B-Law 1 Final Exam

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Mary, age 17, sold Mark, age 22, the briefcase she got for graduation. Mark's father liked it and bought it from him. If Mary decides to disaffirm the contract, will Mark's father have to return the briefcase to her?

No, if Mark's father bought it without knowing that Mary was a minor

Busby contracts to build a house for Connell. Busby finishes approximately half of the house and quits. Connell files suit against Busby. Which remedy is not available?

Nominal damages.

A contract in which a party (the promisor) promises to render a certain performance not to the other party (the promisee) but to a third person (the beneficiary) is called a third party beneficiary contract.

True

An intended donee beneficiary may enforce the contract only against the promisor.

True

As a general rule, most contract rights are assignable.

True

At its discretion, a court of equity may grant an injunction against breach of a contractual duty when damages for a breach would be inadequate.

True

In England and in a minority of states, the first of two or more assignees to give notice to the obligor is entitled to the assigned performance.

True

In a novation, the delegator is discharged and the third party becomes directly bound upon his promise to the obligee.

True

In an assignment or delegation, the third parties' rights or duties arise after the contract is made.

True

In some states, the vesting of a third party's rights occurs only when the third party learns of the contract and assents to it.

True

Incidental damages are those that arise directly out of the breach.

True

Monetary damages are the most frequently granted remedy for breach of contract.

True

Oral contracts are as enforceable as written contracts unless otherwise provided by statute

True

Pedro has a contract to build a garage. He delegates the wiring job to a local electrician who improperly performs it. Pedro is responsible, even though he delegated the duty.

True

Restitution requires a return of value to the aggrieved party

True

Sean breaches an agreement in his employment contract with Inmett Corporation by also working for Inmett's major competitor. Sean's promise to Inmett of his exclusive personal services may be enforced by injunction.

True

Some states have statutes which prohibit an employee from assigning his future wages.

True

Specific performance is an equitable remedy

True

The delegation of a duty still leaves the delegator responsible for the performance of the duty.

True

The general rule is that an assignee stands in the shoes of the assignor. He acquires the rights of the assignor but no new or additional rights.

True

The person who makes an assignment is the assignor.

True

Unless otherwise provided by statute, an assignment may be oral.

True

When the assignee gives consideration in exchange for an assignment, there is a contract between the assignor and the assignee that prevents the assignor from revoking the assignment without the assent of the assignee.

True

Where a contract is unenforceable because of the statute of frauds, a party may recover the benefits conferred on the other party in reliance on the contract.

True

The Code greatly alters the common law doctrine of material breach by adopting what is known as the: a. perfect tender rule. b. anticipatory repudiation rule. c. prevention of performance rule. d. discharge by operation of rule law.

A

Which of the following is correct with regard to the powers of the government in the US? a. the federal government is government of enumerated powers b. the federal government is all-powerful except in cases of state criminal law c. legislation enacted by congress does not need to be based on a specific power granted to the federal government by the constituion d. congress may not enact legislation that affects the states

A

an administrative law judge for the FTC decides a case against a retail store chain. the company then appeals the decision to the commission itself. Which of the following is correct regarding the appeal of the case from the administrative law judge to the commission? a. the commission may decide the case de novo b. there is no appeal from the decision of the ALJ c. the commission will decide the case by having a jury trial d. the rules of evidence will be strictly applied by the commission in deciding the case

A

which of the following is a collateral promise

A mother tells a merchant to extend $1,000 worth of credit to her son and says, "If he doesn't pay, I will."

limitations on causation in fact

(1) unforeseeable consequences and (2) superseding cause

which of the following is correct with regard to consideration

- in a unilateral contract, a promise is exchanged for an act or forbearance to act - in a bilateral contract, there is an exchange of promises

In which of the following cases will an oral contract for the sale of goods of $750 be enforceable without a writing

- the goods are to be specially manufactured for the buyer and the seller has made a substantial beginning of their manufacture - a party admits in an answer to a complaint in a lawsuit that the contract was made - delivery and acceptance of the goods has been made

all forms of civil liability are either

- voluntarily assumed as by contract - involuntarily assumed as by law

grand jury

-16 to 23 people -not bound by magistrate's decision at the preliminary hearing -does not hear evidence from the defendant -defendant does not appear before the grand jury

negligence per se

-An action or failure to act in violation of a statutory requirement. -unexcused violation -conclusively shows negligent conduct -plaintiff must also prove legal causation and injury

duress

-a person is threatened with immediate, serious bodily harm to himself or another unless he engages in criminal activity

liberty

-ability of individuals to engage in freedom of action and choice regarding their personal lives

state action

-any action of the federal and state governments -action taken by private citizens if the state exercised coercive power or encouraged the action significantly -supreme court is less willing to find state action based upon performance of public functions by private entities

invasion of privacy

-appropriation -unreasonable intrusion on the seclusion of another -unreasonable public disclosure of private facts -false light

publication

-communicating information to a third party

substantive due process

-concerns the compatibility of a law or governmental action with fundamental constitutional rights

contributory negligence

-conduct on the part of the plaintiff that falls below the standard to which he should conform to his own protection -negligence on both parties -last clear chance

negligence

-conduct that falls below the standard established by law for protection of others against unreasonable risk of harm -conduct of a reasonable person acting with due care

recklessness

-conscious disregard or an indifference to the consequences of an act committed

necessary and proper

-constitution grants congress power to make all laws necessary and proper to carry out the forgoing powers and enumerated powers

concurrent limitations

-contract clause(only state), first amendment, due process, equal protection

harm to economic interests

-contractual relations -business reputation -name or likeness -freedom from deception

federalism

-division of governing power between the state and federal

intent (in tort law)

-does not require hostile or evil motive -actor desires to cause the consequences

punishment of a corporation

-fines -if individual is responsible, they get fined or imprisoned

information

-formal accusation of a crime brought by a prosecuting officer, not a grand jury -used in misdemeanor cases

embezzlement

-fraudulent conversion of another's property by one who was in lawful possession of it

enumerated

-limited powers but are broadly interpreted

duty to licensees (land)

-person who is privileged to enter or remain on land -possessor has higher duty of care to licensees -must warn of dangerous activities and conditions

separation of powers

-prevent any branch from gaining too much power, and to function without interference from any other branch

constitutional privilege

-protects members of the press publishing material on public officials so long as there is no malice -malice here is clear and convincing proof of falsity

14th

-provides equal protection -only applies to state governments

property

-real and personal property, but also certain benefits of the government

intermediate test

-regulation must have a substantial relationship to an important governmental objective -gender and legitimacy

first amendment

-religion, speech, press, assembly, petition

contract clause

-restricts states from retroactively modifying public charters and private contracts -does not preclude states from exercising eminent domain or their police powers

equal protection

-similarly situated persons be treated similarly by governmental actions

sixth amendment

-speedy and public trial by an impartial jury -inform of nature of the accusation -confront with the witnesses against him -obtain witnesses in their favor -assistance of counsel for defense

slander

-spoken defamation

import-export clause

-states cannot impose taxes on imports or exports -protects goods from discriminatory and state taxes

federal fiscal powers

-tax, spend, borrow and coin money, eminent domain

Racketeer Influenced and Corrupt Organizations Act (RICO)

-terminating the infiltration by organized crime into legitimate business -commission of two or more predicate acts within a period of ten years

comparative negligence

-the amount to which a person was liable -pure -modified

res ipsa loquitur

-the thing speaks for itself -permits the jury to infer negligent conduct and causation from the mere occurrence of certain types of events

wire fraud

-transmittal by radio, wire, or television of any information with the intent to defraud

larceny

-trespassory -taking and -carrying away of -personal property -of another -with the intent to deprive the victim permanently of the goods (all 6 elements must be present)

appropriation

-unauthorized use of a person's name or likeness for one's own benefit

implied assumption of the risk

-voluntarily proceeds to encounter a known danger

state commerce regulation

-weighs necessity and importance of regulation, the burden it imposes on interstate commerce, and the extent to which it discriminates in local favor

contractual assumption of risk

-written agreement -express oral agreement -creates an implied in fact contract

libel

-written defamation -handwritten, typed, printed, pictorial, television, radio

mala is se

-wrongs in themselves -murder

"Discharge" has to do with the termination of contractual duties. A. True B. False

A

A condition may be inserted into a contract to terminate the duty to perform. A. True B. False

A

A contract may condition the duty to accept and pay for the performance of the other party upon the approval of a third party. A. True B. False

A

A material breach by the seller will discharge the buyer from his obligations under a contract. A. True B. False

A

A(n) ____ is a contract between a promisee and a promisor by which the promisee agrees to accept and the promisor agrees to render a substituted performance in satisfaction of an existing contractual duty. a. accord b. mutual rescission c. material alteration d. novation

A

After the coronation of Edward VII did not take place on the scheduled date and parties who had entered into contracts in anticipation of the event filed numerous suits, the doctrine of frustration of purpose was added to the law of contracts. A. True B. False

A

An accord and satisfaction discharges an existing debt. A. True B. False

A

An implied-in-law condition and constructive condition are the same. A. True B. False

A

Belinda has a household insurance policy, which requires that she notify the insurance company within thirty days of any loss before she is eligible to receive payment for her loss. The notification requirement is a condition precedent to the insurance company's obligation to perform, even though the notification must occur subsequent to the loss A. True B. False

A

Claudia sells her highly successful hair salon to Carl. In the sales contract, Claudia agrees never to open a hair salon in the state. Which of the following best describes this contract clause? a.The contract requires an unenforceable restraint of trade. b.The contract is void as illegal primary restraint. c.The contract is valid as a reasonable restraint of trade. d.The contract is binding as fair protection.

A

Concurrent conditions occur when mutual duties of performance are to take place simultaneously. A. True B. False

A

Contract damages that put the injured party in as good a position as if the other party had performed are: a. compensatory damages b. consequential damages c. incidental damages d. liquidated damages

A

Florence says to Pat, "If I decide to buy a computer next year, I will buy it from you." This is an example of: a.an illusory promise. b.past consideration. c.the preexisting duty rule. d.good consideration.

A

Harold ordered an aluminium storm door for $249.99. Before it was delivered, the same store from which he ordered the door ran an ad in the paper for the same storm door at $179.99. Harold calls the store and demands the advertised price. They say okay. a. Harold must pay $179.99 b. Harold must pay $249.99 c. there is no contract d. there is a contract for the reasonable value of the door

A

Marie owes Nathan $300 and the parties agree that Marie will paint Nathan's house in satisfaction of the debt. The debt is not discharged until Marie performs the substituted agreement by painting Nathan's house. A. True B. False

A

Refusal of a tender of performance by one party to a bilateral contract will: a. be treated as a repudiation, excusing the tendering party from further duty of performance under the contract. b. not discharge either party from further duty of performance under the contract. c. be considered a condition subsequent. d. None of the above.

A

Under the UCC, a(n) ____ is a practice or method of dealing, regularly observed and followed in a place or vocation or trade. a. course of dealing b. usage of trade c. course of performance d. integrated document

b. usage of trade

the intentional infliction of harmful or offensive bodily contact is the tort of

battery

The law governing assignments is found in Articles ____ and ____ of the Uniform Commercial Code (UCC), as well as the common law. a. 1 and 2 b. 2 and 4 c. 2 and 9 d. 3 and 4

c. 2 and 9

Conditions may be classified: a. by how they are imposed. b. by when they affect a duty of performance. c. Both (a) and (b); they are not mutually exclusive. d. Neither (a) nor (b).

c. Both (a) and (b); they are not mutually exclusive.

Which of the following generally is not grounds for discharge of a contract by operation of law? a. Objective impossibility b. Subsequent illegality c. Running of the statute of limitations d. Bankruptcy

c. Running of the statute of limitations

When an injured party is required to elect remedies, which of the following would be mutually exclusive? a. Restitution and liquidated damages b. Specific performance and compensation for incidental damages c. Specific performance and restitution d. Incidental and consequential damages

c. Specific performance and restitution

Under the parol evidence rule, which of the following types of evidence may be used to vary or contradict the written agreement? a. Prior oral or written agreements b. Contemporaneous oral or written agreements c. Subsequent oral or written agreements modifying the original agreement d. Both (a) and (b).

c. Subsequent oral or written agreements modifying the original agreement

What is another name for the main purpose doctrine? a. The collateral promise rule b. The possibility test c. The leading object rule d. The suretyship provision

c. The leading object rule

Which of the following need NOT be contained in a memorandum, which satisfies the general statute of frauds writing requirement? a. The names of the parties to the contract b. The signature of the party being sued c. The signature of the party suing d. The subject matter and essential terms of the unperformed promises

c. The signature of the party suing

Janice contracts to sell a certain tract of land to Anthony for $5,000, but the contract does not state a time for delivery of the deed and payment of the price. In this situation: a. the contract will be considered void for lack of essential terms. b. the law will imply that the respective performances are independent of each other and may occur whenever "reasonable under the circumstances." c. courts will treat the promises to deliver the deed and to pay the $5,000 as mutually dependent. Anthony's duty to pay is conditioned upon Janice's delivery of the deed and Janice's duty to deliver the deed is conditioned upon Anthony's payment or tender of $5,000 to Janice. d. Janice's duty to deliver the deed and Anthony's duty to pay the $5,000 are "implied-in-fact" conditions.

c. courts will treat the promises to deliver the deed and to pay the $5,000 as mutually dependent. Anthony's duty to pay is conditioned upon Janice's delivery of the deed and Janice's duty to deliver the deed is conditioned upon Anthony's payment or tender of $5,000 to Janice.

Lynne is the intended beneficiary of a third-party contract. Her rights have vested. In an action by Lynne to enforce the promise, the promisor may assert the defense of: a. rescission. b. contractual modification. c. fraud. d. All of the above.

c. fraud.

A contractor and Buckingham, Inc. have a contract, which calls for the contractor to build a building with the completion of it by June 15. If the building is not completed by that date, the contract calls for the contractor to pay $100 per day in damages. The $100 per day is: a. punitive damages. b. nominal damages. c. liquidated damages. d. an illegal penalty.

c. liquidated damages.

A small damage amount fixed without regard to the amount of loss is known as: a. reliance damages. b. out-of-pocket damages. c. nominal damages. d. incidental damages.

c. nominal damages

A(n) ____ is a substituted contract that involves an agreement among three parties to substitute a new promisee in place of an existing promisee, or to replace an existing promisor with a new one. a. accord b. satisfaction c. novation d. mutual rescission

c. novation

voidable contract

contract capable of being made void

unenforceable contract

contract for the breach of which the law provides no remedy

bilateral contract

contract in which both parties exchange promises

unilateral contract

contract in which only one party makes a promise

executed contract

contract that has been fully performed by all of the parties

the intentional exercise of dominion or control over the personal property of another that so seriously interferes with the other's right to control is known as

conversion

counteroffer

counterproposal to an offer that generally terminates the original offer

The UCC defines a "merchant" as a person who: a.is a dealer in a particular type of goods. b.by his occupation holds himself out as having knowledge or skills peculiar to certain goods or practices. c.employs an agent or broker whom he holds out as having knowledge or skill peculiar to certain goods or practices. d.is any of these.

d

The perfect tender rule requires that the seller's tender of performance must conform exactly to the contract, subject to which of the following qualifications? a.Agreement between the parties b.Cure by the seller c.Installment contracts d.All of these

d

Tom makes pottery in his spare time. Jackie asks if he'd sell her a covered bowl. Later that day, he telephones her and says she can have it for $50. She agrees, so he tells her he'll wrap it up for her and it will be ready in half an hour. Six days later, Jackie had not yet come for the bowl when a dog knocks the box off the shelf and breaks it. Who is liable? a. Tom because Jackie had not yet accepted it. b. Tom because it was in his possession when the dog broke it. c. Jackie because she had identified the bowl. d. Jackie because Tom had it ready for her to pick up for nearly a week.

d

Which of the following is necessary to be considered a good faith purchaser? a.The purchaser must act honestly. b.The purchaser must give value for the item. c.The purchaser must take the goods without notice or knowledge of any defect in the title of the transferor. d.All of these are necessary.

d

Theresa has a contract to teach eighth grade at Washington Middle School. She decided she could make more money writing a book, so she assigns her teaching contract to her friend, Stephanie, who is also a licensed teacher. The duties under the teaching contract: a. are nondelegable. b. which Theresa has attempted to delegate are personal in nature. c. would no longer be required of Theresa if the school district agrees to accept Stephanie's services, because a novation would occur, which would relieve Theresa of her obligation to the school district. d. All of the above are correct.

d. All of the above are correct

In determining the meaning of a contract under the UCC, which of the following will have first priority? a. Course of performance b. Course of dealing c. Usage of trade d. Express terms

d. Express terms

Which of the following would not be subject to the writing requirements of Article 2 of the UCC? a. An unborn puppy whose mother is an AKC champion b. Trees that will be cut from a ten-acre tree farm c. Food served in the banquet room of a Florida resort d. Medical care received in a hospital

d. Medical care received in a hospital

Which of the following promises does not have to be evidenced by writing in order to be enforceable? a. Jones' agreement with Smith to sell his condominium for $100,000 b. Stewart's promise to work for Austin for a two-year period c. Dad's promise to the credit union that he will make payments on his son's truck if his son does not pay d. Mindy's agreement with Susan to buy her bike for $400

d. Mindy's agreement with Susan to buy her bike for $400

Which of the following would NOT require a writing under the statute of frauds? a. Where the buyer of a five-acre lot pays the $40,000 purchase price, thus fully performing his obligation b. Where a renter agrees to rent a building for a 5-year period c. Where a contractor enters into an agreement for an easement across adjoining land to run cables d. Where a landscaper agrees to landscape the lot surrounding an office building

d. Where a landscaper agrees to landscape the lot surrounding an office building

A(n) ____ is an intended beneficiary of a contract who receives the benefits of the contract as a gift. a. incidental beneficiary b. intended beneficiary c. assignor d. donee beneficiary

d. donee beneficiary

Stark enters into a contract with a contractor to build a large shopping mall in River City. Donner will benefit from this contract since his restaurant is adjacent to the planned mall. Donner in this instance is a(n): a. implied beneficiary. b. partial beneficiary. c. donee beneficiary. d. incidental beneficiary.

d. incidental beneficiary

Steve purchases a four-wheel drive truck from Belk Auto Sales. Steve is only 17 years of age. He wrecks the vehicle and attempts to disaffirm the contract and have Belk repay him all that he has paid. In the majority of jurisdictions, Steve: a. would be out of luck. b. must have the truck repaired. c. will receive his money less the depreciation in value of the vehicle. d. may simply return the vehicle and get his money.

d. may simply return the vehicle and get his money.

(n) ____ is a method of discharging a contract in which a third party becomes bound upon a promise to the obligee. a. assignment b. delegation c. partial assignment d. novation

d. novation

Equitable remedies will not be granted where: a. the terms of the contract are fair. b. the consideration is adequate. c. the terms of the contract are sufficiently certain. d. the contract is tainted with fraud, duress, undue influence, mistake, or unfair practices.

d. the contract is tainted with fraud, duress, undue influence, mistake, or unfair practices.

Odessa owes Kevin $2,000. On July 1, Kevin assigns the right to the $2,000 to Troy. Thereafter, on July 15, Kevin assigns the same right to Donna, who in good faith gives value for it and knows nothing about the first assignee. In this case: a. Troy has the right to the payment of $2,000. b. Donna has the right to the $2,000. c. neither Troy nor Donna can claim the $2,000. d. the rule differs in different states. Depending on which rule a state follows, the answer will vary.

d. the rule differs in different states. Depending on which rule a state follows, the answer will vary.

requirements of acceptance to an offer

definition and mirror image rule

essentials of an offer

definition, communication, intent, definiteness

duties of the parties in a delegation

delegator is still bound to perform original obligation

intent (essentials of an offer)

determined by an objective standard of what a reasonable offeree would have believed

the injurious falsehood which imposes liability upon one who publishes a false statement that results in harm to another's monetary interests, is the tort of

disparagement

the pure comparative negligence doctrine is applied by some states to

divide the damages between the parties according to their fault

promissory estoppel (contracts without consideration)

doctrine that prohibits a party from denying his promise when the promisee takes action or forbearance to his detriment reasonably based upon the promise

defective acceptance

does not create a contract but serves as a new offer

legal detriment

doing an act one is not legally obligated to do or not doing an act that one has a legal right to do

Donald, a minor, makes a contract with Albert, an adult, to buy a motorcycle. One week later, Donald has his eighteenth birthday and shortly thereafter tells Albert he will pick up the motorcycle next week.

donald has expressly ratified the contract

the defense of ___ exists when a person who is threatened with immediate, serious bodily harm to himself or another unless he commits the crime

duress

to prove a case of negligence against a defendant the plaintiff must prove:

duty of care breach of duty factual cause harm within the scope of liability

Most states have statutes requiring which of the following contracts to be evidenced by a writing to be enforceable? a. Contracts to make wills. b. Contracts for the sale of securities. c. Contracts for the sale of personal property for more than $5,000. d. Contracts creating certain types of security interests. e. All of the above.

e. All of the above.

An express condition is usually preceded by such words as: a. if. b. while. c. how. d. All of the above. e. Both (a) and (b).

e. Both (a) and (b).

