Test 3

The most common way to terminate contractual duties is by a. repudiation. b. agreement. c. failure of a condition. d. performance.

D

Bagels Bakery enters into a contract with Cineplex for discounted tickets for Bagels's employees. When Cineplex does not provide the tickets, Bagels enters into a contract with DigiMovies for the same service at a lower price. In a suit for breach, Bagels might be awarded nominal damages to a. establish, as a matter of principle, that Cineplex acted wrongfully. b. provide Bagels with funds for its loss of the bargain. c. provide Bagels with funds for a foreseeable loss beyond the contract. d. punish Cineplex and set an example to deter others from similar acts.

A

Baez is employed by Credit Agency Inc. On the termination of Baez's position, Credit Agency pays Baez $10,000 to agree not to disclose the employer's confidential information. Later, Baez sells the information to Debt Records LLC for $100,000. In a suit for breach, Credit Agency is most likely to recover a. all future profits from Debt Records. b. $10,000 from Baez. c. $100,000 from Debt Records. d. $110,000 from Baez.

B

Berry Farm hires Chun to repair its irrigation system on site by a certain date for $2,500, but Chun fails to perform. Berry Farm hires Diego to do the job for $2,000. In a suit for breach, Berry Farm may recover from Chun a. compensatory damages. b. nominal damages. c. punitive damages. d. nothing—there is only a technical injury.

B

Coffee Company, a U.S. firm, owns property in the Dominican Republic. When the Dominican government seizes the property, the company asks a U.S. court to order the property's return. The court rules that the Dominican Republic is exempt from the court's jurisdiction. This is an application of a. a coercive action. b. the doctrine of sovereign immunity. c. the act of state doctrine. d. the principle of comity.

B

A contract for a sale of land from Beachfront Properties Inc. to City Development Corporation contains an erroneous legal description. The appropriate remedy for these parties is most likely a. damages. b. specific performance. c. reformation. d. a quasi contract.

C

Ben makes an appointment for a $50 haircut, buys a bike for $250, and agrees to work for Coding Associates for one year for $5,000 per month, starting at the beginning of next month. To be enforceable, a writing is required for a. the appointment. b. the employment agreement. c. the purchase. d. none of the choices.

C

A body of law—formed as a result of international customs, treaties, and organizations—that governs relations among or between nations is a. national law. b. space law. c. universal law. d. international law.

D

Federal overtime provisions apply only after a covered employee works more than a. eight hours in a day. b. one year for the same employer. c. twenty days in a month. d. forty hours in a week.

D

Discharging a contract by executing a new agreement with performance different from what was originally promised is a. an accord and satisfaction. b. a novation. c. a material breach. d. substantial performance.

A

Emil enters into a contract to buy Foley's cultivated bottomland if County AgriCredit will lend Emil the funds to pay for the land. Emil's duty to perform is a. conditional. b. commercially impracticable. c. substantial. d. absolute.

A

Flower Workers Union represents the employees of Garden Variety Inc. The company does not require its new hires to join the union as a prerequisite to obtaining employment. This most likely violates a. no federal law. b. the Fair Labor Standards Act. c. the Labor-Management Relations Act. d. the Norris-LaGuardia Act.

A

If performance under a contract will vary materially on a delegation of its duties to a third party from that expected by the obligee, the delegation is a. prohibited. b.permitted if the performance does not require the obligor's personal skill. c. permitted if special trust has been place in the obligor. d. permitted on sufficient notice by the obligor.

A

Iggy and Jon sign a contract by which Iggy agrees to deliver and install a gas fireplace on October 15 in exchange for Jon's promise to pay the $500 price within ten days of the install date. The delivery and installation of the fireplace and the payment of the price are examples of a. concurrent conditions. b. conditions precedent. c. implied conditions. d. conditions subsequent.

A

Megan contracts to sell Nonny her horse for $4,000. This contract will be fully discharged when Megan and Nonny a. exchange the horse for the money. b. agree that the deal is fair. c. execute a bill of sale. d. sign a receipt.

