ACCT 315 Exam 3 Previous Questions

Max is liable

A contract between Max and Nick provides for an "assignment of all rights." Max "assigns the contract" to Olin. Because a court will normally construe this wording as implying both an assignment of rights and a delegation of duties, if Olin fails to perform

Name the parties

According to most states' laws, to be enforceable as a contract under the Statute of Frauds, a writing must

No federal or state law

After a union election campaign among the employees of Frozen Food Company, the Food Workers Union does not obtain a majority vote in the election. This most likely violates

Mechanics

Aircraft corporation employs mechanics, programmers, outside salespersons, and professionals, including pilots. Employees exempt from the Fair Labor Standards Act's overtime provisions include all of the following except

Not U.S. citizens

As part of a deal for power-generating equipment, Solar Wind Company and Thermal Gen Ltd. enter into a written contract that includes a clause providing for the arbitration of any dispute in the United States. Under the New York Convention, if a dispute arises, a court will compel arbitration if both parties are

Employees whose skills, duties, and pay are similar

Baristas Union petitions the National Labor Relations Board for an election on organizing a union among the employees of Coffee Café Company. For an election to be held, the union must represent

Consistent

Blake and Carla sign a contract for the sale of Blake's Bakery to Carla. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement. In a dispute between the parties, with respect to the terms, a court is most likely to admit evidence that is

Breached

Bottling Company enters into a contract with Chug's Brewery to provide certain bottling and delivery services. Before Bottling starts to work, the market prices rises for the fuel for glass ovens. Bottling tells Chug's that due to the added cost it will not perform their deal. Bottling's contractual obligation to Chug's is

Or orally agreed-on condition

Builders Corporation files a suit against Concrete Company to enforce a written contract. If the court finds that the parties intended the contract to be the final statement of their agreement, parol evidence can be admitted proving

The labor management reporting and disclosure act

Ceramic Workers Union represents the workers of Delta Tile LLC. The union fails to hold election for union officers. This most likely violates

Damien is in breach

City Delivery, Inc., enters into a contract to deliver furniture to Damien's house with payment due on July 4th, Damien's bank is closed, and for this reason, he claims that he cannot pay on time. In this situation

Nothing

City Nurses College loses its accreditation. As a consequence, City students can still obtain a state nurse' s license, but their earning capacity is impaired. In a suit against the school for breach, the students are most likely to recover

An agency relationship

Consolidated Corporation, a U.S. firm, wishes to participate, but limit its involvement, in Middle Eastern markets. Consolidated empowers Doha Ltd., an Egyptian firm, to enter into contracts in certain countries on behalf of Consolidated. This is

$10,000

Cow's Milk LLC needs a certain part for it pasteurizing equipment to continue its operations and orders one for $3,000 from Dairy Supplies Inc. Cow's Milk tells Dairy Supplies that is must receive the part by Tuesday, or it will lose $10,000. Dairy Supplies ships the part late. Cow's milk can recover

Dicks or Equipment

Dick's Burgers enters into an oral contract with Equipment Warehouse for the purchase of a single-spindle mixer for $300. Assuming the terms can be proved, the contract is enforceable by

Award damages to Dino

Dino hires Eve to perform at Dino's Club, but Eve later breaches the agreement to accept a higher-payer job at Five Star Arena. Dino files a suit against Eve. The court will most likely

Discharged

Don enters into a contract to buy Ezra's office building for a certain price subject to an appraiser's evaluation that the structure's condition is not substandard. If the appraiser deems the condition to be substandard, the parties' obligations will be

Enforce it

Dwelling Inc., enters into a contract with Estates Management to manage and maintain Dwellings' apartment complex. Their contract contains a clause that limits Estate's liability except in cases of gross negligence or willful misconduct. With respect to this clause, a court would most likely

