BLAW 2200 Test 3

mutual

An error on the part of both parties to an agreement is a(n) _____ mistake. a. unclear b. mutual c. unilateral d. clear e. single

Sally will win because Paul's attempted assignment would increase the duties to which she agreed.

Sally agrees to mow Paul's yard for $300 for the summer. Paul wishes to assign the contract to his grandmother. Sally objects because Paul's yard is very small while the grandmother's yard is over an acre. Which of the following is the correct legal outcome for the dispute between Sally and Paul? a. Sally will win because Paul's attempted assignment would increase the duties to which she agreed. b. Sally will win because all assignments are invalid without the obligor's consent. c. Sally will win unless Paul paid her the $300 in advance in which case Paul will win. d. Paul will win because he may validly assign the contract without Sally's consent. e. Paul will win so long as he tells Sally about the assignment prior to the time she begins any performance whatsoever.

a contract for a necessary

A contract that supplies the minor with the basic needs such as food, clothing, and shelter is called _____. a. a unilateral contract b. an implied contract c. a contract for a necessary d. a ratification e. a contract of adhesion

innocent misrepresentation

A false statement about a fact material to an agreement that the person making the statement believed to be true is considered _____. a. wrongful discharge b. innocent misrepresentation c. false misrepresentation d. misleading misrepresentation e. illegal misrepresentation

rescinded

A voidable contract may be canceled or _____. a. chargeable b. rescinded c. deassented d. reassented e. uncharged

material breach

A(n) _____ discharges the nonbreaching party from his obligations under the contract. a. immaterial breach b. substantial breach c. material breach d. delineated breach e. crossed breach

incidental

A(n) ______ beneficiary is one who unintentionally gains a benefit from a contract between other parties. a. incidental b. creditor c. donee d. vested e. accidental

delegation

A(n) ______ occurs when a party to a contract transfers her duty to perform to a third party that is not part of the original contract. a. transfer b. assignment c. delegation d. performance e. occurrance

In some states Sally would have an obligation of restitution to the store.

At age 17, in a state in which the age of majority is 18, Sally purchased a prom dress from Formal Stuff. She wore it to the prom and then attempted to return it to the store claiming that she was a minor and that she was entitled to a refund. The dress had clearly been worn and had a purple stain that Sally claimed was from grape juice. Which of the following is true regarding Sally's attempt to return the damaged dress? a. In all states Sally has the right to keep the dress and get a refund. b. In all states Sally must return the dress, but she has a right to a full refund. c. Regardless of what she does with the dress, Sally has no right to a refund in any state. d. In some states Sally would have an obligation of restitution to the store. e. In all states Sally would have an obligation of restitution to the store.

Danae is guilty of undue influence.

Danae works for Gertrude, and elderly woman, as a caregiver. Danae wants to benefit from Gertrude's wealth and over a few months convinces Gertrude that her family must not love her anymore, since they are not caring for her, but Danae is. Gertrude changes her will to benefit only Danae and no one else. Gertrude's family finds out about this change and wants to sue Danae. What, if anything, is Danae guilty of? a. Danae is guilty of duress. b. Danae is guilty of undue influence. c. Danae is guilty of duress and undue influence. d. Danae is guilty of intentional wrongful disclosure. e. Danae is not guilty of anything.

Conditioned on, if, when, or provided that

Express conditions are usually preceded by which words? a. Conditioned on or if b. If or when c. Provided that, if, or when d. When or provided that e. Conditioned on, if, when, or provided that

That the mistake did not have a material effect on the agreement.

George offered to sell his used computer to Penelope for $300, and Penelope accepted. Both George and Penelope believed that the computer was one year old. When the receipt was found, however, it was discovered that the computer was actually 15 months old. Penelope wants out of the agreement based on mutual mistake. Which of the following is George's best position in an attempt to enforce the contract? a. That the mistake did not have a material effect on the agreement. b. That the mistake should be allocated equally between the parties. c. That a mutual mistake was involved. d. That a unilateral mistake was involved. e. None of these, because as a matter of law Penelope can get out of this type of contract.

cancelled

If a contract is rescinded, it is _____. a. renewed b. a mistake c. cancelled d. temporarily stopped e. a misrepresentation

legal

Monetary damages are also referred to as ______ damages. a. equitable b. fair c. public d. legal e. injunctive

To restrict evidence from being admitted that substantially contradicts a clear agreement in its written form.

