BLAW Test 3 Agee Baylor
Which of the following would be considered to be a misrepresentation of a material fact for purpose of establishing fraud in the inducement?
"This car has a new radiator."
The UCC Article 2 statute of frauds provision applies to the sale of goods for the price of ________ or more
$500
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
Al owns a farm that he believes is worth $150,000. Betty knows that there is oil under the farm and offers Al $160,000 for it. Al accepts and sells the farm to Betty. Al later realizes that the land was worth more than $160,000. Al can have the contract avoided based upon fraud.
F
American courts generally will enforce a gambling agreement
F
Assignments of all future wages to a specific creditor are legally permissible as long as the assignment is in writing
F
Bill is currently enrolled in law school. He 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.
F
D owes C a past-due undisputed debt of $500. D sees C in a bar and pays him $400. C then says to D, "Forget about the other $100 you owe me. I'm glad to get the $400." C's promise to discharge the remainder of the debt is binding.
F
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.
F
David's question to Albert, "Would you be interested in buying my computer for $800?" is an offer to Albert.
F
Equitable remedies result in money awards to the plaintiff.
F
If Coy tells Sari that he will give her two days to decide if she wants to buy his motorcycle, he cannot sell it to anyone else during that time.
F
If the parties to a contract stipulate an amount that will be paid in the event of a breach, the courts will always enforce it.
F
In an employment agreement with Carl, Arnold promises to work for Carl for the rest of his life. This promise must be in writing or in proper electronic form to be enforceable.
F
In order to be legally binding, contracts must always be in writing or they cannot be proven
F
On March 20, Alan orally agrees to work for Trower, Inc. for a period of one year commencing on June 1. No writing necessary here, because the contract can be performed within one year.
F
Ron offers to sell Pete his stamp collection. Pete gives Ron $10 to induce him to keep his offer open for a week. If Ron decides on day four of the week that he really does not want to sell to Pete, he can revoke his offer without fear of a breach of contract lawsuit being filed against him.
F
Sam, a student, promises to act as a guide on a fishing trip for a group of visiting dignitaries. The dignitaries agree to pay him $200 for his services. Sam guides them, but when they discover that Sam does not have a fishing license, they refuse to pay him. The agreement is an illegal one, which is not enforceable.
F
The Abbot Corporation contracts with the Baker Corporation to sell to Baker its entire production. After signing the agreement, Abbot can increase its production from one shift to two shifts and Baker will have to buy all of the doubled production.
F
The Coastal Opera Company has a contract with a famous tenor to perform in its production of La Boheme. If the tenor chooses, he may delegate his duties under the contract to an equally well-known tenor.
F
The UCC statute of frauds requires that the writing include all agreed-upon terms
F
The common law "mirror image" rule applies to an offer and the acceptance of that offer in a contract for the sale of goods
F
The statute of frauds always requires that both parties sign the writing or it won't be enforceable
F
To fully compensate a plaintiff for losses suffered for a breach of contract, punitive damages are always awarded.
F
Which of the following is NOT generally required in order to have a valid contract?
Fairness of the bargain
Percy, age 17, purchased a used mobile home from a mobile home dealer for $20,000. This price, however, was twice the reasonable value of the mobile home. One month later, Percy wishes to disaffirm the contract. If the mobile home is considered a necessary, then:
If Percy keeps the mobile home, he is only liable for the reasonable value of the mobile home
You want to go sky diving and the business you plan to use requires you to sign an agreement including an extensive exculpatory clause. Which statement is correct?
If you were injured during the dive due to the company's negligence, the exculpatory clause would excuse the sky dive company from liability for its tortious conduct.
Fourteen-year-old Marsha bought $120 worth of video games 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.
Courts will enforce contracts for the benefit of all EXCEPT which of the following?
Incidental beneficiaries
Jim threatens to hit Kai in the head with a baseball bat unless Kai signs a contract agreeing to pay Jim $400 for his computer. Because of the threat, Kai signs the contract.
Jim has committed physical duress against Kai
Jim contracted with Kevin to serve as a guide for Kevin on his three-week fishing trip to Canada. The contract was made on April 1 with the trip to begin on June 1. Jim blocked out the three weeks on his calendar and refused other work for that time period. On May 1, Kevin notified Jim that he had changed his mind and would be unable to make the trip. He also refused to pay Jim any compensation. In this case:
Kevin has anticipatorily repudiated the contract and is immediately liable to Jim for damages.
