Quiz 2 Mindtap

Pastries Inc. sends Rollo its catalogue showcasing a variety of baked goods for certain prices. This is

*a. an advertisement, not an offer.* b. an invitation to negotiate, not an offer. c. an offer. d. a request, not an offer.

Bottling Company enters into a contract with Chug's Brewery to provide certain bottling and delivery services. Before Bottling starts to work, the market price rises for the fuel for glass ovens. Bottling tells Chug's that due to the added cost it will not perform their deal. Bottling's contractual obligation to Chug's is

*a. breached.* b. rescinded. c. suspended. d. discharged.

Restore Inc. contracts to resurface the pools at Swim Park by June 1. Restore knows that if performance is not timely, Swim Park will have to delay its seasonal opening. Restore finishes the job June 15. In a suit for breach, Swim Park can recover

*a. the loss of profit from the delayed opening.* b. nothing—the work is done. c. the cost of new pools. d. the difference between the contract and market prices for the work.

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

a. Dick intentionally deceived Ernie. b. Dick misrepresented material facts. c. Ernie justifiably relied on Dick's misrepresentations. *d. Ernie is under twenty-one.*

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Bagel Café in exchange for her payment of a debt that Lyle owes to New Credit Corporation. Under this contract, the intended beneficiary is

a. Miranda. b. any customer of Miranda's. *c. New Credit.* d. Lyle.

Luke puts his motorcycle up for sale via a post on an online auction site. This is

a. a statement of future intent, not an offer. b. a preliminary negotiation, not an offer. c. an offer. *d. an invitation to negotiate, not an offer.*

Vin admires Will's collection of vinyl records. Vin asks, "Will you sell it?" This statement is

a. an invitation to negotiate, not an offer. b. an offer. *c. a request, not an offer.* d. an expression of intent, not an offer.

If a contract between two parties is avoided

a. both parties must fully perform their obligations under it. b. the parties are bound to negotiate another contract on the same subject. *c. both parties are released from it.* d. the parties' contractual obligations are postponed.

Sara enters into a contract to sell her condo to Ted for a certain price on a specific day. On that day, Sara unconditionally offers to perform. Sara's offer

a. excuses the parties' performance under the contract. b. conditions Ted's promise to pay for the property. c. suspends the parties' contractual obligations. *d. constitutes tender of performance.*

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. order Ernie to stop doing business. b. award Cathy damages. c. prohibit both parties from operating donut shops. *d. reform the covenant.*