Law (BSAD 4210) Exam Prep

Which of the following is evidence of legally valid consideration?

A benefit of the promisor

Under the UCC, which of the following constitute a writing sufficient to satisfy the Statute of Frauds?

A canceled check An invoice A faxed copy of a document

Which of the following is a promise most likely to be enforced even if it is not supported by consideration?

A charitable pledge

Which of the following must be present for a court to apply the doctrine of promissory estoppel?

A clear and definite promise Reliance by the plaintiff Reliance of a substantial and definite character

I hire Bono (from the band U2) on July 4, 2010 to play at my Christmas party in 2011. I will pay him $10,000. Does this contract have to be in writing?

Yes, because the contract will take over a year to complete

Roger buys a tractor from John Deer. It is not delivered on time, and as a result, much of Roger's crops are damaged. Will Roger be able to recover damages for his lost crops?

Yes, but only if the damages were foreseeable

Billy Bob Jones sits down to sign a contract ordering a motorcycle. Which of the following, if written by Billy Bob, would be a valid signature?

"B.B. Jones" "Billy Bob" "B"

Which of the following ads is an offer?

"Chevy Trucks, $12,000. Ten to choose from, first come, first served."

Curtis goes to work for Dell computers. Which of these contracts would require a writing?

"I will work for you for 5 years."

Mark is a shady used car dealer. Which of the following statements are fraudulent if made about a 1976 Pinto?

"It's a 1978 Pinto."

Tony offers to buy Scott's motorcycle for $200. Which of the following statements by Scott constitute an acceptance?

"OK, now shake on it." AND "OK, but you are a cheapskate."

Michelle sells collectable antiques. Which of the following statements to a customer would be a misrepresentation by Michelle if coupled with the outcomes described?

"This doll is worth $300;" the doll is actually worth $100

Greg is hired to build a fence for $500. Before he starts, the man who hired him tells Greg he doesn't want the fence built after all. Greg is able to find another fence-building job, but it pays only $400. Further, the new job is far away, and it will cost Greg $50 in gas to travel back and forth. What is the total amount that Greg could receive in punitive damages from the man who breached the original contract?

$0

Kade orders 100 boxes of bananas from Chiquita for $2,000. They are never delivered. The market price of the bananas is $2,000. What amount can Kade seek from Chiquita in compensatory damages?

$0

Lily goes to buy a used car from Pete. Pete pulls a gun on her in his office and forces her to sign a contract in which she agrees to buy a 1976 Pinto for $5,000. (The car's fair market value is $200). Later, Pete assigns his rights to receive the $5,000 to his friend John. John goes to court to try to collect the $5,000 from Lily. She raises the defense of duress. How much money will John be able to recover from Lily?

$0

Connor, who is 17, buys a TV for $1,000. On the way home he negligently drops it and breaks the picture tube. The tube will cost $500 to replace. He returns the TV to the store and demands a refund. In a majority of states, how much cash must the store return to Connor.(note Connor's act is not gross negligence.)

$1,000

Anna is 17 and rents an apartment for two months for $500 total. The reasonable value of the apartment for that time is only $400, but Anna rents it anyway because it is near the store where she works. After signing the contract and paying the $500, Anna decides to disaffirm the contract. How much of her $500 is she entitled to?

$100

Nordstrom hires ConstructCo. to build a two-story new store. ConstructCo. is to be paid $200,000 for the job, and will see a profit of $50,000. After the first story is complete and ConstructCo. has spent $75,000, Nordstrom breaches the contract. What amount of damages will ConstructCo. receive in court in this case?

$125,000

Nordstrom hires ConstructCo. to build a two-story new store. ConstructCo. is to be paid $200,000 for the job, and will see a profit of $50,000. Before they start work or receive payment, ConstructCo. breaches the contract. Nordstrom has to pay another company $240,000 to do the job. How much can Nordstrom receive in damages in an action against ConstructCo.?

$40,000

Your grandfather tells you, "If you get a 4.0 grade point average this semester, then you can have my car when I die." Your grades are ______________________, and your grandfather's death is ___________________.

A condition precedent; not a condition

Which of the following is most likely to be the subject matter of a valid assignment?

A contract to receive rent payments

Braxton orders a computer from HP. They never ship the computer to him. What has happened?

