BLAW 3201 Test 2

If an offer has no stated time by which it must be accepted, when does the offer terminate? A. Never. B. After one week. C. After one month. D. After a reasonable period of time.

D

An offer for the sale of goods under the UCC: A. must include a price. B. must include the quantity. C. must be made by a merchant. D. must include the time and place of delivery.

B

__________ means doing that which the promise was under no prior legal obligation to do. A. Bargained-for exchange B. Legal detriment C. Bilateral D. Illusory

B

Assuming an otherwise valid offer, which of the following would be Melnick's best argument in trying to enforce a contract for the sale of three peppers for two cents? A. A unilateral mistake does not relieve the party who made the mistake from contract liability. B. A mistake of value usually invalidates a contract. C. A mutual mistake invalidates a contract. D. The mistake was immaterial.

A

A person is not entitled to relief from fraud, unless she can show that she: A. was unduly influenced. B. justifiably relied on the misrepresentation. C. was physically forced to comply. D. All of these are correct.

B

A person should not be held to an agreement he has not entered voluntarily. Accordingly, the law will not enforce any contract induced by: A. puffery. B. duress. C. mistake. D. All of these are correct.

B

To establish fraud, the misrepresentation must have been known by the one making it to be false and must be made with an intent to deceive. That knowledge is known as: A. scienter. B. negligent misrepresentation. C. sales puffery. D. All of these are correct.

A

Baxter, a plumber, wants to submit a bid on a city sewer project. He computes the cost, but mistakenly omits the cost of one item. Accordingly, he submits a bid of $430,000 to the city. The next highest bid is $675,000, and the rest of the bids are even higher. The city is happy to have such a low bid, so it accepts Baxter's bid and awards him the contract for the job, even though the city engineer is of the opinion the job cannot be done for less than $650,000. In this case: A. Baxter must perform for the agreed upon price, because he has made a unilateral mistake. B. the city was aware of Baxter's mistake. When it accepted the bid, with knowledge of Baxter's mistake, the city sought to take an unconscionable advantage of Baxter's error. C. there is a case of mutual mistake. D. All of these are correct.

B

Bill enters into a contract with Harry. The terms are that Bill will build an addition to Harry's home, replace the roof on Harry's garage, and make repave Harry's driveway in exchange for Bill's payment to Harry of several thousand dollars once all of the projects have been completed. If the driveway repavement has not yet been completed, but the addition and the roof have been completed, which term describes the type of contract in existence? A. Voidable B. Executory C. Implied-in-fact D. Quasi-contract

B

A contract based on __________ is not enforceable. A. legal detriment B. legal benefit C. past consideration D. unequal consideration

C

A convenience store robbery has occurred. The merchant's association has offered a $2,000 reward for information leading to the arrest and conviction of the robber. Several people are claiming they are entitled to the money. Which of the following people would not be eligible for the reward? A. A customer of the store. B. An off-duty game warden from a county other than the one where the arrest occurred. C. An on-duty sheriff's deputy in the county where the arrest occurred. D. All of these individuals would be eligible.

C

Another name for a quasi contract is: A. promissory estoppels. B. an implied in fact contract. C. an implied in law contract. D. an unenforceable contract.

C

Sally offers to sell her Business Law textbook from last semester to Bob for $50.00. Bob accepts Sally's offer and tells her he will pay her on Friday when he gets his paycheck. A contract is formed: A. when Bob gets his paycheck. B. when Sally offers to sell her book to Bob. C. when Bob pays Sally. D. when Bob accepts Sally's offer.

D

Stephanie induces Wanda to purchase 100 shares in Zazzy Corporation at a price of $100 per share. Stephanie tells Wanda that she paid $150 for them the previous month. In fact Stephanie only paid $50. How can this representation of a past event be characterized? A. The representation is a misrepresentation of law. B. This is a mutual mistake of fact. C. The fact that was misrepresented was not material. D. The representation of a past event is a misrepresentation of fact.

D

Which of the following offers cannot be revoked? A. Any offer by a merchant under the UCC. B. Any offer that is in writing that promises to leave the offer open for three months or less. C. Any offer that is in writing, signed, and promises to leave the offer open whether it is made by a merchant or not. D. All of these are incorrect.

D

Which of the following, if any, are requisites for fraud in the execution? A. False representation as to the very nature of the contract. B. Signing party does not know the character or essential terms of the contract. C. Renders the transaction void. D. All of these are correct.

D

__________ is an intentional misrepresentation of material fact by one party to the other, who consents to enter into a contract in justifiable reliance on the misrepresentation. Fraud in the inducement renders the contract __________ by the defrauded party. A. Silence; void B. Fraud by concealment; void C. Fraud in the execution; voidable D. Fraud in the inducement; voidable

D

Bill faxes Harry an offer at 9 a.m. on Monday and the fax arrives at Harry's office at 9:02 a.m. Monday. Because Harry is taking a vacation day on Monday, he does not read the fax until Tuesday at noon. Harry decides to accept Bill's offer and tells his assistant at 3 p.m. Tuesday to prepare an acceptance for his signature. The acceptance is placed on Harry's desk at 4:45 p.m. Tuesday. Harry signs the acceptance and gives it to his assistant to fax back to Bill at 9 a.m. Wednesday. The assistant does so immediately; however, due to malfunctioning of Bill's fax machine, Bill does not receive Harry's acceptance until Friday morning. The offer is effective at __________ and the acceptance is effective at __________. A. 9:02 Monday; approximately 9 a.m. Wednesday B. Tuesday noon; Friday morning C. Tuesday noon; 9 a.m. Wednesday D. 9 a.m. Monday; 3 p.m. Tuesday

A

Contracts induced by threats of __________ are not voidable, unlike threats of __________ regardless of whether the coerced party had committed an unlawful act. A. civil prosecution; criminal prosecution B. criminal prosecution; civil prosecution C. tortious conduct; civil prosecution D. None of these are correct.

A

Contracts that are implied in law: A. are obligations imposed by law on grounds of justice and equity. B. are really contracts. C. are also called implied in fact contracts D. require the assent of the contracting parties.

A

For purposes of general contract law (common law), an offer must: A. be sufficiently definite and certain. B. be made to only to one person. C. be intended by the offeror to be an offer. D. All of these are correct.

