, age 17, makes a contract with Seung, who is an adult. Melody:

may exercise the power of avoidance, called disaffirmance, while still a minor, and thereby be released from any liability on the contract.

When both parties misunderstand their manifestation of mutual assent, it is termed:

mutual mistake.

Joanne, a minor, sold her laptop computer to Bruce, an adult. Bruce then sold the laptop to Anna, also an adult, who had no knowledge of the fact that the original owner was a minor. Under the Uniform Commercial Code, Joanne may:

not avoid her contract with Bruce and may not recover her laptop.

The court in National Business Services, Inc. v. Wright found a non-compete agreement drafted for an employee of an Internet company was:

subject to larger geographic restrictions than for other types of companies.

John operates a small repair business and is in desperate need of a certain type of building material. He obtains the material from a large corporation, but is charged a grossly unreasonable price and is forced to buy other material he does not need. In view of the buyer's unequal bargaining power and unreasonable terms of the contract, this may be a case of:

substantive unconscionability

In the Pacific Custom Pools, Inc. v. Turner Construction Company case, the court found:

that the purpose of the relevant licensing law was to protect the public from incompetence and dishonesty in those who provide building and construction services.

In the Zelnick v. Adams case, the Supreme Court of Virginia found:

the case must be remanded for further proceedings, including the taking of evidence on the issue of the factual determination of necessity under all of the circumstances.

Elvis makes an offer to Fred, but before Fred can accept, the state supreme court decides a case that makes Elvis's offer illegal. What is the effect of the court's decision on the offer?

the courts decision automatically terminates the offer

B& B, Inc. pays an attorney to draft and lobby for a bill which will greatly lessen B & B's tax liability to the state and federal governments. B&B gives the attorney $20,000 in cash to pay legislators for taking the time to listen to him. This is an agreement which is a violation of public policy.

true

Clara types a letter to David setting forth the terms of their contract that falls within the statute of frauds. At the end of the letter, she types her name but does not sign her signature to it. If David wants to use the letter to satisfy the writing requirement, he may do so.

true

E-Sign was enacted by Congress in 2000 and makes electronic records and signatures valid and enforceable across the United States for many types of transactions in or affecting interstate or foreign commerce.

true

If a person is unable to understand the nature and effect of entering into a contract, he or she can avoid it.

true

If a person with a mental condition that impairs her ability to act in a reasonable manner enters a contract that is grossly unfair, the contract is voidable.

true

Intoxicated persons are liable in quasi contract for necessaries purchased during their incapacity.

true

James promises to pay Brooke $2,500 if she does not sue him for negligently injuring her in a bicycle accident. If Brooke does not sue, James's promise to pay is binding because it is supported by consideration.

true

Joe is mentally impaired from the effects of a prescribed medication. If he makes a contract while under this impairment, the contract would be voidable if he cannot comprehend the subject of the contract, its nature, and its probable consequences, even if the other party does not know or have reason to know of his mental condition.

true

Michael is 17 years old and earns extra money by repairing cars. Nathan, who is 21, brings his car to Michael for repairs, and Michael ruins the brake system of the car because of his inexperience. If Nathan sues Michael for negligence in performing the auto repair contract, in most states Michael will have no liability, because the tort of negligence and the auto repair contract are connected.

true

Most types of contracts are valid without being written.

true

Ratification does need to be express; it may be implied from the minor's conduct.

true

Sally goes away to college at 17, lives on her own and pays her own rent and electric bills. If she makes a contract to buy a television set, in most jurisdictions, she may assert her minority status and set aside the contract.

true

Sandy's private secretary promises not to disclose the contents of a letter she typed if Sandy will give her the next day off with pay. If the secretary takes the day off, Sandy does not have to pay her for the day.

true

Seventeen-year-old Teresa wants to disaffirm her student loan agreements. In most states, she will not be allowed to do so.

true

Some states require the lender to forfeit two or three times the amount of usurious interest charged.

true

Specific lender usury statutes rather than the general usury statute generally apply to real estate mortgages and small consumer loans.

true

The UCC permits an oral agreement for the sale of goods to be enforced against a party who admits to the contract in court, even though the statute of frauds requires the agreement in writing.

true

The computation of time under the one-year provision of the statute of frauds starts when the agreement is made, not when the performance is to begin.

true

The contracts of a person who is adjudicated insane and placed in care of a guardian are void.

true

The courts readily enforce a covenant not to compete during the period of employment.

true

The doctrine of necessaries applies in the same way to minors and mental incompetents.

true

The legal effect of a usurious loan varies from state to state.

true

The minority of states require that the minor, when effecting a disaffirmance of the contract, pay at least a reasonable amount for the use of the property or the amount by which the property depreciated while in the hands of a minor.

true

The part performance exception to the land contract provision of the statute of frauds in many states requires both that the transferee has paid a portion of the purchase price and has either taken possession of the real estate or has started to make valuable improvements on it.

true

The parties to a contract may modify the agreement with no additional consideration by simply substituting a new contract.

true

The usual means of enforcing an agreement prohibiting an employee from competing in a described territory for a stated period of time is by injunction.