A material breach of contract

Which of the following is an illusory promise?

A promise to buy "as many as desired"

Jeff jokingly offers to sell his farm to Ron for $100. Ron accepts, and demands the farm after giving Jeff his $100. What is Jeff's best argument that a contract was not formed?

A reasonable person would not think an offer to sell a farm for only $100 was a serious one.

Ethan and Jared are in a dispute over a contract they entered into. Ethan agreed to mow Jared's lawn for $20 and did so. After the work was done, Jared claimed that Ethan did a lousy job and should only be paid $10. After some argument, Jared says, "Alright, I'll pay you $15." Jared's statement is a(n)

Accord

Missy offers to sell one of her puppies to Bailey and Bailey decides to think about the offer overnight. Which of the statements below would terminate the offer if it happened overnight?

All of the above (missy is eaten by a raptor, Bailey is eaten by a raptor, the puppy is eaten by a raptor).

Which of the following 17 year olds can form valid contracts and have no right disaffirm contacts?

Allison, who ran away from home to work in another state and contracts for an apartment. Carly, who has been granted emancipation by a court

Adam buys a car when he is 17 and agrees to make monthly payments for two years. The two years pass and Adam makes all the payments. Which of the following has taken place?

An implied ratification

Carson and John write out a simple contract and put it in an envelope. What type of contract have they formed?

An informal contract

Which of the following persons is/are "intoxicated"?

Andy, who has had 14 shots of tequila Karen, Who has smoked a 4-inch diameter "wonder-joint" Drew, who has taken four prescription tranquilizers

Assume all of the following businesses have customers sign exculpatory clauses that read, "Operator not liable for any loss or injury." Which of these is the MOST likely to be enforced. (That is, which operator is most likely to not be liable for loss or injury?)

AstroWorld, an amusement park

Eric orders a dozen boxes of paper from Carlie at a cost of $600. Carlie never delivers the paper, and Eric brings a lawsuit. He has a written copy of the agreement between Carlie and himself. For this writing to overcome the Statute of Frauds, which parties must have signed it?

Carlie

Peter offers Chris $1,000 to deliver a shipment to "The Flying Dutchman," and Chris accepts. Peter meant the restaurant "Flying Dutchman," and Chris thought he meant the ship "Flying Dutchman." When Chris learns of Peter's meaning, he wants to get out of the contract, as the restaurant is 100 miles beyond the boat. What will happen?

Chris will not have to make the delivery at all

Greg is hired to build a fence for $500. Before he starts, the man who hired him tells Greg he doesn't want the fence built after all. Greg is able to find another fence-building job, but it pays only $400. Greg sues the man who hired him to build the first fence for $100. This $100 is an example of:

Compensatory damages

Jason, a recent law school graduate, takes the bar exam in July. He expects to get the results in the mail in September. In August, he is hired by the law firm of Dewey, Chatsworth, and Howe. His contract says, "You can start immediately at $42,000 per year, but if you fail the bar exam, you will be terminated immediately." The bar exam clause is a(n)

Condition subsequent

Which of the following are examples of objective impossibility?

Death of a party to a contract Destruction of the subject matter of the contract

James and Bill formed a contract six years ago and James has still not fulfilled his part of the bargain. The statute of limitations in their state is four years. What kind of contract exists today?

Enenforceable

Tyler points a gun to Gerry's head and forces him to sign a contract. What has occurred?

Duress

Which of the following are exceptions to the parol evidence rule? That is, what types of evidence ARE admissible in court?

Evidence a contract was signed under duress Evidence a party to a contract is a minor

Damon makes a contract in which he will sell his car to Matt for $5,000. Damon has delivered the car, and Matt has paid the $5,000. What type of contract is it at this moment?

Executed

Katelyn makes a contract in which she will sell her car to Maddie for $5,000. Katelyn has delivered the car, but Maddie has not yet paid the $5,000. What type of contract is it at this moment?

Executory

Sara makes a contract in which she will sell her car to Ben for $5,000. The contract has been signed, but no further action has taken place. What type of contract is it at this moment?

Executory

Amy orders a stove from Best Buy for $1,000. They deliver the stove, and Amy refuses to pay them. What kind of contact has been formed?

Express

Jenifer calls Allan and orally offers to sell him her computer for $500. Allan accepts. What kind of contract has been formed?