What is a purpose of the parol evidence rule? a. To restrict oral evidence from being admitted that supports an agreement in its written form. b. To restrict written evidence from being admitted that supports an agreement in its written form. c. To restrict oral and written evidence from being admitted that supports an agreement in its written form. d. To restrict hearsay from being admitted that supports or contradicts an agreement in its written form. e. To restrict evidence from being admitted that substantially contradicts a clear agreement in its written form.

Assignment

Which of the following occurs when a party to a contract transfers her rights to a contract to a third party? a. Assignment b. Referral c. Disgorgement d. Privity e. Transfer

Procedural unconscionability

A party who claims that he or she could not understand contractual terms because of tiny, hard-to-read print on the back of an agreement and the excessive use of legalese is referring to which of the following? a. Substantive unconscionability b. Adhesion conscionability c. Procedural unconscionability d. Exculpatory clauses e. An in pari delicto agreement

voidable; disaffirm

Because their contracts are _____, minors have the right, until a reasonable time after reaching the age of majority, to _____, or avoid, their contracts. a. void; disaffirm b. void; affirm c. void; resist d. voidable; disaffirm e. voidable; affirm

Bill continues to be bound to Jane to see that her car gets washed.

Bill contracts with Jane to wash her car and then delegates the duty to Paul. Paul fails to wash the car. Which of the following is true regarding Bill's duty to Jane, if any? a. Bill has no duty to Jane so long as she did not expressly object to the delegation. b. Bill has no duty to Jane regardless of whether she objected to the delegation. c. Bill continues to be bound to Jane to see that her car gets washed. d. Bill continues to be bound to Jane to see that her car gets washed only if the contract expressly prohibited delegation. e. Bill continues to be bound to Jane to see that her car gets washed unless he already paid Paul for the job.

Billy is incorrect because his delegation did not affect his obligation to Jan.

Billy had a contract to paint Jan's house for $800 including the duty to clean up any debris. The contract between Billy and Jan did not contain an anti-assignment clause. Billy, who was very busy, assigned the contract, including the right to payment and the duty to paint, to Richard who was interested in making some extra money and had experience painting. Billy did not tell Jan about the assignment because he did not want any trouble nor did Richard mention the assignment to her. In fact, Richard never met Jan because he painted while she was at work. After Richard did a good job painting the house, Jan sent a check to Billy for $800. Billy needed the money to pay some bills, so he spent it. He thought he would have money coming in with which to pay Richard, but that did not happen. Richard asked Jan for $800 when it was not forthcoming from Billy. Jan refused. Richard said that he was going to sue her and Billy. Jan called Billy and told him that he had no right to assign the contract. Another problem involved disposal of debris. Although Richard was a good, competent painter, he forgot and left some old paint cans at Jan's house. Jan demanded that Billy come and properly dispose of the paint cans. Billy refused and told her that she would have to get Richard to dispose of the paint cans because that was his responsibility. Which of the following is true regarding Billy's claim that he had no duty to pick up the paint cans? a. Billy is correct because he had validly delegated that duty to Richard. b. Billy is incorrect because the job was a personal service, and he had no right to assign either rights or duties under the contract. c. Billy is incorrect but only because the job was for under $1,000. d. Billy is correct only because Richard properly painted the house and was, therefore, responsible for ancillaries. If Richard had improperly painted the house, Billy would have had remaining duties. e. Billy is incorrect because his delegation did not affect his obligation to Jan.

covenant not to complete in employment

Bob is hired to do computer sales for an electronics store. He agrees that if he leaves his employment, he will not work for another computer store within 25 miles for a period of two years. That type of agreement is called a(n) _____. a. covenant not to complete in employment b. employment agreement c. working covenant d. termination agreement e. public policy agreement

Contracts of an intoxicated person are voidable by the intoxicant if the other party had reason to know that because of the intoxicated person's condition, that person was unable to understand the nature and consequences of the transaction or was unable to act in a reasonable manner in relation to the transaction.

