BUS302: Exam 1 Study Guide
Goods are to be sent from Buffalo, NY to Raleigh, NC by UPS using the delivery terms F.O.B. Buffalo, NY. Where does tender occur?
Where the goods are shipped
Which of the following promises in consideration of marriage would be outside the statute of frauds? a. John and Joan mutually promise to marry each other in a formal ceremony on June 23. b. John and Mary mutually agree that their marriage shall not affect the existing property rights of the other. c. In consideration of Joan's promising to marry him, Dwight promises to pay her an allowance and to give her all of his property upon his death. d. Joan promises to release a money judgment against Steven in consideration of his marrying her.
a. John and Joan mutually promise to marry each other in a formal ceremony on June 23.
If the buyer makes a wrongful rejection, the seller may resell the goods in good faith and in a commercially reasonable manner and the seller may recover from the buyer the difference between the contract price and the resale price, plus any incidental damages, minus expenses saved. a. True b. False
a. True
Implied-in-fact conditions must fully and literally occur, and they are understood by the parties to be part of the agreement. a. True b. False
a. True
In interpreting a contract, terms which have been separately negotiated are given priority over standardized pre-printed terms. a. True b. False
a. True
In most sales, the buyer has the right to inspect the goods before he pays. a. True b. False
a. True
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. a. True b. False
a. True
In the absence of agreement, payment is due at the time and place the buyer is to receive the goods, even though the place of shipment is the place of delivery. a. True b. False
a. True
Incidental damages are those that arise directly out of the breach. a. True b. False
a. True
Jared drives his car knowing that the brakes are defective and has an accident in which the car is damaged and he is injured. He will likely be unable to recover from the manufacturer, because he voluntarily assumed the risk of the defective brakes. a. True b. False
a. True
Jim promises to marry Cynda if Cynda will buy him a new Ferrari for his birthday. If this promise is made orally, it is not enforceable. a. True b. False
a. True
Mike inherited some antiques. Pat agrees to buy them. In the contract, Mike and Pat agree to value the antiques at whatever the Sotheby's representative says. If the valuation is much higher than either of them anticipated, Pat: -has to buy at the price set by the Sotheby representative. A finance lease is a special type of lease transaction that generally involves three parties instead of two. a. True b. False
a. True
Morris ordered 1,000 sq. ft. of green carpet from RS Company. In error, RS Company shipped 1,000 sq. ft. of gold carpet. In this case, the risk of loss remains with the seller until the seller remedies the defect or until Morris accepts the gold carpet. a. True b. False
a. True
Most types of contracts are valid without being written. a. True b. False
a. True
On the seller's breach, if the buyer makes substitute purchases in good faith and without unreasonable delay, she may recover, as damages, the difference between the cost of cover and the contract price, plus incidental damages but minus any expenses she saved because of the seller's breach. a. True b. False
a. True
Physical compulsion and improper threats are the two basic types of duress. a. True b. False
a. True
Restitution can be obtained where a voidable contract is avoided. a. True b. False
a. True
Sean breaches an agreement in his employment contract with Inmett Corporation by also working for Inmett's major competitor. Sean's promise to Inmett of his exclusive personal services may be enforced by injunction. a. True b. False
a. True
Substituted contracts immediately discharge the original contracts. a. True b. False
a. True
The Code provides that its remedies shall be liberally administered to place the aggrieved party in a position as good as the one she would have occupied had the defaulting party fully performed. a. True b. False
a. True
The difference between an express contract and an implied in fact contract is the manner in which the parties manifest assent. a. True b. False
a. True
The executor-administrator provision applies to promises of an executor of a decedent's estate to the decedent's creditors. a. True b. False
a. True
The parol evidence rule does not prevent the use of evidence that a party would like to use to establish the defense of fraud, duress, or undue influence. a. True b. False
a. 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. a. True b. False
a. True
The parties, by agreement, may divide the risk and shift the allocation of risk. a. True b. False
a. True
The purpose of reliance damages is to place the injured party in a position as good as he would have held if the contract had not been made. a. True b. False
a. True
The statute of frauds applies to executory contracts only. a. True b. False
a. True
The word "merchantability" must be mentioned in a disclaimer of an implied warranty of merchantability a. True b. False
a. True
Title to existing, identified goods can pass whenever the parties agree it will pass. a. True b. False
a. True
Under comparative negligence, the court apportions damages between parties in proportion to the degree of fault or negligence it finds against them. a. True b. False
a. True
Undue influence is the taking of unfair advantage of a person by reason of a dominant position based upon a confidential relationship. a. True b. False
a. True
When a breach of contract occurs, the nonbreaching party is required to take reasonable steps to lessen or mitigate the damages that he may sustain. a. True b. False
a. True
When existing goods are identified to the contract of sale, the buyer acquires a special property interest in the goods. a. True b. False
a. True
Where a contract is unenforceable because of the statute of frauds, a party may recover the benefits conferred on the other party in reliance on the contract. a. True b. False
a. True
A contract that binds the offeror to keep an offer open for a specified period of time is known as: a. an option. b. a unilateral contract. c. promissory estoppel. d. a offer with reserve.