Express

Sydney loses her two dogs. She puts signs all over town that offer a $50 reward for the return of her dogs. Garrett and Beau see the posters and both go find a dog. Garrett finds one of Sydney's dogs, but Beau only finds a look-alike. Charlie does not see the posters, but finds a dog with Sydney's address on it. If all three boys show up at Sydney's house, who will Sydney have a legal obligation to pay?

Garrett

Christian offers to sell Jose' his car. What is the first moment at which he may revoke the offer?

Immediately

Andre drops off his shirts at the cleaners. The clerk writes down his name, and nothing else is said. What kind of contract has been formed?

Implied

A furniture store orders five chairs from a carpenter. They give a key to their store to the carpenter, and tell him to deliver the goods on Sunday, when they will be closed. The chairs are delivered on Sunday, but no payment has yet been made. What has the carpenter done?

Performance Tender

Josh and Ty enter into a construction contract which is to be completed by November 1. The contract states, "For every day after November 1 that the building remains uncompleted, Ty must pay Josh $1,000." For this clause to be enforceable, it must be found that:

It is reasonable in amount Actual damages were hard to estimate when the contract was signed

Shannon offers to sell her car to Jason for $2,000. Jason says, "Would you take $1,500?" Shannon says, "No." Jason then says, "Well I'll take it for $2,000." What has happened?

Jason has rejected Shannon's offer And made a new offer

Hillary is selling a Ming vase at an auction. It is a usual auction in that it is held with reserve. What is the last moment at which Hillary may change her mind and withdraw the vase from the buyers?

Just before the auctioneer drops the hammer and says, "Sold!"

Kathy wants to sell her car to Megan. She says to Megan, "I'll sell you my car for $2,000." In this scenario, ______ is the ________ .

Kathy offeror, Megan offeree

Kevin signs a contract to buy Al's 1977 Camaro for $5,000. Which of the following mistakes could lead to the contract being invalidated?

Kevin believes he is buying Al's second car, a Mustang

Mitch writes a letter to Samantha offering to sell his aquarium for $180, and Samantha calls and accepts the offer. Which fact(s) would be necessary to invalidate the contract?

Mitch meant to type $810 in the offer, and mixed up the numbers Samantha knew that Mitch must have made a mistake in making such a low offer

Lesley has a contract to sell her 2012 Volvo to Jane. At the last minute, Lesley decides she wants to keep her car and refuses to sell it. If Jane sues for breach of contract, what remedies will be available to her?

Monetary damages

Kroger signs a contract to build in Everville, then breaches the contract and backs away from the deal. Which of the following third parties may sue to enforce the contract?

NONE OF THE FOLLOWING A local hardware store that hoped to sell building materials to the construction crew A local deli who hoped to sell food to the construction crew A resident who wanted to shop at a new grocery store

Ron and Troy are in a wreck. The accident was Troy's fault, as he was drunk when it occurred. Ron says, "Pay for my damages or I will sue you." What has occurred?

NONE OF THE FOLLOWING: An adhesion contract Undue influence Duress

Jordan finds a gold coin, and has no idea what it is worth. His friend Isabella does not know its value either, but she offers to buy it for $50, and Jordan agrees. In which of the following situations can Jordan rescind their contract?

NONE OF THE FOLLOWING: The coin's value is actually $1 The coin's value is actually $100 The coin's value is actually $50,000

Zack, a landlord, and Tom, his tenant, have a lease contract. Tom brings a lawsuit, alleging that Zack broke promises to repaint the apartment, provide a microwave and pay the gas and water bills. The contract does not mention any of these items. Under the parole evidence rule, what items is Tom likely to be able to argue about?

NONE OF THE FOLLOWING: The repainting The microwave installation The bills

Trey says to Dillon as they sit alone in a restaurant, "I will sell my boat to Caden for $4,000." To whom has Trey made an offer?

Neither Dillon nor Caden

Aaron says to Mitt, "In consideration of you being such a swell guy, I'm going to give you $100." Is there consideration sufficient to enforce this promise?

No

James has purchased the right to hunt on Will's land. James makes an oral agreement to assign his right to hunt on the land this fall to his sister, Marie. Is this assignment valid?

No

When she buys a property to Bigotville, Jill signs a contract that prohibits her form reselling the property to various people. Which of these prohibitions would be void against public policy?

