BA CHPT 11

Which of the following is true of common law? a. It is synonymous to the Uniform Commercial Code (UCC). b. It does not attract penalties when violated. c. It was the first law of contracts. d. It is not uniform.

D

. Information about negotiations or promises that are beyond the contract itself is called: a. promissory estoppel. b. parol evidence. c. consideration. d. charitable subscription.

B

. Merchants who do not require chip credit cards are unable to seek reimbursement for fraud from credit card companies. a. True b. False

B

1. "I am interested in retiring and looking for a franchise to start a business" is an example of: a. an offer. b. an invitation for an offer. c. an inquiry. d. an acceptance.

B

A quasi contract is a type of voidable agreement. a. True b. False

B

An option can be revoked any time prior to acceptance. a. True b. False

B

1. A contract is a promise of performance that can be enforced by law. a. True b. False

A

2. It is difficult to determine which contracts are UCC contracts and which are common law contracts. a. True b. False

A

An offer can be revoked any time prior to acceptance. a. True b. False

A

Chen has a lawn service. Jennifer asks him to come by and mow her lawn while she is out of town. Jennifer pays him when she gets back into town and asks him to mow the grass "whenever it needs it." So Chen has been mowing her lawn every few weeks all summer. She has been paying him the following day. In late August, Chen mowed the grass again, but this time Jennifer refused to pay him stating that they did not have a contract so he should have asked her first. Which of the following statements is true of this scenario? a. Chen and Jennifer had a quasi contract. b. Chen and Jennifer had an unenforceable contract. c. Chen and Jennifer had an executory contract. d. Chen and Jennifer did not have any type of contract.

A

Consideration is what distinguishes gifts from contracts. a. True b. False

A

Contract provisions used to cover interruptions and changes caused by the COVID-19 virus are force majeure issues. a. True b. False

A

Jerry is negotiating with Tiana for the purchase of her mountain bike. The following conversation has taken place so far:Jerry: I will buy your mountain bike for $375.00.Tiana: I will sell it to you.Jerry: Good. The tire pump is included.Which of the following statements is true of this scenario? a. Jerry and Tiana have a contract for the bike at $375.00. b. Jerry and Tiana do not have a contract for the bike at $375.00. c. Jerry and Tiana have a contract for the bike at $375.00 with the tire pump. d. Jerry and Tiana do not have a contract without the tire pump being included.

A

Margaret Jameson has had enough. Last week she saw the drug dealers who live next door selling drugs to a 12-year-old from the neighborhood. Deciding to take things into her own hands, she paid her acquaintance John $100 to set fire to their house while they were gone. This is a(n): a. void contract. b. voidable contract. c. unenforceable contract. d. quasi contract.

A

Party autonomy is a priority under the United Nations Convention on Contracts for the International Sale of Goods (CISG). a. True b. False

A

Refurbished Inc. sent an offer to The Phone Warehouse. The offer read as follows: "Available for immediate shipment: 1,000 iPhone 4s. Price is $49 each. 30 days, same as cash. All warranties in effect. This offer expires on Tuesday, December 31, 2021." The Phone Warehouse sent the following letter in response on December 30, 2021 via overnight delivery: "Happy to accept your offer on the iPhone 4s. Ship immediately." A huge snowstorm hit the east coast on December 30, 2021, and The Phone Warehouse's letter did not arrive at Refurbished's headquarters until January 3, 2022. By then, Refurbished had sold the iPhones to another company. The Phone Warehouse demanded the 1,000 phones for $49 each, claiming that it had accepted the offer in time. Which of the following statements is true of this scenario? a. The Phone Warehouse is correct; it had valid and timely acceptance and had a contract. b. The Phone Warehouse is incorrect; the acceptance must arrive for it to be effective. c. The Phone Warehouse is incorrect; the offeree assumes the risk of the delivery means chosen. d. The Phone Warehouse is correct, but any damages must be recovered from the overnight shipping company.

A

The Hoffmans were having their home remodeled by All-Right Contractors. The roof had to be removed in order to build the second story the Hoffmans had contracted and designed to build. After All-Right had removed the roof, but before a covering was placed over the exposed half of the home, All-Right's foreman said the job would cost an additional $12,500. The Hoffmans refused to agree to the additional fee, and All-Right's foreman said, "Suit yourselves. Looks like it's going to rain for the next day or two" and left. The Hoffmans called All-Right and agreed to pay the $12,500 extra and went in to sign the paperwork. Which of the following statements is true of this scenario? a. The contract for the additional $12,500 is valid and binding. b. The contract for the additional $12,500 is invalid because of duress. c. The contract was not valid because of duress, but the Hoffmans signed anyway—so there is a valid and enforceable agreement. d. The contract is valid because there was substantial performance.