Bobby is very angry with his former girlfriend, Tessa, and decides to start rumors, that would constitute the tort of defamation, that she has a vile disease, cheated on tests, and stole from friends. Bobby wants to enlist the help of Charles but knows that Charles would be hesitant to assist in his endeavors. One evening, however, Charles drank too much beer and was clearly intoxicated - a fact apparent to Bobby. Bobby had him sign a contract agreeing to defame Tessa for $50. When he sobers up, Charles tells Bobby that he was drunk and that he has no intention of defaming Tessa. Which of the following is true regarding the claim of Charles that he should be able to avoid the contract involving Tessa because he was intoxicated? a. Contracts of an intoxicated person are voidable by the intoxicant if the other party had reason to know that because of the intoxicated person's condition, that person was unable to understand the nature and consequences of the transaction or was unable to act in a reasonable manner in relation to the transaction. b. Contracts of an intoxicated person are void if the other party had reason to know that because of the intoxicated person's condition, that person was unable to understand the nature and consequences of the transaction or was unable to act in a reasonable manner in relation to the transaction. c. Contracts of an intoxicated person are enforceable because a person should be bound by his or her actions. d. Contracts of an intoxicated person are void only if it can be proven that the other party was involved in encouraging the abuse of alcohol by the intoxicated person. e. Contracts of an intoxicated person are voidable by the intoxicant only if it can be proven that the other party was involved in encouraging the abuse of alcohol by the intoxicated person.

Brice is guilty of duress.

Brice wants Samia to enter a busienss contract with him, but she is hesitant. Brice is tired of waiting for her to decide and threatens to tell all of their business collegues that Samia always cheats on her taxes, which Brice knows is not true. Which of the following is true regarding Brice's threat to Samia? a. Brice is guilty of duress. b. Brice is guilty of undue influence. c. Brice is guilty of duress and undue influence. d. Brice is guilty of intentional wrongful disclosure. e. Brice is not guilty of anything so long as Susie truly cheated on her taxes.

An order of specific performance

College president Wally contracts with Alice to teach business law. Alice does a fine job teaching but gets mad at Wally and will not turn in grades. What type of order would Wally seek to require Alice to abide by her contract? a. An order of specific performance b. A compensatory order c. A nominal order d. A consequential order e. A demand order

Willis breached the contract, but the breach was not material.

For $300,000, Willis agrees to build a new home for Robert, who is very picky. Willis builds the home to Robert's specifications with one exception. The faucets and linoleum flooring in an upstairs powder room are not exactly what Robert specified. That was a mistake on Willis' part, but he had not intentionally failed to follow specifications. When Robert sees the powder room, he goes ballistic and tells Willis that he will not pay Willis anything for the house. It will take $500 to put in correct faucets and linoleum. Willis says that he is willing to pay $500 to put Robert in the position he would have been in had the correct faucets and linoleum been used, but that is all he is willing to do. Which of the following is true regarding whether Willis breached the contract? a. Willis did not breach the contract. b. Willis materially breached the contract. c. Willis substantially breached the contract. d. Willis breached the contract, but the breach was not material. e. Willis committed an anticipatory breach of the contract.

He committed an anticipatory repudiation.

Frank agrees to keep Beverly's dogs, Creaky and Toady, at the end of the summer in exchange for money from Beverly. One week before his performance was to begin, Frank told Beverly he really didn't like her dogs and was not going to keep them as promised in their agreement. Which of the following is true regarding Frank's refusal to keep Creaky and Toady? a. He committed an anticipatory repudiation. b. He is not guilty of any breach because he gave Beverly sufficient warning that he was not willing to perform. c. He is not guilty of any breach because of the frustration of purpose doctrine. d. He is guilty of an immaterial breach because of the low value of the contract. e. He is guilty of a nominal breach.

