COMBO BLAW 2 ALL STUDY THE TRUE ONES

What type of example represents a unilateral offer?

"I will pay you $50 if you mow my lawn."

Which of the following represents a unilateral offer? A. "I will pay you $50 if you mow my lawn." B. "I will pay you $50 if you promise to trim that tree." C. "I will pay you $50 for your CD player." D. "I will pay you $50 for your backpack."

"I will pay you $50 if you mow my lawn."

What phrase is critical to the validity of a requirements contract? a. "100 percent of output" b. "accept the entire quantity" c. "giving no consideration" d. "in good faith"

"IN GOOD FAITH"

Which of the following statements, if made by a seller who knows the statement to be untruthful, would not be misrepresentation of material fact resulting in a cause of action for fraud?

"There is no better car in the world.

Approximately how much merchandise is stolen from United States retail stores every day?

$25 million

Bob, a house builder, contracts with Ollie to build a house on Ollie's lot. The total price of the construction is $100,000, $20,000 of which will be Bob's profit. After Bob has put $10,000 worth of materials into the house, Ollie wrongfully refuses to let him finish the house. If Bob sues for damages, he will be able to collect: A. $10,000. B. $20,000. C. $30,000. D. $100,000.

$30,000.

Kendall drove through an intersection without looking and hit JDs car that he had driven into the intersection without obeying a stop sign. Kendall Sued JD. The jury found Kendalls fault contributed 40 percent to the collision and determined that her total loss was $100,000. Under comparative negligence, the jury should award Kendall: a. $40,000 b. $100,000 c. $60,000 d. nothing

$60,000

Annette drove through an intersection without looking and hit Vincent's car that he had driven into the intersection without obeying a stop sign. Annette sued Vincent. The jury found that Annette's fault contributed 20 percent to the collision and determined that her total loss was $100,000. Under comparative negligence, the jury would reduce Annette's recovery by: a. $20,000 b. $100,000 c. $80,000 d. nothing

$80,000

Arturo drove through an intersection without looking and hit Vincent's car that he had driven into the intersection without obeying a stop sign. Arturo sued Vincent. The jury found that Arturo's fault contributed 20 percent to the collision and determined that his total loss was $100,000. Under comparative negligence, the jury should award Arturo:

$80,000.

Jill is 15. in most states, Jill would be considered a minor because she is under the age of a-16 b-18 c-20 d-21

18

Which statement most accurately describes third party beneficiary rights? a) A beneficiary may enforce a contract if the parties intended to benefit him and if enforcing the promise will satisfy a duty of the promisee to the beneficiary. b) If a promisee intended to make a gift to the beneficiary, the beneficiary may not enforce the contract. c) An intended third party beneficiary has no enforceable rights in a contract. d) Incidental beneficiaries have enforceable rights against both contracting parties.

A beneficiary may enforce a contract if the parties intended to benefit him and if enforcing the promise will satisfy a duty of the promisee to the beneficiary.

Which of the following types of property would be goods under the Uniform Commercial Code? a. A promissory note. b. A stock. c. A patent. d. A computer.

A computer

What is not required to establish promissory estoppel? A. A promise made by the defendant. B. A promise made by the plaintiff in response to the defendant's promise. C. Reliance on the defendant's promise. D. Enforcing the promise is the only way to avoid injustice.

A promise made by the plaintiff in response to the defendant's promise.

Preexisting Duty

A promise to do something the promisor is already obligated to due is not consideration

The UCC deals with unconscionability in a contract by providing that a court may:

ALL OF THE ABOVE a. refuse to enforce the contract. b. enforce the remainder of the contract without the unconscionable clause. c. limit the application of any unconscionable clause as to avoid any unconscionable result.

Which of the following offers are considered to be irrevocable for a given period? a. Firm offers. b. Option contracts. c. A writing signed by a merchant offering to hold open an offer for the sale of goods for a stated period. d. All of the above.

ALL OF THE ABOVE!!

The common law governs contracts for a. services b. employment c. real estate d. all of the above

ALL OF THE ABOVE: SERVICES, EMPLOYMENT & REAL ESTATE

Which of the following is a valid defense to a defamation claim? a. The statement was true. b. The statement was only an opinion. c. The person making the statement made it only to the plaintiff, not to any third parties. d. All of the above.

ALL OF THE ABOVE:..... a. The statement was true. b. The statement was only an opinion. c. The person making the statement made it only to the plaintiff, not to any third parties.

Which of the following is/are example(s) of true impossibility?

All of the above

Which of the following offers are considered to be irrevocable for a given period?

All of the above (Option Contract, Firm Offer)

What is a major difference between a United States lawsuit versus a French lawsuit?

All of the above are correct.

Generally, a seller has no duty to disclose facts. However, there is a duty to disclose information or facts if the disclosure is necessary to: A. Correct a previous assertion B. Correct a basic mistaken assumption on which the other party is relying C. Report a latent defect that the buyer would not be expected to discover D. All of the above are true

All of the above are true

Virginia borrowed money from G & L Lending at 35% interest per year. The state maximum interest rate is 20% per year. Virginia defaulted on the loan. What amount can G& L collect from Virginia? A. G & L will be able to collect the principal plus 20% interest per year. B. G & L will be able to collect the principal but not any interest. C. G & L will not be able to collect either the principal or interest. D. All of the above may be correct. The answer depends on the particular state law.

All of the above may be correct. The answer depends on the particular state law.

A business will incur strict liability for damages resulting from:

All of the above.

To advance foreign policy goals, the United States has threatened or imposed economic sanctions against:

All of the above.

Angie, a minor, wants to avoid a contract she made with Cumberland Cycles. She may disaffirm the contract by: A. notifying Cumberland orally that she will not honor the agreement. B. filing a lawsuit to have a court formally cancel the contract. C. just refusing to perform her obligations under the contract. D. All of the answers are correct.

All of the answers are correct.

Barden Corporation was convicted of violating RICO. Accordingly:

All the above are correct.

Which of the following exculpatory clauses will most likely be enforceable? A. An exculpatory clause that relieves a riding stable of negligence. B. An exculpatory clause that relieves a riding stable of gross negligence. C. An exculpatory clause that relieves a riding stable from intentional torts. D. A riding stable's exculpatory clause that is hidden in an eight-page document that all riders are required to sign.

An exculpatory clause that relieves a riding stable of negligence.

Jeffery offers to shovel the snow from Ben's driveway for $35. Ben replies "OK." This is an example of:

An express, bilateral contract

At an auction sale, each bid is:

An offer

****What elements are necessary for an offer to be valid? Give two examples of nonoffers.

An offer is an act or statement that proposes definite terms and permits the other party to create a contract by accepting those terms. First the offeror has to intend to make a bargain. Second the terms of the offer need to be definite. Invitations to bargain, price quotes, letters of intent, adver-tisements, and items on the auction block are generally not offers.

Arnold wrote a defamatory letter regarding Bert which he mailed to Bert, and only showed to Bert's good friend, Stan. a. Arnold has committed the tort of slander. b. Arnold has committed the tort of libel. c. Arnold has committed neither libel nor slander. d. Arnold has committed both libel and slander.

Arnold has committed the tort of libel.

In the case of Sepulveda v. Aviles, the New York Supreme Court, Appellate Division, found evidence of undue influence in:

Aviles's use of Seals' funds and credit cards

A said to B, "I'll give you $100 for that bracelet." B replied, "$135." A said, "NO thanks." B then said that B accepted the $100, but A was no longer interested and said there was no contract. B insists there is a contract. Result?

B's counteroffer of $135 terminated A's offer of $100

Acme believes that L'la, Inc., a competing company, is violating United States antitrust law based on its conduct in France. Acme has a good case if it can prove: a. L'la's conduct has a direct and substantial effect on the U.S. market. b. L'la's conduct was intended to affect the U.S. market. c. Both of the above are correct. d. Neither of the above is correct since L'la is a foreign company.

BOTH OF THE ABOVE ARE CORRECT

Which of the following are the two basic elements to consideration? a. Bargained-for exchange and legal sufficiency b. Legal detriment and legal benefit c. Legal sufficiency and legal adequacy d. Promise and forbearance

Bargained-for exchange and legal sufficiency

What is a major argument against the GATT Treaty?

Both (a) and (b) above are major arguments against GATT.

A nonparty to a contract may enforce the contract if the person is: a) a donee beneficiary b) an incidental beneficiary c) a creditor beneficiary d) Both a and c

Both a and c: (DONEE BENEFICIARY & CREDITOR BENEFICIARY)

A bilateral contract consists of a:

Both parties make a promise (promise for a promise)

Theft is to criminal law as ________ is to civil law. a. stealing b. conversion c. appropriating d. trespass

CONVERSION

The country that traded the most goods with the United States, as of 2007 figures, was:

Canada.

Garth's Imports sold a car to Wally on credit for $30,000. Garth assigned to Cassandra all of his rights to receive money from Wally. Cassandra did not inform Wally of the assignment. Therefore, Wally continued to make the next three payments directly to Garth. Shortly thereafter, Garth left the country with the money. If Cassandra sues Wally for the missing three payments: a) Cassandra will not be able to collect the money from Wally. b) Wally is not liable for the three payments because an assignment is not valid unless the obligor is notified. c) Wally is liable for the three payments because Cassandra paid consideration for the assignment rights. d) Wally cannot raise the defense of previous payment.

Cassandra will not be able to collect the money from Wally.

Under what law in Mississippi can a person be justified in using force to protect themself from an intruder in their home or work place? a. Assumption of Risk b. Comparative Negligence c. Respondeat Superior d. Castle Doctrine

Castle Doctrine

The European Union was formerly known as the:

Common Market.

Which of the following is not an essential element of an offer? a. Consideration b. Intent to make a contract c. Definiteness of terms d. Communication to offeree

Consideration

NEED TO CHECK TO SEE WHICH OF THESE ARE CORRECT AND THEN SEPARATE THEM INTO TWO ANSWERS IF NECESSARY: Consideration always must be an act or the promise to perform an act: FALSE

Consideration can be a promise or an act: TRUE

Dallas unearths what he thinks may be a gem while he is working up a garden spot. He takes it to the local jeweler, who says he isn't sure until it is cleaned and polished, but he thinks it may be a semiprecious gem worth about $150. The jeweler offers to buy it, and Dallas is thrilled to sell for that price. If the jeweler later finds that the gem was really a precious gem worth ten times what he paid for it:

Dallas may not rescind the contract of sale. He knew there was uncertainty about the value of the exchange and accepted the risk.

Dana hires Paris to paint a portrait of her poodle, "Mack." The painting is to be done to Dana's personal satisfaction. Upon completion of the painting, which of the following will be true?

Dana may refuse to accept the painting if she really does not like it

Which of the following relationships will ordinarily not create an insurable interest?

Doctor and patient.

Marty's home had burned to the ground. When he met with his insurance adjuster, she accused him of burning down the house, and said she would have him criminally prosecuted if he didn't settle the claim for much less than the house was worth. Marty agreed to the settlement. If he changed his mind, he can probably rescind the settlement on the basis of:

Duress

Trein, Inc. entered into a one-year, $1 million contract with Mia, a sports celebrity, to promote Trein's products. E-presto Inc., a competitor of Trein, was interested in having Mia promote its products and knew of her contract with Trein. Epresto offered Mia a three-year, $5 million contract. Mia left Trein and signed with E-presto. Which statement is correct? a. Trein is liable for tortious interference with a contract. b. E-presto is liable for tortious interference with a contract. c. Mia is liable for tortious interference with a contract. d. Both Mia and E-presto are liable for tortious interference with a contract.

E-presto is liable for tortious interference with a contract.

Jamie is building a new house on her lot. She invites Earnie of Earnie's Excavation to bid on the excavation job. Earnie observes that the lot next to Jamie's is also under excavation and the soil in that lot is normal and not excessively rocky. Based on the assumption that the soil in Jamie's lot will be similar, he and Jamie agree that the excavation will cost $3,000. When Earnie starts digging, he learns there is solid rock under Jamie's lot. Earnie says it will cost an extra $2,500 for the excavation work. Jamie agrees just to get the job done but later refuses to pay a dime more than $3,000. If Earnie sues, the most likely result would be: a. Jamie wins, as Earnie was under a preexisting duty to dig the basement. b. Earnie wins as this modification is governed by the UCC and consideration is not required to enforce a modification of the agreement. c. Jamie wins as Earnie was not acting in good faith and just wanted to put Jamie in a situation where she didn't have a choice but to agree to more money. d. Earnie wins, as the modification was due to unforeseen difficulties.

EARNIE wins, as the modification was due to unforeseen difficulties.

Nick picks up a six-pack of Budwseiser and a 2 pound bag of Oreos at James Food Center. Before getting to the check-out counter, he opens the Oreos and eats about half a bag. Nick then washes down the cookies with a couple of beers. When he signs the charge ticket that Zerk gives him, Nick has made a(n) a. express contract b. formal contract c. quasi contract d. implied contract

EXPRESS CONTRACT

Peter, a minor, purchased a car from ACME Motors. Using a fake ID, he misrepresented his age to be 18. The contract is fully executed. Which of the following is correct? B. Peter cannot disaffirm the contract because of his misrepresentation. C. Peter can disaffirm the contract, because a minor must be saved from his own poor judgment, including his lie D. Either b or c may be applicable depending on the law of the jurisdiction in which the contract was formed

Either b or c may be applicable depending on the law of the jurisdiction in which the contract was formed

Travel Lust offered to sell 10 round-trip tickets to Elaine. Travel Lust stated that the acceptance must be in writing by USPS next-day service. Which of the following acceptances will create a con-tract between Travel Lust and Elaine? a. Elaine calls Travel Lust and states that she will buy the tickets. b. Elaine sends a fax to Travel Lust stating she will buy the tickets. c. Elaine sends a letter by USPS next-day ser-vice to Travel Lust stating that she will buy the tickets. d. All of the above responses will create a contract between Travel Lust and Elaine since they constitute reasonable means of communication.

Elaine sends a letter by USPS next-day ser-vice to Travel Lust stating that she will buy the tickets.

Ronald agrees to sell to Jill, for $150, a 150-acre parcel of land in the desert. they both believe the land to be worthless, but in fact it sits on top of a huge oil deposit. A court will A-set the agreement aside due to the obvious discrepancy in valuse between the price paid and the true value of the land. B-Set the agreement aside due to the evident failure of the owner to ascertain the value of the land. C-Enforce the agreement D-None

Enforce the agreement

Quasi-Contract

Even when there is no contract, a court may use quasi-contract to compensate a plaintiff who can show that -The plaintiff gave some benefit to the defendant; -The plaintiff reasonably expected to be paid for the benefit and the defendant knew this; and -The defendant would be unjustly enriched if he did not pay

Promissory Estoppel

Even when there is no contract, a plaintiff may use promissory estoppel to enforce the defendant's promise if he can show that: -The defendant made a promise knowing that the plaintiff would likely rely on it; -The plaintiff did rely on the promise; and -The only way to avoid injustices is to enforce the promise

Joe and Josh sign a contract in which Joe agrees to deliver 10 boxes of widgets in exchange for Joe's promise to pay $50 per box. Joe delivers the widgets and Josh pays for the widgets. This is an example of a(n):

Executed contract

Alice signed s contract to buy Bob's house with a clause explaining the loan. Alice tries but is unable to obtain the loan. Alice is in breech of the contract

F

Courts normally require consideration to be approximately equal on both sides

F

In negotiating the sale of a car, Karla said "I guarantee you will be personally satisfied with this car". The guarantee was written on the contract. If controversy arises the court will apply a subjective standard, meaning Karla's judgment must be reasonable

F

John is a licensed doctor in Michigan. When he returns to Florida he begins to provide medical services to people. Issac owed John $2000 for medical services. John will be able to enforce his contract with Issac

F

Nominal damages are awarded in contract cases in which a damage amount was named in the contract

F

Roman purchases 5000 pounds of coffee. The coffee was delivered on Sept 1. Since the contract included a date for performance, time is of the essence and the delivery date is strictly enforceable

F

Rudolph overhears Macy talking bout going skydiving over sb. Rudolph quickly takes out an insurance policy on Macy's life. Macy dies. Rudolph can collect the money

F

Vick Valve company makes valves for plumbing fixtures. At the beginning of the year, it sends out a price list addressing each one, "to our valued customer". Honest Hank Hardware orders a variety of valves at the price quoted on the price list. Vick Valve must honor the prices on the list and sell the Valves to Honest Hank

F

While eating at Hola Taco, a customer notices that their permit is expired. This means the customer does not legally have to pay for her food

F

You have placed an antique sofa up for auction and the auctioneer as not made any special announcements about

F

A contract with a person who is under a court ordered guardianship is voidable. a. True b. False

FALSE

A valid contract can legally be voided by either party.

FALSE

Abdulla hired Granite Construction to build an addition onto his home. Granite Construction dug the foundation but then abandoned the project. Granite Construction is entitled to receive the full contract price minus the value of the defects.

FALSE

After an illegal contract is executed, the courts will require a party who is unjustly enriched at the expense of the other party to pay damages

FALSE

All oral contracts are quasi-contracts until they are completely executed

FALSE

April put an advertisement in the newspaper advertising the sale of her computer for $500. Simultaneously, six people responded to the ad by mail with formal written acceptances. April is bound on six contracts to sell her computer for $500.

FALSE

Barbara a skilled welder, was hired for a welding position. She was asked to sign noncompete clauses incase she leaves Manico. A court would be very likely to enforce this unless time or geographic restriction is unreasonable

FALSE

Caroline offers to buy Joe's business law textbook. The offer will terminate if Joe dies before accepting it, but if Caroline were to die before acceptance, a contract could still be formed. a. true b. false

FALSE

Contracts generally do not require bargaining that leads to an exchange between the parties.

FALSE

Contracts in which one party agrees to buy all his requirements of certain goods from the other party are generally unenforceable because there is no definite amount.

FALSE

Courts enforce all promises in the interests of simple morality

FALSE

Dr. Gonzalez ordered specialized surgical equipment from Physician's Supply Co., but his order was not delivered by the agreed date. Gonzalez is under no obligation to minimize damages since the contract was breached by Physician's Supply, not Gonzalez.

FALSE

Either party may demand rescission of a fully executed oral contract that was required to have been in writing under the statute of frauds.

FALSE

Fraudulent, but not innocent, misrepresentation permits the injured party to rescind a contract.

FALSE

Hannah orally agrees to sell her house to Brett for $175,000. If she delivers the deed to Brett with the expectation of payment in two weeks and he fails to pay, most courts will not enforce the contract since it was not in writing.

FALSE

If Gloria threw a rock which hit Merle, she is liable for an intentional tort of battery only if she intended to injure or harm Merle. a. true b. false

FALSE

If Jay is 18 years old, under Mississippi law, he is no longer considered a minor. a. True b. False

FALSE

If a court finds as a matter of law that a clause of Superior Siding's contract was unconscionable at the time the contract was made, the court must refuse to enforce the contract.

FALSE

If a salesperson says "this is a great car and its really fun to drive" but the car turns out to be a lemon, the salesperson has committed fraud

FALSE

If both parties believe they have a binding contract, this belief is controlling if there is later a question about the validity and enforceability of the agreement.

FALSE

Injunctions are commonly used by courts to force employees to complete their contractual obligations with their employers.

FALSE

Irving is shopping at the local Computers R Us store and agrees to buy a powerful computer for his home "on the condition of personal satisfaction." If Irving takes the computer back to the store for no reason other than that he doesn't like the computer, then the seller will have no choice but to accept the computer and terminate the contract.

FALSE

John was a licensed physician in Michigan. When John retired to Oxford, he started providing medical services to the people in his condo, relying entirely on his Michigan medical license. John's next-door neighbor, Isaac, owed John $2000 for medical services. John will be able to enforce the contract he made with Isaac. a. True b. False

FALSE

Kathy offers to sell Mies her house for $95,000, and she tells Mies that the offer will be open for ten days. By the eighth day, Mies has not accepted the offer and Kathy gets angry and she tells Mies that the house is no longer for sale. On the morning of the tenth day, Mies informs Kathy that he is accepting her offer of $95,000. Because Kathy promised to keep the offer open for ten days, Mies can still legally accept it under these circumstances. a. True b. False

FALSE

Liquidated damages are awarded to parties who have experienced an injury to their legal rights but have no actual loss.

FALSE

Megan agrees to sell Neff her quartz watch but they do not specify a price. In such a case, the court would not enforce the agreement because all of the essential terms are not present.

FALSE

Morality plays no part of gambling contract legality.

FALSE

Nella offers to sell her crop of strawberries, which have just been picked, to Morgan's Market. Since she does not specify a time limit for acceptance, Morgan's can accept the offer the following week, as long as Nella has not revoked it.

FALSE

On Monday, Harry puts an offer in the mail to Sally to sell his guitar for $50. Monday night when jamming with his buddies, he decides he will really miss his old guitar and has second thoughts about selling it. Tuesday morning he puts a revocation in the mail informing Sally he has changed his mind and the guitar is no longer for sale. The revocation is effective on Tuesday morning.

FALSE

Past actions not presently bargained for by the parties in an agreement can become valid consideration for a contract. a. true b. false

FALSE

Patrick owned an acre of land which was being divided into building lots. Nancy was interested in purchasing the corner lot. In a signed writing, Patrick stated "I will sell Nancy Grimes a lot on Route 70 for $5,500 cash, payable on April 30, 2009." This writing is sufficient under the statute of frauds to make the contract enforceable.

FALSE

Paul promises to help Sherry study for her Business Law test if Sherry will go grocery shopping for him at Kroger. Sherry accepts this offer if she promises to go grocery shopping for Paul at Kroger a. True b. False

FALSE

Ramon purchased 5,000 pounds of coffee from Quick Jump Coffee. The coffee was to be delivered on September 1. Since the contract included a date for performance, time is of the essence and the delivery date is strictly enforceable.

FALSE

Sebastian promises to help Ike study for his B-Law test if Ike will go grocery shopping for him at Kroger. Ike accepts this offer if promises to go grocery shopping for Sebastian at Kroger. a. True b. False

FALSE

Sweet Plantation, Inc. made a written contract with Candy, Inc. whereby Sweet Plantation agreed to supply all of Candy's sugar requirements for the next year at $.25 per pound. A dispute arose as to how much sugar Sweet is to supply. The parol evidence rule will bar Sweet's introduction of evidence concerning the intent of the requirements of Candy.

