Business Law Exam 3; Prof Carr

What kind of contract is formed when each party makes a promise in return for the other's promise? A. Unilateral B. Quasi C. Bilateral D. Contract by acceptance E. Implied contract

C

To create an enforceable contract, which of the following is needed? A. Offer and acceptance B. Offer and consideration C. Offer, acceptance, consideration, and the applicability of the promissory estoppel doctrine D. Offer, acceptance and consideration

D

In class to tie together some of the contracts material we studied we watched a 60 minutes highlighting a contract dispute and a marketing company T/F

F

In class we watched a 60 minutes video highlighting the use of confidential protective orders and confidential settlement agreements in the criminal and civil cases charging Kobe Bryant T/F

F

The article about several prominent donors who reneged on a promise to give sums of money to the cal poly college of agricultural and college of business T/F

F

Bait and switch advertising refers to the practice of advertising goods at a very low price on very favorable terms, with no intention to sell them as advertised T/F

T

Ernie Prestwick is a wholesale dealer of "Elvis on Black Velvet" (EOVB) portraits (a good for the purposes of the UCC). Wanda King owns a shop at which she sells memorabilia associated with the late Elvis Presley. All of the events about to be described happened in 2009. Prestwick wrote, signed, and mailed to King a July 1 letter in which he offered to sell King 5 EOVB portraits for the special price of $799 per portrait. (normally at $999) a piece). Prestwick's letter stated that "this incredible offer will remain open until July 15." King received the letter on July 2. On July 7, not having heard anything from King, Prestwick revoked his offer. On July 11, King arrived at Prestwicks office and presented him with an acceptance of his offer made July 1. Prestwick denied they had a valid contract and refused to take the check. King sued Prestwick for breach of contract. Which party should win the lawsuit and why? a. King, because Prestwick made a firm offer which she accepted within the offer's duration b. Prestwick, because he received no consideration in return for the specific promise to hold his offer open c. King, because of the operation of the assumption of risk doctrine d. Prestwick, because he revoked his offer prior to any attempt by King to accept it

a

Frank is a loyal employee who has spent much time going above and beyond the call of duty promoting his employer's company on weekends. Frank's boss says to him, "Because of all this good work you have done in the past, you'll get a $1000 bonus next month." Because of this statement: a. The company is not obligated to pay him the bonus because the consideration is past consideration b. The company is not obligated to pay him the bonus because of the illusory promise rule c. The company is obligated to pay him the bonus because Frank has performed extra work d. The company is obligated to pay him the bonus because it was an implied contract

a

Fred's beautiful photograph of the Washington Monument is hanging in a Washington Gallery. Jed is looking at it and Fred tells Jed he can have it for $1000. Jed says, "No way man! I won't pay that!" The next day, Jed reconsiders and goes to the gallery and tells Fred he'll take it for $1,000. Which is true at this point? a. Fred can tell Jed that the new price is $1,200 b. Jed can't force Fred to take the $1000 because of the prior day's revocation of the offer by Fred c. If they can't agree, a court would set the price at $1,100 d. Jed's acceptance of the $1000 offer is effective only if Fred has not yet revoked his offer

a

Jacques Strappe owns a new sporting goods store. To announce the grand opening of his business, Strappe placed an advertisement in the local newspaper. The ad quoted prices on various items, including a Timewaster brand exercise bicycle. He was unable to satisfy all the customer demand for certain items. After Strappe had sold all of the Timewaster exercise bicycles he had in stock, customer Earl Portly demanded that he be sold a Timewaster exercise bicycle at the advertised price. When Strappe did not comply, Portly sued him (in small claims court) for breach of contract. How should the court rule? a. That no contract was formed because Strappe did not accept Portly's offer b. That Strappe's advertisement was an offer, but only if Portly actually read the c. advertisement before coming to the store d. That Strappe is liable for breach of contract formed when Portly demanded an exercise bicycle at the advertised price e. That Strappe's having run out of Timewaster's amounted to a revocation of his offer

a

Jill asks Jack to give her an estimate on the price of building a fence around her orchard. Jack inspects and measures Jill's apple orchard and gives Jill an estimate of $1000. Jill agrees to the price and they sign a contract. Jill, however, had in mind a fence around her peach orchard that is much larger that Jack made the estimate for. Jack says he cannot build a fence around the peach orchard for anywhere near $1000, but Jill wants to hold jack to his original estimate for the fence. Which of the following statements best describes this situation? a. This is a case of mutual mistake b. This is a case of unilateral mistake c. This is a case of innocent misrepresentation d. This is a case of fraud e. None of the above