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.
Paul promises Marty $1,500 if he will completely landscape Paul's yard. Which of the following would discharge Paul's obligations to pay under this contract?
Marty doesn't plant any flowers, trees or grass.
Which one of the following assignments would probably be prohibited by a court?
Mary is heavily in debt. A credit card company calls and threatens to sue. Mary orally assigns her next 5 years of bimonthly paychecks to her creditor.
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
Barry's Sport Shop calls Champs Tee Shirt Company to order 200 designer tee shirts at $2 per shirt. The next day, Barry decides he can easily sell 100 more. Before the order is filled, he calls to change the order to 300 tee shirts. Champs sends 200. Can Barry force Champs to send the additional 100?
No, because Barry does not have a writing signed by Champs Tee Shirts
Oswald, a minor, makes a contract with Albert, an adult, to buy a motorcycle. One week later, Oswald has his eighteenth birthday and shortly thereafter tells Albert he will pick up the motorcycle next week. In this case:
Oswald has expressly ratified the contract
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.
Presuming George receives Catherine's response and then starts painting, based on his conduct he has accepted her offer which includes painting the woodshed
Which of the following is a contract with a condition subsequent?
Roger bought a computer but he may return the computer within ten days and get all of his money back.
Sid contracts to put new kitchen cabinets in Ned's house. Sid repeatedly tries to install the cabinets, but Ned does not grant him access to the house. In this case:
Sid is discharged from his duties under the contract because Ned's prevention of Sid's performance constitutes a material breach.
A contract is a binding agreement that the courts will enforce
T
A disaffirmance must come either during a minor's minority or within a reasonable time after he reaches majority.
T
A liquidated damage clause that represents a reasonable approximation of the damages where the actual amount would be very difficult to determine will usually be upheld.
T
A party with the power to avoid a contract may lose that power by affirming the contract.
T
A usage of trade is a practice or method of dealing regularly observed and followed in a place, vocation, or trade.
T
An agreement to refrain from a particular trade, profession, or business is enforceable if two requirements are met: that it protects a property interest of the promisee and that the restraint is no more extensive than is reasonably necessary to protect that interest.
T
An assignee 'stands in the shoes of the assignor' so he gets whatever rights the assignor was entitled to receive.
T
An exculpatory clause attempts to excuse one from liability for her own tortious conduct.
T
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 sale contract. This is a void contract because it was entered by fraud in the execution.
T
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.
T
Belinda has a household insurance policy, which requires that she notify the insurance company within 30 days of any loss before she is eligible to receive payment for her loss. The notification requirement is a condition precedent to the insurance company's obligation to perform, even though the notification must occur subsequent to the loss.
T
By the majority view, a minor need only return any property he has received from the other party if the minor wishes to disaffirm the contract. He has no duty to return the property in the same condition in which he received it.
T
Contract rights are generally assignable.
T
For a misrepresentation to be material, it must be likely to induce a reasonable person to manifest assent or the maker must know that it would be likely to induce the recipient to do so.
T
If Marguarite promises to pay Neal $300 not to defame her, the promise is unenforceable because tort law imposes a preexisting obligation on Neal to refrain from such an act.
T
If no time is stated, an offer will terminate automatically after a reasonable period of time.
T
In order to induce a car dealer to sell her son a car on credit, Mary promises that she will pay for the son's car if the son defaults on his monthly payments to the dealership. Mary's promise must be in writing or have a sufficient electronic record.
T
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.
T
Most types of contracts are valid without being written.
T
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.
T
The contracts of a person who is adjudicated insane and placed in care of a guardian are void.
T
The difference between an express contract and an implied in fact contract is the manner in which the parties manifest assent
T
The doctrine of necessaries applies in the same way to minors and mental incompetents
T
The general rule is that an assignee stands in the shoes of the assignor. He acquires the rights of the assignor but no new or additional rights.
T
The legal effect of a usurious loan varies from state to state.
T
The student government of Baylor University has a contract with a famous rock band to perform at the university on homecoming weekend. After finding out they would be performing the day after the awesome Pigskin performance, they decided to try to get out of their obligation to avoid being embarrassed. Legally, the band cannot assign its rights and delegate its duties under this contract.
T
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.
T
Undue influence is the taking of unfair advantage of a person by reason of a dominant position based upon a confidential relationship.
T
When the rights under a contract are highly personal, they are not assignable.