Michelle will win because painting the portrait was personal in nature and could not be delegated.

Fred, a famous portrait painter, agreed to paint Michelle's portrait for $12,000. Fred decides at the last minute that he would rather paint someone else and delegates the duty to paint Michelle's portrait to Brenda. Brenda meets with Michelle, and Michelle allows her to paint, but Brenda does a terrible job and Michelle is unhappy. She refuses to pay Brenda or Fred the money. What would be the most likely result if Fred sues Michelle for the $12,000 payment? a. Fred will win only if Brenda did a good job on the portrait. b. Fred will lose because Michelle's only obligation is to pay Brenda. c. Fred will win unless Michelle can prove that Fred knew that she did not want Brenda to do the portraits. d. Fred will lose unless Fred can prove that he did not know that Michelle did not want Brenda to do the portraits. e. Michelle will win because painting the portrait was personal in nature and could not be delegated.

Those who are adjudicated insane, those whose judgment has been impaired because of a condition such as Alzheimer's, and also those who are adjudicated habitual drunkards.

Guardians may be appointed for which of the following? a. Only those who are adjudicated insane. b. Only those who are adjudicated habitual drunkards. c. Only those whose judgment has been impaired because of a condition such as Alzheimer's. d. Those who are adjudicated insane or those whose judgment has been impaired because of a condition such as Alzheimer's, but not those who are adjudicated habitual drunkards. e. Those who are adjudicated insane, those whose judgment has been impaired because of a condition such as Alzheimer's, and also those who are adjudicated habitual drunkards.

Harry is incorrect because he is the one being sued, and he signed the document.

Harry has two houses, a house on the lake and a house in town. Rebecca wants to buy the house on the lake. Harry and Rebecca orally agree that Rebecca will buy the house on the lake for $300,000. Harry hurriedly writes out a contract providing that he would sell "his house" to Rebecca for $300,000. Harry signs the top of the document. Rebecca does not sign at all. Harry backs out of the contract, and Rebecca sues him. He tells the judge that the statute of frauds is not satisfied because Rebecca did not sign at all.Which of the following is true regarding Harry's assertion that the statute of frauds is not satisfied because Rebecca did not sign the document? a. Harry is incorrect because he is the one being sued, and he signed the document. b. Harry is incorrect because the statute of frauds did not require her signature so long as the type of subject matter involved was referenced. c. Harry is incorrect because the statute of frauds did not require her signature so long as the selling price was referenced. d. Harry is incorrect because the statute of frauds did not require Rebecca's signature so long as both the selling price and the type of subject matter involved was referenced. e. Harry is correct.

Harry is incorrect because under the parol evidence rule, the judge would likely allow oral evidence regarding the house at issue in order to clarify an ambiguity.

Harry has two houses, a house on the lake and a house in town. Rebecca wants to buy the house on the lake. Harry and Rebecca orally agree that Rebecca will buy the house on the lake for $300,000. Harry hurriedly writes out a contract providing that he would sell "his house" to Rebecca for $300,000. Harry signs the top of the document. Rebecca does not sign at all. No merger clause is included in the contract. Harry backs out of the contract, and Rebecca sues him. He tells the judge that the statute of frauds is not satisfied because he did not sign the document at the end and also because Rebecca did not sign at all. He also tells the judge that, at any rate, the agreement referred to the house in town, not the house on the lake; and that under the parol evidence rule, he had the right to identify the correct house. Which of the following is true regarding Harry's assertion that under the parol evidence rule he alone had the right to identify the house referenced in the contract? a. Harry is correct. b. Harry is incorrect because under the parol evidence rule, Rebecca, as the buyer, would be allowed to identify the subject matter in the event of a discrepancy. c. Harry is incorrect because under the parol evidence rule, the judge would likely allow oral evidence regarding the house at issue in order to clarify an ambiguity. d. Harry is incorrect because the parol evidence rule would not apply in situations involving an ambiguity. e. Harry is incorrect because the parol evidence rule would not apply in the absence of a merger clause.