a

Jones is driving his tractor alongside the road when a semi-truck strikes it. Jones is seriously injured but remains alert and conscious. The truck driver continues on. Shortly thereafter, Sybil, a medical doctor, happens along, sees the situation, and renders medical attention that saves Jones' life (and which Jones gratefully accepts). Jones is taken to the hospital. Jones pulls through, but several days later he receives a bill in the mail from Sybil. Jones refuses to pay Sybil and Sybil sues him. The most likely results will be: b. Jones wins; there was no contract between Sybil and him, so he owes her nothing. She was just being a good neighbor c. Sybil wins; by accepting her services Jones successfully invoked the Statute of Frauds d. Jones wins; before the doctrine of quasi-contract can apply, the recipient of the benefit must have been given the right to sign a written document that verifies that he/she agreed to accept the provided service

a

On Thursday, Graham made Bell an offer in which she stated that "if you choose to accept, you must communicate that decision solely by means of a telephone call to me at my office prior to 2pm tomorrow." Bell, never one to rely on the telephone as a means of communicating important information, had a telegram of acceptance dispatched to graham before 2pm on Friday. The telegram was delivered to Graham's office at 2:15pm on Friday. Do Graham and Bell have a contract? a. No, because Bell's supposed acceptance was in an improper form b. Yes, because Bell dispatched the telegram prior to 2pm c. No, because Bell's use of a telegram amounted to a revocation of Graham's offer d. Yes, because Bell's communication of acceptance substantially complied with the terms of the offer

a

On august 1, 2007 Ariel Oldbag made a written offer to sell Marginal State University her palatial estate, Oldbag manor, for $500,000. On the same date, Oldbag also extended MSU a written option to buy the property at the offered price until July 1, 2008. MSU paid oldbag 4,000(the amount specified by her) for the option. Which of the following is an accurate statement? a. MSU has no legal obligation to purchase the property from oldbag b. Oldbag may revoke her offer to sell the property at any time before MSU accepts so long as she refunds the $4000. c. If MSU decides not to purchase Oldbag manor, Oldbag will have a valid breach of contract claim against MSU d. If Oldbag notifies MSU in writing on Dec. 1 that she does not want to sell, she will be acting in a manner consistent with the mutuality of obligation reasonably contemplated by the option

a

On monday, Cindy says to Ruth, "I will sell you my car for $10,000. You have until Friday to decide." As of Wednesday, Ruth has paid nothing to Cindy and has not yet indicated if she is interested in buying the car. At this point, which is true? a. Cindy can revoke the offer on wednesday b. Ruth must reject Cindy's offer by Friday, or else she has bought the car c. Cindy cannot revoke the offer on Wednesday d. Ruth could send $250 to Cindy on Friday which would automatically make the offer irrevocable for one month

a

State college mailed a letter to Parkins, a former CIA director, offering Parkins the chance to deliver the 2009 Summer Commencement address a the college for $5,000. The topic of the address was to be "The Cuban Threat to American Security." In March 2009, Parkins is arrested by the FBI and charged with spying for Cuba. College's President immediately telephoned Parkins and revokes its offer. Parkins says, "Just a few minutes ago I sent you a properly postmarked and addressed letter accepting your offer. I need money for legal fees." Under these circumstances, which of the following statements is correct? a. Under traditional contract principles, Parkins has effectively accepted the offer b. Under traditional contract principles, Parkins has not effectively accepted the offer c. Under the UCC, Parkins has effectively accepted the offer d. State college cannot revoke its offer due to Parkin's arrest

a

The following statements pertain in some way to the consideration element of a contract. Which statement(s) is/are legally accurate? a. If Dorkman promises Technonerd that "I'll pay you $75 if you install the latest version of the Nerdperfect word-processing program on my computer," and if Technonerd says that he'll do it whenever he feels like it there is no consideration b. The UCC establishes that a modification of a contract for the sale of goods is not enforceable unless the modification is supported by NEW consideration that is seperate from the consideration which supported the original version of the contract c. Although consideration can consist of a particular action, it cannot consist of not doing something you are legally allowed to do. d. Each of the above is legally accurate

a

Thelma Jean sent Johnny Bob a letter stating that, "I have a good-running Ford Half-ton pickup, which I will sell to you for $1500 in cold cash. If I aint heard from you before Sunday, Ill assume that you want my pickup and that you'll pay me bright and early Monday." Johnny Bob received the letter but did not answer it. He refuses to pay Thelma Jean anything and would not accept delivery of the truck when she attempted to deliver it on Monday. Which of the following is an accurate statement? a. Thelma Jean and Johnny Bob do not have a contract b. On these facts, promissory estoppel would enable and Thelma Jean to a lawsuit against Johnny Bob c. Thelma Jean's letter was not an offer d. Silence never constitutes as an acceptance