a. an option.
Refusal of a tender of performance by one party to a bilateral contract will: a. be treated as a repudiation, excusing the tendering party from further duty of performance under the contract. b. not discharge either party from further duty of performance under the contract. c. be considered a condition subsequent. d. None of these.
a. be treated as a repudiation, excusing the tendering party from further duty of performance under the contract.
Possible remedies for a breach of contract include: a. compensatory damages. b. fines. c. incarceration. d. All of these. e. None of these.
a. compensatory damages.
Lynne agrees to buy Harriette's farm for $200,000 and puts $20,000 down. Then Lynne learns she is allergic to hay and repudiates the contract. If Harriette can sell the farm in a good faith transaction for $190,000 a month later, she may: a. keep $10,000 of Lynne's down payment. b. sue for specific performance. c. keep Lynne's $20,000. d. not keep any of the down payment money.
a. keep $10,000 of Lynne's down payment.
Byron and Merv enter a contract for the sale of a computer. If Merv breaches the contract and Byron waits until the time specified in the statute of limitations has passed, the contract is now: a. unenforceable. b. voidable. c. void. d. executory and enforceable.
a. unenforceable.
Daniel, a cabinetmaker, contracts to make a china cabinet to Lora's satisfaction and Lora promises to pay Daniel $2,800 for the cabinet if she is satisfied with it when completed. Daniel completes the cabinet in a workmanlike manner using the wood Lora has chosen. If Lora tells Daniel that she is not satisfied with the cabinet and refuses to accept or pay for it, Daniel is entitled to recover from Lora the reasonable value of the cabinet if her dissatisfaction is unreasonable. a. True b. False
b. False
Equitable remedies are available any time the plaintiff chooses them over money damages. a. True b. False
b. False
Equitable remedies result in money awards to the plaintiff. a. True b. False
b. False
Fraud in the inducement will render an agreement void. a. True b. False
b. False
If there is a novation, the original promisor remains liable to the original promisee if the new promisor fails to perform. a. True b. False
b. False
In a sale of goods, the seller's tender of performance does not have to conform to the Code's perfect tender rule. a. True b. False
b. False
In order to be legally binding, a contract must be in writing. a. True b. False
b. False
Leslie, the owner of a shoe store, purchased 500 Model XT-50 running shoes from her supplier, but a price was not stated in the contract. The contract is voidable at Leslie's option until the parties agree on a price. a. True b. False
b. False
Parol evidence refers only to any oral evidence that is outside an integrated written contract and not incorporated into it, either directly or by reference. a. True b. False
b. False
Past actions unbargained for by the parties in an agreement can become valid consideration for a contract. a. True b. False
b. False
Robert paid William $1,000 for a rare first edition of an Edgar Allen Poe novel. The sales contract states that the book is to be delivered within ten days. William, however, refused to deliver the book as promised. In order to sue for specific performance under the UCC, Robert must prove that money damages will not be adequate compensation for his loss. a. True b. False
b. False
Since the purpose of remedies under the Code is compensation, punitive damages are generally available. a. True b. False
b. False
The contract between the buyer and the seller cannot provide for any additional remedies other than those specified in the Code. a. True b. False
b. False
The delivery terms "ex-ship" and "no arrival, no sale" indicate that the contract is a shipment contract. a. True b. False
b. False
The distinction between a void and voidable title is not important in determining the rights of good faith purchasers of goods a. True b. False
b. False
The statute of frauds generally requires that both parties sign the writing. a. True b. False
b. False
