business law exam 2 part 2

On Monday, Mick puts an offer in the mail to Sheri to sell his guitar for $50. Monday night when jamming with his buddies, he decides he will really miss his old guitar and has second thoughts about selling it. Tuesday morning he puts a revocation in the mail informing Sheri he has changed his mind and the guitar is no longer for sale. The revocation is effective on Tuesday morning. True False

False

Ron, a minor, goes to the hospital for treatment of the flu. On the new-patient form Ron signs, he agrees to pay for any care or treatment he receives. When billed for the treatment Ron must pay for the value of the benefit he received, because medical care is a necessary. Ron must pay for the benefit he received because the contract is fully executory Ron must pay for the benefit he received because he ratified the contract. Ron is a minor, therefore he can disaffirm the contract.

Ron must pay for the value of the benefit he received, because medical care is a necessary.

E-mation, Inc. hires Marvin to steal trade secrets from one of its competitors for $10,000. Marvin demands half of the money up front. E-mation pays Marvin $5000 but Marvin decides not to pursue theft of the trade secrets. E-mation sues Marvin for the return of the $5000. What will the court do with this contract? The court will order Marvin to return the $5000. The court will order Marvin to return the $5000 with interest. The court will order Marvin to obtain the trade secrets. The court will not do anything to help E-mation get its money back.

The court will not do anything to help E-mation get its money back.

Dick offers to sell Jane his 1955 Thunderbird convertible. Before Jane can accept the offer, lightning strikes the car and it is totally destroyed. Which of the following is true? Jane can still accept the offer and John must find a 1955 Thunderbird to sell. Jane can still accept the offer. She will be entitled to the insurance proceeds. Dick can still revoke his offer so long as he does so before Jane accepts. The offer is terminated by law.

The offer is terminated by law.

Floyd offers to sell his 1967 Ford Mustang convertible to Tim. Before they conclude their negotiations, Floyd dies. Which of the following is true? Floyd's heirs must continue to negotiate the offer and sell the car, if a reasonable price can be determined. Floyd's heirs must sell the car to Tim. The offer terminates automatically upon Floyd's death. There is a contract if Tim accepts before learning of Floyd's death.

The offer terminates automatically upon Floyd's death.

Pastor Tom was employed by the First Church for 40 years. On Pastor Tom's retirement there was no adequate pension plan. Two months after the retirement, a wealthy parishioner, in consideration for Pastor Tom's 40 years of faithful service and for being such a "sweet" man, promised to pay him $500 per month for the rest of his life. This promise probably is not enforceable. True False

True

Claudia sells her highly successful salon to Carl. In the sales contract, Claudia never to open a hair salon the state. Which of the following best describes this contract clause: Void as illegal primary restraint Valid as a reasonable restraint on trade. Unenforceable restraint against public policy. Binding as fair protection.

Unenforceable restraint against public policy.

Question 37 0 / 1 point Zero, Inc. agreed to build Millie a storage building for $8,000. After beginning the project, Zero realized that it could not complete the job and make a profit. Zero demanded $9,500 to complete the building. Millie agreed to pay the $9,500. When the project was complete, Millie tendered $8,000 to Zero for the job. If Zero sues Millie for the remaining $1,500, Zero will win because there was consideration for the additional $1,500. Zero will win because Millie had a pre-existing duty to pay any additional amounts. Zero will lose because there was no legal consideration to support the additional $1,500. Zero will lose because the UCC does not require consideration to modify an existing contract.

Zero will lose because there was no legal consideration to support the additional $1,500.

Which of the following is NOT required to establish promissory estoppel? a promise made by the defendant a promise made by the plaintiff in response to the defendant's promise reliance on the defendant's promise Enforcing the promise is the only way to avoid injustice

a promise made by the plaintiff in response to the defendant's promise

Which of the following is NOT required to establish promissory estoppel? a promise made by the defendant a promise made by the plaintiff in response to the defendant's promise reliance on the defendant's promise Enforcing the promise is the only way to avoid injustice.

a promise made by the plaintiff in response to the defendant's promise

When a minor avoids a contract to purchase a car: the parents of the minor are liable for the purchase price. a relative who cosigned the contract is liable for the purchase price. a friend to whom the minor loaned the car is liable for the purchase price. the automobile insurance company is liable for the purchase price.

a relative who cosigned the contract is liable for the purchase price.

Express but not implied contracts are binding agreements the courts will enforce. True False

false

I promise to pay you $100 if you will promise to fix my car next month." This is an offer for a unilateral contract. True False

false

If no time limit is stated, an offer will not terminate until both parties agree. True false

false

If Rudy offers Oscar $200 for his laptop valued at $600 and Oscar agrees, a court will probably set aside the agreement as being unfair. set aside the agreement because the consideration is inadequate. not set aside the agreement based on the adequacy of the consideration. not set aside the agreement because of the UCC.

not set aside the agreement based on the adequacy of the consideration.

An oral contract can be enforced when it relates to: the sale of an interest in land for $400. the purchase of a television set for $200. managing a factory for five years. a promise to answer for the debt of another.

the purchase of a television set for $200.

Agreeing not to open a competing business could be consideration. True False

true

An implied in fact contract is as enforceable as an express contract. true false

true

Jill contracts to purchase Kevin's automobile under the belief that she can sell it at a profit to Linda, but after Jill has bought the car, she finds out that Linda isn't interested in buying it. Jill cannot avoid the contract. Jill can rescind the agreement. Jill could rescind the agreement if she was mistaken in her estimate of the value of the auto. Jill can sue Linda for detrimental reliance.

Jill cannot avoid the contract.

Jack mails an offer to Joan that states, "I offer to sell you my car for $2000. If I don't hear from you in 10 days, I will assume you are willing to buy the car fo the stated price." Jack hears nothing by the deadline and assumes he has a deal. What is the result? Jack has a deal. His offer was intended and contains definite terms. Jack has a deal. Joan should have responded saying she is not interested in the car if she didn't want to be bound to the offer. Joan is not bound. Generally an offeree must say or do something to accept an offer. Joan is not bound. Ten days is not a reasonable amount of time to consider the offer and accept by mail.

Joan is not bound. Generally an offeree must say or do something to accept an offer.

In January, Alex promised to pay Y-K Inc. $5,000 if it would refrain from filing suit against him on a breach of contract action. Y-K agreed and accepted a $5,000 check from Alex. Which of the following statements is correct? Y-K's promise to refrain from suing Alex was not supported by legal consideration. Y-K's promise to refrain from suing Alex was supported by legal consideration and is enforceable. This is an accord and satisfaction, and Y-K cannot sue. The courts would apply promissory estoppel in this situation.

Y-K's promise to refrain from suing Alex was supported by legal consideration and is enforceable.