Business Law Ch 13 + 14
Ezekiel, age 16, purchased an automobile from Regal Used Cars. Ezekiel had a fake driver's license that showed him to be 19 years old. When Ezekiel turned 17, one year later, he returned to Regal and wished to have his money returned to him. All that was left of the car, which had been in an accident, was two rims from the tires. Which of the following statements is correct?
Because Ezekiel cannot return the car, he has lost the right to disaffirm the contract.
Ezekiel, age 16, purchased an automobile from Regal Used Cars. Ezekiel had a fake driver's license that showed him to be 19 years old. When Ezekiel turned 17, one year later, he brought the car back to Regal and wished to have his money returned to him. Which of the following statements is correct?
Ezekiel has the right to return the car and have the amount he paid returned to him.
Which of the following types of contracts can minors disaffirm?
Loans for purchase of a car
In which of the following cases is a contract between A and B binding?
A makes a mistake of material fact, and the mistake is unknown by B.
Jose visited a garage sale and found a baseball card collection which he believed was worth over $1,000. He bought the collection for $50.00 from Wanda. Later Jose discovered the collection was essentially worthless and demands his money back from Wanda. Must Wanda refund Jose's money?
No, the contract is enforceable because Jose was operating under a unilateral mistake and Wanda did not know the value of the cards.
None of the following can be legal consideration except:
Refraining from smoking cigarettes.
Judy, a widow, just sold a piece of property. She will live off that money during her retirement. Judy dotes on her son, Chris, who asks her to invest her money in his restaurant, which is faltering. He tells her that if she does not lend him the money she will never see him again. She is afraid of being alone and agrees to his request, but soon changes her mind and asks for her money back. Chris claims they have formed a binding contract. What is your conclusion?
The contract is voidable based on undue influence.
Which of the following is not a necessary element of promissory estoppel?
The promisor and the promisee must engage in a bargained-for exchange.
Marquez agrees to buy Dale's pickup truck so he can pull his trailer. Both Marquez and Dale believe that the truck is big enough to do the job. After they complete the deal, Marquez finds that the truck is not strong enough to handle the trailer. The contract between Marquez and Dale can be rescinded because of:
a mutual mistake.
The maximum amount of time that a minor has to disaffirm a contract is:
a reasonable period of time after reaching the age of majority.
Promissory estoppel does NOT require
a signed writing explaining the promise.
Examples of illusory promises include:
apparent promises.
A person lacks contractual capacity if:
because of mental impairment, the person does not comprehend that a contract is being made or understand its consequences.
A contract in which one party agrees to purchase goods from another contingent upon the purchaser's ability to locate suitable financing is said to:
contain a conditional promise.
The effect of the making of a partial payment to satisfy an admitted debt is an example of the rule that:
doing what one is already under a legal obligation to do is not consideration.vv
An agreement to pay reasonable additional compensation to a contractor for the performance of a pre-existing contract when the contractor faces extraordinary circumstances caused by unforeseen difficulties is called a:
good-faith adjustment.
Courts will consider the adequacy of the consideration when:
one party claims to have been defrauded.
A landowner's promise to pay a contractor a bonus to complete construction of a building according to the terms of a pre-existing contract between the landowner and the contractor is:
ordinarily not binding on the promisor.
Liz agrees to cook 20 dinners for Brian, and in exchange, Brian will repair all of the plumbing in Liz's house. Liz and Brian's 'deal' has:
sufficient consideration, because Liz has promised something of value.
All of the following statements refer to an element of fraud except:
the defendant desired to obtain a financial benefit.