According to the "American Rule," when contracting parties litigate over a breach:

each party pays its own attorney fees, regardless of who wins.

usury statutes

establish a maximum rate of interest

mirror image rule (acceptance of offer)

except as modified by the code, an acceptance cannot deviate from the terms of the offer

express warranty

explicitly made contractual promise regarding contract rights transferred

contracts can be both ___ and ___

express and implied

the reasonable person standard is

external and objective

A contract to purchase stocks and bonds is governed by Article 2 of the UCC. True False

false

An anticipatory repudiation is final upon issuance.

false

Economic coercion that compels a person to enter into a contract renders that contract void

false

Following an acceptance of the goods by the buyer, revocation gives the buyer fewer rights than he would have had if he had at first rejected the goods.

false

For an insurance policy to be valid the insured does not need to have an insurable interest in the subject matter to be insured.

false

Hiram, when he assigns to Tim his right to receive the next four rent payments on an apartment he owns, warrants that the tenant will make the assigned payments to Tim

false

Jerry bought a stereo from SX Company 'I on approval." The risk of loss passed to Jerry when he took possession of the stereo.

false

Sandra purchases a life insurance policy naming her husband as beneficiary. His rights as a donee beneficiary vest at the time she purchases the policy, even though the policy permits her to cancel the policy or change beneficiaries

false

The Code continues to govern sales transactions except where specifically displaced by the law of contracts. True False

false

The Code follows the common law rule requiring that modification of an existing contract be supported by consideration in order to be valid. True False

false

The UCC "risk of loss" rules assign the loss to the one most able to pay.

false

The intent of an offer is determined by a subjective standard.

false

a contract to pay for lawn care services costing $1,500 would have to be evidenced by a writing to be enforceable

false

a person who owes a duty under a contract is an obligee

false

all intervening events that occur subsequent to the defendant's negligent conduct will relieve the defendant of liability

false

all merchant ads are offers

false

although a contract to purchase an undeveloped lot must be in writing to be enforceable, a contract to run power lines over someone else's lot need not be

false

an administrative hearing may be tied to an administrative judge or jury

false

an assignee's assent is required for any assignment to be valid

false

Which of the following terms would indicate a destination contract? a. F.O.B. city of buyer. b. F.O.B. city of seller. c. C.I.F. d. F.A.S. seller's port.

a

Reynaldo says to Jose, "if you will paint my house, I will pay you $400." Subsequently, Jose brings paint supplies and equipment to Reynaldo's house. What type of contract exists between Reynaldo and Jose

a contract does not exist

mental illness or defect

a contract entered into by a nonadjudicated mentally incompetent person (one who is unable to understand the nature and consequences of his acts) is voidable

sale of goods

a contract for the sale of goods for the price of $500 or more must be evidenced by a writing or record to be enforceable - admission (makes contract enforceable for quantity admitted) - specially manufactured goods (oral contract is enforceable) - delivery or payment and acceptance (validates only for those)

conditional contract

a contract in which the obligations are contingent upon the occurrence of a stated event

justifiable reliance (fraud in the inducement)

a defrauded party is reasonably influenced by the misrepresentation

because of the bill of rights, state legislation that conflicts with federal legislation will preempt the federal legislation and the courts will apply the state statute without modification

false

because of the bill or rights, state legislation that conflicts with federal legislation will preempt the federal legislation and the courts will apply the state statute without modification

false

comparative negligence by a plaintiff results in the plaintiff's being completely unable to recover

false

congress appoints and removes chief administrators of federal administrative agencies

false

consideration must be received for an assignment to be effective

false

contractual incapacity excuses a minor from an obligation to pay for necessaries

false

contributory negligence is a defense to strict liability

false

courts of equity will grant specific performance of contracts for personal services

false

disaffirmance may be express, but it may not be implied

false

donee beneficiaries and incidental beneficiaries are called intended beneficiaries

false

economic coercion that compels a person to enter into a contract renders that contract void

false

equitable remedies are available any time the plaintiff chooses them over money damages

false

equitable remedies result in money awards to the plaintiff

false

firm offer

a merchant's irrevocable offer to sell or buy goods in a signed writing that ensures that the offer will not be terminated for up to three months

minor's liability for necessaries

a minor is liable for the reasonable value of necessary items

minor's liability for tort connected with contract

a minor is not liable in tort if a tort and a contract are so intertwined that to enforce the tort the court must enforce the contract

restitution

a minor who has disaffirmed a contract is entitled to restitution from the other party and for any benefit the minor has conferred on the other party the courts differ regarding the obligation of the minor ro make restitution to the other party

in a unilateral contract, a promise is exchanged from one party to another for a promise to forbear to act

false

in commercial speech cases, the US supreme court requires that any restriction on such speech must be the least restrictive possible to achieve a substantial government interest

false

in general, if a minor lies about her age in order to induce the seller to contract with her, she cannot disaffirm that contract

false

in only a minority of states a jury may award punitive damages if a defendant's tortious conduct is intentional and outrageous

false

interpretative rules of administrative agencies are automatically binding on the private parties the agency regulates

false

legal detriment means the obtaining by the promisor of that which he had no prior legal right to obtain

false

legal sufficiency of consideration and adequacy of consideration are virtually synonymous terms

false

objective impossibility occurs if a particular contracting party is unable to perform because of financial inability ot lack of competence

false

one meaning of the term "blue laws" is that a lender may only charge a permissible interest rate as established by statute

false

one meaning of the term blue laws is that a lender may only charge a permissible interest rate as established by statute

false

only a minority of courts hold that a minor must return any property he has received from the other party to the contract upon disaffirmance

false

the "perfect tender rule" provides that only substantial deviations from the promised performance in a sales contract under the Code constitute a material breach and discharge the aggrieved party from the duty of performance

false

donee beneficiary

a third party intended to receive a benefit from the contract as a gift

the UCC applies only to sales of goods by manufacturing frims who ship goods to buyers interstate

false

Barbara, an antique dealer, intentionally represents the value of an antique chest of drawers, as $6,000 when she has reason to know the value is considerably less. Margaret agrees to buy it for $5,500. It is worth $2,500. In a state that uses the "benefit-of-the-bargain" rule, Margaret's damage award would be: a. $3,500. b. $3,000. c. $500. d. $2,500.

a. $3,500.

Which of the following is least likely to be classified as a necessary for which a minor will be held liable on a contract? a. A camera b. School supplies c. Boots for a snowy climate d. An automobile

a. A camera

Which of the following involves a creditor beneficiary relationship? a. A contract where the insured names a bank with which he has a loan as the beneficiary of a life insurance policy b. A contract between an employer and a union representing the employees, which contract is made for the benefit of the employees c. A contract between the owner of a building and the contractor stating that the contractor will pay his employees at a stated rate d. A contract between a governmental unit and business for services to be rendered to area citizens

a. A contract where the insured names a bank with which he has a loan as the beneficiary of a life insurance policy

Which of the following would be admissible under the parol evidence rule? Assume the written contract was made on June 1, 2010, and that it is an integrated document. a. A letter dated July 9, 2010, reciting agreement to new delivery terms b. A chart showing the dates for delivery written on August 16, 2009 c. A copy of two letters while the parties were in the negotiation stage of their contract which showed agreement to a term not included in the June 1, 2010 contract d. A copy of common carrier rules on the duty of delivery persons for uncrating merchandise, which is dated December 1, 2006

a. A letter dated July 9, 2010, reciting agreement to new delivery terms

Gerard, an adult, contracts with Communiserve to purchase, in installments over a period of five years, a very large quantity of services that he will probably never need. Although Gerard understands what he is doing when he enters the contract, he has a mental condition that impairs his ability to act in a reasonable and rational way. Under the Restatement: a. Gerard's contract is voidable at his option while it is entirely executory. b. Gerard cannot avoid the contract if Communiserve had no reason to suspect Gerard's incompetency. c. Gerard cannot avoid the contract if the terms are fair. d. Gerard can only avoid the contract if the terms are grossly unfair.

a. Gerard's contract is voidable at his option while it is entirely executory.

the remedy for misrepresentation is specific performance of the contract

false

the term mala prohibita refers to the bad act element of a crime

false

Vladimir entered into a contract to buy Daniel's collection of rare stamps. Vladimir mailed payment of $10,000 for the stamps to Daniel, but now Daniel tells Vladimir, "I'll never part with these stamps." Are the following remedies available to Vladimir? a. Restitution: Yes; Specific Performance: Yes b. Restitution: Yes; Specific Performance: No c. Restitution: No; Specific Performance: Yes d. Restitution: No; Specific Performance: No

a. Restitution: Yes; Specific Performance: Yes

Contract damages that put the injured party in as good a position as if the other party had performed are: a. compensatory damages. b. incidental damages. c. consequential damages. d. liquidated damages.

a. compensatory damages

Mary goes to a stockbroker, purchases 50 shares of a certain stock, and instructs the broker to register the stock in her husband Warren's name. If this stock is intended as a Valentine's Day gift, Warren becomes a(n): a. donee beneficiary. b. transferee. c. delegatee. d. assignee.

a. donee beneficiary.

In states that have adopted it, the UETA: a. encourages and gives full effect to electronic contracts. b. gives full effect to emergency transactions. c. supplements and covers all of the UCC. d. covers wills, codicils, and testamentary trusts.

a. encourages and gives full effect to electronic contracts.

Harold purchased 400 pairs of gloves from Isaac at a contract price of $800. Fifty of the gloves were defective and a dispute arose as to the amount due and owing under the contract. Harold refuses to pay the $800 and Isaac is threatening to sue. Which of the following is correct with regard to this transaction?

if Issac agrees to accept $600 to settle the dispute and Harold agrees to pay that amount, the substitute agreement is enforceable

vesting of rights

if the beneficiary's rights vest, the promisor and promisee may not thereafter vary or discharge these vested rights

requirements of a contract

included intent but not consideration

within recent times, the scope of criminal law ___

increased greatly

Sixteen-year-old Laura's disaffirmance of a contract: a. for a sale of land by her is not effective until after she reaches the age of majority. b. is only effective if expressed in words in the particular form required by statute. c. can only be effective if she is an "emancipated" minor. d. must take place after she reaches the age of majority, regardless of the type of contract, since only then does she have capacity.

a. for a sale of land by her is not effective until after she reaches the age of majority.

notice

is not required but is advisable

administrative statutes issued by an agency are known as:

legislative rules

misdemeanor

less serious crime punishable by fine or local imprisonment

Henry hires Ace Roofing to put a new roof on his house. When Ace comes, Henry refuses to let them on the roof, saying that he has a headache and doesn't want to listen to pounding. The next day, Henry still has a headache and he refuses to allow them on the roof. The day after, the baby is sleeping and Henry refuses to allow them to work. After four weeks of this, Ace: a. may be discharged, but Henry is not. b. may be discharged, and so would Henry. c. can sue for damages, but must perform when Henry is ready. d. has no choice but to keep coming back each day until Henry is ready.

a. may be discharged, but Henry is not.

Wanda at age 17 purchased an expensive stereo system from Stereo Sales. If Wanda wishes to ratify this contract, Wanda: a. must reach the age of majority and ratify the contract as a whole. b. may do so by express notification at any time before reaching the age of majority. c. may at any time keep the stereo but avoid any remaining debt owed on the stereo. d. may do so at any time by express or implied action before or after reaching the age of majority.

a. must reach the age of majority and ratify the contract as a whole.

The party to whom a contractual duty of performance is owed is known as the: a. obligee. b. obligor. c. assignee. d. assignor.

a. obligee.

Bartow signed a contract to coach baseball for Washington High for a period of three years. After two years he is offered and accepts an assistant coach position at State University. Contract law will not allow Washington High to ask for: a. specific performance. b. payment of compensatory damages. c. an injunction. d. liquidated damages.

a. specific performance.

innocent misrepresentation

misrepresentation made without knowledge of its falsity but with due care; renders the contract voidable

sometimes the reasonable person standard of conduct may be established by legislation. An unexcused violation of that statute which causes an injury to another is:

negligence per se

nonfraudulent misrepresentation

negligent and innocent

unenforceability (effect of illegality)

neither party may recover under an illegal agreement where both parties are in pari delicto (in equal fault)

void contract

no contract at all without legal effect

unforeseeable consequences

no liability if defendant could not reasonably have anticipated injuring the plaintiff or a class of persons to which the plaintiff belongs

A small breach of contract damage amount fixed without regard to the amount of loss is known as:

nominal damages.

promissory estoppel

noncontractual promise that binds the promisor because she should reasonably expect that the promise will induce the promisee (offeree) to take action in reliance on it

effect of fault upon mistake

not a bar to avoidance unless the fault amounts to a failure to act in good faith

adequacy of consideration

not required where the parties have freely agreed to the exchange

if an activity causes a foreseeable and highly significant risk of physical harm even when reasonable care is exercised by all actors, and the activity is not one of common usage, it is:

abnormally dangerous

legal benefit

obtaining something to which one had no prior legal right

the criminal act necessary to commit a crime is known as:

actus reus

ratification

affirmation of the entire contract may be done upon reaching majority

the tort of abuse of process can be filed

after the plaintiff or prosecution used a legal proceeding (criminal or civil) to accomplish a purpose for which the proceeding was not designed

requirements contract

agreement to buy all of one's needs from a single producer

output contract

agreement to sell all of one's production to a single buyer

corrupting public officials

agreements that corrupt public officials are not enforceable

there are no federal common law crimes ...

all federal crimes are statutory

death or incompetency

of either the offeror or the offeree terminates the offer

the mirror image rule applies to

an acceptance

past consideration

an act done before the contract is made is not consideration

an act may be criminal without being tortious

an act may be a tort but not a crime

express contract

an agreement that is stated in words either orally or in writing

Alice says to Brian, "If I decide to buy a word processor next year, I will buy it from you." This is an example of:

an illusory promise

David enters into a contract giving Edward the right of first refusal on a tract of land owned by David. David subsequently offers the land to Fred without first offering it to Edward. An appropriate remedy for Edward to seek would be

an injunction

rights of intended beneficiary

an intended donee beneficiary may enforce the contract against the promisor; an intended creditor beneficiary may enforce the contract against either or both the promisor and the promisee

superseeding cause

an intervening act that relieves the defendant of liability

quasi contract (restitution) definition

an obligation not based upon contract that is imposed by law to avoid injustice; also called an implied in law contract

mistake definition

an understanding that is not in accord with existing fact

subsequent illegality

of the purpose or subject matter of the offer terminates the offer

Under the, a buyer may reject goods for even the slightest defect. a. revocation of acceptance rule b. perfect tender rule c. rules for inspection d. excuses for nonperformance

b

What Article of the UCC governs sales of goods? a. 1 b. 2 c. 3 d. None of the above.

b. 2

Which of the following is an exception to the suretyship provision requirement under the statute of frauds? a. A collateral promise made to the creditor b. A promise, the leading object of which is to obtain an economic benefit for oneself c. A collateral promise where there are three parties and two contracts involved d. A promise by an executor to pay the debts of the decedent from the executor's own funds

b. A promise, the leading object of which is to obtain an economic benefit for oneself

merchants who detain shoppers suspected of shoplifting are protected in most states by statutes as long as the merchant detains the suspect with all of the following, except:

on camera

Which of the following is NOT true concerning the requirements for an effective assignment? a. The assignment must be voluntary. b. Consideration is required. c. There must be an intention to make the assignee the owner of the right. d. The assignment may be either written or oral.

b. Consideration is required

Which of the following is correct with regard to successive assignments of the same right? a. It is impossible for an assignor to assign the same right more than once. b. In England, the first assignee to notify the obligor prevails. c. The Restatement does not recognize the validity of any successive assignments. d. The majority rule in the United States is that the first assignee to notify the obligor prevails.

b. In England, the first assignee to notify the obligor prevails.

Meg has contracted to paint a portrait of Julio, but dies before completing the portrait. Which of the following is correct? a. Meg's executor must find a capable artist to complete the work to Julio's satisfaction. b. Meg's contractual duty is discharged due to objective impossibility. c. A novation must be entered between Julio and a third person in order to discharge Meg's duty under the contract. d. Meg's contractual duty is discharged due to subjective impossibility.

b. Meg's contractual duty is discharged due to objective impossibility.

exceptions (effect of illegality)

party withdrawing before performance party protected by statute party not equally at fault excusable ignorance partial illegality restitution

definition (acceptance of offer)

positive and unequivocal expression of a willingness to enter into a contract on the terms of the offer

this level of conduct evidences a conscious disregard of or an indifference to the consequences of the act committed

reckless

On November 1, Paula and Roberta enter into a contract where both parties are obligated to perform on December 31. On December 1, Paula tells Roberta, "I can, in no way, perform my duties in our contract." This statement is a(n): a. material alteration. b. anticipatory repudiation. c. nonmaterial breach since the statement is made before December 31. d. accord.

b. anticipatory repudiation.

The voluntary transfer of a contractual right to a third party is known as a(n): a. implied warranty. b. assignment. c. delegation. d. novation.

b. assignment.

The expectation interest is protected by the contract remedy of: a. restitution. b. compensatory damages. c. reliance damages. d. All of the above.

b. compensatory damages.

Bill wants to buy a new car. He goes to the bank to get a loan for the purchase, and signs an agreement to pay $10.00 per month in premiums on a term life insurance policy which names the bank as the recipient of the policy proceeds in the event of his death before the loan is repaid. The bank is a(n): a. incidental beneficiary. b. creditor beneficiary. c. donee beneficiary. d. assignee.

b. creditor beneficiary

Ann, a minor, disaffirmed her agreement to buy $127 worth of cosmetics from Facial Glo Company. She had used up all the eye shadows, lipsticks, and powders. The general rule is that she may: a. disaffirm, but she must pay the asking price of the cosmetics used. b. disaffirm, but she has to return the makeup that is not used up. c. not disaffirm without paying the value of used makeup. d. not disaffirm because she has used the goods.

b. disaffirm, but she has to return the makeup that is not used up.

The exercise of the power to avoid a contract is known as: a. ratification. b. disaffirmance. c. ab initio. d. restitution.

b. disaffirmance

Unless one of the parties contractually assumes the risk, the ____ discharges a contract if supervening circumstances make fulfillment of the purpose which both parties had in mind impossible. a. bankruptcy law b. frustration of purpose doctrine c. perfect tender rule d. subjective impossibility doctrine

b. frustration of purpose doctrine

Arnold and Doug make a contract for Arnold to manufacture five leather chairs of a specified design. Prior to their manufacture, the factory is destroyed in an accidental fire that is no one's fault. The chairs are available from other sources. Arnold: a. must supply the chairs, even if he must buy them elsewhere. b. is discharged from his duty to deliver the chairs by the destruction of the factory. c. has materially breached the contract if he fails to deliver the chairs. d. Both (a) and (c).

b. is discharged from his duty to deliver the chairs by the destruction of the factory.

Lynne agrees to buy Harriette's farm for $100,000 and puts $20,000 down. Then Lynne learns she is allergic to hay and repudiates the contract. If Harriette can sell the farm one month later for $90,000, she may: a. keep Lynne's $20,000. b. keep $10,000 of Lynne's down payment. c. not keep any of the down payment money. d. sue for specific performance.

b. keep $10,000 of Lynne's down payment

the UCC governs the

sale of goods

felony

serious crime punishable by death or imprisonment in penitentiary

criminal law is almost exclusively ___

statutory

interpretation of contracts

the ascertainment of the meaning of a promise or agreement or a term of the promise or agreement

rights of assignee

the assignee stands in the shoes of the assignor

stipulated provisions in the offer (effective moment)

the communication of acceptance must conform to the specifications in the offer

which of the following is correct with respect to the reasonable person standard when there is an emergency?

the court will take into consideration the fact that he was at the time confronted with a sudden and unexpected emergency

exculpatory clauses

the courts generally disapprove of contractual provisions excusing a party from liability for his own tortious conduct

violations of statutes general rule

the courts will not enforce agreements declared illegal by statute

which of the following is a goal of an arraignment?

the defendant is informed of the charge and enters a plea

which of the following is correct with respect to an indictment?

the grand jury issues an indictment if it finds sufficient evidence to justify a trial on the charges alleged

consideration definition

the inducement to enter into a contract

successive assignments of the same right

the majority rule is that the first assignee in point of time prevails over later assignees; minority rule is that the first assignee to notify the obligor prevails

substituted contracts

the parties agree to rescind their original contract and to enter into a new one; rescission and new contract are supported by consideration

capacity

the parties to a contract must have contractual capacity

mutual assent

the parties to a contract must manifest by words or conduct that they have agreed to enter into a contract

sale of a business

the promise by the seller of a business not to compete in that particular business in a reasonable geographic area for a reasonable period of time is enforceable

legality of object

the purpose of a contract must not be criminal, tortious, or otherwise against public policy

authorized means (effective moment)

the restatement and the code provide that, unless the offer provides otherwise, acceptance is authorized to be in any reasonable manner

James offers to sell four acres of land to Jennifer for $8,000 and further offers to keep the offer open for one month if Jennifer will pay him $100 for the privilege. Jennifer pays James $100. Which statement describes the payment of $100?

this created an option contract

Stewart entered into a contract with Will to have Will build a 10-unit apartment complex on Elm Street in Randolph County. Unknown to both parties, this land had recently been rezoned and only single-unit dwellings can be constructed.

this is a mistake in law which is treated no differently than a mistake in facts

improper threats (duress)

threats or acts, including economic and social coercion, render the contract voidable

which of the following is a principal objective of a tort

to compensate persons who sustain harm or loss resulting from another's conduct

partial assignment

transfer of a portion of contractual rights to one or more assignees

delegation of duties

transfer to a third party of a contractual obligation

a conditional promise is generally considered sufficient consideration

tru

gratuitous promises are not legally enforceable, except in certain circumstances

tru

A mental condition that impairs a person's ability to act in a reasonable manner is one type of mental incompetence.

true

A merchant buyer who has rightfully rejected goods must follow reasonable instructions from the seller regarding care of goods that threaten to decline in value.

true

A recent trend is to limit or relax usury statutes, and most states now allow credit card companies to charge whatever interest rate they wish.

true

Abco Corp. is building a new office tower. Ace Plumbing Supplies refuses to provide plumbing materials on credit to the plumbing subcontractor on the building. Abco promises Ace that it will pay for the materials if the subcontractor does not. Abco's oral promise is enforceable

true

After a bulk sale, the goods in possession of the buyer continue to be subject to the claims of the seller's unpaid creditors

true

After passage of a week, the buyer of six crates of ripe strawberries will be deemed to have accepted the goods.

true

Al, the bus driver on a cross country Greyhound, kisses Susie, a passenger, while she sleeps. Al could be sued for battery.

true

Albert breaches a contract with Bill in a state where the statute of limitations is six years. Seven years later Bill wants to sue. The contract is unenforceable, but it is neither void nor voidable.

true

Carrie, age 14, contracted to buy a fur coat by mail. If the coat manufacturer found out Carrie's age, they could refuse to enter into a contract with Carrie

true

Dividing the risk and the shift of allocation of risk are options by agreement of both parties.

true

Fungible goods are the equivalent of any other unit of the same kind.

true

Future goods cannot constitute a present sale.

true

If a communication does not create in the mind of a reasonable offeree that his acceptance will conclude in a contract, the communication may be deemed to be part of negotiations.

true

In a contract where there is no shipment of the goods and the seller is a merchant, the risk of loss passes to the buyer when the buyer receives the goods.

true

In order to induce a car dealer to sell her son a car on credit, Mary promises that she will pay for the son's car if the son defaults on his monthly payments to the dealership. Mary's promise must be in writing or have a sufficient electronic record.

true

In some states, minors are liable for contracts involving bank accounts and student loans and cannot avoid these contracts even though they can avoid other types of contracts.

true

In the absence of agreement, payment is due at the time and place the buyer is to receive the goods, even though the place of shipment is the place of delivery.

true

On April l, Marco bought a sailboat from a local marina. The boat was defective and did not turn about properly. Marco used the boat extensively all summer and the boat was no longer in the same condition as when it was bought. By September 30, Marco had waived his right to revoke acceptance.

true

Sandy's private secretary promises not to disclose the contents of a letter she typed if Sandy will give her the next day off with pay. If the secretary takes the day off, Sandy does not have to pay her for the day.

true

Sandy's private secretary promises to keep the contents of a letter she typed secret if Sandy will give her the next day off with pay. If the secretary takes the day off, Sandy does not have to pay her for the day.

true

Sean breaches an agreement in his employment contract with Inmett Corporation by also working for Inmett's major competitor. Sean's promise to Inmett of his exclusive personal services may be enforced by injunction.

true

administrative agencies establish rules, and then act as both prosecutor and judge in determining whether the rules have been violated

true

agencies have been described as the fourth branch of government

true

all federal crimes are statutory

true

an adhesion contract is offered on a "take-it-or-leave-it" basis

true

by common law and the majority view, a minor need only return any property he has received from the other party if the minor wishes to disaffirm the contract. He has no duty to return the property in the same condition in which he received it

true

in exercising judicial review, the court may decide to compel agency action that has been unlawfully withheld by the agency

true

in general, procedural rules are exempt from the notice and comment requirements of the APA

true

incidental damages are those that arise directly out of the breach

true

pointing an unloaded gun at someone who believes it is loaded and threatening to shoot constitutes an assault

true

resp ipsa loquitor permits the jury to infer both negligent conduct and causation

true

rules issued by a government agency can have the same force and effect as legislative statutes

true

scienter is the element of fraud that requires that the person who makes the misrepresentation must know that it is false or must make the statement with reckless indifference as to its truthfulness

true

specific lender usury statutes have all but eliminated general usury statutes

true

substituted contracts immediately discharge the original contracts

true

tender is an offer by a party, who is ready, willing, and able, to perform his obligations under the contract

true

the UCC permits an oral agreement for the sale of goods to be enforced against a party who admits to the contract in court, even though the statute of frauds requires the agreement to be evidenced by a writing

true

the possessor of land is under a duty to exercise reasonable care for the safety of discovered trespassers and to warn them against dangerous conditions

true

the promise to perform a preexisting duty is not sufficient legal consideration to a contract

true

the statute of frauds applies tto executory contracts only

true

the term "eminent domain" refers to a government taking of private property

true

the term "eminent domain" refers to a governmental taking of private property

true

the tort of appropriation is also known as the right of publicity

true

the ultimate question in undue influence cases is whether the transaction was induced by dominating either or both the mind or emotions of a submissive party

true

where a contract provides for both goods and services, the common law applies if the predominate purpose of the contract is for services

true

specific lender usury statutes have all but eliminated general usury statutes

true?

effect of noncompliance within statute of frauds for oral contract

unenforceable

procedural unconscionability

unfair or irregular bargaining

unconscionable contracts

unfair or unduly harsh agreements are not enforceable

common law restraint of trade

unreasonable restraints of trade are not enforceable

when does acceptance of an offer to enter into a unilateral contract generally occur

upon substantial performance by the offeree

louise makes a material misrepresentation of fact regarding her motorcycle to Thelma, who agrees to buy the motorcycle based upon misrepresentation. This contract is:

voidable

minors liability on contracts

voidable at the minor's option

a warrant is not required for a search by the police in the situation where:

voluntary consent is given to the search

assignment of rights

voluntary transfer to a third party of the rights arising from a contract so that the assignor's right to performance is extinguished

effect of noncompliance on restitution

when a contract is unenforceable because of the statute of frauds, a party may recover in restitution the benefits conferred on the other party in performance of the contract

parol evidence rule

when parties express a contract in writing that they intend to be the final expression of their rights and duties, evidence of their prior oral or written negotiations or agreements of their contemporaneous oral agreements that vary or change the written contract are not admissible

revocability of assignment

when the assignee gives consideration, the assignor may not revoke the assignment without the assignee's consent

contracts under seal

where still recognized, the seal acts as a substitute for consideration

In which of the following situations would a minor be unable to disaffirm a contract which he had made?

where the minor wishes to perform part of a contract and disaffirm another part of the same contract

in which of the following situations would a minor be unable to disaffirm a contract which he had made

where the minor wishes to perform part of a contract and disaffirm another part of the same contract

Albert read ElectroCorp's ad in the local newspaper advertising a flat-screen TV for $89. Albert rushed to the store to buy the TV only to be told by the salesperson that the ad was a misprint and the price should have been $389. Albert gave the salesperson $89 plus sales tax and demanded the TV.