A

Merl buys a tablet for $500, running shoes for $200, and a set of the Game of Crowns books for $100. To be enforceable as a contract, a writing is required for the purchase of a. the tablet only. b. the shoes and the tablet only. c. the books, the shoes, and the tablet. d. the books only.

A

Retail Operations, Inc., a U.S. firm, obtains a judgment in a U.S. court against Shinobu, Ltd., a Japanese business. Whether the court's judgment will be enforced by a court in Japan depends on the Japanese court's application of a. the principle of comity. b. the act of state doctrine. c. the doctrine of sovereign immunity. d. the Foreign Sovereign Immunities Act.

A

The rights under an insurance policy can normally be assigned a. if the assignment involves only a payment of benefits. b. if the assignment significantly alters the duties of the insurer. c. under no circumstances. d. if the assignment significantly changes the risk to the insurer.

A

To create a valid delegation of duties requires a. the delegator's expressed intent to make the delegation. b. the delegator's use of the word delegate. c. none of the choices. d. a special form.

A

Ziplines Inc. enters into a contract to employ Scot as a manager for two years. If Ziplines breaches the contract, Scot has a duty to a. reduce the damages that Scot might otherwise suffer. b. rescind the contract with Ziplines. c. do nothing. d. act to punish Ziplines as an example to deter others from similar acts.

A

Consolidated Corporation, a U.S. firm, wishes to participate, but limit its involvement, in Middle Eastern markets. Consolidated empowers Doha Ltd., an Egyptian firm, to enter into contracts in certain countries on behalf of Consolidated. This is a. a distribution agreement. b. an agency relationship. c. indirect exporting. d. direct exporting

B

Gina enters into a contract to buy a commercial building from Hope for a certain price subject to an appraiser's evaluation of the structure's condition. If the appraiser deems the condition to be substandard, the parties' obligations will be a. altered. b. discharged. c. unaffected. d. breached.

B

Quinn and Ruth orally agree on the sale of Seafood Shippers Inc. and jot down the terms on the back of one of Seafood's blank invoices, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain a. the preliminary terms. b. the essential terms. c. all terms. d. the quality terms.

B

Rene contracts with Scot to pay him $5,000 for repairs to Rene's lake cabin. After Scot performs, Rene tells him that she cannot pay him in full immediately. They sign an agreement in which Rene promises to pay $2,500 now instead of $5,000 later. This is a. specific performance. b. an accord and satisfaction. c. a novation. d. a mutual agreement to rescind.

B

Rita contracts to work for Social Media Corporation (SMC) during April for $4,500. On March 31, SMC cancels the contract. Rita declines a similar job with Tech Talk, Inc., which would have paid $3,500. Rita files a suit against SMC. As compensatory damages, Rita can recover a. $4,500. b. $1,000. c. $0. d. $3,500.

B

Rocco orally agrees to sell his Spring Beverage Company to Thirsty Inc. Rocco notes the terms on a sheet of Spring stationery and signs it. This agreement is most likely enforceable against a. Spring and Thirsty. b. Rocco. c. no one. d. Thirsty.

B

The rights under a contract for personal services can normally be assigned a. if the contract is executory. b. if all that remains on the deal is a payment of money. c. if the personal services are unique to the party rendering them. d. under no circumstances.

B

Under the Outer Space Treaty, with respect to a space object and the personnel aboard it, the launching state a. grants political autonomy to those aboard the object. b. retains complete jurisdiction and control. c. forfeits supervisory authority to the United Nations. d. shares dominion and responsibility with the United Nations.

B

Venezuela seizes the assets of World Oil, Inc., a U.S. firm. World Oil's recovery from Venezuela in a U.S. court may be prevented by a. the doctrine of sovereign immunity. b. the act of state doctrine. c. a court in Venezuela. d. the principle of comity.

