acct 315 exam three
A contract between Speculative Investment Company and Trusts & Bonds Inc. excludes liability as a result of fraud. This exclusion is enforceable
under none of the choices
Leo contracts to install watering troughs in Ken's dairy barn. When Leo becomes seriously ill, he contracts with Jay to do the work. Jay is unreliable and never shows up. Ken hires Ike to do the installation. To recover for any loss on the deal, Ken can sue
Jay or Leo
Real Quick Food Inc. and Spud Farm discuss periodic deliveries of potatoes. Despite the absence of an invoice or other writing evidencing the terms of a deal, Spud begins to perform, and Real accepts the deliveries but refuses to pay. As a contract, this arrangement is most likely enforceable against
Spud and Real, at least to the extent of the performance
The United States taxes each barrel of imported oil at a flat rate. This is
a tariff
East Bay Café orders seafood from Fresh Catch Company. Fresh places the goods at East's disposal. Fresh's performance under the contract is
complete
Solar Power LLC and Trey enter into an oral contract under which Solar agrees to provide Trey with lifetime employment. This contract may be enforceable by
either Solar or Trey
The rights under a contract for personal services can normally be assigned
if all that remains on the deal is a payment of money
Kent and Lucy enter into a contract for the sale of Mountain Valley Ranch. To be enforceable, this contract must be
in writing or evidenced by a written memorandum
If performance under a contract will vary materially on a delegation of its duties to a third party from that expected by the obligee, the delegation is
prohibited
Lyn orally contracts to sell five acres of timber to Mountain Mill LLC. The buyer harvests the trees but fails to remit the full price. Because of the lack of a written contract, Lyn could most likely recover on a theory of
quasi contract
Steel Mill Inc. agrees to deliver a certain quantity of steel to T-Bar Framing Corporation. The agreement states that delivery is to be within "9" days, although the parties intend "90" days. The seller cannot convince the buyer to amend the contract. The most appropriate remedy is most likely
reformation
The most common way to terminate contractual duties is by
performance
Leah and Mason are parties to a contract for the sale of Mason's day care facility to Leah. Before the deal closes, they agree to substitute Nell for Leah as a party to the deal. This does not require
performance of the original contract by all of the parties
Builders Inc. agrees to construct an office building for Commerce Center Corporation. The project proceeds according to plan, but before it is done, the buyer tells Builders to quit. In a suit for breach, Builders may recover
profits plus the costs incurred up to the time of the breach
Agri Products Inc., a U.S. firm, signs a contract with Bao Ltd., a Chinese firm, to distribute Agri's products in China. The most likely reason for this deal is
China represents a substantial market for Agri
Dick's Burgers enters into an oral contract with Equipment Warehouse for the purchase of a single-spindle milkshake mixer for $300. Assuming the terms can be proved, the contract is enforceable by
Dick's or Equipment
Rocco orally agrees to sell his Spring Beverage Company to Thirsty Inc. Rocco notes the terms on a sheet of Spring stationery and signs it. This agreement is most likely enforceable against
Rocco
State University provides housing on campus and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be a student at State. This requirement is
a condition
Opti-Med Inc., a U.S. firm, signs a contract with Pharma Ltd., a Canadian firm, to give Pharma the right to sell Opti-Med's products in Canada. This is
a distribution agreement
Copper Circuit Inc. and Direct Electric LLC sign an agreement that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to estimate but approximately $1,000." This is
a liquidated damages clause
The government of Japan sets a limit on the amount of rice that can be imported from the United States. This is
a quota
Daisy enters into a contract with Evan for the construction of a Fast Food Café, according to a certain schedule. The parties perform some preparatory steps, but Evan materially and willfully fails to begin work on the specified date. To rescind the contract, Daisy must show that the parties can
be restored to the status quo
Nakeya and other foreign citizens allege environmental destruction committed overseas by the government of Cameroon on behalf of Global Mining Company, a U.S. firm. To seek redress for their injuries in a U.S. court, these citizens can
bring civil suits under the Alien Tort Claims Act
Jason and Kelly enter into a contract for Jason to renovate Kelly's house by a certain date. Jason never performs. After the applicable limitations period has passed, Kelly decides to bring a suit against Jason for breach. This suit
can no longer be brought
Inez hires Josh to paint her portrait to her satisfaction for $4,000. When Josh finishes the portrait, Inez announces that she is not satisfied with it. Inez
does not have to pay Josh
Guardian Security Inc. and Hedge Fund Corporation enter into an oral contract under which Guardian agrees to provide services for Hedge's offices for as long as needed. This contract may be enforceable by
either Guardian or Hedge
Jan is obligated under a contract to pay Katie $500. Katie assigns the right to receive the funds to Loren. If Jan does not pay the debt, the obligee can
enforce the payment in court
Dairy Farm enters into a contract with Edible Ice Cream Inc. to supply milk. Later, Dairy decides that it is no longer advantageous to fulfill the contract and subsequently fails to perform as promised. Edible files a suit against Dairy. A breach occurred when Dairy
failed to perform as promised
Federal overtime provisions apply only after a covered employee works more than
forty hours in a week
Sufficient business develops in France for Graphic Comics Inc., a U.S. firm, to appoint Comics Graphique Ltd., a French firm, to act as Graphic's marketing representative in France where they will put together ad campaigns to help drum up more business for Graphic. This is
indirect exporting
A body of law—formed as a result of international customs, treaties, and organizations—that governs relations among or between nations is
international law
If a contract stipulates that it cannot be assigned, then it cannot be assigned unless the assignment
involves ownership rights in real estate