No resale to Italians No resale to Muslims No resale to Women

Chris has a long-term contract to wash trucks for the city of Seattle. After a year, soap prices increase, making Chris' prices increase by 5%. He informs the City that he will stop washing trucks unless they agree to pay him and extra 5%. The City agrees. Is this modification valid?

No, because Chris had a preexisting duty to wash cars

The Centennial Apartments catch fire. Debbie hears her fire alarm go off and rushes out of the building. Sadly, she has left her baby inside. Debbie yells, "I'll give $500 to anyone who saves my baby." A passerby named Paul walks by after Debbie yells her promise. He is very brave and rescues her baby. Debbie is so happy; she repeats her promise to him and says, "I'm going to give you $500 for saving my baby." Can he force Debbie to give him the reward?

No, because he cannot enforce a promise based on past consideration

The Centennial Apartments catch fire. Debbie hears her fire alarm go off and rushes out of the building. Sadly, she has left her baby inside. Fireman Frank rushes to the scene, and the neighbor Bill watches the action from across the street. Debbie yells, "I'll give $500 to anyone who saves my baby." If Fireman Frank rescues the baby, can he compel Debbie to pay him the $500 reward?

No, because he had a preexisting duty

If Craig is hired to tutor Adam, may Adam assign his right to be tutored to his friend Kurt?

No, because it is a personal service contract

Drew and Steph have a contract whereby Steph will deliver bottled water to Drew. The contract expressly prohibits assignments. Can Drew assign his rights under the contract?

No, because the contract expressly prohibits assignments

Marissa hires Trent to mow her lawn. Trent delegates his duty to cut the grass to his little brother, Scott who can cut it with the same expertise as his brother. Assume Scott does show up to mow the lawn, but Marissa wants Trent to come do it himself. Can she object to the delegation?

No, because the delegation is for routine or nonpersonal labor

Jess signs a contract to cut down 100,000 trees for a lumber mill for $1,000,000. Does this contract have to be in writing?

No, it needs no writing

Kade orders 100 boxes of bananas from Chiquita for $2,000. They are never delivered. The market price of the bananas falls in the meantime to $1800. What type of damages are available to Kade in a breach of contract action?

Nominal damages

Josh wants to work for Mr. Jones. He says to Mr. Jones, "I'll mow your yard every week this summer for $400." Mr. Jones says, "I'll hire you for $400 if you'll also clean my pool every week." At this point, what contractual duties has Josh acquired?

None (He must mow the lawn every week for $400, He must mow and clean the pool every week for $400, He must mow and clean the pool, and will receive $400 plus a reasonable amount)

Kristen comes up to Tim's car when it is stopped at a red light and washes the windshield. What kind of contract has been formed?

None of the above (express, implied, quasi)

Dan calls Mary on the phone and says, "Let's play golf next Friday." Mary replies, "That would be great. Count me in." Which of the following have passes between Dan and Mary?

None of the above (offer, acceptance, legal agreement)

Lily goes to buy a used car from Pete. Pete pulls a gun on her in his office and forces her to sign a contract in which she agrees to buy a 1976 Pinto for $5,000. (The car's fair market value is $200). Later, Pete assigns his rights to receive the $5,000 to his friend John. Which term accurately describes Lily?

Obligor

Jackson is 16, and contracts to buy a car. What is the earliest he may ratify this contract and become bound by it?

On his 18th birthday

Which of the following are within the portion of the Statute of Frauds that deals with interests in land?

Sale of a house Rental of a house Purchase of an acre of land

Professor Junk orders 500 textbooks from a publisher. They mistakenly miscount the number of books during the shipping, and only 498 are sent. What has likely occurred?

Substantial performance A breach of contract

Annie is wrongfully fired from a three-year employment contract. She does not find a new job during the three years, and brings a lawsuit. To reduce their damages, what must the defendants who fired her prove?

That similar jobs were available in Annie's area That Annie could have gotten a similar job

An attorney convinces an elderly client to change his will and give a large gift to the attorney's wife. The man dies, and his heirs sue the attorney. If this case is brought to trial under the claim of undue influence, which statement is accurate concerning the burden of proof?