A

Francisco is a concert violinist who is scheduled to perform at the Kennedy Center for the first time. He buys what he is told is a Stradivarius violin from a well-known, reputable dealer in quality violins, and he pays the going rate for a Stradivarius. He later learns the violin is an imitation, sold by the dealer who was trying to make quick money. In this case: A. the dealer has committed fraud in the inducement. B. Francisco has made a unilateral mistake and cannot avoid the contract. C. the sale is voidable by the seller for mutual mistake. D. the sale may be rescinded, because the dealer has made a nonfraudulent misrepresentation.

A

Aaron's boss offers to pay him $500 if he will pretend he is sick so that he does not have to show up for jury duty, but will go to work instead. Aaron knows that this is against the law, but he would rather be paid $500 from his boss than the $30 that the court will pay him for jury duty. Aaron calls in sick and is excused from jury duty. This agreement between Aaron and his boss is: A. a unilateral contract. B. a bilateral contract. C. a quasi contract D. not a contract.

D

Alan finds Marcia's dog on the side of the road. He then takes the dog home and treats the dog's injuries. When he calls Marcia to tell her he has found the dog, she promises to reimburse Alan for the cost of treating the dog. Is Marcia's promise binding? A. Yes, because she should be grateful to him. B. Yes, because Marcia promised to pay him. C. No, because Alan is not a health care professional. D. No, because there was no bargained-for exchange.

D

Andrew received a bill for $500 from Jeff for a tune-up Jeff performed on Andrew's SUV. Andrew called Jeff and told him, "The car runs no better now than before the tune-up. I am sending you $200 and no more." Jeff received the $200 check which was marked "paid in full SUV repair" and cashed it. Is Andrew still liable to Jeff for the remaining $300? A. Yes, Andrew is liable for the full amount of the repair. B. Yes, only a court can order that the amount was unfair. C. No, customers can pay the amount they think is fair. D. No, if the check is marked "paid in full" and references the transaction.

D

Any property other than an interest in real property, is/are: A. tangible property. B. intangible property. C. goods. D. personal property.

D

Assuming a court did find there was a valid offer, if there was an action brought against the store, would Vinny's mistake of giving the newspaper the wrong price relieve the store of liability? A. No, because it is a unilateral mistake, and therefore whoever made the mistake cannot use it as a defense. B. Yes, because a unilateral mistake always allows contracts to be rescinded by either party. C. No, because it is a mutual mistake between Vinny and the newspaper, therefore the contract cannot be rescinded. D. Yes, since the mistake would be obvious to a reasonable person.

D

In the Maroun v. Wyreless Systems, Inc. case, the court considered which of the following reason to grant summary judgment in Wyreless Systems' favor? A. Wyreless Systems was merely puffing its terms to Maroun. B. Wyreless Systems is not liable for duress. C. Wyrless Systems properly exercised the business judgment rule. D. Wyreless Systems' complained-of statements by Maroun were based on future events, and thus could not be a basis for misrepresentation.

D

In the case of Berardi v. Meadowbrook Mall Company, the court found economic duress, such as that found renders a contract void. Is this statement correct? A. No, economic duress cannot occur between two people in business. B. Yes, the court ruled that there was economic duress and overturned the lower court's summary judgment. C. Yes, Meadowbrook took unfair advantage of Berardi to collect its debt. D. No, the court affirmed the summary judgment.

D

Sam agrees to sell Gina a BMW automobile, both believe to be inoperable, purely for parts. The contract price is $500. Prior to the delivery of the BMW, Sam discovers that the car was simply out of fuel, runs like a dream, and refuses to deliver the automobile to Gina. The value of the operable BMW is now at $3,000. If the court allows Sam to rescind the contract, what would be the reason? A. Sam was under duress. B. This is a case of unilateral mistake on Sam's part. C. All of these are correct. D. This is a case of material mistake by both parties.

D

Sometimes a party makes misrepresentations, which if untrue, could constitute a material misrepresentation. Which of the following fits that description? A. "This is the one that I would buy." B. "This is the best tablet on the market." C. "These tires will wear like iron." D. "This car has a new engine."

D

Sometimes the law imposes a duty of disclosure. When a fiduciary is silent, silence may constitute fraud. A fiduciary is one who: A. has the same duty of disclosure to the other party to the relationship as one who is not a fiduciary. B. must deal at arm's length with the other party to the relationship. C. is in a confidential relationship who owes a duty of trust and loyalty to another. D. All of these are correct.

D

Which of the following can be consideration for a promise? A. Refraining from assaulting one's roommate. B. Promising to refrain from stealing from the boss. C. Refraining from using a controlled substance. D. Refraining from smoking cigarettes.

D

f a court found that Joe (or Pharzime) committed fraud in inducement to their contracts, to what remedy or remedies is the aggrieved party entitled? A. restitution B. rescission C. ratification of the contract D. rescission and damages, if out of pocket expenses were incurred as a result of the fraud

D

According to general (common) contract law, the __________ must be the __________ of the offer. A. counteroffer; acceptance B. acceptance; mirror image C. acceptance; consideration D. contract; revocation

B

As an exception to the rule on courts inquiring as to the adequacy of the consideration, a court will take evidence to establish: A. one party clearly has the better of the deal. B. one party claims to have been defrauded. C. one party has more business experience than the other. D. one party shows a much lower price nationally-advertised on television.

B

Bill offers to sell his house to Harry for $90,000. Harry tells Bill he will buy the house for $90,000 if Bill will fix the roof. Bill says he is not interested in fixing the roof. Harry then tells Bill he will still buy the house. Bill tells Harry the house is no longer for sale to Harry. Which statement is true? A. If Bill will not sell the house to Harry for $90,000, he cannot sell the house to anyone for $90.000. B. Harry's counteroffer terminated Bill's offer, and Bill's rejection of both Harry's counteroffer ($90,000 plus fix the roof) and offer ($90,000) leave Bill free to make a new offer to sell the house to anyone he chooses, including Harry, and under any terms he chooses as long as the terms are not illegal. C. Harry's counteroffer terminated Bill's offer; however, Bill can still change his mind and accept either Harry's counteroffer or Harry's offer to buy Bill's house for $90,000. D. Bill must sell the house to Harry because Harry accepted his offer to sell the house for $90,000.