a

Two friends, Ann (33 years old) and Mary (35 years old), are having margaritas at happy hour. There had been no discussion of who would pay for drinks. After the third round of drinks, Ann said, "I will pay for everything tonight including your drinks." Thirty seconds later, Ann says, "I've changed my mind. I just remembered they might be having layoffs at my job tomorrow." Mary wants to force Ann to perform on her promise and threatens to sue. In this circumstance a court would: a. Not require Ann to follow through on the promise because it was a gratuitous promise (a gift) b. Require Ann to follow through on her promise under the doctrine of promissory estoppel c. Require Ann to follow up on her promise if Mary had previously paid a comparable amount for food and drinks consumed by Ann d. Require Ann to follow through on the promise if it would be a hardship for Mary to pay for her own drinks e. Not require Ann to follow thought on the promise because it would encourage Mary to drink

a

Which of the following contracts is NOT required to be in writing under the Statute of Frauds a. Contract to performed in less that a year b. A contract made in a consideration of a promise to marry (prenup) c. A contract involving the sale of land d. A contract for the sale of goods valued at $500 or more e. A contract to pay someone else's debt if they fail to

a

You take a computer disk to a computer rental shop to be duplicated. Part of the written agreement you sign says, "if we destroy your disk as a result of our own ordinary negligence, we will replace the disk but will not be responsible for the value of any lost data on the disk." Under these facts this boilerplate revision is probably: a. Impermissible exculpatory clause b. Permissible and enforceable contract provision c. Unenforceable penalty provision d. Illegal and void as being against public policy

a

An exculpatory clause releasing a white-water rafting company from liability and all injuries it causes is: a. Always valid b. Usually valid for ordinary negligence, but not intentional torts c. An illusory promise d. All of the above

b

Ann adult (an adult) has entered into a contract with Milt Minor (a minor) under this contract, adult is to sell stereo system to minor. Which of the following statements is accurate: a. Minor cannot effectively disaffirm/cancel the contract until he reached the age of maturity b. The contract can be canceled by a minor c.Minor cannot effectively ratify the contract once he reaches the age of maturity d. Adult may cancel the contract if she so chooses

b

Boozer placed the following classified ad in the newspaper "2001 chevy impaler. Runs super, ain't taking nothing less than $1250 for this cream puff. Call otis at 123-4567, or stop by lot 17 at trixies trailer park to see the car" Larry Lagard who did not know Boozer, responded to the ad by stopping by the trailer park to see the car. After examining the car. Lagard offered Boozer $700 for it. Boozer, who was intoxicated, took the offer. Lagard immediately gave him the money and the car was signed over. When Boozer found out what he had done he tried to disaffirm the contract. Lagard refuses to give back the car. Assuming that the car had reasonable value at $1300, is boozer entitled to disaffirm? a. Yes if boozer can show that he is an alcoholic b. No if lagard neither knew nor had a reason to know of boozers intoxication c. Yes regardless of whether lagard knew if boozer was drunk d. No even if lagard knew boozer was drunk and that d therefore couldn't understand what he was obligating himself to

b

In an auction where the highest bid has been made and no higher bids are forthcoming, the highest bid is treated as an acceptance in: a. Auctions with reserve, but not in auctions without reserve b. Auctions without reserve, but not in auctions with reserve c. In both of these kinds of auctions d. In neither of these kinds of auctions

b

In class and in UR one of the examples of offers was the example of a man who saw a 1995 Jaguar for $25,950 in the newspaper ad. He went to the dealership but the dealer wouldn't accept less than $37000 so he sued the dealer. What was the outcome of the case? a. The parties took/appealed the case all the way to Supreme Court and the buyer won b. The parties took/appealed the case all the way to the CA supreme court and the buyer won c. The parties took/appealed the case all the way to the CA supreme court but the buyer lost d. The buyer was able to use the basic rules of contract law to continue to "bargain in the shadow of the law" with the dealership and get the jag for less than the ad price

b

John is president and sole shareholder of Photo, Inc. (a corporation). Photo, Inc. wishes to borrow money, but to do so, the bank requires John to orally guarantee to repay the loan in his individual capacity if Photo, Inc. cannot. John's guarantee to repay is: a. Enforceable, because in general, guaranty contracts do not need to be in writing b. Unenforceable, because guaranty contracts need to be in writing c. Enforceable, because the main purpose of the loan and the guarantee was to benefit John, his wife and children d. Unenforceable, because John is the sole shareholder of Photo, Inc.

