Legal Environment of Business Exam 3 Review
Which section of the Uniform Commercial Code (UCC) applies to contracts for sales of goods? Article 2A Article 3 Article 2 Article 4
Article 2
An implied warranty of fitness for a particular purpose may be properly disclaimed by which of the following? an "all sales are final" statement a verbal "as is" statement a written "as is" statement an email accompanying the receipt for an online order
a written "as is" statement
What implied terms do all contracts include? Choose 2 answers. an implied covenant of good faith an implied agreement to timeliness an implied agreement as to who will pay unexpected costs an implied covenant of fair dealing
an implied covenant of good faith and an implied covenant of fair dealing
Which of the following is an equitable remedy for breach of contract? payment of the cost of cover for items not delivered on time punitive damages when a seller has repeatedly shipped unsafe goods an order for specific performance compensatory damages for having to hire extra help to correct nonconforming goods
an order for specific performance
Todos Ltd. agrees to supply United Steel, Inc., with minerals from Venezuela. When the gov- ern ment is unexpectedly overthrown in a revolution, Todos can obtain the goods only at amuch higher price. United agrees to pay but later les a suit to recover the dierence. Thecourt will most likely rule that a change in government is a risk ordinarily assumed in business an unforeseen difficulty supported the contract modication Todos engaged in extortion or the so-called holdup game Todos had a preexisting duty to supply the goods at the initial price
an unforeseen difficulty supported the contract modication
What elements are required for courts to apply the doctrine of promissory estoppel? Choose 3 answers. Enforcement of the promise is necessary to avoid injustice to the promisee. There must have been consideration given with the promise. The promise must be definite and relied upon. There was a detrimental result from reliance on the promise.
Enforcement of the promise is necessary to avoid injustice to the promisee. The promise must be definite and relied upon. There was a detrimental result from reliance on the promise.
What legal limitations are imposed on parties to assignments and delegations? Choose 3 answers. A contract cannot prevent an assignment of the right to receive funds. Contracts that are for a service that depends on a particular skill or talent may not be delegated. The assignee obtains only the rights that the assignor had under the contract. A valid delegation of duties relieves the delegator from the obligation to perform.
A contract cannot prevent an assignment of the right to receive funds. Contracts that are for a service that depends on a particular skill or talent may not be delegated. The assignee obtains only the rights that the assignor had under the contract.
What is the result of a contract in which both parties are wrong about a material fact of the contract? The contract is voidable. The contract is enforceable by both parties as both parties assumed the risk in making the contract. The contract is void. The contract must be nullified and renegotiated.
The contract is voidable.
What factors may overturn a minor's right to disaffirm a contract? Choose 3 answers. The object of the contract has been destroyed. The minor misrepresented the minor's age while engaging in business as an adult. The contract is for necessaries. The minor ratifies the contract after reaching the age of majority.
The minor misrepresented the minor's age while engaging in business as an adult. The contract is for necessaries. The minor ratifies the contract after reaching the age of majority.
What is the principle that is applied to determine how much compensation a party receives in a quasi-contract settlement? quasi benefit quantum meruit bona fide reliance de facto justification
quantum meruit
What is the term for when a party to a contract performs his duties exactly according to the terms of the contract? strict performance substantial performance perfect performance specific performance
strict performance
Courts may reform a contract: to bring consideration up to fair market value. to reflect the parties' true intentions. to make any illegal provision into a legal one. to correct a lack of consideration.
to reflect the parties' true intentions.
Contests, lotteries, and competitions with prizes are common examples of: implied in law contracts. bilateral contracts. unilateral contracts. void contracts.
unilateral contracts.
What is the time limit for commencing an action for breach of contract under the Uniform Commercial Code (UCC)? 90 days one year four years there is no time limit
four years
What is the standard to which most personal satisfaction contracts must adhere? Choose 2 answers. satisfaction of the performing party (seller) satisfaction of an expert third party satisfaction of the receiving party (buyer) satisfaction of a reasonable person
satisfaction of the receiving party (buyer) and satisfaction of a reasonable person
Jordynne was the manager of Pets-R-Us, a pet store in Southern Valley Mall. Pets-R-Us had a one-year lease, and rent payments were $2,000.00 per month. Five months into the lease, Jordynne found a better site for the pet store. She notified Southern's manager, vacated the mall, and moved her store to its new location. After two months, Southern was able to re-lease the premises to another retail store, but at a reduced rent of $1,800.00 per month. If Southern successfully sues Pets-R-Us, Southern will likely receive: $14,000.00 in damages. nothing, because Southern was successful in obtaining a new tenant for the property. $4,000.00 in damages. $5,000.00 in damages.
