BUS 140 | Chapter 8 & 9 | Exam (82/90)
Josephine offers to sell Russell her car for $5,000. Russell rejects her offer but a day later, before Josephine has taken any additional action, communicates an acceptance. Josephine must sell Russell her car for $5,000.
False
Omar offers to sell a motorcycle to Adanne for $10,000. Adanne replies, "I will pay $10,000 if you overhaul the engine." Adanne's reply is within the mirror image rule's requirements.
False
Traditionally, a charitable pledge was not enforceable as a contractual obligation.
False
Alan promises to pay a debt that was discharged in bankruptcy. This promise requires new consideration under state laws in most cases.
False ???
_____ occurs when one party does not say something about certain facts that he or she is under an obligation to reveal.
Passive fraud
Mercedes receives a box of unordered office supplies in the mail. What is her legal obligation?
She may consider it a gift.
Acorn Outfitters advertises a large tent, usually selling for $250, to be sold to the first customer the next morning for $25. Samuel is the first in line but Acorn claims that the tent has already been sold. Acorn has engaged in a bait-and-switch confidence game.
True
An acceptance becomes complete as soon as the offeror hears the words of acceptance spoken by the offeree.
True
An e-contract is as valid as a paper contract.
True
Danny agrees not to go duck hunting if "Save the Ducks" pays him $100. This is forbearance on Danny's part.
True
Laura promises to pay Stuart "a reasonable amount" for repairing her car. Stuart sends Laura a $500 invoice and Laura sends Stuart a $350 check marked "payment in full". There is an accord and satisfaction created if Stuart cashes the check.
True
Leo offers to sell his ranch to Iris for $500,000, but before Iris accepts, Leo dies. Leo's heir has no obligation to honor the contract.
True
Maria's daughter is seriously ill. Desperate, Maria deeds her $25,000 house to a physician for $2,000 of medical treatment. This contract is unconscionable.
True
On June 7, Sagan mails an acceptance of Randi's mailed offer to her. The acceptance is received by Randi on June 10. The acceptance occurred on June 7.
True
The UCC has eliminated the use of the seal in all sale-of-goods contracts.
True
UCITA covers diverse areas such as database contracts and software licensing agreements.
True
Used Car Lot's salesperson Vic offers to sell Will, who is twenty years of age, a car about which Vic intentionally misrepresents several material facts. In reliance on the misrepresentations, Will buys the car. To prove fraud in this transaction, Will would not have to show that
Will is under twenty-one years of age.
Rosa sends an offer to Kellen that requires acceptance to be made by U.S. mail. Kellen accepts in a timely manner but sends the acceptance by FedEx which delivers the acceptance to Rosa two days faster than the U.S. mail would. Has Kellen accepted Rosa's offer?
Yes, since FedEx was faster than the U.S. mail.
Monty quit his $150,000 annual salary job with Computer Associates in Monterey, California, and moved with his family to Fairfield, Connecticut based upon an oral promise by Software Power to provide reimbursement of all moving expenses and at least three years employment at an annual salary of $250,000 per year. One month after moving, and before being reimbursed for moving, Monty's employment with Software Power is terminated due to a reduction in force caused by lower-than-expected product sales. Can Monty successfully sue Software Power?
Yes, under promissory estoppel.
Linda calls a cab in the morning to get to work. The fare that Linda would pay to the cab is:
a consideration.
Delivery of unordered merchandise through the mail:
is an implied acceptance of the offer to sell goods.
Jemmima agrees to babysit Avery's daughter as often as Avery wishes if Avery cleans Jemmima's house every week. This agreement is:
unenforceable under the doctrine of estoppel.
ABC Co. promises to pay Sarah $1,000 for the "excellent work she has done in the past." When ABC does not pay, Sarah may sue and collect the $1,000.
False
Tasha phones Robert and asks if she can borrow his vacuum cleaner to clean her apartment before her parents visit. Robert agrees to this. But when Tasha goes to pick up the vacuum, Robert refuses to give it to her. Which of the following statements is true?
A bargained-for exchange has not occurred, so Robert does not have to loan Tasha the vacuum cleaner.