FALSE

The terms "nuisance" and "trespass to property" refer to the same tort. a. true b. false

FALSE

UCC does not apply to contracts for the sale of goods if the value of the goods is less than $500.

FALSE

Under pure contributory negligence, each party's negligence is measured in terms of percentage of fault for the entire accident, and any damages allowable to the plaintiff shall be diminished in proportion to amount of negligence attributable to the plaintiff. a. True b. False

FALSE

Upon the recommendation of a friend, Hope hires Joey to rewire her kitchen and he completes the work within the time agreed. Then Hope finds out that Joey is not a licensed electrician, and she refuses to pay him for the work. A court will enforce the agreement because otherwise Hope would be unjustly enriched.

FALSE

Vern Valve Company makes valves for plumbing fixtures. At the beginning of the year, it sends out a price list addressing each one, "To our valued customers." Honest Hank Hardware orders a variety of valves at the prices quoted on the price list. Vern Valve must sell the valves to Honest Hank for the prices quoted on the list.

FALSE

Working out some frustrations after a last second loss to LSU, Bo angrily flings a football and then sees it is flying toward one of the referees. He yells, "Watch out!" The football misses the referee. Since there was no physical contact, no assault or battery occurred. a. true b. false

FALSE

ny contract involving a sale of goods of $100 or more must be in writing.

FALSE

Lucy and Rick sign a contract in which Lucy agrees to deliver 10 boxes of chocolates in exchange for Rick's promise to pay $5 per box. Lucy delivers the candy. Rick pays for the goods. The contract is fully executory

FALSE , the contract is fully executed

___________ is defined as the wrongful confinement or detention of a person against his or her will. a. false imprisonment b. outrageous conduct c. malicious prosecution d. fraud

FALSE IMPRISONMENT

Candy, Inc. signed an agreement with Sweet Plantation. Under the contract, Candy, Inc. agreed to purchase all the sugar cane Sweet Plantation grew during the coming season. This contract will be unenforceable due to its vagueness.

FFALSE

A binding contract cannot contain a cancellation provision.

False

A contract can only be created when a promise is given in exchange for another promise

False

A contract made by an incompetent person after a guardian has been appointed is voidable.

False

A contract never can be both executory and unilateral

False

A contract or a clause in a contract is illegal only if there is a specific statute that prohibits the action bt the contract

False

A father's oral promise to his daughter and her fiancée made in consideration of their contemplated marriage is binding when made in the course of a serious discussion.

False

A offers to sell her car to B for $500, and B accepts. A's car has a market value of $1,000 but this fact is unknown to A. The contract is unenforceable.

False

A party injured by a breach of contract may still recover for all his damages, even if he could have done something to lower those damages. He is not obligated to lower his damages

False

A promise by a coat factory to pay $0.25 per button for any buttons that it orders from the ABC Button Company constitutes consideration

False

A promise to make a gift is enforceable

False

A quasi contract is the same as an oral contract

False

A reward offered to the public for the return of lost property is not considered an offer.

False

A signifigant mistake in value will usually enable a party toa contract to avoid the contract.

False

An agreement cannot be enforced if it does not set forth every detail.

False

An agreement to sell hammers and screwdrivers to a buyer who intends to use them as burglar's tools is void if the intention of the buyer is known to the seller.

False

An express contract is one in which the agreement is shown by acts and conduct of the parties.

False

An illusory promise is valid consideration

False

An offer may be made only to a specific person.

False

Any contract involving a sale of goods of $100 or more must be in writing.

False

Char-Glo Industries contracted with Evergreen Law Service to mow and trim the company's lawn. In the contract, Char-Glo included a clause prohibiting Evergreen from delegating its duties. Courts will ordinarily not enforce such a clause.

False

Contract terms may not be implied from conduct

False

Counteroffers are limited to offers that directly contradict the original offer

False

Courts normally require adequate consideration.

False

Customs and trade usage can override the express provisions of a contract

False

Cynthia and Brian were friends. Brian was a dare devil. Because of his antics, Cynthia thought that Brian wasn't long for this life. Cynthia purchased a life insurance policy on Brian's life. Subsequently, Brian was killed in a car accident. Since Cynthia and Brian were friends, Cynthia had an insurable interest in his life and will be entitled to the insurance proceeds.

False

Denton agreed to build a cedar deck for the Thrashers for $7,000. After he began the work, the Thrashers asked him to add cedar flower boxes at one side. Denton replied he would, but it would cost an additional $600. The Thrashers would not be obligated to pay the additional sum because the original agreement already obligated Denton to complete the deck for $7,000.

False

Every contract has only two parties

False

First Bank has agreed to loan Teresa $10,000 for use in her cosmetics business. If Teresa sells the business to Melissa before the loan is disbursed, Theresa can assign her rights to the loan to Melissa.

False

Food, clothing and shelter are the only things that the courts have been willing to define as being "necessaries."

False

For consideration to have "legally sufficient value," it must consist of goods or money

False

Generally, advertisements, catalog prices, and circulars are offers that can be accepted.

False

Generally, reasonable liquidated damage clauses will be enforced whenever actual damages are easy to determine

False

Generally, when a person of legal age makes a contract with a minor, the contract is voidable by either party

False

If Ray agrees to rake leaves for Michelle in exchange for Michelle's promise to pay off the debt Ray owes to Dean, the Dean is a donee beneficiary of the agreement between Ray and Michelle.

False

If Valley Bridge contracts with Rainbow Painters to paint a bridge and the contract requires that only Sherwin Williams paint be used, then Sherwin Williams, as third party beneficiary will be able to enforce the contract against either Valley Bridge or Rainbow Painters.

False

If a contract is illegal, the party less at fault will usually be entitled to enforce it so long as it has not yet been fully performed.

False

If both parties to a contract are mistaken about a fact, it is a unilateral mistake.

False

In a majority of states, a minor cannot avoid a contract if the minor cannot return all of the benefits received from the other person.

False

In general, minors are not held personally liable for their torts

False

In most states, revocation is effective when it is sent by the offeror

False

Mistakes in judgement as to value or quality will permit one to avoid a contract.

False

Nelson Roofers substantially performed in its contract with Letty Jones. Nelson Roofers is entitled to the full contract price with no deductions

False

Norm and Frank have a legal contract that is silent with regard to an assignment of the contract. In order for Norm to assign all or part of his rights under a contract, Frank must grant such permission to Norm.

False

Offers, acceptances of offers, and revocations of offers are all effective when mailed in a properly addressed envelope bearing the proper amount of postage

False

Only the parties who signed the original contract can have rights with respect to that contract

False

Paid surrogacy contracts are viewed by the legislative majority in all states as immoral and illegal.

False

Parents are liable for contracts signed by their minor children if the terms are reasonable.

False

Parents are ordinarily liable for the contracts made by their minor children acting on their own

False

Rejection of an offer by the offeree will not necessarily terminate an offer

False

Rudolph overhears Macy's plans to go skydiving over spring break. Not really knowing Macy, but figuring it's worth a chance, Rudolph rushes out and buys an insurance policy for $100,000 on Macy's life. Macy does in fact meet her demise jumping out of the airplane. Rudolph can collect the $100,000.

False

Sara Student wished to pay off her $5,000 student loan. If she sends in a check for $3,000 and the creditor cashes the check, the debt will be fully satisfied provided the check is marked "paid in full"

False

Section 2-306 of the UCC expressly disallows output contracts in the sale of goods.

False

Society enforces all promises in the interests of simple morality.

False

Strawly Corp. runs an "adult bookstore" in Metro City, leasing the building from MegaCorp. Then, Metro City passes an ordinance prohibiting the sales of the types of merchandise found in "adult bookstores." Strawly is still bound to the contract

False

Strawly Corp. wants to sell land which has toxic waste underground. It may shift all the responsibility for environmental cleanup to the buyer by including such a provision in the sales contract.

False

Tess, a tenant, moves from her apartment in breach of the lease agreement. The landlord, Lenny, may NOT attempt to rent the apartment until the date that the lease would have expired, and so he has no recourse to minimize the damages

False

The UCC requires consideration for agreements modifying contracts for the sale of goods.

False

The court finds as a matter of law that a clause of Superior Siding's contract was unconscionable at the time the contract was made. The court must refuse to enforce the contract.

False

The effect of an implied contract is not the same as the effect of an express contract.

False

The parole evidence rule permits the introduction at trial of evidence of the parties' prior negotiations, prior agreements, or contempoaneous oral agreements that contradicts or varies the terms of the written contract.

False

To be valid, a contract must be enforcable by all parties to it.

False

True consideration occurs only when the value of one promise is equal to the value of the promise given by the other party

False

Unconscionability and fraud are synonymous terms.

False

Valerie promises Teresa that she will pay Teresa $75 if Teresa will clean Valerie's house by noon on Saturday. If Teresa cleans the house by noon on Saturday and Valerie pays the $75, the this is an implied, bilateral, executory contract.

False

When Olga asks Sven if he wishes to sell his Harley motorcycle, he replies that he would not sell it "for less than $2,000. "Olga replies, "I accept," and hands him $2,000. A contract exists.

False

When Randy accepted a job with Buren Construction, Randy signed the following agreement, "Upon termination of my employment with Buren Construction, I agree never to work for another employer as an electrician." If Randy resigns from Buren Construction, this agreement would be upheld under the theory of freedom of contract.

False

When a minor avoids contracts, the minor always must return the other contracting parties to their original financial positions

False

A bank officer forges the signatures of his customer on a promissory note. This note is void as a result of: a. fraud in the inducement b. fraud in the execution. c. negligent misrepresentation d. none of the above

Fraud in the inducement

M and E contracted to sell 500 music stands to Coda, Inc. M and E shipped the stands in accordance with the agreement. Coda paid for the stands as promised. The contract between M and E, and Coda, is discharged by

Full Preformance

When a party to a contract makes a unilateral mistake, the contract: A. generally can be rescinded by the mistaken party. B. is void. C. can be rescinded by either party. D. generally cannot be rescinded by the mistaken party unless the contract is unconscionable or it is proven that the nonmistaken party knew of the error.

Generally cannot be rescinded by the mistaken party unless the contract is unconscionable or it is proven that the nonmistaken party knew of the error.

The Grand Performance Hall is in the process of remodeling and is scheduled to open for business after being closed for 50 years. As part of the remodeling, it is installing a new sound system. The sound system is to be installed by Sound Systems, Inc. on or before April 10. Opening night of the hall is May 1. The contract states that time is of the essence, because of the opening night deadline. The sound system is delivered on April 20 but Grand Hall refuses to accept it. Sound System sues. What result?

Grand Hall wins. The contract date was strictly enforceable

The concept that an injured party may recover consequential damages only if the breaching party should have foreseen them was established in:

Hadley v. Baxendale

Honeywell, Inc., and Minolta Camera Co. had a contract providing that Honeywell would give to Minolta various technical information on the design of a specialized camera lens. Minolta would have the right to use the information in its cameras, provided that Minolta also used certain Honeywell parts in its cameras. Honeywell delivered to Minolta numerous technical documents, computer software, and test equipment, and Honeywell engineers met with Minolta engineers at least 20 times to discuss the equipment. Several years later, Honeywell sued, claiming that Minolta had taken the design information but failed to use Honeywell parts in its cameras. Minolta moved to dismiss, claiming that the UCC required lawsuits concerning the sale of goods to be filed within four years of the breach and that this lawsuit was too late. Honeywell answered that the UCC did not apply, and that therefore, Minnesota's six-year statute of limitations governed. Who is right?

Honeywell

Which of the following are examples of tort reform? I. Caps on non-economic damages II. Arbitration and mediation III. Limits on punitive damage awards a. I only b. II only c. III only d. I and III only e. I, II and III

I and III only: II. Arbitration and mediation III. Limits on punitive damage awards

Madelyn offers to sell James goods both parties know are stolen. James accepts the offer, and agrees to pay for the goods. Later, James refuses to accept or pay for the goods. If Madelyn sues James for breach of contract, what is the probable result? a. The law would enforce this valid, enforceable contract. b. James would win as this is a voidable contract. c. Madelyn would win as this is a unilateral contract. d. The law would not enforce James's promise, as it does not have a lawful purpose.

The law would not enforce James's promise, as it does not have a lawful purpose.

Shelly offers to sell Jane goods both parties know are stolen. Jane accepts the offer, and agrees to pay for the goods. Later, Jane refuses to accept or pay for the goods. If Shelly sues Jane for breach of contract, what is the probable result? A. Shelly would win as this is a valid, enforceable contract. B. Jane would win as this is a voidable contract. C. Shelly would win as this is a unilateral contract. D. The law would not enforce Jane's promise, as it does not have a lawful purpose.

The law would not enforce Jane's promise, as it does not have a lawful purpose.

Dick offes to sell Jane his 1955 Thunderbird convertible. Before Jane can accept the offer, light-ning strikes the car and it is totally destroyed. Which of the following is true? a. Jane can still accept the offer and John must find a 1955 Thunderbird to sell. b. The offer is terminated by law. c. Dick can still revoke his offer so long as he does so before Jane accepts. d. Jane can still accept the offer. She will be entitled to the insurance proceeds.

The offer is terminated by law.

Floyd offers to sell his 1967 Ford Mustang convertible to Tim. Before they conclude their negotia-tions, Floyd dies. Which of the following is true? a. Floyd's heirs must sell the car to Tim. b. Floyd's heirs must continue to negotiate the offer and sell the car, if a reasonable price can be determined. c. The offer terminates automatically upon Floyd's death. d. There is a contract if Tim accepts before learning of Floyd's death.

The offer terminates automatically upon Floyd's death.

David and George have a contract wherein George agrees to buy sporting goods and equipment. Since the goods are not to be delivered for several months, they left the price open. Under the UCC, which of the following will be true? a. The price will be the reasonable price based on fair market value of the goods at the time of delivery. b. David has the freedom to set any price he wants considering George was foolish enough to enter into a contract without a price established. c. George has the right to establish a price because he is the buyer. David should have taken steps to protect his sales interest. d. None of the above. The contract is not val-id because the terms are not definite and certain.

The price will be the reasonable price based on fair market value of the goods at the time of delivery.

Howson won a lawsuit against Hardwick for intentionally inflicting emotional distress. The jury awarded Howson $500,000 in compensatory damages. It also awarded Howson $4 million in punitive damages because Hardwick was quite wealthy and the jury thought a large amount was necessary for Hardwick to feel the punishing effects of the judgment. How does the jury's award fit into the guidelines offered by the U.S. Supreme Court?

The punitive award is excessive because the Supreme Court has stated that the trial court may not use the defendant's wealth as an excuse to award an unreasonably high award.

Vicki entered into a written contract to buy a car from Valley Motors. During the negotiations, the sales representative said that the car had a two-year full warranty. The written contract included a provision that stated, "This writing is the full and final expression of the parties' agreement, and anything said before signing or while signing is irrelevant." The written contract did not include a warranty. Two months after Vicki took delivery of the car, she discovered that the transmission needed to be replaced. Vicki claimed that it was covered by the full warranty. Will Vicki be able to present evidence as to the sale representative's statements concerning the warranty?

No. The parol evidence rule will most likely exclude any evidence of the discussion of the warranty.

Which of the following acts resulting in injury would be negligence per se? a. Janet driving 5 mph under the posted speed limit. b. Ted keeping explosives in his private, locked garage in compliance with state law regulating the storage of such materials. c. A retailer selling glue containing benzene to a 19-year-old boy as allowed by state law. d. None of the above acts are negligence per se.

None of the above acts are negligence per se.

Which of the following are generally considered to be legal offers? A. Placing an item up for auction. B. Catalog advertisements. C. Price lists. D. None of the above are generally considered offers.

None of the above are generally considered offers.

Which of the following are generally considered to be legal offers? a. Placing an item up for auction. b. Catalog advertisements. c. Price lists. d. None of the above are generally considered offers.

None of the above are generally considered offers.

Which of the following are generally considered to be legal offers?

None of the above are generally considered offers. (price lists, catalog advertisements, placing an item up for auction)

Jaime offered to buy Kevin's bike. Jamie is the: A. offeree. B. offeror. C. mortgagor. D. trustee.

OFFERER

An insurance contract is not considered to be a legalized form of gambling because: A. one must have an insurable interest in the person being insured. B. insurance contracts are underwritten by reputable companies. C. insurance activities are regulated by the state department of insurance. D. All of the above.

One must have an insurable interest in the person being insured.

Unilateral Contract

One party makes a promise that the other party can accept only be doing something

Agreement

One party makes a valid offer, and the other party must accept it

While they're sharing a bottle of wine, Carol says, "Pam, you're my best friend in the world. I just inherited a million bucks, and I want you to have some of it. Come with me to the bank tomorrow, and I'll give you $10,000." "Sweet!" Pam replies. Later that day, Carol has a change of heart. She is allowed to do so. Examine the list of the elements of a contract, and give the correct reason. a. The agreement was not put into writing. b. The agreement lacks a legal purpose. c. Pam did not give consideration. d. Pam does not have the capacity to make a contract.

Pam did not give consideration

Implied Contract

The words and conduct of the parties indicate that they intend an agreement

A young woman received an unordered diamond ring in the mail along with a bill for $850. She called the store and was told it was a sales promotion and she should pay for the ring or return it. She said, "Thank you for the free ring." The young woman kept the ring, did not pay, and was sued. Result?

The young woman may keep the ring without liability

consideration

There has to be bargaining that leads to an exchange between the parties

Oxtron, Inc. sent the following price list to its customers. Dispensers SBC-500J $670.00 True TDD-1 $875.00 True TDD-2 $1,465.00 True TDD-3 $1,515.00 CO2 Tank and Reg-ulator $150.00 Which statement is correct? a. These price quotes would generally be con-sidered offers. b. These price quotes would generally not be considered offers. c. These price quotes would generally be con-sidered output contracts. d. These price quotes would generally be con-sidered requirements contracts.

These price quotes would generally not be considered offers.

Robert, a minor, buys a stereo from Jane for $200. State law allows a minor to disaffirm contracts within a reasonable time after turning 18. Robert disaffirms the contract the day after turning 18 and returns the stereo. A. This contract was a valid contract, Robert cannot disaffirm. B. This contract was a voidable contract, Robert can disaffirm. C. This contract was a void contract. D. This contract was unenforceable because it needed to be in writing to be enforceable.

This contract was a voidable contract, Robert can disaffirm.

Jackie hires Charles to lay new carpet in her bedroom. Charles does such a bad job, that the only way to fix the carpet is to start over and relay the carpet. Which of the following best describes this situation?

This is a material breach. Jackie is discharged and owes nothing to Charles

Jeff was a subcontractor, bidding on a contract for ACE Corp., the general contractor. When adding up the total of materials and labor, Jeff's secretary mistakenly moved the decimal point one place, ending up with a bid of $3500 rather than $35,000. ACE Corp. accepted Jeff's bid, mostly because all the other bids were over $30,000. When Jeff learned of the mistake, he tells ACE Corp. that he cannot do the job for $3500. If ACE Corp. sues to enforce this contract, what is the most likely result?

This is a unilateral mistake, but one where ACE Corp. knew that a mistake had been made. Jeff should be able to rescind the contract.

Paris hires Dana, a local artist, to paint a portrait of her poodle, Mack. The painting is to be started on August 1st. On July 4th, Dana dies of complications from pneumonia. Which of the following will be true?

This is an example of true impossiblity

Patty is a poor college student struggling to work and keep up with her studies. Fred, her uncle, promises to pay Patty support of $200 per month for the next six months. Although Fred didn't ask her to, she quits her current job in order to devote full time to her studies for the next six months. Fred makes one payment and then stops with no explanation. If Patty sues, what is the likely result? a. Fred would win, as he did not ask Patty to quit her job. b. Patty would win, as a contract was formed when Fred promised to pay her the support. c. Fred would win, as family members cannot sue each other for breach of an oral promise. d. Patty may win under the doctrine of promissory estoppel.

Patty may win under the doctrine of promissory estoppel

Police Officer Paul apprehends a wanted criminal and then demands the $10,000 reward offered by Crime Stoppers. Which of the following statements is true? A. Police Officer Paul is not entitled to the reward because past consideration is never valid consideration. B. Police Officer Paul is entitled to the reward because he puts his life on the line every day. C. Police Officer Paul is not entitled to the reward because he was under a pre-existing duty to make the arrest. D. Police Officer Paul is not entitled to the reward but may have an argument under promissory estoppel.

Police Officer Paul is not entitled to the reward because he was under a pre-existing duty to make the arrest.

Fireman Mike rescued Karol's cat, Boomerang, from the top of a tall oak tree on South Lamar. Boomerang had been missing for 2 weeks, and Karol had put flyers all over town offering a $500 reward for Boomerang's return. Fireman Mike asks Karol about collecting the reward offer for returning her Boomerang. Karol has just taken Business Law and tells Fireman Mike that she doesn't have to pay it to him. Fireman Mike said if he had known that, he would have used a shotgun to get Boomerang out of the tree. What is Karol's reason for not paying Fireman Mike? a. No legally adequate consideration b. No legal capacity c. Pre-existing public duty d. Boomerangs always return on their own

Pre-existing public duty

What could Fallsview Glatt Kosher Caterers have done to avoid this lawsuit?

Prepare a written agreement, signed by the parties to the transaction

Which of the following is NOT and element of a tort cause of action: a. Duty b. Breach of Duty c. Probable cause d. Damages e. None of the above

Probable cause

In which case is the offer still valid at the time the acceptance is made? a. Hal offered to sell a book to Sid. Hal died, and Sid sent an acceptance two days later. b. By-Waste Co. telephones XXX Co. offer-ing to dispose of XXX Co.'s chemical waste by a particular method. XXX says it has another way to dispose of the waste. Then XXX finds out the method it planned to use violates environmental protection statutes, so it sends a letter of acceptance to By-Waste. c. Ray offers to sell his AT&T stock for a particular price by May 1. On May 2, Kathy agrees to buy the stock. d. In a face-to-face transaction, Pat offers to sell Mike his stereo and Mike accepts. e. All of the above.

In a face-to-face transaction, Pat offers to sell Mike his stereo and Mike accepts.

As English judges were developing the common law of contracts in the twelfth and thirteenth centuries:

Promises were found not binding unless written and sealed.

