BLAW Exam 3 Quiz
Pastries Inc. sends Rollo its catalogue showcasing a variety of baked goods for certain prices. This is
an ad, not an offer
Marketing Inc. offers to create a campaign to increase N'Ice Cream Inc.'s online business. N'Ice agrees to pay for the service. These parties have
an express contract
A contract that calls for an action contrary to public policy is illegal but not unenforceable.
False
A contract that only one of the parties can enforce in a court is not valid.
False
A landlord can avoid liability for injuries that occur on rental property by including an exculpatory clause in the lease.
False
A promise made in return for an act or event that has already taken place is fully enforceable.
False
A promise to do something that one has no prior legal duty to do is not legally sufficient consideration.
False
A promise to refrain from competing in business with another is considered to be unconscionable.
False
A seller who places goods at the disposal of a buyer has tendered delivery but cannot yet demand payment.
False
A statute of limitations limits the amount of damages that the nonbreaching party can obtain for a breach.
False
An offer made in undue excitement is an effective offer.
False
Any breach of contract effectively excuses both parties from performing.
False
Any contract involving consumer goods must be in writing to be enforceable.
False
Because so much e-commerce involves parties in the United States, the preeminence of U.S. law in this area is not likely to be challenged in the future.
False
Because value is variable, mistakes of value affect the enforceability of contracts.
False
Contracts entered into by mentally incompetent persons are not valid under any circumstances.
False
If a contractor's bid was significantly low because he or she made a mistake in adding up the total estimated costs, any contract resulting from the bid is still normally enforceable.
False
If a party is already bound by contract to perform a certain duty, that duty can serve as consideration for a second contract.
False
If one party's performance on a contract is substantial, the other party's duty to perform need only comport with the level of the rendered performance.
False
Most contracts need to be performed to the personal satisfaction of each contracting party.
False
On a delegation of contract duties, the delegator is absolved from any liability for performance under the contract.
False
One of the requirements of a valid contract is an adequate market for the deal's goods or services.
False
Only a mistake of value or quality makes a contract voidable.
False
Only contracts that have been fully executed can be rescinded by agreement.
False
Performance becomes commercially impracticable when a foreseeable, added burden of performing increases the cost slightly.
False
Posting an item for sale on an online auction site is an offer to form a contract.
False
Shrink-wrap terms are enforceable even if a buyer does not discover them until after the parties have entered into a contract.
False
The distinction between "seller's talk" and facts allows sellers to tout their products and services, thereby creating potential liability for fraud.
False
The essential feature of undue influence is that a party being taken advantage of suffers from a mental or physical impairment.
False
The measure of compensatory damages does not vary by type of contract.
False
The offeror can revoke the offer only be expressing repudiating it.
False
The offeror's intention to become bound by the offer must be subjectively clear.
False
The primary purpose of the Uniform Electronic Transactions Act is to create new rules for electronic contracts.
False
To apply the doctrine of promissory estoppel in a given situation, there must exist no clear or definite promise.
False
To provide a point at which contracting parties can know that their duties have ended, the duty to perform a contract is always absolute.
False
The lack of a license in certain occupations bars the enforcement of work-related contracts.
True
The party on whom duress is exerted can choose to avoid the entire transaction.
True
Under a construction contract that is conditioned on the builder meeting certain specifications, complete performance is required to avoid material breach.
True
When a lapse of time and a change in circumstances make it substantially more burdensome for the parties to perform, a contract is discharged.
True
A bank's sale of its right to receive payment on a loan to a third party is a transfer but not an assignment.
False
A contract provision that deprives one party of the benefits of the agreement may seem unfair but a court is not likely to consider it unconscionable.
False
Raj agrees to work as a freight broker for Shipping Inc. In determining whether a contract has been formed, an element of prime importance is the parties'
Intent
Restoration Inc. enters into a contract to refurbish an old bus depot for Quality Diners LLC. If Restoration completes most of the work promised in the contract, its performance will be
Subs
A novation requires the contracting parties to make restitution of whatever they received under the contract.
True
Anticipatory repudiation of a contract is treated as a present, material breach in order to give the non-breaching party an opportunity to seek a similar deal elsewhere.
True
Because of the potential for punitive damages, plaintiffs often include a claim for fraudulent misrepresentation in their contract disputes.
True
By supplying procedures for enforcing private agreements, contract law provides an essential condition for the existence of a market economy.
True
Consideration must provide the basis for the bargain struck between contracting parties.
True
Contracting parties are bound only by terms that can be objectively inferred from promises made.
True
In effect, a counteroffer converts the original offeror into an offeree with the power of acceptance.
True
Misrepresentation of law does not ordinarily entitle a party to avoid a contract.
True
Once performance has been tendered, the party making the tender has done everything possible to carry out the terms of the contract.
True
Sometimes, when a buyer breaches a contract for a sale of goods and the seller has not yet produced the goods, the seller can recover the lost profits.
True
Red offers to pay Sari to deliver certain documents within thirty minutes. Sari can accept the offer only by completing the task within the deadline. If she does, Red and Sari will have
a unilateral contract
Hometown Bank posts on its website an offer of a reward for information leading to the apprehension of a certain criminal. This offer could normally be terminated by
any of the choices
Shep offers to make digital copies of Reliable Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Reliable's acceptance by e-mail will be considered effective when
sent
Ocean Inc., a seafood distributor, agrees to buy from Pai, a commercial fisher, any "overstock" of fish that he catches in excess of the legal limit. This agreement is most likely
void