BIZ LAW 3

Brian Crain offers Professor Hobbs a dozen piano lessons for $80.00 a lesson but conditions the deal on Professor Hobbs' accepting the offer by April 1st. Brian Crain may revoke the offer

at any time before Professor Hobbs accepts the offer.

Beatrix defaults on a debt to Credit Loan Corporation (CLC). As a creditor, CLC could obtain a court order to sell all of Beatrix's property except

her primary motor vehicle.

Student loans are dischargeable in a Chapter 7 bankruptcy.​

false

The purpose of the exclusionary rule is to encourage criminals to work with law enforcement to exclude evidence of their crimes by testifying against their co-defendants.

false

Under the Fourth Amendment, general searches without probable cause through a person's belongings are permissible if the suspect is not cooperating with law enforcement.​

false

When both parties to a contract are mistaken about the same material fact, the contract cannot be rescinded.

false

Chad signs Dolly's name, without her authorization, to the back of her paycheck, and then cashes the check for his own use. This is

forgery.

Manufacturers Corporation sues Evan for breach of contract and obtains a judgment against him in the amount of $100,000. Evan decides not to pay the judgment. Two months later, the sheriff comes to Evan's door with a court Order to sell all of Evan's non-exempt property to pay the judgment. This Order is known as

a Writ of Execution.

Ridgeline Bank provides Shirley with a mortgage to buy a home. The rate of interest is fixed for three years and then adjusts annually. This is

an adjustable-rate mortgage.

Lidia breaks into Consuela's home and commits a felony by taking her television and phone. The act of breaking and entering into a dwelling of another to commit a felony constitutes

burglary.

Dry Gulch Farms hires Elliot to repair its irrigation system on site on a certain date for $2,500, but Elliot does not show up as agreed. Dry Gulch hires Fernando to do the job for $3,000. Dry Gulch may recover from Elliot​

compensatory damages.

Liquidated damages provisions are generally enforceable, but only if you know the precise amount of damages you will incur if the contract is breached when it is formed.

false

A material breach occurs when performance is substantial, but not complete.​

false

A surety can be required to pay an obligation only after the principal debtor defaults and only after the creditor has made an attempt to collect from the debtor.

false

Alice and Bart enter into a contract for the sale of Canyon Ranch. To be enforceable, this contract must be​

in writing and signed by both parties.

Edgar refuses to pay Delia $500 for the cost to repair Edgar's washing machine and dryer, which Delia still possesses. Delia has a lien on the machines, which will terminate

it she voluntarily surrenders possession of the items.

At an auction for the first time, Dulcinea bids on a one-hundred-year-old Edison-brand phonograph, believing that it is worth more than the price asked. When the item proves to be less valuable, Dulcinea is:

liable on the bid.

Thirty-one days before filing a petition in bankruptcy, Gavin transfers property and makes payments that favor one creditor over another. These are

preferences.

Gena borrows $350,000 from Fish Island Bank to buy a home in North Carolina, which secures the mortgage. In the seventh year of the loan, Gena stops making payments. After the bank forecloses on the property but before it is sold, Gena may buy it by paying

the full amount of the debt.

Ruth owns Skyview, a complex under construction that will include commercial and residential suites, and a parking garage. She allows Town Contracting, the contractor, to complete a stage of the project late. This waives Ruth's right to sue for​

this delay

A bilateral contract comes into existence the moment promises are exchanged.

true

A contract entered into by a mentally incompetent person, who has not been adjudicated incompetent by a court of law, can be valid if the person had capacity at the time the contract was formed.​

true

A contract that is personal in nature cannot be assigned.

true

A wrongful mental state is typically required to establish criminal liability.

true

An effective offer requires reasonably definite terms.​

true

The clerk of a bankruptcy court must provide consumer-debtors with information regarding alternatives to declaring bankruptcy.

true

The law allows an innocent party to a contract to be discharged when the other party has materially altered a written contract without consent.

true

Withholding a portion of a debtor's weekly take-home pay to fulfill a valid debt is known as a garnishment.​

true

Michael has been selling stolen electronic equipment for several years. Mercedes, an undercover police officer, induces Michael to sell her a stolen television and promptly arrests him for selling stolen goods. Michael wants his lawyer to use the defense of entrapment at trial. This defense will likely be

unsuccessful, because Michael was already selling the stolen goods.

Oceans Inc., a seafood distributor, agrees to buy from Paul, a commercial fisherman, any fish that Paul catches in excess of his legal limit. This agreement violates Federal Law and is most likely​

void