Two remedies created by Judicial activism:

Promissory Estoppel and Quasi-Contracts

Rich and Archie sign an agreement in which Archie agrees to deliver ten cases of champagne in 5 days. The parties negotiated and meant to say in the written agreement, delivery in 50 days. If the two cannot settle this dispute, and Archie still wants to deliver the champagne, then Archie should sue for the remedy of:

Reformation

When courts consider economic duress, they consider all the following factors EXCEPT: A. relative bargaining power. B. financial distress. C. legitimate business actions. D. relative size of the contract.

Relative size of the contract.

Al contracted to sell his house to Bev. Subsequently, they both changed their minds and agreed to cancel the contract. The contract between Al and Bev is discharged by: A. full performance. B. rescission. C. accord and satisfaction. D. novation.

Rescission.

Ron, a minor, goes to the hospital for treatment of the flu. On the new-patient form Ron signs, he agrees to pay for any care or treatment he receives. When billed for the treatment:

Ron must pay for the value of the benefit he received, because medical care is a necessary.

Which of the following is an example of an exculpatory clause? a. Creditor charges 38% interest on a loan. b. Seller is not responsible for property damage regardless of the cause of the injury. c. Buyer agrees to pay any costs of litigation. d. Employee agrees to never work for a competing company.

Seller is not responsible for property damage regardless of the cause of the injury.

Seth told the salesperson at Outdoor Times that he wanted a sleeping bag that would keep him comfortable if the temperature drops to 10 degrees Farenheit at night. The salesperson told Seth there were two styles that would meet his needs and Seth chose one. If the salesperson did not give Seth a written warranty with the sleeping bag: a. no warranties will be included in the pur-chase. b. Seth will still receive a warranty of mer-chantability and a warranty of fitness for a particular purpose. c. Seth will receive a warranty of fitness for a particular purpose because the salesperson gave the warranty orally. d. Seth will receive only a warranty of mer-chantability.

Seth will still receive a warranty of mer-chantability and a warranty of fitness for a particular purpose.

Keith told Carrie, "I am going to sell my snow blower. Do you want to buy it today for $150?" Carrie replied that she did. In this situation:

Keith is the offeror and Carrie is the offeree.The offer is terminated.

Barb has been a children's day care provider for several years in the small town of Abbeville. She has decided to give it all up and move to the big city for excitement and adventure. Barb sells her business to Ken, agreeing not to open a competing business within five miles of Abbeville for a period of nine months. After five months of the big city life, Barb is broke and moves back to Abbeville. She opens a small day care business. Ken sues on the noncompete clause. What is the most likely result? a. Ken wins. The agreement is enforceable. b. Barb wins. The agreement is denying her the right to do the only thing she knows how to do. c. Barb wins. The agreement is not enforceable because it is not ancillary to a legitimate bargain. d. Barb wins. The agreement is not reasonable as to time.

Ken wins. The agreement is enforceable

Smyth is an agent for L. T. Adams. To avoid becoming a party to any contract that Smyth signs for Adams, Smyth should sign in which of the following ways?

L. T. Adams, per John Smyth

_________ is written or printed communication which injures a person's reputation by discharging him/her and diminishes the respect in which he/she is held in the community is: a. Slander b. Libel

LIBEL

Dodger bought an insurance contract from Liberty Farm Co. The policy contained a clause stating that all claims for losses had to be reported within 45 days after the date of the loss or the claim would be barred. Time is stated to be of the essence. Dodger sustained a covered farm loss, but did not report it to Liberty Farm until 50 days later. Liberty Farm denied coverage for the claim. If Dodger sues, who wins?

Liberty Farm wins; there was failure of a condition subsequent

A hunter who has permission to hunt on someone else's property falls into which category: a. Trespasser b. Licensee c. Invitee d. None of the above

Licensee

Linda assigns to Ben a right to receive rent payments. The law implies the following warranty on Linda's part: a) the tenant is solvent. b) Linda actually has a right to the rental payments. c) the tenant will actually pay you. d) no warranties are implied by law in an assignment.

Linda actually has a right to the rental payments.

What is an example most likely to constitute fraud?

Silence as to a toxic waste problem on real property that the buyer would not reasonably find.

Which of the following is most likely to constitute fraud? A. A false prediction that a painting's value will rise. B. A false statement that a used car is "the best deal in town." C. A false statement that a $30,000 car attracts members of the opposite sex. D. Silence as to a toxic waste problem on real property that the buyer would not reasonably find.

Silence as to a toxic waste problem on real property that the buyer would not reasonably find.

Mark works as a bartender at The Blind Pig, a local bar. Under state law, bartenders are required to be licensed. The licensing requires filling out an application and submitting a $50 application fee. The application does not require any special education or experience, just the $50 fee. Craig enters Mark's bar, orders a round of drinks for the house, then notices that Mark's license is not on display behind the bar. Craig learns that Mark is not licensed and refuses to pay for the round of drinks. The Blind Pig sues. What result? a. Since this is an illegal contract, the courts will not enforce it. b. Since Mark violated a regulatory statute, the contract is unenforceable. c. Since this is a revenue-raising statute, The Blind Pig wins. d. Since this is a revenue-raising statute, the licensing law is unconstitutional. Craig wins.

Since this is a revenue-raising statute, The Blind Pig wins.

Sonny, a college student, places a telephone order for a new computer from Computers, Inc. The price of the computer is $1500. The clerk who takes the order sends Sonny a copy of the invoice. The next week, Sonny calls back and tries to cancel his order.

Sonny can cancel the order; the invoice is unenforceable against him, as he did not sign the invoice

When Suzanne comes home from work one evening, she finds that her driveway was shoveled and clear of snow. Later, a man comes to collect for the snow shoveling Suzanne refuses to pay for the work since she has never seen the man before and did not hire him to do her snow shoveling. Which of the following answers is most accurate?

Suzanne would not have to pay for the yard work

Boris sky dives out of a plane, gets stuck in a tree. Natasha sees him and rescues him. Boris promises her half of his life savings. When he changes his mind, Natasha will be unsuccessful in enforcing his promise

T

Consideration can be a promise or an act

T

If a contract is made with a person required by law to hold a license, and the purpose is protection of the public, the contract made by an unlicensed person it will most likely be unenforceable

T

Monumental Inc. contracts with Champion Builders to build a 3 story building. Before construction begins the local zoning board changes the zoning to residential only. The contract is discharged

T

Parol (oral) evidence refers to anything (other that the written contract itself) that was aid, done or written before or as the parties signed the contract

T

Rest Well hotel orally ordered $1000 blankets monogrammed with its initials, RWH from tricolor. Tricolor had just finished when RWH called to cancel. Tricolor will be able to enforce the agreement even though there was no writing

T

Some of the elements of a contract are agreement, consideration

T

The UCC provides that, under certain circumstances, a merchant may be liable on a written contract, even though that merchant has NOT signed it

T

Which of the following statements is incorrect concerning liquidated damages?

Liquidated damages are enforceable even if the amount is considered to be a penalty on the breaching party.

Larson entered Forrester's Auto Mart to purchase a used car. Larson found a vehicle with a sales price of $11,000. After Forrester answered all of Larson's questions, Forrester and Larson agreed to a sale. As Larson was leaving to get the money to pay for the car, Forrester told Larson that Robert Redford formerly owned the car. Larson later learned that Robert Redford had never owned the car. If Larson seeks to rescind the deal based on Forrester's statement, Larson will:

Lose because he will not be able to prove reliance on the misrepresentation

Wright Company contracted with the city of St. Louis to train and employ disadvantaged youths. If Wright fails to fulfill the contract and is sued by one of the disadvantaged youths, the youth would: a) win, as he is an intended beneficiary. b) win, as he is a donor beneficiary. c) lose, as he is a creditor beneficiary. d) lose, as he is an incidental beneficiary.

Lose, as he is an incidental beneficiary.

In deciding whether a valid contract was formed, the courts will not look at: a-the statements by the parties when they entered into the contract b-the ways the parties acted when they enterd into the contract c-the circumstances surrounding the transaction d-the subjective beliefs of the contractual parties

THE SUBJECTIVE BELIEFS OF THE CONTRACTUAL PARTIES

A letter of intent summarizes progress made during business negotiations, but it does not necessarily create a binding contract.

TRUE

A negotiable instrument, such as a check, is a type of formal contract. a. True b. False

TRUE

Acceptance of an offer to form a unilateral contract need not be communicated to the offeror to be effective.

TRUE

According to the UCC, 1 or more open terms will not cause a sales contract to fail for the indefiniteness as long as the parties intend to make a contract and there is a reasonably certain basis for the court to determine the open terms (grant an appropriate remedy).

TRUE

Adequacy of consideration is present when the value of what the first party to the contract receives under it is comparable to what he or she give to the second party. in arms-length contracts, the law does not require adequacy of consideration

TRUE

After her 18th birthday Lora may, by words or action, ratify a contract she made during the previous year.

TRUE

Alex promises to pay $100 to anyone who finds his lost watch. Kate finds and returns the watch to Alex after hearing of the reward money. Alex and Kate have an enforceable unilateral contract.

TRUE

All states allow the remedy of rescinding a contract for the sale of goods while still allowing the remedy of suing for damages

TRUE

An acceptance must be absolute and unconditional

TRUE

An agreement may violate public policy even if the agreement does not require a party to commit a crime, tort, or violate a statute.

TRUE

By signing a contract in which the value of the object being purchased is specified, the parties assume the risk that the value of the object will change or prove to be different from what they originally thought.

TRUE

Contract rescission can sometimes be based upon a unilateral mistake.

TRUE

Courts employ an objective standard to determine whether two parties intended to enter into a contract. a. true b. false

TRUE

For purposes of intentional torts, a person can have the intent to cause harm if the harm is substantially certain to occur even if he or she doesn't desire that such harm occur. a. True b. False

TRUE

If the seller has made a substantial beginning in manufacturing custom-ordered goods, then an oral contract may be enforceable regardless of the amount of money involved in the contract.

TRUE

In a unilateral contract, a promise is an exchange for an act or forbearance to act. a. true b. false

TRUE

In seeking to ascertain whether there is a meeting of the minds, the courts look to how a reasonable person would objectively view the language or actions of the parties.

TRUE

Lucky, a contractor, enters into a contract with Penny, a homeowner, to remodel her kitchen. The contract provides a specific completion date. The contract provides that if Lucky does not have the job finished by the date, Penny may deduct $100 per day from the contract price until the job is finished. This is an example of liquidated damages.

TRUE

Mary goes into Honest Harry's Electronics and purchases a TV. Mary agrees to pay for the TV in 30 days on the store's "30 days same as cash" plan. This is an executory contract.

TRUE

Nunnsky's Retail sent out newspaper inserts advertising wool suits for $50. In fact, the store had only two, out-of-style suits for sale at this price. Their other wool suits started at $175. If Nunnsky's acted in bad faith in its advertising, consumers may have protection through state statutes.

TRUE

One purpose of contract law is to make business matters more predictable.

TRUE

Oral contracts are sometimes valid. a. True b. False

TRUE

Pastor Tom was employed by the First Church for 40 years. On Pastor Tom's retirement there was no adequate pension plan. Two months after the retirement, a wealthy parishioner, in consideration for Pastor Tom's 40 years of faithful service and for being such a "sweet" man, promised to pay him $500 per month for the rest of his life. This promise probably is not enforceable.

TRUE

Raymond agrees to transfer an easement right to Sandra for $1,000. This contract is within the statute of frauds and therefore needs to be in writing to be enforceable.

TRUE

Robert offers to buy a car from Jane for $400. Jane must accept this offer in order to form an enforceable contract.

TRUE

Roger parked his car at a garage that has a large sign at the entrance saying, "This garage is not liable for items stolen from a car." This type of notice is referred to as an exculpatory clause.

TRUE

Silence can be an acceptance of an offer if the offeree had a duty to speak up. a. True b. False

TRUE

Software clickwrap and shrinkwrap agreements limiting the manufacturer's maximum responsibility to a refund of the purchase price even if the software destroys your hard drive have generally been found to be binding against consumers

TRUE

Specific performance is available when the subject matter of the contract is unique.

TRUE

The legal right to sue for a breach of contract is subject to a statute of limitations.

TRUE

The terms "nuisance" and "trespass to property" refer to entirely different INTENTIONAL torts. a. True b. False

TRUE

There is adequate consideration to support what might otherwise be a voidable contract when the value of what the first party to the contract receives under it is comparable to what he or she give to the second party. a. True b. False

TRUE

Under Mississippi law, Ben is no longer considered a minor. Ben is at least 21 years old. a. true b. false

TRUE

Under the statute of frauds, the writing must: be signed by the defendant; and must state with reasonable certainty the name of each party, the subject matter of the agreement, and all of the essential terms and promises.

TRUE

Uniform Commercial Code provides that, under certain circumstances, a merchant may be liable on a written contract, even though that merchant has NOT signed it.

TRUE

When promissory estoppel is used by the courts, it is because there is NOT an enforceable contract present.

TRUE

When promissory estoppel is used by the courts, it is because there is NOT an enforceable contract present. a. True b. False

TRUE

You have placed an antique desk (or antique sofa) up for auction and the auctioneer has not made any special announcements about the sale. You can withdraw the desk at any time before the auctioneer closes the sale by announcement or by the fall of the hammer

TRUE

elements of a contract are agreement, consideration, legality, and capacity.

TRUE

DOUBLE CHECK THIS ONE: While hunting, Roger enters Adele's property without permission and is injured by falling into a deep hole that Adele dug which was obscured by brush that Adele deliberately covered it with. Under the common law, Adele is liable for Roger's injuries. a. True b. False

TRUE OR FALSE

Generally, the assignment of the obligation to perform personal services is valid, as long as the services are equivalent in value.

TRUE OR FALSE DOUBLE CHECK THIS ONE

Marty, a 16-year-old, contracted with Cream-of-the-Crop Cycles to buy an $8,000 motorcycle. He agreed to make monthly payments until the purchase price plus interest were paid in full. It is three years later and Marty has not disaffirmed the contract and has made regular payments on the cycle since turning 18. Which of the following is correct?

Marty has ratified the contract and is now bound by its terms

Collector Carl displays his beer can collection at the local swap meet. Mary sees the collection and is interested in buying it. Carl says he will sell the collection for $1,500. Mary says she really likes the collection but is only willing to pay $1,000. Which of the following is correct? a. Mary's counteroffer terminates Carl's offer of $1,500. b. If Carl rejects Mary's counteroffer, she can still accept Carl's offer of $1,500. c. Neither offer is valid. Who would ever pay $1,000 or $1,500 for a beer can collection? d. Mary's offer is a firm offer. Carl has an exclusive right to consider her offer for a reasonable period of time.

Mary's counteroffer terminates Carl's offer of $1,500.

Walter enters a dentist office and points to a damaged tooth. The dentist, Matt, treats the tooth. If Walter refused to pay and Matt sued: a. Walter would win as there was no contract. b. Walter would win because of the UCC. c. Matt would win; this is an implied contract. d. Matt would win in quantum meruit.

Matt would win; this is an implied contract.

Noncompetition agreements are: a. more common today than they were in the past, although policy issues they raised in the 1700s have never gone away. b. now illegal, as they violate antitrust laws. c. infrequently litigated. d. relatively recent developments, first used following the Great Depression in the United States.

More common today than they were in the past, although policy issues they raised int he 1700s have never gone away

When Myrtle comes home from work one evening, she finds that her yard has been mowed and trimmed. Later, a man comes to collect for the yard work done. Myrtle refuses to pay for the work since she has never seen the man before and did not hire him to do her yard work. Which of the following answers is most accurate? A. This is an implied, unilateral contract and she must pay the price requested by the man. B. This is an express, voidable contract that either party may avoid. C. The court would order Myrtle to pay the reasonable value of the yard work because of the benefit conferred on her. D. Myrtle would not have to pay for the yard work.

Myrtle would not have to pay for the yard work.

An unexcused violation of an applicable statute that injures another person causes a tortfeasor to be guilty of: a. Negligence per se b. Strict liability c. Gross Negligence d. Assumption of risk

NEGLIGENCE PER SE

Derrick wrote a defamatory letter regarding Sammy which he mailed to Sammy, but which he did not show to anyone else. After mailing the letter to Sammy, Derrick told his psychologist about the defamatory letter during a counseling session. Which tort did Derrick commit? a. Slander only b. Libel only c. Libel and Slander d. Neither libel nor slander

NEITHER LIBEL OR SLANDER

Alexandra receives an e-mail at 1:30 p.m. on Monday offering her the job as executive producer of the Duck Dynasty television show. Uncle Si proposes to pay Alexandra an annual salary of $500,000. The e-mail states that she must accept the offer within 36 hours. Alexandra immediately overnights a counteroffer for $750,000 in salary and, a pink camp patterned duck boat, shotgun and duck call, but after realizing that she probably won't make that kind of money after graduation doing anything else, she e-mails Uncle Si around 10 a.m. the next morning and advises him in that e-mail that she accepts the original offer. If Uncle Si has already received Alexandra's overnight mail, is a contract formed? a. Yes b. No

NO

Robert offers to sell Sam his home for $175,000. The offer is made on November 7, 2013, and Robert files bankruptcy on November 8, 2013. The bankruptcy court refuses to approve Robert's offer to Sam. Can Sam sue Robert for specific performance? a. Yes. b. No.

NO

Mary makes an oral contract with Nick that would ordinarily be unenforceable under the Statute of Frauds. A court may enforce the contract under the doctrine of promissory estoppel only if the contract A-cannot be performed in one year B-involves a purchase or sale of land C-involved a sale of goods valued in excess of $5,000 D-none

NONE

The Uniform Commercial Code governs contracts for: a. services b. employment c. real estate d. none of the above

NONE OF THE ABOVE

E-mation, Inc hires Marvin to steal trade secrets from one of its competitor for $10,000. Marvin demands half the money up front. E-mation pays Marvin $5000 but Marvin decides not to pursue theft of trade secrets. E-mation sues Marvin for the return of the $5000. What will the court do with this contract? a. Order Marvin to return the $5000 b. Order Marvin to return the $5000 with interest c. Order Marvin to obtain the trade secrets d. Not do anything to help get the money back

NOT DO ANYTHING TO HELP GET THE MONEY BACK

Jerry believes his co-worker, Ben, is using illegal drugs. Since both he and Ben are nurses, Jerry is concerned Ben's drug usage could result in injury to a patient. He tells his supervisor, Cyndi. Cyndi talks with Jerry about the alleged drug usage and Ben produces a bottle of prescription medicine he is required to take for high blood pressure. The medication does not affect his ability to do his work. When Ben learns it was Jerry who reported him, Ben claims that Jerry committed an act of defamation when Jerry told Cyndi he used illegal drugs. Is Ben right?

No. Jerry is protected by the qualified privilege defense.

To raise revenues, the City of St. Cloud required restaurants to purchase a special permit if they wanted to serve food in an open-air patio. While at Hola Taco, a restaurant in St. Cloud, a customer notices that Hola Taco's permit expired. Because Hola's Taco's permit expired, the customer is not legally required to pay for her food.To raise revenues, the City of Water Valley required restaurants to purchase a special permit if they wanted to serve food in an open-air patio. (This is in addition to the sanitation inspection license.) While eating at Water Valley Taco Palace, Claire notices that Taco Palace's patio permit expired. Claire is still legally required to pay for her food.

TRUE OR FALSE? WHICH ONE IS IT?

Bry Inc. and Gangl CO. entered into an oral agreement for the sale of 3000 sweaters. Both parties preferred as required. Bry delivered the sweaters and Gangl accepted and paid for them. Since the contract is fully executed, it makes no difference that it was oral

TTRUE

Under promissory estoppel, a plaintiff must show three things. Which statement is NOT one?

That the plaintiff was injured due to negligence.

Scott is trying to introduce oral evidence in court to alter the terms of a written contract he had with Bonnie. Bonnie has raised the parol evidence rule as an objection to Scott's testimony. In which of the following circumstances will Scott not be able to introduce the oral evidence?

The contract has an integration clause in it and Scott's point of contention is covered in detail in the contract, although not to his favor.

The Plaza Hotel contracts with EZ Lawn to have EZ mow the grass on the Plaza grounds for the next 10 years. However, there is a clause in the contract that states if the hotel chooses, the contract may be terminated provided Plaza pays EZ $2,000 on termination. Which of the following is correct? a. The contract is unenforceable because the option to cancel clause makes the contract an illusory promise. b. The contract is unenforceable because the $2,000 is past consideration. c. The contract is unenforceable because only one party has the option to cancel. d. The contract is enforceable because the option to cancel clause is supported by consideration.

The contract is enforceable because the option to cancel clause is supported by consideration.

Larry has the largest pizza business in the city. He learns that Henry is thinking of opening a competing pizza and pasta delivery business. Larry gives Henry $25,000 to not open his proposed business in the same city. Which statement is correct? A. The contract is voidable at Larry's option. B. The contract is void for lack of consideration. C. The contract is illegal and void. D. The contract is enforceable.

The contract is illegal and void.

E-mation entered into a contract with a consumer, Ezra, a recent immigrant to the United States, who spoke very little English, and had no formal education. The contract provided for Ezra to pay $2500 for a computer system. The system was worth $400. If E-mation sued Ezra for enforcement the contract, what is the most likely result? The contract is enforceable because of the Statute of Frauds. The contract is enforceable because of the parol evidence rule. The contract is enforceable because of the underlying reference rule. The contract is unenforceable because it is unconscionable.

The contract is unenforceable because it is unconscionable.

Miguel reprogrammed a cellular telephone so that the calls were improperly charged to another account. He has violated which statute?

The federal Access Device Fraud Act.

What type of contracts cannot be either contradicted or supplemented by evidence of prior agreements or expressions?

Totally integrated contracts.

Which of the following types of contracts cannot be either contradicted or supplemented by evidence of prior agreements or expressions? A. Totally integrated contracts. B. Incomplete contracts. C. Ambiguous contracts. D. All of the above.

Totally integrated contracts.

A bilateral contract is essentially an exchange of promises

True

A charge added to the unpaid balance due on a revolving charge account generally is not subject to the law of usury.

True

A claim of undue influence will be unsuccessful unless the contracting parties have a close relationship of trust.

True

A contract for the sale of goods with a price of $500 or more requires written proof to be enforceable

True

A contract in which there is no real oportunity for a party to bargain with the supplier of an esssential good is an adhesion contract.

True

A contract is essentially an agreement that creates an obligation.