b

Juan owns a house in a poor area of a large city. A salesman visits his home, selling aluminum siding. Juan buys and signs a contract, which calls for a price of $25000 to be paid in monthly installments of $500 for 20 years. Juan only earns $700 a month. In addition, Juan's home is only worth about $35000. The aluminum siding put on is with no more than $1500. Juan speaks and reads very little English and Juan thought he was signing a receipt for a free gift. Which of the following best describes this contract? a. This contract is fully enforceable as written b. The contract is unenforceable because it is unconscionable c. The contract is unenforceable because it is illusory d. The contract is unenforceable because it is exculpatory e. None of the above

b

Kyle sent Tara a letter offering to sell Tara his car. Tara left the letter on her desk where her roommate maggie saw it. Maggie read the letter and said that she wanted to take the offer. Which of the following is accurate? a. Kyle is bound to sell his car to maggie b. There is no contract between kyle and maggie because he did not communicate his offer to her c. Kyle and tara have a contract for the purchase of his car d. Maggie's letter is a valid acceptance of kyles offer e. Both A and D

b

Robert is a charismatic pastor at United Health Church. One of the members off his congregation, Mrs. Smith, is a very devout believer. Robert convinces Mrs. Smith to sell him her farm for $4000. The actual value of the farm was $500,000. Mrs. Smith dies and her estate sues to get the farm back. Which of the following statements best describes this situation? a. This is a case of fraud, so the estate can rescind the contract b. This is a case of undue influence, so the estate can rescind the contract c. Unless Robert can prove duress, the contract cannot be rescinded d. Mrs. Smith is a competent adult that may dispose of her property in any way, and for any price she sees fit e. None of the above

b

Sally owns a very expensive fur coat which Mary would like to buy. During the course of their conversation, Mary asks how much Sally would take for the coat. Sally replies, "I am not sure I want to sell the coat, but I think it's worth about $3,000." Mary says, "That is a little more than I wanted to spend." One day later, Mary calls Sally on the telephone and says, "I'll bring over the $3,000 today." Sally refuses to sell the coat, and Mary sues. What will be the result? a. Mary wins; a valid contract was created b. Sally wins; there was never any offer for Mary to respect c. Sally wins; when Mary said $3000 was too much to pay, Mary rejected the offer d. Sally wins; Mary did not accept the offer in a reasonable manner e. Sally wins; Sally's offer expired due to the passing of a reasonable amount of time

b

Silence will operate as an acceptance in the following circumstances EXCEPT: a. The offeree indicates that silence will operate as acceptance b. The offeror indicates that silence will operate as acceptance c. Prior dealings between the parties indicate that silence is an acceptance d. The offeree signed an agreement that future shipments would be accepted until further notification

b

Usury laws are concerned with: a. Taxes paid b. Interest charged c. Uses of the labor force d. Contract purposes

b

When is the exculpatory clause valid and enforceable? a. When it attempts to exclude gross negligence b. When it attempts to exclude ordinary negligence c. When the parties have unequal bargaining power d. When it is not clearly written or readily visible e. All of the above

b

Which of the following was an example discussed in class lecture of the contract defense of duress a. Single pregnant woman who was taken by the Methodist Mission Home of Texas, supported by that mission and was unduly influenced by the counselors at the mission to give up her baby for adoption b. A female investment banker whose car broke down in nevada and who argued she was overcharged for the tow

b

You are 22 years old. On your first spring break trip, you go in a bar after reading a large sign outside saying: "Beers $1.00 each all night long. If you can drink 30, they're all free and we'll pay for a taxi." You pay for your beers as you drink, but manage to drink 30. (by the way, by the third beer, you become intoxicated enough to be arrested and criminally prosecuted for public drunkeness.) The bar agrees that you drank 30 beers, but refuses to refund your money or pay for the taxi. You sue the bar. Which is most likely true? a. This contract is voidable by the bar if you get so intoxicated while drinking the 30 beers that you don't comprehend the nature of what you are doing b. The sign is an offer for a bilateral contract since both you and the bar must do something c. A court would refuse to enforce this contract on the basis of illegality d. There is no consideration on your part if you do not pay for the beer

b

You go to the cosmic Runners Supply Store in Asheville. The sales-person shows you some shoes and says, "In a race, these shoes pick up the cosmic energy from the runners around you and channel it into your own legs. This causes everyone with these shoes to run twice as fast as in normal shoes." In your race, you do only slightly better than usual and sue the store for fraud. a. You would lose because the sales person's statement was not of factual nature b. You would lose because your reliance on the sales person's statement was not justified c. You would win if most runners do not go twice as fast in the cosmic shoe d. Proving only that the salesperson intended to deceive you is enough to win your fraud case e. None of the above

b

A minor, unable to live at home for safety reasons (parents fighting made it unsafe), contracts to rent an apartment for 3 months at $600 per month. After living there for 3 months, he cancels the contract. The reasonable value of that apartment was only $500. Assuming no rent has been paid, the minor must pay a. Nothing; contract was canceled b. $1800; the rate for 3 months c. $1500; reasonable value for 3 months d. $7200; contract rate for a year e. $6000; reasonable rate for a year

