BADM 403 - Practice Quizzes Week 1-3

Cow's Milk Creamery, Inc., needs a certain part for its pasteurizing equipment to continue its operations and orders one for $3,000 from Dairy Supplies Company. Cow's Milk tells Dairy Supplies that it must receive the part by Tuesday or it will lose $10,000. Dairy Supplies ships the part late. Cow's Milk can recover $3,000 $10,000 $0 $13,000

$10,000

Car Lot's salesperson Dick offers to sell Ernie, who is twenty years old, a car. Dick intentionally misrepresents the vehicle's use and repairs. In reliance, Ernie buys the car. To prove fraud, Ernie does not have to show that Dick misrepresented material facts Dick intentionally deceived Ernie Ernie justifiability relied on Dick's misrepresentations Ernie is under twenty-one

Ernie is under twenty-one

A delegation relieves the party making it of the obligation to perform True False

False

A material breach occurs when performance is substantial, but not complete True False

False

A seller has an insurable interest in goods as long as the goods are in existence True False

False

An award of damages for a breach of contract can elevate the nonbreaching party to a better position than he or she would have been if the contract had not been breached True False

False

An expression of opinion--"this is excellent"--is an offer True False

False

Anything less than complete performance is a material breach of contract True False

False

The UCC requires the mirror image rule be followed for all acceptances True False

False

When a contract party materially alters a written contract without consent, the other party must adapt his or her performance accordingly True False

False

When no delivery terms are specified in a contract for a sale of goods, there is no basis for determining a remedy True False

False

Roofing Company buys asphalt titles from Shingles, Inc. The parties agree that the tile will be shipped "F.O.B. Shingles warehouse" to Roofing's location via Shipping Corporation. The tiles are lost in transit. The loss is suffered by Shingles, Inc. Shipping Corporation Roofing Company Roofing's customers by an increase in the prices of goods and services

Roofing Company

An effective offer requires reasonably definite terms True False

True

An unenforceable contract is on that cannot be enforced because of certain legal defenses against it True False

True

Performance can constitute the consideration that creates a contractual obligation True False

True

Revocation of acceptance is effective on notice to the seller or lessor True False

True

The UCC imposes some different rules on merchants True False

True

When a waiver of a breach of contract occurs, the party waiving the breach cannot take any later action on it True False

True

Ron offers to pay Sara to pick up and deliver certain business documents within 30 minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Ron and Sara will have a bilateral contract a void contract a unilateral contract an executive contract

a unilateral contract

Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have no contract a mixed contract an implied contract an express contract

an express contract

K'Nect, Inc. makes an offer to Lori to enter into a contract to work as a salesperson for a certain salary plus commission for ninety days subject to a one-year renewal based on her performance. Lori accepts the offer. A valid contract requires an offer and an acceptance all of the choices a price and a subject a duration and a termination

an offer and an acceptance

Pavers Inc. contracts to buy some heavy equipment from Earthmovers, Inc. Before either party performs, Earthmovers sells its assets to Excavation Corporation. On learning of the sale, Pavers is concerned about its contract with Earthmovers. Pavers should demand assurances of performance from the seller buy the equipment from a different firm and bill Excavation for the price buy the equipment from a different firm and bill the seller for the price consider the contract repudiated and sue the seller for breach

demand assurances of performance from the seller

Alan induces Beth to enter into a contract for the purchase of a Chef's Burger House restaurant. Alan knowingly misrepresents a number of material features about the restaurant and the business. When Beth discovers the truth, she can rescind the contract on the basis of none of the choices fraud mistake undue influence

fraud

Berry enters into a contract with Clyde for a guided tour of Deep Canyon. Clyde represents that he is an experienced, knowledgeable guide, when in reality he has never been in the canyon. Berry is most likely a victim of mistake fraud unconscionability undue influence

fraud

Minerals Ltd. contracts to provide several manufacturers with tin. When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Minerals so that it cannot fulfill its contracts, the distributor is excused from the performance of its contracts is liable for breach of contract can substitute some other material for the tin must still supply the tin needs of its customers

is excused from the performance of its contracts

Dry Gulch Farms hires Elliot to repair its irrigation system on site on a certain date for $2,500, but Elliot does not show up agreed. Dry Gulch hires Fernando to do the job for $2,000. Dry Gulch may recover from Elliot compensatory damages nothing consequential damages nominal damages

nominal damages

Idina admires Jules's collection of guitars. Jules says, "I plan to sell the collection when I get tired of it." Jules's statement is an offer an acceptance not an offer because Jules expressed only an intent to enter into a future contract not an offer because it has not been communicated to Idina

not an offer because Jules expressed only an intent to enter into a future contract

Bytes Inc. enters into contracts for its cloud services online. Bytes can protect itself against disputes involving these contracts by making important terms reasonably clear practical vaguely ambiguous standardized

reasonably clear

Swift Trucking, Inc., and Trailer Rents Corporation are parties to an oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000. They may satisfy the Statute of Frauds by: mutually agreeing not to commit fraud shaking hands on the deal setting out the terms in a memo repeating the terms in a phone call

setting out the terms in a memo

Lucy owns a condominium that she leases to Marie, gives her son Neal $450 on his sixteenth birthday, and sells her car to her neighbor Odalles for $1,500. UCC Article 2 covers: the lease with Marie the gift to Neal the sale to Odalles all of the choices

the sale to Odalles Article 2 = sales (>$500 in writing) Article 2A = leases (>$1000 in writing)