True

A court may, at times, discharge a party who has not performed.

True

A court will do its best to find the intent of parties to an agreement provided that the agreement is not too indefinite

True

A covenant not to compete will be upheld only if it is reasoonable with respect to duration and geographical scope.

True

A firm offer cannot be revoked.

True

A fraudulent statement has no effect unless relied upon

True

A minor normally is permitted to disaffirm a contract for purchase of necessaries but remains liable for the reasonable value of the goods

True

A party injured by fraud generally has the choice of suing for damages or rescinding the contract

True

A person returning lost property without knowing that a reward was offered cannot sue the owner for the reward.

True

A person who has drunk too much alcohol at a party and signs a contract may be able to rescind that contract

True

A promise to make a contribution to a church is binding even though the promisor does not receive anything for the promise.

True

A properly mailed acceptance takes effect when mailed, even if it never is received by the offeror.

True

A signed letter from an employer setting forth details of an oral contract of employment satisfies the statute of frauds

True

A term of a written contract that is too vague to have a definite meaning sometimes may be ignored

True

A unilateral contract may be described as a promise for an act

True

A unilateral mistake regarding expectations or the law does not have any effect on a contract

True

A vague contract may be clarified by references in the contract to other documents or agreements

True

A wholesaler of coffee notifies Dunkin' Delight that it cannot fulfill its contractual obligation to deliver 1,000 pounds of coffee beans at the agreed upon price of $2 per pound next month because of recent price increases in coffee beans. Dunkin' Delight may treat the wholesaler as having breached the contract and sue for damages even though the wholesaler's performance is not due until next month.

True

Agreeing not to open a competing business could be consideration.

True

Alice offers to sell her car to Barry for $500, and Barry accepts. Alice's car has a market value of $1000 but this fact is unknown to alice. The contract is enforceable.

True

Amanda buys a vacuum cleaner to use in her home from retailer Andy. Amanda promises to pay for it in six monthly installment of $50 each. Any assigns the contract to Big Finance Co. who paid value and took without notice of any defense. Amanda has stopped making payments because the vacuum stopped working and Andy refuses to honor the express warranty he made to her at the time of the sale. Big Finance Co. sues Amanda for nonpayment. Generally, any defense that Amanda may have against Andy is good against Big Finance Co.

True

An agreement is illegal when either its formation or performance is a crime or a tort, or it is contrary to public policy.

True

An agreement that contemplates the performance of an act prohibited by law usually is void

True

An assignment is effective but not necessarily enforceable form the moment it is made, regardless of whether the assignor notifies the obligor.

True

An executed contract results from the complete performance by all parties of the contract.

True

An express contract may be written or oral.

True

An insurance company cannot refuse to pay the fire loss of the buyer of a house on the grounds that the sales contract for the house was not binding because it was not properly signed.

True

An option contract takes away the offeror's power to revoke an offer for the period of time specified in the option.

True

An option is itself a contract to refrain from revoking an offer.

True

Certain persons cannot make contracts that will bind them.

True

Contracts for the sale of fabric, automobiles, computers, furniture, and paper clips would all be governed by Article 2 of the Uniform Commercial Code.

True

Details of performance of a contract not expressly stated in a contract often will be implied by the court.

True

Even if part of a contract is illegal, the court may enforce a divisible, legal part of the contract

True

Forbearance may constitute consideration

True

Fraud requires that the plaintiff intend to deceive.

True

If Casey assigns her rights to receive income from the rental property to Errol, then Errol will legally acquire any rights to the income previously held by Casey.

True

If Velma, as a birthday present, assigns to Jim her contractual right to collect $50 from Wood Co., this would be a gratuitous assignment.

True

If a contract can be interpreted in two ways, one legal and the other illegal, the court will assume that the legal meaning was intended unless the contrary is clearly indicated.

True

If a merchant receives and cashes a check for partial payment of a debt and the check bears the notation that the amount is in full payment of a disputed sum, the total debt is released

True

If a transaction is tainted by fraud, the innocent party may enforce the contract and seek damages for any injuries resulting from the fraud.

True

If any party to a contract does not have contractual capacity, the contract is either voidable or void

True

If the offer does not specify a type of acceptance, the offeree may accept in any reasonable manner and medium.

True

In a bilateral contract, which is an exchange of promises, each promise is consideration for the other promise.

True

In a breach of contract action, expectation interest damages are designed to restore lost profits

True

In a composition of creditors, the various creditors of a single debtor mutually agree to accept a fractional part of their claims in full satisfaction thereof

True

In most cases, an offeree may ignore any offer.

True

In the case of merchant sellers, good faith is defined as "honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade."

True

Increasingly, parties to a contract are being required to disclose defects or conditions that are unknown to and not obvious to the other party

True

It generally is incorrect to use the phrase "illegal contract" because, if an agreement is illegal, the courts do not recognize it as a contract and the agreement is void.

True

It is necessary for an offer to be communicated by the offeror to the offeree to be effective

True

It is possible for an offeree to accept an offer silently

True

Mario's Auto Detail Shop contracts to custom paint Ruben's "67 Corvette a candy apple red. The car is stolen. Mario's can still collect for the custom paint that he purchased in order to do the job.

True

Most contracts are discharged by full performance of the agreements

True

Most types of duties may be delegated.

True

Once a contract has been affirmed, it no longer can be avoided

True

One promise may serve as consideration for many return promises

True

Ordinarily, a court will not consider whether a contract is fair or unfair

True

Ordinarily, every party to a contract is presumed to have contractual capacity until the contrary is shown

True

Past benefits already received by a promisor cannot be consideration for a later promise.

True

Promises made in consideration of marriage must be in writing to be enforceable.

True

Quasi contracts do not arise from mutual agreement by the parties but are imposed by courts to avoid unjustly enriching a party at the expense of another.

True

Raul agrees to paint Mike's house for $1,000. Before finishing, Raul states it is too hot to finish, and Mike offers to pay $1,200 if Raul finishes. Mike's statement that he will pay $1,200 is unenforceable.

True

Revocation normally must be communicated to the offeree before acceptance or else it will be inneffective

True

Roller Rides Inc. contracted to build an amusement ride for Canobie Lake Park. The contract specified that the ride was to be completed, tested and fully operational by May 31st, the day before the opening of the Park. The contract stated "time is of the essence." Roller Rides Inc. encountered design delays and the ride was not ready on May 31st. Roller Rides Inc. is liable for breach of contract

True

Some states impose a duty on a minor who dissafirms a contract to restore the adult party too the position that he or she held before the contract was made

True

Spencer, AGE 18 an adult of sound mind, has the legal capacity to contract.

True

The appointment of a guardian for an insane person does not avoid a contract made by the person the day before the guardian was appointed

True

The parol evidence rule does not apply to changes made after the signing of the contract.

True

The parol evidence rule generally excludes words spoken before or at the time a written contract was executed from contradicting the terms of the contract. Answer

True

The parol evidence rule is based on the theory that either there never was an oral agreement or, if there was, the parties purposely abandoned it when they executed their written contract.

True

The past performance of the parties under a continuing contract is important in determining what the contract means

True

The principle behind the quasi contract is to prevent unjust enrichment.

True

There is a growing trend to treat fine print as not binding on the injured party without regard to whether fraud was involved. Answer

True

To create an offer, an offeror must intend, or it must appear that the offeror intends, to be bound to a contractual relationship.

True

Under a contract, Danielle is required to make a set of draperies out of fabric chosen by the homeowners, the Flynns. After Danielle makes the draperies according to the contract requirements, her duties under the contract are discharged.

True

Under a contract, Danielle is required to paint a room with paint chosen by the homeowners, the Flynns. After Danielle paints the room according to the contract requirements, her duties under the contract are discharged

True

Under the objective theory of contracts, the intention to enter into a contract is judged by outward, objective facts as interpreted by a reasonable person.

True

Undue influence will typically arise in situations in which there is some sort of family or fiduciary relationship between parties.

True

Vernon suffers from a mental impairment due to a brain injury from a motorcycle accident. He contracts with Glena to purchase her dining room furniture. A month later, he tries to void the contract. If he is unable to return the furniture, a court will not rescind the agreement unless Vernon can show that Glena acted in bad faith.

True

When a nationally known neurosurgeon in Chicago, Illinois, sells her practice, the contract may specify that the seller will not practice within a 100-mile radius of Chicago for one year.

True

When both parties are mistaken as to the same material fact, the contract can be recinded by either party.

True

When one of the parties to a contract has no knowledge or any reason to know that the contract of illegal, a court may allow the party to recover benefits conferred in a partially executed contract

True

The main difference between the UCC requirement for a writing for a contract for the sale of goods and the common law is that the:

UCC does not require all the terms of the agreement to be in writing

A(n) _____________ contract is one that is technically valid, but a legal reason prevents the courts from enforcing it. a. Valid b. Voidable c. Void d. Unenforceable

Unenforceable

The United States and Singapore have signed the Convention on Contracts for the International Sale of Goods (CISG). Notren, Inc., a U.S. company, and SWT, a Singapore company, have entered into a contract under which SWT is to ship party supplies to Notren. One of the terms of the contract states, "The validity and performance of this contract will be governed by the Uniform Commercial Code (UCC) of the state of New York, not the Convention on Contracts for the International Sale of Goods (CISG)." The contract will be governed by the:

Uniform Commercial Code of New York.

Joe tells Mike that he will give him $1500 to paint the exterior of his home on Friday. Mike is not promising to do it; if he can, he will do it, if he can't, he won't. What type of contract is this?

Unilateral contract

In the historic case of Hamer v. Sidway, the nephew: a. lost, as there was no consideration. b. lost, as the uncle was dead. c. won, as there was consideration. d. won, as there was a completed gift.

Won, as there was consideration.

In January, Alex promised to pay Y-K Inc. $5,000 if it would refrain from filing suit against him on a breach of contract action. Y-K agreed and accepted a $5,000 check from Alex. Which of the following statements is correct? a. Y-K's promise to refrain from suing Alex was not supported by legal consideration. b. Y-K's promise to refrain from suing Alex was supported by legal consideration and is enforceable. c. This is an accord and satisfaction, and Y-K cannot sue. d. The courts would apply promissory estoppel in this situation.

Y-K's promise to refrain from suing Alex was supported by legal consideration and is enforceable

Parker offers to sell his diamond earring to Kate. Lawrence overhears the offer and says, "I accept the offer." Can Parker still revoke this offer under these circumstances? a. Yes b. No

YES/TRUE

Aunt Bea promises her 21-year old nephew, Opie, that she will pay him $500 if he will agree to quit smoking pot, even though Opie has a valid prescription for the drug. Under these circumstances, can Opie's agreement to quit smoking pot be consideration? a. Yes b. No

Yes

Central Maine Power Co. made a promotional offer in which it promised to pay a substantial sum to any homeowner or builder who constructed new housing heated with electricity. Motel Services, Inc., which was building a small housing project for the city of Waterville, Maine, decided to install electrical heat in the units in order to qualify for the offer. It built the units and requested payment for the full amount of the promotional offer. Is Central Maine obligated to pay? Why or why not?

Yes, CMPC is obligated to pay, because this was a unilateral contract and MSI performed

Hardhat Machine Company sold goods to Irish Eyes Company of Northern Ireland. Big Bank issued a letter of credit on behalf of Irish Eyes and the letter was given to Hardhat. The documents required by the letter of credit are presented to the bank for payment while the goods are still in transit. Is Hardhat entitled to be paid?

Yes, the letter of credit is a promise by the bank to pay when certain documents are presented.

If a foreign company "dumps" goods on the United States market:

a "dumping duty" will be imposed on the dumped goods if the Commerce Department determines the goods are being sold at less than fair value and that this harms an American industry.

Which of the following is not illegal?

a "giveaway" to every tenth person entering a department store

Which of the following is not a necessary element of promissory estoppel?

a bargained-for exchange

Mary contracted to buy 100 table lamps. Under the terms of the agreement, Mary is to pay for the lamps upon delivery. This is an example of:

a concurrent condition.

The Hardys decide to sell their farm and send out a flyer describing the location, the acreage, and the price. Laurel responds with a letter of "acceptance." Laurel and the Hardys have a-no contract because the letter was an invitation to negotiate b-no contract because the Hardys sent a letter to more than one party c-a contract if, under the circumstances, a reasonable person would believe that the Hardys were making an offer to sell the farm d-none

a contract if, under the circumstances, a reasonable person would believe that the Hardys were making an offer to sell the farm

executed contract

a contract in which all parties have fulfilled their obligations

Executory Contract

a contract in which one or more parties has not fulfilled its obligations

In the case of Worldwide Insurance v. Klopp, the Supreme Court of Delaware found that: A) a contract provision requiring arbitration and then permitting appeal by either party was void as unconscionable. B)the contract provision requiring arbitration was clear, unambiguous, and fair to both parties. C)the arbitration clause in Klopp's auto insurance contract was valid because it furthered the state policy favoring the use of arbitration to resolve disputes. D)the automobile insurance policy was governed by UCC, Article 3

a contract provision requiring arbitration and then permitting appeal by either party was void as unconscionable.

Keith offers to sell his home to Debbie for $80,000. Debbie replies, "your price is too high. I will offer to purchase your home for $70,000." Debbie's response is a- a counteroffer b-a rejection of the original offer only c-the creation of a new offer only d-none

a counteroffer

An unliquidated debt can be described as: A. a debt in which both its existence and amount is in dispute. B. a debt in which the existence or amount is in dispute. C. a debt disputed by the debtor but not the creditor. D. a debt undisputed by either party.

a debt in which the existence or amount is in dispute.

An example of the type of relationship required to find undue influence would be:

a doctor-patient relationship

Susan took out a life insurance policy on herself, paying all of the premium payments. She names her daughter, Jessica, as the beneficiary under the policy. Jessica has not given anything in consideration for the policy. Jessica is: a) a donee beneficiary who has rights to enforce the policy once Susan dies. b) a creditor beneficiary who has the rights to enforce the policy once Susan dies. c) an incidental beneficiary because Jessica did not give any consideration for the policy and therefore cannot enforce the policy even when Susan dies. d) None of the above.

a donee beneficiary who has rights to enforce the policy once Susan dies.

A spouse who is named the beneficiary of a life insurance policy would ordinarily be: a) a creditor beneficiary b) an incidental beneficiary c) a donee beneficiary d) a debtor beneficiary

a donee beneficiary.

Ted, a minor, signs a contract to purchase a bicycle from Fred, the woner of the shop. Ted's right to disaffirm the contract a-gives Fred the right to disaffirm the contract b-is not valid because the bicycle is a "necessary" c-does not alter the fact that Fred is bound by the contract d-requires Fred to deal with all minors

does not alter the fact that Fred is bound by the contract

Janet tries to start her new car with no cuccess. She yells in desperation that she would seel the car to anyone for $100. Bill, a passerby, hands Janet $100. Bill's act a-constitutes a valid acceptance b-constitutes a valid acceptance only if Janet and Bill already know each other c-doesn't constitute a valid acceptance, unless Bill is a car dealer d-doesn't constitute a valid acceptance, because janet does not seriously intend to sell the car

doesn't constitute a valid acceptance, because janet does not seriously intend to sell the car

Bob signed an agreement with Joe under which Bob agreed to purchase all the hay that Joe grew during the coming growing season. This contract will be: a. unenforceable due to its vagueness. b. unenforceable due to the difficulty of de-vising an appropriate remedy for a breach. c. enforceable as long as both parties act in good faith and Bob doesn't suddenly de-mand more hay than what was reasonably estimated. d. unenforceable unless state real estate law makes an exception.

enforceable as long as both parties act in good faith and Bob doesn't suddenly de-mand more hay than what was reasonably estimated.

Tuan is president and sole shareholder of Entertainment, Inc. Entertainment, Inc. wishes to borrow money, but to do so, the bank requires Tuan to orally agree to pay the debt of the corporation if Entertainment, Inc. cannot. Tuan's guarantee to repay is: A. enforceable under the parol evidence rule. B. enforceable because there is an insurable interest. C. enforceable because of the leading object rule. D. unenforceable because it is a collateral promise.

enforceable because of the leading object rule.

Robin and Bellman, both merchants, orally agree to a contract for the sale of $5000 of accessories. Bellman, the buyer, sends to Robin, the seller, a written confirmation of the sale, which is sufficient against Bellman under the statute of frauds and which Bellman signs. Robin does not sign. Robin fails to perform the contract and does not ship out the goods. Bellman sues. This contract is:

enforceable even without Robin's signature because both parties are merchants

A promise by Derkin Restaurants to buy all of the produce it needs this next year at an established price from Elfredo's Produce would be an: a. enforceable requirements contract. b. enforceable output contract. c. unenforceable, illusory contract. d. unenforceable promise based on past consideration.

enforceable requirements contract.

An agreement to pay a lesser amount to settle an unliquidated debt is: A. enforceable, as there is consideration. B. unenforceable, as there is no consideration. C. enforceable in only some states. D. unenforceable as a violation of public policy.

enforceable, as there is consideration.

Willis and Leslie orally agree to the sale of a parcel of land for $50,000: one-half payable now as a down payment; one-half payable in 30 days at the time of closing when the title will be transferred. The buyer, Willis, is to have possession immediately. Willis pays Leslie $25,000, takes possession of the land, and starts building a house. At the time of closing, Willis has made a substantial beginning on the house. However, Leslie refuses to transfer the title, claiming the oral contract is not enforceable. This contract is:

enforceable, because Willis has partially performed the oral contract and made improvements on the land.

Illegally obtained evidence is not permitted to be used at a criminal trial based upon the:

exclusionary rule

A gambling contract is legal unless it is specifically prohibited by state statute.

false

A party may make either an assignment or a delegation, but cannot make both an assignment and a delegation simultaneously.

false

A party to a contract has a duty to investigate the other party's factual statements.

false

Alice signs a contract with Bob to buy Bob's house for $150,000, with the clause, "if I am able to obtain a mortgage loan for $125,000, at no more than 7% interest, payable over 15 years." Assume that Alice tries but is unable to obtain the described loan, and therefore refuses to proceed with the purchase. Alice is in breach of the contract.

false

Assume that Jessie and Lester have formed a contract whereby Jessie agrees to deliver 10,000 dozen "Grade A Large Eggs" to be shipped in recycled paper cartons. A shortage of paper makes paper cartons much more expensive, so Jessie uses styrofoam cartons and ships the eggs. Lester is entitled to cancel the contract based on this deviation of terms in the contract.

false

Barbara, a skilled welder, was hired at Mainco Enterprises for a welding position. Steve, a recent graduate with few job skills, was also hired and was expected to develop general skills on the job. Both were asked to sign noncompete clauses limiting future employment if they left Mainco. A court would be very likely to enforce the noncompete clauses unless the time or geographic restriction is unreasonable.

false

Billy owes a liquidated debt of $3000 to Rayna, his personal weight trainer. Billy sends Rayna a check for $300 on which he has marked, "Payment in Full." If Rayna cashes the check she will not be able to successfully sue Billy for the remainder of the debt.

false

Claims for personal injury are generally assignable.

false

Concurrent conditions arise when there is both a condition precedent and a condition subsequent.

false

Expectation interest can best be described as money spent in reliance upon the agreement.

false

Generally, neither a "time is of the essence" clause nor a "force majeure" clause will be recognized by the courts because these types of clauses are seen as a violation of public policy.

false

If a court finds as a matter of law that a clause of a contract (EX: SUPERIOR SIDING) was unconscionable at the time the contract was made, the court must refuse to enforce the contract.

false

In negotiating the purchase of a vehicle, the sales representative told Karla, "I guarantee that you will be personally satisfied with this car." The guarantee was written on the contract when Karla purchased the car. If a controversy arises over Karla's satisfaction, the court will apply a subjective standard, which means Karla's judgment must be reasonable.

false

Marvin contracts with House Painters R Us to paint the interior of his house lemon yellow throughout. The total contract price is $7,000. House Painters R Us's anticipated profit on the job is $4500. If Marvin breaches the contract before House Painters R Us has begun work on the job and has not incurred any expenses, then its damages will be $7000

false

Most contracts are discharged by mutual agreement of the parties.

false

Nominal damages are awarded in contract cases in which a damage amount was named in the contract.

false

Pushy Pat, a persuasive salesman, talked Nice Nancy into purchasing something she didn't really need or want. Nice Nancy may rescind the contract because of undue influence.

false

Ramona, age 42, orally agreed to work for Brahma, Inc. for the rest of her life for $50,000 per year. This agreement would not be enforceable since it violates the one-year rule of the statute of frauds.

false

Sweet Plantation, Inc. made a written contract with Candy, Inc. whereby Sweet Plantation agreed to supply all of Candy's sugar requirements for the next year at $.25 per pound. A dispute arose as to how much sugar Sweet is to supply. The parol evidence rule will bar Sweet's introduction of evidence concerning the intent of the requirements of Candy

false

The age of majority to contract in all states is 21.

false

The statement, "You will have a job with Snelling & Snelling as long as you complete your degree in business administration this May" does not create a condition because it does not include the phrase "provided that."

false

Whittle sent an order over the Internet for a $1,200 garage door. His name keyed onto the order will only be effective as a signature sufficient to create a "writing" "signed by the party against whom enforcement is sought" if he follows up with a signature on paper.

false

a landowner's highest duty of care is owed to licensees

false

a sales clerk at neilsons deparment store observed a customer remove some red lipstick from a display case and put it in her purse. if necessary to stop the shoplifter from fleeing, neilsons sales clerk can go as far as to tackle the customer in order to stop her from fleeing.

false

barbara offers to buy taylor's business law textbook. taylor is the offeror.

false

for purposes of tort law, a licensee is a person invited upon land as a member of the public or for a business purpose.

false

legally sufficient considering to support a contract means that the value of what the first party to the contract receives under it is comparable to what he or she gives to the second party.

false

the performance of a pre existing contractual duty which is neither doubtful nor the subject of an honest dispute is legally sufficient consideration to support a second contract.

false

Mulcare Corp. started a compliance program to prevent and detect criminal conduct within the company and had specific, high-level officers in charge of overseeing the program. The company effectively communicated the program to its employees and monitored those employees who were in a position to cheat. It promptly disciplined anyone who broke the law. One effect of having this program is:

federal investigators might be convinced to limit any prosecution to those directly involved rather than attempting to get a conviction against high-ranking officers or against the company itself.