Because Heather violated the contract to provide a full blooded Pomeranian, Brad is entitled to rescind the contract, but he is not entitled to the damages he seeks.

Heather innocently misrepresented the status of a puppy as being a full-blooded Pomeranian when actually it was a mixed breed. Brad had contracted to purchase the dog, but the problem was discovered prior to his paying for the dog and picking it up. Nevertheless, Brad was very angry and felt that Heather should have been more careful. He said that he planned to rescind the contract and also sue her for damages to punish her and deter others from behaving similarly. Which of the following is true regarding the remedies available to Brad? a. Because Heather violated the contract to provide a full blooded Pomeranian, Brad is entitled to rescind the contract and also to the damages he seeks. b. Because Heather violated the contract to provide a full blooded Pomeranian, Brad is entitled to rescind the contract, but he is not entitled to the damages he seeks. c. Because Heather is not guilty of any wrongdoing, Brad is entitled to no remedy; and Heather has an additional 30 days in order to honor the contract. d. Because Heather is not guilty of any wrongdoing, Brad is entitled to no remedy; and Heather has an additional 60 days in order to honor the contract. e. Because Heather is not guilty of any wrongdoing, Brad is entitled to no remedy; and Heather has an additional 90 days in order to honor the contract.

illegal and unenforceable

If a licensing statute is intended to protect the public's health, safety, and welfare, an agreement with an unlicensed professional is typically deemed _____. a. executed b. enforceable without a fine c. illegal and unenforceable d. enforceable but with a fine e. usurious

punitive

If the plaintiff is seeking legal damages that are designed to punish the defendant and deter him and others from engaging in similar behavior in the future, the plaintiff is seeking ______________ damages. a. consequential b. punitive c. liquidated d. nominal e. repugnant

specific performance

If the plaintiff wants a court order that requires the defendant to fulfill the terms of the contract, the plaintiff is seeking _______________________. a. specific performance b. directive c. instructional edict d. demand e. injunction

Identification of the parties to the contract and the subject of the agreement, but not penalties for nonperformance.

In contracts governed by common law, which of the following are required elements for a writing to be considered sufficient under the statute of frauds? a. Identification of the parties to the contract. b. Identification of the subject of the agreement. c. Identification of the penalties for nonperformance. d. Identification of the parties to the contract, identification of the subject of the agreement, and identification of the penalties for nonperformance. e. Identification of the parties to the contract and the subject of the agreement, but not penalties for nonperformance.

unilateral

In general, a(n) _____________ mistake does not generally void a contract. a. unclear b. mutual c. unilateral d. clear e. single

scienter

In legal terms, deliberate or knowing wrongdoing in contract is _____. a. rogue b. corpulence c. scienter d. wrongness e. inattentiveness

18

In most cases, a minor is someone under the age of _____. a. 21 b. 18 c. 19 d. 23 e. 25

Marcy may rescind the contract, and she may also sue for damages.

Lucy fraudulently made a misrepresentation regarding a contract with Marcy, knowing the statement was not correct. Which of the following is true if Marcy does not want to go through with the contract when she discovers Lucy's fraud? a. Marcy may rescind the contract, and she will recover $10,000 in damages that is an amount set by federal law. b. Marcy may rescind the contract, but she may not recover damages. c. Marcy may sue for damages regardless of whether she can establish injury, but she may not rescind the contract. d. Marcy may rescind the contract, and she may also sue for damages. e. Marcy may rescind the contract and she may also recover only nominal damages.

Maurice will lose based on economic duress.

Maurice contracted with Suzanne to feed and walk her Corgi mix dog, Baby, for $100 while Suzanne was on vacation for one week. One day before Suzanne was to leave, Maurice came over and said that Baby would be a significant amount of trouble and that he would have to receive $150 in order to walk and feed Baby. Suzanne reluctantly agreed. When she returned from vacation, she handed Maurice $100 and refused to pay more. Maurice threatens to take her to small claims court. What would be the likely result? a. Maurice will lose based on economic duress. b. Maurice will lose based on undue influence. c. Maurice will lose based on fraud. d. Suzanne will lose because she breached the amended contract with Maurice. e. Suzanne will lose because she breached the amended contract with Maurice unless she can establish that the prevailing rate for walking and feeding a dog for one week is no more than $100.