T
the common law of contracts governs all contracts outside the scope of the UCC
T
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?
The An oral statement such as this is not enforceable because it is within the statute of frauds and should be written
Serafina's Boutique places an ad in the Sunday paper for finely tailored, top-of-the-line designer suits for $10,000, which is a misprint. Alice sees the ad in the paper and goes to the store to stock up on business suits for her new job. Serafina apologizes for the misprint. Alice has just finished a class in contract law and insists that the store sell her five suits $50. Alice threatens to sue Serafina for breach of contract.
The ad in the newspaper is a solicitation seeking offers, but is not an offer to sell; therefore, Alice will not be able to successfully sue for breach of contract
In which of the following situations does the parol evidence rule not apply?
The parol evidence rule does not apply in either (a) or (b)
Brooks 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 Brooks $100. Which statement describes the payment of $100?
This created an irrevocable option contract under the common law so Jennifer has one month to decide if she wants to buy the land
Marilyn contracted with Bravo Builders to build an addition to her house for $15,000. After digging the foundation, Bravo decides that it will take more work and more concrete than it had originally thought and that it will need to charge an additional $5,000 for the job. Assuming Marilyn agrees, which of the following is correct?
This is a modification of a preexisting contract, which under common law must be supported by additional consideration on the part of Bravo Builders.
When does acceptance of an offer to enter into a unilateral contract generally occur?
Upon full performance by the offeree.
Tim, who is a minor, enters into a contract with Violet, who is an adult. Which of the following is correct?
Violet may not disaffirm the contract
June offers to sell a puppy Cecil for $300 and that he can get the puppy on May 1st when it is six weeks old. Cecil says he will buy the puppy on May 1st since he will have received a paycheck at that time to cover the cost. A contract is formed:
When Cecil tells June he will buy the puppy.
An express condition is usually preceded by which of the following terms?
While After Provided that ~All of these~
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.
Steven has a typed copy of a contract, which he would like to have Thomas sign. Thomas, who needs glasses to read typing, doesn't want to sign until he has read the document, but Steven convinces Thomas to sign it anyway, because it is a "standard" contract for this type of situation. Is the contract which Thomas signed binding upon him?
Yes, because he was negligent in not ascertaining its contents.
Which of the following is least likely to be classified as a necessary item for which a minor will be held liable on a contract?
A camera
Which of the following would NOT require a writing under the statute of frauds?
A landscaper agrees to landscape the lot surrounding an office building
Which of the following is a collateral promise that needs to be in writing to be enforceable?
A mother tells a merchant to extend $1,000 worth of credit to her son and says, "If he doesn't pay, I will."
which of the following would NOT be a merchant under Article 2 of the UCC?
A person who inherits three motorcycles and wants to sell them to buy a car
Which of the following would generally be considered to be a revenue-raising licensing law?
A statute requiring the salespeople be licensed, but not establishing any educational or training requirements
Which of the following is NOT always necessary in order for a valid contract to be formed?
A writing
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. In this case:
Adam is not entitled to relief based on fraud because he was not justified in relying upon the salesman's representation that the car would seat six people.
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 am 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.
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 60-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 contained restrictions that would probably be held to be valid
In which of the following cases will an oral contract for the sale of goods of $750 be enforceable without a writing?
All of the above.
General contract law states that contracts that have to be in writing must:
All of these
there are certain transactions that are enforceable without consideration. These include:
All of these
Which of the following can meet the scienter requirement to establish fraud in the inducement?
All of these meet the requirement: Reckless indifference as to a statement's truthfulness Lack of belief in the statement's truthfulness Actual knowledge that the statement was false
Which of the following would be considered a material breach of a contract?
All of these would be material breaches.
Which of the following, if any, are requisites for fraud in the inducement?
All of these.
Ratification can occur in which of the following ways?
All of these: As implied from conduct Through failure to make a timely disaffirmance Through express language
To be effective, an offer must:
All of these: be communicated to the offeree manifest an intent to enter into a contract be sufficiently definite and certain
The Uniform Commercial Code does not apply to:
All of these: service contracts, insurance contracts, employment contracts, and contracts involving real property
Which of the following involves an invalid assignment that a court would not enforce?
An assignment of an automobile liability insurance policy accompanied by the delivery of the policy
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-deputy sheriff from a county other than the one where the bank robbery and arrest occurred.