The attorney must prove he did act with the utmost good faith towards his client

Jordan finds a coin, and believes it is a rare gold piece worth $1,000. His friend Isabella agrees, and she offers to buy it for $1,000. Jordan agrees. In which of the following situations can Isabella rescind their contract?

The coin's value is actually $100 The coin's value is actually $1

Whitney hires Cody to paint her portrait and then deliver the painting to her mother. Cody delegated both of these duties to his friend, Shawn. Which of the delegations is (are) valid?

The obligation to deliver only

A mother and son go bicycle shopping. The bike the son wants costs $400. Which of the following arrangements with the bike shop would require a writing?

The son agrees to pay, and the mother agrees to pay if he does not

Nancy offers to sell her car to Tiffany for $2,000. Tiffany says, "No, I don't want to buy it. Oh, what the heck. I'll take it." What has happened?

Tiffany has rejected Nancy's offer AND made a new offer

Abby, who is on the telephone, offers to sell Valerie her bicycle for $400, and Valerie accepts. Valerie is over 18. Is this agreement a contract?

Yes, because all contractual requirements are met.

Tony owes his roommate Mike $10. One night, Mike orders a pizza. When the delivery man arrives, Mike says, "Tony, if you pay for this pizza, we'll call the debt even." Tony agrees. In this arrangement, who is the promisor?

Tony

Sam has a $100,000 life insurance policy. He names his daughter Jenny as the beneficiary. One day, a satellite enters the atmosphere and plunges towards Earth at 2,000 miles per hour. It crashes through Sam's roof and squashes him. Sam's life insurance company refuses to pay Jenny the $100,000. Can she sue them to recover the money?

Yes, because she is an intended beneficiary

A contest offers $100 to the best two essays handed in by Saturday. Jake and Ryan are selected as the winners. What type of contract exists between Jake, Ryan and the operators of the essay contest?

Unilateral

Troy is crazy, but has never been declared legally insane in the state of Idaho. One day he buys a Sega. He knows exactly what he is doing—he wants to go home and play "Mortal Combat." What is the status of this contract?

Valid

Marcus has been declared legally insane in the state of Idaho. One day he escapes from a mental hospital and buys a Sega. What is the status of this contract?

Void

Noah hires Cooper to take a truck filled with marijuana to California for $10,000. What type of contract has been formed?

Void

Ryleigh hates her daughter's boyfriend, Wyatt. She offers Wyatt $1,000 if he will not marry her daughter. Wyatt accepts. What is the status of their contract?

Void

Alex, who is 14, orders 12 CDs from a mail order music club for a penny. HE signs an agreement to buy 6 more over the next three years. What type of agreement has been formed?

Voidable

Amber voluntarily drinks 14 shots of tequila at a bar. She has no idea what is happening. At some point during the night she signs a contract with Nick to buy Nick's car. What is the status of this contract?

Voidable

Ben goes to buy a car from Mark's car lot. Mark knows that the Ford Pinto is one of the least safe cars of all time, and his models in stock have no modern safety features. When Ben asks about safety, Mark says, "Safest car ever! A tank couldn't be safer. It has state-of-the-art airbags and anti-lock brakes." Ben agrees to buy the car. What is the status of this contract?

Voidable

Colton is crazy, but has never been declared legally insane in the state of Idaho. One day he buys a Sega. He has no appreciation of the purchase, a salesman just convinced him to buy the item. What is the status of this contract?

Voidable

Andrew puts an ad in the paper that offers $100 to the first person who will come and paint his house. Beck decides to paint the house, and heads for Andrew's house. What is that latest moment at which Andrew can change his mind and revoke his offer?

When Beck begins painting

Will, a minor, forms a voidable contract. What does this mean in terms of what will happen to the agreement?

Will may honor the contract if he wishes, or may avoid his obligations if he wishes.

Amanda is Jared's landlord and collects $750 per month rent from him. She feels sorry for Matt, a struggling law student, and decides to assign her rights to receive Jared's rent to Matt. No one notifies Jared of the assignment. Is this a valid assignment?

Yes

The Centennial Apartments catch fire. Debbie hears her fire alarm go off and rushes out of the building. Sadly, she has left her baby inside. Fireman Frank rushes to the scene, and the neighbor Bill watches the action from across the street. Debbie yells, "I'll give $500 to anyone who saves my baby." If her neighbor Bill rescues the baby, can he collect the reward?

Yes