B

Blue Space Corporation launches exploratory space flights to the moon and Mars. The purpose is to discover and retrieve minerals and other resources. Under U.S. Law, Blue Space a. cannot legally retrieve resources in space. b. must share with all interested parties what it retrieves in space. c. owns what it retrieves in space. d. cannot profit from resources retrieved in space.

C

Builders Corporation files a suit against Concrete Company to enforce a written contract. If the court finds that the parties intended the contract to be the final statement of their agreement, parol evidence can be admitted to prove a.terms discussed at the time of the contract that contradict the writing. b. terms discussed before the contract but not contained in it. c. an orally agreed-on condition. d. nothing.

C

Comida de Chile S.A., an export company in Chile, and Deli Source Inc., an import firm in the United States, enter into a contract. When Deli breaches the contract, Comida obtains an award of damages in a Chilean court. Comida then asks a U.S. court to enforce the award. The U.S. court defers to and enforces the Chilean court's decree. This is an application of a. the doctrine of sovereign immunity. b. the act of state doctrine. c. the principle of comity. d. none of the choices.

C

Dick's Burgers enters into an oral contract with Equipment Warehouse for the purchase of a single-spindle milkshake mixer for $300. Assuming the terms can be proved, the contract is enforceable by a.any third party with a material interest, such as one of Dick's suppliers. b. the manufacturer of the mixer. c. Dick's or Equipment. d. none of the choices.

C

Finance Accountants, P.A., is a private employer. In most circumstances, federal law generally prohibits Finance from subjecting its employees to a. electronic monitoring. b. drug tests. c. lie-detector tests. d. none of the choices.

C

For a price, Rose agrees to unload the catch from fishing boats that dock at Seafood Shipping. Rose delegates this duty to Tina, who then owes performance of the duty to the warehouse. Tina is a. a third party beneficiary. b. the obligor. c. the delegatee. d. the obligee

C

Fred agrees to assume a debt owed by Guitars Inc. to Home Bank. The agreement is not in writing. To be enforceable under the "main purpose" rule, the promise must be for the benefit of a. Guitars Inc. b. Home Bank. c. Fred. d. any third party, such as a Guitars Inc. customer.

C

Generally, the duties under a contract can be delegated a. unless the rights under the contract have previously been assigned. b. unless the delegation involves only a payment of money on the deal. c. unless the contract expressly prohibits delegation. d. under no circumstances.

C

Investment Corporation wants to monitor business communications on phones that the employer provides to the employees. The employer's best course of action to avoid liability under laws related to employee monitoring is to inform a. the public generally. b. its clients and others who communicate with the employees. c. its employees. d. no one

C

Jim and Kelly agree that Jim will fix the refrigeration unit in Kelly's Lunch Café in exchange for her payment of a debt that Jim owes to Money Corporation. Under this contract, the intendedbeneficiary is a. any customer, client, or employee of Lunch or Money. b. Jim. c. Money. d. Kelly.

C

Metro Holdings Inc. contracts to sell a commercial parking garage to New Property LLC. The contract provides that if Metro does not close the deal by a certain date, it must pay the buyer one-half of the value of the property. This provision is not enforceable if it is a. a reasonable estimate of the loss on the breach. b. intended to quickly provide cash to New Property. c. designed to penalize Metro. d. meant to pay for additional work in the event of damage.

C

Rico works for Street Tacos Inc. The basis for Rico's contribution under the Federal Insurance Contribution Act to help pay for benefits that will partially make up for his loss of income on retirement is a. his special job skills. b. an equitable share of his employer's unpaid contribution. c. his annual wage base. d. the employer's adjusted gross profits.

C

Shuster's lease of retail premises from Thurgood requires Shuster to pay certain fees, subject to the landlord's proof of the correct amount. Thurgood overcharges Shuster for the fees, without explanation. Most likely, the tenant can rescind the lease a. under no circumstances. b. after paying the overcharge. c. with prompt notice. d. by finding a new tenant for the premises.