$5,000.00 in damages.
What is the difference between a material breach and an immaterial breach? A material breach results in damages to the non-breaching party, while an immaterial breach is minor. A material breach is one that makes the contract commercially impracticable for the non-breaching party. A material breach is one for which remedies are not spelled out in the contract, while remedies for an immaterial breach are specified. A material breach is one that affects more than 50% of the product of the contract.
A material breach results in damages to the non-breaching party, while an immaterial breach is minor.
Quon decides to sell his antique roadster, so he places an ad on Craigslist. He lists the roadster as a 1957 Mercedes Benz 300SL Roadster, describes it as in good working condition, and states that no reasonable price will be refused. Fern responds to the ad and offers to pay $25,000 to Quon for the car, which Quon agrees to. In this scenario, who is the offeror? Quon is the offeror. Quon was the original offeror, but Fern becomes the offeror when she offers $25,000. Neither party is the offeror because there is no agreement to specific terms. Fern is the offeror.
Fern is the offeror.
What rights does a third-party beneficiary to a contract hold in regard to that contract? The third party has all the rights of the primary parties to the contract. If the third party is an incidental beneficiary, the third party has the right to become an intended beneficiary. The third party has no rights because the third party does not have privity of contract. If the third party is an intended beneficiary of the contract, the third party has the right to sue either the promisor or the promisee.
If the third party is an intended beneficiary of the contract, the third party has the right to sue either the promisor or the promisee.
Tanya is in the business of selling rubber mats. Ralph is in the business of selling real estate. Logan is in the business of selling stocks and bonds. Article 2 of the U.C.C. governs the sale of the items sold by: Ralph and Tanya only. Tanya, Ralph, and Logan. Ralph only. Tanya only.
Tanya only.
Manuel contracts to sell a painting that was painted by his deceased grandmother, then has a change of heart and decides to hang it in his own bedroom. He notifies Nadine, the person who had planned to buy it. Can Nadine have the contract enforced? No, it can't be enforced because Manuel canceled the contract before it was executed. Yes, it can be enforced under the equitable remedy of specific performance. Yes, it can be enforced under the theory of quasi-contract because Nadine had relied on Manuel's promise. No, it can't be enforced because this is of a personal nature, and Manuel retains the rights to the painting.
Yes, it can be enforced under the equitable remedy of specific performance.
Restitution is an appropriate remedy when: (Select three) an injunction is necessary. a contract has been breached. when the parties never had a contract. a contract has been rescinded.
a contract has been breached. when the parties never had a contract. a contract has been rescinded.
Mica, a minor, signs a contract to pay Natural Health Club a monthly fee for twenty-fourmonths to use its facilities. Six months later, after reaching the age of majority, Micacontinues to use the club. This act is a disarmance an emanicaption a ratification a restitution
a ratication
McCall and Teresa enter into a contract for the distribution of McCall's produce to localrestaurants for which Teresa agrees to pay. McCall transfers his right to payment under thecontract to Midtown Bank. This transfer is a delegation an assignment a novation prohibited bylaw
an assignment
Century Properties. Inc., and Broadview Capital Corporation enter into a con¬tract for a sale ofland. To be enforceable, the contract must be in writing if the land is valued at $50 $500 $5,000 anyprice
anyprice
Owen offers to sell his motorcycle to Julian for $5,000. After he makes the offer, Owen has second thoughts. Owen can revoke the offer to sell his motorcycle to Julian: at no time, because offers to sell merchandise are irrevocable. even after Julian has accepted but before Julian has delivered the money to Owen. anytime, whether or not Julian has accepted the offer. as long as Julian has not yet accepted the offer.
as long as Julian has not yet accepted the offer.