B

Billy freely agrees to sell Roger a painting for $100. Billy thinks the painting is ugly and a piece of junk. Neither Billy nor Roger are art aficionados or knowledgeable about art. After the sale is made, however, Billy discovers that the painting is worth $10,000. If Billy tries to void his agreement for lack of consideration with Roger and loses, what would be the best reason under these facts? A. Billy was under no duress at the time of the sale. B. The consideration, although disproportionate, is nevertheless adequate because he was done freely. C. Billy made a unilateral mistake. D. None of these are correct.

B

One issue before the court in Vanegas v. American Energy Services case was: A. whether AES would have failed had the original employees not continued their employment. B. whether AES was bound by a promise to pay at-will employees 5% of the value of the sale of the company if they continued their employment after the sale. C. whether the employees who remained with AES were sufficiently compensated for their work. D. whether the sale of the company was contingent on the continued presence of the Vanegas and the other original employees.

B

Sam agrees to sell Gina a BMW automobile, both believe to be inoperable, purely for parts. The contract price is $500. Prior to the delivery of the BMW, Sam discovers that the car was simply out of fuel, runs like a dream, and refuses to deliver the automobile to Gina. The value of the operable BMW is now at $3,000. if the court allows Sam to rescind the contract, what would be the reason? A. This is a case of unilateral mistake on Sam's part. B. This is a case of material mistake by both parties. C. All of these are correct. D. Sam was under duress.

B

All of the following will serve as adequate consideration except? A. Forbearance to do an act. B. Performance of services. C. An illusory promise. D. A promise to perform.

C

Maggie owns a valuable show dog, which she knows is suffering from a disease only discoverable by a competent veterinarian. Maggie offers to sell this show dog to Naomi but does not inform her about the dog's condition. Naomi, who is not a veterinarian, makes a reasonable examination of the dog and concludes that the dog is in normal condition and purchases it from Maggie. If Naomi later discovers that the show dog suffers from the disease, can he have the sale set aside? A. No, because Maggie and Noami already agreed to the sale. B. No, because Naomi should have conducted a more rigorous examination of the dog. C. Yes, because the dog has a hidden defect that would not be discovered in an ordinary examination and Maggie failed to disclose it. D. None of these answers are correct.

C

Mary induces James to enter into a contract. James subsequently discovers that Mary intentionally misrepresented the terms of their contract. Upon this discovery, James tells Mary that he will not perform his promise under the contract. If Mary sues James for breach of contract, will Mary win? A. Yes, because Mary and James have a valid agreement. B. Yes, so long as consideration exists. C. No, because Mary induced James into the contract by fraudulent misrepresentations, which makes the contract voidable. D. No, because the contract was not in writing.

C

Sid makes a material representation of fact regarding his car to Barbara while out driving one day. The next day, Barbara calls Sid and offers to buy his car. Sid accepts Barbara's offer without correcting the misrepresentation of fact that he made the previous day. What is the effect of the material representation on the agreement between Sid and Barbara? A. Sid may avoid the contract. B. There is no effect because it was made the day before the offer was made. C. Barbara may avoid the contract. D. Either Barbara or Sid may avoid the contract.

C

A resulting contract is void when it is brought about by: A. fraud in the execution. B. fraud in the inducement. C. innocent misrepresentation. D. All of these are correct.

A

Annie wants to buy a vehicle that will tow a camper. She gives the specific measurements and weight of the trailer to the salesman. The salesman tells her that the SUV Annie sees on the car lot would be just perfect to tow the trailer. Annie test drives the vehicle and then buys it. In this case: A. Annie was not justified in relying upon the salesman's representation that the car would tow the trailer. B. the element of scienter is missing. C. the salesman is in a confidential relationship with Annie. D. Annie has a valid cause of action for fraud.

A

Betty is looking at the grocery ads in the newspaper and sees that canned tuna is on sale for 6 cents. Because this is an amazingly low price, she rushes off to the grocery store. She loads 10 cans into her cart, goes to the checkout counter and hands the cashier 60 cents. The cashier asks for $6.90 and tells her that the tuna is 69 cents per can and that the ad was a misprint. Betty demands that the tuna be sold to her for 6 cents a can. Which of the following statements about the ad is correct? A. The ad is an invitation for others to make offers. Betty has made an offer to buy the tuna for 6 cents a can and the grocer has rejected Betty's offer, but countered with an offer to sell it to Betty for 69 cents per can. B. The ad is a contract and the store has a contractual obligation to sell the tuna to Betty for 6 cents a can. C. The ad is a firm offer made by a merchant and the grocer must sell Betty the tuna for 6 cents a can. D. The ad is an offer and Betty has accepted the grocer's offer; therefore, there now is a contract between the grocer and Betty for the sale of tuna in exchange for 6 cents per can.

A

BigOil promises Gasnow as many barrels of oil as they shall chose at $50 per barrel. In this case: A. BigOil has made an illusory promise. B. BigOil's promise is legally sufficient unless BigOil knows they are running out of oil. C. BigOil has made a conditional promise which is not sufficient to form consideration. D. BigOil's promise is legally inadequate and the courts will therefore not enforce it.

A

Bill offers to sell his house to Harry for $90,000. Harry tells Bill he will buy the house for $90,000 if Bill will fix the roof. Which statement is true? A. Harry has made a counteroffer. Unless Bill accepts the counteroffer, there is no contract. B. Under the UCC, Harry has accepted the offer even though his acceptance was not the mirror image of the offer. C. Harry has revoked Bill's offer. D. Harry has made a counteroffer. If Bill does not accept the counteroffer, Harry can still accept Bill's original offer unless Bill revokes it.