Both a condition precedent and an express condition

Maurice finds a dream home on the lake. He wants to buy it but is unsure whether he can get a loan. He signs a contract with the seller that he will buy the home if he can get a loan. This provision that Maurice did not have to buy the house unless he was able to get a loan is referred to as which of the following? a. A condition subsquent b. A condition precedent c. An implied condition d. An express condition e. Both a condition precedent and an express condition

discharge by performance

The discharge by parties of their obligations by doing what they respectively agreed to do under the terms of the contract is called ______. a. discharge by tender b. discharge by performance c. discharge by finishing d. discharge by absolution e. discharge by reason

It is treated the same as a fraudulent misrepresentation.

What is the effect of a negligent misrepresentation? a. There is no effect because there is no such term as "negligent misrepresentation." b. It is treated the same as an innocent misrepresentation. c. It is treated the same as a fraudulent misrepresentation. d. It is treated the same as a material misrepresentation. e. It is treated the same as an implied misrepresentation.

Assignee

What is the term for the third party who receives an assignment of contract rights? a. Transferor b. Transferee c. Relator d. Assignor e. Assignee

Negligent misrepresentation

When the party making the statement would have known the truth about the fact had he used reasonable care to discover or reveal it, the statement is considered ______________________. a. Innocent misrepresentation b. Material misrepresentation c. Immaterial misrepresentation d. Negligent misrepresentation e. Scienter

A false statement and intent to deceive.

Which are elements of fraudulent misrepresentation? a. A false statement and a mutual mistake. b. A false statement and intent to deceive. c. Intent to deceive and negligent misrepresentation of facts. d. A relationship between the parties and negligent misrepresentation of facts. e. A relationship between the parties and duress.

Consequential

Which of the following are foreseeable damages within the contemplation of the parties at the time the breach occurs and that result from special facts and circumstances arising outside the contract itself? a. Consequential b. Punitive c. Liquidated d. Nominal e. Repugnant

Complete and substantial

Which of the following are the two primary kinds of performance? a. Partial and significant b. Partial and complete c. Partial and substantial d. Complete and substantial e. Complete and significant

Concurrent

Which of the following conditions occur when each party's performance is conditioned on the performance of the other? a. Precedent b. Subsequent c. Concurrent d. At large e. Certain

Leases of land are not within the statute of frauds.

Which of the following is FALSE regarding the statute of frauds provision relating to an interest in land? a. The statute is intended to prevent oral claims to the existence of a contract for the sale of land. b. The statute requires a writing as evidence of a contract to sell land. c. Anything attached to land such as trees or buildings is considered real property under the statute of frauds. d. Mortgages of land are within the statute of frauds. e. Leases of land are not within the statute of frauds.

Creditor and donee, but not incidental

Which of the following is a type of intended beneficiary? a. Creditor b. Donee c. Incidental d. Creditor, donee, and incidental e. Creditor and donee, but not incidental

Capacity

Which of the following is an element of a valid contract? a. Inquiry b. Acknowledgement c. Capacity d. Knowledge e. Affirmance

Assignees are offered additional protection than assignors.

Which of the following is false regarding rights of an assignee and assignor? a. Assignees essentially fill in for the assignor as the legal recipient of contractual duties. b. Assignees acquire the same rights as the assignor had. c. Assignees are offered additional protection than assignors. d. The obligor may raise any of the same defenses for nonperformance to the assignee that he would have been able to raise against the assignor. e. When an assignor transfers rights to an assignee, the assignor legally gives up all rights she previously had to collect on the contract.

Economic duress

Which of the following is involved in a situation in which a person refuses to perform according to a contract unless the other person either signs another contract with the one making the threat or pays that person a higher price than was specified in the original agreement? a. Fraudulent duress b. Contractual duress c. Negligent duress d. Economic duress e. Specific duress

An agreement to commit a crime is unenforceable, and an agreement to commit a tort is also unenforceable.