Albert is merely making an offer to ElectroCorp to buy the TV for $89 plus sales tax

In which of the following situations is restitution available as a remedy?

All of the above are situations in which restitution is available.

In rescinding an executory, bilateral contract, no consideration is furnished. A. True B. False

B

Bill is the accountant for Cheatam and Sons Co. For many years he has kept two sets of books, one with real figures and another with figures he uses when the IRS audits. When Bill, while working on Cheatam's books, is arrested for fraud, what will happen to the books? a. they are privileged communications and therefore are inadmissible as evidence against Bill b. they are protected by the 5th amendment and therefore are inadmissible c. they may be admitted as evidence since they were taken pursuant to a valid arrest d. they may be admitted as evidence only if Bill consented to a search of his offices

C

Conditions may be classified: a. by how they are imposed. b. by when they affect a duty of performance. c. Both (a) and (b); they are not mutually exclusive. d. Neither (a) nor (b).

C

Elmer wrote a letter to his friend Fred offering to sell Fred an 80-acre farm for $300,000. After mailing the letter, Elmer learns that the farm is actually worth $500,000 and changes his mind about selling. a. Elmer has made a firm offer to Fred that cannot be revoked. b. Elmer must keep the offer open, because this is an option contract. c. Elmer can revoke his offer at any time, because there is no consideration to keep it open. d. Elmer is estopped from revoking his offer to Fred.

C

The Code has made certain offers irrevocable without the offeree giving any consideration for the promise to keep the offer open. These offers are known as: a.options. b.variant acceptances. c.firm offers. d.auctions.

C

Donald, a minor, makes a contract to buy a motorcycle. One week later, Donald has his 18th birthday and shortly thereafter tells Albert he will pick up the motorcycle next week

Donald has expressly ratified the contract

Jerome wants to sell his golden retriever to Leroy. Jerome tells Leroy that the dog is three years old, and that he will point and retrieve. Although the dog is three years old and will point at birds, he will not retrieve. Leroy relies on Jerome's statements and purchases the bird dog. The buyer has most probably been a victim of: a.duress. b.undue influence. c.fraud in the execution. d.fraud in the inducement.

D

Jim contracted with Kevin to serve as a guide for Kevin on his three-week fishing trip to Canada. The contract was made on April 1 with the trip to begin on June 1. On May 1, Kevin notified Jim that he had changed his mind and would be unable to make the trip. He also refused to pay Jim any compensation. a. Because the contract is executory, Jim has suffered no damages, and Kevin has no obligation to pay any compensation. b. Kevin has anticipatorily repudiated the contract and is liable to Jim for damages. c. Jim is discharged from his duty to serve as guide, and he may bring suit immediately against Kevin. d. Both (b) and (c) above are correct.

D

John is a white Haitian who has obtained U.S. citizenship. State X passes a law that all Haitian-born citizens must submit to AIDS testing. The courts will review this law based on: a. deference to the legislature as to whether such a classification of persons is constitutionally permissible. b. whether there is clear and convincing evidence that there is no reasonable basis for the legislation. c. the rational relationship test. d. the strict scrutiny test.

D

Mike makes an offer to Ike, but before Ike can accept, Mike dies. Ike indicates acceptance to Mike's heirs. Mike's heirs: a. may treat Ike's acceptance as a new offer. b. are bound by the contract. c. are not bound by a contract. d. Two of the answers are correct.

D

Which of the following is correct with regard to consideration? a.In a unilateral contract, a promise is exchanged for an act or forbearance to act. b.In a bilateral contract, there is an exchange of promises. c.Legal sufficiency is always related to adequacy of consideration. d.Two of the answers are correct.

D

when does acceptance of an offer to enter into a unilateral contract generally occur? a. upon notice of intent to accept by the offeree b. upon full performance by the offeror c. upon commencement of performance by the offeree d. upon substantial performance by the offeree

D

which of the following can be raised as a defense to a claim of defamation? a. that there was a conditional privilege to publish a defamatory statement in order to protect a legitimate self-interest b. that there was a constitutional privilege to comment about the plaintiff who is a public figure and that the statement was made without malice c. that the internet service provider was publishing information regarding information originating from a third party d. all of the above

D

The right to property other than money, such as goods or land, is not assignable.

False

the statute of frauds generally requires that both parties sign the writing

False

the word "parol" literally means release

False

Fay, age 17, ordered a pair of skis on the installment plan. She paid $20 every month until she turned 18, the age of majority. The next day, she sold them to Sharon and disaffirmed the contract. What result?

Fay is still liable because selling the skis amounts to a ratification

A and B enter into a contract on January 1 of this year. A's friend C tells A, "The law generally restricts the time within which an action can be brought by either party to a contract." C's statement is: a. false. b. true, because of statutes of limitation. c. true, because of the law of repudiation. d. true, because of covenants not to sue.

B

a contract for the sale of a copyright is governed by Article 2 of the UCC

F

defenses to defamation

-absolute privilege, conditional privilege, constitutional privilege

Glen noticed Miguel and his pregnant wife Jacki walking down the street and drove his car within inches of Miguel as a joke. Miguel wasn't injured, but his wife suffered severe mental distress and needed to be hospitalized in order to save the pregnancy

-glen has committed the tort of infliction of emotional distress against Jacki

eminent domain

-gov power to take private property for public use with just compensation

Barry and Greg are roughhousing in their grandparents' yard when Greg intentionally pushes Barry onto the neighbor's property

-greg alone is a trespasser

real property

-land and anything attached to it

mala prohibita

-not morally wrong, but declared wrongful by law -driving on the wrong side of the road

bribery

-offer of money or property to a public official to influence the official's decision -crime is committed when the offer is made, whether accepted or not

which of the following constitutes cybercrime?

-operating an illegal gambling site on the internet -hacking into another's online credit card account -posting an infringement of a copyright on one's website

5th and 14th

-prohibit government from depriving life, liberty, or property without due process

probable cause

-reasonable belief of the offense charged

rational relationship test

-regulation conceivably bears some rational relationship to a legitimate government interest that the regulation will attempt to further -least rigorous -economic regulation -strong presumption that the action is constitutional

strict scrutiny test

-regulation must be necessary to promote a compelling government interest -most exacting level of scrutiny -determine if constitutionally permissible -affects fundamental rights or involves suspect classifications (race or national origin)

commercial speech

-related to the economic interests of the speaker and the audience -protection because of the interest of the advertiser, consumer, and general public -not complete protection because it is less valuable and less vulnerable than other varieties of speech

the federal government in the sunshine act

-requires the meetings of many federal agencies to be open to the public -applies to multi member bodies whose members the president appoints with the advice and consent of the senate -allows agencies to generally close meetings on the same grounds upon which they may refuse disclosure of records under the freedom of information act

bill of rights

-restricts powers of the federal government -establishes civil and political rights

concurrent powers

-taxation, spending, police power

An intentional breach of contract is generally held to be material. A. True B. False

A

Another name for an indictment is a/an: a. true bill b. arraignment c. information d. preliminary hearing

A

Cora and Bruce have an executory contract for the sale of some goods. Cora files for bankruptcy and is then discharged by the bankruptcy court. Cora has no obligation to perform under the contract. A. True B. False

A

James offers to sell his fishing boat to Brenda for $3,000. Brenda says she will apply for a loan and will buy the boat within a week. A contract is formed: a. when Brenda tells James she will buy the boat b. when Brenda gets the money from the credit union c. when Brenda applies for the loan at the credit union d. only when James gets the $3,000

A

Mark agrees to a three-year employment contract with State University as long as they become accredited after one year. This contract contains a "condition subsequent." A. True B. False

A

Mike tries to sell his car to Martha for $42,000. Mike tells Martha, "I paid $50,000 for the car three years ago and it's worth twice that today." Mike really paid $49,756 for the car. If Martha buys the car, basing her decision on Mike's statement, which of the following correctly states the situation? a. Mike's statements amount to puffing only and will not affect the validity of the contract b. Mike's statements provide grounds to set the contract aside c. Mike's statements are actionable only if found to be intentional d. Mike's statements are both misrepresentations of fact, the basis of actionable fraud

A

Robert and John entered into a contract. If Robert agrees to a rescission of the contract, he will be unable to sue John for damages. A. True B. False

A

Substituted contracts discharge the original duties immediately. A. True B. False

A

The law assumes that respective performances under a contract are concurrent conditions, unless there is an agreement to the contrary. A. True B. False

A

William has a contract to build a new office building for Angela. The contract contains a provision requiring William to furnish a certificate of occupancy from the building inspector before Angela is required to pay. This provision is: a. an express condition. b. an implied-in-fact condition. c. an implied-in-law condition. d. a condition subsequent

A

damges for reliance include expenses for: a. preparing to perform b. lost profits c. punishments of the breaching party d. injury to the person

A

Terri owes Mickey $125 to be paid by December 31. In consideration of Terri paying him $75 on July 4, Mickey agrees to discharge the debt. a.Mickey's promise of discharge is not binding because of lack of legal consideration. b.Mickey's promise of discharge is binding because early payment is sufficient legal consideration. c.Terri's payment of $75 was no legal detriment to the promisee because she was under preexisting legal obligation to pay that much and more. d.Two of the answers are correct.

B

Barbara owes Arturo $2,000. On July 1, Arturo assigns the debt to Charles. Thereafter on July 15, Arturo assigns the same right to Dennis, who in good faith gives value for it and knows nothing about the first assignee. Dennis immediately notifies Barbara of the assignment. a. Under all of the rules, Charles has priority since he was the first assignee in time. b. Under the majority rule, Dennis has priority. c. Under the English Rule, Dennis has priority. d. Under the English Rule, Charles has priority.

C

Because defamation involves a communication, the protection of the __________ Amendment applies. a. Fourth b. Fifth c. First d. Fourteenth

C

Jason's mother would like him to go to college, so in June he enrolls at State University. He also quits his job and tells his mother his plans to continue taking classes. His mother says, "I'm so happy that you are going to college that I want to pay for your books." Jason then sends her a bill for $485. Which of the following is true regarding his mother's promise? a. it is enforceable, because Jason returned to college b. it is enforceable, because Jason is giving up the right to do something else c. it is unenforceable, because it is a unilateral contract d. it is unenforceable, because Jason has already been enrolled in school and there is no consideration

D

Under substantive due process, legislation affecting which of the following would be strictly scrutinized as affecting fundamental rights? a. The right to receive federally guaranteed student loans. b. The right to marry someone from a particular ethnic background if both parties wanted to marry. c. The right of free speech. d. Both (b) and (c).

D

Which of the following is not an element for fraud in the inducement? a.Representation b.A fact c.Materiality d.Negligence in verifying fact

D

Maria posted several signs in the neighborhood offering $50 for the return of her lost cat. Dave calls to get a description of the cat and tells Maria, "I'll look for your cat". A contract is formed bu Dave's call to Maria

F

an agreement to pay a public officer something extra for performing his official duty is enforceable

F

A gratuitous assignment is always revocable.

False

Consideration is required in order to have a valid assignment.

False

Donee beneficiaries and incidental beneficiaries are called intended beneficiaries.

False

Edward, an engineer, is working on a new design for some highly technical equipment which XYZ, Inc. hopes to market within the next five years. The employment agreement between Edward and XYZ states that Edward will not go to work for another company in the same business for a period of two years after termination of his employment with XYZ, Inc. This agreement is void and unenforceable, because it would make it difficult for Edward to find other employment.

False

Equitable remedies are available any time the plaintiff chooses them over money damages.

False

Generally, rights under an option contract are not assignable.

False

The Restatement adopts the majority American rule and provides that, where there are successive assignments of the same right, the first assignee in point of time prevails.

False

The UCC imposes a writing requirement on all assignments of $500 or more.

False

The UCC prohibits assignments of $5,000 or more.

False

The law governing assignments arises solely from the common law of contracts.

False

Fred contracts to sell a certain tract of land to Maria for $20,000, but the contract is silent as to the time of delivery of the deed and payment of the price. a. The payment of the $20,000 and the delivery of the deed are independent of each other. b. The delivery of the deed is a condition subsequent to the payment of the $20,000. c. The payment of the $20,000 and the delivery of the deed are mutually dependent and, in the absence of an agreement to the contrary, are concurrent conditions. d. The payment of the $20,000 is a condition precedent to the delivery of the deed.

C

Russell promises Marty $1,500 if he will completely landscape Russell's yard. Which of the following would discharge Russell's obligations to pay under this contract? a. Marty leaves a one-foot strip of land barren. b. Marty doesn't begin work on the landscaping until after he finishes two other jobs. c. Marty doesn't plant any flowers, shrubs, or grasses. d. Russell isn't satisfied with Marty's design.

C

an adhesion contract is offered on a "take-it-or-leave-it" basis

T

death or insanity of either the offeror or the offeree terminates the offer

T

in most, if not all, cases where there is a legal detriment to the promisee, there is also a legal benefit to the promisor

T

the common law governs all contracts outside the scope of Article 2 of the UCC

T

assumption of risk of mistake

a party may assume the risk of a mistake

moral obligation

a promise made to satisfy a preexisting moral obligation is generally unenforceable for lack of consideration

The majority of states follow the ____ rule in awarding damages for fraud. a. benefit-of-the-bargain b. out-of-pocket c. liquidated d. restitution

a. benefit-of-the-bargain

goods are

all property other than an interest in land

one-year provision

applies to contracts that cannot be performed within one year -possibility test -computation of time (year runs from time agreement is made) -full performance by one party (makes the promise of the other party enforceable under majority view)

Busby contracts to build a house for Connell. Busby finishes approximately half of the house and quits. Connell files suit against Busby. Which remedy is not available to her? a. Compensatory damages b. Specific performance c. Special damages d. Incidental damages

b. Specific performance

Sam, a shopkeeper, dies unexpectedly at the age of 46. His lifelong business associate, Paul, is appointed the administrator of the estate. Sam had a personal debt of $8,000 which he owed to Art's Appliance Store. Paul says to Art, "If there isn't enough money in the estate, I'll personally see that the bill is paid." Which of the following is correct? a. The oral statement is enforceable because Paul is the administrator. b. An oral statement such as this is not enforceable because it is outside the statute of frauds. c. An oral statement such as this is not enforceable because this promise is within the statute of frauds. d. The oral statement is enforceable because it is a collateral promise.

C

The defense of entrapment arises when: a. a law enforcement official induces a person to commit a crime whether that person, under ordinary circumstances, would have done so or not b. any person induces any other person to commit a crime when the person induce would not have ordinarily done so c. police, government officials, or government agents act to induce an individual to commit a crime when that individual would not ordinarily have done so d. when law enforcement officials act aggressively to prevent a crime

C

bodily contact that is harmful or offensive can give rise to the tort of

battery

mutual mistake

both parties have a common but erroneous belief forming the basis of the contract; renders the contract voidable by either party

intent as used in the law of intentional torts requires an infant to be liable for their intentional torts, if

both the infant's age and knowledge are such that he can form the required intent

Jim stole a computer and then sold it to Jane for $100. Jane has: a.good title to the computer because she paid for it. b.voidable title to the computer. c.a void title to the computer, which is in essence no title. d.none of these.

c

Courts will enforce contracts for the benefit of all but which of the following? a. Donee beneficiaries b. Creditor beneficiaries c. Incidental beneficiaries d. Intended beneficiaries

c. Incidental beneficiaries

the contract clause prevents a state from:

changing contracts after they have been made

criminal law is primarily ___

common law

tort law is primarily ___

common law

the requirement that each party to a contract must intentionally exchange something of value as an inducement to the other party to make a return exchange is known as

consideration

legal sufficiency of consideration definition

consists of either a benefit to the promisor or a detriment to the promisee

implied in fact contract

contract in which the agreement of the parties is inferred from their conduct

option contracts

contract that binds offeror to keep an offer open for a specified time

executory contract

contract that has yet to be fully performed

Garrett ordered 100 pieces of 2 6 lumber from his supplier and paid upon delivery. Later, when he unpacked the lumber, he discovered that the supplier had delivered 2 4 lumber. After being notified, the supplier picked up the lumber, apologized, and gave Garrett his money back. The response the supplier made to rectify the breach is: a. an injunction. b. mitigation. c. liquidation of damages. d. None of the above

d. None of the above

Edward, an engineer, is working on a new design for some highly technical equipment which XYZ, Inc. hopes to market within the next five years. The employment agreement between Edward and XYZ states that Edward will not go to work for another company in the same business for a period of two years after termination of his employment with XYZ, Inc. This agreement is void and unenforceable, because it would make it difficult for Edward to find other employment.

false

Ricardo posts a sign in the neighborhood offering $50 for the return of his Saint Bernard. Alicia, who knows nothing of the reward, finds the dog and returns it to Ricardo. Alicia is entitled to the reward.

false

Robert and John entered into a bilateral contract and Robert has fully performed. Their mutual rescission of the contract is binding at common law.

false

The UCC and the common law are essentially the same in regard to their treatment of risk of loss or damage to identified goods.

false

a contract may not be formed by conduct

false

a person who has made a financially unsound contract may be relieved from performance under the doctrine of commercial impracticability

false

a plaintiff who has not sustained any loss resulting from the defendant's breach of conract cannot recover any damages

false

fraud in the execution is a fairly common occurrence and involves defrauding a person as to the very nature of the contract

false

in an employment agreement with Carl, Arnold promises to work for Carl for the rest of his life. This promise must be evidenced by a writing to be enforceable

false

in an employment contract with Carl, Arnold promises to work for Carl for the rest of his life. This promise must be evidenced by writing to be enforceable

false

only if the act or threat would affect a person of average strength and intelligence will the act constitute duress

false

parties to a contract can only indicate their assent to a contract by words, either oral or in writing

false

past actions unbargained for by the parties in an agreement can become valid consideration for a contract

false

punitive damages are another form of compensatory damages

false

the two basic elements to consideration are legal adequacy and a bargained-for exchange

false

the uniform commercial code follows the common law rule that requires a modification of an existing contract be supported by consideration in order to be valid

false

Sam wants to sell his Golden Retriever to Jordan. Sam tells Jordan that the dog is three years old and that he will point, back, and retrieve. Although the dog is three years old and will point at birds, he will not back (honor another dog's point). Jordan relies on these statements and purchases the bird dog. The buyer has most probably been a victim of:

fraud in the inducement

rejection

refusal to accept and offer terminates the power of acceptance

If a restriction in an employment contract is found to be too harsh, a court may do any of the following EXCEPT:

refuse to void the restriction

fraud in the inducement

renders the agreement voidable if the following elements are present: false rep, fact, materiality, knowledge and intention, justifiable reliance

general contract provisions

specify the parties specify subject matter and essential terms be signed by party to be charged

effect of noncompliance for full performance

statute does not apply to executed contracts

undue influence

taking unfair advantage of a person by reason of a dominant position based on a confidential relationship renders the contract voidable

the criminal law is similar to tort law, but there are some significant differences. These differences are:

the burden of proof is on the prosecution is to prove guilt beyond a reasonable doubt in criminal law

"factual cause" in negligence cases is also known as

the but-for test

what duty of care is owed by a possessor of land to adult trespassers?

the possessor is not liable to adult trespassers for failure to maintain land in a reasonably safe condition

which of the following is found in the sixth amendment to the US constitution?

the right to an attorney

Fred is a concert violinist who is scheduled to perform at Carnegie Hall for the first time. He buys what he is told is a Stradivarius violin from a well-known, reputable dealer in quality violins, and he pays the going rate for a Stradivarius. He later learns the violin is an imitation, although it is such a good imitation that even the dealer thought it was authentic.

the sale is voidable by the purchaser for mutual mistake

John is a white Haitian who has obtained US citizenship. State X passes a law that all Haitian-born citizens must submit to AIDS testing. the courts will review this law based on:

the strict scrutiny test

The crime of larceny includes in its definition:

the trespassory taking and control of personal property

intended beneficiaries

third parties intended by the two contracting parties to receive a benefit from their contract

delegatee

third party to whom the delegator's duty is delegated

Tim and his friend are playing catch in the back yard when Tim suddenly throws the ball over the fence into the neighbor's yard where it breaks a window. This is trespass to real property, even if Tim himself does not go onto the property to get the ball.

true

Title does not pass in a lease.

true

for the purpose of procedural due process, ___ includes certain entitlements conferred by government such as social security payments and food stamps a. the right of free speech b. equal protection c. property d. liberty

C

the contract clause prevents a state from: a. making contracts with private individuals b. affeting any agreements between two parties c. changing contracts after they have been made d. contracting with another state

C

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

C

In general, the law will grant relief in a situation involving mistake only where there is a ________ mistake involving a/an ________. a.unilateral; opinion b.unilateral; fact c.mutual; issue of law d.mutual; material fact

D

Hilda threatens to hit Johnny on the head with a baseball bat unless Johnny signs a real estate contract giving Hilda ownership of the Summit Ridge Apartments. Johnny reads the contract and signs it. a.The agreement is void. b.This contract is voidable at Johnny's option. c.This is an example of economic duress. d.All of these are correct.