An offer of a reward for the arrest and conviction of a criminal is an example of:

a unilateral contract

John offers to pay Mary $100 if she walks across the Bridge. Mary can accept the offer only by walking across the bridge. If mary walks across the bridge, she and John will have formed a-a bilateral contract b-a unilateral contract c-a performance contract d-a surety contract

a unilateral contract

An assignment is valid and enforceable against all parties: a) from the moment it is made. b) from the moment the assignor notifies the obligor. c) from the moment the assignee notifies the obligor. d) from the moment the obligor is notified from any source.

from the moment it is made.

A rock group assigns its payment under a performance contract to the Costume Shop, a business that has supplied the group with outrageous stage outfits, and to which the group owes a great sum of money. This is: a)a valid assignment because of the rule of freedom to contract. b) a valid assignment because this is a simple transfer of the right to receive money. c) an invalid assignment because it increases the burden of the payor. d) an invalid assignment because this is a personal service contract.

a valid assignment because this is a simple transfer of the right to receive money.

If an offeree accepts an offer before it is effectively revoked

a valid contract is formed

When Mohammed was hired by Pomico, Inc., he signed the following agreement, "Upon termination of my employment with Pomico, I agree not to work for a competing company within 30 miles of Pomico's headquarters for one year." This agreement, important to protecting secret information developed in the employer's business, is: A)an unenforceable exculpatory agreement. B) an unenforceable usurious agreement. C)an enforceable bailment agreement. D)an enforceable agreement not to compete.

an enforceable agreement not to compete.

Reformation is:

an equitable remedy/UNCOMMON

Jerry offers to shovel the snow from Ben's driveway for $35. Ben replies "OK." This is an example of: a. an implied, unilateral contract. b. an express, unilateral contract. c. an implied, bilateral contract. d. an express, bilateral contract.

an express, bilateral contract.

A rock group assigns its payment under a performance contract to the Costume Shop, a business that has supplied the group with outrageous stage outfits, and to which the group owes a great sum of money. Under this arrangement the rock group is the: a) assignor. b) assignee. c) delegator. d) delegatee.

assignor.

Brandon orally assigned his right to $100 from a law mowing contract to Will as a gift. This assignment is: a) not valid because it was not in writing b) valid even though it was oral and there was no consideration from Will. c) irrevocable once Brandon has told Will about the gift. d) not valid because Will gave no consideration for the assignment.

b) valid even though it was oral and there was no consideration from Will.

what are the two basic elements to consideration?

bargained-for exchange legal sufficiency

The elements of a contract include all of the following except

an illegal purpose

Marco agrees to sell Clowns R Us some balloons. The contract states that Clowns may buy as many balloons as it wishes. This agreement is: a. a requirements contract. b. an output contract. c. an illusory contract. d. an enforceable contract.

an illusory contract.

Which of the following will support a contract? a. an illusory promise b. giving a return promise c. past consideration d. a pre-existing public obligation

an illusory promise

"I'll sell you my car if I decide to sell it" is an example of: A. a conditional offer. B. an unliquidated offer. C. a unilateral contract. D. an illusory promise.

an illusory promise.

In breach of the partnership agreement, Trimble, a partner in the partnership of Morris, Newt, and Oppie, Ltd. quits the partnership and goes to work for a competitor. The former partners may ask the court for:

an injunction to prevent Trimble from working in competition with the former partners

Betty visits a grocery store in which she has an open account, holds up an apple so that the clerk can se it, acknowledges the clerk's nod, and pockets the apple knowing that she will be billed for it at the end of the month. bettery has formed a-an inplied-in-fact contract b-a quasi contract c-a bilateral contract d-a unilateral contract

an inplied-in-fact contract

Vicki entered into a written contract to buy a car from Valley Motors. The written contract included a provision that stated, "This writing is the full and final expression of the parties' agreement; anything said before signing or while signing is irrelevant." This is:

an integration clause

Ethel's Exercise World plans to order three weight machines from Pete's Push, Pedal and Pull, Inc. for a total of $15,000. Pete's demands that Ethel's friend, Moneybags, a wealthy independent businesswoman (not connected with Ethel's business in any way) promise to pay Pete's for the three machines if Ethel's Exercise World does not. Which of the promises in this problem must be in writing to be enforceable?

both Moneybag's promise and Ethel's Exercise World's promise

Don was standing in a cafeteria line holding a plate. Tim was upset with Don. Tim turned Don around and grabbed the plate out of Don's hand. Tim then held the plate up and threatened to break it over Don's head. Tim has committed

both an assault and a battery.

To have a contract you must have:

both an offer and an acceptance

Tyler offers to buy a laser printer, with a case of paper and an extra certridge, from Rico for $200. If Rico says, "OK, but no paper and no extra cartridge," he will be deemed to a-accept the offer b-reject the offer c-make a counteroffer d-both b and c

both: reject the offer & make a counteroffer

The doctrine of quasi contract a- can only be used if there is an actual contract covering the area in controversy b-cannot be used if there is an actual contract covering the area in controversy c-can be used whether of not there is an actual contract covering the area in controversy d-none

cannot be used if there is an actual contract covering the area in controversy

Mercury Motors inadvertently mixes up a work order on Peter's car. Peter brought the car in to have the tires rotated. Mercury tuned up the motor by mistake, conferring a benefit on Peter. If Mercury Motors insists that Peter pay for the price of the tune-up, Mercury Motors:

cannot recover its expectation interest because there was no enforceable agreement

what are examples of tort reform?

caps on non-economic damages shortened statuses of limitations for doctors and hospitals limitations on punitive damage awards

As set forth in the Restatement Second of Contracts, which of the following duties are imposed on the parties in the performance and enforcement of a contract?

good faith; fair dealing

Ned contracts to sell his boat to Larry. Larry builds a dock behind his house in which to keep his boat. Ned's subsequent attempt to cancel the contract will a-not be effective because Larry has detrimentally relied on Ned's offer b-not be effective because Larry may not be able to obtain a similar boat for a similar price elsewhere c-be effective because Ned did nothing to encourage Larry to build a dock d-be effective because Ned wants to sell the boat to someone else

not be effective because Larry has detrimentally relied on Ned's offer

Under the modern-day view, an offer that can only be accepted by completion of a specific act can a-be revoked prior to completion of performance b-not be revoked once the performance has begun c-not be revoked once the promise indicated that he will perform d-none

not be revoked once the performance has begun

When there is no consideration for a promise, the agreement is

not binding

Ordinarily, a promise to perform an existing legal obligation is:

not consideration

Stan offers to buy a house from Kay for less than Kay paid for it because he would "hate to see anything bad happen to her family." Kay agrees to sell. Regarding this agreement, a court would likely A-enforce it B-rescind it C-order the parties to renegotiate it D-not enforce it

not enforce it

George and Martha enter into an oral contract for a sale of George's office building. Before Martha takes possession, this contract is A-enforceable by George only B-enforceable by Martha only C-enforceable by neither party D-not enforceable

not enforceable

If Becky promises not to drink alcohol until she becomes a legal adult in exchange for Ben's promise of $1,000, the agreement is: a. enforceable because Becky is giving up the right to do something she would otherwise be entitled to do. b. enforceable because the agreement accomplishes Ben's goal of keeping Becky from drinking. c. not enforceable because Becky does not have a legal right to drink alcohol. d. not enforceable because Becky is a minor and could disaffirm the contract.

not enforceable because Becky does not have a legal right to drink alcohol.

Hubert promises to give Jane $500 because she does not have as much money as other people. Hubert's promise is, a-enforceable because society wishes to encourage people to keep their promises b-enforceable because the redistribution of wealth is a vlid social objection c-not enforceable because Jane has not given any consideration in return d-not enforceable because Hubert could have given he more money

not enforceable because Jane has not given any consideration in return

Jane promises to pay her secretary $1,000 in consideration of the services the secretary provided over the years. Jane later renegs on the promise. jane is a-liable for payment of $1000 b-liable only if the promise was written c-not liable because the consideration was in the past d-not liable because the consideration was accidental

not liable because the consideration was in the past

Jones offers to sell Flint his bicycle. Before accepting the offer, Flint learns that the bicycle has been sold to Bond. jones is a-liable to Flint for breach of contract b-not liable because the sale of the bicycle revokes the offer made to Flint c-not liable, only if he provides an acceptable substitute to Flint d-liable to Bond and Flint for breach of contract

not liable because the sale of the bicycle revokes the offer made to Flint

Harry takes his canary to Dr Power for surgury on a broken wing. Power says thay the wing should be fully healed within a week. The wind does not heal within a week. Power is a-not liable for breach of contract because the statement was an opinion b-not liable for breach of contract but Harry is excused from paying the bill c-not liable for breach of contract because the repair of the wing is not propper subject matter for contract d-liable for breach of contract

not liable for breach of contract because the statement was an opinion

Ken, an unmarried 17 year old, signs a contract to sell his car to the Ragal Used Car co. Ken receives a better offer the next day from another car dealer and accepts the new offer. ken is a-liable on the contract with Ragal and must sell it a car of comparable value b-liable on the contract with Regal and must sell it his car c-not liable to regal because he is a minor d-not liable to Regal because the sale of the car disaffirmed their contract

not liable to Regal because the sale of the car disaffirmed their contract

Tyron purchased a vacant lot and entered into a contract with BZ Inc. to construct a shopping center on the site. Douglas heard about this contract and built a restaurant on an adjoining piece of property because of the planned shopping center. Tyron was unable o raise the necessary capital and was unable to perform the contract with BZ, Inc. Douglas sued Tyron for breach of contract as a third party beneficiary. Douglas will probably: a) win a third party creditor beneficiary. b) win a third party donee beneficiary. c) lose as a third party incidental beneficiary. d) lose as a third party creditor beneficiary.

lose as a third party incidental beneficiary.

Larson entered Forrester's Auto Mart to purchase a used car. Larson found a vehicle with a sales price of $11,000. After Forrester answered all of Larson's questions, Forrester and Larson agreed to a sale. As Larson was leaving to get the money to pay for the car, Forrester told Larson that Robert Redford formerly owned the car. Larson later learned that Robert Redford had never owned the car. If Larson seeks to rescind the deal, Larson will:

lose because he will not be able to prove reliance on the misrepresentation.

John owns a thoroughbred horse named Prince Charming that just ran in the Kentucky Derby. Prince Charming came in last, much to John's frustration and embarrassment. John exclaims in a loud voice, "I'm selling that horse to the first person who hands me $100 bucks!" John has: a. made an offer to anyone within hearing distance and will be bound by his offer to the first person who produces $100. b. made a firm offer and will be bound by his offer for a reasonable period of time. c. made an acceptance to the first person who can produce $100. d. not made an offer because under the cir-cumstances a reasonable person would not conclude that John had intent to make an offer.

not made an offer because under the cir-cumstances a reasonable person would not conclude that John had intent to make an offer.

Renita, a merchant, has received a signed, written confirmation from Merchants, Inc. referring to goods she had not ordered. Renita should:

object to the confirmation in writing within 10 days.

A contract most likely will be declared unconscionable if: A. it is unfair to one party. B. it contains a cancellation clause. C. it is oppressive and the weaker party did not fully understand the consequences of the agreement. D. it is signed by a minor.

it is oppressive and the weaker party did not fully understand the consequences of the agreement.

In a tort case:

it is up to the injured party to seek compensation.

The most accurate statement regarding economic duress is:

it may be grounds for rescission

what can terminate an offer?

lapse of time destruction of subject matter subsequent illegality revocation

Statutes of limitations: A. define how much money the injured party can sue for under a breach of contract claim. B. define whether there has been substantial performance of a contract or a material breach. C. limit the time in which an injured party may sue. D. only apply to the sale of goods. There is no statute of limitations on a service contract.

limit the time in which an injured party may sue.

Johann, a well-known musician, agrees to give ten guitar lesson to Elton from $2,000. Nothing in the contract itself prohibits a delegation. If Johann delegates his obligation to Eugene, a second-year musical student and enthusiastic guitar player, then the delegation will probably be: a) permitted because contracts may be freely delegated. b) permitted because the contract is just for music lessons. c) prohibited because the contract is for service from a specific person. d) prohibited by the UCC because this is a sale of services.

prohibited because the contract is for service from a specific person.

Which of the following promises ordinarily must be in writing to be enforceable?

promises made as a part of a prenuptial agreement, the agreement to sell a car for $1500, the promise by an executor of an estate to pay a debt of the decedent, all of the above (all of the above)

As English judges were developing the common law of contracts in the twelfth and thirteenth centuries: a. most promises were found to be enforceable. b. promises were found not binding unless written and sealed. c. the term "contract" became common. d. changes in the law occurred rapidly.

promises were found not binding unless written and sealed.

Parol evidence may be admissible to

prove the modification or termination of a contract

Zebra Toy Company invests a large sum of money in retail stores located in a foreign country. Zebra intends to bring its foreign earnings back home to the United States. This practice is known as:

repatriation of profits.

Fred purchased a Cheapp Lawnmower because the Cheapp Company salesperson intentionally misled him by assuring him that the mower was self-propelled, mulched, and had a five-year unlimited manufacturer's warranty. When Fred finds out that his new Cheapp Lawnmower is not self-propelled, does not mulch, and has a 90-day warranty, he may successfully sue for:

restitution and possibly punitive damages

Larry purchased a Leisure Lawnmower because the company salesperson intentionally misled him by assuring him that the mower was self-propelled, had a mulching feature, and had a five-year unlimited manufacturer's warranty. When Fred finds out that his new Leisure Lawnmower is not self-propelled, does not mulch, and has a 90-day warranty, he may successfully sue for:

restitution and possibly punitive damages

When a judge orders a criminal defendant to reimburse the victim, it is called:

restitution.

Mary owes $3,800 on her credit card. She sends the credit card company a check for $800 with the notation "payment in full" on the check. If the credit card issuer cashes the check: a. Mary's balance will automatically be paid in full if the $3,800 amount was a liquidated debt. b. Mary's balance will automatically be paid in full regardless of whether the amount of $3,800 was liquidated or unliquidated. c. the check may be subject to a UCC exception to the general rules for accord and satisfaction cases involving checks. d. Mary's balance will automatically be paid in full if the $3,800 amount was an unliquidated debt.

the check may be subject to a UCC exception to the general rules for accord and satisfaction cases involving checks.

John enters into a contract to paint Chad's house. When Chad decides on a color, John will buy the paint and paint the house for the price of $2,500. This contract is governed by: a. the common law of contracts governs because this is a mixed contract (one for services and goods). b. the common law of contracts governs because the predominant factor of the contract is for the sale of services and not goods. c. the Uniform Commercial Code governs because a sale of goods is involved. d. both the common law and the Uniform Commercial Code will govern this contract.

the common law of contracts governs because the predominant factor of the contract is for the sale of services and not goods.

Brahma entered into an oral agreement to sell 50 jet skis to Summer Sports. Brahma delivered 20 of the skis on May 1. On June 1, Summer Sports notified Brahma that it will not honor the agreement. Which statement is correct?

the contract is enforceable for 20 jet skis

If Morales and Rolfes Supply negotiate for the purchase and sale of a supply of fuel for a three-year period for Morales' business: a. the contract may indicate a method for de-termining the price, without stating a defi-nite price. b. Morales and Rolfes must depend on the UCC's gap-filler provisions to determine a price since the fuel is a "good" covered by Article 2 of the UCC. c. the contract price must remain the same for the entire three-year contractual period. d. their contractual requirements regarding definiteness would be the same under the UCC and the common law.

the contract may indicate a method for de-termining the price, without stating a defi-nite price.

A contract is created by which the terms are stated to be for consideration in the amount of $3,000. If typewritten in the contract is the term "Four thousand dollars," while the amount of $3,000 is printed within the form:

the contract will be interpreted to be for $4,000.

Which of the following is an example of incidental damages you might be awarded if you are wrongfully terminated from your job?

the costs of mailing resumes to prospective employers

Ralph is a professional football player. He signs a valid contract with the Jets. Later, the Giants offer him more money, so he signs a contract with them. If the Jets sue Ralph, the most likely result would be?

the court will enjoin Ralph from playing with any team other than the Jets

All of the following statements refer to an element of fraud except:

the defendant desired to obtain a financial benefit

Solomon breaches his contract with Neal to purchase the 500 pairs of socks he had promised to buy. Neal is able to sell the 500 pairs to Renny for a much lower amount. Neal then sues Solomon for damages. Neal will be able to recover:

the difference between Solomon's contract price and the amount paid by Renny.

In a unilateral contract, the consideration for the promise is:

the doing of the act called for by the promisor

Oxtron, Inc. substantially performed its obligations under a service contract. Oxtron is entitled to receive:

the full contract price minus the value of the defects

Rudy's Plumbing substantially performed a plumbing contract with Donald Trump. Rudy's Plumbing will receive

the full contract price minus the value of the defects

The status of a third party is determined by: a) the type of contract. b) whether the third party gave consideration c) the reasonable expectations of the third party d) the intent of the contracting parties.

the intent of the contracting parties.

Claude agrees to lease his house to Irvin for nine months, the lease to begin six months from the signing of the contract. Under the statute of frauds:

the lease is required to be in writing because of the one-year rule

If an offer specifies no time limit in which to accept: a. the offeree has 30 days to respond. b. the offeree has 10 days to respond. c. the offer is not valid and therefore it does not matter when the offeree responds. d. the offeree has a reasonable period during which to accept.

the offeree has a reasonable period during which to accept.

A person unable to read is bound by signing a paper without obtaining an explanation of it, unless:

the other contracting party knows of the signer's disability

An oral understanding is not binding if:

the parties intended to formalize their understanding with a written agreement.

When ambiguities appear in a contract, they will be construed against a-the party with the greater bargaining power b-the promiser c-the promisee d-the party who drafted the contract

the party who drafted the contract

Regency Construction placed an order for two hundred 2 x 4s from Lumber Jack. If the place of delivery and time for shipping the goods are not specified, the UCC provides: a. the place of delivery is Lumber Jack's and the time for delivering the lumber is a rea-sonable time based on normal trade prac-tice. b. the place of delivery is Regency Construc-tion and the time for shipping is within 30 days. c. the place of delivery is Lumber Jack's and the time for delivering the lumber is within 30 days. d. there is no contract because having more than one open term made the offer too in-definite.

the place of delivery is Lumber Jack's and the time for delivering the lumber is a rea-sonable time based on normal trade prac-tice.

Which of the following is NOT a true statement about fraud?

the plaintiff must show that although the defendant acted in good faith, the statement was material because the defendant expected the plaintiff to rely on it and enter into the contract

In the Schauer v. Mandarin Gems of California, Inc. case, the court held: a) the plaintiff was entitled to proceed with her contract claim against the jeweler because the jeweler must have understood that she was an intended beneficiary of the sales contract. b) both of the contracting parties must intend to benefit the third party to create a right to sue in the third party. c) a specific manifestation by the prmisor of an intent to benefit the third person is required to create a third party beneficiary contract. d) the plaintiff was a donee beneficiary and, as such, she had no right to use.

the plaintiff was entitled to proceed with her contract claim against the jeweler because the jeweler must have understood that she was an intended beneficiary of the sales contract.