Which of the following is true regarding an agreement to commit a crime or a tort? a. An agreement to commit a crime is enforceable, but an agreement to commit a tort is unenforceable. b. An agreement to commit a tort is enforceable, but an agreement to commit a crime is unenforceable. c. An agreement to commit a crime is unenforceable, and an agreement to commit a tort is unenforceable unless a business tort in involved in which case the agreement is enforceable. d. An agreement to commit a crime is unenforceable except an agreement to commit white collar crime in which case the agreement is enforceable; and an agreement to commit a tort is unenforceable unless a business tort is involved in which case the agreement is enforceable. e. An agreement to commit a crime is unenforceable, and an agreement to commit a tort is also unenforceable.

Persons suffering from a mental illness may have full, limited, or no legal capacity to enter into a binding contract depending on the nature and extent of their mental deficiency

Which of the following is true regarding the ability of persons suffering from a mental illness to enter into a binding contract? a. Persons suffering from a mental illness never have capacity to enter into a binding contract. b. Persons suffering from a mental illness have full capacity to enter into a binding contract so long as they do not present a danger to themselves or others. c. Persons suffering from a mental illness have full capacity to enter into a binding contract so long as they inform the other party that they are in treatment. d. Persons suffering from a mental illness may have full, limited, or no legal capacity to enter into a binding contract depending on the nature and extent of their mental deficiency e. Persons who suffer from a mental illness always have full capacity to enter into a binding contract.

Such clauses might be enforced if the contract involves private businesses providing nonessential services.

Which of the following is true regarding the enforceability of exculpatory clauses which provide that one contract party not hold the other contract party liable for any injuries or damages? a. Such clauses are enforced so long as no duress was applied. b. Such clauses are never enforced. c. Such clauses are always enforced so long as the complaining party had the capacity to contract. d. Such clauses are enforced unless a person sustains a physical injury, and hair damage would not qualify as a physical injury. e. Such clauses might be enforced if the contract involves private businesses providing nonessential services.

Usury

Which of the following occurs when a party gives a loan at an interest rate exceeding the legal maximum? a. No enforceable legal violation b. Interest prohibition c. Principle reduction d. Usury e. Plenary

Express ratification

Which of the following occurs when a person reaches the age of majority and states, either orally or in writing, that he or she intends to be bound by the contact entered into as a minor? a. Implied ratification b. Express ratification c. Express novation d. Implied novation e. Disaffirmance

Mutual rescission

Which of the following occurs when parties agree that they simply wish to discharge each other from their mutual obligations and, therefore, rescind or cancel the contract? a. Accord and satisfaction b. Novation c. Substituted contract d. Mutual rescission e. Alteration

Novation

Which of the following occurs when the parties to the agreement wish to replace one of the parties with a third party? a. Accord and satisfaction b. Novation c. Substituted contract d. Mutual rescission e. Alteration

Vesting

Which of the following references the maturing of rights such that a party can legally act on the rights? a. Absoluting b. Gelling c. Forming d. Vesting e. Finishing

Substantive unconscionability

Which of the following would be a possible defense to a contract as far as harsh and lopsided requirements for only one party are concerned? a. Substantive unconscionability b. Unclear drafting c. Procedural unconscionability d. Outrageous wording e. Adhesion conscionability

Procedural unconscionability

Which of the following would be a possible defense to a contract based upon unreadable small print on the back of the contract, which the offeree was not given adequate time to read through? a. Substantive unconscionability b. Unclear drafting c. Procedural unconscionability d. Outrageous wording e. Adhesion conscionability

To fashion remedies when the existing laws did not provide any adequate ones.

Why did equitable remedies come into being? a. To fashion remedies when the existing laws did not provide any adequate ones. b. To supplement compensatory damages with punitive damages. c. To provide a way by which to award nominal damages. d. To provide a way by which to award consequential damages. e. To provide a way by which to award certain parties liquidated damages.