Anita, who is a seamstress, agrees to sew a suit for Bryan, who promises in return to pay Anita $500 for the suit if he is satisfied with it. Anita completes the suit, which fits Bryan perfectly. Nevertheless, he says that he is not satisfied and refuses to accept or pay for it. If Bryan is honest in his dissatisfaction,
Anita has no recourse against Bryan, because she agreed to the subjective standard.
Aron ordered an truck bed toolbox for $249.99. Before it was delivered, the same store from which he ordered the toolbox ran an ad in the paper for the same toolbox at $179.99. Aron called the store and demanded the advertised price. If the store says "okay":
Aron must pay $179.99
Which of the following duties would not be delegable?
Arthur has a duty to teach an accounting class at a community college during the fall semester.
Chris (just a private individual) receives a printed and signed form in the mail from Wyandott Heating & Air (a business) indicating that he has placed a telephone order for a $600 heater and confirming it will be delivered within the month. Chris doesn't recall placing the order but it is a good deal and he needs a heater. Which of the following is correct?
Chris can hold Wyandott to the order
Which of the following is NOT true concerning the requirements for an effective assignment?
Consideration is required
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.
Nadira mails an offer to Cade on March 15. Cade receives the offer on March 16. Nadira mails a revocation of the offer on March 17. Cade mails a letter of acceptance on March 18. Cade receives the revocation on March 19. Nadira receives the letter of acceptance on March 20. Was a contract formed?
Yes, on March 18
You are really hungry and just want a large pepperoni pizza to share with your dog for supper. You call up your favorite restaurant, Pizza Cafe and tell them your order. They respond with "Got it! Should be ready in 30 minutes." Which statement is NOT correct?
You did not make a valid contract since you did not discuss price, payment or delivery terms
Lyle offers to sell his house to Dennis for $95,000. Dennis responds, "I will pay you $95,000 for the house if you first paint the second floor." This response could best be described as:
a counteroffer
Veronica entered into a contract with a local car dealer to have a new convertible sports car delivered to her daughter, Jasmine, as a college graduation present. In this contract, Jasmine is:
a donee beneficiary
Simone offers to pay Andrea $150 if Andrea will paint her apartment while she (Simone) is out of town on vacation for two weeks. Andrea makes no promise but tells Simone that she will think about it. While Simone is out of town, Andrea paints the apartment. This is best described as:
a unilateral contract
Under the common law, the ____ must be the mirror image of the ____.
acceptance; offer
Bill recently borrowed $50 from Ricardo for a couple of weeks. Bill, still short of cash, tells Ricardo, "I will wash and wax your car in exchange for the $50 I owe you." Ricardo tells Bill, "OK, that's great!" and performs his new duty. This situation is
an accord and satisfaction.
Paul, a contractor, has a contract to build a new office building for Bill. The contract contains a provision requiring Paul to furnish a certificate of occupancy from the city's building inspector before Bill is required to pay. This provision is:
an express condition.
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
Stark enters into a contract with a contractor to build a large shopping mall in River City. Donner will benefit from this contract since his restaurant is adjacent to the planned mall. Donner in this instance is a(n):
an incidental beneficiary
The concept of consideration in contract law includes:
an inducement to each party to make a return exchange
On November 1, Paula and Roberta enter into a contract where both parties are obligated to perform on December 31. On December 1, Paula tells Roberta, "I can, in no way, perform my duties in our contract." This statement is:
anticipatory repudiation.
To be effective, an offer must:
be communicated to the offeree.
Ezekiel wrote a letter to his friend offering to sell Fernando an 75-acre farm for $150,000. After mailing the letter, Ezekiel learns that the farm is actually worth $200,000 and changes his mind about selling. In this case, Ezekiel:
can revoke his offer at any time before Fernando accepts it, because there is no consideration to keep it open
Harold hired Blake Painters to paint his house. Blake decides he has too many jobs and delegates the duties to the Andrews Company. If Andrews does a poor job, and drips paint on Harold's flowers and windows, Harold:
can sue both Blake and Andrews
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.
Matt sells bikes at a local discount store. To encourage Bob to buy a more expensive model than he originally contemplated, Matt tells Bob, "This is the most awesome bike money can buy at this price. You can expect lots of riding pleasure." Based on this statement Bob buys the bike. A week later, before his bike is fully paid for, Bob sees a far superior bike for a lower price at another store. Bob can avoid his contract with Matt because of fraudulent misrepresentation.
cannot avoid the contract because the statements were opinions.