A

Louis agreed to provide all the apples that Cindy's Cider Mill will need at $3 per bushel unless weather conditions require additional labor to be hired. The rate would then be $3.50 per bushel. A freeze warning required Louis to hire 100 additional overtime workers, raising the cost per bushel to $4.75. Louis wants to get out of his contract. Can he? a. No, the parties expected the hardship and provided for it in their contract b. No, there is no hardship c. Yes, the contract is impracticable d. Yes, the freeze is a supervening event

A

Lynn, who is a tailor, agrees to sew a pair of drapes for Zach's living room. Zach promises to pay Lynn $300. Lynn completes the drapes using material selected by Zach, but Zach is not satisfied and refuses to pay for them. a. Whether Zach will have to pay for the drapes depends upon whether as a reasonable man he ought to be satisfied. b. The standard applied here is a subjective standard of satisfaction. c. The condition of satisfaction is an implied-in-law condition. d. The condition of satisfaction is an express condition

A

the division of governing power between the federal government and the states is: a. federalism b. preemption c. supremacy d. separation of powers

A

what happens if the police illegally seize evidence in violation of the 14th amendment? a. the evidence will be excluded from use at trial b. the defendant's arrest is nullified c. the defendant is entitled to another trial d. the defendant will be paid for the expenses of his defense

A

which of the following is a collateral promise? a. a mother tells a merchant to extend $1,000 worth of credit to her son and signs an agreement that says "if he doesn't pay, I will" b. Andrew promises Donald hat if Donald cannot pay his bills, Andrew will c. a father tells a merchant to deliver a computer to his daughter and says, "send me the bill. I'll pay for it" d. all of the above

A

which of the following is enforceable without consideration? a. a new promise to pay a debt barred by the statute of limitations b. an illusory promise c. a promise to supply all of the materials a manufacturer will need for the production of a certain item for a specified perior of time d. a promise exchnged for a forebearance

A

Which of the following is correct with respect to election of remedies?

A person who seeks an injunction may also seek incidental damages for the breach.

Paul, a contractor, has a contract to build a new office building for Bill. The contract contains a provision requiring Paul to furnish a certificate of occupancy from the building inspector before Bill is required to pay. This provision is: a. an express condition. b. an implied-in-fact condition. c. an implied-in-law condition. d. a condition subsequent.

A. express condition

ABC, Inc. calls the Widget Corporation of America to order 400 widgets at $2 a widget. Widget accepts the oral order and then sends out an order confirmation form, with the pre-printed name Widget Corporation of America on the top of the form. The form states that an order has been received for "300" widgets and that it will be filled promptly.

ABC can enforce the contract for 300 widgets, but not for 400 widgets

"scienter" is a legal term which means: a. that a buyer has justifiably relied upon the seller's representations b. that the seller had knowledge that his statements are false and had the intention to decieve c. sales puffery d. all of the above

B

A bank robbery has occurred, and the banker's association has offered a $1,000 reward for information leading to the arrest and conviction of the robber. Several people are claiming to be entitled to the money. Which of the following is eligible? a.The employees of the bank who signed an employment contract to provide their best efforts to apprehend and convict perpetrators of theft crimes in connection with their work at the bank. b.An off-duty deputy sheriff from a county other than the one where the arrest occurred. c.An on-duty sheriff's deputy in the county where the arrest occurred. d.None of these are eligible.

B

A breach of contract always discharges the injured party from performance under the contract. A. True B. False

B

A change in Sal's financial condition, making it impossible for him to fulfill a contractual obligation, would be considered objective impossibility, which would discharge his contractual duty. A. True B. False

B

A contract contains the provision, "Walter Hamilton promises to pay Faye Weeks $1,200 for a 2003 V-6 motor provided that Phelps' Garage approves the quality of the motor." This provision: a. makes the contract unenforceable since Walter's promise is illusory. b. creates an express condition which must be met before Walter's duty to pay arises. c. cannot create an express condition because it lacks the necessary words "on condition that." d. cannot be valid since it makes Walter's duty to pay dependent upon the opinion of a third party.

B

A novation is an agreement between two parties to have one substitute for the other in a contract. A. True B. False

B

A person who has made a financially unsound contract may be relieved from performance under the doctrine of commercial impracticability. A. True B. False

B

A(n) ___ is a method of discharging a contract in which a third party becomes bound upon a promise to the obligee a. assignment b. novation c. partial assignment d. delegation

B

An agreement of a seller to supply a buyer with all of the buyer's requirements for certain goods is known as: a. a firm offer. b. a requirement contract. c. promissory estoppel. d. an output contract.

B

Any unauthorized alteration of the material terms in a written contract discharges the entire contract. A. True B. False

B

Arnold and Doug make a contract for Arnold to manufacture five leather chairs of a specified design. Prior to their manufacture, the factory is destroyed in an accidental fire that is no one's fault. The chairs are available from other sources. a. Arnold must supply the chairs, even if he must buy them elsewhere. b. Arnold's duty to deliver the chairs is discharged by the destruction of the factory. c. Arnold has materially breached the contract if he fails to deliver the chairs. d. Both (a) and (c).

B

Barry's Sport Shop calls Champs Tee Shirt Company to order 200 designer tee shirts at $2 per shirt. The next day, Barry decides he can easily sell 100 more. Before the order is filled, he calls to change the order to 300 tee shirts. Champs sends 200. Can Barry force Champs to send the additional 100? a. No, because there is no consideration for the extra 100 shirts b. No, because Barry does not have a writing signed by Champs Tee Shirts c. Yes, because this is a subsequent modification of the original contract d. Yes, because Champs Tee Shirts is a merchant within the meaning of Article 2 of the UCC

B

Bart sends Carla an offer by express mail. Carla receives it at 10 a.m. on Tuesday. At 11 a.m. on Tuesday, Carla delivers an acceptance to Federal Express, but due to an error, the letter is not sent out by the company until Wednesday at 8 a.m. At what time does the law consider the acceptance to be effective? a. 10am on tuesday b. 11am on tuesday c. 8am on wednesday d. at the time Bart receives the letter

B

Before granting an injunction enjoining a former employee from competing in a described territory, the courts insist that the employer demonstrate that the restriction is ________ to protect the employer's legitimate interests. a.exculpatory b.necessary c.unconscionable d.usurious

B

Caroline signs a contract to work as a sales rep for Incellmed Corporation for a period of two years. This contract is governed by: a. Article 2 of the UCC b. state common law c. federal statute d. the law of quasi contract

B

Elmer promises to pay Enrique $100 if Enrique will register and vote in the next election as a Republican. a.This is a valid contract. b.This is an illegal contract. c.This is an adhesion contract. d.This is a usurious agreement.

B

Forrest has a contract with Denzel to construct a new condominium complex. The contract provides that Forrest must furnish a certificate of occupancy and conformity with the local fire code before Denzel has an obligation to pay. The furnishing of the certificate is an implied in fact condition subsequent to the construction of the building. A. True B. False

B

If there is a novation, the original promisor remains liable to the original promisee if the new promisor fails to perform. A. True B. False

B

In Anderson v. McOskar Enterprises, Inc., the court defined the criteria used to identify when an exculpatory clause is valid. These criteria include all of the following except: a.it is limited in scope. b.it is ambiguous. c.it is not contrary to public policy. d.None of these are exceptions.

B

In all substituted contracts there must be an agreement among three parties where a new promise is substituted for an existing promise or a new promisor is substituted for an existing promisor A. True B. False

B

In building a $30,000 addition to the Murphys' house, the contractor used the wrong flooring, causing the Murphys $2,000 in damages. Under the substantial performance doctrine, the contractor's performance is substantial and therefore he is entitled to the contract price of $30,000, but if the deviation from the specifications were considered material, the Murphys would not have to pay for the addition. A. True B. False

B

In which of the folowing cases would an oral contract be enforceable without a written memorandum? a. Catherine calls Lucky Dude Ranch to purchase a championship race horse they have advertised in the paper b. Michelle calls an employment agency in Paris to arrange for a maid service for her three-month Parisian vacation c. Anna orders a top-of-the-line computer over the phone d. Ron orders three custom-made suits

B

Miller has a contract to sell 1,000 bushels of wheat to a bakery. The wheat is stored in a grain elevator and has become infested with insects. What is the consequence? a. Miller is discharged from performance because of impossibility. b. Miller is discharged because of frustration. c. Miller is not discharged, but must substitute wheat or pay damages to the bakery for breach of contract. d. Miller is discharged if he can prove that he did not cause the damages to his wheat.

C

Nell gives Big Al $50 in return for Al's promise to defame Sara. Nell hopes to ruin Sara's chances of a promotion. Nell finds out that Al did not hold up his end of the agreement. Which of the following statements is true? a.Nell can get the money back from Al through litigation. b.Nell can get the money back and force Al to do as he promised. c.Legally, Nell can neither get the money back nor force Al to do as he promised. d.Nell can force Al to act through an appeal to the courts, but Al gets to keep the $50.

C

Phil, the tax accountant, promises to do Marge's individual federal, state, local, and gift taxes for the year. He completes all but the gift taxes. Under the substantial performance doctrine: a. Marge will not have to pay Phil. b. Marge will not have to accept the work. c. Marge will have to pay Phil for all but the gift taxes. d. Marge will have to pay Phil the contract price.

C

Stan doesn't like having neighborhood teenagers walk across his yard at night. He rigs an animal trap on the path the teenagers usually use to cross his land. One night, Tim and his friends are walking across the yard when Tim gets caught in the trap. He is taken to the hospital for his injuries. a. Tim is a trespasser on Stan's property and therefore Stan has the right to strongly discourage anyone from trespassing b. Stan has no duty toward Tim c. Stan is not free to inflict intentional injury on a trespasser d. all of the above

C

Stan sends for a law school catalog from Ivory Towers University. According to the catalog, the law school applications are evaluated on the basis of undergraduate grades, standardized test scores, and references. Stan, who is a straight-A student, has high test scores and excellent references, applies and pays the $100 application fee. His application is rejected. Later he finds out that others with low grades and test scores were accepted based on their family connections and donations made to the University. If Stan followed all of the guidelines in the college catalog and paid the required application fee, then according to the court in Steinberg v. Chicago Medical School: a. this is not a contract b. this is a quasi contract c. this is a valid contract, the terms of which are set forth in the college catalog d. this is a voidable contract

C

Where there has been informal rulemaking or informal adjudication by an administrative agency and the decision by that agency is then appealed to the courts, the court will generally apply what test in reviewing factual determinations? a. The unwarranted by the facts standard. b. The substantial evidence test. c. The arbitrary and capricious test. d. The beyond a reasonable doubt standard.

C

Which of the following does not legally terminate an offer to enter into a contractual agreement? a. A counteroffer. b. Revocation by the offeror. c. Silence on the part of the offeree. d. Destruction of subject matter of the offer.

C

Which of the following generally is not grounds for discharge of a contract by operation of law? a. Objective impossibility b. Subsequent illegality c. Running of the statute of limitations d. Bankruptcy

C

Which of the following is untrue regarding the contracts of incompetent persons? a. to avoid a contract, a person need not be permanently incompetent b. under the cognitive ability test, a person is incompetent if he is unable to understand the nature and effect of his act c. unlike a minor, an incompetent person can never ratify a contract d. an incompetent person is liable for necessaries

C

while driving his car five miles over the speed limit, Carl struck Darla, who was jaywalking across the street. When the case came to trial, the jury determined that Carl was 60% negligent and that Darla was 40% negligent. Darla's injuries are $10,000. This accident occurred in a state following the comparative negligence theory of recovery. What amount will Darla recover? a. 10,000 b. nothing c. 6,000 d. 4,000

C

Harold hired Blake Painters to paint his house. Blake decides he has too many jobs and delegates the duties to the Andrews Company. If Andrews does a poor job, and drips paint on Harold's flowers and windows, Harold: a. can sue Blake, but he cannot sue Andrews b. can sue Andrews, but he cannot sue Blake c. cannot sue, because he has accepted the benefits of the assignment d. can sue both Blake and Andrews

D

If some terms of a contract are left open, the missing terms can be supplied by the parties as they perform the contract: a. if good faith is used to supply the missing terms. b. if the missing terms are supplied within limits set by commercial reasonableness. c. if it is clear that both parties intended to enter into a binding contract. d. if all of these occur. e. none of these choices; there is no contract if missing terms exist.

D

To accomplish the basic purposes of contract remedies, which of the following limitations have not been imposed upon monetary damages?

Restitution

Vladimir entered into a contract to buy Daniel's collection of rare stamps. Vladimir mailed payment of $10,000 for the stamps to Daniel, but now Daniel tells Vladimir, "I'll never part with these stamps." Are the following remedies available to Vladimir?

Restitution: Yes; Specific Performance: Yes

Al owns a farm that he believes is worth $150,000. Betty knows that there is oil under the farm and offers Al $160,000 for it. Al accepts and sells the farm to Betty. Al later realizes that the land was worth more than $160,000. Al can have the contract avoided based upon fraud.

T

Albert breaches a contract with Bill in a state where the statute of limitations is sex years. Seven years later Bill wants to sue. The contract is unenforceable, but it is neither void nor voidable

T

Sandy's private secretary promises not to disclose the contents of a letter she typed if Sandy will give her the next day off with pay. If the secretary takes the day off, Sandy does not have to pay her for the day

T

a contractual agreement always involves either a promise exchanged for a promise or a promise exchanged for a completed act or forbearance to act

T

a covenant not to compete is a type of restraint of trade that courts will enforce under certain circumstances

T

When a minor falsely advises the other party that he is of the age of majority and based upon that misrepresentation, the other party in good faith enters into a contract with the minor: a. the minor is required to restore the other party to the position occupied before the making of the contract b. the minor has lost his right to disaffirm the contract because of the misrepresentation if the adult party in good faith reasonably relied on the misrepresentation c. the adult party can recover damages from the minor in tort d. there is no uniform rule. states differ, and depending upon the state, any of the above could be correct

D

Which of the following would be considered a material breach of a contract? a. Partial performance that omits some essential part of the contract. b. Delivery of 50 chairs in a contract that calls for 100 chairs. c. An intentional breach of the contract. d. All of the above would be material breaches. e. Only (a) and (b) above would be material breaches.

D

an ad in a newspaper describing the merchandise to be sold and stating prices would generally be considered: a. a firm offer if made by a merchant b. an offer if made by a merchant, but not a firm offer c. an offer irrespective of who made the offer d. an invitation to buyers to make an offer to buy goods

D

in which of the following cases will an oral contract for the sale of goods of $750 be enforceable without a writing? a. the goods are to be specially manufactured for the buyer and the seller has made a substantial beginning of their manufacture b. a party admits in an answer to a complaint in a lawsuit that the contract was made c. delivery and acceptance of the goods has been made d. all of the above

D

promissory estoppel is a contractual doctrine that includes which of the following considerations? a. the courts use the doctrine of promissory estoppel to enforce noncontractual promises b. under this doctrine the promisor reasonably expects that the promisee, in reliance on the promise, will be induced by the nature of the promise to take action or refrain from taking action, and the promisee does so c. the courts will not, under any circumstances, enforce promises that do not include all four of the elements of contract d. both (a) and (b)

D

the legislature may exercise control of administrative agencies in various ways. Thes are: a. through its budgetary power b. through the power to appoint and remove chief administrators c. by amending an enabling statute to increase, modify, or decrease an agency's authority d. (a) and (c) but not (b)

D

Theresa has a contract to teach eighth grade at Washington Middle School. She decided she could make more money writing a book, so she assigns her teaching contract to her friend, Stephanie, who is also a licensed teacher. a. The duties under the teaching contract are nondelegable. b. The duties which Theresa has attempted to delegate are personal in nature. c. If the school district agrees to accept Stephanie's services, a novation would occur, which would relieve Theresa of her obligation to the school district. d. All of the above are correct.

D. all of the above

Stark enters into a contract with a contractor to build a large shopping mall in River City. Donner will benefit from this contract since his restaurant is adjacent to the planned mall. Donner in this instance is a(n): a. implied beneficiary. b. partial beneficiary. c. donee beneficiary. d. incidental beneficiary.

D. incidental beneficiary

"consideration" requires an actual benefit to both sides of an agreement

F

Bill is currently enrolled in law school. He expects to graduate and take the bar exam in order to be able to practice law. Before Bill becomes a lawyer, he promises to represent his friend, Tom, in a breach of contract action if Tom will pay him 25% of the settlement. Bill negotiates and the case settles for $50,000. Tom refuses to pay Bill. Bill then graduates and attempts to sue Tom. Bill has a legal right to enforce the agreement.

F

Matt sells bikes at a local discount store. To encourage Bob to buy a more expensive model than he originally contemplated, Matt tells Bob, "This is the most awesome bike money can buy at this price. You can expect lots of riding pleasure." Based on this statement Bob buys the bike. A week later, before his bike is fully paid for, Bob sees a far superior bike for a lower price at another store. Bob can avoid his contract with Matt because of fraudulent misrepresentation.

F

a bargain by a candidate for public office to make a certain appointment following the election is legal

F

a contract to sell life insurance is covered by Article 2 of the uniform commercial code

F

economic coercion that compels a person to enter into a contract renders that contract void

F

legal detriment means the obtaining by the promisor of that which he had no prior legal right to obtain

F

one meaning of the term "blue laws" is that a lender may only charge a permissible interest rate as established by statute

F

silence can never be an acceptance

F

the UCC applies only to sales of goods by manufacturing firms who ship goods to buyers interstate

F

the intent of an offer is determined by a subjective standard

F

the test for duress is objective and the act must be classified as a tort or a crime in order to be wrongful

F

the two basic elements to consideration are legal adequacy and a bargained-for-exchange

F

under the UCC, an acceptance must always be identical to an offer of that which he had no prior legal right to obtain

F

the ___ is the federal public records statute requiring most records in agency files to be open to the public

FOIA

A creditor beneficiary is a type of incidental beneficiary.

False

A plaintiff who has not sustained any loss resulting from the defendant's breach of contract cannot recover any damages.

False

A valid assignment requires that notice be given to the obligor.

False

An assignor normally guarantees that the obligor will pay the assigned debt.

False

Arthur enters into a contract with Bob as a result of Bob's fraud in the inducement. Under the contract, Bob has the right to the payment of $100. Bob assigns the right to the $100 to Carl. Arthur may not assert the defense of fraud in the inducement to avoid paying Carl the $100.

False

As a general rule, partial assignments of contract rights are not enforceable.

False

Bud drafts and lobbies for a bill which will help senior citizens pay for their prescriptions. Bud visits each legislator and tells him or her why the bill is good for all consumers. He is very convincing and the bill passes. This is a violation of public policy

False

Contractual duties are assignable.

False

Courts of equity will grant specific performance of contracts for personal services.

False

Dana gives care to Marnie's dog when Dana finds Marnie's dog ill on the side of the road. After Marnie locates her dog, Marnie promises to reimburse Dana for the cost of treating the dog. Marnie's promise is binding, because there is a bargained-for-exchange.

False

If the parties to a contract stipulate an amount that will be paid in the event of a breach (a liquidated damages clause), the courts will always enforce it.

False

In a thirdparty beneficiary contract, the third party's rights arise after the contract is made.

False

In the Arrowhead School District No. 75, Park County, Montana, v. James A. Klyap, Jr. case, the court found the liquidated damages clause was void as a penalty because it was unreasonable and unduly oppressive.

False

Incidental damages include lost profits and injury to person or property resulting from defective performance

False

Lauren received a $1,500 scholarship to attend the local community college. She decides not to attend college that year, so she can assign her right to the money to her friend, Sean.

False

Rick has a contract with a home repair company to paint his house and landscape his yard. When he realizes that he will have some unexpected medical expenses, he calls the home Repair Company to cancel the contract. Rick's next door neighbor can sue Rick to enforce the contract, because if Rick improves his own property, his neighbor's property will also be worth more money.

False

Ron owes Lloyd $500 due March 1. Lloyd assigns his right to the money to Lou, but neither Lloyd nor Lou notifies Ron. On March 1, Ron pays Lloyd the $500. Ron is not discharged from his obligation, but is liable to Lou for the money.

False

Harold ordered an aluminum storm door for $249.99. Before it was delivered, the same store from which he ordered the door ran an ad in the paper for the same storm door at $179.99. Harold calls the store and demands the advertised price. They say okay

Harold must pay $179.99

Jan promises Eli $4,000 for one of his original paintings on the condition that she receives $1 million from her mother's will.

Jan's promise is legally sufficient

Mark paid off his brother Steve's debt to their parents in exchange for his parents' promise to discharge Steve. The parents accept the payment. The parents then proceed to sue Steve in small claims court for the payment. Their argument is that the debt was Steve's and Mark had no obligation to pay the debt. There was thus no consideration between the parents and Mark and therefore no contract. Which statement is correct regarding the situation.

Mark's payment is an enforceable bargained-for-exchange between him and his parents. Mark and his parents formed a contract with valid consideration. The debt between steve and his parents is discharged

in which of the following cases would an oral contract be enforceable without a written memorandum?

Michelle calls an employment agency in Paris to arrange for maid service for her three-month Parisian vacation

Mike tries to sell his car to Martha for $42,000. Mike tells Martha, "I paid $50,000 for the car three years ago and it's worth twice that today." Mike really paid $49,756 for the car. If Martha buys the car, basing her decision on Mike's statement, which of the following correctly states the situation?

Mike's statements amount to puffing only and will not affect the validity of the contract

Percy, age 17, purchased a used mobile home from a mobile home dealer for $20,000. This price, however, was twice the reasonable value of the mobile home. One month later, Percy wishes to disaffirm the contract. If the mobile home is considered a necessary, then:

Percy must keep the mobile home but is only liable for the reasonable value of the mobile home

A gratuitous assignment is generally valid and enforceable.

True

A liquidated damage clause that represents a reasonable approximation of the damages where the actual amount would be very difficult to determine will usually be upheld

True

A partial assignment is a transfer of a portion of the contractual rights to one or more assignees.

True

A promisor and a promisee may provide that the benefits under a contract will never vest in a third person.

True

After an assignment, only the assignee has a right to the obligor's performance.

True

An agreement between Greg and Margaret to marry one another cannot be transferred to a third party.

True

An assignor is bound by any express warranties he makes to the assignee with respect to the right assigned.

True

An incidental beneficiary has no right to enforce a contract.

True

Assignment of rights is the voluntary transfer to a third party of the rights arising from a contract.

True

The Restatement and Article 2 of the Code provide that, unless circumstances indicate the contrary, a contract term that prohibits the assignment of a contract bars only the delegation to the assignee of the assignor's duty of performance and does not bar the assignment of contract rights.