To fully compensate a plaintiff for losses suffered for a breach of contract, punitive damages are always awarded. a. True b. False
b. False
Wayne sells James a forklift, but retains a security interest in the equipment. Wayne no longer has an insurable interest in the forklift since title has passed to James. a. True b. False
b. False
With respect to horizontal privity, the strict liability in tort of manufacturers and other sellers extends to only buyers, users, and consumers, but not to injured bystanders. a. True b. False
b. False
James threatens to hit Kenneth in the head with a baseball bat unless Kenneth signs a contract agreeing to pay James $400 for his saw. Because of the threat, Kenneth signs the contract. a. This contract is voidable at Kenneth's option. b. James has committed physical duress against Kenneth. c. This is an example of economic duress. d. All of these.
b. James has committed physical duress against Kenneth.
Vladimir entered into a contract to buy Daniel's collection of rare stamps. Vladimir mailed payment of $10,000 for the stamps to Daniel, but now Daniel tells Vladimir, "I'll never part with these stamps." Are the following remedies available to Vladimir? a. Restitution: No; Specific Performance: No b. Restitution: Yes; Specific Performance: Yes c. Restitution: No; Specific Performance: Yes d. Restitution: Yes; Specific Performance: No
b. Restitution: Yes; Specific Performance: Yes
Rebecca sees a pair of beautiful silver shoes in a store window. She goes in and tells the shopkeeper, "If I am asked to the prom, I will buy those shoes. Please hold them for me." If the shopkeeper signs a note that says, "Will hold for Rebecca silver shoes, style 1028, size 8," will he have to honor that promise? a. Yes, there is a contract with a condition subsequent. b. Yes, and there is a condition precedent to the contract of sale. c. No, a contract is formed after Rebecca is asked to the prom. d. No, there is no contract but simply an illusory promise.
b. Yes, and there is a condition precedent to the contract of sale.
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? a. No, because it explains the agreement. b. Yes, it would be admissible, because it is subsequent to the written agreement. c. No, because it contradicts the terms of the contract. d. No, because it changes the agreement.
b. Yes, it would be admissible, because it is subsequent to
Under the common law, the __________ must be the mirror image of the __________. a. offer, acceptance. b. acceptance, offer. c. contract, offer. d. contract, consideration.
b. acceptance, offer.
The concept of consideration in contract law includes: a. that each party to a contract must unintentionally exchange a legal benefit. b. an inducement to each party to make a return exchange. c. that each party takes out an insurance bond if the possibility of damages is above $500. d. All of these.
b. an inducement to each party to make a return exchange.
A contract in which both parties exchange promises is a: a. quasi contract. b. bilateral contract. c. unilateral contract. d. voidable contract.
b. bilateral contract.
By holding a knife to his back, Ed compelled Sean to sign a contract advantageous to Ed. This contract was entered under: a. undue influence. b. physical duress. c. false representation. d. improper threats.
b. physical duress.
An obligation imposed by law where there has been no agreement or expression of assent by word or act on the part of either party involved is a(n): a. express contract. b. quasi contract. c. implied in fact contract. d. void contract.
b. quasi contract.
A __________ is the refusal to accept an offer. a. revocation. b. rejection. c. counteroffer. d. statutory irrevocability
b. rejection.
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: a. true because of covenants not to sue. b. true because of statutes of limitations. c. false. d. true because of the law of repudiation.
b. true because of statutes of limitations.
If the goods or the tender of delivery fail in any respect to conform to the contract, the buyer may:
Any of these
Which of the following illustrates a shipment contract?