Work in hazardous occupation

Elin is thirteen years old. Under the Fair Labor Standards Act, she cannot

States that follow the English rule

Elin owes Floyd $10,000. Floyd assigns the claim to Gary. Gary does not notify Erin of the assignment. Later, Floyd assigns the same claim to Holly. Holly immediately notifies Erin of the assignment. Holly has priority to payment in

The difference between the contract and market prices of the land

Faiz enters into a contract to buy 350 acres from Grain Farm to cultivate hops and open a brewery. Fair fails to make the purchase. Grain Farm's remedy is most likely

An assignment

Farah makes and sells camping gear. Farah and Gobi enter into a contract for delivery of the gear to Gobi's Outfitters retail locations for an invoiced price. Farah transfers the right to payment under the contract to Haulers Distribution Inc., This transfer is

None of the choices

Finance Corporation, a U.S. firm, files a suit against Ghana in a U.S. court. Under the Foreign Sovereign Immunities Act, Ghana is immune from the jurisdiction of the court if Ghana has

The delegate

For a price, Rose agrees to unload the catch from fishing boats that dock at Seaford Shipping. Rose delegates this duty to Tina, who then owes performance of the duty to the warehouse. Tina is

Fred

Fred agrees to assume a debt owed by Guitars Inc. to Home Bank. The agreement is not in writing. To be enforceable under the "main purpose" rule, the promise must be for the benefit of

A novation

Gliders, LLC, and Hang Time, Inc., are parties to a contract. They subsequently agree that in the Wind Inc., should take Gliders' place and assume all of its rights and duties under the contract. This is

Either Guardian or Hedge

Guardian Security Inc. and Hedge Fund Corporation enter into an oral contract under which Guardian agrees to provide services for Hedge's offices for as long as needed. This contract may be enforceable by

Exemplary of the doctrine

Health Clinic Inc., has no written employment manual or oral discharge policy, avoids abusive treatment of its staff, and acts to prevent illegal and unsafe activities. The clinic freely hires and fires its employees, who are similarly free to quit at any time. With respect to the employment-at-will doctrine, this is

Concurrent condition

Iggy and Jon sign a contract by which Iggy agrees to deliver and install a gas fireplace on October 15th in exchange for Jon's promise to pay the $500 price within ten days of the install date. The delivery and installation of the fireplace and the payment of the price are examples of

Kerry had against Ira

Ira owes Jessie $1,000. Kerry owes Ira $1,000. Ira unconditionally assigns to Jessie the right to Kerry's payment. Jessie's right to the $1,000 is subject to the defense that

Enforce the payment in court

Jan is obligated under a contract to pay Katie $500. Katie assigns the right to receive the funds to Loren. If Han does not pay the debt, the obligee can

Obtain the exact bargain promised in the contract

Jill enters into a contract to buy a certain building from Kim. At the closing, Kim refuses to transfer title. In a suit for breach, Jill should seek specific performance to

Money

Jim and Kelly agree that Jim will fix the refrigeration unit in Kelly's Lunch Cafe in exchange for her payment of debt that Jim owes to Money Corporation. Under this contract, the intended beneficiary is

Discharges the original contract

Juan and Isido enter into a contract to buy, restore, and reopen the Coastal Park Carousel. Before either party begins to perform, they make a new agreement to rescind their deal. This

Needs not pay any of the contract price National Credit

Laminate LLC agrees to buy factory equipment from Metalwork Company on the seller's misrepresentation that it meets certain specifications. Metalwork assigns the right to payment on the deal to National Credit Corporation. When the buyer discovers the fraud, the firm returns the equipment and cancels their contract. Laminate

Jay or Leo

Leo contract to install watering troughs in Ken's dairy barn. When Leo becomes seriously ill, he contract with Jay to do the work. Jay is unreliable and never shows up. Ken hires Ike to do the installation. To recover for any loss on the deal, Ken can sue

Extinguished

Music Masters Inc., enters into a contract to pay Nagi for a dozen original songs. Nagi transfers the right to payment under the contract to Omni Artists. After the transfer, Nagi's contract right to the payment is