What is the most common way that duties under a contract are discharged? frustration of purpose by proving undue influence by performance breach
by performance
Which of the following are implied warranties? Choose 3 answers. state-of-the-art fitness for a particular purpose prior dealing or trade usage merchantability
fitness for a particular purpose prior dealing or trade usage merchantability
In January, Victor contracted with Delrita to cater a Cinco de Mayo (May 5th raised to the th power) party for 500 of his closest friends. Neither of them anticipated that their entire state would be under stay-at-home orders on May 5 due to a global pandemic. Under what principle may Victor cancel his contract with Delrita? frustration of purpose commercial impossibility statute of limitations time is of the essence
frustration of purpose
A contract for a purpose that causes the parties to violate a law is: illegal and void. enforceable as a quasi-contract. illegal and dischargeable. illegal and voidable.
illegal and void.
Jon agrees to sell his K9 Sports Equipment store to Lacy. As part of the sale, Jon promises never to open a similar, competing store anywhere. Jon's promise is most likely invalid because it is part of a sale of an ongoing business invalid because of the unreasonable terms of area and time valid because it is part of a sale of an ongoing business valid because Jon and Lacy apparently have the capacity to contract
invalid because of the unreasonable terms of area and time
Kim sends an offer to Leo to cut down and remove a tree for $200. Kim says, "If you say nothing, I will consider you to have accepted my offer." If Leo does not respond, he will be deemed to accept the offer make a counter offer reject the offer none of the choices
none of the choices
Neil represents himself as a contractor in Ohio, but he is not licensed in that state. A contractbetween Pam and Neil by which Neil agrees to build a warehouse for Pam in Ohio is enforceable only if Pam does not object after learning of Neil's status enforceable only if Pam knows that Neil is unlicensed enforceable only if the outcome is successful not enforceable
not enforceable
Which of these types of contracts must be in writing under the requirements of the Statute of Frauds? Choose 3 answers. Promises made in consideration of marriage Contracts for the sales of land Collateral promises to pay the debt of another person Contracts for the sale of goods priced at $1,000 or more
promises made in consideration of marriage contracts for the sales of land collateral promises to pay the debt of another person
Sid induces Ty to enter into a contract for the sale of a warehouse about which Sid fraudulentlymisrepresents a number of material facts. Sid also tells Ty that his commission is 6 percent,but their signed, written contract states "12 percent." The parol evidence rule governs contracts that are induced by fraud contracts that must be in writing to be enforceable the admissibility in court of oral evidence the reformation of oral and written statements into one contract
the admissibility in court of oral evidence
What is the term for a contract agreement in which an offeror promises to pay after the occurrence of a specified act, and the offeree is not required to respond in words? unilateral contract bilateral contract open contract executed contract
unilateral contract
A court adjudicates Huck mentally incompetent and appoints Inez to be his guard ian. Later, without Inez's knowledge, Huck signs a contract to sell his farm to Kyle for its real market value. The contract is enforceable if Huck comprehended the consequences enforceable if Huck knew the market value of the farm enforceable if Huck was the record owner of thefarm void
void
A contract for an illegal purpose is: enforceable as a quasi-contract. dischargeable. voidable. void.
void.
Don, a salesperson for Excel Autos, promises Fern that a certain car will give her a "smoothride." Don oers a test drive, which Fern declines. She buys the car but soon realizes that itssuspension is in poor condition. Fern can rescind the contract on the ground of fraud can rescind the contract on the ground of misrepresentation can rescind the contract on the ground of mistake was not defrauded
was not defrauded
Quinn enters into a series of agreements with Reba involving a sale of a Suite Dreams Motel,including the land, building, furnishings, shares of stock in Suite Dreams Company, and acontract with Trudy to create an ad campaign. Reba suspects that Quinn may bemisrepresenting the facts. The UCC Statute of Frauds governs the sale of any of the property evidenced by a writing The entire deal, including the marketer's services The sale of the furnishings priced at $500 or more the sale of the land and the building
The sale of the furnishings priced at $500 or more
Gavin and Allison are having drinks after work. After several rounds, the topic of Gavin's sports car comes up. Gavin is extremely proud of his sports car and brags about it all the time. To impress Allison, Gavin offers to sell Allison his expensive sports car for $5,000. Allison jumps at the deal, because she knows the car is worth much more than $5,000. They even write the "deal" down on a napkin, and both Gavin and Allison sign the napkin. The next morning, when Allison brings $5,000 to purchase the sports car, Gavin explodes. Gavin tells Allison that he was just kidding and that he would never sell his expensive sports car for such a low price. When Allison tries to enforce the deal: Either Gavin or Allison can rescind the contract based on incapacity or ratify the contract. Gavin can either rescind the contract based on incapacity or ratify the contract. Allison can either rescind the contract based on incapacity or ratify the contract. Neither Gavin nor Allison can rescind the contract because it is in writing.