FOB Place of shipment
When is a buyer deemed to have accepted goods that are delivered pursuant to a contract?
If he fails to reject the goods after he has had a reasonable opportunity to inspect them.
Who among the following is most likely not considered a merchant according to Article 2 of the UCC?
Kay who sells her 3-year-old fishing boat to her neighbor.
Alex sees Mona's ring, and he thinks it is very valuable. He uses physical duress to cause her to give him the ring, and he quickly sells it to unsuspecting Hanna's Antique Jewelry Shop for $5,000. A month later, Mona discovers her ring on sale at Hanna's. Can Mona get the ring back?
Yes, since Alex had void title to the ring.
If no time is stated, an offer will terminate automatically after a reasonable period of time. a. True b. False
a. True
Which of the following promises does not have to be evidenced by a writing or electronic record in order to be enforceable? a. Mindy's agreement with Susan to buy her bike for $400. b. Dad's promise to the credit union that he will make payments on his son's truck. c. Stewart's promise to work for Austin for a two-year period. d. Jones's agreement with Smith to sell his condominium for $100,000.
a. Mindy's agreement with Susan to buy her bike for $400.
If the buyer is insolvent and has not paid for goods it has received, the seller may reclaim the goods. a. True b. False
a. True
Destruction of the subject matter has what effect on the offer? a. The offer is terminated. b. This creates an impossibility of fact that does not terminate the offer. c. The offer is delayed until additional subject matter can be located. d. The offer is merely delayed under the "Hardship Rule."
a. The offer is terminated.
A basic element of fraud is a false representation or a misrepresentation. a. True b. False
a. True
A buyer who does not cover is precluded from consequential damages that could have been prevented if the buyer did obtain cover. a. True b. False
a. True
A buyer's incidental damages include reasonable expenses or commissions in effecting cover. a. True b. False
a. True
A contract is a binding agreement that the courts will enforce. a. True d. False
a. True
A counteroffer operates as a rejection of the original offer. a. True b. False
a. True
A disaffirmance must come either during a minor's minority or within a reasonable time after he reaches majority. a. True b. False
a. True
A lessor retains title to the goods and has the right to recover possession of them upon default by the lessee. a. True b. False
a. True
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. a. True b. False
a. True
A non-contractual promise may be enforceable where there has been justifiable reliance on the promise. a. True b. False
a. True
A number of courts have used the doctrine of promissory estoppel to displace the requirement of a writing by enforcing oral contracts within the statute of frauds. a. True b. False
a. True
A valid contract is one that meets all of the requirements of a binding contract. a. True b. False
a. True
After passage of a week, the buyer of six crates of strawberries will be deemed to have accepted the goods. a. True b. False
a. True
After the coronation of Edward VII was postponed and parties who had entered into contracts in anticipation of the event filed numerous suits, the doctrine of frustration of purpose evolved. a. True b. False
a. True
Albert has a contract to buy 100 tables from Bartholomew at a price of $50 a table. Five days before Bartholomew is to deliver the tables, he calls Albert to say that he is sorry but $50 won't cover his costs, and he will now need at least $75 a table. Albert agrees, because he needs the tables for his special sale. The modified contract is enforceable even though Albert isn't getting any new consideration, so long as Bartholomew is acting in good faith and the agreement to the new price is put in writing. a. True b. False
a. True
An acceptance is generally effective upon dispatch. a. True b. False
a. True
An accord and satisfaction discharges the original debt. a. True b. False
a. True
An express warranty may consist of a sample. a. True b. False
a. True
An implied warranty exists by operation of law. a. True b. False
a. True
An oral contract for the transfer of an interest in land may be enforced if the party seeking enforcement has so changed his position in reasonable reliance on the contract that a court can prevent injustice only by enforcing the contract. a. True b. False
a. True
An unauthorized alteration of ANY of the material terms in a written contract discharges the entire contract. a. True b. False
a. True
Article 2A of the UCC affords special treatment for consumer leases. a. True b. False
a. True
Bradley buys a television set that turns out to be stolen. He can sue the seller for breach of warranty. a. True b. False
a. True
Death or insanity of either the offeror or the offeree ordinarily terminates the offer. a. True b. False
a. True
Goods that have been entrusted to a merchant may be sold by that merchant even when the merchant has been told not to sell the goods, and when a merchant sells such goods to a buyer in the ordinary course of business, that buyer has title that is superior to the title of the original owner who entrusted them to the merchant a. True b. False
a. True
If no place of tender is indicated by the contract, delivery is presumed to be made at seller's place of business. a. True b. False
a. True
Tender requires that the seller, at a reasonable time:
all of these
Charles says to Wes, "If you will mow my lawn, I will give you $15." Wes says nothing, but he mows the lawn. No contract exists under this fact situation, because Wes did not accept Charles's offer. a. True b. False
b. False
Contractual incapacity excuses a minor from an obligation to pay for necessaries. a. True b. False
b. False
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." a. Under Article 2 of the UCC, Arnold is a merchant making a firm offer. Hence there is a contract. b. Bob has made a counteroffer and hence there is no contract. c. Any indefinite provisions in the contract between Arnold and Bob will be supplied by Article 2 of the UCC. d. Bob has rejected the terms of the original offer, but there is still a contract.