Discharged

New Builders, Inc., enter into contract with O'Reilly to refurbish a garage on his property as an auto repair shop. O'Reilly's neighbor Pete challenges the project as a violation of the local zoning laws. A court orders a halt to the project. O'Reilly's contract with New Builders is

A distribution

Opti-Med Inc., a U.S. firm, signs a contract with Pharma Ltd., a Canadian firm, to give Pharma the right to sell Opti-Med's products in Canada. This is

Either Oscar or Poppy's

Oscar orally agrees with Poppy's Pizza to provide delivery service to its customers for nine month. This contract is enforceable by

$1,500, plus any additional expense to obtain the over

Quill contracts to buy an over from Restaurant Appliances Inc., for $5,000, but the seller fails to deliver. Quill buys a similar oven from another dealer for $6,500. Quill's measure of damages is

Does not have to pay for the eggs because Range Free did not perform

Range Free Farms enters into a contract to sell Sara's Market a truckload of eggs. Range Free fails to deliver. Sara's Market

An accord and satisfaction

Rene contracts with Scot to pay him $5,000 for repairs to Rene's Lake cabin. After Scot performs, Rene tells him that 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

The highest minimum wage

Retail company is located in Seattle, Washington, where the city an the state have minimum wage laws. Retail pays its starting employees the legal minimum rate, which, among the governing laws, is

Rocco

Rocco orally agrees to sell his Spring Beverage Company to Thirsty Inc. Rocco notes the terms on a sheet of Spring stationary and signs it. This agreement is most likely enforceable against

Exclude the evidence

Rye agrees to sell his Taco Delight restaurant to Sati. The parties intend their written contract to be a final statement of the terms of their agreement. Later, the parties dispute some on the provisions. In litigation, Sati offers evidence to contradict the written terms. Most likely, the court will

$2,000

Sabo contracts to work exclusively for Thermal Company during July for $5,000. On June 30, Thermal cancels the contract. Sabo finds a similar job for the month of July but earns only $3,000. Sabo files a suit against Thermal. As compensatory damages, Saba can recover

With prompt notice

Shuster's lease of retail premises from Thurgood requires Shuster to pay certain fees, subject to the landlord's proof of the correct amount. Thurgood overcharges Shuster for the fees, without explanation. Most likely, the tenant can rescind the lease

Either Solar or Trey

Solar Power LLC and Trey enter into an oral contract under which Solar agrees to provide Trey with lifetime employment. This contract may be enforceable by

Is subject to a determination of fault

Star Flights Inc., Launches exploratory and commercial space lights from its base in the United States. In the event of a collision with other space objects, under the Outer Space Treaty, liability for injury or damage

Pay employees higher wages for working in more dangerous areas

Steel Mill Inc., employs five hundred workers. For the Occupational Safety and Health Administration, Steel must do all of the following except

If the parties are deadlocked

Technicians Union represents the workers of United Engineering Inc., The union and the employer bargain in good faith but are unable to reach an agreement because of the genuine differences of opinion. The union may call a strike

A tariff

The United States taxes each barrel of imported oil at a flat rate. This is

Rescind the contract

To induce the sale of an auto parts business, Carmel fraudulently represents the worth of the inventory to Drew, who offers an inflated price. They enter into a contract to close the deal. On closer inspection, the buyer learns the true value of the goods. Drew can

Work in hazardous occupation

Tom is seventeen years old. Under the Fair Labor Standards Act, he cannot

Restrictions on imports

Trade barriers are

Encouraged to invest in exporting trading companies

Under the Export Trading Company Act, U.S. banks are

No single nation

Under the Outer Space Treaty, a moon, a planet, an asteroid, or any other celestial body is subject to the appropriation of

The act of state doctrine

Venezuela seizes the assets of World Oil, Inc., a U.S. firm. World Oil's recovery from Venezuela in a U.S. court may be prevented by