Gavin can either rescind the contract based on incapacity or ratify the contract.
What is the difference between legal remedies and equitable remedies for breach of contract? Equitable remedies are only available in quasi-contract, while legal remedies are available in all other types of contracts. Legal remedies must be applied by the courts, while equitable remedies can be written into the contract. Equitable remedies are monetary, while legal remedies are non-monetary. Legal remedies are monetary while equitable remedies are non-monetary.
Legal remedies are monetary while equitable remedies are non-monetary.
What factors make an agreement enforceable under the principle of quasi-contract? Choose 2 answers. The enriching party is negligent. The courts determine that an enforceable contract exists. The enriched party knows about the benefit and keeps it. One party is being enriched at the expense of the other.
One party is being enriched at the expense of the other. and The enriched party knows about the benefit and keeps it.
What factors are used to judge if consideration is adequate to ensure a fair bargain? Choose 2 answers. Promises exchanged may not be a preexisting duty. Promises must be made with voluntary consent. Consideration must be a promise to pay money. Items or promises exchanged must be of nearly equal value.
Promises exchanged may not be a preexisting duty. Promises must be made with voluntary consent.
What is the test for whether a contract is governed by the Statute of Frauds because of the one-year rule? The contract must be objectively impossible to perform within one year. The contract must be unlikely to be performable in less than one year. The contract start date must be more than one year from the date of signing. The contract must be able to be performed in less than one year.
The contract must be objectively impossible to perform within one year.
Jayden is restoring a house for Jane when Hurricane Emma hits and washes out the foundations of the house. The cost for restoration has just increased by 400%. Under what principle may Jayden's obligations be excused? commercial impracticality impossibility insurable interest statute of limitations
commercial impracticality
Dot, a real estate agent, tells Elbert, a home seller, that her commission is 12 percent. Elbert agrees that Dot can sell his house but refuses to sign a contract unless the amount of the commission is reduced. After the house is sold, Elbert refuses to pay 12 percent. Dot is most likely to recover nothing on a theory of an express contract on a theory of an implied-in-fact contract on a theory of quasi contract
on a theory of quasi contract
Clay buys an MP3 player for $200 and a pair of stereo speakers for $600 from a Discount Citystore, and downloads $300 worth of digital music from eMusic.com. To be enforceable, thecontract that must be in writing is the purchase of the digital music, the MP3 player, and the speakers the MP3 player and the speakers only the MP3 player only the speakers only
only the speakers only
Under the Uniform Commercial Code (UCC), which term in a written contract for the sale of goods is essential? quantity of items being purchased the date of delivery the place of delivery or assumption of possession the price per item or the total price
quantity of items being purchased
Specific performance is a remedy which is always available in: sales contracts. personal services contracts. contracts which take at least one year to perform. real estate contracts.
real estate contracts.
Rescission of a contract will: force the breaching party to perform their end of the bargain. transform unenforceable terms into enforceable ones. force the breaching party to pay a penalty fee for imperfect performance. return the parties to the position they were in before the contract was formed.
return the parties to the position they were in before the contract was formed.
Landscape Supply agrees to provide Delta Lawn Service eight pallets of sod for the price of $260 per pallet. The agreement contains the following provision: "This Agreement may not be amended or modified except by an instrument in writing signed by the party to be charged with such amendment or modification." Delta decides it now needs 160 pallets of sod, and Landscape is willing to reduce the price to $255 per pallet because of the increased amount. Delta and Landscape can accomplish this change to the contract by: signing an amendment or rewriting the entire contract to include the changed provisions only. crossing out the incorrect language and replacing it by hand with the correct terms or rewriting the entire contract to include the changed provisions. signing an amendment, crossing out the incorrect language and replacing it by hand with the correct terms, or rewriting the entire contract to include the changed provisions. crossing out the incorrect language and replacing it by hand with the correct terms only.
signing an amendment, crossing out the incorrect language and replacing it by hand with the correct terms, or rewriting the entire contract to include the changed provisions.