A

The Restatement (Second) of Contracts addresses common law contracts. a. True b. False

A

The doctrine of promissory estoppel is a substitute for consideration. a. True b. False

A

The following series of events occurred between two shops named Bull's Meat Market and The Butcher:May 1: The Butcher sends a fax to Bull's offering to buy 200 lbs of T-bone steak at $3.29 per lb.May 2: Bull's sends a fax back saying "Price is okay. Payment prior to delivery."In this scenario, Bull's and The Butcher: a. have a contract on May 2 with the payment term. b. have a contract on May 2 without the payment term. c. do not have a contract. d. have a contact on whatever date payment is made.

A

Which of the following contracts must be evidenced by a record to be enforceable? a. A contract for the sale of two acres of land b. A contract for management consulting for $427 c. A contract for management consulting for three months d. A contract for a bicycle for $225

A

Which of the following contracts must be evidenced by a record? a. A contract for the sale of an easement for $350 b. A contract that is oral but that has been verified by a merchant to another merchant c. A contract for the sale of a cell phone for $250 d. A contract for consulting that runs from April 1, 2021, through December 12, 2021

A

Which of the following situations would get the benefit of the mailbox rule? a. An acceptance of a stipulated means offer by the stipulated means b. An acceptance of a stipulated means offer by a faster or unreasonable method of communication c. An acceptance of an offer by a slower or unreasonable method of communication d. An acceptance of an unstipulated means offer by a faster or unreasonable method of communication

A

Which of the following types of contract is described as an agreement to do something that is illegal or against public policy or one that lacks legal elements? a. A void contract b. A voidable contract c. A quasi contract d. An unenforceable contract

A

Choose the TWO requirements for the terms required to form a contract offer under the Uniform Commercial Code (UCC). a. subject matter b. parties c. price d. payment terms e. delivery terms f. performance times Hide Feedback

A AND B

Jane is negotiating with Carlos to buy his 2009 Honda Accord. The following excerpts from emails have occurred so far:Jane: I would be interested in purchasing your Honda Accord.Carlos: I am thinking of selling my Honda Accord.Jane: I am considering selling my diamond tennis bracelet to buy your Honda Accord.Which of the following statements is true of this scenario? a. Carlos and Jane have a contract. b. Carlos and Jane do not have a contract. c. Carlos and Jane have a conditional agreement based on the sale of his Honda Accord. d. Carlos and Jane have a conditional agreement based on the sale of her tennis bracelet.

B

Mr. Anderson sold his car to his daughter Amanda for $1,000 even though the car is valued at $20,000. The next day, her brother Richard claimed the car belonged to him. Richard claimed that their dad had promised to give him the car the previous year. Which of the following statements is true of this scenario? a. Because the car was worth more than the sale price, there is no consideration. b. There is valid consideration despite the price. c. Even though there is minimal consideration, the sale does not constitute a valid contract. d. The car belongs to Richard because it was promised to him first.

B

The United Nations Convention on Contracts for the International Sale of Goods (CISG) is similar to the Restatement (Second) of Contracts. a. True b. False

B

The burden of proof for unauthorized use of a credit card is on the card holder. a. True b. False

B

Transfers of consumer credit balances to new credit cards are a lucrative area for banks and credit card companies. a. True b. False

B

Which of the following statements is true of a subprime loan? a. It is now prohibited under the Dodd-Frank Wall Street Reform and Consumer Protection Act (DFCPA). b. It is a loan with higher interest rates and large prepayment penalties. c. It is for borrowers with a FICO (Fair Isaac Co.) score below 720. d. It is for borrowers with a FICO (Fair Isaac Co.) score above 720.

B

In the Leonard v PepsiCo case, the court held that: a. Pepsi's advertisement with the Harrier jet was a unilateral offer. b. all advertisements are not offers. c. Pepsi's advertisement did not reflect present intent to contract. d. Pepsi owed Leonard a Harrier jet.