true

Tom's bank is threatening to repossess his car. Tom's mother notifies the bank that she promises to pay the bank if Tom defaults on the loan. This promise must be in writing to be enforceable.

true

Undue influence is the taking of unfair advantage of a person by reason of a dominant position based upon a confidential relationship.

true

Where a stipulation in restraint of trade is part of the sale of a business, it may be valid if the restraint is within reasonable limitations to protect the business's goodwill.

true

​A gratuitous promise is a promise made without consideration.

true

​In most, if not all, cases where there is a legal detriment to the promisee, there is also a legal benefit to the promisor.

true

​The UCC provides that a contract for the sale of goods can be effectively modified without new consideration, provided the modification is made in good faith.

true

​Under the common law, payment of a lesser sum of money than is owed in consideration of a promise to discharge a fully matured, undisputed debt is legally sufficient to support the promise of discharge.

true

Rorzex, Inc. entered into a contract with Denzil under the terms of which Denzil would receive $20,000 if he stole trade secrets from the leading competitor of Rorzex. Denzil performed his end of the agreement by delivering the trade secrets. Rorzex now refuses to pay Denzil for his services. Denzil:

will be unable to recover, because this is an illegal contract.

Which of the following would always be considered to be contrary to public policy?

An agreement to pay someone to make false statements about a competitor's product.

Which of the following will often not constitute valid consideration?

An illusory promise.

A bank robbery has occurred, and the banker's association has offered a $1,000 reward for information leading to the arrest and conviction of the robber. Several people are claiming to be entitled to the money. Which of them is eligible?

An off-duty deputy sheriff from a county other than the one where the arrest occurred.

Sam, a shopkeeper, dies unexpectedly at the age of 46. His lifelong business associate, Paul, is appointed the administrator of the estate. Sam had a personal debt of $8,000 which he owed to Art's Appliance Store. Paul says to Art, "If there isn't enough money in the estate, I'll personally see that the bill is paid." Which of the following is correct?

An oral statement such as this is not enforceable because it is within the statute of frauds.

An agreement for an illegal substance will be enforced by the courts if all other elements of the contract are present.

false

An agreement to pay a public officer something extra for performing his official duty is enforceable.

false

An acceptance is generally effective upon dispatch.

True

Ben and Kate had been negotiating Ben's employment contract in conversations over the phone for a couple of weeks. Finally, they agreed on some contract terms. Kate offered to create a draft of the contract for Ben to read over. On the same day Ben was fired from his job. Afraid he would be unemployed, Ben signed Kate's draft without reading it. In this example Ben:

cannot avoid the contract because of economic duress or failure to read

Robinson Wiring Co. submits a written offer for Turner Construction's use as part of its bid as a general contractor for an office complex. Robinson knows Turner is relying on Robinson's bid. Robinson:

cannot, under the doctrine of promissory estoppel, revoke its bid even prior to acceptance

Under the UCC, a(n) __________ is a sequence of previous conduct between the parties to an agreement which may be fairly regarded as establishing a common basis of understanding for interpreting their conduct under the contract.

course of dealing

Contracts induced by threats of __________ are voidable, regardless of whether the coerced party has committed an unlawful act.

criminal prosecution

The exercise of the power to avoid a contract is known as:

disaffirmance

In the Berardi v. Meadowbrook Mall Company case, the court found:

economic duress must leave the plaintiff no reasonable alternative but to acquiesce to the terms of the contract.

A bargain by a candidate for public office to make a certain appointment following the election is legal.

false

Adam wants to buy a six-passenger car. The salesman tells him that the two-seat sports car Adam sees on the car lot would be just perfect for six people. Adam test drives the car and then buys it.

Adam was not justified in relying upon the salesman's representation that the car would seat six people

If there is no time specified for the acceptance of an offer, when does the offer terminate?

After a reasonable period of time

Al, an accountant, has a tax service and accounting business in Redwood City. He decides to move to Center City, which is 150 miles away and sells his accounting practice to Able and Baker, a CPA firm. In the sale contract, he agrees that he will refrain from practicing accounting anywhere within a 100-mile radius of Redwood City for a period of two years. However, on weekends he returns to his house in Redwood City, and when clients call him, he meets with them in his home.

Al is in violation of the sale agreement

Which of the following is correct with regard to duress?

Duress by improper threats is the most common form of duress

Nell gives Big Al $50 in return for Al's promise to defame Sara. Nell hopes to ruin Sara's chances at a promotion. Nell finds out that Al did not hold up his end of the agreement. Which of the following statements is true?

Legally, Nell can neither get the money back nor force Al to do as he promised

Maxine offered to sell her video camera to Tom for $200 and also stated to Tom, "I will give you two weeks to accept my offer." One week later Tom learned that Maxine had sold the video camera to Cindy.

Maxine has revoked her offer to Tom

On March 1, Tammy, a student, received a telephone call from Watterson, Inc. offering her a job for one year beginning on June 15, after completion of the school year. According to the personnel manager, she will have to move to California and be ready to start work at 8:00 a.m. on June 15. Should Tammy ask for a letter confirming the telephone conversation if she accepts the offer immediately?

Yes, because the job offer is for longer than one year from March 1