The default provision of the Uniform Commercial Code (UCC) is that, unless otherwise specified, title to goods being sold passes when: the goods are given to a carrier for shipment. the goods are made available at a designated destination. the goods are physically delivered to the buyer. a document of title is delivered to the buyer.
the goods are physically delivered to the buyer.
lmo, a minor, misrepresents his age to be twenty-one and contracts to buy a car from FineNew Autos. Ordinarily, Elmo can disarm the contract only if he can prove that Fine New Autos did not know his true age only if he can prove that Fine New Autos knew his true age under any circumstances under no circumstances
under any circumstances
When are covenants not to compete in employment contracts considered to be against public policy? Choose 2 answers. when the specified time of restraint is excessive when the geographical restriction is too broad when the business is mostly online when the business is mostly a service business
when the specified time of restraint is excessive and when the geographical restriction is too broad
Ruby, a seventeen-year-old, purchases a car from Smitz Used Auto Sales and agrees to pay for it over a period of twenty-four months. Ruby makes the payments for four months but then decides the car payment is too much for her limited budget. Ruby tells Smitz that she wants to stop making payments and that she wants out of the contract completely. The contract between Ruby and Smitz can be canceled by: Smitz or Ruby, because Ruby is a minor, and Ruby may keep the car. Ruby, because she is a minor, but Ruby must return the car. Ruby, because she is a minor, and Ruby may keep the car. Smitz, because Ruby is a minor, but Smitz must allow Ruby to keep the car.
Ruby, because she is a minor, but Ruby must return the car.
What remedies are available to a buyer when a seller refuses to deliver the goods that are the subject of a contract? Choose 3 answers. The buyer may cancel the contract. The buyer may sue to obtain specific performance if the goods are unique or if damages are an inadequate remedy. The buyer may buy other goods and recover damages from the seller. The buyer may cancel all other contracts with this seller on the grounds of anticipatory breach.
The buyer may cancel the contract. The buyer may sue to obtain specific performance if the goods are unique or if damages are an inadequate remedy. The buyer may buy other goods and recover damages from the seller.
What function does a severability clause serve? Choose 2 answers. It sets the amount of damages to be paid if one party breaches the agreement. It preserves the rest of the contract if one part is unenforceable. It specifies what will happen with a potentially unenforceable part of a contract. It specifies how the contract will be terminated.
It preserves the rest of the contract if one part is unenforceable. It specifies what will happen with a potentially unenforceable part of a contract.
Elvis agrees to provide guitar lessons to Angela's niece for three months for $600. Angela decides her niece really is not interested in guitar lessons, and assigns her rights under the contract to Jose, so Jose can use the lessons for his daughter. When Jose contacts Elvis to set up the first guitar lesson for his daughter: Jose cannot enforce the contract against Elvis because the contract is for personal services. Jose cannot enforce the contract against Elvis, because contracts are not assignable unless they contain a clause making them assignable. Elvis will be obligated to provide guitar lessons to Jose's daughter because this is a valid assignment. Elvis will be obligated to provide guitar lessons to both Jose's daughter and Angela's daughter.
Jose cannot enforce the contract against Elvis because the contract is for personal services.
Best Dollar Store publishes an advertisement in the local newspaper promoting its new baby diapers that are good for the environment. The advertisement states that the diapers are made from entirely biodegradable materials and that each diaper will completely biodegrade within two months and become a natural part of the soil. Leon is very concerned about the environment and has created a compost heap in the pasture behind his home. Leon purchases a package of the diapers for his child, and, as they are soiled, he adds them to the compost heap. Six months later, the diapers have not even begun to degrade. Best Dollar Store has violated: its implied warranty that the diapers will biodegrade within two months. nothing, because the statement about the diapers biodegrading within two months is an opinion. its express warranty that the diapers will biodegrade within two months. nothing, because an advertisement is not a warranty.
its express warranty that the diapers will biodegrade within two months.