A

Furniture Store runs an ad in the local Sunday newspaper announcing a special Veteran's Day offer of a free Brandname chairside table to the first three veterans who come into the store on Veteran's Day. The ad states the price of the table, the dimensions, the SKU#, and what the table is made of. Other parts of the ad indicate the store's location and its hours. Joe is a Veteran. He goes to the store on Veteran's Day, but he arrives after the hours listed in the ad and the store has closed. Joe sticks a post-it on the store door saying that he is a veteran and wants the table. Which of the following statements is correct about his offer? A. According to the court in Osprey L.L.C. v. Kelly-Moore Paint Co., Inc., Joe's sticking a the post-it on the door of the store is not the authorized means of accepting the store's offer and is not likely be considered a sufficient substitute for the ad's requirement that the offer be accepted by coming into the store because it does not ensure that the offeror will receive the acceptance at all and it does not ensure that the acceptance will be received before the offer has expired by its terms. B. According to the court in Osprey L.L.C. v. Kelly-Moore Paint Co., Inc., Joe's sticking a the post-it on the door of the store is not the authorized means of accepting the store's offer, but will likely be considered a sufficient substitute for the ad's requirement that the offer be accepted by coming into the store. C. According to the court in Lefkowitz v. Great Minneapolis Surplus Store, Inc., Joe's post-it will be considered an offer rather than an acceptance because the ad was not specific enough to be considered an offer. D. Joe will be entitled to the table as long as no more than two other veterans accepted the offer before him.

A

Furniture Store runs an ad in the local Sunday newspaper announcing a special sale on a Brandname chairside table. The ad states the price of the table, the dimensions, the SKU#, and what the table is made of. Other parts of the ad indicate the store's location, the hours, and a website where purchases may be made online. Joe goes online and places an order for the table. Two months later, Furniture Store sends Joe an email notifying Joe of the store's acceptance of his order and charges his account. Joe no longer wants the table. According to the court in Sherrod v. Kidd: A. Joe is not likely to be contractually bound to this purchase because two months is likely to be more than a reasonable amount of time within which the store had to accept Joe's offer. B. Joe will be contractually bound to this contract unless he dies or becomes incompetent before the store sends the email confirmation that his offer has been accepted. C. Joe is contractually obligated to pay for and accept the table because he did not notify the store that he had withdrawn his offer to buy the table. D. Joe was contractually bound when he went online and accepted the store's offer to sell the table.

A

If both parties exchange promises, the contract is: A. bilateral. B. void. C. implied. D. executed.

A

In the case of Denney v. Reppert,did the court allow the employees of a bank to collect a reward, because they supplied information that led to the arrest and conviction of a man who robbed their bank? A. No, the employees were under a pre-existing duty to the bank and to the public. B. Yes, the bank wants to encourage other employees to step forward in the future. C. Yes, the reward was offered and they had the information that was needed to identify the robber. D. No, they didn't physically arrest the robber.

A

Joe sends for a MBA catalog from State University. According to the catalog, the MBA applications are evaluated on the basis of undergraduate grades, GMAT (the appropriate standardized test) scores, and references. Joe has a 3.1 GPA, scores very well on the GMAT, and has excellent references. Based on the criteria listed in the catalog, Joe applies and pays the $100 application fee. His application is rejected. Later he finds out that others with low grades and test scores were accepted based on their family connections with the University. If Joe followed all of the guidelines in the college catalog and paid the required application fee, then according to the court in Steinberg v. Chicago Medical School: A. there is a valid contract. B. there is not a contract. C. there is a voidable contract. D. there is a quasi contract.

A

Joe sends for a MBA catalog from State University. According to the catalog, the MBA applications are evaluated on the basis of undergraduate grades, GMAT (the appropriate standardized test) scores, references, and other factors that the University, in its discretion, believes will enhance the standing of the University. Joe has a 3.1 GPA, scores very well on the GMAT, and has excellent references. Based on the criteria listed in the catalog, Joe applies and pays the $100 application fee. His application is rejected. Later he finds out that others with low grades and test scores were accepted based on their family connections with the University. If Joe followed all of the guidelines in the college catalog and paid the required application fee, then according to the court in Steinberg v. Chicago Medical School: A. there is a valid contract, but there has been no breach of that contract by the University or by Joe. B. there is not a contract. C. there is a voidable contract. D. there is a quasi contract.

A

Jose offers to sell George his iPad 3 for $150 and explains that George has five days to accept. After three days, Jose accidentally drops his iPad 3 from his third-floor apartment balcony, shattering it into tiny pieces. On the fourth day, George, who does not know that the iPad was shattered, notifies Jose that he accepts the offer. Do Jose and George have a valid contract? A. No, the destruction of the iPad terminated Jose's offer. B. No, because the offer and acceptance were not in writing. C. Yes, so long as the mirror rule is fulfilled. D. Yes, an offer was made and George accepted it.

A

Molly signs a contract with a publishing company to edit text manuscripts. This contract is governed by A. state common law. B. the law of quasi contract. C. Article 2 of the UCC. D. federal statute.

A

Patrick held a baseball bat to Eric's head to compel him to sign a contract advantageous to Patrick. This contract was entered under: A. physical duress. B. false representation. C. improper threats. D. undue influence.

A

Vince has lost his job and is having difficulty making ends meet. Last week, the bank repossessed Vince's car. He is telling his neighbor Paul about his bad luck and Paul says he wishes he could help Vince. Paul suggests that maybe Vince could have the old car sitting in Paul's garage if Vince could get it to run. He ends the conversation by saying "Let me think about it." The next day while Paul is at work, Vince goes into Paul's garage and begins working on the old car. He gets it running and drives it out of Paul's garage and into Vince's driveway. When Paul gets home from work, Vince shows Paul the car and asks him for the title to the car. Paul tells Vince he had not made up his mind about whether or not he would give Vince the car. Vince: A. has no claim to the car because Paul did not make a promise. B. can collect reasonable value for the work he did on Paul's car under the doctrine of quasi-contract. C. has no claim to the car because he did not have a written agreement with Paul. D. has no claim to the car because Vince's financial problems made him incapacitated.

A

Which is NOT a correct about the UCC's "Battle of the Forms" rule? A. The UCC battle of the forms rule is what common law calls the mirror image rule. B. The UCC battle of the forms rule changes the common law's mirror image rule. C. The UCC battle of the forms rule may result in a contract with terms that are not identical to the terms included in the offer. D. What gets included in the final contract terms may depend upon whether the parties are merchants.

A

Who would likely be considered a merchant under the UCC with respect to the goods in question? A. An authorized Apple computer dealer selling accessories for Apple computers and Apple-related products. B. An authorized Apple computer dealer selling the old shelving in the Apple store that was used to display the Apple products before the store was redecorated. C. An authorized Apple computer dealer selling household goods at a yard sale at his home. D. All of these are correct.