c

Andrea is a real estate agent; however, she does not have a license as required by statute. Andrea sells a piece of property for George, but George refuses to pay her the agreed sales commission. Andrea sues George, what is the result? a. If the licensing statute is primarily a regulatory statute (designed to protect the public) Andrea cannot collect her commission b. If the licensing statute is primarily a revenue statute, andrea cannot collect her commission c. No matter what kind of statute, Andrea cannot collect her commission d. No matter what kind of statute, Andrea can collect her commission e. None of the above

c

Corpco, Inc made Tod Technonerd an offer for a 3 month position as a computer technician. The corpco official who gave him the offer said, "let us know as soon as you can but no later than Sept. 15." After considering the offer Technonerd telephoned the corpco with a counteroffer on Sept 10. The corpco official said that he would think over the offer. Later on the 10th, technonerd had second thoughts about his counteroffer and telephoned the corpco official that same day and said that he was delighted to accept the original offer that was presented on the 8th. The corpco official responded by telling him that the corpco did not intend to employ him. Technonerd filed a breach of contract case against the corpco. Should he win the case? a. Yes because technonerd communicated an acceptance to Corpco to the sept 15 mentioned by the corpco official b. Yes because corpco showed a lack of respect and consideration for technonerd when it refused to employ him after giving him a full offer of employment c. No because Technonerd's first sept 10 phone call to the corpco office had the effect of terminating corpco's offer d. No even though corpco's refusal to employ him constituted as fraud e. Two of the above are correct

c

Dewey Cheatam Used Cars, Inc mailed Lorraine Lemon a letter offering her the job of sales manager for a minimum term of one year. Cheatam's letter, dated August 11, 2007, informed Lemon that "if you decide to accept, you must accept by August 18, 2007 because my offer expires on that date." Cheatam's properly addressed letter was mailed, with sufficient postage, on August 11, but because of a postal worker's error, it did not reach Lemon until August 21, 2007. Lemon contacted Cheatam on the same day (August 21) and stated that she wished to accept the offer. Which of the following contains the best legal analysis of the facts? a. Lemon made a timely acceptance of Cheatam's offer, because the time for acceptance is customarily measured from the date the offeree received the offer b. Lemon and Cheatam have a contract because Cheatam failed to revoke his offer prior to Lemon's acceptance c. Lemon has made her own offer that Cheatam is free to accept or reject d. Lemon made a prompt and proper acceptance of Cheatam's offer, because it was not her fault that Cheatam's letter took so long to arrive

c

Erin receives an offer in the mail from Susan on July 14th that says, "I will sell you my vacation home for $80,000. You may accept this offer by signing the bottom of this letter and placing it in the mail so that it is postmarked by July 31st." Which is true? a. Susan will be liable for punitive damages if she sells that home to anyone else prior to the 31st b. If erin accepts the offer on July 20th by meeting the terms of the offer, Erin can change her mind up until July 31st so long as Susan is notified by that date c. Assuming Erin has not paid Susan for (or to create) an option contract, Susan may revoke the offer at any time so long as she does so before Erin accepts and Susan notifies Erin of that revocation d. If Erin counteroffers with a lower price and Susan rejects, Erin can still create a contract by accepting the original offer by the 31st

c

Gerald was a subcontractor, bidding on a contract for XYZ corp., the general contractor. When adding up the total materials and labor, Gerald's secretary made a clerical error with a total of $45,000 instead of $450,000. Gerald then submitted this bid in for $45,000. XYZ accepted Gerald's bid, primarily because it was the smallest. When Gerald learns of this mistake, he tells XYZ that he cannot perform the contract. If XYZ sues to enforce this contract, what is the most likely result? a. This contact is fully enforceable since there was a valid offer and acceptance b. This is a bilateral mistake, so either party can rescind the party c. This is a case of unilateral mistake, which means that the contract can be rescinded by the mistaking party d. This is a case of economic duress and Gerald will be allowed to rescind the contract e. None of the above

c

Harry (25 years old) goes into a brewpub and asks the waitperson, "could I have a Possum tail Ale, please?" The waitperson brings the beer and Harry in a similar fashion asks for several more, one at a time. As Harry is leaving, the waitperson says, "Wait a minute, you forgot to pay." Harry responds, "I just learned the most important thing in my bus law class today. Contracts are based on promises, agreements, and a meeting of the minds, and I never promised to pay or agreed to pay for the beer. As far as I knew, you were just being nice to me and bringing me all those beers when i asked for them." Which is true? a. Harry need not pay because there was no agreement b. Harry need not pay because there was no promise c. Harry must pay because there is an implied contract d. Harry must pay because of the doctrine of unconscionability

c

If a judge rules that a party has lost its case because of the Statute of Frauds, the judge has essentially stated that: a. The losing party purposely deceived that other party about the material fact b. The losing party will not be allowed to introduce evidence to contradict a written agreement c. The losing party cannot enforce an oral contract that should have been in writing d. The losing party was found by the court to have lied and therefore lose the case e. The winning party has proven criminally fraudulent conduct on the part of the losing party