b. Bob has made a counteroffer and hence there is no contract.
Samuel Tate enters into a contract with Bill 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? a. Illusory contract. b. Executory contract. c. Executed contract. d. Quasi contract.
b. Executory contract.
A breach of contract always discharges the injured party from performance under the contract. a. True b. False
b. False
A condition subsequent is a much more frequent occurrence than a condition precedent. a. True b. False
b. False
A contract to pay for lawn care services costing $1,500 would have to be in writing or in proper electronic form to be enforceable. a. True b. False
b. False
A contract to sell five acres of land is governed by Article 2 of the UCC. a. True b. False
b. False
A lease is the transfer of title to goods from seller to buyer for a price a. True b. False
b. False
A quasi contract is another name for an oral contract. a. True b. False
b. False
All contractual promises are absolute promises to perform. a. True b. False
b. False
An agreement for the purchase of an illegal substance will be enforced by the courts if all other elements of the contract are present. a. True b. False
b. False
Barry buys a car from a dealer, which is sold to him "as is" and "with all faults." The next day, the engine blows up. Barry can sue the dealer for breach of the implied warranty of fitness. a. True b. False
b. False
Which of the following would NOT require a writing under the statute of frauds? a. An agreement creates an easement to run cables across adjoining land. b. A renter agrees to rent a building for a 5-year period. c. A landscaper agrees to landscape the lot surrounding an office building. d. The buyer agrees to pay $10,000 for a piece of real estate.
c. A landscaper agrees to landscape the lot surrounding an office building.
Which of the following is NOT always necessary in order for a valid contract to be formed? a. Legality of purpose. b. Competent parties. c. A writing. d. Mutual assent.
c. A writing.
A valid contract may be unenforceable for which reason(s)? a. Failure to satisfy the statute of frauds. b. Running of the statute of limitations. c. Both failure to satisfy the statute of frauds and running of the statute of limitations. d. A valid contract is always enforceable.
c. Both failure to satisfy the statute of frauds and running of the statute of limitations.
In determining the meaning of a contract, which of the following will have first priority? a. Usage of trade. b. Course of dealing. c. Express terms. d. Course of performance.
c. Express terms.
Under the parol evidence rule, which of the following types of evidence may be used to vary or contradict the written agreement? a. Prior oral or written agreements. b. Contemporaneous oral or written agreements that change the contract. c. Subsequent oral or written agreements modifying the original agreement. d. Two of these but not all three.
c. Subsequent oral or written agreements modifying the original agreement.
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: a. can rescind the agreement. b. can sue Linda for detrimental reliance. c. cannot void the contract. d. could rescind the agreement if she was mistaken in her estimate of the value of the auto.
c. cannot void the contract.