True

The purpose of reliance damages is to place the injured party in a position as good as he would have held if the contract had not been made.

True

The student government of State University has a contract with a famous rock band to perform at the university on homecoming weekend. The band cannot assign its rights and delegate its duties under this contract.

True

Third party rights in contracts can arise by assignment of rights, delegation of duties, or express terms in third party beneficiary contracts.

True

Though contractual duties generally are delegable; a delegation will not be permitted if the nature of the duties is personal in that the obligee has a substantial interest in having the delegator perform the contract.

True

Under the rule in Hadley v. Baxendale, only damages foreseeable at the time of entering into the contract can be recovered.

True

Aunt Ellie promises her 21-year-old nephew, Robbie, that she will pay him $100 if he quits smoking for a month. If Robbie does, is there a binding contract?

Yes, because Robbie gave up a legal right

Arthur mails an offer to Brian on June 15. Brian receives the offer on June 16. Arthur mails a revocation of the offer on June 17. Brian mails a letter of acceptance on June 18, and Arthur receives the acceptance on June 20. Brian receives the revocation on June 19. Was a contract formed?

Yes, on June 18

A buyer may cancel a contract for all of the following reasons except: a.substituted performance. b.failure to receive adequate assurance of performance. c.notice of anticipatory repudiation. d.right to cooperation.

a

A buyer may reject goods for even the slightest defect under: a.the perfect tender rule. b.the revocation of acceptance rule. c.the right to cooperation rule. d.all of these.

a

A sale exists after the buyer takes: a. the title to the goods. b. the risk of loss on the goods. c. an insurable interest in the goods. d. a special property in the goods.

a

A sale exists after the buyer takes: a.the title to the goods. b.the risk of loss on the goods. c.an insurable interest in the goods. d.a special property in the goods.

a

A sequence of previous conduct between the parties that may be regarded as establishing an understanding for interpreting an agreement between the two parties is known as: a.a course of dealing. b.good faith. c.a course of performance. d.usage of trade.

a

In a sale on approval: a.possession but not title is transferred to the buyer for a stated period of time. b.possession and title are transferred to the buyer for a stated period of time. c.title but not possession is transferred to the buyer for a stated period of time. d.neither possession nor title are transferred to the buyer.

a

Donald, a minor, makes a contract with Albert, an adult, to buy a computer. One week later, Donald has his eighteenth birthday. If shortly thereafter Donald tells Albert he will pick up the computer the next week: a. Donald has expressly ratified the contract. b. the contract must be renegotiated, because Donald was a minor when it was made. c. Donald can change his mind and avoid the contract, because it was made when he was a minor. d. the contract is void ab initio, because Donald was a minor at the time it was made.

a. Donald has expressly ratified the contract.

If Jana, a minor, transfers property to Scott and Scott sells the property to a good faith purchaser for value before Jana avoids the transfer: a. Jana loses the right to recover the property if the transfer involved goods. b. Jana can recover the property as long as the property was a sale of goods. c. Jana can recover the property whether it was real or personal property. d. the good faith purchaser of goods for value receives a voidable title.

a. Jana loses the right to recover the property if the transfer involved goods.

Louis agreed to provide all the apples that Cindy's Cider Mill will need at $3 per bushel unless weather conditions require additional labor to be hired. The rate would then be $3.50 per bushel. A freeze warning required Louis to hire 100 additional overtime workers, raising the cost per bushel to $4.75. Louis wants to get out of his contract. Can he? a. No, the parties expected the hardship and provided for it in their contract b. No, there is no hardship c. Yes, the contract is impracticable d. Yes, the freeze is a supervening event

a. No, the parties expected the hardship and provided for it in their contract

Tim, who is a minor, enters into a contract with Violet, who is an adult. Which of the following is correct? a. Violet may not disaffirm the contract. b. Violet may disaffirm the contract at any time. c. Violet may disaffirm the contract when Tim becomes an adult. d. Tim may ratify the contract at any time during his minority.

a. Violet may not disaffirm the contract.

A(n) ____ is a contract between a promisee and a promisor by which the promisee agrees to accept and the promisor agrees to render a substituted performance in satisfaction of an existing contractual duty. a. accord b. mutual rescission c. material alteration d. novation

a. accord

William has a contract to build a new office building for Angela. The contract contains a provision requiring William to furnish a certificate of occupancy from the building inspector before Angela is required to pay. This provision is: a. an express condition. b. an implied-in-fact condition. c. an implied-in-law condition. d. a condition subsequent.

a. an express condition

Refusal of a tender of performance by one party to a bilateral contract will: a. be treated as a repudiation, excusing the tendering party from further duty of performance under the contract. b. not discharge either party from further duty of performance under the contract. c. be considered a condition subsequent. d. None of the above.

a. be treated as a repudiation, excusing the tendering party from further duty of performance under the contract.

Mr. Homayer hired Blake Painters to paint his house. Blake decides it has too many jobs and delegates the duties to the Andrews Company. Andrews does a poor job, and drips paint on the Homayers' flowers and windows. Mr. Homayer: a. can sue both Blake and Andrews. b. can sue Blake, but he cannot sue Andrews. c. can sue Andrews, but he cannot sue Blake. d. cannot sue, because he has accepted the benefits of the assignment.

a. can sue both Blake and Andrews.

which of the following would be considered a valid and legally enforceable agreement

an agreement by a car salesman not to sell automobiles or automobile parts in marin county for a period of one year after terminating his employment

tortious conduct

an agreement that requires a person to commit a tort is unenforceable

employment contracts

an employment contract prohibiting an employee from competing with his employer for a reasonable period following termination is enforceable provided that the restriction is necessary to protect legitimate interests of the employer

fact (fraud in the inducement)

an event that occurred or thing that exists

marriage provision

applies to promises in consideration of marriage but not to mutual promises to marry

executor-administrator provision

applies to promises to answer personally for a duty of the decent

suretyship provision

applies to promises to pay the debt of another -promisor must be secondarily liable -original promise -main purpose doctrine to not be of primary objective to be an economic benefit -promise must be made to debtor

land contract provision

applies to promises to transfer any right, privilege, power, or immunity to real property

the intentional conduct by one person directed at another that places the other in apprehension of imminent bodily harm or offensive contact is the tort of

assault

disaffirmance

avoidance of the contract may be done during minority and for a reasonable time after reaching majority

Belinda orders a wedding gown to be specially designed for her wedding. At what point does she obtain a 'special property" interest in the gown? a. When the contract is made. b. When the design is approved and work on the dress is begun. c. When the dress is shipped to Belinda. d. When the dress is received by Belinda.

b

If destruction or casualty to goods, total or partial, occurs after risk of loss has passed to the buyer, who is responsible for losses? a. The seller. b. The buyer. c. Neither party since the goods are damaged. d. The carrier delivering the goods.

b

Pete, a seller in Bradenton, enters into a contract for oranges to be delivered to Molly in Chicago. Title is to remain with Pete until delivery. This is: a.an F.O.B. Bradenton contract. b.a destination contract. c.a shipment contract. d.none of these.

b

When is a buyer deemed to have accepted goods that are delivered pursuant to a contract? a.Immediately upon delivery. b.After a reasonable opportunity to inspect the goods. c.When the goods are paid for. d.Only after express acceptance.

b

Which of the following is/are correct with regard to conditions subsequent? a. Conditions subsequent are quite common in contracts. b. A "sale or return" contract is an example of a contract with a condition subsequent. c. A condition subsequent must occur before performance is due under a contract. d. All of the above are correct.

b. A "sale or return" contract is an example of a contract with a condition subsequent.

A contract by which of the following is void? a. A fourteen-year-old girl. b. A thirty-six-year-old man under a court-ordered guardianship for mental incompetency. c. A thirty-year-old woman who, because of intoxication, is unable to understand the nature and consequences of signing the contract. d. A twenty-five-year-old woman who is unable to understand the nature and effect of signing a contract because of a mental illness.

b. A thirty-six-year-old man under a court-ordered guardianship for mental incompetency.

Blevins, Inc. calls the Widget Corporation of America to order 400 widgets at $2 a widget. Widget accepts the oral order and then sends out an order confirmation form, with the pre-printed name Widget Corporation of America on the top of the form. The form states that an order has been received for "300" widgets and that it will be filled promptly. In this case: a. the order acceptance form fails to meet the writing requirement in the UCC, because it isn't signed. b. Blevins can enforce the contract for 300 widgets, but not for 400 widgets. c. if Blevins signs and returns the form, it will be able to sue for the extra 100 widgets later. d. the contract is enforceable for 400 widgets, because it has been partially performed.

b. Blevins can enforce the contract for 300 widgets, but not for 400 widgets.

Chris receives a printed form in the mail from Wyandott Heating indicating that he has placed a telephone order for a $600 heater. He doesn't recall placing the order. Which of the following is correct? a. Wyandott can hold Chris to the order. b. Chris can hold Wyandott to the order. c. Neither party is bound, because there is no signed writing. d. Chris is bound if he makes no objection within 10 days.

b. Chris can hold Wyandott to the order.

Barry's Sport Shop calls Champs Tee Shirt Company to order 200 designer tee shirts at $2 per shirt. The next day, Barry decides he can easily sell 100 more. Before the order is filled, he calls to change the order to 300 tee shirts. Champs sends 200. Can Barry force Champs to send the additional 100? a. No, because there is no consideration for the extra 100 shirts b. No, because Barry does not have a writing signed by Champs Tee Shirts c. Yes, because this is a subsequent modification of the original contract d. Yes, because Champs Tee Shirts is a merchant within the meaning of Article 2 of the UCC

b. No, because Barry does not have a writing signed by Champs Tee Shirts

Which of the following is a contract with a condition subsequent? a. Rhonda enters into a contract to buy a new car conditional upon her getting a loan from her bank. b. Roger bought a DVD player, but he may return it within ten days and get all of his money back. c. Both (a) and (b) are examples of a condition subsequent. d. Neither (a) nor (b) is an example of a condition subsequent.

b. Roger bought a DVD player, but he may return it within ten days and get all of his money back.

Which of the following is untrue with regard to the interpretation of contracts? a. Express terms prevail over course of performance, and course of performance prevails over course of dealing. b. Technical terms will always be given technical meaning even where a different intent is manifested by the parties. c. Handwritten or typed terms are given greater weight than preprinted terms. d. All writings that are part of the same transaction are interpreted together.

b. Technical terms will always be given technical meaning even where a different intent is manifested by the parties

Under the UCC statute of frauds, which of the following terms must be included in a writing in order to satisfy the writing requirement? a. The price of the goods b. The quantity of the goods c. The signatures and names of the buyer and the seller d. The time and place for delivery

b. The quantity of the goods

Which of the following is not true regarding the contracts of incompetent persons? a. An incompetent person is liable for necessaries. b. Unlike a minor, an incompetent person can never ratify a contract. c. To avoid a contract, a person need not be permanently incompetent. d. A person is competent unless he is unable to understand the nature and effect of his act.

b. Unlike a minor, an incompetent person can never ratify a contract.

In which of the following situations would a minor be unable to disaffirm a contract which he had made? a. Upon restoring the consideration received in a situation involving a fully executed contract b. Where the minor wishes to affirm part of a contract and disaffirm another part of the same contract c. During the time of his minority or for a reasonable time thereafter d. None of the above.

b. Where the minor wishes to affirm part of a contract and disaffirm another part of the same contract

Annette entered into a contract with a local truck dealer to have a new truck delivered to her daughter, Sue, as a graduation present. In this contract, Sue is: a. an incidental beneficiary. b. a donee beneficiary. c. a creditor beneficiary. d. an assignor.

b. a donee beneficiary.

A contract contains the provision, "Walter Hamilton promises to pay Faye Weeks $1,200 for a 2005 V-6 motor provided that Phelps' Garage approves the quality of the motor." This provision: a. makes the contract unenforceable since Walter's promise is illusory. b. creates an express condition which must be met before Walter's duty to pay arises. c. cannot create an express condition because it lacks the necessary words "on condition that." d. cannot be valid since it makes Walter's duty to pay dependent upon the opinion of a third party.

b. creates an express condition which must be met before Walter's duty to pay arises

Randy, a minor, buys a new four-wheel drive truck from the Jones Dealership. Randy sells this truck to his cousin, Steve, who is an adult. Steve conveys this vehicle to Arthur Smith. Arthur does not personally know Steve or Randy. Randy may: a. recover the vehicle from Mr. Smith. b. not recover the vehicle from Mr. Smith. c. hold Steve liable in tort. d. recover the reasonable value of the vehicle from Mr. Smith but not the vehicle itself.

b. not recover the vehicle from Mr. Smith.

Howard needs a truck to pull a 2,000-pound trailer. Gordon tells Howard, "My truck will pull a 2,000-pound trailer with ease." Relying on Gordon's statement, Howard buys the truck, but it will not pull a 2,000-pound trailer. If Gordon did not intend to deceive and Howard sues for nonfraudulent misrepresentation, he can recover: a. punitive damages, but not out-of-pocket damages. b. out-of-pocket and consequential damages, but not punitive damages. c. out-of-pocket damages plus punitive damages. d. nominal damages, because Howard should have known the capacity of the truck.

b. out-of-pocket and consequential damages, but not punitive damages

Under Section 2-210 of the Code, unless circumstances indicate to the contrary, a contract that prohibits an assignment: a. prohibits both an assignment of rights and a delegation of duties under the contract. b. prohibits only a delegation of the delegator's duty of performance and not the assignment of rights. c. renders any subsequent assignment ineffective. d. Both (a) and (c).

b. prohibits only a delegation of the delegator's duty of performance and not the assignment of rights.

E-Sign provides consumers must: a. evidence their consent on paper to conducting transactions with electronic records after being informed of the types of hardware and software required. b. receive a "clear and conspicuous" statement informing them of their right to withdraw consent to receiving electronic records. c. receive a "clear and conspicuous" statement informing them of their right to have the record provided only in electronic form. d. All of the above.

b. receive a "clear and conspicuous" statement informing them of their right to withdraw consent to receiving electronic records.

The process whereby a court "rewrites" or "corrects" a written contract to make it conform to the true intentions of the parties is: a. injunction. b. reformation. c. specific performance. d. rescission.

b. reformation.

The return to the aggrieved party of the consideration, or its value, which he gave to the other party is: a. injunction. b. restitution. c. specific performance. d. reformation.

b. restitution.

Carolyn agrees to sell Marianne an antique handmade lace tablecloth for $1,500. When Carolyn discovers that her cousin wants it too, she breaks the contract with Marianne. Marianne can ask the court to order: a. nominal damages. b. specific performance. c. restitution. d. equitable rescission.

b. specific performance.

Fay, age 17, ordered a pair of skis on the installment plan. She paid $20 every month until she turned 18, the age of majority. The next day, she sold them to Sharon and disaffirmed the contract. Fay is: a. still liable since she had to disaffirm before her 18th birthday. b. still liable because selling the skis amounts to a ratification. c. not liable because she disaffirmed the contract. d. not liable because skis are not necessaries.

b. still liable because selling the skis amounts to a ratification

A and B enter into a contract on January 1 of this year. A's friend C tells A, "The law generally restricts the time within which an action can be brought by either party to a contract." C's statement is: a. false. b. true, because of statutes of limitation. c. true, because of the law of repudiation. d. true, because of covenants not to sue.

b. true, because of statutes of limitation.

In the case of Hochster v. De La Tour the court considered the following issue: a. whether De La Tour acted in good faith when he cancelled Hochster's contract. b. whether Hochster was allowed to treat the repudiation of the contract by De La Tour as breach of contract and immediately bring suit. c. whether De La Tour should pay punitive damages for cancelling the contract. d. whether Hochster mitigated the damages in the case by finding replacement work.

b. whether Hochster was allowed to treat the repudiation of the contract by De La Tour as breach of contract and immediately bring suit.

another name for a trial by a court sitting without a jury is a(n):

bench trial

The majority of states follow the __________ rule in awarding damages for fraud.

benefit-of-the-bargain

contract

binding agreement that the courts will enforce

Which of the following involves an invalid assignment that a court would not enforce? a. An assignment of a savings account accompanied by the delivery of the passbook b. An assignment lacking consideration c. An assignment of an automobile liability insurance policy accompanied by the delivery of the policy d. An assignment in writing signed by the assignor and delivered to the assignee

c. An assignment of an automobile liability insurance policy accompanied by the delivery of the policy

Phil, a tax accountant, promises to do Marge's individual federal, state, local, and gift taxes for the year. He completes all but the gift taxes. Under the substantial performance doctrine, Marge will: a. not have to pay Phil. b. not have to accept the work. c. have to pay Phil for all but the gift taxes. d. have to pay Phil the contract price.

c. have to pay Phil for all but the gift taxes

Cheryl, age 16, ordered a new dress to wear to the school prom. She has contracted to pay $500 when the dress arrives. Before the dress arrives, Cheryl decides that the dress is too expensive. If she now wishes to cancel the order, Cheryl: a. must pay $500 for the dress because the dress was specially ordered for Cheryl. b. must pay $500 for the dress because clothing is classified as a necessity. c. may disaffirm this executory contract. d. must accept the dress and pay the reasonable value of the dress.

c. may disaffirm this executory contract.

Miller has a contract to sell 1,000 bushels of wheat to a bakery. The wheat is stored in a grain elevator and has become infested with insects. Miller is: a. discharged from performance because of impossibility. b. discharged because of frustration. c. not discharged, but must substitute wheat or pay damages to the bakery for breach of contract. d. discharged if he can prove that he did not cause the damages to his wheat.

c. not discharged, but must substitute wheat or pay damages to the bakery for breach of contract.

Damages for reliance include expenses for: a. lost profits. b. injury to the person. c. preparing to perform. d. punishment of the breaching party.

c. preparing to perform.

Miller made a contract to sell his condominium to Jefferson for $80,000. Two days later Miller changed his mind after discovering that he could have sold the property to another buyer for an additional $20,000. Jefferson sues and asks the court to have the property conveyed to him at the price of $80,000. Jefferson is seeking: a. restitution. b. punitive damages. c. specific performance. d. valid tender.

c. specific performance.

Barbara owes Arturo $2,000. On July 1, Arturo assigns the debt to Charles. Thereafter on July 15, Arturo assigns the same right to Dennis, who in good faith gives value for it and knows nothing about the first assignee. Dennis immediately notifies Barbara of the assignment. Under: a. all of the rules, Charles has priority since he was the first assignee in time. b. the majority rule, Dennis has priority. c. the English Rule, Dennis has priority. d. the English Rule, Charles has priority.

c. the English Rule, Dennis has priority.

In most states, whether the time within which a minor disaffirms a contract constitutes a reasonable time is determined by: a. state statute. b. the UCC. c. the facts and circumstances of the case. d. common law, without regard to the unique facts of the case at hand.

c. the facts and circumstances of the case

Anna is 88 years old and under the legal guardianship of her daughter. One day Anna receives a telephone call from a health insurance salesman and purchases a $400-a-month Medigap insurance policy. This contract is: a. valid. b. voidable. c. void. d. voidable only at the option of Anna.

c. void.

cal sprayed pesticide on his crops in a very careful manner on a windless day. Nevertheless, some of the pesticide spray fell on his neighbor's side of the fence and contaminated the cornmeal for the chickens. The chickens dies, and the neighbor sues. What is the likely result?

cal is liable because spraying pesticides is an abnormally dangerous activity

physical compulsion (duress)

coercion involving physical force renders the agreement void

Under the UCC, a(n) ____ is a sequence of previous conduct between the parties to an agreement which may be fairly regarded as establishing a common basis of understanding for interpreting their conduct under the contract.

course of dealing

unilateral mistake

courts are unlikely to grant relief unless the error is known or should be known by the nonmistaken party

All of the following are fundamental concepts underlying Article 2 except: a.good faith. b.unconscionability. c.freedom of contract. d.contraction of commercial practices.

d

If no definite time för delivery is fixed by the terms of the contract: a. delivery will not take place. b. delivery must begin within 10 days of the contract. c. delivery must be immediate. d. delivery and acceptance must happen within a reasonable amount of time.

d

In which of the following circumstances would the buyer or seller be permitted to treat the contract as breached and cancel? a. Seller delivered conforming goods, but of another brand because he ran out of the brand ordered. b. Seller delivered the goods to a truckline when railroad delivery had been specified, but the rail line was not running on a suitable schedule. c. Seller delivered a box of badly overripe pears that were part of an order for 12 "fruits of the month," one to be delivered during the first week of each month for a year. d. Seller failed to deliver volume 3 of the encyclopedia after repeated requests by the buyer.

d

In which of the following situations does the seller have the right to cure? a.Where the time for the performance under the contract has not yet expired. b.Where the seller had reasonable grounds for believing the buyer would accept a nonconforming tender with or without monetary adjustment. c.Where the buyer has revoked acceptance. d.Two of the answers are correct..

d

Which of the following would be a valid ratification? Two weeks after his eighteenth birthday, Jerry: a. sells the motorcycle he contracted to buy when he was seventeen. b. calls the bank to assure them that he will continue making payments on the loan agreement he signed a month before his eighteenth birthday. c. makes a payment on the installment contract he signed a month before. d. All of the above

d. All of the above

Which of the following is correct with respect to election of remedies? a. The Code rejects any doctrine of election of remedies; its remedies are cumulative. b. The remedy of specific performance is inconsistent with that of restitution. c. A person who seeks an injunction may also seek incidental damages for the breach. d. All of the above are correct.

d. All of the above are correct.

In which of the following situations is restitution available as a remedy? a. As an alternative remedy for a party injured by breach b. For a party in default c. For a party who may not enforce the contract because of the statute of frauds d. All of the above are situations where restitution is available.

d. All of the above are situations where restitution is available.

Which of the following would be considered a material breach of a contract? a. Partial performance that omits some essential part of the contract. b. Delivery of 50 chairs in a contract that calls for 100 chairs. c. An intentional breach of the contract. d. All of the above would be material breaches. e. Only (a) and (b) above would be material breaches.

d. All of the above would be material breaches

A power of avoidance held by a party may be lost if: a. the contract is affirmed. b. there are unreasonable delays in exercising the power. c. the rights of third parties intervene. d. All of the above.

d. All of the above.

Ratification can occur in which of the following ways? a. Through express language b. As implied from conduct c. Through failure to make a timely disaffirmance d. All of the above.

d. All of the above.

Which of the following duties would not be delegable? a. John has a contractual duty to pay Isaac $50. b. Karl has a contractual duty to deliver 50 bushels of corn to Michael by October 1. c. Jeffrey has a duty to mow Georgia's lawn at least once a week. d. Arthur has a duty to teach an accounting class at a community college during the fall semester.

d. Arthur has a duty to teach an accounting class at a community college during the fall semester.

A gratuitous assignment is rendered irrevocable if, prior to the attempted revocation, the assignee: a. receives payment of the claim from the obligor. b. obtains a judgment against the obligor. c. Neither of the above. A gratuitous assignment is always revocable. d. Both (a) and (b).

d. Both (a) and (b)

Betty owes Agatha $1,000. On March 1 Agatha, for value, assigned the debt to Clara. Thereafter, on March 30, Agatha assigned the same right to Diane. Under the: a. American rule, Clara will prevail over Diane. b. English rule, the first assignee to notify Betty will prevail. c. Restatement rule, the first assignee to notify Betty will prevail. d. Both (a) and (b) are correct.

d. Both (a) and (b) are correct.