c

Jean had just received a promotion and substantial raise. Jean felt her raise would make her have much more spending money, thus she planned to buy a new sports car. Jean felt she did not need to worry about receiving the best price for her old car which she thought was worth about $3000. She sold the car for $1500. In fact the car was worth $5000, and Jean had not taken into account the additional taxes on her extra income. Jean also decided that a sports car would not be very practical. Jean wanted to return the $1500 to the purchaser and get back her car. Assuming that Jean will return the $1500 to the buyer, Jean can: a. Get her car back if the buyer knew that Jean should not have planned to get a sports car b. Get her car back if Jean can prove that the buyer knew the car was worth several times what he paid for it c. Not get her car back because the court under these facts would not inquire into the difference in the value of the consideration exchanged in this case d. Get the car back based solely in the disparity in the price and value e. Not get the car back if the buyer had relied on getting a bargain price, but if the buyer could not prove that, Jean could get the car back

c

Karen offered to pay Kim $25 if Kim would cut Karen's grass. Kim got her lawn mower and started to mow the lawn. After Kim was about 80% completed, Karen came out and told kim that she had changed her mind, did not want the lawn mowed, and would not pay Kim. Kim finished the job and sues Karen for the $25. What would be the probable result? a. Kim wins; this is a bilateral contract, which Kim accepted by promising to mow the lawn; Karen is bound by it b. Karen wins; this is a unilateral contract, which Karen can revoke at any time prior to the completion of the act c. Kim wins; This is a unilateral contract and Karen cannot revoke her offer for a reasonable period of time once Kim has made a substantial beginning to complete her performance d. Karen wins; this is an offer for a bilateral contract and because Kim never promised to mow the lawn, there is no contract

c

Susan offered to sell her couch to Martin for $200. Martin said "no way ...$200 is too much and I won't pay that," and then 3 minutes later he said he "would give her $125 for it." Susan said no. Then, Martin said that he would pay Susan the entire $200. Which of the following is true? a. Martin has accepted Susan's original offer b. Martin's second statement that he would give Susan $125 was a rejection of Susan's original offer c. Martin's statement that he would give Susan $125 was an offer to Susan by Martin. d. A and B only e. B and C only

c

The "mailbox rule" means that: a. Offers and acceptances must be communicated through the mail in order to be effective b. Offers and acceptances are effective when placed in the mail c. A properly dispatched acceptance is legally effective even if the offeror never receives it d. A revocation is effective when sent by the offeror

c

Tuesday owned a vacant commercial building in downtown Honky Tonk, Alaska. On March 1, 2008, she promised her friend, Flash, that on August 1, 2008, she would give Flash legal ownership of the building. Flash did not have to do anything in return. Flash wanted the building and would use it to live out his dream of operating a retail business selling albums, tapes and CDs. Flash went out making preparations and spent almost $3000 for his new business. By the time August 1, 2008 came, Tuesday refused to give him the building. Flash then sued her to recover the amounts referred to above. The following statements purport the "best" legal theory for Flash to use in his suit. Which statement is accurate? a. Quasi contract b. Breach of contract c. Promissory Estoppel d. Parties had a bilateral contract and Tuesday refused to live up to her side of the promise

c

Which behavior is consistent with virtue ethics a. Recognizing that in the US it is considered a 'no-no' by most people to bribe a government official to further your business interests but in Cambodia or china it may be acceptable so.. b. In a 100 person firm that you own, laying off 49 so that the remaining 51 can survive work and feed their families c. Staying late at work with no pay to help a customer d. Christian priest forgiving a woman that murdered her business partner in cold blood

c

Advertising agency owner Les Dupem mailed a 2009 Average State University grad Dee Ceptive a letter containing a detailed offer to employ her as an accountant executive for a minimum of two years. Besides setting forth all of the terms of his offer, Dupem's letter dated june 13 and received by Ceptive on June 16, stated that your acceptance will be effective when Dupem receives it. Ceptive sent their acceptance but on June 18 Dupem called Ceptive and told her that the offer contained in his june 13 was revoked. Dupem received Ceptive's letter of acceptance on June 19, but refused to employ her. Ceptive sued Dupem for breach of contract. Ceptive should: a. Win the case on the basis of quasi contract principles b. Lose the case because Dupem did not expressively authorize her to respond by mail c. Win the case because mailing of an acceptance letter terminated Dupem's power to revoke his offer d. Lose the case because Dupem properly and timely revoked his offer