C

Sparkling Jewelers breaches its lease with Town Mall and vacates the premises six months before the end of the term. In some states, the mall would be required to a. sell the premises to recover any damages. b. relet the premises to recover any damages. c. use reasonable means to find a new tenant. d. avoid reletting the premises for six months to recover damages.

C

Under a contract, an assignment of negotiable instruments a. can be prohibited only by the obligor. b. can be prohibited only by an anti-assignment clause. c. is prohibited under any circumstances. d. cannot be prohibited.

C

ActioNOW and Becca enter into an oral contract in which Becca agrees to work on a project for ActioNOW for eighteen months. This contract is enforceable by a. ActioNOW. b. any third party, such as ActioNOW's clients. c. Becca. d. none of the choices.

D

Architects LLC enters into a contract with Barns & Silos Inc. to provide designs for a certain number of farm buildings. Architects provides fewer than half of the designs by the time specified in the contract because the firm is busy with other projects. Architects' performance is most likely a. a reasonable breach. b. a minor breach. c. no breach. d. a material breach.

D

Beau borrows $15,000 from Credit Center to buy a car. The lender assigns the right to receive the loan payments to Debt Collections Inc. If Beau does not pay the debt, the assignee can a. none of the choices. b. extinguish the contract rights of the assignor. c. demand performance of the deal from any of the original parties. d. enforce the payment in court.

D

Commercial Rebuild LLC enters into a contract to remodel Dockside Marina, agreeing to use only products from Eagle Supplies. Halfway through the project, Commercial refuses to finish the job. The contract can be enforced against Commercial by a. Eagle only. b. Dockside only. c. any interested third party, including a contracting party's employee. d. Dockside or Eagle.

D

Dairy Farm enters into a contract with Edible Ice Cream Inc. to supply milk. Later, Dairy decides that it is no longer advantageous to fulfill the contract and subsequently fails to perform as promised. Edible files a suit against Dairy. A breach occurred when Dairy a. decided that it was not advantageous to fulfill the contract. b. entered into the contract. c. was sued by Edible. d. failed to perform as promised.

D

Lana agrees to work as Michelle's personal assistant for one year but dies in the ninth month of the contract. Lana's death a. suspends performance of the contract. b. breaches the contract. c. requires Lana's estate to pay damages. d. discharges the contract.

D

Lunchies Corporation, a U.S. firm, signs a contract with Manger au Brasserie, S.A., a French firm, to give Manger the right to use the Lunchies trademark in restaurants in France. This is a. a distribution agreement. b. direct exporting. c. indirect exporting. d. licensing.

D

Max orally agrees to construct two outbuildings on Ned's ranch for a stated price. Max performs, but Ned does not pay. To recover on a theory of quasi contract, Max must show that if Ned were allowed to retain the benefit of their bargain, Ned would a. be restored to the status quo. b. profit from Max's performance. c. obtain a reasonable exchange of values. d. be unjustly enriched.

D

Nate promises to pay for medical services provided by Otto to Polly. Nate receives no personal benefit for the promise. To be enforceable, the promise must be in writing if a. Nate assumes primary financial responsibility for the cost. b. Polly also promises to pay. c.Otto's services will be provided in installments with separate payments. d. Nate promises to pay only if Polly does not pay.

D

Rye agrees to sell his Taco Delight restaurant to Sati. The parties intend their written contract to be a final statement of the terms of their agreement. Later, the parties dispute some of the provisions. In litigation, Sati offers evidence to contradict the written terms. Most likely, the court will a. dismiss the case. b. reform the written terms to match the evidence. c. strike a balance between the evidence and the written terms. d. exclude the evidence.

D

Salsa Inc. employs three hundred workers at four locations in two states. Under federal law, Salsa must provide each employee, during any twelve-month period, family or medical leave of a. up to twelve pay periods. b. up to twelve days. c. no limited duration. d. up to twelve weeks.

D

Under the Export Trading Company Act, U.S. banks are a. discouraged from granting credit to export trading companies. b. prohibited from lending funds to export trading companies. c.required to report financial transactions with export trading companies. d. encouraged to invest in export trading companies.

D