301 Business Law - Jeff Adams/ Evans

One element necessary for an effective offer is the terms must be reasonably priced

False

The Uniform Commercial Code requires parties to form sales and lease contracts with the same formality used informing other types of contracts

False

In a sales contract, the passage of risk of loss from a seller to a buyer gives the buyer the right to insure the goods

True

Generally, when an acceptance to a sales contract between merchants includes terms additional to those in the offer, the terms automatically become part of the deal

True

Quasi contracts are imposed on parties in the interest of fairness and justice

True

Rescission is the unmaking of a contract so as to return the parties to the positions they occupied before the contract was made

True

A covenant not to compete imposed, as part of a sale of an ongoing business will be enforced even if the restrictions are unreasonable

False

The failure, without legal excuse, of a promisor to perform the obligations of a contract

breach of contract

A contract that has been fully performed by both parties

executed contract

Consequential damages are designed to punish the wrongdoer and set an example to deter similar conduct in thefuture

False

Expenses incurred because of a breach of contract to obtain performance from another source are not recoverable in a suit for breach

False

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Bagel Café in exchange for her payment of a debt that Lyle owes to New Credit Corporation. Under this contract, the intendedbeneficiary is

New Credit

An agreement to transfer the right to possess and use goods for a commercial purpose for a period of time in exchange for payment is a lease

True

Brooke is an art collector and hires a broker to buy and sell artworks on her behalf. Under the UCC, in thosetransactions, Brooke has the status of

a merchant

Clean Clinic offers to buy from Dental Supplies Company a specific quantity of a certain type of floss for a stated price. Dental can accept the offer by

a promise to ship or a prompt shipment of the goods

Outdoor Outfitters Store contracts to buy fifty tents from Pitched Camp, Inc. Unless the contract states otherwise, this is assumed to be

a shipment contract

Bert's Bagels, Inc., and other bakeries refer to a "baker's dozen" as consisting of a collection of thirteen baked goods. According to the UCC, this is

a usage of trade

The act of voluntarily agreeing, through words or conduct, to the terms of an offer, thereby creating a contract

acceptance

Rene contracts with Scott to pay him $5,000 for repairs to Rene's lake cabin. After Scott performs, Rene tells himthat she cannot pay him in full immediately. They sign an agreement in which Rene promises to pay $2,500 now, instead of $5,000 later. This is

an accord and satisfaction

Marketing, Inc., offers to create a campaign to increase N'Ice Cream, Inc.'s Cream, Inc.'s online business. N'Ice agrees to pay for the service. These parties have

an express contract

The U.S. Department of Justice needs to have construction work done on a federal courthouse. The agency askscontractors to submit bids. This is

an invitation to submit offers, not an offer itself

Life Products, Inc., enters into a contract to sell medical supplies to Med Clinic, which later sells some of the items to Nina, a patient and consumer. Article 2 of the UCC applies to

both transactions

Larry advertises a reward for the return of his lost dog. Miguel does not learn of the reward but finds and returns thedog. With respect to Miguel, Larry's ad is not an offer because it lacks the element of

communication

State University provides housing on campus, and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be a student at State. This requirement is

condition

A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for any losses or damage to the goods until they are delivered to the carrier

destination contract

Anton tells Brooke, who has no knowledge of Shakespearean comedy, that he will tutor her in the subject for $50. Asan offer, this is

effective

Safety Insurance Agency contracts with Town Motors to buy six cars. The contract lists the cars by their VINs (vehicle identification numbers). Under the UCC, identification

has taken place with the VIN numbers.

Barry purchases some goods online from Acme Corp. He had clicked the accept terms box on the website whenpurchasing, which included a dispute resolution agreement that all disputes be sent to arbitration. He is unhappy with the product and injured by it. He brings a lawsuit in court against Acme Corp, and Acme files to dismiss based on the arbitration agreement. Barry will:

have to pursue arbitration for his dispute

Dale's Uncle Ed tells Dale, "If I feel you deserve it at the time, I will give you a new car when you graduate from college."

illusory

Boyd, a salesman for City Motors, Inc., e-mails Dawn on May 1 that the dealer will sell her a 2018 Ford pick-up truck for $25,000 between May 1 and July 1. Boyd's offer to Dawn is

irrevocable for the stated period

Lynn orally contracts to sell five acres of timber to Mountain Mill LLC. The buyer harvests the trees, but fails to remitthe full price. Because of the lack of a written contract, Lynn could most likely recover on a theory of

quasi contract

A contract for a sale of land from Beachfront Properties, Inc., to City Development Corporation contains an erroneous legal description. The appropriate remedy for these parties is most likely

reformation

Fabien offers to sell his Graphic Signs LLC business to Hanna for $100,000. Hanna replies, "The price is too high. I will pay $75,000." Hanna has

rejected the offer and made a counteroffer

Shep offers to make digital copies of Reliable Company's business conference videotapes, CDs, DVDs, and othermedia for $500. Under the mailbox rule, Reliable's acceptance by e-mail will be considered effective when

sent from Reliable's email

An unconditional offer to perform an obligation by a person who is ready, willing, and able to do so

tender

Miko owns a lake house that she rents to vacationers. Miko gives her son Ninh a trip to Omaha on his graduationfrom community college. Miko sells her car to her neighbor Pye for $4,500. UCC Article 2 covers

the sale of Eye

Under a contract with River Valley Farm, Sancho begins grading a terraced hillside for planting. Halfway through theproject, Sancho asks for $5,000 over the contract price, claiming an increase in the "cost of doing business." The farm agrees, but later refuses to pay. The agreement to pay more is

unenforceable, because Sancho's performance was a preexisting duty

Red offers to pay Sara to deliver certain documents within thirty minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Red and Sara will have a

unilateral contract

A contract that results when the elements necessary for contract formation (agreement, consideration, capacity, and legality) are present

valid contract

Steel Mill, Inc., makes an offer to Tom to enter into a contract to work as a mechanical engineer for a certain salaryfor one-year subject to a five-year renewal based on his performance. Tom accepts the offer. This is a valid contract because it includes

an offer and an acceptance

Sports Bar and Tasty Bakery are adjacent businesses with adjoining parking lots. Sports Bar offers Tasty a discount on purchases if the bakery will not tow the cars of Sports Bar's patrons who park in the bakery's lot. The discount is legally sufficient consideration

because it is a promise of something of value

Don enters into a contract to buy Ezra's office building for a certain price subject to an appraiser's evaluation of thestructure's condition. If the appraiser deems the condition to be substandard, the parties' obligations will be

discharged

A paper exchanged in the regular course of business that evidences the right to possession of goods (for example, a bill of lading or a warehouse receipt).

document of title

Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlene's 100-acre tract for whichshe agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. With respect to the duties under the original contract, this transfer

does not relieve Bill of the potential obligation to perform

An amount, stipulated in a contract, that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach

liquidated damages

Under the UCC, a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods being purchased or sold

merchant

A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.

mirror image rule

Bob's Neighborhood Grocery agrees to buy all of Patricia's green beans that she produces this year. This is an example of a/an

output contract

The offeror's act of withdrawing an offer is referred to as:

revocation

Mining Corporation purchases the business assets of Open Pit, Inc., including its equipment and supplies, for an agreed-to price, payable in installments. Under the UCC, this transaction is a

sale