d

At age 16, Phil bought a car from Acme Auto Co. for $2500. In buying the car Phil told Acme his true age (16). Phil drove the car for about 6 months, and then he had an accident. The damage to the auto was $1500. In addition, the value of the auto before the accident was only $2000. The accident was not Phils fault. Further, under these facts the car is not considered a "necessity" Phil wishes to disaffirm/cancel the contract. According to the study outline in your UR reader book which of the following best describes this situation in the majority of states? a. Since the car was damaged, Phil cannot disaffirm the contract b. Phil can disaffirm the contract, but he can only recover $500 of his money c. Phil can disaffirm the contract, but he can only recover $2000 of his money d. Phil can disaffirm the contract, and recover the entire $2500 e. Phil can disaffirm the contract, but he must first have the car repaired

d

Frieda is at an Oakland Raiders football game being bothered by several extremely drunk spectators in nearby seats. She asks a security officer to do something, but the security officer then refuses. She then offers the security officer $100 if he'll stop the problems. He agrees, then warns the drunk spectators, after which problems stop. Frieda refuses to pay the security officer the $100. Is there sufficient consideration in this agreement? a. Yes, because the detriment of paying $100 was bargained for b. Yes, because there was one party who suffered a detriment c. No, because this agreement violates public policy d. No, because of the pre-existing duty rule e. Yes, so long as $100 is a fair price for the services of the security officer

d

In March 2008, while he was a junior running back at the University of Iowa, Ronnie Harmon signed a contract with sports agent Norby Walters. Pursuant to the contract, Harmon received cash, airline tickets, and a car from Walters. These items totaled $60,000 in value. Assume that the contract violated the NCAA regulations and applicable law, and that Harmon and Walters knew this. Harmon, the top draft pick of the Buffalo Bills in 2009, later refused to employ Walters as his agent. Walters sued Harmon to collect the $60,000 Harmon received from him. How should the court rule. a. That despite the contracts illegality, Harmon must repay Walters under a promissory Estoppel theory b. That the contract was legal because it was of a revenue-raising nature, and that Harmon must therefore repay Walters c. That Harmon must repay Walters because it would not be unconscionable to let Harmon walk away with over $60,000 d. That in view of the contracts' illegality, neither Walters nor Harmon should receive a remedy

d

Looking for every opportunity to improve his team's sagging fortunes, New Orleans Faints head coach and general manager, Mike Zitka, sent former All-Pro offensive tackle Les Holden (who last played pro in 2007) a letter offering him a no-cut $1 million contract if he came out of retirement to play. This letter dated July 9, 2009, stated he had till July 23 to decide and that his acceptance must be by mail. Holden came back with a counter offer of $1.5 million on July 14, 2009, but then reconsidered. Holden mailed Zitka another letter accepting the Faint's first offer on the 15th and his initial letter never got delivered because it was lost in the mail. On the 17th Zitka received the acceptance. July 16th Zitka mailed Holden a note that they had too many players and for him to not show up to camp and Holden received this on July 20. Holden believes him and the Faints have a contract. Do they? a. Yes, because Zitka received Holden's acceptance after he mailed b. Holden his own revocation c. No, because Holden's counteroffer never arrived d. No, because Holden's counteroffer was effective on dispatch and thus operated to terminate the Faint's offer e. Yes, because Holden's acceptance letter was effective on dispatch None of the above

d

Martha was selling some land she owned in Florida to Mary. Martha told Mary that there was a golf course and swimming pool in the subdivision as a part of the development, an that there were improvements that would be made soon. Martha knew that none of these improvements existed and none were planned. Mary believed Martha and bought the land for $100,000 when it was really only worth $20,000. Mary learns of the error and sues Martha for fraud. Which of the following situations best describes the situation a. Mary cannot recover since the misrepresentation was not of material fact b. Mary cannot recover because she cannot prove damages c. Mary can cancel the contract since this is an innocent misrepresentation, but Mary cannot collect damages d. Mary can cancel the contract since this is fraud or recover tort damages since this is a fraud e. Either party can cancel the contract since this is a case of mutual mistake

d

Rose offered to sell a necklace to Mary for $1000. This was a fair price but Rose really did not want to sell; she just wanted to humiliate Mary by making Mary admit that Mary could not afford it. However, Mary accepted the offer, and attempted to give Rose the $1000 in cash. Rose refused to accept the money or convey the necklace to Mary. Rose says she was just joking. Which of the following is true? a. If a reasonable person would have thought that Rose was making a legitimate offer, then this contract is enforceable b. If a reasonable person would have thought that Rose was joking, then there is no contract c. If Rose was really joking, then there is no contract regardless of what a reasonable person would have thought. d. Two of the above are correct e. A, B, and C are all correct