American Home Store, headquartered in San Diego, is getting ready for its Fourth of July sale. American orders $1,000 worth of American flags from Canadian Manufacturing, Inc., which is headquartered in Montreal, Canada. American places the order by telephone, and Canadian orally accepts. Two days later, American discovers that it can get the flags cheaper from a manufacturer in Denver. When American attempts to cancel the contract with Canadian, American finds that under the 1980 United Nations Convention on Contracts for the International Sale of Goods (CISG): the contract is enforceable even though it is not in writing. the contract is not enforceable because Canada is not a signatory to the CISG. the CISG does not apply to this contract. the contract is not enforceable because it is not in writing.
the contract is enforceable even though it is not in writing.
Midwest Life Insurance sells a life insurance policy to Thiago. Under the terms of the contract between Thiago and Midwest Life, Thiago will pay $75 per month for the policy, and, upon Thiago's death, Midwest Life will pay $100,000 to Laurelei. Four years later, Thiago dies, and Midwest refuses to pay under the terms of the policy. The party entitled to sue Midwest for its failure to honor the terms of the contract is: Laurelei, because she is a donee beneficiary. Laurelei, because she is a creditor beneficiary. Laurelei, because she is an incidental beneficiary. Thiago's executor, because the only party to the contract with Midwest is Thiago, and Thiago is deceased.
Laurelei, because she is a donee beneficiary.
When ambiguity in a contract's language exists, a court will: (Select all that apply) apply the most common meaning of the term regardless of the parties' intent consider extrinsic evidence of the language interpret the terms against the drafting party only use the language of the contract to figure out its meaning
consider extrinsic evidence of the language and interpret the terms against the drafting party
The weekly Kroger advertisement states that five-pound chubs of ground chuck are available for eighty-nine cents per pound. Arlene sees the advertisement; she realizes that ground chuck has not been priced this low in quite some time, so she hurries to the store to purchase some. Arlene loads seven chubs of ground chuck in her shopping cart. When she goes to the checkout to pay, however, the cashier informs Arlene that the price in the advertisement is a typo and that the correct price is $1.89 per pound. Arlene insists that the store must honor the price listed in the advertisement, because it is an offer that she has just accepted. The cashier calls the store manager for a decision. The store manager will likely explain to Arlene: that the advertisement is a valid offer because its terms are definite. that the advertisement is a valid offer because it is in writing. that the advertisement is a valid offer, and the store must honor the price in the advertisement. that advertisements are not offers, but merely a request for offers.
that advertisements are not offers, but merely a request for offers.
Under the Uniform Commercial Code (UCC), risk of loss passes to the buyer: whenever the contract designates it to pass. never, if the goods are entrusted to a bailee. in a shipment contract, at the time that the shipment is delivered to the buyer. at the same time that title passes to the buyer.
whenever the contract designates it to pass.
What factors influence the remedies available to a seller when the buyer breaches a contract? Choose 3 answers. whether or not the goods are in transit what remedies the seller has already claimed for this breach whether the buyer has rejected or accepted the goods which party has possession of the goods
whether or not the goods are in transit whether the buyer has rejected or accepted the goods which party has possession of the goods
Erika was planning her first cross country bike trip. She wanted a bike that would handle rough terrain easily because part of the trip would be through Kings Canyon National Park. Salisar is a salesman at Bikes by the Bay, a specialty bike store near Erika. Erika explains the details of the strenuous trip she is planning and states that she needs a very sturdy mountain bike that will handle it. Salisar recommends the Crosstrain 2000, a bike his store is pushing that month because both the store and the salesperson get a bonus for each bike sold. Erika purchases the bike and begins her adventure. Twenty miles into her journey, the front axle breaks due to the rough terrain, causing Erika to plunge down a steep hillside and sustain serious injuries. In advising Erika to purchase the Crosstrain 2000 for her trip, Salisar: breached the implied warranty of merchantability. breached the implied warranty of fitness for a particular purpose. breached the express warranty of fitness for a particular purpose. breached the express warranty of merchantability.
breached the implied warranty of fitness for a particular purpose.