A

If Joe introduces himself as Dr. Early to sell to Gensol, knowing that people will assume that he was a medical doctor, but he never tells anyone that he is, would contracts entered into be considered fraudulent? A. Probably not, because he would have scienter. B. Probably not, because there is no statement of a material fact since he did not say he was a medical doctor. C. Probably, because he would have scienter. D. Probably, since he is giving his opinions of the merits of Gensol.

B

In DiLorenzo v. Valve and Primer Corporation, the court considered which of the following issues? A. Whether the board resolution occurred if only DiLorenzo had documentation of it. B. Whether DiLorenzo supplied consideration in exchange for the stock option. C. Whether Valve & Primer conditioned the alleged stock option on DiLorenzo's promise to remain in its employment. D. Whether other companies were attempting to hire DiLorenzo away from Valve and Primer.

B

In some situations the courts will enforce new promises to perform an obligation that originally was not enforceable. Which of the following would be that sort of promise? A. An illusory promise. B. A new promise to pay a debt barred by the statute of limitations. C. A promise to supply all of the materials a manufacturer will need for the production of a certain item for a specified period of time. D. In the majority of states, a promise by a father to pay someone who rendered emergency services to his injured son before the father had arrived at the accident scene.

B

Jamal negligently injures Gayle, for which Gayle may recover damages in a tort action. Jamal promises Gayle $10,000 if Gayle forbears from bring suit against him. Gayle accepts by not suing. What legal detriment, if any, has Gayle incurred in this case? A. Gayle has not incurred a legal detriment. B. Gayle promised to refrain from bring suit against Jamal. C. Gayle's injuries are the legal detriment that she suffered. D. Gayle had no legal right to sue Jamal for the injuries he caused, prior to the $10,000 payment.

B

Moe is Larry's attorney. Larry is a high school dropout with a tenth-grade education and no job. Moe graduated from an elite law school and is a highly-skilled attorney. Larry recently inherited a substantial amount of money from his mother. Rather than continue to utilize his late mother's financial management company (Golden Wealth), Moe successfully persuades Larry--after hours of closed door meetings and very high-level talks about the stock market, tax law, and legal jargon--to move his money from Golden Wealth and enter into a 10-year management agreement with Stooge Wealth Management, which is owned by Moe's best friend Curly. If Larry seeks to later void his agreement with Stooge Wealth Management, what would be his winning argument? A. Larry was under duress to enter into an agreement with Stooge Wealth Management. B. Moe exerted undue influence on Larry to switch from Golden Wealth to Stooge Wealth. C. Moe and Larry experienced mutual mistake. D. Larry experienced unilateral mistake.

B

One issue before the court in Neugebauer v. Neugebauer case was: A. whether the actions of Lincoln in arranging the purchase of his mother's land were unconscionable. B. whether the real estate contract in the case should be rescinded on the grounds of undue influence. C. whether the price for the land was adequate consideration. D. whether Lincoln's actions toward his mother in securing the land contract were fraudulent.

B

One issue before the court in New England Rock Services, Inc. v. Empire Paving, Inc.case was: A. whether the purchase order signed to modify the contract was a sufficient writing under the statute of frauds. B. whether the modified agreement between NER and Empire was valid and enforceable as supported by sufficient consideration. C. whether the NER did a poor job of bidding the job due to lack of preparation on their part. D. whether Empire was operating in good faith during the course of the conduct.

B

Which of the following would be material to the sale of a racehorse? A. The horse's coloring is chestnut. B. The horse's running time in the last race was the fastest in the circuit. C. The horse was ridden by Josh Jockey in the last race. D. All of these are correct.

B

Suppose that Jack, Hal, and Sophia enter into an agreement in regards to the sale of the restaurant. The contract includes the non-competition agreement. A few months later, Jack decides that he will sell the frozen food in violation of non-competition agreement, unless if Hal and Sophia agree to pay him an extra $100,000. Hal and Sophia agree, since they do not want to fight. Six months later, however, they still have not paid and Jack sues. What is the result? A. Hal and Sophia would win since agreeing to not do something, in this case sell the food, is not valid consideration. B. Hal and Sophia would win, since Jack already had a prior existing legal duty to not compete with them. C. Jack would win since agreeing to not do something, in this case sell the food, is not valid consideration. D. Jack would win since Hal and Sophia agreed to pay the extra $100,000.

B

The fact that the consideration turns out to be disappointing __________ the binding character of the contract. A. does affect B. does not affect C. sometimes affects D. None of these are correct.

B

The law very carefully scrutinizes contracts between those in a relationship of trust and confidence that is likely to permit one party to take unfair advantage of the other. Which of the following is not an example of that type of relationship? A. Agent and principal. B. Hair dresser and client. C. Parent and child. D. Doctor and patient.

B

The mirror image rule relates to which required element of a contract? A. The offer. B. The acceptance. C. Both the offer and the acceptance. D. Only to acceptances in contracts subject to UCC.

B

To be effective, an offer must: A. be in a specified format. B. be communicated to the offeree. C. always contain the price of a product or service offered. D. be spoken directly to the offeree.

B

When only one party is mistaken as to a fact or facts of the transaction, it is termed: A. negligent misrepresentation. B. unilateral mistake. C. subjective concealment. D. mutual mistake.

B

Which of the following contracts is covered by Article 2 of the Uniform Commercial Code? A. The sale of a building. B. The sale of new furniture. C. An agreement to have the sidewalk shoveled. D. A sale of stock in ABC, Inc.

B

Chase and Tyler are best friends and fellow police officers. One day, Chase came home with a brand new, top-of-the-line Ford F-150 4x4 pickup valued at $38,000 and showed it to Tyler. Tyler told Chase that he wanted a truck just like his. Jokingly, Chase says, "Sure thing, buddy. I'll sell you my new pickup for $100 and a six-pack of beer!" If Tyler seeks to accept Chase's offer, what is Chase's best defense? A. Chase was merely advertising a price to Tyler. B. Chase's offer is undervalued. C. Chase intended the offer as a joke and a reasonable person would understand it to be a joke. D. Chase's terms were open.