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. The court found: a. the seller was in breach and must pay damages. b. the seller was guilty of fraud in the inducement for failing to disclose to the buyer which ship would contain the goods. c. no contract existed due to mistake in meaning of terms. d. none of these.
c. no contract existed 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: a. not get her money back since she is a good faith purchaser of merchandise. b. get her money back since Harry's statement was fraudulent. c. not get her money back since she has affirmed the contract by taking an unduly long time to disaffirm. d. not get her money back since she should have investigated the facts about the ring more carefully.
c. not get her money back since she has affirmed the contract by taking an unduly long time to disaffirm.
Howard needs a truck to pull a 2,000-pound trailer. Gordon tells Howard, "My truck will pull a 2,000 pound trailer with ease." Relying on Gordon's statement, Howard buys the truck, but it will not pull a 2,000-pound trailer. If Gordon did not intend to deceive and Howard sues for nonfraudulent misrepresentation, he can ask for: a. out-of-pocket damages plus punitive damages. b. nominal damages because Howard should have known the capacity of the truck. c. out-of-pocket damages, plus consequential damages. d. punitive damages, but not out-of-pocket damages.
c. out-of-pocket damages, plus consequential damages.
Hal promises not to foreclose on a mortgage that he holds on an office complex that Christopher owns. In reliance on this promise, Christopher spends $200,000 to remodel the complex. Which of the following is correct with regard to Hal's promise? a. Hal's promise not to foreclose is unsupported by consideration. b. Hal's promise is non-contractual. c. Hal's promise may be enforced against him based upon the doctrine of promissory estoppel. d. All of these.
d. All of these.
To be effective, an offer must: a. be sufficiently definite and certain. b. be communicated to the offeree. c. manifest an intent to enter into a contract. d. All of these. e. None of these.
d. All of these.
Which of the following, if any, are requisites for fraud in the inducement? a. False representation of a fact that is material. b. Representation is made with knowledge of its falsity and the intention to deceive. c. The representation is justifiably relied on. d. All of these. e. Two, but not all of these.
d. All of these.
In which of the following situations does the parol evidence rule not apply? a. Where a typographical error occurs in the document and obviously does not represent the agreement of the parties. b. Where one of the parties to the contract lacks contractual capacity. c. The parol evidence rule applies in both of the above situations. d. The parol evidence rule does not apply in either (a) or (b).
d. The parol evidence rule does not apply in either (a) or (b).
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!" Ricardo's performance of his new duty will be: a. an accord. b. a novation. c. a rescission. d. a satisfaction
d. a satisfaction
George has been declared incompetent by the court and is under the care of his sister. Unknown to his sister, George rents the 10,000-seat civic center for his birthday party. George's contract to rent the civic center is best described as: a. a quasi contract. b. an enforceable contract. c. a voidable contract. d. a void contract.
d. a void contract.
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 building inspector before Bill is required to pay. This provision is: a. a condition subsequent. b. an implied-in-law condition. c. an implied-in-fact condition. d. an express condition.
d. an express condition.
Contract damages that put the injured party in as good a position as if the other party had performed are: a. consequential damages. b. incidental damages. c. liquidated damages. d. compensatory damages.
d. compensatory damages.
The requirement that each party to a contract must intentionally exchange something of value as an inducement to the other party to make a return exchange is known as: a. legality of object. b. mutual assent. c. contractual capacity. d. consideration.
d. consideration.
Steven makes a material misrepresentation of fact regarding his motorcycle to Thelma who agrees to buy the motorcycle based upon the misrepresentation. This contract is: a. executed. b. void. c. unenforceable. d. voidable.
d. voidable.
A contract that does not satisfy the writing requirement of the Article 2 statute of frauds, but which is otherwise valid, is enforceable in which of the following situations: a. Where the goods have been delivered and accepted. b.Where payment has been accepted. c.Where the goods have been specially manufactured and are not suitable for resale in the ordinary course of business. d.All of these are situations where the contract would be enforceable.
d.All of these are situations where the contract would be enforceable.
The Code defines __________ as "honesty in fact in the conduct or transaction concerned."
good faith
A sale exists after the buyer takes:
the title to the goods
When delivery is to be made without moving the goods, unless otherwise agreed, title passes:
when the goods are identified if they were not identified at the time of contracting.