LGS EXAM 2: practice problems

Fatima asks Gianni, a salesperson for Hues & Colors, for a gallon of paint of a certain color and suitable for interior walls. Gianni sells her a gallon of interior paint of a different color. Gianni has breached... a) an implied warranty of fitness for a particular purpose b) the implied warranty of merchantability c) an implied warranty for the ordinary purpose of the goods d) no warranty

a) an implied warranty of fitness for a particular purpose

Construction Inc. contracts to buy some heavy equipment from Dig Machines Inc. Before either party performs, Dig sells its assets to Excavation Corporation. On learning of the sale, Construction is concerned about its contract with Dig. Construction should... a) demand an assurance of performance from the seller b) consider the contract repudiated and sue the seller for breach c) buy the equipment from a different firm and bill the seller for the price d) buy the equipment from a different firm and bill Excavation for the price

a) demand an assurance of performance from the seller

Debt Collection Service enters into a contract to employ Emma as a billing manager for two years. During the first year, Emma is often absent without explanation and when present fails to adequately do her job. This... a) discharges the employers from the contract b) has no effect in the employer's performance c) changes the employer's duties under the contract d) suspends the employer's duty to perform

a) discharges the employers from the contract

Orin, an employee of Plumbing LLC, makes a substantial mathematical mistake in totaling the estimated costs for a project for which Quality Built Inc. is seeking bids. Consequently, Plumbing's bid is significantly low. Any contract with Quality Built that includes the mistake may be rescinded... a) if Quality Built knew or should have known the mistake b) if Orin's supervisor did not know of the mistake c) if Plumbing knew or should have known of the mistake d) under no circumstances

a) if Quality Built knew or should have known the mistake

Fig, who owns and operates Garden Farm, agrees to sell Harvest Grocery a minimum quantity of fresh fruits and vegetables every week for three months. If bad weather destroys Fig's crops, the obligation to deliver produce to Harvest is... a) breached b) discharged c) not effected d) suspended

b) discharged

Holes Inc. begins digging a foundation at a construction site for Investment Company under a contract for a certain price. After six months, Holes demands a higher price because of extraordinary difficulties that were totally unforeseen at the time the contract was formed. An agreement to pay the higher price is... a) enforceable as the consideration is past b) enforceable due to unforeseen difficulties c) unenforceable as an illusory promise d) unenforceable due to the preexisting duty rule

b) enforceable due to unforeseen difficulties

Minh owns a beach house that she rents to vacationers. Minh gives her son Ngo a trip to Omaha on his graduation from community college. Minh sells her car to her neighbor Phan for $4,500. UCC Article 2 covers... a) the beach house rentals b) the sale to Phan c) the sale to Phan and the beach house rentals d) the gift to Ngo

b) the sale to Phan

Brooke is an art collector and hires a broker to buy and sell artworks on her behalf. Under the UCC, in those transactions, Brooke has the status of... a) an agent or other intermediary b) a consumer c) a merchant d) an employer and manager

c) a merchant

Kara, a minor, enters into a contract to buy a thoroughbred from Rancho Mesa. Kara can disaffirm the contract... a) only by words b) only by conduct c) by words or conduct d) under no circumstances

c) by words or conduct

Grass Farm LLC offers to sell fifty bales of hay at a certain price to Horse Stable Inc. The owner of the stable responds, "We agree if you agree to make it sixty bales for the price." Their contract is formed according to... a) the new terms if the acceptance b) whatever is reasonable c) none of the terms because no contract is formed here d) the terms of the original offer

c) none of the terms because no contract is formed here

Steel Buildings Inc. agrees to sell four portable garages to Truck Service Center. Five days later, Truck refuses delivery and cancels the contract. Steel is entitled to... a) force Truck to accept the garages b) recover any damages from Truck but not resell the garages c) resell the garages and recover any damages from Truck d) resell the garages but not recover any damages from Truck

c) resell the garages and recover any damages from Truck

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

d) Efron understood the legal consequences

Yuri agrees to zed.com's terms of service and downloads the site's app. Yuri then reverse-engineers the app to create a competing product. This is... a) within the rights of a contracting party b) a fair use of the app, with or without a contract c) acceptable as long as the site's owners are unaware of the activity d) a breach of contract

d) a breach of contract

An ad for the New Plays Festival asks playwrights to submit their work and "we might produce it for the world." Omar submits a play with a note that states, "I accept." Between the Festival and Omar, there is... a) a contract to produce Omar's play b) a contract to consider producing Omar's play c) a contract to negotiate with Omar to produce the play d) no contract

d) no contract

A lease between Mia and Francisco for residential property contains an exculpatory clause. This clause is most likely... a) enforceable as a matter of public policy b) enforceable if either party is in a business important to the public c) enforceable if an event occurs to which the clause applies d) unenforceable

d) unenforceable

TRUE OR FALSE: A minor can disaffirm a contract at any time but remains legally obligated to perform it.

false

TRUE OR FALSE: After title passes to a buyer, a seller no longer has an insurable interest in the goods.

false

TRUE OR FALSE: Any use of delivered goods by the buyer—even for the limited purpose of testing them—constitutes acceptance.

false

TRUE OR FALSE: Corporate stocks and bonds meet the requirements to be among the items of property characterized as goods under the UCC.

false

TRUE OR FALSE: It is not possible for the implied warranty of merchantability to be breached if a merchant does not know or could not have discovered that its product was defective.

false

TRUE OR FALSE: Online offers do not need to contain specific information to potential consumers.

false

TRUE OR FALSE: The essential feature of undue influence is that a party being taken advantage of suffers from a mental or physical impairment.

false

TRUE OR FALSE: A contract for a sale of natural gas is a contract for a sale for goods.

true

TRUE OR FALSE: A contract is substantially performed when one party receives most of the benefits promised in the deal.

true

TRUE OR FALSE: An offer can be revoked by the performance of an act that is inconsistent with the existence of an offer and that is made is known to the offeree.

true

TRUE OR FALSE: An unconscionable contract is one in which the terms of the agreement are oppressive, unscrupulous, or grossly unfair.

true

TRUE OR FALSE: Common law of contracts and the Uniform Commercial Code (UCC) may be used by courts in contract disputes.

true

TRUE OR FALSE: In effect, a counteroffer converts the original offeror into an offeree with the power of acceptance.

true

TRUE OR FALSE: Restraints of trade interfere with free competition.

true

TRUE OR FALSE: The presence of fraud affects the authenticity of the innocent party's consent to a contract.

true