C

Daniel is a self-made millionaire, but he has been medically committed to a mental health facility. A court also ordered Daniel's sister, Michelle, to preside over Daniel's business affairs. Once inside the mental health facility, Daniel befriends his nurse, Amanda. One day, Amanda tells Daniel about her invention to help identify stray dogs and cats. Daniel was so impressed by Amanda's invention that he offers to buy it for $500,000. Amanda accepts Daniel's offer. Did Daniel and Amanda form a contract? A. Yes, because the contract is perfectly legal. B. No, because the agreement lacks consideration. C. No, because Daniel lacks the capacity to contract. D. Yes, because Daniel offered to buy Amanda's invention, and Amanda accepts the offer.

C

Debra delivers a package to Jackie and requests Jackie to sign a receipt for the package, holds out a simple sheet of paper that says "Receipt," and shows a line where Jackie is supposed to sign. The line, which appears to be at the bottom of the receipt, is actually a promissory note for a $10,000 loan. Jackie signed the line, as indicated by Debra and did not know that she was signing a note. This scenario is an example of: A. Undue Influence. B. Duress. C. Fraud in the execution. D. Fraud in the inducement.

C

Furniture Store runs an ad in the local Sunday newspaper announcing a Veteran's Day special on a Brandname chairside table. The ad states the price of the table, the dimensions, the SKU#, and what the table is made of. Other parts of the ad indicate the store's location, the hours, and a website where purchases may be made online. If Joe goes into the store sometime during the day on Veteran's day and tries to buy a Brandname chairside table, but is told the store has sold out of that particular table, according to the court in Lefkowitz v. Great Minneapolis Surplus Store, Inc.: A. the store is likely to be in breach of contract because the ad was an offer that Joe accepted. B. the store is not likely to be in breach of contract because Joe wasn't the first person to accept the offer made in its ad. C. the store is not likely to be in breach of contract because the facts and circumstances regarding its ad indicate that the ad was intended to be like most ads—an invitation for the public to make an offer—and the store did not accept Joe's offer. D. the store is not likely to be in breach of contract because an ad made to the generalpublic can never be an offer.

C

Ignore Vinny's agreement with Oscar and assume that Vinny and Maria had an otherwise valid contract. Could Maria avoid her obligations if she finds out the car does not have air conditioning? A. Yes, since most people prefer cars with air conditioning. B. Yes, she wanted a car with air conditioning so she could later say she meant for it to be in the contract. C. No, the only condition in her acceptance was that it pass a smog inspection. D. Yes, it is implied that she can test drive the car before a contract is formed.

C

Ignoring issues of the Statute of Frauds, is there a contract for the sale of Vinny's Celica? A. Yes, between Vinny and Oscar for $4,000 now and $1,000 in a month B. Yes, between Vinny and Oscar, if Oscar is willing to pay $5,500. C. Yes, between Vinny and Oscar for $5,000 cash, since that was the first offer accepted. D. Yes, between Vinny and Maria for $5,500, since Maria gave the highest offer.

C

In order to have a valid contract, in addition to the four basic requirements of a contract, which of the following must also occur? A. The consideration that one party is giving the other must be of the same value as the consideration that is being received. B. There must be the sale of goods from one party to another. C. There must be an absence of invalidating conduct, such as duress. D. Both parties must already have performed (done what they promised to do).

C

Which of the following is required in order to recover in quasi contract? A. An implied or express promise B. A valid contract C. Acceptance or retention of a benefit conferred on the defendant by the plaintiff D. A voidable contract

C

Mike, a 75-year-old mechanic, returned Carrie her car after fixing the brakes. Mike told Carrie: "I put some new brakes on her—she should brake with complete ease!" When Carrie drives away, she cannot stop her car and crashes into a dumpster. It is later discovered that Mike failed to reconnect one of the brake lines. There is no indication that Mike knew that he failed to reconnect the brake line. If Carrie sues Mike for fraud, and the court sides with Mike, what would be the court's reason? A. Mike's statement was not a fact. B. Carrie did not experience duress. C. Mike lacked scienter because he did not make the statement with the intent to deceive. D. Mike was puffing.

C

Ned's father orally promises to give him a car for his twenty-first birthday. Using the rule in most states, can Ned legally enforce this promise? A. Yes, Ned can sue his father based on the promise. B. Yes, Ned can sue his promise based on the statute of frauds. C. No, a gratuitous (or gift) promise is unenforceable. D. No, Ned should have gotten the promise in writing.

C

Retail stores typically put advertisements in newspapers describing goods and stating prices. These ads are generally considered to be: A. offers only if they are made by merchants. B. offers only if they are not made by merchants. C. invitations to buyers to make an offer to buy the goods described. D. firm offers.

C

Susie told Kelly, "If you wash my car, I promise to pay you $20." Kelly replies, "OK—I promise to wash your car." This exchange is an example of: A. Promissory Estoppel. B. Promisor's Obligation. C. Bilateral Contract. D. Unilateral Contract.

C

The Acme Corporation contracts with the ToysandMoretoys Corporation to sell to ToysandMoretoys its entire production. After signing the agreement, if Acme increases its production from one shift to two shifts will ToysandMoretoys have to buy all of the doubled production? A. Yes, they take the risk that Acme will increase production. B. Yes, they are lucky to get the chance to handle the product exclusively. C. No, there are good faith limitations on output contracts. D. No, ToysandMoretoys always has the right to limit how much they buy.

C

What is a requirement of an express contract? A. It is written and signed. B. It is based on the conduct of the parties. C. The terms are stated in words. D. It consists of a promise in exchange for an act.

C

When might a contract might be unenforceable? A. If the purpose of the contract was to commit a tort. B. If one party has not yet performed, but the other party has fully performed. C. If the statute of limitations has passed. D. If the parties could not reach an agreement.

C

Which of the following is NOT always necessary in order for a valid contract to be formed? A. Mutual assent B. Legality of purpose C. A writing D. Consideration

C

Which of the following offers cannot be revoked? A. An offer to pay the high school student next door if he takes in your mail when you go on vacation regardless of whether he promises to take in the mail, if the revocation is prior to leaving for vacation. B. An offer to pay the high school student next door if he will take in your mail when you go on vacation regardless of whether he promises to take in the mail, if the revocation is before any mail has been delivered. C. An offer to pay the high school student next door if he will take in your mail when you go on vacation regardless of whether he promises to take in the mail, if the revocation is before your return from vacation but after he has collected your mail for all the days that you have been on vacation up until the revocation. D. None of these are correct.