The intent required to commit a burglary would be:

specific intent.

ke entered into a contract with Coins-R-Us to purchase a rare coin. When Mike tndered payment, Coins-R-Us refused to give him the coin, and perform their part of the contract. If requested, the court will grant

specific performance

under a state law, the owner of certain specified vicious breeds of dogs is absolutely liable to any person who is injured by the dog. this is an example of a. negligence per se b. res ipsa loquitur c. strict liability d. negligence

strict liability

A contract voidable because of capacity may only be canceled by the party lacking capacity.

true

Amanda, a recent university graduate, needed a car to get to her new job. To help Amanda secure a loan for the car, Ted, a friend, agreed to pay the loan should Amanda default. Ted's promise to pay the loan is a collateral promise. His promise must be in writing to be enforceable.

true

An illusory promise is not consideration.

true

Banner enters into a contract with Sylvia to buy her house for $150,000. Sylvia decides later not to sell because she is so emotionally attached to the house. Banner insists that he is entitled to the house. Banner can successfully sue for specific performance.

true

Boris sky dives out of a plane and gets hung up in a tree, hopelessly suspended and swinging precariously in his parachute from the branches of the tree. Natasha sees that he is in trouble and comes to his rescue. Once Boris is safely on the ground, he gratefully promises to give Natasha half of his life savings account. When he changes his mind, Natasha will probably be unsuccessful in enforcing his promise.

true

Carswell, a contractor, enters into a contract with Helen, a homeowner, to remodel her bathroom. The contract provides a specific completion date. The contract provides that if Carswell does not have the job finished by the date, Helen may deduct $200 per day from the contract price until the job is finished. This is an example of liquidated damages.

true

Contract prohibitions against assignments are invalid as a matter of public policy.

true

Damages must be estimated with reasonable certainty

true

Ernest operates an ice cream stand during the months of May, June, July, and August. Ernest's ice cream machine is broken and needs a new part to run. He contracts to have the part shipped to him by special carrier. Ernest emphasizes that the part needs to be delivered by April 25 and the carrier agrees, knowing that Ernest intends to open his stand May 1. If the shipper fails to deliver the part on April 25, Ernest will be able to recover consequential damages caused by the delay.

true

Frank suffers from a mental impairment due to a brain injury from a airplane accident. He contracts with Glena to purchase her dining room furniture. A month later, he tries to void the contract. If he is unable to return the furniture, a court will not rescind the agreement unless Frank can show that Glena acted in bad faith.

true

Generally, the assignment of the obligation to perform personal services is invalid.

true

Hilda owes Lex $3,000, which is an undisputed amount. If she offers him her car in full settlement of the debt and he accepts, the agreement is binding and he can no longer claim she owes him anything on the original debt.

true

If a minor can cancel a contract, it can be done at any time during minority or within a reasonable time after reaching majority.

true

In many states it is illegal to lend money to help someone gamble.

true

John did not have a license to practice medicine in Florida. Nevertheless, when he retired to Florida, he started providing medical services to the people in his condo. Isaac, John's next-door neighbor, owed John $2000 for medical services. John will not be able to enforce the contract he made with Isaac.

true

L & M loaned Joan $400 so that she could buy her textbooks for the current semester. L & M's terms for repayment of the loan (including interest) are, $200 in two months, $200 in four months, and another $100 at the end of the fifth month. The legal maximum rate of interest on this type of loan is six percent per annum. L & M's loan is usurious.

true

Monumental, Inc. contracts with Champion Builders to erect a three-story office building on a parcel of land it has purchased. Before construction begins, the local zoning board changes the zoning of the parcel and those adjoining it to residential use only. Monumental's contract with Champion is discharged.

true

Most courts hold that a seller of goods is not entitled to consequential damages.

true

Most, but not all, contract rights are assignable.

true

Parol evidence refers to anything (other than the written contract itself) that was said, done, or written before or as the parties signed the contract.

true

Rest Well Hotel orally ordered 1,000 blankets monogrammed with its initials, RWH, from TriColor Textiles. TriColor had just finished monogramming the blankets when Rest Well called and canceled the order. TriColor will be able to enforce the agreement even though there was no writing.

true

Revocation is the withdrawal of an offer by the offeror.

true

Roger, a minor, buys a stereo from Tuneland, Inc. Roger uses the stereo for a few months, returns it to Tuneland, and demands his money back. In a majority of states, Roger may return the stereo and he does not have to pay for the use of the stereo or the damages.

true

The UCC recognizes commercial impracticability as a ground for discharge of a contract.

true

The original statute of frauds is the English law that began the practice of requiring written evidence of certain kinds of contracts, but now the British government has repealed the writing requirement for most contracts.

true

To be valid, an agreement not to compete must be ancillary to a legitimate bargain.

true

Travis had too many beers at the baseball game. Ed realized Travis was so intoxicated he wouldn't know what he was doing, so he got Travis to sign a promise to sell his motorcycle to Ed for $50. When Travis gets sober, he may void the contract.

true

Under the UCC, the buyer is entitled to consequential damages if the seller could have reasonably foreseen them.

true

aunt bea promises her 21 year old nephew, opie, that she will pay him $500 if he will agree to quit smoking pot, even though opie is from colorado and has a painful vision problem that caused a doctor to prescribe him the drug. under these circumstances, opie's forbearance from smoking pot can be considered.

true

caroline is an ole miss rebelette who performs cheers and routines just outside the baseline at home basketball games in the tad pad. caroline is injured when murphy crashes into her while driving for a loose basketball that was headed out of bounds. caroline could be subject to the defense of assumption of the risk in a suit against ole miss to recover for her injuries.

true

if a price quotation contains a mistake in the adding of a number of figures, the contract may not be enforced.

true

kenneth was exposed to radiation on his job in an environmental cleanup. in a lawsuit against his employer, the court must decide the full extent of both present and future damages rather than allowing kenneth to return to court years later if medical problems develop at that time.

true

malpractice is negligence committed by a doctor, lawyer, architect, pastor or other professional in the course of their profession.

true

punitive damages are intended to punish the defendant for conduct that is extreme and outrageous.

true

Ira persuades Jake to buy his horse by telling Ira that the horse rides "like the wind." Ira's statement is A-duress B-fraud C-puffery D-undue influence

undue influence

Steven, who is Wesley's guardian, convinces Wesley that buying a certain parcel of land from Steven's brother-in-law at a price that is greatly inflated is a good deal. If in fact it is not a good deal, Steven may be liable for A-duress B-fraud C-puffery D-undue influence

undue influence

Assume that Chris goes to Algonquin J. Calhoun, Esquire, to represent him for a DUI and after verbally agreeing to do the work for Chris, Calhoun charges him $5,000, which is a fair fee. Chris takes bankruptcy after Calhoun gets the DUI dismissed, and the lawyer's bill is discharged. Is this debt void, valid, voidable or unenforceable? a. Valid b. Void c. Voidable d. Unenforceable

unenforceable

When a contract falls within the statute of frauds but is not reduced to a writing, the contract is:

unenforceable

Jerry says to Tom, I'll pay you $1,000 for your car, but I can't buy it for another 18 months. Tom and Jerry have a(n):

unenforceable agreement

Larry goes to his barber who has cut his hair for the past several years. The barber proceeds to cut his hair as they talk about the most recent snow storm to hit the area. This is an example of a: a. unilateral, implied contract. b. bilateral, implied contract. c. unilateral, express contract. d. bilateral, express contract.

unilateral, implied contract.

Vince has begun forgetting things and is becoming very difficult to get along with. He is 85, has been ill, and is very fond of his housekeeper Annie. He gives a deed to Annie for all of his real property. At Vince's death, his children, who got only his photograph albums according to the will, ask that the deed be set aside and the land be put back in the estate for purposes of division among all the children. The probable result will be:

unless the children can prove that Vince was unable to understand what he was doing, or that Annie used her position to improperly influence Vince, Annie can keep the property.

A third party beneficiary's status occurs: A. after an assignment and delegation. B. when the third party is informed of the contract. C. when the third party beneficiary agrees to the contract terms. D. when the contract is created.

when the contract is created.

A provision in a contract which is illegal

will be ignored by the parties if the remaining portions of the contract can stand on their own.

If there was no contract but a court finds that the plaintiff gave a benefit to the defendant, the plaintiff reasonably expected to be paid for the benefit and the defendant knew this, and the defendant would be unjustly enriched if he did not pay, the court:

will generally award quantum meruit. generally awards money it believes the plaintiff morally ought to have.

The Johnsons decided to sell their summer cabin on Beech Lake. They sent flyers out to all who previously had expressed an interest in buying the cabin stating that they were planning on selling their cabin. The flyer described the location of the property, the size of the lot, and the price. If one of the recipients responds by sending a letter accepting, an agreement: a. will not be formed because the flyer was sent out as an invitation to negotiate. b. will be formed because the first to respond gets the property. c. will be formed because the price is includ-ed. d. will not be formed because of the parol evidence rule.

will not be formed because the flyer was sent out as an invitation to negotiate.

miles purchased a lawnmower with an attached warning that said "the manufacturer is not responsible in the case of an injury cause by the lawnmower. there are not warranties of any kind or character associated with this mower." if miles is injured because of a defect in the mower and sues the lawnmower manufacturer, he will most likely: a. lose, as he agreed to not hold the lawnmower manufacturer liable b. lose, as assumed the risk. c. win, as this warning and disclaimer of warranty would be ineffective against miles and other purchases d. win, as all lawnmower manufactures are strictly liable

win, as this warning and disclaimer of warranty would be ineffective against miles and other purchasers

Miles purchased a lawnmower with an attached warning that said, "The manufacturer is not responsible in the case of an injury caused by the lawnmower." If Miles is injured because of a defect in the mower and sues the lawnmower manufacturer, he will most likely:

win, as this warning would be unenforceable.

zzzz

zzzz

What duty of care does a land owner owe a business invitee? a. not to intentionally harm her b. to warn her of hidden defects c. to warn her of obvious defects d. to use reasonable care not to harm her

to use reasonable care not to harm her

A minor cannot avoid a contract to purchase a car if the:

minor is able to return the car but does not do so.

What is not required to establish promissory estoppel?

A promise made by the plaintiff in response to the defendant's promise.

Acme Co. offers to buy 1000 widgets from Widget World Co. The written offer provides for 1000 at $10 per widget, to be delivered May 1. The offer has no other provisions. Widget World sends a written acceptance. However, the acceptance also states that if any claim arises under this contract, Widget World must be notified within 10 days. Acme does not object to this provision. Both parties are merchants. Which of the following best describes this situation? a. No contract exists. The purported ac-ceptance contains additional terms, so it is a counteroffer, which has not been accepted. b. No contract exists if the additional terms are construed to be material terms. c. A contract exists. If the additional terms are construed to be material, they are not part of the contract. If the additional terms are not material, they are part of the contract. d. A contract exists, but the additional terms are not part of the contract no matter what.

A contract exists. If the additional terms are construed to be material, they are not part of the contract. If the additional terms are not material, they are part of the contract.

Which of the following contracts is enforceable without a writing?

A contract for the sale of a camera for $479.

Upon the recommendation of a friend, Hope hires Joey to rewire her kitchen and he completes the work within the time agreed. Then Hope finds out that Joey is not a licensed electrician, and she refuses to pay him for the work. A court will enforce the agreement under what theory?

A court will not enforce this because it is illegal to do work of license contractor and not have the license

Rebecca, in Honolulu, faxes a job offer to Spike, in Pittsburgh, saying, "We can pay you $55,000 per year, starting June 1." Spike faxes a reply, saying, "Thank you! I accept your generous offer. See you June 1. Can't wait!" On June 1 Spike arrives, to find that his position is filled by Gus. He sues Rebecca. REBECCA, in Honolulu, faxes a job offer to Spike, in Pittsburgh, saying, "We can pay you $55,000 per year, starting June 1." Spike faxes a reply, saying, "Thank you! I accept your generous offer, though I will also need $3,000 in relocation money. See you June 1. Cant wait!" On June 1 Spike arrives, to find that his position is filled by Gus. He sues Rebecca. a. Spike wins compensatory damages. b. Spike wins $58,000. c. Spike wins $3,000. d. Spike wins restitution. e. Spike wins nothing.

A) FIRST ANSWER Spike wins compensatory damages. OR E) TO 2ND QUESTION? spike wins nothing. Need to check this one:

Peter, a minor, purchased a car from ACME Motors. Using a fake ID, he misrepresented his age to be 18. The contract is fully executed. Which of the following is correct?

A) Peter cannot disaffirm the contract because a car is a necessity. B) Peter cannot disaffirm the contract because of his misrepresentation. C) Peter can disaffirm the contract, because a minor must be saved from his own poor judgment, including his lie. D) Either b or c may be applicable depending on the law of the jurisdiction in which the contract was formed. (D. Either b or c may be applicable depending on the law of the jurisdiction in which the contract was formed)

If a court orders rescission and restitution of a contract under which Nala sold a baseball card to Shirley in exchange for $450:

A) Shirley must return the baseball card B) Nala must return the $450 C) Both a and b D) neither a nor b C, both a and b are correct

AAA and XXX companies are both major international conglomerates. They are negotiating a contract whereby AAA will install a computer system for XXX. One clause in the contract states that AAA will not be liable for damages caused by the negligent installation of the computer system, except that AAA warrants the system and will fix any problem for a period of two years following installation. AAA completes the installation of the computer system. XXX loads extensive amounts of information on the system, but all of it is destroyed because AAA negligently installed the memory chips. AAA fixes the memory, but XXX incurred significant expenses in recreating the lost information. XXX sues for these expenses. AAA defends with the noted clause in the contract.

AAA wins; this exculpatory clause is enforceable.

_________ is defined as compliance by the offer with the terms and conditions of an offer. a. counter-offer b. acceptance c. assignment d. consideration

ACCEPTANCE

Courts may award damages called "quantum meruit": a. which means "as much as he deserved." b. which is money the court believes the plaintiff morally ought to have. c. even though there was no valid contract entitling the plaintiff to it. d. All of the above.

ALL OF THE ABOVE

The following are elements of a tort cause of action: a. duty b. breach of duty c. proximate cause d. damages e. all of the above

ALL OF THE ABOVE

To be valid, a noncompete clause must be:

ALL OF THE ABOVE A. ancillary to a legitimate bargain. B. reasonable in time, geographical area, and scope of activity when ancillary to the sale of a business. C.necessary to protect trade secrets, confidential information, or customer lists developed over an extended time when ancillary to an employment contract.

Alpha and Xenon companies are both major international conglomerates. They are negotiating a contract whereby Alpha will install a computer system for Xenon. One clause in the contract states that Alpha will not be liable for damages caused by the negligent installation of the computer system, except that Alpha warrants the system and will fix any problem for a period of two years following installation. Alpha completes the installation of the computer system. Xenon loads extensive amounts of information on the system, but all of it is destroyed because Alpha negligently installed the memory chips. Alpha fixes the memory, but Xenon incurred significant expenses in recreating the lost information. Xenon sues for these expenses. Alpha defends with the noted clause in the contract. Xenon wins; these types of clauses are never enforceable. Xenon wins; exculpatory clauses are sometimes valid, but this one would not be valid. Xenon wins; this exculpatory clause is not valid because it is unconscionable. Alpha wins; this exculpatory clause is enforceable

Alpha wins; this exculpatory clause is enforceable.

What is an example of a duty that can probably be delegated?

An agreement to paint a house.

Which of the following duties can probably be delegated? a) An agreement to perform an operation. b) A contract to paint a picture. c) An agreement by an attorney to draft a contract. d) An agreement to paint a house.

An agreement to paint a house.

Preferred Contractors was a general contractor and owner of a condominium complex, which was under construction. Barrett, a subcontractor, had been hired by Henderson Plumbing, another subcontractor, to help it complete the plumbing work on the project. When Henderson began using shoddy installation procedures and subsequently fell behind the scheduled completion time for the project, Preferred Contractors urged Barrett to correct Henderson's mistakes and to finish the job. Barrett refused to continue until he knew who would pay him, since he feared Henderson's financial position was shaky. Nonetheless, Preferred Contractors' job superintendent told Barrett to go ahead even if Barrett and Preferred Contractors had no contract because "he would use his influence to try to help Barrett get his money." Barrett finished the work and sent a $7,500 bill to Henderson, which was never paid. When Barrett later sent the bill to Preferred Contractors, these facts emerged: Preferred Contractors told him that due to Barrett's failure to notify Preferred Contractors promptly of Henderson's non-payment, Preferred Contractors had already paid Henderson in full and therefore would not pay twice for the work. What must Barrett show to win a case under quasi-contract?

Barrett gave some benefit to Preferred Contractors, barrett reasonably expected to be paid for the benefit and Preferred Contractors knew this, barrett must show that he should receive the reasonable value of the services in order to avoid the unjust enrichment of Preferred Contractors, ALL OF THE ABOVE must be shown to win a case on quasi-contract

Derek and Abyan were discussing business over lunch when they agreed on the sale of a five-acre parcel of land. Since neither of them had any paper with them, Derek wrote the following on a napkin: "Abyan agrees to purchase from Derek a 5-acre parcel located at the local address of 123 105th Street, St. Joseph, Minnesota, U.S.A. for the price of $4,500 per acre. Transfer of title, payment, and possession to take place on May 1, 2008." Abyan signed the napkin. On May 1, 2008, Derek was ready to close the deal and transfer title but Abyan refused to pay the purchase price. If Derek sues Abyan for the price of the land, the most likely result will be:

Derek will win because the writing is sufficient under the statute of frauds.

The title of a contract should be

Descriptive of the argument and typed in all capital letters

Ted's wallet is as empty as his bank account, and he needs $3500 immediately. Fortunately, he has three gold coins that he inherited from his grandfather. Each is worth $2500, but it is Sunday, and the local rare coins store is closed. When approached, Ted's neighbor Andrea agrees to buy the first coin for $2300. Another neighbor, Cami, agrees to buy the second for $1100. A final neighbor, Lorne, offers "all the money I have on me" - $100 - for the last coin. Desperate, Ted agrees to the proposal. Which of the deals is supported by legally sufficient consideration? I. Teds agreement with Andrea II. Teds agreement with Cami III. Teds agreement with Lorne a. I only b. II only c. III only d. I and II only e. I, II, and III

I, II & III: I. Teds agreement with Andrea II. Teds agreement with Cami III. Teds agreement with Lorne

Patrick offers to buy Tyler's iPad. By what means can Tyler terminate Patrick's offer? I. Revocation II. Rejection III. Counteroffer a. I only b. II only c. III only d. II and III only e. I, II and III

II AND III ONLY: (REJECTION & COUNTEROFFER)

WHICH IS TRUE: If a contract is made with a person required by law to hold a license, and the purpose of the license is protection of the public, the contract made by an unlicensed person will generally be enforceable.

IS THIS FALSE OR TRUE? NEED TO CHECK KYM

Bernie owes an undisputed amount to Wilde's Heating & Air Conditioning. Which of the following is true? a. If Wilde's agrees to accept less than the full amount as full payment, the agreement is not binding. b. The undisputed amount is also known as an unliquidated amount. c. If the parties agree to settle for less than the full amount, their agreement is governed by the ruling in Henches v. Taylor. d. If Wilde's agrees to accept less than the full amount, the agreement is only binding if it is in writing and signed by Bernie.

If Wilde's agrees to accept less than the full amount as full payment, the agreement is not binding.

Jerry purchased a laptop computer for his personal use from Computer City on an installment loan contract. The sales contract stated that in the event the contract is assigned to a third party, the purchaser (Jerry) promises he will not assert any claims or defense against the assignee which he might have against Computer City. Computer City immediately assigns the contract rights to Finance USA. The computer stops working within two weeks of the purchase. a) This is a valid waiver of defense clause. Jerry signed the contract, so he can't raise a defense to Finance USA. b) Finance USA is an intended third party beneficiary and may therefore enforce the contract. c) In general, this type of waiver is not permitted in consumer contracts, so Jerry can raise his claim against Finance USA. d) This is a delegation of Jerry's duties and the delegator remains liable on the contract unless a novation agreement is made.

In general, this type of waiver is not permitted in consumer contracts, so Jerry can raise his claim against Finance USA.

****Jerry knows that Lucy has coveted his classic car for quite some time. Finally willing to sell it, he sends a letter to Lucy offering to sell the car for $15,000. Lucy responds by saying she needs time to arrange financing. Lucy offers Jerry $100 to keep the offer open for two weeks. Jerry agrees, taking the $100. Three days later, Roberta contacts Jerry saying she is interested in buying the car and has the cash to buy it outright. Jerry is concerned that if he doesn't sell the car to Roberta now, she may not be interested later. Furthermore, Lucy may never be able to arrange financing. Jerry is afraid he may end up with no buyer at all. He comes to you for advice. What do you advise?

Jerry made an option contract with Lucy. This means his offer may not be revoked during the two-week option period. It is quite possible that Jerry will end up with no buyer, but he still has the car, and the $100 is his compensation for taking the car off the market for the two weeks.

Jack mails an offer to Joan that states, "I offer to sell you my car for $2000. If I don't hear from you in 10 days, I will assume you are willing to buy the car for the stated price." Jack hears nothing by the deadline and assumes he has a deal. What is the result? a. Jack has a deal. His offer was intended and contains definite terms. b. Jack has a deal. Joan should have re-sponded saying she is not interested in the car if she didn't want to be bound to the offer. c. Joan is not bound. Generally an offeree must say or do something to accept an of-fer. d. Joan is not bound. Ten days is not a reasonable amount of time to consider the offer and accept by mail

Joan is not bound. Generally an offeree must say or do something to accept an of-fer.

When a business is concerned about selling to minors because of their right to disaffirm contracts, the business might protect itself by:

requiring an adult co-signer

Alfred orally promised to pay Robert a salary of $30,000 per year for five years and his moving expenses up to $10,000 if Robert would quit his job and come to work for him at his manufacturing plant. Robert agreed to do so, but requested a written contract. Alfred assured him that the company attorney would prepare such a contract as soon as possible, but Alfred needed Robert to start at once. Accordingly, Robert sold his house, moved his family, and commenced to work for Alfred. He was fired without cause two months later. No written contract was ever executed. Can Robert enforce Alfred's oral promise?

Maybe. Robert should go to court under the theory of promissory estoppel. Alfred made an oral promise that Robert relied upon, and the way to avoid injustice is to enforce the promise

Mid-American Oil had a contract with NSB Company to supply 1,000 gallons of oil by September 1. The contract contained a provision which required all modifications to be written and signed by the company presidents. In early August, an executive of Mid-American talked with the purchasing agent of NSB who orally agreed to two shipments of oil; one in September and the second one in December. By September 30, when only 500 gallons had been delivered, NSB sued. The likely outcome of this lawsuit is: a. NSB wins because the modification was not supported by new consideration. b. NSB wins because the modification has to be in writing. c. Mid-American Oil wins because the UCC governs this case and no new consideration is required. d. Mid-American Oil wins because new consideration was present.

NSB wins because the modification has to be in writing.

Tina is an undercover police officer. One evening she is posing as a prostitute in a bar. Larry, a salesman who is attending an out-of-state convention, begins talking with Tina. After about ten minutes, Tina suggests going to her room for a good time but points out he will need to "donate" $100 to her. Arriving at Tina's hotel room, Larry asks if she is a policewoman. Tina lies and says she is not. When Larry gives her $100, Tina shows him her identification and arrests him. Larry appears to have been:

Neither of the above.

Wendell, new to the area, selects a doctor from the telephone book and visits that doctor to have a splinter extracted. Unbeknownst to Wendell, the doctor has never passed the state licensing exams. Later, when Wendell discovers the truth, he refuses to pay his bill. If the doctor sues for recovery of the fee, will the court support the doctor's claim? A) Yes, it was up to Wendell to verify the doctor's qualifications prior to having the splinter extracted. B) No, the court is likely to take the position that it is not in the public's best interests to enforce contracts with unlicensed doctors. C) It depends on whether Wendell's injury healed properly.

No, the court is likely to take the position that it is not in the public's best interests to enforce contracts with unlicensed doctors.

The willingness of an offeror to enter into a contractual agreement regarding a particular subject is expressed by a(n):

Offer

On January 16, Deb offers to sell her waterbed to Colleen for $600. Colleen accepts and agrees to pay Deb $600 on January 27. Which of the following is correct? a. On January 16, the contract was executory. b. On January 16, the contract was executed. c. This contract is a unilateral contract. d. There is no contract until one party performs.

On January 16, the contract was executory

If Jane persuades Linda to buy her horse by telling Linda that the horse runs "like the wind," then Jane's statement is: A. fraud. B. misrepresentation. C. a unilateral mistake. D. puffery.

Puffery.

Mike owns a house in a poor area of a large city. Mike is on disability and his total monthly income is $700. A sales representative visits his home, selling a water purification system. Mike signs a contract that calls for monthly payments of $500 for the next 10 years. The water system is worth no more than $1000. Mike thought he was signing a permission slip allowing the salesman to conduct a free water test to determine the toxins in the water. How would a court most likely describe this contract? A)The contract is fully enforceable as written. B) The contract is unenforceable because it is unconscionable. C)The contract is enforceable, but only up to the value of the water system. D)The contract is unenforceable because it is exculpatory

The contract is unenforceable because it is unconscionable.

Marty, a 16-year-old, contracts with Cream-of-the-Crop Cycles to buy an $8,000 motorcycle. Marty agrees to make monthly payments until the purchase price plus interest are paid in full. Which of the following is correct? A. The contract is voidable by Marty. B. The contract is void as soon as it is made. C. The contract is voidable by Cream-of-the-Crop Cycles. D. The contract is voidable by either Marty or Cream-of-the-Crop Cycles.

