BUS LAW CH. 10 Review (CONSIDERATION)

Which of the following is true regarding whether an accepted offer to satisfy a debt by paying only part is consideration?

A dispute over an unliquidated debt may be settled for less than the full amount if the parties enter into an accord and satisfaction.

Which of the following represents a valid accord and satisfaction?

A dispute over an unliquidated debt may be settled for less than the full amount if the parties enter into an accord and satisfaction.

A promise to do something that you are already obligated to do is _____________.

A promise to do something that you are already obligated to do is not valid consideration.

Yolanda agrees to bathe and groom Wendy's dog, Fluffy, for $20. Yolanda agreed to the price before seeing Fluffy, a very plump, grouchy Pembroke Welsh Corgi dog with lots of hair. Yolanda tells Wendy that if she is going to groom Fluffy, the price will be $30. Wendy agrees although noting that the dog is named "Fluffy." Yolanda bathes and grooms Fluffy, but Wendy will only pay $20. Which of the following is correct regarding Yolanda's entitlement to the extra $10?

A promise to do something that you are already obligated to do is not valid consideration.

Sam offers Betty his bicycle for $75. Which of the following is an example of an illusory promise on the part of Betty?

An illusory promise involves a situation in which a party appears to commit to do something but really has not committed to anything.

Which of the following is true regarding illusory promises?

An illusory promise is not consideration.

Which of the following is true of a requirement contract under the UCC?

Because such contracts are valued by merchants, under the UCC requirement contracts are valid with the limitation that the requirement must be made in "good faith."

Which of the following consists of something of value given to another party in exchange for something else of value?

Consideration can be anything, as long as it is the product of a bargained-for exchange.

Which of the following is what a person will receive in return for performing a contractual obligation?

Consideration is what a person will receive in return for performing a contract obligation.

Which of the following are examples of consideration?

Consideration may be a benefit to the promisor, a detriment to the promisee, a promise to do something, or a promise to refrain from doing something.

Which of the following are reasons for disregard of the preexisting-duty rule?

Exceptions to the preexisting-duty rule include unforeseen circumstances, additional work, and agreements falling under the UCC involving the sale of goods.

For a court to enforce a promise, _____________ must offer consideration.

For a court to enforce a promise, both sides must offer consideration.

Which of the following is true under the UCC regarding checks marked "paid-in-full"?

If a business does inadvertently cash a "paid-in-full" check, the business has 90 days from the date it cashed that check to offer repayment in the same amount to the debtor.

In a bilateral contract, the consideration for each promise is _____________.

In a bilateral contract (a promise for a promise), the "consideration" for each promise is a return promise.

In a[n] _____________ debt, there is no dispute about the fact that money is owed and the amount of money owed.

In a liquidated debt, there is no dispute about the fact that money is owed and the amount of money owed.

In a unilateral contract, the consideration for a promise is _____________.

In a unilateral contract (a promise for an act), one party's consideration is the promise and the other party's consideration is the act.

Which of the following is true of an output contract under common law?

No quantity is stated, and under common law, there is lack of consideration.

Which of the following is an exception to the rule requiring consideration?

One exception to the rule requiring consideration is promissory estoppel.

Which of the following is true regarding past consideration?

Past consideration is no consideration at all.

Which of the following would not be considered an example of consideration?

Performance of a duty you are obligated to do under the law is not good consideration.

When an accord and satisfaction is at issue, the _____________ is the new agreement to pay less than the creditor claims is owed.

The accord is the new agreement to pay less than the creditor claims.

Courtney, who does not keep up with the price of current technology, agrees to buy a used computer from Jake for $2,500. Later, Brice tells Courtney that she made a really bad deal and that she could get an even better new computer for no more than $1,000. Courtney tells Jake that she is not giving him any money because he was not fair with her. Which of the following is the most likely result if Jake sues Courtney alleging breach of contract?

The court seldom considers adequacy of consideration.

Which of the following is true regarding the adequacy of consideration?

The court seldom considers adequacy of consideration.

Mary has a pet shop and verbally orders 50 packages of dog food for puppies from a supplier for a total cost of $1,000. Later she calls the supplier and changes the order to food for adult dogs. When 50 packages of puppy food arrive, Mary complains. The supplier tells her that the modification was not valid because nothing was put in writing. Which of the following is the correct resolution of the dispute?

Under Article 2 of the UCC (sale of goods), an agreement modifying a contract needs no consideration to be binding.

Sam, who has a retail clothing store, orders 50 white shirts from XYZ manufacturer. He later calls a representative of XYZ and requests that blue shirts be sent instead. The representative agrees. Sam gets white shirts and complains. The XYZ representative says that blue shirts are more expensive because they are in greater demand and that there was no consideration for the modification to the contract. Which of the following is the correct resolution of the dispute?

Under Article 2 of the UCC (sale of goods), an agreement modifying a contract needs no consideration to be binding.

Under Article _____________ of the UCC, an agreement modifying a contract needs no consideration to be binding.

Under Article 2 of the UCC (sale of goods), an agreement modifying a contract needs no consideration to be binding.

Laura, who has a dress shop, likes a certain style of dress and reaches an agreement with ABC Co., the designer and manufacturer of the dress, that she will purchase all the dresses of that style that ABC Co. can produce for $100 each. Later, ABC Co. learns of Sam, Laura's competitor, who is willing to pay double what Laura agreed to pay for the dresses. ABC Co., attempts to avoid the agreement with Laura on the basis that the agreement with Laura was vague and that consideration was lacking. Which of the following is the most likely result?

Under UCC Section 2-306, output contracts are permitted for the sale of goods.

Which of the following is true of a requirements contract under common law?

Under common law, a requirement contract would be void because the buyer has made no commitment and, therefore, there is no consideration.

In a[n] _____________ debt, the parties either dispute the fact that any money is owed or agree that some money is owed but dispute the amount.

unliquidated