Milo is the owner of a sporting goods store that has only been open for three months. The holiday season is coming up, and Milo realizes that he will need extra help. Milo asks his friend Jess to help him out at the store. Milo and Jess agree that Jess will work during the months of November and December. However, because Milo is unsure how much help he will need and how much he will be able to pay, they agree to decide each week on the hours that Jess will work for the following week, and to decide the hourly rate after Jess has worked two weeks before she receives her first paycheck. Just before November 1, Jess takes a job at another store. If Milo tries to sue Jess for breach of contract, the court will probably decide: that the parties had no contract because the terms were not in writing. that the parties had a contract, and Jess breached the contract. that the parties had a contract, but the damages could not be ascertained because the hourly rate and number of hours had not been determined. that the parties had no contract because the terms of the offer were not definite.
that the parties had no contract because the terms of the offer were not definite.
In what ways does Article 2 of the Uniform Commercial Code (UCC) differ from contract rules under the common law? Choose 3 answers. Under the UCC, any manner of showing agreement to contract is accepted, but under the common law acceptance must mirror the offer. Under the UCC, the only required definite term is quantity of product being sold. Other terms such as price and delivery time can be left open. Under the UCC, contracts must be written while the common law does not require writing. Under the UCC, merchants have more flexibility in having open terms.
Under the UCC, any manner of showing agreement to contract is accepted, but under the common law acceptance must mirror the offer. Under the UCC, the only required definite term is quantity of product being sold. Other terms such as price and delivery time can be left open. Under the UCC, merchants have more flexibility in having open terms.
Dakotah is the cheerleading coach for Northfield High School. Dakotah places an order by telephone with Cheerleader Supply Inc. for thirty cheerleader uniforms. Each uniform is to be emblazoned with the Northfield High emblem and a cheerleader's name. The total cost of the uniforms is $900. Two weeks after placing the order, Dakotah realizes she ordered the wrong style of uniform, so she contacts Cheerleader Supply and attempts to cancel the order. Cheerleader Supply at this time is almost through completing the work on the order. Cheerleader Supply: can enforce the contract because the sale of goods does not have to be in writing to be enforceable. can enforce the contract, even though it is not in writing, because it is for specially manufactured goods. cannot enforce the contract, because sales of goods over $500 must be in writing to be enforceable. cannot enforce the contract because this is not a sale of goods, and, therefore, the U.C.C. does not apply.
can enforce the contract, even though it is not in writing, because it is for specially manufactured goods.
What type of contract is created by an agreement that is oral when it is required by the Statute of Frauds to be in writing? voidable fraudulent void quasi
voidable
Larue owns a horse ranch. Larue enters into a contract with Dora for the purchase of thirty saddles for his ranch to be delivered on a specific date. If the price of the saddles is not included in the contract, under the U.C.C.: the court will determine a reasonable price at the time for delivery. there is no valid contract because the contract is incomplete. Dora, the party furnishing the saddles, will supply the price at the time of delivery and must determine that price in good faith. Larue, the party purchasing the saddles, will supply the price at the time of delivery and must determine that price in good faith.
the court will determine a reasonable price at the time for delivery.
Wilson and Everett have a contract under which Everett is to supply to Wilson 5,000 sets of bicycle spokes by September 15. The contract provides that any lawsuit for breach of contract must be brought within three months of the breach. Everett delivers the 5,000 bicycle spokes to Wilson on September 15. Wilson refuses the delivery, however, because half of the spokes are broken. Everett refuses, after repeated requests from Wilson, to replace the shipment. On January 10, Wilson files a lawsuit against Everett for breach of contract. Wilson's lawsuit against Everett for breach of contract: will be dismissed because the contract limits the time in which to bring such a lawsuit to three months. will be dismissed because, under the U.C.C., the statute of limitations for bringing such a lawsuit is within thirty days after the action accrues. will not be dismissed because parties cannot reduce the period for bringing such a lawsuit to less than one year. will not be dismissed because, under the U.C.C., the statute of limitations for bringing such a lawsuit is within four years after the action accrues.
will not be dismissed because parties cannot reduce the period for bringing such a lawsuit to less than one year.