d

Sandy notices a dog tied to a chain behind a fence and recognizes it as belonging to an acquaintance who lives a couple of blocks away. Sandy goes to the acquaintance who lives a couple of blocks away. Sandy goes to the acquaintance's house and says, "Your dog is tied up in someone's yard, and for $100 I will tell you where." The dog's owner says, "No way! I cant believe you wont simply tell me where the dog is!" The dog's owner drives around the neighborhood and finds the dog and retrieves it. The next day Sandy notices an advertisement in the paper where the owner offered a reward of $200 for information leading to the return of her dog. Sandy is: a. Entitled to $100 because she made a counteroffer to the $200 reward offer, thereby lowering the amount she can claim. b. Entitled to $200 solely because she gave the dog's owner information leading to the return of the dog c. Entitled to the $200 because the owner of the dog offered to pay reward money and the reward offer was outstanding d. Not entitled to any money because she was unaware of the original offer for a reward and the dog's owner did not accept Sandy's own offer e. Not entitled to any money because there was no offer

d

Scarborough Fair Restaurant owner Parsley Sage wrote noted restaurant critic Rosemary Thyme and stated that he would pay Thyme $4500 per day to come to his restaurant on monday Aug 4 through Aug 9 and tell them what they're doing right and wrong. She receives the letter July 30. She decided she would go to the restaurant and provide the advice referred to in the letter. On July 31 sage called thyme and said he wanted to revoke the offer. Thyme told sage that she intended to follow through on his offer but sage was unrelenting. Thyme showed up Aug 4 but sage told her to leave. After sage repeatedly ignored her she filed for breach of contract. Which of the following statements are accurate? a. Thyme should win because sage's july 31 attempt was too late to be legally effective b. Thyme should win the case because she properly accepted sage's offer c. Sage should win because his rudeness violated the laws consideration requirement d. Sage should win because he revoked his offer prior to any acceptance

d

To meet the contractual requirement, consideration exchanged between the parties to a contract must be: a. Fair and reasonable according to the reasonable person standard b. Approximately equal in overall monetary value c. Such that each party receives a benefit d. Bargained-for and have legal value e. Recorded in writing in the contract

d

Which of the following statements pertain in some sense to the consideration element of a contract. Which is legally accurate? a. If renior promises picasso that he will pay him 300 if he paints his living room and if picasso responds he'll do it as soon as possible there is consideration to support renior's promise b. If garth promises wayne $999 because "as far as friends go, youre out of this world, wayne" the fact that garth holds the opinion about wayne constitutes garth's promise c. If a lady madonna church member eleanor rigby fails to live up to her 2008 promise to donate 10k to the church, the fact that there was no consideration to support Rigby's promise will automatically prevent the church from having legal claim against her for collections of all or any portion of the unpaid debt. d. None of the above

d

Barb bought a 1999 Plymouth Valiant with 24000 miles (the correct mileage) on it from Jolly John's Gently-Used Car Sales. John told Barb that this car was used by a little old lady who only used it to go to church on Sundays. A couple of months later, Barb learns jthat the little old lady's Sunday trips were to bingo night not church and the John knew this all along. The distance from the old lady's house to church and bingo are approximately the same. Based on this information, Barb can probably: a. Get out of the contract on the basis of fraud b. Get out of the contract on the basis of undue influence c. Get out of the contract on the basis of d. Get out of the contract on the basis of duress e. Not get out of the contract based on any of these reasons

e

During one of our class sessions, we looked at the "fight club" case study and a contractual exculpatory clause that a bar/nightclub attempted to use as a defense to the plaintiffs claim in that case. According to the class lecture, what was the result of that case? a. The plaintiff fighter sued the bar and the jury came back with a verdict in favor of the defendant bar b. The plaintiff fighter sued the bar but the jury only awarded the plaintiff $30,000 c. The ref sued the bar but the jury only awarded the plaintiff $30,000 d. The ref who ref'd the fight sued the bar for failing to pay his fee and the ref won but was unable to recover e. None of the above

e

In order to satisfy the Statute of Frauds sufficiency of a writing requirement, generally a writing must: a. Be a formal written document b. Be any written memorandum containing the essential terms of the parties' agreement c. Be signed by the party against whom enforcement of the contract is against d. A and C e. B and C

e

Lisa has been a dentist in San Francisco for several years. She is now ready to retire and she sells her practice to Angie. As part of the sales agreement, Lisa agrees not to practice dentistry within 200 miles of San Francisco for a period of 15 years. After 4 years, Lisa is bored so she opens up a dental practice in her home in Oakland. This practice is very small and Lisa wants to keep it that way. Angie sues on the non-compete agreement. What is most likely to occur? a. This agreement is fully enforceable b. This agreement is not enforceable since agreements in restraint of trade are never enforceable c. This agreement is not enforceable because it is unreasonable as to area d. This agreement is not enforceable because it is unreasonable as to time e. C and D

e

Which of the following can be considered legally valid consideration under contract law? a. A promise to perform a service at/on a specific date and time b. Payment of cash c. Actual performance of service d. B and C only e. A, B, and C

e