In which of the following situations will a court grant specific performance? a. In a case involving breach of contract for the sale of real property. b. In contracts for personal services. c. Where goods are unique or rare. d. Both (a) and (c).

d. Both (a) and (c).

Jack is a guest in Harry's home. While there, he goes into the library and picks up a music box that is part of Harry's collection. Jack overwinds the stem and it breaks. Hoping Harry won't notice, Jack takes the music box for repair to a jeweler who sells similar ones. The jeweler fixes it, but forgets to tag it and it is sold to Robert by an unsuspecting clerk. Jack is frantic. Can Harry get the music box from Robert? a. No, the jeweler gives good title to a bona fide purchaser for value. b. No, the jeweler was a merchant. c. Yes, Robert was not a buyer in the ordinary course of business. d. Yes, Robert has assumed only Jack's title, which is no title at all.

a

Mark, a college student, agreed to sell his horse to Henry for $1 5000. The contract required Mark to take the horse on that same day to Idlewild Stables where Henry was going to board the horse. Henry paid Mark the money, patted the horse and said, "I'm glad you're mine, you beauty," and drove off. Mark then led the horse into the trailer and set off for the two-hour drive to Idlewild. Has there been a sale? a. No, not until delivery to Idlewild. b. No, not until Henry sees the horse again. c. Yes, since Henry already paid for it. d. Yes, since the contract was made earlier in the day.

a

intoxicated persons

a contract entered into by an intoxicated person (one who cannot understand the nature and consequence of her actions) is voidable

persons under guardianship

a contract made by a mentally incompetent person placed under guardianship by court order is void

quasi contract (restitution) requirements

a court will impose a quasi contract or restitution when (1) the plaintiff confers a benefit upon the defendant, (2) the defendant knows or appreciates the benefit, and (3) the defendant's retention of the benefit is inequitable

promissory estoppel definition

a doctrine enforcing some noncontractual purposes

fraud in the execution

a misrepresentation that deceives the other party as to the nature of a document evidencing the contract; renders the agreement void

bargained for exchange

a mutually agreed upon exchange

promise to pay debt barred by the statute of limitations

a new promise by the debtor to pay the debt renews the running of the statute of limitations for a second statutory period

Which of the following is enforceable without consideration

a new promise to pay a debt barred by the statute of limitations

voidable promises

a new promise to perform a voidable obligation that has not been previously avoided is enforceable

promissory estoppel requirements

a promise made under circumstances that should lead the promisor reasonably to expect that the promise would induce the promisee to take definite and substantial action, and the promisee does take such action

duties of the parties in novation contract

a substituted contract to which the promisee is a party, which substitutes a new promisor for an existing promisor, who is consequently no longer liable on the original contract and is not liable as a delegator

creditor beneficiary

a third person intended to receive a benefit from the contract to satisfy a legal duty owed to him

irrevocable offer of unilateral contracts

a unilateral offer may not be revoked for a reasonable time after performance is begun

false representation (fraud in the inducement)

positive statement or conduct that misleads

the court determines whether there is probable cause to believe the defendant is the one who committed the crime at the:

preliminary hearing

minor's liability for misrepresentation of age

prevailing view is that a minor may disaffirm the contract

the fifth amendment to the constitution

prevents double jeopardy

gambling statutes

prohibit wagers, which are agreements that one party will win and the other party will lose depending on the outcome of an event in which their only interest is the gain or loss

illusory promise

promise that imposes no obligation on the promisor

for the purposes of procedural due process, __ includes certain entitlements conferred by government such as social security payments and food stamps

property

preexisting public obligations

public duties such as those imposed by tort or criminal law are neither a legal detriment not a legal benefit

the tort of appropriation requires all, except

publication

The process whereby a court "rewrites" or "corrects" a written contract to make it conform to the true intentions of the parties is:

reformation

licensing statutes

require formal authorization to engage in certain trades, professions, or businesses regulatory or revenue

Bill recently borrowed $50 from Ricardo for a couple of weeks. Bill, still short of cash, tells Ricardo, "I will wash and wax your car in exchange for the $50 I owe you." Ricardo tells Bill, "OK, that's great!" Ricardo's performance of his new duty will be a(n): a. accord. b. novation. c. rescission. d. satisfaction.

satisfaction

knowledge of falsity and intention to deceive (fraud in the inducement)

scienter includes actual knowledge, lack of belief in statement's truthfulness, or reckless indifference to its truthfulness

promises made enforceable by statute

some gratuitous promises have been made enforceable by statute; the code makes enforceable (1) contract modifications, (2) renunciations, and (3) firm offers

Carolyn agrees to sell Marianne an antique handmade lace tablecloth for $1,500. When Carolyn discovers that her cousin wants it too, she breaks the contract with Marianne. Marianne can ask the court to order:

specific performance

Miller made a contract to sell his condominium to Jefferson for $80,000. Two days later Miller changed his mind after discovering that he could have sold the property to another buyer for an additional $20,000. Jefferson sues and asks the court to have the property conveyed to him at the price of $80,000. Jefferson is seeking:

specific performance.

which of the following is not required for the plaintiff to prove in an action for negligence

superseding event

which of the following is correct with regard to the powers of government in the US

the federal government is a government of enumerated powers

incidental beneficiary

third party whom the two parties to the contract have no intention of benefiting by their contract and who acquires no rights under the contract

a contractual agreement always involves either a promise exchanged for a promise or a promise exchanged for a completed act or forebearance to act

true

a defective acceptance does not create a contract, but does constitute a new offer

true

a liquidated damage clause that represents a reasonable approximation of the damages where the actual amount would be very difficult to determine will usually be upheld

true

a mental condition that impairs a person's ability to act in a reasonable manner is one type of mental incompetence

true

a party delegating his duty to a third party is known as a delgator

true

a quasi contract is also called a contract implied in law

true

a statute may preclude judicial review of an agency action

true

by common law and the majority view, a minor need only to return any property he has received from the other party if the minor wishes to disaffirm the contract. He has no duty to return the property in the same condition in which he received it

true

compliance with a legislative enactment or administrative regulation does not prevent a finding of negligence if a reasonable person would have taken additional precautions to avoid harm

true

contract law generally places more importance on the intent of the parties to form a contract than on the inclusion of certain terms in the contract

true

death or insanity of either the offeror or te offeree terminates the offer

true

death or insanity of either the offeror or the offeree terminates the offer

true

discharge by performance is the most frequent method of discharging a contractual duty

true

duress may generally be defined as any act or threat that overcomes the free will of a party

true

economic duress that compels a person to enter into a contract renders the contract voidable

true

generally, the executive branch of government has the power to enforce the law

true

in most states, a jury may award punitive damages if a defendant's tortious conduct is intentional and outrageous, but the amount must not be grossly excessive

true

in order to induce a car dealer to sell her son a car on credit, Mary promises that she well pay for the son's car if her son defaults on his monthly payments to the dealership. Mary's promise must be evidenced by a writing

true

in some states, minors are liable for contracts involving bank accounts and student loans and cannot avoid these contracts even though they can avoid other types of contracts

true

in the US, the states retain significant powers; however, the supremacy clause of the constitution provides that within the areas of regulation that are federal in nature, federal law is supreme

true

interpretive rules are agency-issued statements that explain how the agency construes its governing statute

true

most states have abolished or modified the defense of implied assumption of risk

true

nonfraudulent representation is made without scienter

true

oral contracts are as enforceable as written contract unless otherwise provided by statute

true

the common law governs all contracts outside the scope of article 2 of the UCC

true

the contract clause of the constitution applies only to the actions of state governments and not to the federal government

true

the delegation of a duty still leaves the delegator responsible for the performance of the duty

true

the doctrine of necessaries applies in the same way to minors and menal incompetents

true

the obligor need not receive notice for an assignment to be valid

true

the parties to a contract must have capacity for the contract to be enforceable

true

to protect the obligor or the public interest, some contract rights are not assignable

true

tort liability is involuntarily assumed

true

when one part of a contract is illegal, the entire contract is void

true

the uniform commercial code provides that a court may scrutinize every contract for the sale of goods to determine whether, in its commercial setting, purpose, and effect, the contract is

unconscionable

the uniform commercial code provides that a court may scrutinize every contract for the sale of goods to determine whether, in its commercial setting, purpose, and effect, the contract is:

unconscionable

modification of a preexisting contract

under the common law a modification of a preexisting contract must be supported by mutual consideration; under the code a contract can be modified without new consideration

George has been declared incompetent by the court and is under the care of his sister. Unknown to his sister, George rents the 30,000-seat civic center for his birthday party. George's contract to rent the civic center is best described as:

void

duress

wrongful act or threat that overcomes the free will of a party physical and improper

Steven has a typed copy of a contract, which he would like to have Thomas sign. Thomas, who needs glasses to read typing, doesn't want to sign until he has read the document, but Steven convinces Thomas to sign it anyway, because it is a "standard" contract for this type of situation. Is the contract which Thomas signed binding upon him?

yes, because he was negligent in not ascertaining its contents

Jim contracted with Kevin to serve as a guide for Kevin on his three-week fishing trip to Canada. The contract was made on April 1 with the trip to begin on June 1. On May 1, Kevin notified Jim that he had changed his mind and would be unable to make the trip. He also refused to pay Jim any compensation. In this case: a. because the contract is executory, Jim has suffered no damages, and Kevin has no obligation to pay any compensation. b. Kevin has anticipatorily repudiated the contract and is liable to Jim for damages. c. Jim is discharged from his duty to serve as guide, and he may bring suit immediately against Kevin. d. Both (b) and (c) above are correct.

d. Both (b) and (c) above are correct.

Todd, a minor, rents an automobile from Rosa, an adult. Todd damages the vehicle when he negligently backs into a pole. Under the majority view, can Rosa recover damages from Todd? a. Yes, Todd breached his duty to exercise reasonable care and diligence to protect the automobile. b. Yes, although Todd is a minor, it is well settled that minors are generally liable for their torts. c. No, minors generally cannot be held liable for their torts. d. No, his contractual immunity protects him from legal action by Rosa.

d. No, his contractual immunity protects him from legal action by Rosa.

Mary, age 17, sold Mark, age 22, the briefcase she got for graduation. Mark's father liked it and bought it from him. If Mary decides to disaffirm the contract, will Mark's father have to return the briefcase to her? a. Yes, the briefcase is not a necessary. b. Yes, if Mark's father still has it. c. No, her contract was with Mark and he cannot return goods he does not have. d. No, if Mark's father bought it without knowing that Mary was a minor.

d. No, if Mark's father bought it without knowing that Mary was a minor.

Requirements for a memorandum that satisfies the statute of frauds include that the writing: a. must be a single document. b. must exist at the time of the litigation. c. needs to be notarized. d. None of the above.

d. None of the above.

Restitution is available when: a. Elizabeth agrees to sell an acre of land to Vanessa, and after Vanessa makes a partial payment Elizabeth wrongfully refuses to transfer title. b. Lawrence makes an oral contract to provide physical training for Lee for fourteen months and Lee discharges Lawrence after six months. c. Gilbert uses undue influence to induce Cynthia to sell him an antique chair for $10. d. Restitution is available in all of the above cases.

d. Restitution is available in all of the above cases.

When a minor falsely advises the other party that he is of the age of majority and based upon that misrepresentation, the other party in good faith enters into a contract with the minor: a. the minor has lost his right to disaffirm the contract because of the misrepresentation. b. the adult party can recover damages from the minor in tort. c. the minor is required to restore the other party to the position occupied before the making of the contract. d. There is no uniform rule. States differ, and depending upon the state, any of the above could be correct.

d. There is no uniform rule. States differ, and depending upon the state, any of the above could be correct.

E-Sign: a. preempts the Uniform Electronic Transactions Act. b. requires persons to agree to use or accept electronic records or electronic signatures, provided they are informed of the types of hardware and software required and they have the required equipment. c. defines the included transactions narrowly. d. ensures that the electronic form of Internet and e-mail agreements will not make them unenforceable because of the statute of frauds.

d. ensures that the electronic form of Internet and e-mail agreements will not make them unenforceable because of the statute of frauds.

the unreasonable and highly offensive interference with the solitude of another is the tort of

intrusion

in most states, the possessor of land owes the greatest duty of care to which of the following?

invitee

Which of the following is NOT true regarding specific performance?

it will be granted frequently in contracts involving the sale of goods

elements of consideration

legal sufficiency and bargained for exchange

regulatory license

licensing statute that is intended to protect the public against unqualified persons; an unlicensed person may not recover for services he has performed

revenue license

licensing statute that seeks to raise money; an unlicensed person may recover for services he has performed

Divided Parcel (DP) includes the following on its mailing receipts: "We are not responsible for any damages to packages whether or not through the fault or negligence of our employees. Send packages at your own risk." Mary reads this clause but sends her watch back to its manufacturer to be repaired anyway. The watch is destroyed when the DP driver uses the package for a ball and tosses it to his buddy. Mary is:

likely to collect from DPS because it attempted to excuse intentional and reckless behavior

Divided Parcel Service includes the following on its mailing receipts: "We are not responsible for any damages to packages whether or not through the fault or negligence of our employees. Send packages at your own risk." Mary reads this clause but sends her watch back to Bulova Co. to be repaired anyway. The watch is destroyed which the DPS driver uses the package for a ball and tosses it to his buddy. Mary is

likely to collect from DPS because it attempted to excuse intentional and reckless behavior

A contractor and Southampton, Inc. have a contract, which calls for the contractor to build a building with the completion by June 15. If the building is not completed by that date, the contract calls for the contractor to pay $100 per day in damages. The $100 per day is:

liquidated damages.

misuse of legal procedure consists of

malicious prosecution

defenses of obligor

may be asserted against the assignee

promise to pay debt discharged in bankruptcy

may be enforceable without consideration

negligent misrepresentation

misrepresentation made without knowledge of its falsity and without due care in ascertaining its truthfulness; renders the contract voidable

the usual remedy for breach of contract is

money damages

The usual remedy for breach of contract is:

money damages.

delegable duties

most contract duties may be delegated except: - duties that are personal -duties that are expressly nondelegable -duties whose delegation is prohibited by statute or public policy

assignability

most contract rights are assignable except: -materially increase the duty, risk, or burden upon obligor -personal rights -expressly forbidden -prohibited by law

contracts within the statute of frauds

must be evidenced by a writing to be enforceable

Arlene signs an employment contract to work for a local business, Davis Restoration, for one year but is wrongfully discharged after three months. In order to recover from Davis full pay for the remaining nine months of her contract, Arlene:

must use reasonable efforts to mitigate her damages by seeking other employment, even if she does not find another job

4 requirements of a contract

mutual assent consideration legality of object capacity

if a statute is found to be applicable to a fact situation, then the courts will hold that an unexcused violation of that statute which causes an injury to another is:

negligence per se

implied warranties

obligation imposed by law upon the assignor of a contract right

destruction of subject matter

of an offer terminates the offer

materiality (fraud in the inducement)

of substantial importance

statutory irrevocability

offer made irrevocable by statute

lapse of time

offer remains open for the time period specified or, if no time is stated, for a reasonable period of time

definiteness (essentials of an offer)

offer's terms must be clear enough to provide a court with a basis for giving an appropriate remedy

communication (essentials of an offer)

offeree must have knowledge of the offer, and the offer must be made by the offeror or her authorized agent to the offeree

third party beneficiary contract

one in which one party promises to render a performance to a third person (the beneficiary)

valid contract

one that meets all of the requirements of a binding contract

substantive unconscionability

oppressive or grossly unfair contractual terms

modification or rescission of contracts within the statute of frauds

oral contracts modifying existing contracts are unenforceable if the resulting contract is within the statute of frauds

effect of noncompliance on promissory estoppel

oral contracts will be enforce in cases in which the party seeking enforcement has reasonably and justifiably relied on the promise and the court can avoid injustice only by enforcement

Howard needs a truck to pull a 2,000-pound trailer. Gordon tells Howard, "My truck will pull a 2,000 pound trailer with ease." Relying on Gordon's statement, Howard buys the truck, but it will not pull a 2,000-pound trailer. If Gordon did not intend to deceive and Howard sues for nonfraudulent misrepresentation, he can ask for:

out-of-pocket damages, plus consequential damages.

promises that are not illusory

output contract requirements contract exclusive dealing contract conditional contract

delegator

party delegating his duty to a third party

assignor

party making an assignment

obligor

party owing a duty to the assignor under the original contract

obligee

party to whom a duty of performance is owed by the delegator and delegate

obligee

party to whom a duty of performance is owed under a contract

assignee

party to whom contract rights are assigned

settlement of a disputed debt

payment of a lesser sum of money to discharge a disputed debt (one whose existence or amount is contested) is legally sufficient consideration

settlement of an undisputed debt

payment of a lesser sum of money to discharge an undisputed debt (one whose existence and amount are not contested) does not constitute legally sufficient consideration

Percy, age 17, purchased a used mobile home from a mobile home dealer for $20,000. This price, however, was twice the reasonable value of the mobile home. One month later, Percy wishes to disaffirm the contract. If the mobile home is considered a necessary, then:

percy must keep the mobile home but is only liable for the reasonable value of the mobile home

preexisting contractual obligation

performance of a preexisting contractual duty is not consideration

A collateral promise is an undertaking to be primarily liable for the principal debtor's debt.

false

A contract that provides for delivery ex-ship is also a shipment contract.

false

A noncompete clause in an employment contract with an Internet business based in New York that restricts a former employee from working for another Internet business in the entire United States within one year of leaving her position is unreasonable and will not be upheld in court.

false

Although a contract to purchase an undeveloped lot must be in writing to be enforceable, a contract to run power lines over someone else's lot need not be.

false

Article 2 of the UCC covers employment contracts. True False

false

Barney did some repair work for a neighbor in a community where repair businesses are required to pay license fees as a means of raising revenue for the community. Barney did not obtain a license, so he is not entitled to recover for services performed.

false

Bill is currently enrolled in law school, expects to graduate and take the bar exam in order to be able to practice law. Before Bill becomes a lawyer, he promises to represent his friend, Tom, in a breach of contract action if Tom will pay him 25% of the settlement. Bill negotiates and the case settles for $50,000. Tom refuses to pay Bill. Bill then graduates and attempts to sue Tom. Bill has a legal right to enforce the agreement.

false

Bud drafts and lobbies for a bill which will help senior citizens pay for their prescriptions. Bud visits each legislator and tells him or her why the bill is good for all consumers. He is very convincing, and the bill passes. This is a violation of public policy

false

Carlos voluntarily transfers to Opal his right to receive a payment of $125 due to him from Scott. Scott is the assignee

false

Daniel, a cabinetmaker, contracts to make a china cabinet to Lora's satisfaction and Lora promises to pay Daniel $2,800 for the cabinet if she is satisfied with it when completed. Daniel completes the cabinet in a workmanlike manner using the wood Lora has chosen. If Lora tells Daniel that she is not satisfied with the cabinet and refuses to accept or pay for it, Daniel is entitled to recover from Lora the reasonable value of the cabinet if her dissatisfaction is unreasonable.

false

If the owner of goods entrusts them to a merchant, the merchant may not transfer good title to the goods to a buyer in the ordinary course of business, even if the original owner does not want to sell the goods.

false

In all substituted contracts there must be an agreement among three parties where a new promise is substituted for an existing promise or a new promisor is substituted for an existing promisor.

false

Incidental damages include lost profits and injury to person or property resuling from defective performance

false

Jessica at the age of 15 entered into a contract to sell five acres of land to her uncle. She may disaffirm this contract at any time before reaching her majority.

false

Maria posted several signs in the neighborhood offering $50 for the return of her lost cat. Dave calls to get a description of the cat and tells Maria, "I'll look for your cat." A contract is formed by Dave's call to Maria.

false

Marty sends Fred a letter offering to sell Fred his car for $2,500. Fred writes back that he'll take it. They now must get together and write a memorandum because it is a sale of goods for over $500

false

Matt sells bikes at a local discount store. To encourage Bob to buy a more expensive model than he originally contemplated, Matt tells Bob, "This is the most awesome bike money can buy at this price. You can expect lots of riding pleasure." Based on this statement Bob buys the bike. A week later, before his bike is fully paid for, Bob sees a far superior bike for a lower price at another store. Bob can avoid his contract with Matt because of fraudulent misrepresentation.

false

Mel is 17 years old but looks older than 18. He makes a contract to buy a car from Maisie, who is the age of majorti. When Maisie finds out Mel's age, she may avoid the contract even if Mel did not misrepresent his age

false

Natalie, age 17, rented a power washer and while using the machine, she negligently damaged it beyond repair. Under the majority view, the rental company can successfully sue Natalie for damages on a tort theory of negligence since it is well settled that minors are liable for their torts

false

On March 20, Alan orally agrees to work for Trower, Inc. for a period of one year commencing on June 1. No writing is necessary here, because the contract can be performed within one year

false

On March 20, Alan oraly agrees to work for Trower, Inc. for a period of one year commencing on June 1. No writing is necessary here, because the contract can be performed within one year

false

Only a minority of courts hold that, upon disaffirmance, a minor must return any property he has received from the other party to the contract.

false

Payment of a C.O.D. shipment constitutes an acceptance of the goods.

false

Rejection is effective regardless of whether the buyer notifies the seller.

false

Revocation of acceptance requires notice to the seller, whereas rejection does not.

false

steps in criminal prosecution

-preliminary hearing -bind case over if probable cause to information or indictment -arraignment

rules of interpretation

-principal purpose is given great weight -writing is interpreted as a whole -commonly accepted meanings are used -technical terms have technical meanings -intentions are interpreted as consistent -specific terms have greater weight than general -separately negotiated terms have greater weight than standardized terms -order is express terms, course of performance, course of dealing, usage of trade -if a term has multiple meanings, the person who used the term picks -written, typed, printed -if an amount is in words and numbers, words control

breach of duty of care

-probability that harm would occur -seriousness of harm -social utility -cost of taking precautions

beyond a reasonable doubt

-proof that is entirely convincing, satisfied to a moral certainty

personal property

-property other than an interest in land

absolute privilege

-protection regardless of motive -judicial proceedings -members of congress on floor of congress -certain executive branch officers -between spouses when alone

8th amendment

-protects against excessive bail and cruel and unusual punishment

fourth amendment

-protects against unreasonable search and seizures

commerce clause

-provides a broad interpretation of commerce power to regulate the economy, and restricts state regulations that obstruct or unduly burden interstate commerce -invalidate legislation if the regulated activity does not affect interstate commerce, or there is no reasonable connection between regulated means and stated ends -state activities must substantially affect interstate commerce and are in the flow of commerce

disparagement

-publication of false statements resulting in harm to another's monetary interests -knows that statement is false or acts in reckless disregard

subjective fault

-purposeful, knowing, and reckless -conscious object to engage in conduct -aware that conduct is prohibited -consciously disregards risk that conduct is prohibited or will cause a prohibited result

Ralph sold a motel to Steve by stating that he had paid $250,000 for it and that his net average annual profit from the business has been $40,000. In reality he paid $100,000 for the motel and has earned a net average annual profit of only $30,000. Steve made no attempt to verify the statements until after the transaction was completed.

