BLAW Exam 3 Quiz

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

an ad, not an offer

Marketing Inc. offers to create a campaign to increase N'Ice Cream Inc.'s online business. N'Ice agrees to pay for the service. These parties have

an express contract

A contract that calls for an action contrary to public policy is illegal but not unenforceable.

False

A contract that only one of the parties can enforce in a court is not valid.

False

A landlord can avoid liability for injuries that occur on rental property by including an exculpatory clause in the lease.

False

A promise made in return for an act or event that has already taken place is fully enforceable.

False

A promise to do something that one has no prior legal duty to do is not legally sufficient consideration.

False

A promise to refrain from competing in business with another is considered to be unconscionable.

False

A seller who places goods at the disposal of a buyer has tendered delivery but cannot yet demand payment.

False

A statute of limitations limits the amount of damages that the nonbreaching party can obtain for a breach.

False

An offer made in undue excitement is an effective offer.

False

Any breach of contract effectively excuses both parties from performing.

False

Any contract involving consumer goods must be in writing to be enforceable.

False

Because so much e-commerce involves parties in the United States, the preeminence of U.S. law in this area is not likely to be challenged in the future.

False

Because value is variable, mistakes of value affect the enforceability of contracts.

False

Contracts entered into by mentally incompetent persons are not valid under any circumstances.

False

If a contractor's bid was significantly low because he or she made a mistake in adding up the total estimated costs, any contract resulting from the bid is still normally enforceable.

False

If a party is already bound by contract to perform a certain duty, that duty can serve as consideration for a second contract.

False

If one party's performance on a contract is substantial, the other party's duty to perform need only comport with the level of the rendered performance.

False

Most contracts need to be performed to the personal satisfaction of each contracting party.

False

On a delegation of contract duties, the delegator is absolved from any liability for performance under the contract.

False

One of the requirements of a valid contract is an adequate market for the deal's goods or services.

False

Only a mistake of value or quality makes a contract voidable.

False

Only contracts that have been fully executed can be rescinded by agreement.

False

Performance becomes commercially impracticable when a foreseeable, added burden of performing increases the cost slightly.

False

Posting an item for sale on an online auction site is an offer to form a contract.

False

Shrink-wrap terms are enforceable even if a buyer does not discover them until after the parties have entered into a contract.

False

The distinction between "seller's talk" and facts allows sellers to tout their products and services, thereby creating potential liability for fraud.

False

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

False

The measure of compensatory damages does not vary by type of contract.

False

The offeror can revoke the offer only be expressing repudiating it.

False

The offeror's intention to become bound by the offer must be subjectively clear.

False

The primary purpose of the Uniform Electronic Transactions Act is to create new rules for electronic contracts.

False

To apply the doctrine of promissory estoppel in a given situation, there must exist no clear or definite promise.

False

To provide a point at which contracting parties can know that their duties have ended, the duty to perform a contract is always absolute.

False

The lack of a license in certain occupations bars the enforcement of work-related contracts.

True

The party on whom duress is exerted can choose to avoid the entire transaction.

True

Under a construction contract that is conditioned on the builder meeting certain specifications, complete performance is required to avoid material breach.

True

When a lapse of time and a change in circumstances make it substantially more burdensome for the parties to perform, a contract is discharged.

True

A bank's sale of its right to receive payment on a loan to a third party is a transfer but not an assignment.

False

A contract provision that deprives one party of the benefits of the agreement may seem unfair but a court is not likely to consider it unconscionable.

False

Raj agrees to work as a freight broker for Shipping Inc. In determining whether a contract has been formed, an element of prime importance is the parties'

Intent

Restoration Inc. enters into a contract to refurbish an old bus depot for Quality Diners LLC. If Restoration completes most of the work promised in the contract, its performance will be

Subs

A novation requires the contracting parties to make restitution of whatever they received under the contract.

True

Anticipatory repudiation of a contract is treated as a present, material breach in order to give the non-breaching party an opportunity to seek a similar deal elsewhere.

True

Because of the potential for punitive damages, plaintiffs often include a claim for fraudulent misrepresentation in their contract disputes.

True

By supplying procedures for enforcing private agreements, contract law provides an essential condition for the existence of a market economy.

True

Consideration must provide the basis for the bargain struck between contracting parties.

True

Contracting parties are bound only by terms that can be objectively inferred from promises made.

True

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

True

Misrepresentation of law does not ordinarily entitle a party to avoid a contract.

True

Once performance has been tendered, the party making the tender has done everything possible to carry out the terms of the contract.

True

Sometimes, when a buyer breaches a contract for a sale of goods and the seller has not yet produced the goods, the seller can recover the lost profits.

True

Red offers to pay Sari to deliver certain documents within thirty minutes. Sari can accept the offer only by completing the task within the deadline. If she does, Red and Sari will have

a unilateral contract

Hometown Bank posts on its website an offer of a reward for information leading to the apprehension of a certain criminal. This offer could normally be terminated by

any of the choices

Shep offers to make digital copies of Reliable Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Reliable's acceptance by e-mail will be considered effective when

sent

Ocean Inc., a seafood distributor, agrees to buy from Pai, a commercial fisher, any "overstock" of fish that he catches in excess of the legal limit. This agreement is most likely

void