The contract is voidable by Marty.

Suppose that Lenny Lawyer enters into an agreement with Cindy Client that his fee will be a percentage of the recovery Lenny obtains for Cindy in her pending divorce. State law makes such a contingency fee arrangement illegal in divorce actions. What will be the probable outcome if Lenny attempts to enforce the agreement? A)The contract will be valid. Cindy would not have been able to afford an attorney otherwise and therefore Lenny was doing a public service. B) The contract will be voidable at Cindy's option. C)The contract will be void as violating a statute. Lenny will not be able to recover anything.

The contract will be void as violating a statute. Lenny will not be able to recover anything.

Abby dies, and her good friend, Claire is appointed to administer Abby's estate. Abby's house was in poor condition, so Claire orally hired a contractor to make repairs. Claire also orally promised that if the estate could not pay the repair bill, he would pay it even though he does not live in the house and has no entitlement under Abby's estate. The ESTATE DOES NOT PAY THE BILL. WHO CAN THE CONTRACTOR COLLECT FROM, if anyone?

The contractor can collect from the estate only.

What duty of care does Miller owe someone who is intruding on her property? a. The duty not to intentionally harm him. b. The duty to warn him of obvious defects. c. The duty to warn him of hidden defects. d. The duty of reasonable care not to harm him.

The duty not to intentionally harm him.

In a ________ contract, a promise is exchanged for an act or a forbearance for acting. a. bilateral b. executory c. executed d. unilateral

UNILATERAL

Vivian goes to an auction and sees a rare antique lamp that is an identical match to one she already has. At the proper time she bids on the lamp and is the highest bidder. Even though she is the high-est bidder, the auctioneer refuses to accept her bid and withdraws the lamp from the auction. Can the auctioneer do that? a. Unless otherwise stated, the auctioneer had the right to withdraw the item before the fall of the hammer. b. Generally, the auctioneer must sell to the highest bidder. Vivian will get the lamp. c. Generally, the auctioneer is the offeror and the bidders are the offerees so there is a contract and Vivian will get the lamp. d. Most auctions are without reserve and therefore the auctioneer cannot withdraw the lamp.

Unless otherwise stated, the auctioneer had the right to withdraw the item before the fall of the hammer.

A(n) ___________ contract is a promise, or set of promises, the breach of which the law provides a remedy. a. Valid b. Void c. Voidable d. Unenforceable

Valid

A _________ contract is defined as one that may be treated as void or valid at the option of the innocent party. a. Valid b. Void c. Voidable d. Unenforceable

Voidable

Yasmine is negotiating to buy Stewart's house. She asks him what condition the roof is in. "Excellent," he replies. "It is only 2 years old, and should last 25 more." In fact, Stewart knows that the roof is 26 years old and has had a series of leaks. The parties sign a sales contract for $600,000. A week before Yasmine is to pay for the house and take possession; she discovers the leaks and learns that the mandatory new roof will cost $35,000. What kind of contract do we have here?

Voidable by Yasmine

Wally owns 200 acres of land. Wally offers to sell the land to Robert for $1,500 per acre. Robert replies that he does not need 200 acres of land but would like to buy 40 acres at $1,500 per acre. Wally agrees to sell but does not identify which 40 acres. Later, Wally refuses to sell any land to Robert. What is the result? a. Robert wins; this is an enforceable contract with complete and definite terms. b. Robert wins; the UCC will decide which 40 acres are to be sold. c. Wally wins; the original offer was not in-tended to be an offer but merely an invita-tion to negotiate. d. Wally wins; this agreement is too indefinite since it does not identify which 40 acres are to be sold.

Wally wins; this agreement is too indefinite since it does not identify which 40 acres are to be sold.

Walter worked nights as a clerk in a fast-food store. On his last work shift, Walter's boss told him, "I'm really grateful for the year that you have worked here. I am going to give you a bonus of $1,000 in your last paycheck." When Walter got his last paycheck, there was no bonus. If Walter sues, the likely result will be: a. Walter will win, as the promise is enforceable. b. Walter will lose, as he gave no consideration. c. Walter will lose unless the promise was in writing. d. Walter will win, as no consideration is required to modify an employment contract.

Walter will lose, as he gave no consideration

The Hoffmans owned and operated a successful small bakery and grocery store. They spoke with Lukowitz, an agent of Red Owl Stores, who told them that for $18,000, Red Owl would build a store and fully stock it for them. The Hoffmans sold their bakery and grocery store and purchased a lot on which Red Owl was to build the store. Lukowitz then told Hoffman that the price had gone up to $26,000. The Hoffmans borrowed the extra money from relatives, but then Lukowitz informed them that the cost would be $34,000. Negotiations broke off and the Hoffmans sued. The court determined that there was no contract because too many details had not been worked out—the size of the store, its design, and the cost of constructing it. Can the Hoffmans recover any money?

Yes, they can most likely recover damages based on promissory estoppel

Shirley is an actress under contract with Twentieth Century. Shirley agreed to perform the lead role in a musical to be filmed in Hollywood by Twentieth Century. At the last minute, Twentieth Century decided to scrap the musical and assigned its rights in Shirley to MGM. MGM was planning to film a western in Australia requiring Shirley to spend six months filming in Australia. Can Shirley successfully prevent this assignment?

Yes. This assignment would substantially change her duties under the contract.

Zero, Inc. agreed to build Millie a storage building for $8,000. After beginning the project, Zero realized that it could not complete the job and make a profit. Zero demanded $9,500 to complete the building. Millie agreed to pay the $9,500. When the project was complete, Millie tendered $8,000 to Zero for the job. If Zero sues Millie for the remaining $1,500: a. Zero will win because there was consideration for the additional $1,500. b. Zero will win because Millie had a pre-existing duty to pay any additional amounts. c. Zero will lose because there was no legal consideration to support the additional $1,500. d. Zero will lose because the UCC does not require consideration to modify an existing contract.

Zero will lose because there was no legal consideration to support the additional $1,500.

One of the factors leading courts away from a laissez-faire approach to contract law was:

a change in relative bargaining power between parties to contracts.

A contract between a company in the U.S. and one in China, contained a clause that stated: "If an event happens which is extraordinary and out of the control of the parties such as a strike, act of God, fire, accident, or transportation difficulties, then the affected party shall be relieved of its obligations under the contract." This type of clause is:

a force majeure clause

Pamela is planning to sell her home decorating store to her daughter. Pamela has:

a greater duty to reveal problems in the business because her daughter assumes she will be honest

For the purposes of the statute of frauds, an interest in land includes:

a house, a real estate mortgage, an easement, all of the above. (all of the above)

A contract clause which specifies the amount of damages to be paid in the event of a breach is called: A. a covenant of damages clause. B. a reliance interest of damages clause. C. a liquidated damages clause. D. an incidental damages clause.

a liquidated damages clause.

Harriett raises and sells hippos. In order to keep her hippos happy and healthy, she feeds them Hippo Chow, which she buys from the local pet store. Under the UCC, Harriett is:

a merchant of hippos, but not of Hippo Chow.

The Davis v. Mason (1792) case addressed the issue of:

a noncompetition agreement

Molly and Craig are the original parties to a contract. Craig is obligated to design a Website for Molly. They subsequently make an agreement with Eric that Eric should take the place of Craig and assume all of Craig's rights and duties under the contract. The agreement releases Craig from his obligations under the contract. This agreement is: a) a novation. b) an accord and satisfaction. c) an assignment. d) a nullification.

a novation.

The key time for determining whether a party lacked contractual capacity is:

the time the contract was made

The statute of frauds applies to:

a promise by an executor to pay a claim against the estate out of his or her personal funds.

A contract is:

a promise that the law will enforce.

Farmer Elvin is holding 200 pounds of potatoes in storage for Chef Noble but Chef Noble has breached the contract by failing to pay for the potatoes. The potatoes are beginning to rot. If Farmer Elvin sells the potatoes to a local diner to make potato soup and salad, then this action would be considered:

a reasonable mitigation of damages

The maximum amount of time that a minor has to disaffirm a contract is

a reasonable period of time after reaching the legal age.

When a minor avoids a contract to purchase a car:

a relative who cosigned the contract is liable for the purchase price.

Cheryl enters into a contract with Gabe. In this contract, Cheryl asks Gabe to pay the money he owes her from the contract to her friend Leah because Leah is having financial problems. Lean is: a) a third party creditor beneficiary. b) a third party donee beneficiary. c) a third party incidental beneficiary. d) the promisee in the contract.

a third party donee beneficiary.

The Tavern's secret recipe for its pizza sauce would be considered:

a trade secret, and an employment noncompete clause would be enforceable to protect it.

Jennifer has offered to sell her computer for $1750 to Jack. She tells Jack that the computer is only six months old but, in fact, the computer is three years old, and Jennifer wants to unload the lemon. Jack agrees to buy the computer based on Jennifer's representations. This contract is: a. a void agreement because of the fraud involved. b. a voidable contract, one that Jack can void. c. a voidable contract, one that Jennifer can void. d. a void contract because of the UCC.

a voidable contract, one that Jack can void.

Generally, in comparison to a donee beneficiary, a creditor beneficiary has: a) about the same legal rights. b) substantially greater rights. c) substantially fewer legal rights. d) virtually no legal rights.

about the same legal rights.

In a unilateral contract, the doing of a requested act is also the

acceptance of the offer of the promisor

An implied contract is shown by

acts of the parties

When an insurance policy is ambiguous, the policy is interpreted

against the insurer

A party to a contract may be:

all of the above

A writing that satisfies the requirement of a writing under the statute of frauds could be evidenced by

all of the above

An apparently voluntary agreement may in fact not be voluntary if: Answer

all of the above

Consideration no longer is required in a number of situations including

all of the above

Inadequacy of consideration may be evidence of:

all of the above

Parol evidence may be admitted to show that a provision was omitted as the result of:

all of the above

Don is considering selling goods to a foreign retailer. Don needs to consider:

all the above.

Parol evidence generally is admissible to explain

ambiguous terms

The mirror image rule applies to: a. an offer b. a rejection c. a revocation d. an acceptance

an acceptance

If Crosby and Dash are in disagreement as to the exact amount of money that Crosby owes Dash, then they may choose to form a new agreement at a set amount. If they both perform the new agreement, their conduct would be an example of: a. a rescission. b. a contract modification. c. a preexisting duty. d. an accord and satisfaction.

an accord and satisfaction.

Bailey Co. and Spryt Bros. enter into a contract for the manufacture and sale of 400 lawn chairs. If both parties agree that a modification is necessary: a. the surest way to modify the contract is to liquidate it. b. they may not do so without court supervision. c. an agreement to rescind the contract will terminate the contractual rights of Bailey Co. and Spryt Bros. if neither of them had completed their obligations. d. courts will generally not enforce a cancellation and modification of a contract unless one party received inadequate consideration under the original contract.

an agreement to rescind the contract will terminate the contractual rights of Bailey Co. and Spryt Bros. if neither of them had completed their obligations.

Specific performance may be available for the breach of a contract to sell: A. an original painting. B. 20 shares of AT&T stock. C. a red "Radio Flyer" wagon, available at toy stores. D. a 2007 Lexus in mint condition.

an original painting.

agreement in which a buyer agrees to buy all the goods produced by a manufacturer is known as:

an output contract

Which of the following events would probably excuse performance of a contract based on commercial impracticability?

an unforeseeable trade embargo causes prices to triple

Deborah purchased a boat from Sun 'N Surf Marine. She later learned that the salesman had made misrepresentations to induce her to make the purchase. Under UCC Section 2-721, Deborah can rescind the contract:

and sue for damages whether the misrepresentation was fraudulent or innocent.

DOUBLE CHECK THIS ONE: Which of the following would suffice for a signature on a writing under the statute of frauds? A) a stamped signature B) a handwritten signature, C) a name keyed at the bottom of an email D) any of the above would suffice.

any of the above would suffice; judges define "signature" very broadly

The parol evidence rule

applies to complete written contracts

In the Exxon Valdez case, the Supreme Court:

approved the jury's compensatory award, but reduced the punitive award from $5 billion to $507 million.

In bailment cases, exculpatory clauses: A) are very rarely used. B)are somewhat more likely to be enforced than in other types of cases. C)ordinarily involve an attempt to limit liability for damage to persons rather than property. D)None of the above.

are somewhat more likely to be enforced than in other types of cases.

Negligence concerns harm that: a. is unforeseeable b. arises by accident c. arises intentionally d. is always substantial

arises by accident

Sid burned his own warehouse in order to collect on a fire insurance policy. Sid has committed:

arson.

Steve and Gloria contract for the sale fo an office building. A mutual mistake of fact will make it possible for either party to rescind the contract in all situations A-under any circumstances B-as long as the mistake of fact is material C-al long as the mistake of fact is immaterial D-none

as long as the mistake of fact is material

quantum meruit

as much as he deserves

A contract that has been set aside is said to have been

avoided.

If a court awards nominal damages it will generally:

award a very small amount of money

Zena enters into a contract with Steeley Company to purchase a washer and dryer. She doesn't understand the financing terms, but signs the agreement anyway because she needs the appliances. The financing terms are very unfavorable to Zena, and she is unable to make all of her payments when they are due. Steeley sues. The court would: a. be exercising judicial restraint if it requires Zena to pay as she promised, even if the agreement was unfair and unwise. b. have to rewrite the contract to be fair to both parties. c. have to declare the contract void since it contained terms unfavorable to the weaker party to the transaction. d. use the theory of promissory estoppel to remedy any unfavorable terms in the contract.

be exercising judicial restraint if it requires Zena to pay as she promised, even if the agreement was unfair and unwise.

In order to be valid, a search warrant must:

be obtained from a neutral official. be issued only if it is likely that evidence of crime will be found in the place to be searched.

In order to satisfy the statute of frauds, a writing must: A. be a formal written document drafted by an attorney. B. be signed by the defendant and contain the name of each party, the subject matter of the agreement, and the essential terms and promises. C. be notarized. D. All of the above.

be signed by the defendant and contain the name of each party, the subject matter of the agreement, and the essential terms and promises.

A person lacks contractual capacity if:

because of mental impairment, the person does not comprehend that a contract is being made or understand its consequences

The burden of proof required in a criminal case is:

beyond a reasonable doubt.

Gloria says to Sandy, I'll pay you $500.00 if you agree to paint my house. Sandy says "OK, I'll do it." Sandy and Gloria have a(n):

bilateral contract

MagNet, a small United States computer company, started doing business in a foreign country. The foreign country later decided to take over all computer industry, including MagNet's operation. The foreign country paid MagNet inadequate compensation in United States dollars. The foreign country's action is:

called confiscation, and the action is generally illegal.

The remedy of reformation: A. applies only when money damages are inadequate. B. can be used to correct mistakes in the original contract C. is available if fraud is involved. D. is a commonly used remedy.

can be used to correct mistakes in the original contract

Amy Hudson has been trying to purchase Glen Cappel's antique desk for some time, but Glen has been reluctant to sell. One evening Glen said to Amy, "Okay, I'll sell the desk for $550." Amy replied, "Thank you, Glen. I accept." The agreement was not reduced to writing, but Glen and Amy did shake hands. Two days later, Amy sent Glen a letter outlining the terms of the agreement, and stating that she would deliver $550 cash according to the agreement within ten days. The letter was signed, "Best regards, Amy." Later, Amy had second thoughts, and refused to go through with the purchase. Nothing had been exchanged at this point. Glen:

can enforce the contract against Amy because the statute of frauds is satisfied under this situation

A salesclerk at Sparkle Jewelry Store observed a customer remove a ring from a display case and put it in his pocket. In most states, Sparkle:

can reasonably detain the customer for suspicion of shoplifting.

Ted and Alice own their recreational vehicle subject to a security agreement to Third US Bank to secure the repayment of the purchase money loan. Ted and Alice sell their RV to Bob and Carol, who agree to take over the loan payments to the bank. There is no novation with the bank. Under these facts, if Bob and Carol do not make the loan payments, Third US Bank: a) can sue Bob and Carol only. b) can sue Ted and Alice only. c) can sue Bob, Carol, Ted, and Alice. d) cannot sue anyone but can repossess the RV.

can sue Bob, Carol, Ted, and Alice.

Sea Rovers, Inc. contracted to sell 1,000 pounds of shrimp to the Seafood Shack with delivery on June 1. On May 1 Sea Rovers advised the Seafood Shack that it would not be able to deliver the shrimp. The Seafood Shack:

can sue Sea Rovers immediately for breach of contract

The courts will find an implied contract when: a. justice demands it. b. conduct of the parties indicates they intended an agreement. c. there is promissory estoppel. d. there is undue influence.

conduct of the parties indicates they intended an agreement.

Ron operates a garbage pickup business. He contracts to pick up garbage from an apartment complex for the next 52 weeks at a price of $150 per week. Unexpectedly, the landfill center where Ron takes the garbage to dispose of it, files for bankruptcy. As a result, Ron must travel an additional 100 miles to the nearest landfill center, turning Ron's expected profit into a loss of $40 per week. Ron's best argument in support of his petition to be discharged from the contract is:

commercial impracticability

arnold wrote a defamatory letter regarding bric which he mailed to bric, but which he did not show to anyone else. arnold has

committed neither libel nor slander

Runyon was ready to sign a two-year agreement with Barnett Corp. to become Barnett's sales representative for a three-state area. LaPrise, who wants to be the representative for that area, threatens Runyon with bodily harm if he takes the position. Runyon decides his physical well being is more important to him than the job, so he does not accept the position. LaPrise:

committed tortious interference with a prospective advantage.

what are the essential elements of an offer

communication to the offeree intent to make a contract definiteness of terms

All Seasons, Inc. ordered $5,000 worth of Christmas decorations from Santa, Inc. The shipment of decorations was to arrive no later than October 1, in time for the Christmas season. The shipment did not arrive until December 1. In spite of the delay, All Seasons covered a third of the order through other suppliers, but had to pay 15% more than the price under contract with Santa, Inc. As a further result of the delay, All Seasons' sales were down 25%. All Seasons can recover:

compensatory damages and consequential damages.

Sam, the seller, enters into a contract agreement to buy Betty Lou's house on the condition that he is able to secure financing at or below 6% per year. This is

condition precedent

Melody is a recent graduate of State Law School. She lands an impressive employment contract with the firm of Dewey, Cheathem, and Howe, Attorneys at Law, on the stated provision that she pass the upcoming bar exam. This provision in the employment agreement is a(n):

condition subsequent

Will falsely states a material fact to Jacqueline, who relies on it to her detriment. Will's statement A-constitutes fraud - nothing more is necessary B-constitutes fraud only if both justified reliance and the intend to deceive are present C-will prompt a court to consider whether Jacqueline's damages were significant enough to warrent further action D-none

constitutes fraud only if both justified reliance and the intend to deceive are present

A contract in which one party agrees to purchase goods from another contingent upon the purchaser's ability to locate suitable financing is said to

contain a conditional promise

E-mation hired Jose to bribe a foreign government official. E-mation gave Jose $10,000 in cash to make the bribe payment and $2000 for Jose's efforts. Instead of paying the bribe, Jose pocketed all of the money. If E-mation sues Jose, E-mation will:

not be able to recover the $12,000.

Public policy means the law that comes from the: a. state legislature. b. executive branch of the government. c. courts that decide what would have a negative impact on society. d. Constitution.

courts that decide what would have a negative impact on society.

a tortious act may also be a

criminal act

Liquidated debt

debt in which there is no dispute about the amount owed

The Uniform Electronic Transmission Act (UETA):

declares that a contract or signature may not be denied enforceability just because it is in electronic form

The elements in a defamation case are:

defamatory statement; falseness; communication; and injury.

The distinction between a condition precedent and a condition subsequent:

determines who has the burden of proof

Mark's home had burned to the ground. When he met with his insurance adjuster, she accused him of burning down the house, and said she would have him criminally prosecuted if he didn't settle the claim for much less than the house was worth. Mark agreed to the settlement. If he changed his mind, he can probably rescind the settlement on the basis of:

duress

what are elements of tort cause of action?

duty breach of duty proximate cause damages

In a negligence case, the plaintiff must establish:

duty of due care, breach, causation, foreseeable harm, and injury.

Which of the following is least likely to be regarded as a necessary?

educational expenses

Jane, an accountant, convinces her elderly client Howard to sign a contract to give her his life savings as part of a phony investment scheme. When Howard learns the truth, he may A-only enforce the contract B-only recover what he gave to jane C-enforce the contract or recover what he gave to Jane D-do nothing

enforce the contract or recover what he gave to Jane

star magazine published an article about lindsay lohan. lohan is upset because the info contained in the story is not correct. if lindsay sues star, she will need to show that the magazine:

either knew the story was false or acted with reckless disregard of the facts

If Edmund and Kaylin have a writing mistakenly showing a sale and purchase of goods for $10,000 when the price should have been $1,000, a court will:

enforce the agreement, relying on oral testimony to determine the correct price.

E-trex, Inc. wanted Shaquille O'Neal, a professional basketball player, to endorse its products. O'Neal, however, was not interested. E-trex was not deterred and hired a person who looked and sounded like O'Neal for its commercials. E-trex has:

engaged in conduct that raises the issue of commercial exploitation.

A contract under which one or both parties have not yet fully performed is termed a(n):

executory contract

Fred and Ethyl sign a contract in which Fred agrees to deliver heating oil in exchange for Ethyl's promise to pay for the oil. Fred delivers the oil. The contract is a-fully executed b-executory on the part of Fred c-executory on the part of Ethyl d-none

executory on the part of Ethyl

Mike made the following offer to Mick: "I will pay you $500 if you agree to paint my house." Mick replied that he would. At this point, the contract is an: A. executed, bilateral, express contract. B. executory, bilateral, implied-in-law contract. C. executory, unilateral, express contract. D. executory, bilateral, express contract.

executory, bilateral, express contract.