-ralph has committed fraudulent misrepresentation -the contract is voidable at Steve's option

mistake of fact

-reasonably believes the facts surrounding an act to be such that his conduct would not constitute a crime

sarbanes oxley act

-reforms of american business practices -increases corporate responsibility -adding financial disclosure agreements -creating new criminal offenses -increasing penalties on existing crimes -created accounting oversight board

commerce power

-regulate commerce within other nations and among the states

procedural due process

-review of the decision making process -government is required to provide an individual with a fair procedure only if the person faces deprivation of life, liberty, or property

fifth amendment

-self incrimination -double jeopardy -must have grand jury indictment for capital crime -does not protect the records of a business entity

duty to act

-special relationship to protect another from harm -imposed on those who have injured another and left them helpless and in danger of further harm

in which of the following can absolute privilege protect the defendant regardless of his intent

-statements regarding a third party made between spouses when they are alone -statements made my members of congress on the floor of congress and by members of state and local bodies -statements made by participants in a judicial proceeding regarding that proceeding

emergencies (reasonable person)

-sudden and unexpected event needing immediate action -held to standard of reasonable person in the same circumstances

judicial review

-supreme court examines governmental actions, legislation, acts of executive branch, and decisions of inferior courts to determine their constitutionality

which of the following can be raised as a defense to a claim of defamation

-that the statement was true -that there was a constitutional privilege to comment about the plaintiff who is a public figure and that the statement was made without malice -that there was a conditional privilege to publish defamatory matter in order to protect legitimate self-interests

under substantive due process, legislation affecting which of the following would be strictly scrutinized as affecting fundamental rights?

-the right to marry someone from a particular ethnic background if both parties wanted to marry -the right of free speech

with respect to the tort of trespass to personal property, liability is limited to which of the following instances

-the trespasser dispossesses the other of the personal property -the trespasser substantially impairs the condition, quality, or value of the property -the trespasser deprives the possessor of the use of the property for a substantial time

harm to property

-trespass to real property -nuisance -trespass to personal property -conversion

duty of possessors of land

-trespassers -licensees -invitees -exercise reasonable care to protect others who are not on her property

intrusion

-unreasonable and highly offensive interference with the seclusion of another

computer crime

-use of a computer to steal money or services, to remove personal or business information, and to tamper with information

commercial bribery

-use of bribery to acquire new business, obtain secret information or processes, or obtain kickbacks

mail fraud

-use the mails

assumption of risk

-voluntarily and knowingly assumed risk of harm -express -implied

analysis of commercial speech

1. determine if protected under the first amendment and concerns lawful activity that is not misleading 2. governmental interest is substantial 3. directly advances governmental interest 4. regulation is not more extensive than necessary

An obligee's promise to accept a stated performance in satisfaction of the obligor's existing contractual duty creates an accord. A. True B. False

A

Discharge by performance is the most frequent method of discharging a contractual duty. A. True B. False

A

Henry hires Ace Roofing to put a new roof on his house. When Ace comes, Henry refuses to let them on the roof, saying that he has a headache and doesn't want to listen to pounding. The next day, Henry still has a headache and he refuses to allow them on the roof. The day after, the baby is sleeping and Henry refuses to allow them to work. After four weeks of this, Ace: a. may be discharged, but Henry is not. b. may be discharged, and so would Henry. c. can sue for damages, but must perform when Henry is ready. d. has no choice but to keep coming back each day until Henry is ready.

A

powers of the government

-bankruptcy laws, establish post offices, grant patents/copyrights, coin currency, wage war, enter into treaties

harm to the person

-battery, assault, false imprisonment, infliction of emotional distress

three elements of negligence

-breach of duty to care -proximate cause -injury

arraignment

-brought before the trial court -informed of the charge against them -enters his plea -"not guilty" must stand trial

objective fault

-carelessness or negligence -should be aware of risk -involuntary manslaughter, carelessly driving, bad check

tort liability objectives

-compensate -place cost on parties who should bear it -prevent future harm and losses

false imprisonment (false arrest)

-confining a person against their will in fixed boundaries if the person is aware of the confinement or harmed by it -restraint may be brought about by force or threat of force

defenses to negligence

-contributory negligence -comparative negligence -assumption of risk

defenses to strict liability

-contributory negligence -comparative negligence -assumption of risk

corporate political speech

-corporations may not be prohibited from speaking out on political issues

substantive law

-creates, defines, and regulates legal rights and duties

false pretenses

-crime of obtaining title to property of another by making materially false representations of an existing fact with knowledge of their falsity and with the intent to defraud

liability without fault

-crime to do a specific act or cause certain result without regard to the care that a person exercises

pure comparative negligence

-damages are divided between the parties in proportion to their relative fault

which of the following statements is true about the tort of disparagement

-damages may be recovered for all expenses that are necessary to counteract a false publication, including the cost of notifying customers

punitive damages

-damages over and above the amount necessary to compensate the plaintiff

harm to the right of dignity

-defamation -invasion of privacy -misuse of legal procedure

difference between criminal and civil trial

-defendant is presumed innocent -burden of proof on the prosecution is to prove criminal guilt beyond a reasonable doubt -defendant is not required to testify

defenses to crimes

-defense of person or property -duress -mistake of fact -entrapment

assumption of risk (strict liability)

-defense to an action based upon strict liability

bank fraud

-defraud a financial institution

conditional privilege

-depends on proper use of the pivilege -publish defamatory matter to protect own legitimate interests -forfeited by publishers who act in excessive manner, without probable cause, or for improper purpose

harm to a legally protected interest (injury)

-determine extent of protection as a matter of law on basis of social policy and expediency

levels of scrutiny

-determine if the gov power exercised encroaches upon constitutional protections for equal protection -rational relationship test, strict scrutiny test, intermediate scrutiny test

preliminary hearing

-determine whether there is probable cause -if yes, bind case over to the next stage

domestic nontrespassing animals

-devoted to service of humankind and considered safe -keepers are liable if they knew of an animal's dangerous propensity that is the cause of the harm

federal tax limitations

-direct taxes must be apportioned to the states -all custom duties and excise taxes must be uniform -no duties may be levied on exports from any state

exclusionary rule

-discourage illegal police conduct and to protect individual liberty -4th amendment

defamation

-disgracing or diminishing a person's reputation through the communication of a false statement -protected by the first amendment because it involves a communication -can only recover if the statement was made with actual malice

trespass to personal property

-dispossesses the other of the property -substantially impairs the condition, quality, or value -deprives of use for substantial time

tort liability

-duty owed -is breached -causing -injury or damage

primary purpose of the criminal procedure

-effective enforcement of the criminal law within the limitations imposed by other goals

trespass to real property

-enters or remains on land -causes a third person to enter or remain -fails to remove thing there is a duty to remove

burglary

-entry -into a building -with the intent to commit a felony in the building

borrow and coin money

-establish a national banking system, the federal reserve system, and specialized federal lending programs -control over national fiscal and monetary policies, interest rates, money supply, and foreign exchange rates

criminal law

-establishes duties, the violation of which is a societal wrong against the whole community -part of public law -designed to prevent harm to society

procedural law

-establishes the rules for enforcing legal rights

express assumption of the risk

-expressly agrees to assume the risk of harm

14th amendment

-extends other amendments to the states

defamation

-false communication that injures a person's reputation -must be a false statement -communicated to a third party (one person) -knowledge of falsity -burden of proof is on plaintiff to prove falsity

federal preemption

-federal government overrides conflicting state legislation in this realm -until congress exercises power to preempt, state regulation is permitted

supremacy clause

-federal law is supreme -state law must yield in conflict

fundamental principles

-federalism -federal supremacy and preemption -judicial review -separation of powers -state action

the ___ and ___ amendments respectively prohibit the federal and state governments from depriving any person of life, liberty, or property without the due process of law

-fifth and fourteenth

last clear chance

-final opportunity to avoid injury -plaintiff did not avail himself

constitution

-fundamental law of a particular level of government -establishes structure, defines political relationships, places restrictions on government powers, and guarantees rights and liberties of the people

privileged conduct

-furthers an interest of such societal importance that the law grants immunity

physical disability (reasonable person)

-held to standard of a reasonable person having the same disability

children (reasonable person)

-held to standard of a reasonable person of like age, intelligence, and experience -child who engages in adult activities is held to standard of adults

superior skill or knowledge (reasonable person)

-held to standard of reasonable person possessing the greater skills or knowledge that common, and required to exercise greater degree of skill

abnormally dangerous activity

-high degree of risk of serious harm that cannot be eliminated by reasonable care -not a matter of common usage

public disclosure of private facts

-highly offensive publicity of private information -communicated to the public at large

false light

-highly offensive publicity placing another in a false light

warrant is not necessary when:

-hot pursuit -voluntarily consent -emergency -lawful arrest -plain view -delay

privilege

-immunity from tort liability

federal organizational corporate sentencing guidelines

-impose sanctions that provide just punishment and adequate deterrence -require corporations to formulate and implement compliance programs

liability of a corporation

-in the past they were not held liable, but today they are -can be liable without fault, or if offense is perpetrated by a high corporate officer

assault

-intentional conduct that places another person in apprehension of immediate bodily harm or offensive contact -must have knowledge of the danger and be in fear

conversion

-intentional exercise of control over another's personal property -requires the payment of full value of the property

forgery

-intentional falsification of a document with the intent to defraud

battery

-intentional infliction of harmful or offensive body contact

injuries may be inflicted ___

-intentionally -negligently -without fault (strict liability)

interference with contractual relations

-intentionally inducing another party to breach a contract

infliction of emotional distress

-intentionally or recklessly causing severe emotional distress to another -intolerable conduct beyond all bounds of decency

public invitee

-invited to enter and remain on land as member of the public for a purpose which the land is held open to the public -parks, beaches, pools

the president has significant control over administrative agencies housed within the executive branch by virtue of his power to:

-issue executive orders -appoint and remove the chief administrator of those agencies -impound moneys appropriated to the agency by Congress

indictment

-issued by a grand jury -required for felony prosecutions -sufficient evidence to justify a trial on the charge

bad checks

-issuing a check when there is not enough money to cover the check

which of the following is correct with respect to the reasonable person standard

-it makes allowances for physical disability -it applies an individualized test to children that takes into consideration the child's age, background, and experience

trespassing animals

-keeps are held liable for damage their animals cause if trespassing -keepers of cats and dogs are only liable for negligence except in strict liability -not strictly liable if straying from highway being driven -not strictly liable for harm caused by freely grazing farm animals

wild nontrespassing animals

-known to be likely to inflict serious damage -cannot be considered safe no matter level of domestication

robbery

-larceny by threat of violence -property taken directly from victim or in immediate presence of the victim -act is accomplished through force or threat of force

entrapment

-law enforcement official induces a person to commit a crime when that person would not have done so without the persuasion of the police official

substantial factor

-legal cause of injury if the conduct is a substantial factor in bringing harm -two or more forces

administrative agencies have powers similar to which branch of government

-legislative -executive -judicial

vicarious liability

-liability imposed upon one person for the acts of another -does not require mental fault -sale of alcohol to minor

strict liability

-liability without fault -some activities pose sufficiently high risks regardless of careful conduct; therefore those who carry on these activities carry cost of harm caused

extortion (blackmail)

-making of threats for the purpose of obtaining money or property

misuse of legal procedure

-malicious prosecution, wrongful civil proceedings, abuse of process

products liability

-manufacturers and merchants who sell goods in defective condition unreasonably dangerous to user

defense of person or property

-may use reasonable force to protect themselves, others, and their property -cannot use deadly force to protect property

fraudulent misrepresentation

-misrepresentation of fact intentionally made for the purpose of inducing the relying party to act -liability for monetary loss

fraudulent misrepresentation imposes liability for:

-monetary loss -justifiable reliance -a misrepresented fact, intentionally made for the purpose of inducing the person to rely on it

comparative negligence (strict liability)

-most states apply this doctrine to products liabilities cases

proximate cause

-must determine that the negligence was the proximate cause of the substantial injury to the person -causation in fact

aiding others in peril

-nobody is required to aid another in peril

which of the following is not an element required for negligence that the plaintiff must prove

-none of these: -breach of duty of care -proximate cause -injury

nuisance

-nontrespassory invasion of another's interest in the private use and enjoyment of land

white collar crime

-nonviolent crime involving deceit, corruption, or breach of trust -crimes committed by individuals, as well as on behalf of a corporation

contributory negligence (strict liability)

-not a defense to such liability

free speech

-not absolute -obscenity receives no protection -protected by strict scrutiny standard that requires a compelling and legitimate state interest to justify restriction

mental deficiency (reasonable person)

-not allowed -held to standard of reasonable person without deficiency

reserved powers

-not expressly delegated to the federal government -belong to the states or the people

federal spending power

-pay debts, spend for the common defense and general welfare -allows congress to accomplish indirectly what it may not do directly

business visitor

-person invited to enter or remain on premises for purpose concerning business dealings -stores, repairs

Mary agrees to sew Georgia's prom dress for $50 plus costs. Georgia decides that she wants ruffles around the neck and calls Mary who says it will now cost $60. When Mary finishes the dress (with ruffles), Georgia must pay:

$60, since the modified agreement is supported by additional consideration

Breach of a contractual promise and failure of a condition have fundamentally the same effect. A. True B. False

B

The State of Florida enters into a contract with Treasure Salvors governing the salvage of a Spanish galleon that sunk in the 1600's. Under the terms of the contract, the salvagers agree to relinquish 25% of the items recovered to the State of Florida in return for the right to salvage on state lands. At the time the parties enter into the contract, they both believe that the seabed where the ship lies is state land. Subsequently, the United States Supreme Court holds that the continental shelf on which the ship rests has never been owned by Florida. The salvagers sue to rescind the contract. a. the contract cannot be rescinded b. the parties made a mutual mistake for which the contract should be avoided c. there is a mutual mistake, but because it is not material, the court should enforce the contract d. the US gov will automatically step into the shoes of the state of Florida to make the contract enforceable

B

The UCC is substantially the same as the common law with regard to the doctrine of material breach of contract A. True B. False

B

There is only one way to completely and legally discharge a contract A. True B. False

B

Unless one of the parties contractually assumes the risk, the ____ discharges a contract if supervening circumstances make fulfillment of the purpose which both parties had in mind impossible. a. bankruptcy law b. frustration of purpose doctrine c. perfect tender rule d. subjective impossibility doctrine

B

Which of the following is a contract with a condition subsequent? a. Rhonda enters into a contract to buy a new car conditional upon her getting a loan from her bank b. Roger bought a VCR but he may return the VCR within ten days and get all of his money back c. both (a) and (b) are examples of a condition subsequent d. neither (a) nor (b) is an example of a condition subsequent

B

Bill recently borrowed $50 from Ricardo for a couple of weeks. Bill, still short of cash, tells Ricardo, "I will wash and wax your car in exchange for the $50 I owe you." Ricardo tells Bill, "OK, that's great!" Ricardo's performance of his new duty will be a(n): a. accord. b. novation. c. rescission. d. satisfaction.

d. satisfaction.

William recently sold his successful business to Janice. The contract for the sale contained an unreasonable restriction that did not allow William to open a similar business for fifteen years. The courts would, in this instance,

delete the unreasonable portions of the contract

The definition of "goods" in the UCC does not include timber, minerals, or a building attached to real property even if removed by the seller. True False

false

The risk of loss for "sale or return" is the same as for a sale "on approval."

false

The seller's tender of performance does not have to conform to the UCC's perfect tender rule.

false

Under a shipment contract, the seller passes title to the buyer when the goods arrive at the final destination.

false

Under the Code an oral contract for specially manufactured goods costing $500 is enforceable even if the seller has not begun their manufacture.

false

Under the Code, an oral contract for specially manufactured goods costing $500 is enforceable even if the seller has not begun their manufacture

false

a bargain by a candidate for public office to make a certain appointment following the election is legal

false

a breach of contract always discharges the injured party from performance under the contract

false

a collateral promise is an undertaking to be primarily liable for the principal debtor's debt

false

a condition subsequent is a much more frequent occurrence than a condition precedent

false

a contract may not be express, bilateral, valid, and executory at the same time

false

a contract to pay for lawn care services costing $1,500 would have to be evidenced by writing to be enforceable

false

a contract to sell life insurance is covered by Article 2 of the UCC

false

a grand jury decision will result in a final judgement as to the guilt ot innocence of the defendant

false

a modification to a contract for the sale of goods must always be supported by additional consideration

false

a person who falls asleep while driving would not be liable for any resulting injury since it would be an unavoidable accident

false

a revenue license is a measure to protect the public from unqualified practitioners

false

a unilateral contract is not valid if a promise is exchanged for a forbearance

false

administrative agencies do not have the checks and balances of other branches of government

false

an offer is effective as soon as it is dispatched

false

an offer may not be made to the general public

false

appropriation is the unreasonable interference with the seclusion of another

false

assignments that materially increase the risk, duty, or burden on the obligor will nonetheless remain effective and enforceable

false

both the 1st and 14th amendments contain due process clauses

false

both the first and fourteenth amendment contain due process clauses

false

disaffirmance must be express; it may not be implied

false

even if a defendant's own negligent conduct created an emergency, he will not be liable for the consequences of the conduct if he acted with care in the resulting emergency situation

false

generally, silence or nondisclosure of a fact amounts to fraud in arm's-length transactions

false

in a contract to sell necessaries to a minor, these goods and services are limited to medical care, food, and shelter

false

selling liquor to a minor can result in criminal liability only if the seller intended to sell to an underage person

false

silence can never be an acceptance

false

strict liability is a tort doctrine based on negligence

false

the Abbot corporation contracts with the Baker corporation to sell to Baker its entire production. After signing the agreement, Abbot can increase its production from one shift to two shifts and Baker will have to buy all of the doubled production

false

the UCC statute of frauds requires that the writing include all agreed-upon terms

false

the bill of rights was included in the original US constitution

false

the common law "mirror image" rule applied to an offer and the acceptance of that offer in a contract for the sale of goods

false

the costs or losses an injured party avoid by not having to perform are not figured in the computation of damages

false

the courts generally will enforce exculpatory clauses

false

the difference between duress from improper threats and undue influence is that one makes an agreement voidable and the other makes an agreement void

false

the doctrine of superseding cause is not a defense in negligence cases

false

the federal government has no restrictions under the constitution on its power to impair contracts since the contract clause retricts only actions of the states

false

the federal government has no restrictions under the constitution on its power to impair contracts, since the contract clause restricts only actions of the states

false

the fifth amendment would protect a defendant from having to give blood samples to the prosecution since it would be a form of self-incrimination as interpreted by the courts

false

the first amendment allows free speech in any and all circumstances

false

the first amendment protects individuals and corporations

false

the first amendment protects individuals not corporations

false

the key distinction between larceny and embezzlement is whether the person taking the property has the intent to deprive the victim permanently of the goods

false

the law regards the performance of a public duty as a legal detriment or a legal benefit

false

the primary purpose of tort law is to punish the wrongdoer

false

the term "publicity" as used in the tort of public disclosure of private facts is interchangebale with the term "publication" as used in the law of defemation

false

the test for duress is objective and the act must be classified as a tort or a crime in order to be wrongful

false

to fully compensate a plaintiff for losses suffered for a breach of contract, punitive damages are always awarded

false

under contract law, a person will be held to agreements he or she made whether he or she had free will or not

false

under the UCC, an acceptance must always be identical to an offer for a valid contract to be formed

false

under the equal protection clause, all governmental action that treats two classes of citizens differently will be invalid

false

when it is received, an offer gives the offeror the power to create a contract by acceptance

false

when one part of a contract is illegal, the entire contract is void

false

Carrie, age 14, contracted to buy a fur coat by mail. If the coat manufacturer found out Carrie's age, they could refuse to enter into a contract with Carrie

false?

In general, if a minor lies about her age in order to induce the seller to contract with her, she cannot disaffirm that contract

false?

Fay, age 17, ordered a pair of skis on the installment plan. She paid $20 every month until she turned 18, the age of majority. The next day, she sold them to Sharon and disaffirmed the contract. What result?

fay is still liable because selling the skis amounts to a ratification

the division of governing power between the federal government and the states is:

federalism

a crime that is punishable by death or imprisonment in a penitentiary is a:

felony

the ___ and ___ amendments respectively prohibit the federal and state governments from depriving any person of life, liberty, or property without due process of law

fifth and fourteenth

compliance with a legislative enactment does not prevent ...

finding negligence if a reasonable person would have take additional precautions -rules establish minimum standards

because defamation involves a communication, the protection extended to speech by the __ amendment applies

first

acceptance following a prior rejection (effective moment)

first communication received by the offeror is effective

proximate cause in negligence cases is also known as

foreseeability

electronic records

full effect is given to electronic contracts and signatures

silence as acceptance

generally does not indicate acceptance of the offer

effective moment

generally upon dispatch

revocation

generally, an offer may be terminated at any time before it is accepted, subject to the following exceptions (option contract, firm offer, statutory irrevocability, irrevocable offer of unilateral contracts, promissory estoppel)

what probable cause needs to be shown for the issuance of a search warrant?

given all evidence, there is a fair probability that contraband or evidence of a crime is present

exclusive dealing contract

grant to a franchisee or licensee by a manufacturer of the sole right to sell goods in a defined market

which of the following is a special relationship giving rise to a duty to act to aid or protect one in peril

hotel and guest school principal and student

Scott, a minor, sells his digital camera to Megan, who then sells it to Sherry. Under these circumstances:

if Sherry is a good faith purchaser for value and she buys the camera before Scott elects to rescind, no rescission is permitted.

An executor personally promises to pay the debts of the decedent's widow. Under what circumstances would the creditor need to have a writing in order to enforce this promise?

if the promise is made to the creditor

defenses against beneficiary

in an action by the intended beneficiary to enforce the promise, the promisor may assert any defense that would be available to her if the action had been brought by the promisee

definition (essentials of an offer)

indication of willingness to enter into a contract

duty to invitees (land)

-person invited upon land as member of public or for business purpose -exercise reasonable care to protect against dangerous conditions they are unlikely to discover

duty to trespassers (land)

-person who enters or remains on land without permission or privilege -land possessor is not liable for failure to maintain the land in reasonably safe condition -not free to inflict intentional injury

modified comparative negligence

-plaintiff recovers unless their contributory negligence was equal to or greater than that of the defendant

Which of the following would be considered a material breach of contract?

- delivery of 50 chairs in a contract that calls for 100 chairs - partial performance that omits some essential part of the contract - an intentional breach of the contract

the doctrine of res ipsa loquitur would permit the court to infer negligence in which of the following situations

-a chandelier fell on a patron's head in the restaurant dining room -a golfer on a golf course was hit in the head with a stray shot golf ball

but for rule

-a person's conduct is the cause of an event if the event would not have occurred but for the person's negligent conduct -not useful with two forces contributing

reasonable person

-a prudent person, whose behavior is considered the standard of conduct what they would have done in a situation -external and objective

activities giving rise to strict liability

-abnormally dangerous activity -keeping animals -selling defective, unreasonably dangerous products

two elements of a crime

-actus reus (wrongful or overt act) -mens rea (criminal or mental intent)

crime

-any act or omission forbidden by public law in the interest of protecting society and made punishable by the government in a judicial proceeding -fines, imprisonment, probation, death

areas of federal law that impose both civil and criminal penalties

-bankruptcy -antitrust -securities regulation -environmental regulation

Jeanne, a wealthy widow, promises the pastor of her church that she will donate $100,000 to the church to help pay off its mortgage, if the stewardship committee can obtain enough pledges for the balance of the $300,000 mortgage. The stewardship committee has meetings to prepare for the campaign and spends $3,000 on printing to publicize the "Mortgage Burning Campaign." The committee also spends considerable time and resources on planning specific fund-raising projects. Other pledges are obtained to pay off the mortgage, but now Jeanne has changed her mind and plans to take a world cruise instead. a.There is no consideration for Jeanne's promise to donate $100,000. It was a promise to make a gift, and gift promises can never be made enforceable in a court of law. b.The committee's actions could be seen by a court asked to enforce the agreement as consideration for Jeanne's promise. This would satisfy the requirement that consideration by both parties must be found for there to be an enforceable contract. c.Under Section 90 of the Restatement, Jeanne's promise is not enforceable. d.Jeanne's promise falls under the common law doctrine that promises made to satisfy a preexisting moral obligation are generally unenforceable.