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.
cannot avoid the contract.
Contract damages that put the injured party in as good a position as if the other party had performed are:
compensatory damages.
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
Will wants to buy a new car. He goes to the bank to get a loan for the purchase, and signs an agreement to pay $10 per month in premiums on a term life insurance policy which names the bank as the recipient of the policy proceeds in the event of his death before the loan is repaid. The bank is a(n):
creditor beneficiary
A transfer to a third party of a contractual obligation is known as a(n):
delegation of duties
Solomon Tate enters into a contract with William Smith under the terms of which Smith is to pay Tate $7,000 and Tate is to build a garage, repair a boat, and build a doghouse. If the doghouse has not yet been built, which term describes the type of contract in existence?
executory contract
A(n) __________ contract is one in which the terms have been definitely and specifically stated and agreed upon
express
Bob, the tax accountant, promises to do Marge's individual federal, state, local, and gift taxes for the year and also the tax returns for her business. He completes all but the gift taxes. Under the substantial performance doctrine, Marge will:
have to pay Bob for all but the gift tax return.
Archie bets his friend Jerry $100 that the Packers will win the next Super Bowl. This is an:
illegal wagering agreement
A(n) ________ is a third party who obtains possible benefits but no rights under a contract.
incidental beneficiary
Albert found a stone in his yard and took it to Bob, a jeweler, for evaluation. Although Bob knew what the stone was, he told Albert that he wasn't sure as to the nature of the stone, but that 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.
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.
Orwin, owner of a used furniture store, gives Maggie a signed offer to buy her living room furniture for $800. This offer:
is irrevocable for a reasonable time, not to exceed three months, even if there was no consideration
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
A contractor and Southampton, Inc. have a contract, which calls for the contractor to build a building with the completion by June 15. If the building is not completed by that date, the contract calls for the contractor to pay $100 per day in damages. The $100 per day is:
liquidated damages.
Robert Briscoe is 17 years old. He lies to Bouyers Auto 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?
may disaffirm and get his money back
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
Cornelio purchases an SUV from Barron Auto Sales. Cornelio is only 17 years of age. He wrecks the vehicle while off-roading and attempts to disaffirm the contract and have Barron repay him all that he has paid. In the majority of jurisdictions, Cornelio:
may simply return the vehicle and get his money
The usual remedy for breach of contract is:
money damages.
Marilyn read an ad in the school newspaper offering a thousand dollar swimming scholarship to anyone who could swim 500 laps in the school pool. Marilyn called the advertiser and began swimming. She has reached lap number 460; she feels great and is sure she can make it all the way.
must permit Marilyn the opportunity to finish her attempt to swim the 500 laps, or pay damages if he interferes with the completion of the laps
At age 17, Wanda purchased an expensive sound system from Lectronic City. If Wanda wishes to ratify this contract, Wanda:
must reach the age of majority and ratify the contract as a whole
Remo helped Hank study all night for an important exam. After Hank got an "A" on the exam, he told Remo, "I will give you $10 for helping me get a good grade." Remo said, "Thanks, I'll take it." There is:
no contract because there is no valid consideration
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 due to mistake in meaning of terms
Harry said to Marge, "I have a ring once owned by Marilyn Monroe. Would you like to buy it for $500?" Marge pays for the ring, but the next day a friend tells her that Harry had recently purchased the ring at a local store. Marge enjoys wearing the ring and wears it constantly for twelve months. Finally, she goes to Harry and says, "Here is the ring you lied about. Give me my $500." Most likely Marge will:
not get her money back since she has affirmed the contract by taking an unduly long time to disaffirm.
The Code greatly alters the common law doctrine of material breach by adopting what is known as the:
perfect tender rule.
The Uniform Commercial Code:
presumes the parties are acting in good faith and in a commercially reasonable manner
The privilege to play tennis and socialize at the Capital City Country Club (CCCC) is obtained through application, references, resumes, and fees. Steven and Chanel want to assign the remaining 4 years of their 5-year membership to Charles and Prissy so that Steven and Chanel may join the posh Silver Hawk Tennis and Polo Club. CCCC sues to enjoin Steven and Chanel from assigning their membership. CCCC will most probably:
prevail because the parties intended the contract to be personal and non-assignable
A(n) _________ is a measure designed to protect the public from unqualified practitioners
regulatory license
Marcus is a salesman for Outdoor Life. He is telling a potential customer the virtues of a particular tent, by making the claim that "It's tougher than a Baylor bear!" If this customer buys the tent, only to find it destroyed by bears in the campground.
she does not have a valid claim because Marcus' talk was just sales puffery.