Anthony offers to sell a computer to Salvador for $900 if Salvador replies by e-mail only, sent no later than noon on Saturday. On Saturday, Salvador is unable to access his e-mail, so he mails an acceptance at the post office before noon. Which of the following is true of the situation?
A legal contract does not exist since the mode of acceptance specified in the offer was not used.
A merchant's firm offer can exceed three months in duration.
False
A partial payment accepted by a creditor will cancel an undisputed amount.
False
A police officer solves a crime assigned to her by her police supervisor. She may collect the reward offered by the crime victim.
False
Highflight Foundation offers $1 million to the makers of the first private spacecraft to fly to the moon and back. Spaceview, Inc. succeeds in producing the first private spacecraft to fly to the moon and back, but Highflight refuses to pay. Is Highflight bound by its offer?
Highflight is bound since Spaceview performed the required action.
Soft Feet, Inc. manufactures shoes. Walk Style, Inc. is a retailer of shoes. Soft Feet offers to sell Walk Style 1,000 pairs of shoes at $5 per pair with delivery to be made by October 31. Walk Style accepts but the acceptance requires delivery to be made by October 20. What is the legal status of Walk Style's October 20 delivery date?
It is effective only if the original offeror accepts.
________________ is the first of the four elements of a valid contract.
Mutual assent
Matrix Corporation, manufacturers of computers, agrees in advance to purchase from Chipmaster, Inc., all the computer chips that Matrix wishes for the next year at current average market prices. Matrix later does not purchase any computer chips that year. Can Chipmaster enforce the agreement made with it?
No, the agreement to purchase is illusory.
Booksellers, Inc. (a merchant) agrees in writing to hold an offer open to Smallville City Library, the selling of 20,000 books at $5 each. Booksellers specifically mentions that Smallville has 60 days to accept this offer. However, before the 60 days have passed, Booksellers sells all the books to Universal Library for $7 each. Which of the following is true of this situation?
Smallville can file a legal claim since Booksellers have revoked a firm offer.
While the Washington family was gone for the weekend, their home was broken into and robbed. The professional boxer who lived next door saw the thief, apprehended him, and forced him to return the stolen possessions. When the Washingtons returned, Mr. Washington told the boxer that he would give him $5,000 for his efforts. The next morning, Mr. Washington decided to give him only $2,000. Which of the following is true of this case?
The boxer's act of bravery would be a past consideration.
Hazel offers to sell her home to Mandisa for "about $100,000 plus closing costs." Mandisa accepts Hazel's offer but a dispute arises concerning the precise dollar amount of the purchase price. How will a court resolve this dispute?
The court will declare the purchase price and terms too indefinite to create a binding contract.
A "click-on" acceptance is a valid method of accepting an e-contract.
True
A lease option permits a party to lease real property while at the same time holding an option to purchase that property.
True
An agreement in which one party consents to sell to a second party all of the goods that party makes in a given period of time is ____.
an output contract
A woman who can neither speak nor read English purchases a stereo system from a local electronics store. Although the stereo is advertised for $450, the store owners charge the woman $10,000. A court would most likely consider this transaction:
an unconscionable contract.
According to the E-Sign Act:
e-contracts that are entered into over the Internet will be valid, provided that the parties to the e-contract have agreed that electronic signatures will be used.
While looking for apartments, Brittany finds one that she likes. The building manager agrees to an option contract in which he will hold the apartment for Brittany for four days in return for $100. At the end of the fourth day, Brittany finds another apartment that she likes better and signs a lease with its building manager. Because Brittany's contract with the original building manager is an option contract, the building manager:
is under legal obligation to return Brittany's $100 payment.
Brett offers to dust and vacuum all the rooms in Arlene's apartment for $45. Arlene says she will accept his offer if he lowers his fee to $40. Arlene has:
made a counteroffer.
Silas, upset because his new car broke down, yells that he would "sell this piece of junk for $100." Ida overhears Silas and says, "I accept and will pay you $100." Silas
need not sell his car for $100 since he was clearly angry.
Langley asks Sam to sign an agreement that Sam will pay Langley $4,500 for resurfacing his driveway. When Sam declines, Langley threatens that he will kidnap Sam's daughter unless he agrees. Sam signs the contract. Langley's actions constitute
physical duress
An option contract:
removes the possibility of revocation through death or insanity of the offeror.