B

Karen has agreed to buy Sara's car, but the two have not agreed as to the price. When there is no agreement in a sales contract as to price, what effect does it have on the contract? a.The price is whatever the seller decides. b.The price may be fixed as a reasonable price. c.The price is whatever the buyer wants to pay. d.There is no contract, because the agreement is not definite and certain enough.

B

Lou and David have an executory contract that is supposed to be performed on June 1. On May 1, David indicates that he has no intention of performing the contract as agreed. Lou must wait until June 1 before he can pursue any remedies for breach of contract against David. A. True B. False

B

Meg has contracted to paint a portrait of Julio, but dies before completing the portrait. Which of the following is correct? a. Meg's executor must find a capable artist to complete the work to Julio's satisfaction. b. Meg's contractual duty is discharged due to objective impossibility. c. A novation must be entered between Julio and a third person in order to discharge Meg's duty under the contract. d. Meg's contractual duty is discharged due to subjective impossibility.

B

On November 1, Paula and Roberta enter into a contract where both parties are obligated to perform on December 31. On December 1, Paula tells Roberta, "I can, in no way, perform my duties in our contract." This statement is a(n): a. material alteration. b. anticipatory repudiation. c. nonmaterial breach since the statement is made before December 31. d. accord.

B

Rose is working hard on Arlin's mayoral campaign. She thinks that just a few more votes could win the election, so she promises to pay her friend Violet $50 if she will register and vote for Arlin. Violet does so, but Arlin loses the election, and Rose now refuses to pay. Rose's agreement to pay Violet: a. is enforceable b. is unenforceable and opposed to public policy c. will obstruct the administration of justice d. is an unconscionable contract covered by the UCC

B

The "perfect tender rule" would allow a buyer to keep merchandise that deviates from the contract without having to perform himself. A. True B. False

B

The Code and the Restatement have no provisions for discharge of contractual duties in cases involving commercial impracticability. A. True B. False

B

The Restatement and the Code have made the traditional test of objective impossibility more stringent by requiring that the performance must be actually or literally impossible. A. True B. False

B

Which of the following is a contract with a condition subsequent? a. Rhonda enters into a contract to buy a new car conditional upon her getting a loan from her bank. b. Roger bought a VCR, but he may return the VCR within ten days and get all of his money back. c. Both (a) and (b) are examples of a condition subsequent. d. Neither (a) nor (b) is an example of a condition subsequent.

B

Which of the following is correct with regard to duress? a.It always renders a contract void. b.Duress by improper threats is the most common form of duress. c.The act causing duress must in itself be either a crime or a tort. d.All of these are correct with regard to duress.

B

Which of the following is/are correct with regard to conditions subsequent? a. Conditions subsequent are quite common in contracts. b. A "sale or return" contract is an example of a contract with a condition subsequent. c. A condition subsequent must occur before performance is due under a contract. d. All of the above are correct.

B

the requirement that each party to a contract must intentionally exchange something of value as an inducement to the other party to make a return exchange is known as: a. mutual assent b. consideration c. legality of object d. contractual capacity

B

what is another name for the main purpose doctrine? a. the suretyship provision b. the leading object rule c. the possibility test d. the collateral promise rule

B

which of the following is correct with regard to duress? a. it always renders a contract void b. duress by improper threats is the most common form of duress c. the act constituting duress must be either a crime or a tort in order to be considered wrongful d. all of the above

B

Janice contracts to sell a certain tract of land to Anthony for $5,000, but the contract does not state a time for delivery of the deed and payment of the price. In this situation: a. the contract will be considered void for lack of essential terms. b. the law will imply that the respective performances are independent of each other and may occur whenever "reasonable under the circumstances." c. courts will treat the promises to deliver the deed and to pay the $5,000 as mutually dependent. Anthony's duty to pay is conditioned upon Janice's delivery of the deed and Janice's duty to deliver the deed is conditioned upon Anthony's payment or tender of $5,000 to Janice. d. Janice's duty to deliver the deed and Anthony's duty to pay the $5,000 are "implied-in-fact" conditions.

C

Unless one of the parties contractually assumes the risk, the ____ discharges a contract if supervening circumstances make fulfillment of the purpose which both parties had in mind impossible. a. bankruptcy law b. frustration of purpose doctrine c. perfect tender rule d. subjective impossibility doctrine

B. frustration of purpose doctrine

A(n) ____ is a measure designed to protect the public from unqualified practitioners a. exculpatory clause b. revenue license c. regulatory license d. usury statute

C

A(n) ____ is a substituted contract that involves an agreement among three parties to substitute a new promisee in place of an existing promisee, or to replace an existing promisor with a new one. a. accord b. satisfaction c. novation d. mutual rescission

C

Ashley wrote a defamatory letter regarding Brian which she mailed to Brian, but which she did not show to anyone else. Ashley has committed: a. the tort of slander b. the tort of libel c. neither libel nor slander, because there has been no publication of the letter d. the tort of false light

C

Barbara, an antique dealer, intentionally represents the value of an antique chest of drawers, as $6,000 when she has reason to know the value is considerably less. Margaret agrees to buy it for $5,500. It is worth $2,500. In a state that uses the "out-of-pocket" rule, Margaret's damage award would be: a. $3,500 b. $2,500 c. $3,000 d. $500

C

Before granting an injunction enjoining a former employee from competing in a described territory, the courts insist that the employer demonstrate that the restriction is ___ to protect the employer's legitimate interest a. exculpatory b. unconscionable c. necessary d. usurious

C

Chris was driving a car with defective brakes very slowly down Fifth Avenue looking for a parking place. Mindy jumped out into the street five feet in front of his car. Chris could not avoid hitting her. What is Chris's best defense to the charge of negligence? a. Mindy had a mental deficiency b. Chris was not negligent since he did not have a statutory duty to keep his brakes in top condition c. Mindy crossed in the middle of the street, which is against the law d. he was lawfully seeking a parking place and did not see her jump out

C

Contracts induced by threats of ____ are voidable, regardless of whether the coerced party has committed an unlawful act. a. civil prosecution b. criminal prosecution c. tortious conduct d. physical force

C

If the contract does not state otherwise, standard goods under a contract for sale to meet the satisfaction of the buyer must: a. meet the buyer's actual satisfaction, if honest and in good faith, even if unreasonable b. meet the buyer's actual satisfaction, only if reasonable c. satisfy a reasonable person d. meet a subjective standard

C

Margi intentionally pushed Keith into a fence negligently erected by Sam around Sam's swimming pool. The fence caved in and Keith nearly drowned. Who is liable? a. Sam because of his negligent conduct b. Sam because Margi's conduct would be foreseeable c. Margi because her intentional conduct was a superseding cause of harm d. Sam and Margi because they both contributed to the harm

C

Anita included Bob's name and photograph in a list of the FBI's top ten criminals. Bob has never been convicted of any crime and is horrified by the thought of being thought a criminal. a. this is defamation b. this is false light c. this is nuisance d. this could be either defamation or false light

D

Anita, who is a tailor, agrees to sew a suit for Bryan, who promises in return to pay Anita $500 for the suit if he is satisfied with it. Anita completes the suit, which fits Bryan perfectly. Nevertheless, he says that he is not satisfied and refuses to accept or pay for it. Bryan is honest in his dissatisfaction, but he is unreasonable. a. Bryan must pay for the suit even if he is dissatisfied. b. This is an illusory contract, because only Anita is bound. c. Bryan's approval is an objective standard. d. Anita has no recourse against Bryan, because she agreed to the subjective standard.

D

Bill recently borrowed $50 from Ricardo for a couple of weeks. Bill, still short of cash, tells Ricardo, "I will wash and wax your car in exchange for the $50 I owe you." Ricardo tells Bill, "OK, that's great!" Ricardo's performance of his new duty will be a(n): a. accord. b. novation. c. rescission. d. satisfaction.

D

Fourteen-year-old Marsha bought $120 worth of video games at a local store, using her own money. Her parents insisted that she return the items and get her money back. Which of the following is true? a. in most jurisdictions, Marsha may get some of her money back but she must pay the reasonable value of the goods if that differs from the contract price b. in most jurisdictions, Marsha may get her money back only if she has not opened or damaged the merchandise in any way c. if there is a conflict, the store's return policy will override Marsha's right of disaffirmation d. in a majority of jurisdictions, Marsha may get her money back even if she cannot return the merchandise

D

Franco has the permission of George to walk across his yard on the way to school. If Franco brings twenty of his friends across the yard, and they stop to play ball: a. Franco is not guilty of trespass to real property, because he had George's permission to cross the yard. b. Franco's friends are not guilty of trespass to real property, because they were with Franco. c. Franco is guilty of trespass to real property, because he walked across the yard. d. Franco and his friends are guilty of trespass to real property, because they played ball in George's yard.

D

Wayne helped Hank study all night for an important exam. After Hank got an A on the exam, he told Wayne, "I will give you $10 for helping me get a good grade." Wayne said, "Thanks, I'll take it."

There is no contract because there is no valid consideration

which of the following would be considered a valid and legally enforceable agreement?

an agreement by a car salesman not to sell automobiles or automobile parts in Marin County for a period of one year after terminating his employment

Brightstone Co. and Allsale Co. enter an oral contract providing Allsale will provide 100 dozen toys at $50 per dozen to Brightstone. Brightstone faxes a letter to Allsale acknowledging the agreement, but stating only the quantity, not the price. Allsale: a. cannot raise the defense of the statute of frauds if Allsale did not object to the letter within ten days after receiving it. b. cannot raise the defense of the statute of frauds since it is a merchant. c. can raise the defense of the statute of frauds since the oral agreement was for the sale of goods with a price of $500 or more. d. can raise the defense of the statute of frauds since the writing did not contain all the material terms of the agreement.

a. cannot raise the defense of the statute of frauds if Allsale did not object to the letter within ten days after receiving it.

Under the UCC, a(n) ____ is a sequence of previous conduct between the parties to an agreement which may be fairly regarded as establishing a common basis of understanding for interpreting their conduct under the contract. a. course of dealing b. usage of trade c. course of performance d. integrated document

a. course of dealing

Notice of an assignment: a. cuts off any defenses based on subsequent agreements between the obligor and assignor. b. does not prevent subsequent setoffs of the obligor that arise out of separate matters. c. does not bar subsequent counterclaims of the obligor that arise out of separate matters. d. has no effect on defenses based on subsequent agreements between the obligor and assignor or on subsequent setoffs and counterclaims of the obligor that arise out of separate matters.

a. cuts off any defenses based on subsequent agreements between the obligor and assignor.

A(n) ____ is a third party who obtains possible benefits but no rights under a contract. a. incidental beneficiary b. intended beneficiary c. assignor d. donee beneficiary

a. incidental beneficiary

David enters into a contract to give Edward the right of first refusal to purchase a tract of land owned by David. David subsequently offers the land to Fred without first offering it to Edward. An appropriate remedy for Edward to seek would be: a. injunction. b. liquidated damages. c. reformation. d. punitive damages.

a. injunction

Anita owes Brad $75,000. Brad signs a written statement granting Glen a gratuitous assignment of his rights from Anita. Brad delivers the signed statement to Glen before Brad dies. The assignment is: a. irrevocable because of the delivery of the statement. b. terminated upon Brad's death. c. irrevocable because of the signing of the statement. d. invalid because it is revocable.

a. irrevocable because of the delivery of the statement.

Bill has a right against Heather and assigns it for $100 to Dan. Later, Bill grants Heather a release. Bill: a. is liable to Dan for damages because he breached an implied warranty. b. has no liability to Dan because he did not expressly warrant that he would not impair the assignment. c. has no liability to Dan because the only implied warranty he made was that the assigned right actually existed at the time of the assignment. d. was acting contrary to public policy by assigning a contractual right for money.

a. is liable to Dan for damages because he breached an implied warranty

Robert is 17 years old. He lies to Bouyers Auto in order to induce it to sell him a new pickup. Bouyers falls for this lie and sells him the pickup. In most jurisdictions, Robert: a. may disaffirm and get his money back. b. may not disaffirm since he lied. c. must restore Bouyers to its position before contracting with him. d. will receive his money less depreciation.

a. may disaffirm and get his money back.

The Code greatly alters the common law doctrine of material breach by adopting what is known as the: a. perfect tender rule. b. anticipatory repudiation rule. c. prevention of performance rule. d. discharge by operation of rule law.

a. perfect tender rule.

When contract terms prohibiting the assignment of rights exist, most courts will: a. strictly construe them. b. interpret a general term prohibiting assignments as rendering any assignment ineffective. c. award the obligor no right to damages for breach of a general term prohibiting assignments. d. All of the above.

a. strictly construe them

In the case of Michael Silvestri v. Optus Software, Inc., the court held: a. the employer won as he was allowed to conclude that the employee's efforts were unsatisfactory; a subjective standard is typically applied to satisfaction clauses in employment contracts. b. the employee won as idiosyncratic judgments as to what constitutes satisfactory employee performance are inherently unfair and should not be allowed. c. the employer won because an objective standard must be used in determining what is satisfactory performance in any "satisfaction" contracts. d. the employee won as an objective standard is typically applied to satisfaction clauses in employment contracts.

a. the employer won as he was allowed to conclude that the employee's efforts were unsatisfactory; a subjective standard is typically applied to satisfaction clauses in employment contracts.

Lynn, a tailor, agrees to sew a pair of drapes for Zach's living room. Zach promises to pay Lynn $300. Lynn completes the drapes using material selected by Zach, but Zach is not satisfied and refuses to pay for them. In this case: a. whether Zach will have to pay for the drapes depends upon whether as a reasonable man he ought to be satisfied. b. the standard applied here is a subjective standard of satisfaction. c. the doctrine of frustration of purpose applies. d. the condition of satisfaction is an express condition.

a. whether Zach will have to pay for the drapes depends upon whether as a reasonable man he ought to be satisfied.

general rule of communication of acceptance

acceptance effective upon dispatch unless the offer specifically provides otherwise or the offeree uses an unauthorized means of communication

unauthorized means (effective moment)

acceptance effective when received, provided that it is received within the time within which the authorized means would have arrived

Sam, a shopkeeper, dies unexpectedly at the age of 46. His lifelong business associate, Paul, is appointed the administrator of the estate. Sam had a personal debt of $8,000 which he owed to Art's Appliance Store. Paul says to Art, "If there isn't enough money in the estate, I'll personally see that the bill is paid." Which of the following is correct? a. The oral statement is enforceable because Paul is the administrator. b. An oral statement such as this is not enforceable because it is outside the statute of frauds. c. An oral statement such as this is not enforceable because this promise is within the statute of frauds. d. The oral statement is enforceable because it is a collateral promise.

c. An oral statement such as this is not enforceable because this promise is within the statute of frauds.

The statute enacted by Congress which makes electronic records and signatures valid and enforceable for many transactions affecting interstate or foreign commerce is the: a. UETA. b. UCC, Article 2E. c. Electronic Signatures in Global and National Commerce Act. d. Interstate and Foreign Commerce Electronic Transactions Act.

c. Electronic Signatures in Global and National Commerce Act.

Which of the following promises in consideration of marriage would be outside the statute of frauds? a. In consideration of Joan's promising to marry him, a man promises to pay her an allowance and to give her all of his property upon his death. b. John and Mary mutually agree that their marriage shall not affect the existing property rights of the other. c. John and Joan mutually promise to marry each other in a formal ceremony on June 23. d. Joan promises to release a money judgment against Steven in consideration of his marrying her.

c. John and Joan mutually promise to marry each other in a formal ceremony on June 23.

Russell promises Marty $1,500 if he will completely landscape Russell's yard. Which of the following would discharge Russell's obligations to pay under this contract? a. Marty leaves a one-foot strip of land barren. b. Marty doesn't begin work on the landscaping until after he finishes two other jobs. c. Marty doesn't plant any flowers, shrubs, or grasses. d. Russell isn't satisfied with Marty's design.

c. Marty doesn't plant any flowers, shrubs, or grasses

Noel and Lyle have a contract whereby Noel is to perform routine construction services according to the blueprints that Lyle has provided. Noel assigns the contract to David. As a result of this assignment: a. Lyle can bring suit based upon detrimental reliance. b. Noel has no more rights or responsibilities with regard to the contract. c. Noel no longer has any rights under the contract, but he remains responsible for the duties he agreed to perform. d. Noel has all of his rights under the contract, but he has no responsibility for the performance of the duties.

c. Noel no longer has any rights under the contract, but he remains responsible for the duties he agreed to perform

Percy, age 17, purchased a used mobile home from a mobile home dealer for $20,000. This price, however, was twice the reasonable value of the mobile home. One month later, Percy wishes to disaffirm the contract. If the mobile home is considered a necessary, then: a. Percy can disaffirm the contract based on the wrongful act of the dealer. b. Percy can disaffirm the contract because the minor can live in an apartment rather than a mobile home. c. Percy may keep the mobile home but is only liable for the reasonable value of the mobile home. d. Percy must keep the mobile home and abide by the original terms of the contract.

c. Percy may keep the mobile home but is only liable for the reasonable value of the mobile home.

Which of the following is not true regarding the contracts of intoxicated persons? a. If an intoxicated person is unable to understand the nature and consequences of his act, then the contract is voidable. b. The effect of intoxication is generally the same as that given to contracts that are voidable because of incompetency. c. Slight intoxication will destroy one's contractual capacity. d. Contracts made while a person is too intoxicated to act in a reasonable manner may be ratified when the intoxicated person regains his capacity.

c. Slight intoxication will destroy one's contractual capacity.

The parol evidence rule does not apply to: a. a typographical error that obviously does not represent the agreement of the parties. b. evidence showing one of the parties to the contract lacks contractual capacity. c. The parol evidence rule does not apply to the situation in either (a) or (b). d. The parol evidence rule applies to the situations in both (a) and (b).

c. The parol evidence rule does not apply to the situation in either (a) or (b).

On March 1, Sara, a student, received a telephone call from ComputerChip, Inc. offering her a job for one year beginning on June 15, after completion of the school year. According to the personnel manager, she will have to move to California and be ready to start work at 8:00 a.m. on June 15. Should Sara ask for a letter confirming the telephone conversation if she accepts the offer immediately? a. Yes, because the job offer is a collateral promise b. Yes, because the job offer is covered by the parol evidence rule c. Yes, because the job offer is for longer than one year from March 1 d. No, because the job offer is for one year from June 15

c. Yes, because the job offer is for longer than one year from March 1

A contract contains a provision that states it will be effective for a "year." The plaintiff in a lawsuit claims that a "year" is obviously 12 months. The defendant claims that the contract meant a 10-month school year. Parol evidence: a. cannot be used to explain the term, because the plain meaning of a "year" is 12 months. b. cannot be used to explain the term, because it is an integrated document. c. can be used to clarify the parties' intent because in this contract the term "year" is ambiguous. d. cannot be used, because the contract contains an express term that could have been changed by the parties prior to the contract's execution.

c. can be used to clarify the parties' intent because in this contract the term "year" is ambiguous.

Under the UCC, ____ refers to the manner and extent to which the respective parties to a contract have accepted successive tenders of performance by the other party without objection. a. course of dealing b. usage of trade c. course of performance d. integrated document

c. course of performance

Professor Dought has a life insurance policy on his own life that provides that in the event of his death, his mother will receive the proceeds. Professor Dought's mother is a(n): a. incidental beneficiary. b. creditor beneficiary. c. donee beneficiary. d. assignee.

c. donee beneficiary

A buyer is not obligated to accept conforming goods and to pay for them according to the contract terms.

false

Harry said to Marge, "I have a ring once owned by Marilyn Monroe. Would you like to buy it for $500?" Marge pays for the ring, but the next day a friend tells her that Harry had recently purchased the ring at a local department store. Marge enjoys wearing the ring and wears it constantly for twelve months. Finally, she goes to Harry and says, "Here is the ring you lied about. Give me my $500." Most likely Marge will: a. get her money back since Harry's representation was fraudulent. b. not get her money back since she should have investigated the facts about the ring more carefully. c. get her money back since she is a good faith purchaser of merchandise. d. not get her money back since she has affirmed the contract by taking an unduly long time to disaffirm.

d. not get her money back since she has affirmed the contract by taking an unduly long time to disaffirm

Brice owns a parcel of land that is encumbered by a mortgage held by the First National Bank. Brice agrees to sell the land to Paul for $50,000. Brice and Paul together go to the First National Bank to discuss the sale and purchase with the banker. Brice, Paul, and the banker sign an agreement stating that Paul will assume the mortgage and that Brice will be discharged from all further liability on the mortgage. In this case: a. the bank is a third party donee beneficiary. b. the bank can collect from Brice if Paul defaults. c. Brice is a third party beneficiary of the agreement between Paul and the bank. d. the agreement among the three is a novation.

d. the agreement among the three is a novation.

A tailor agrees to sew a suit for Bryan, who promises in return to pay $500 for the suit if he is satisfied with it. The tailor completes the suit, which fits Bryan perfectly. Nevertheless, he says that he is not satisfied and refuses to accept or pay for it. Bryan is honest in his dissatisfaction, but he is unreasonable. In this case: a. Bryan must pay for the suit even if he is dissatisfied. b. this is an illusory contract, because only the tailor is bound. c. Bryan's approval is an objective standard. d. the tailor has no recourse, because he agreed to the subjective standard.

d. the tailor has no recourse, because he agreed to the subjective standard.

Notice of an assignment: a. must be given to the obligor. b. cuts off any defenses based on subsequent agreements between the obligor and assignor. c. precludes subsequent setoffs and counterclaims of the obligor that arise out of entirely separate matters. d. All of the above. e. Only (b) and (c).

e. Only (b) and (c).

consideration

each party to a contract must intentionally exchange a legal benefit or incur a legal detriment as an inducement to the other party to make a return exchange

common law contracts deal with

employment, services, insurance, real property, patents, and copyrights

Rick Hagedorn enters into a contract with Mike England under the terms of which England promises to pay Hagedorn $7,000 and Hagedorn promises to build a garage, repair a boat, and build a doghouse. If the doghouse has not yet been built, which term describes the type of contract in existence

executory contract

the crime of making threats for the purpose of obtaining money or property is known as:

extortion

breach of contract

failure to properly perform a contractual obligation

"Consideration" requires an actual benefit to both sides of an agreement

false

"interpretative rules" are court-issued opinions concerning the rules of various agencies

false

A bargain by a candidate for public office to make a certain appointment following the election is legal.

false


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