After the final out of the World Series, Dean orders a new Red Sox championship edition hat from Amazon. At the moment he submits his order, Dean and Amazon have an ______________ contract. Two days later, Amazon delivers the hat to Dean's house, and Dean's credit card has cleared. At this point, Dean and Amazon have an ______________ contract. a. executory; executory b. executed; executory c. executory; executed d. executed; executed

executory; executed

on the first dat of the baseball season, dean orders a new cardinals hat from amazon. at the moment he submits his order, dean and amazon have an _____ contract. two days later, amazon delivers the had to dean's house, and dean's credit card has cleared. at this point dean and amazon have an _____ contract.

executory; executed

Rosemary agrees to trim the four oak trees in front of John's house for $100. They have reached an agreement on the amount of trimming and what will be done with the cut branches. This is most likely a(n):

express contract governed by the common law

a valid contract may be unenforceable for which reason(s)?

failure to satisfy the statute of frauds running of the statute of limitations discharge in bankruptcy

If no termination date is specified for an offer, the offer will remain open:

for a reasonable time

An assignment: a) is generally revocable if it is gratuitous and is either oral or written. b) for consideration is irrevocable c) becomes valid when the obligor receives notice of the assignment. d) must follow formalities.

for consideration is irrevocable

Barnoff, Inc. hired Jess to make home deliveries of its furniture. During one delivery, Jess found Martina home alone and attacked her. Barnoff may be held liable:

for negligent hiring if it failed to check Jess's references and criminal records and to contact his former employers to see if there had been any past problems with his behavior.

Frank, an accountant, says to Missy, "I'll sell you my laptop for $100." Missy asks, "Will you give me until tomorrow to make up my mind?" "Sure," Frank replies. Which of the following is true? a. Frank cannot revoke his offer, no matter what. b. Frank cannot revoke his offer if Missy pays him $5 to keep the offer open until tomorrow. c. Frank can revoke his offer no matter what, because he is not a merchant. d. Frank can revoke his offer no matter what, because no promise was in writing.

frank cant revoke his offer if missy pays him $5 to keep the offer open until tomorrow

M & E contracted to sell 500 music stands to Coda, Inc. M & E shipped the stands in accordance with the agreement. Coda paid for the stands as promised. The contract between M & E and Coda is discharged by:

full performance

Judith is a CPA with an excellent reputation and client base. She sells her tax preparation business to Shawn, and the sales contract includes a noncompete clause restricting Judith from opening a similar business for two years within a 10-mile radius of her former office. If she opens a tax preparation office five miles away after one year, a court would probably:

grant an injunction barring her from operating the new office.

An express contract: a. must be in writing. b. may be inferred by the conduct of the parties involved. c. has both parties setting forth their intentions. d. is not valid in many states.

has both parties setting forth their intentions

Kjell is the vice president of international sales for Oxtren, Inc, a U.S. company. To secure a multimillion dollar contract for his company, Kjell paid a Mongolian governmental officer $10,000. Kjell:

has violated the Foreign Corrupt Practices Act.

Newt, a gun dealer, offers to sell a rare civil war musket to Rush, another dealer, for "$15,000, insurance and shipping paid by buyer." Rush responds, "I accept. Insurance and shipping costs divided equally between seller and buyer." The parties:

have a contract and, in the majority of states, the different terms will cancel each other out.

The legal right to sue for a breach of contract is subject to a statue of limitations. a. true b. false

i don't know if true or false check it!

Costs to store a vehicle for a short period of time after an auto dealer fails to complete the contract to purchase the vehicle would be:

incidental damages

Services depend on the people who provide them. As a result, their quality varies with each person's capabilities and day-to-day job performance. This element of services is referred to as __________.

inconsistency

Jennifer substantially performs her service contract with Gretchen. Due to Jennifer's failure to render complete performance, Gretchen:

is required to pay the full contract price, minus the value of Jennifer's defective performance

Richard and Danita are negotiating the sale of Richard's car. Danita had been present a few months earlier when Richard bragged to a group of friends that his car got 33 miles to a gallon in city driving, which was an exaggeration. Before they agree on a price for the car, Richard:

is under an obligation to disclose the actual mileage per gallon regardless of whether Danita specifically asks him because he knows she is relying on his earlier erroneous statement.

An exculpatory clause is generally unenforceable when:

it involves public transportation

If not an offer, the first statement made by one of two persons is most properly termed a(n):

invitation to negotiate

A condition: A. is created only when the phrase "provided that" or a similar phrase introduces it. B. is an event that must occur before a party becomes obligated under a contract. C. must be expressly stated, although it can be created by informal language. D. will not be enforced by the courts unless formal language is used, regardless of the intent of the parties to create a condition.

is an event that must occur before a party becomes obligated under a contract.

In January 2008, Professor Noe entered into a contract with State University. She agreed to teach full time during the 2008-2009 academic year. Professor Noe died on May 31, 2008. Her estate:

is discharged from any further obligations under the contract

The failure to have a license will not render agreements void if the license:

is readily obtainable by payment of a fee.

a funter who has permission to hunt on someone else's property falls in to the category of

licensee

Bob, a weak swimmer, ignored warning signs in a recreational swimming area and went into deep water. He soon grew tired and realized that he could not make it back to shore. Seeing Kelly, he cried out for help. Kelly, however, ignored the pleas. Bob was finally saved by Dorothy, but suffered brain damage from being submerged during the ordeal. Bob now sues Kelly for negligence for failing to try to save him. Bob will: a. prevail because society places a duty on people to help each other and Kelly breached this duty, resulting in Bob's injury. b. lose even though Kelly had a legal duty to save him, since Bob will not be able to prove that Kelly's failure to act was the proximate cause of his injuries. c. lose because Kelly had no legal duty to rescue him. d. lose because a reasonable person could not have foreseen that someone in a recreation area could not swim well.

lose because kelly had no legal duty to rescue him

Phillip was waiting for a bus at a bus stop. Across the street and down the block, a mechanic negligently overinflated a tire he was intending to put onto Marsha's pickup truck. The exploding tire injured Marsha and frightened a neighborhood dog, which ran down the street and knocked Phillip down, injuring his knee. Phillip sued the mechanic. In applying the Palsgraf v. Long Island Railroad Co. decision to this case, Phillip would: a. win because the mechanic was negligent in overinflating the tire, which led to Phillip's injury. b. win based on negligence per se. c. lose because the court would apply the doctrine of res ipsa loquitur. d. lose because, although the mechanic's conduct was negligent toward Marsha, it was not a wrong in relation to Phillip, who was far away. The mechanic could not have foreseen injury to Phillip and therefore had no duty to him.

lose because, although the mechanic's conduct was negligent toward Marsha, it was not a wrong in relation to Phillip, who was far away. The mechanic could not have foreseen injury to Phillip and therefore had no duty to him.

Ryan, a minor, contracted to sell his auto to Ed, a 28-year-old. Ryan later refused to complete the sale. If Ed sues to enforce the contract, Ed will:

lose, because the contract is voidable by Ryan

Sara sent letters to 1,000 people offering to send them information that would guarantee them a profit in the stock market if they sent her $99.95. If they sent her the money, the brief, generally known information she sent them was: "Buy stocks when their prices are low, and sell when the prices are high." Sara is guilty of:

mail fraud.

Under the UCC, if a seller of goods breaches the contract, the buyer:

may "cover" and then receive the difference between the original contract price and the "cover" price

Mulligan Domestics Co. breached a contract by refusing to accept its order for 60 bolts of fabric from Wellington Mills, although the fabric met the contract specifications. Wellington:

may choose not to resell the fabric and settle for the difference between the contract price and the market value

Under the Uniform Commercial Code, an agreement modifying a contract: a. always requires consideration. b. requires consideration only when the sale of goods is involved. c. may not require consideration. d. requires consideration only when one of the parties is incompetent.

may not require consideration.

Hensley and Boyer have been negotiating for several months over issues related to the purchase and sale of some real estate. They draft a letter of intent which: a. protects both parties by ensuring the other side is serious and creates a binding agree-ment on the issues on which the parties have agreed thus far. b. may or may not be an offer, depending on the exact language and whether the docu-ment indicates that the parties have reached an agreement. c. has no legal effect, but provides a record for the parties as to where the negotiations stand. d. courts will consider to be a valid offer which the other party must accept if of-fered in good faith.

may or may not be an offer, depending on the exact language and whether the docu-ment indicates that the parties have reached an agreement.

A court:

may refuse to enforce an express condition intended by the parties if the court determines it is unfair and harmful to the general public.

Mens rea:

may vary depending upon the crime.

one morning, miles places a thumbtack on the chair of the office manager where he worked. he had no quarrel with the office manager, but thought this would be funny. two days after sitting on the tack, the office manager was hospitalized with an infection caused by the tack. which of the following is correct? a. miles actions were negligent b. miles committed an intentional tort c. miles is strictly liable d. no tort has been committed

miles actions were negligent

Sam offers to sell a high-speed modem to Randy but Sam receives a letter of acceptance from Ford. A valid contract exists between a-Sam and Randy b-Sam and Ford c-Sam, Randy, and Ford d-mome

mome

Tony, a minor, attempts to return to its former owner, a car that he recently purchased and subsequently wrecked, in a state in which a duty of restoration is imposed. Tony a-can return the car in its present condition and avoid any further liability b-is not required to return the car due to his minority c-must return the car and pay for the damage d-will not be able to return the car unless it can be fully restored to its original condition

must return the car and pay for the damage

Eintz Corp. hired Jose to bribe a foreign government official. Eintz gave Jose $10,000 in cash to make the bribe payment and $2000 for Jose's efforts. Instead of paying the bribe, Jose pocketed all of the money. If Eintz sues Jose, Eintz will:

not be able to recover the $12,000.

A customer went into a store and saw a beautiful leather jacket bearing a price tag of $29. The customer handed the cashier a $50.00 bill and said, "I accept. We have a deal." The cashier then noticed the price tag and told the customer an error had been made and that the price was $229. In this case:

no contract was formed because the customer's offer was refused

Robert hired James, a CPA, to prepare his tax forms. James was too busy and delegated the work to Sara, also a CPA. This delegation is: a) enforceable, as Sara is also a CPA. b) enforceable, as there was no expectation James would do the work. c) no enforceable, as Robert hired James to perform personal services. d) not enforceable, as this violates public policy.

no enforceable, as Robert hired James to perform personal services.

Martin, Human Resources Director for Spring Co., sent Lynn the following signed letter: "This letter confirms our offer to you. We will pay for your moving expenses, up to $1,500. Your starting date will be February 1, and you will become eligible for health care benefits as of May 1. You will receive a starting salary of $36,500 annually, with reviews and eligibility for increases at six months, 12 months, and annually thereafter. Vacation will be for two weeks a year after one year." Spring fired Lynn eight months after she started to work, and Lynn sued arguing the letter constituted a memorandum of an oral contract for employment for five years. Is the letter sufficient to satisfy the statute of frauds?

no, to satisfy the statute of frauds, the memorandum must contain all essential terms of the contract

Carla convinces her parents to permit her to become an emancipated minor. On emancipation she will acquire rights, including the right to a-vote b-buy alcohol c-a and b d-none

none

Linda agrees to buy Missy's Greyhound race dog for $2,000. Linda is to deliver the noney and take possession of the dog the next morning. That night, running his best race ever, the dog runs away from Missy never to be seen again

none of the above; the contract duties are discharged

Mentally infirm Sasha contracts to purchase a piano for $2,500 in 60 monthly installment payments. Six months later she tries to void the contract on grounds of mental impairment. A court will: A. normally void the contract without requiring anything further on Sasha's part. B. normally void the contract but will require Sasha to return the piano. C. ordinarily not void the contract unless Sasha had a court-appointed guardian at the time she entered into the contract. D. not void the contract unless Sasha agrees to have the court appoint a guardian for her.

normally void the contract but will require Sasha to return the piano.

John owns a thoroughbred horse named Prince Charming that just ran in the Kentucky Derby. Prince Charming came in last, much to John's frustration and embarrassment. John exclaims in a loud voice, "I'm selling that horse to the first person who hands me $100 bucks!" John has: A. made an offer to anyone within hearing distance and will be bound by his offer to the first person who produces $100. B. made a firm offer and will be bound by his offer for a reasonable period of time. C. made an acceptance to the first person who can produce $100. D. not made an offer because under the circumstances a reasonable person would not conclude that John had intent to make an offer.

not made an offer because under the circumstances a reasonable person would not conclude that John had intent to make an offer.

Harry agreed to pay $100 to rent a rooftop spot in downtown Seattle to watch the New Year's Eve festivities. The festivities were unexpectedly cancelled because of concern over a terrorist attack. Harry is:

not obligated to pay under the frustration of purpose doctrine

If Rudy offers Oscar $200 for his $600 stereo and Oscar agrees, a court will probably: a. set aside the agreement as being unfair. b. set aside the agreement because the consideration is inadequate. c. not set aside the agreement based on the adequacy of the consideration. d. not set aside the agreement because of the UCC.

not set aside the agreement based on the adequacy of the consideration.

Jack runs an illegal gambling ring and contracts to pay various law enforcement officers not to interfere with his operation. The illict payments are discovered and the officers and Jack are sent to prison. Jack can a-successfully sure for the return of all the money paid to the officers b-successfully sure for the return of all the money paid to the officers that has not been spent c-not successfully sure for the return of any of the money paid to the officers d-none

not successfully sure for the return of any of the money paid to the officers

A resource that is not "the law," but is a codification of what the ALI regards as the best rulings of contract law and which is used by judges as a reference in deciding contracts cases is:

the Restatement (Second) of Contracts.

A bilateral contract is created when a-one party gives a promise in exchange for another party's promise b-one party gives a promise in exchange for another party's performance of a particular act c-both a and b d-none

one party gives a promise in exchange for another party's promise

If a condition does not occur:

one party will probably be discharged without performing.

The basic distinction between a bilateral contract and a unilateral contract is that: A. only one promise is involved in a bilateral contract. B. only one promise is involved in a unilateral contract. C. the Statute of Frauds applies to one and not the other. D. one is enforceable, the other is not.

only one promise is involved in a unilateral contract.

In a promissory estoppel case, a court will generally award: A. only reliance damages. B. specific performance. C. both reliance and punitive damages. D. only nominal damages.

only reliance damages.

A binding promise to keep an offer open for a stated period of time or until a specified date is called a(n):

option contract

I believe that I own a very valuable vase. I tell this to you and state that I will sell it to you for $800. I sell the vase to you, and you later find out that the vase is worth only $200. A fraud:

ordinarily has not occurred.

Ron, a renowned architect, sells to Jan an apartment that he has not lived in for many years. After Jan moves in, she discovers a number of Ron's drawings in the closet which were produced during his early career and would now be considered very valuable. Ron files suit to get the drawings. Ron should A-prevail because there was no mutual assent B-prevail because the sale of an apartment includes nothing in it C-no prevail because the sale of an apartment includes everthing in it D-not prevail because he should have known the drawings were in the closet.

prevail because there was no mutual assent

The main thrust of the quasi contract is to:

prevent unjust enrichment.

Private lotteries, which generally are held to be illegal, involve three elements:

prize, chance, and consideration

The United States may impose a tariff on:

radios to be sold in the United States by Taiwan at less than fair value, which would harm the American radio industry. automobiles to be sold in the United States by Germany, which had subsidized them.

Contracts that do not arise from mutual agreement but are created by courts to avoid unjust enrichment are: A. express contracts. B. implied contracts. C. quasi-contracts. D. unilateral contracts.

quasi-contracts.

If a federal appellate court rules that imported Halloween costumes in question in a case are festive articles rather than fancy-dress garments, the classification of goods is significant because the:

rate of the tariff depends on the classification.

A minor cannot avoid a contract that has been

ratified

Under a contract for the sale of land, the statute of frauds:

requires the defendant to sign the agreement.

Which of the following can be consideration for a promise?

refraining from smoking cigarettes

Liza offers to help Helen do her laundry. By what means can Helen terminate this offer? I. Revocation II. Rejection III. Counteroffer a. I only b. II only c. III only d. II and III only e. I, II and III

rejection counteroffer

A counteroffer is a(n):

rejection of the original offer

The standard statute of frauds

requires that a contract for the sale of land be evidenced by a writing

Shelly celebrates her 18th birthday and decides that she no linger wishes to keep a car she bought when she was 17. her right to disaffirm will depend on whether a-the car is in good condition b-she acts within a reasonable period of time after reaching the age of majority c-the other party has the right to disaffirm the contract d-none

she acts within a reasonable period of time after reaching the age of majority

Today, what is an important element in determining the validity of a contract?

social consequence of a contract

Under the UCC statute of frauds, the writing for a sale of goods must:

state quantity.

Upon graduating from college, Kathy announced her plans to enter law school the following fall and to marry Rick in December. Kathy's father was afraid that marriage during her first year in law school might cause her to fall behind in her studies or cause her to drop out of school. He called Kathy and promised her $10,000 if she postponed her wedding until after completion of her first year of law school. Kathy agreed and postponed the wedding for a year. Kathy successfully completed her first year of law school, but soon thereafter, Kathy's father died. The administrator of her father's estate claimed she was not entitled to the $10,000 because there was no consideration for her father's promise. If Kathy sues the estate, she will probably be: a. unsuccessful because her father's death terminated the contract. b. successful, as there was consideration. c. unsuccessful because her father received no benefit. d. unsuccessful because it was merely fatherly advice not to get married during the first year of law school.

successful, as there was consideration.

A promise to pay a debt must be in writing if:

the promise is to pay the debt of another

An oral contract can be enforced when it relates to:

the purchase of a television set for $200.

The plaintiff in a quasi-contractual action can recover:

the reasonable value of the benefit conferred upon the defendant

Under the UCC, which of the following contracts may be enforceable, even without a written memorandum?

the seller is specially manufacturing the goods for the buyer, the seller admits in court that there was a contract, the seller has delivered the goods, all of the above (all of the above)

what are some valid defenses to a defamation claim?

the statement was true the statement was only and opinion the person making the statement made it only to the plaintiff, not to any third parties

A seller's form clearly states no warranty is included. The buyer's form states that the seller war-rants the goods for one year. In this case: a. no contract can be created. b. the warranty term is a "different term," and the majority of states hold that a contract can be formed but the contradictory terms cancel each other out. c. the warranty term is an "additional term" that becomes part of the contract in most states. d. the warranty term is a "different term," which in most states becomes part of the contract unless the seller promptly objects.

the warranty term is a "different term," and the majority of states hold that a contract can be formed but the contradictory terms cancel each other out.

The intent of the offeror to extend an offer to the offeree is generally determined by reference to: a. the beliefs of the offeror. b. the subjective intention of the offeror. c. the assumptions of the offeror. d. the words and conduct of the offeror.

the words and conduct of the offeror.

George helped Warren study all night for his business law test. After Warren got an A on the exam, he told George "I will give you $10 for helping me get a good grade" George said, "thanks, i'll take it." a. there is a contract because there is mutual assent b. there is no contract because there is no valid consideration c. there is no contract because $10 is reasonable inadequate consideration d. there is a contract with sufficient consideration

there is no contract because there is no valid consideration

Generally, reasonable liquidated damage clauses will be enforced: when actual damages are difficult to determine

when actual damages are difficult to determine

Compensatory damages are typically assessed against the breaching party:

to put the non-breaching party in the position it would have been in if the contract hadn't been breached.

Rodney was employed by Deluxe Discount Store. Rodney's manager directed him to check the prices of dog food at Huge Savings Store. The manager of Huge Savings Store saw Rodney writing down prices and asked him to leave. Rodney, fearful that he would be fired by Deluxe, refused to leave. Rodney committed the tort of: a. larceny b. misrepresentation c. trespass d. conversion

trespass

what is the intruder's status as an occupier of property if he is breaking into someone's apartment?

trespasser

A contract that is deemed to be too harsh or oppressive to one of the contractual parties may be unenforceable under the concept of:

unconscionability

Contractual capacity is the ability to:

understand that a contract is being made and to understand its general nature

Paul agrees to sell his clothing store to Michael and as part of the sale, to execute a covenant not to compete, and promising not to open a similar store within 1000 miles for the next 20 years. A court reviewing the terms of the covenant would likely find that it is a-unenforceable because all covenants not to compete are unreasonable restraints of trade b-unreasonable as to the geographical scope and duration c-unreasonable with reguard to duration d-enforceable

unreasonable as to the geographical scope and duration

A donee beneficiary: a) is not entitled to enforce a contract against another party. b) usually does not give consideration in return for the gift. c) will generally become a creditor beneficiary after his or her rights vest. d) is an incidental beneficiary.

usually does not give consideration in return for the gift.

When money is loaned at a greater rate of interest than is allowed by law, ____ is committed

usury

A and B enter into a contract, and if B breaches it, the law will provide a remedy. how would you classify this contract?

valid

ABC Siding, Inc. manufactures aluminum siding. ABC enters into a contract to deliver siding to Slippery Siding, Ltd., a retailer of aluminum siding. The written agreement insists that all modifications to the agreement be in writing and signed by both parties. This prohibition against oral modifications is:

valid regardless of whether the clause is signed separately.

The concept of imposing liability for the fault of another is known as __________ liability.

vicarious

Agreements that are illegal are:

void

Linda is adjudicated incompetent by a court and a guardian is appointed, but she subsequently purchases a new car. The contract is a-binding and enforceable b-binding and enforceable to the extent that the car is a "necessary." c-unenforceable because persons declared to be mentally incompetent are not permitted to drive cars d-void

void

A legally binding agreement that can be rejected at the option of one of the parties is called a(n):

voidable contract

On January 8, Quastrar, Inc. sent Hylavian Company a letter offering to sell $10,000 in restaurant supplies. On January 18, Hylavian mailed a letter to Quastrar accepting the offer. Quastrar received the acceptance letter on January 20. On January 17, Quastrar sent a letter revoking the offer. Hyla-vian received this letter on January 21. A contract between Quastrar and Hylavian: a. was not formed because the revocation was effective before the acceptance was sent. b. was not formed because the revocation was effective before the acceptance was re-ceived. c. was formed on January 18. d. was formed on January 20.

was formed on January 18.

Edgar promises Alice that a certain used car will give her a "smooth ride." Edgar offers to let Alice take the car for a test drive, but Alice declines. She pays for the car and drives off but soon realizes that the car's suspension system is in poor condition. Alice A-may rescind the contract on the ground of unilaterial mistake B-may rescind the contract on the ground of fraud C-may rescind the contract on the ground of misrepresentation D-was not defrauded

was not defrauded

The first step a court takes in choosing a remedy is to determine:

what interest it is trying to protect

Consideration is

what is demanded by the promisor as the price for the promise

An auction sale where the auctioneer sells the items without stating any minimum acceptable bid is said to be: a. with reserve b. subject to a condition subsequent c. conditional d. without reserve

without reserve