Investment Corporation wants to monitor business communications on phones that the employer provides to the employees. The employer's best course of action to avoid liability under laws related to employee monitoring is to inform
its employees
According to most states' laws, to be enforceable as a contract under the Statute of Frauds, a writing must
name the parties
Laminate LLC agrees to buy factory equipment from Metalwork Company on the seller's misrepresentation that it meets certain specifications. Metalwork assigns the right to payment on the deal to National Credit Corporation. When the buyer discovers the fraud, the firm returns the equipment and cancels their contract. Laminate
need not pay any of the contract price to National Credit
Flower Workers Union represents the employees of Garden Variety Inc. The company does not require its new hires to join the union as a prerequisite to obtaining employment. This most likely violates
no federal law
Assembly Corporation operates a plant near the border between the United States and Mexico. Due to the location, it would be easier for the company to employ noncitizens. In this circumstance, it is legal for a U.S. employer to
none of the choices
Steel Mill Inc. and Transport Delivery LLC enter into a contract. UniOil Corporation will indirectly benefit from the deal. Under the principle of privity, UniOil has the right to
none of the choices
Duane and Evan orally agree to a transfer of forty acres of farmland. Evan asks Finance Bank to lend him the funds to buy the land. Under the Statute of Frauds, the agreement between Duane and Evan is enforceable by
none of the choices, it is an oral contract
Steel Mill Inc., employs five hundred workers. For the Occupational Safety and Health Administration, Steel must do all of the following EXCEPT
pay employees higher wages for working in more dangerous areas
Erma enters into a contract to buy a tract of lakefront property from Forest Acres to build and sell a residential development. Forest Acres fails to close the sale. Erma's remedy is most likely
specific performance
Security Company enters into a contract with Tower Apartments to deliver and install an alarm system for a certain price. Both parties perform the acts as promised. The contract is
terminated
The employees of Beverage Bottling Company designate Cola Cappers Union as their bargaining representative. Beverage refuses to bargain with the union. This most likely violates
the National Labor Relations Act
For a price, Rose agrees to unload the catch from fishing boats that dock at Seafood Shipping. Rose delegates this duty to Tina, who then owes performance of the duty to the warehouse. Tina is
the delegatee
Coffee Company, a U.S. firm, owns property in the Dominican Republic. When the Dominican government seizes the property, the company asks a U.S. court to order the property's return. The court rules that the Dominican Republic is exempt from the court's jurisdiction. This is an application of
the doctrine of sovereign immunity
Physicians Clinic orders by phone seven cases of disposable nitrile gloves from Quality Medical Supplies, Inc. After three cases are delivered and accepted, the clinic repudiates the contract. Quality Medical can enforce the contract to
the extent of the three accepted boxes
Business Center signs an agreement with Credit Lending Inc. to borrow $40,000 at 20 percent interest. Later, the state legislature passes a law lowering the maximum permissible rate of interest to 15 percent. The borrower's best argument for avoiding payment to the lender is that
the law has rendered performance of the contract illegal
Comida de Chile S.A., an export company in Chile, and Deli Source Inc., an import firm in the United States, enter into a contract. When Deli breaches the contract, Comida obtains an award of damages in a Chilean court. Comida then asks a U.S. court to enforce the award. The U.S. court defers to and enforces the Chilean court's decree. This is an application of
the principle of comity
Merl buys a tablet for $500, running shoes for $200, and a set of the Game of Crowns books for $100. To be enforceable as a contract, a writing is required for the purchase of
the tablet only
The Family and Medical Leave Act requires certain employers to provide eligible employees with family or medical leave for any of the following reasons EXCEPT
to go on an extended family vacation
Sparkling Jewelers breaches its lease with Town Mall and vacates the premises six months before the end of the term. In some states, the mall would be required to
use reasonable means to find a new tenant
Frank is an employee of Guitar Makers LLC. Guitar's employee manual states that workers, such as Frank, will be dismissed only for good cause. With respect to the employment-at-will doctrine, this is
an exception based on contract theory
Lin is an employee at Manufacturing Plant Inc. Lin is called for jury duty and as a result cannot work her scheduled shift. The plant fires Lin, who subsequently successfully sues her employer for reinstatement. With respect to the employment-at-will doctrine, this is
an exception based on public policy
Emil enters into a contract to buy Foley's cultivated bottomland if County AgriCredit will lend Emil the funds to pay for the land. Emil's duty to perform is
conditional
Mining Company, a U.S. firm, owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is
confiscation
Aircraft Corporation employs mechanics, programmers, outside salespersons, and professionals, including pilots. Employees exempt from the Fair Labor Standards Act's overtime provisions include all of the following EXCEPT
mechanics
For a price, Evan agrees to empty the dumpster behind Fast Food Diner. Evan delegates this duty to Gus, who then owes performance of the duty to the diner. The diner is
the obligee
Rita contracts to work for Social Media Corporation (SMC) during April for $4,500. On March 31, SMC cancels the contract. Rita declines a similar job with Tech Talk, Inc., which would have paid $3,500. Rita files a suit against SMC. As compensatory damages, Rita can recover
$1,000
Baez is employed by Credit Agency Inc. On the termination of Baez's position, Credit Agency pays Baez $10,000 to agree not to disclose the employer's confidential information. Later, Baez sells the information to Debt Records LLC for $100,000. In a suit for breach, Credit Agency is most likely to recover
$10,000 from Baez
Ira owes Jessie $1,000. Kerry owes Ira $1,000. Ira unconditionally assigns to Jessie the right to Kerry's payment. Jessie's right to the $1,000 is subject to the defenses that
Kerry had against Ira