C

Which of the following will terminate an offer? A. Rejection by the offeror. B. Subsequent illegality of the purpose but not of the subject matter of the offer. C. Destruction of the subject matter of the offer. D. Death of the offeree but not of the offeror.

C

__________ is an unenforceable promise under the law of contract because of a lack of consideration. A. Fraud B. Mutual mistake C. Gift D. Justifiable reliance

C

__________ is what each party to a contract gives up to the other in making their agreement. A. Contract under seal B. Promissory estoppel C. Consideration D. None of these are correct.

C

Darryl contracted with Right Builders to build an addition to his house for $25,000. After digging the foundation, Darryl decides he wants to have the house done earlier than was originally agreed. Right Builders agree, but say that it will need to charge an additional $5,000 for the job. Assuming Darryl agrees, which of the following is correct? A. Darryl will only have to pay $20,000. B. This is a contract under seal which is enforceable. C. This is the settlement of a disputed debt that requires no additional consideration on the part of Right Builders. D. This is a modification of a preexisting contract, but Right Builders has provided additional consideration since they are expediting the completion of the project.

D

Furniture Store runs an ad in the local Sunday newspaper announcing a special sale on a Brandname chairside table. The ad states the price of the table, the dimensions, the SKU#, and what the table is made of. Other parts of the ad indicate the store's location, the hours, and a website where purchases may be made online. Joe goes to the store to purchase the table but sees another very similar table that is not on sale ("the regularly priced table"). He offers to buy the regularly priced table from the store for the sale price of the Brandname table. The store says that it cannot sell it at the sale price, but it can sell it for 10% off the listed price. Joe says that is too much money to spend for the regularly priced table. Joe continues to shop around. Seeing nothing he likes, he decides to buy the regularly priced table for 10% off. When he goes to pay for the table, the store charges him full price. If challenged in court, the court is most likely to: A. find that by going into the store to look at the advertised table, Joe accepted the store's offer to sell the Brandname table to Joe for the sale price and, therefore, Joe is contractually obligated to pay for and accept the Brandname table. B. find that the store is contractually obligated to sell the table to Joe at 10% off the regular price because the store made that offer to Joe and Joe accepted the store's offer. C. find that the store effectively revoked its offer when it charged Joe full price. D. find that the Joe's initial rejection of the store's offer to sell the regularly price table for 10% off effectively terminated that offer; that Joe is now making an offer to purchase the regularly priced table for 10% less than the asking price; and the store is free to accept or reject Joe's offer.

D

How do parties usually show mutual assent? A. By one party making an offer and the other party making a counteroffer. B. By one party making an offer in writing and the other party accepting in writing. C. By one party making an oral offer and the other party accepting by performing. D. By one party making an offer in words or by conduct and the other party accepting in words or by conduct.

D

If a court was to consider whether Joe (or Pharzime) committed fraud in their contracts, what of the following elements would not need to be proven? A. justifiable reliance B. false representation C. scienter D. damages

D

Joe takes his car into the repair shop to have his tires realigned. While he is waiting for his car, he sees the repairmen take his car to the area where they change the car's oil. Joe says nothing as he is hoping he can get a free oil change. Joe watches while the oil in his car is changed. The car is then taken to the area where the tires are realigned. Joe watches while the tires are realigned. The employees next take Joe's car to be washed. Joe did not know his car would be washed, but knows that many car repair businesses have a practice of cleaning the cars at no additional cost to the customer after completing the repair work. When Joe is presented with the bill, there is a charge for the oil change, the realignment, and the car wash.If challenged in court, the court is most likely to make Joe pay for: A. the entire bill (oil change, realignment, and the car wash) because he had a contract with the repair shop for all three items. B. the entire bill (oil change, realignment, and the car wash) under the doctrine of quasi contract because Joe saw all of the work being done and did nothing to stop it. C. only the realignment because that is all he contracted for. D. the realignment because that is what he contracted for and the oil change under the doctrine of quasi contract.

D

Joe takes his car into the repair shop to have his tires realigned. While he is waiting for his car, he sees the repairmen take his car to the area where they change the car's oil. Joe tries to get their attention but cannot because he is not allowed in the repair area and there is too much noise in there for the repairmen to hear him knocking on the window. The car is then taken to the area where the tires are realigned. Joe watches while the tires are realigned. The employees next take Joe's car to be washed. Joe asks another customer in the waiting room if the car wash is complimentary (free). The customer points to the sign above the counter listing prices for services, including the car wash. Joe does not bother trying to get the attention of the repairmen because he was not successful before, but he does approach the cashier who has just returned from break. Joe tells the cashier he did not want the car washed. The cashier tells him it is too late because the car is already being washed. When Joe is presented with the bill, there is a charge for the oil change, the realignment, and the car wash. If challenged in court, the court will most likely require Joe to pay for: A. the entire bill (oil change, realignment, and the car wash) under the doctrine of quasi contract because Joe saw all of the work being done and was unable to stop it. B. the entire bill (oil change, realignment, and the car wash) because he had a contract with the repair shop for all three items. C. the realignment because that is what he contracted for and the car wash under the doctrine of quasi contract because he spent too much time talking to the customer before he told the cashier he didn't want the car washed. D. only the realignment because that is all he contracted for.

D

Leo tells Nora "I promise to pay you $5,000 next year." Next year, Leo fails to pay Nora and Nora sues. Is Leo's promise enforceable? A. No, this promise is unsupported by consideration. B. No, because Nora is not undertaking anything to her legal detriment. C. No, because Leo's promise is a gratuitous promise made without consideration. D. All of these are correct.

D

Ordinarily, courts do not consider the __________ of the consideration given for a promise. A. legality B. assumption of the risk C. modification D. adequacy

D

Suppose that Jack makes an offer to sell the restaurant on July 10th. Hal and Sophia decide to think it over. On July 15th, they mail a letter of acceptance to Jack. On July 16th, Hal and Sophia change their mind and call Jack, stating that they do not want to purchase the business. On July 20th, Jack receives the letter of acceptance. Would there be a valid contract? A. Yes, a valid contract was at the time that Jack opens the letter and actually reads it. B. Yes, a valid contract was formed on July 20th when the letter of acceptance was received. C. No, because Hal and Sophia informed Jack that they did not want to buy the business prior to Jack receiving the letter of acceptance. D. Yes, a valid contract was formed on July 15th when the letter of acceptance was sent.

