Chapter 12 - Quiz

Oscar owns Payroll Company, a bookkeeping service. Oscar pays Remy $5,000 to steal a list of a competitor's clients. This deal is a. enforceable. a. void and unenforceable. b. voidable at the option of either party. c. voidable at the option of the party having d. less bargaining power.

b. void and unenforceable.

Dale's Uncle Ed tells Dale, "If I feel you deserve it at the time, I will give you a new car when you graduate from college." Ed's promise is a. illusory. b. enforceable. c. a forbearance. d. a preexisting duty.

a. illusory.

The state of New York enacts a usury statute. With respect to different types of transactions, including ordinary loans, the purpose of the statute is to a. set a maximum rate of interest. b. regulate certain forms of gambling. c. specify clauses that must be included in certain contracts. d. prohibit certain contracts based on their subject matter.

a. set a maximum rate of interest.

Greta files a suit against Home Repair Corporation under the doctrine of promissory estoppel. Greta must show that a. she justifiably refused to fulfill a promise to Home Repair b. she justifiably relied on Home Repair's promise. c. Home Repair justifiably refused to fulfill a promise to Greta. d. Home Repair justifiably relied on Greta's promise.

b. she justifiably relied on Home Repair's promise.

To constitute consideration, there must be a. a payment. b. a performance. c. a bargained-for exchange. d. serious thought underlying each party's intent to contract.

c. a bargained-for exchange.

Cathy agrees to sell her Daily Donut shop to Ernie. In the agreement, there is a covenant not to compete that prohibits Cathy from operating a donut shop within a certain distance. If the restriction is unreasonable, a court will most likely a. award Cathy damages. b. order Ernie to stop doing business. c. reform the covenant. d. prohibit both parties from operating donut shops.

c. reform the covenant.

Intoxicated, Efron enters a contract for the sale of his business, Freight Dispatch, to Gretel for less than its market value. This contract is enforceable if, at the time, a. Efron's intoxication was purely voluntary. b. Gretel fraudulently induced Efron to become intoxicated. c. Gretel was also intoxicated. d. Efron understood the legal consequences.

d. Efron understood the legal consequences.

Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump a. imposes a moral obligation on Kim to pay Leo. b. imposes no obligation on Kim unless she is satisfied with the job. c. is not sufficient consideration because it is not goods or money. d. is the consideration that creates Kim's obligation to pay Leo.

d. is the consideration that creates Kim's obligation to pay Leo.

Fagin and Gretel agree to hijack a truck carrying a load of almonds. If Fagin later refuses to go through with the crime, Gretel can a. enforce the agreement. b. obtain damages in the amount of her partner's share of the illegal profits. c. obtain damages in the amount of her own share of the illegal profits. d. not enforce the contract.

d. not enforce the contract.

Blanche, a minor, enters into a contract to buy two all-season passes from Chalet Mountain Resort. The contract will be made enforceable upon her reaching the age of majority if Blanche a. ratifies it. b. disaffirms it. c. nullifies it. d. voids it.

a. ratifies it.