Bartow signed a contract to coach baseball for Washington High for a period of three years. After two years he is offered and accepts an assistant coaching position at State University. Contract law will not allow Washington High to ask for:
specific performance of his contract.
Jimmy made a contract to sell his townhouse to Thomas for $180,000. Two days later Jimmy changed his mind after discovering that he could have sold the property to another buyer for an additional $30,000. Thomas sues and asks the court to have the property conveyed to him at the price of $180,000. Thomas is seeking:
specific performance.
Addison is approached by Archer Enterprises to work as a consultant for a period of two years, and he signs a two year agreement. This contract is governed by:
state common law
Abner 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 the terms of the agreement include a grossly unreasonable price and he 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
Scienter is a legal term which means:
that the seller had knowledge that his statements were false and the statements were made with the intention to deceive
Darrell owns a parcel of land that is encumbered by a mortgage held by the First National Bank. Darrell agrees to sell the land to Paul for $50,000. Darrell and Paul together go to the First National Bank to discuss the sale and purchase with the banker. Darrell, Paul, and the banker sign an agreement stating that Paul will assume the mortgage and that Darrell will be discharged from all further liability on the mortgage. In this case:
the agreement among the three is a novation
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.
the agreement will not be enforced by the courts because it violates public policy
Darla offers to pay Edward $6,000 for Edward's car, provided that Darla receives that much from her uncle's estate, which is currently being probated. She expects to know for sure how much she will receive within a week or so.
the consideration from Darla to Edward is the promise of $6,000 subject to a condition
Alatan owns a building supply store in Russ County. His trade extends throughout River City, the largest city in Russ County, but not beyond the county limits. He sells his store to Hilary and, as part of the transaction, agrees not to engage in the same business anywhere in River City for a period of two years. In this case:
the geographic restraint is reasonable
An arm's length transaction is one in which:
the parties are acting in their own self-interest.
Clint contests the amount of a bill he received from Car Care Specialists. Under the Restatement, settlement of the claim:
there would be valid consideration for the modification if at the time of the settlement the claim was doubtful because of uncertainty as to the facts
A and B enter into a contract on January 1 of this year. A's friend C tells A, "The law generally restricts the time within which an action can be brought by either party to a contract." C's statement is:
true because of statutes of limitations.
Barbara owes Arturo $2,000. On July 1, Arturo assigns the debt to Charles. Thereafter on July 15, Arturo assigns the same right to Dennis, who in good faith gives value for it and knows nothing about the first assignee. Dennis immediately notifies Barbara of the assignment.
under the minority rule, David has priority
Adonia and Merv enter a contract for the sale of a computer. If Merv breaches the contract and Adonia waits until the time specified in the statute of limitations has passed, the contract is now:
unenforceable
A ___________ is a law establishing a maximum rate of permissible interest for which a lender and borrower of money may contract
usury statute
Elsie is 88 years old and under the legal guardianship of her daughter. One day Elsie receives a telephone call from a health insurance salesman and purchases a $400-a-month Medigap insurance policy. This contract is:
void
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
Asher is involved in an automobile accident and is injured. While he is unconscious, the police call an ambulance which takes hime to a hospital. Asher is treated at the hospital and released a day later. The hospital sends him a bill for $4,500, which Asher refuses to pay, claiming it is too high and he never consented to the treatment because he was unconscious. Asher:
will have to pay the hospital the reasonable value of their services because this is a quasi-contractual agreement
Don offers to sell his diamond ring to Emily. Diane overhears the offer and says, "I accept the offer."
Diane cannot accept because the offer wasn't made to her
Which of the following results in a void contract?
Duress by physical force.
A valid contract may be enforceable for which reason(s)?
Both failure to satisfy the statute of frauds and running of the statute of limitations
The UCC provides missing contract terms in which of the following instances?
Both failure to specify the price and failure to specify the place of deliver
In which of the following situations will a court grant specific performance?
Both in cases involving breach of contract for the sale of real property and where goods are unique or rare.
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 contracts is covered by Article 2 of the Uniform Commercial Code?
The sale of a new car
Which of the following would not be enforceable without additional consideration?
The settlement of an undisputed debt.