D

Suppose that Jack, Sophia, and Hal enter into a contract to close on the business without the non-competition agreement. Jack states that he would probably sign the non-competition agreement if they included an extra $100,000. A month later, Hal and Sophia bring Jack $100,000. What is the result? A. If Jack does not accept the $100,000, there is no valid contract for the sale of the business or for the non-competition agreement. B. Jack cannot change his mind, since he stated that he would probably accept $100,000 additional for the non-competition agreement. C. If Jack does not accept the $100,000, he may not sell the frozen food, but only for a reasonable amount of time. D. If Jack does not accept the $100,000, there is a valid contract for the sale of the business, without a non-competition clause.

D

Susie told Kelly, "If you wash my car, I promise to pay you $20." Kelly does not reply. This exchange is an example of: A. Promissory Estoppel. B. Bilateral Contract. C. Promisee's Obligation. D. Unilateral Contract.

D

The Jones' have always admired a house that sits on the top of a hill owned by the Smiths. Martin is a mutual friend of both the Jones and the Smiths. One day, Martin mentions to the Smiths how much the Jones would love to buy the Smith home. The Smiths say that if they sell the house, they would be happy to sell it to the Jones. Martin relays this conversation to the Jones and the Jones immediately call the Smiths to accept the Smith's offer to sell. Have Smiths made an offer to sell their home to the Jones? A. No. The Smiths did not objectively intend to make an offer because they did not clearly state they were willing to sell the house. B. No. The Smiths did not include a selling price in their conversation with Martin so the offer would fail for lack of specificity and definiteness. C. None of these are correct. D. All of these are correct.

D

The doctrine of promissory estoppel: A. is a doctrine enforcing contractual promises. B. applies even if the promisor should not have expected the promisee to rely on the promise. C. applies even if the promisee does not rely on the promise. D. is a doctrine that relies on justice and not contractual rights.

D

When is there an effective acceptance of an offer to enter into a unilateral contract? A. When the offeree says he probably will do what was asked of him in the offer. B. When the offeree begins to do what was asked of him in the offer. C. When the offeree has substantially but not fully performed what was asked of him in the offer. D. When the offeree has fully performed what was asked of him in the offer.

D

Sam emailed Bob offering to sell him his 1970 Corvette for $7,000. Later, Sam finds out 1970 Corvettes which are in excellent condition and have all the original parts sell for closer to $57,000. He changes his mind about selling his Corvette to Sam for $7,000. Which of the following statements about the offer is correct? A. Sam can revoke his offer to Bob at any time so long as there is still an offer to revoke. B. Sam cannot revoke his offer to Bob because he made it via email and email is considered a writing. C. Sam can reject his offer to Bob at any time so long as there is still an offer to reject. D. Sam cannot revoke his offer to Bob if Sam sells cars because then his offer is a firm offer.

A

Sergio buys an LED television from The Television Superstore in Sacramento, California. What law governs this transaction? A. The Uniform Commercial Code (UCC). B. Common law. C. None of these answers are correct. D. Both the common law and the UCC.

A

Sonny promises Maria not to foreclose for a period of six months on a mortgage that Sonny owns on Maria's real property. Relying on this promise, Maria begins to build a home on the land. If Sonny forecloses in two months, can Maria seek to enforce Sonny's promise? A. Yes, Sonny made a non-contractual promise and Maria reasonably relied on such promise and began building a home on the land. B. Yes, Maria can argue that she was under duress by Sonny. C. No, Sonny's promise was illusory. D. No, this contract is illegal.

A

Suppose at the end of the meeting, Jack makes an offer regarding the restaurant buyout, which includes the non-competition agreement. Prior to Hal and Sophia agreeing to the offer however, Jack changes his mind. Can he do so? A. Yes, as long as he actually communicates the revocation to Hal and Sophia (or their agent) prior to acceptance. B. No, unless the offer states that it is revocable. C. No, once an offer is made, it can never be revoked. D. Yes, and there is no need to actually communicate the revocation to Hal and Sophia (or their agent) prior to acceptance.

A

Suppose that Jack states that he would sell the restaurant with the non-competition agreement for an extra $100,000. Hal and Sophia say they will buy the restaurant, but will only pay an extra $75,000 for the non-competition agreement. Jack says no to this counteroffer. Hal and Sophia then say they will pay $100,000 for the non-competition agreement. Do they now have a valid contract? A. There would be no valid contract. B. Yes, but only for sale of the restaurant, without the non-competition agreement. C. Yes, for the sale of the restaurant with non-competition agreement for an extra $75,000. D. Yes, for the sale of the restaurant with the non-competition agreement for an extra $100,000.

A

Sam emailed Bob offering to sell him his 1970 Corvette for $7,000 and also said that he would give Bob two weeks to accept Sam's offer before he started advertising the Corvette for sale. One week later, Bob learns that Sam has sold his 1970 Corvette to Terry. Which of the following statements about the offer is correct? A. Sam's offer to Bob is not a firm offer, but he cannot sell the car to Terry until the two weeks are up. B. Sam's action of selling the car to Terry is a revocation of his offer to Bob. C. Sam's offer to Bob is a firm offer; and he must get his car back from Terry and sell it to Bob for $7,000 if Bob accepts his offer within the two weeks. D. Terry will not have to sell the car to Bob for $7,000 if Bob wants the car if Terry paid $9,000 for the car.

B

Suppose that Jack, Hal, and Sophia enter into an agreement for the sale of the restaurant, with Jack stating in the agreement that if he feels comfortable with his finances in his retirement, that he will not sell the frozen food in competition with the restaurant. After the sale, the stock market rises considerably, and Jack's net worth quadruples. He still decides to sell the frozen food. Hal and Sophia sue. What is the result? A. Hal and Sophia would win since Jack's net worth quadrupled. B. Jack would win since the promise not to compete was illusory. C. Hal and Sophia would win since the contract mentioned the non-competition agreement. D. Jack would win, unless that Hal and Sophia could prove that Jack was comfortable with his finances in his retirement.

B