C

John is negotiating with Benjamin to buy Benjamin's mountain bike. The following conversation has taken place so far:John: I will buy your mountain bike for $325.00.Benjamin: I couldn't sell it for less than $375.00.John: I'll take it for $375.00.Which of the following statements is true of this scenario? a. Benjamin and John have a contract for the sale of the bike at $375.00. b. Benjamin and John have a contract for the sale of the bike at $325.00. c. Benjamin and John do not have a contract. d. Benjamin and John do not have a contract until the exchange is in writing.

C

Rodrigo hired Anglin Engineering to produce engineering drawings for the work Rodrigo was doing at a brewery. Anglin said it would charge "street" rates for the work, which meant $35 an hour for regular work, $40 an hour for overtime work, and $45 an hour for its time. Rodrigo gave Anglin a purchase order for the work, but no rate was specified. Anglin sent bi-weekly invoices to Rodrigo, and Rodrigo paid the invoices for two months. Rodrigo continued to insist that the work be done but constantly complained about the rates and did not pay invoices for the next four months. Anglin sued for $98,618, the amount it was due for work at the street rate. Rodrigo claimed there was no contract because there was no meeting of the minds about the rate to be paid. Who should prevail in this case? a. Rodrigo, because there was no meeting of the minds as to the rate of compensation for Anglin's work and because there was no contract, but only a purchase order b. Rodrigo, because there was no contract since the rates identified by Anglin were too vague and indefinite to enforce c. Anglin, because there was an agreement in that Rodrigo accepted the rates when he paid the invoices for two months d. Anglin, because there was a purchase order that outlined all of the terms and conditions between Rodrigo and Anglin

C

Salma plans to purchase a new Maserati. She will be borrowing the money from her bank. Salma signs the contract at 8:00 p.m. at the dealership, and her bank will not be open until 10:00 a.m. the following day. Which of the following statements is true of this scenario? a. Salma has a contract regardless of whether the bank approves her loan. b. Salma has made a conditional acceptance and has no contract. c. Salma will be excused from her contract if the bank does not approve her loan. d. Salma will have to pay for the car regardless of the loan.

C

Statute of frauds applies to: a. contracts that exist just on the basis of an oral promise. b. all express contracts. c. contracts for paying the debt of another. d. contracts for the sale of properties

C

Tanner moved from Cleveland to New Orleans. He drove a rental truck with his belongings, but he needed to get his car to New Orleans too. He told his friend Han, "If you drive my car to New Orleans this weekend, I will pay you $200." Han then drove the car to New Orleans, but Tanner refused to pay and claimed they do not have a contract. Which of the following statements is true of this scenario? a. They do not have a contract. b. They have a bilateral contract. c. They have a unilateral contract. d. They have an executory contrac

C

Which of the following describes Section 2-207 of the Uniform Commercial Code (UCC)? a. The mailbox rule b. The section on electronic communications c. The section on additional terms in acceptance d. The mirror image rule

C

Which of the following is used to protect payment rights in international transactions? a. CISG provisions b. Party autonomy c. A bill of lading d. Parol evidenc

C

Dakota and Lucia have been life-long friends. When Dakota decided to move, Lucia made her an offer of $350,000 for Dakota's house, and Dakota accepted the offer with a handshake. A few days later, Dakota was killed in a car accident, and her brother informed Lucia that Dakota had left him as the sole beneficiary and he would be selling the house for $500,000 if she still wanted to buy it. Which of the following statements is true of this scenario? a. The house belongs to Lucia because she and Dakota had a valid contract. b. Lucia can still purchase the house for the original $350,000. c. Dakota's brother has to sell the house to Lucia for $350,000. d. There was no valid contract between Lucia and Dakota, so Lucia will have to pay the new price.

D

Under the Equal Credit Opportunity Act (ECOA), it is unlawful to discriminate against an applicant for credit on the basis of: a. income. b. length of employment. c. felony conviction. d. age.

D

Which of the following is true of the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009? a. It restricts credit card solicitation of those under the age of 18. b. It allows college and university partnering with credit card companies. c. It created the Consumer Financial Protection Bureau (CFPB). d. It limits the frequency of companies changing a card holder's interest rate.

D

Which of the following statements is true of the mailbox rule? a. It applies only when the offer includes a specific method of acceptance. b. It makes an acceptance effective when it arrives at the offeror's electronic or regular mailbox. c. It only applies under the Uniform Commercial Code (UCC). d. It can apply whether the means are stipulated or not under certain circumstances

D