Chapter 11 Quiz

If both parties exchange promises, the contract is: a. bilateral. b. void. c. implied. d. executed.

a. Bilateral

Bill enters into a contract with Harry. The terms are that Bill will build an addition to Harry's home and repave Harry's driveway in exchange for Bill's payment to Harry of several thousand dollars once all of the projects have been completed. If the driveway has not yet been completed, but the addition has been completed, which term describes the type of contract in existence? a. Executory b. Implied-in-fact c. Quasi-contract d. Voidable

a. Executory

Bill surfs the net and finds a website for some awesome bikes. He notices that the bikes cost less online than they do in the local bike store in his home town. Bill orders the bike online and pays for it using his credit card. Bill receives an email telling him that his order has been accepted and that the bike is being shipped. Bill then decides that he really can't afford the bike and tries to cancel the order. He does not hear back from the seller and he sees that his credit card has been charged for the bike. The bike arrives the next day. Bill: a. has a legally binding agreement with the online seller that has been executed. b. can return the bike when it arrives because he tried to cancel his order. c. can get his money back because this was not a contract. d. can get his money back because he did not read all of the terms of the sale that were on the website.

a. Has a legally binding agreement with the online seller that has been executed.

What was the legal reasoning behind the Court's decision in PIC Realty Corp. v. Southfield Farms, Inc., to make PIC pay Southfield for work that Southfield had done that PIC did not request or agree to? a. PIC received a benefit that it should have known Southfield was conferring on it because of the customary practice for farm tenants to cultivate land for the upcoming year and for landlords to pay for it, and it would be unjust for PIC not to pay Southfield. b. The lease terms should have included an agreement for the landlord to pay the tenant for improvements to the land. c. The lease included a term whereby the landlords agreed to pay the tenants for improvements to the land. d. The lease was a voidable contract.

a. PIC received a benefit that it should have known Southfield was conferring on it because of the customary practice for farm tenants to cultivate land for the upcoming year and for landlords to pay for it, and it would be unjust for PIC not to pay Southfield.

The spirit of the law that underlies the concept of quasi contract is to: a. prevent unjust enrichment. b. prevent charitable giving. c. discourage unilateral contracts. d. make sure that those to voluntarily help others get paid.

a. Prevent unjust enrichment

Mrs. Boyle contracted with All-Around-Roofing to repair and replace her entire roof for $4,000 which included labor and materials. After working off and on for 4 weeks, the contractor called Mrs. Boyle and told her the materials she requested were going to cost more than expected and asked if he should purchase them. Frustrated because it was taking so long, Mrs. Boyle told him yes, go ahead. Three days later the job was completed and she got a bill for $6,000 because of the added cost of the materials she requested. How much is Mrs. Boyle obligated to pay? a. Only the original $4,000 as stated in the contract b. $6,000 because she agreed to the higher price c. $4,000 because when she agreed, she didn't realize how much it would be d. Nothing, the roofer breached the contract and it is not invalid.

b. $6,000 because she agreed to the higher price.

A valid contract is: a. any agreement between two or more parties. b. an agreement between two or more parties that the law will enforce. c. an agreement where one party has to do what that party promised to do but the other party does not. d. an agreement that either party can get out of for any reason.

b. An agreement between two or more parties that the law will enforce.

Mr. Smith owns an apartment complex with extensive lawns and garden areas. He enters into an informal written contract with A1-Lawn Service to perform all of the lawns and garden work including mowing, weeding and watering. What does the fact that it is an informal contract mean to the parties? a. Either party can change the terms of the contract at any time. b. It is a legally binding contract. c. The contract is oral, not written. d. No contract has been formed

b. It is a legally binding contract

Taylor bought several lottery tickets at the local quick-stop store. What type of contract is this? a. Quasi contract b. Unilateral contract c. Bilateral contract d. No contract at all

b. Unilateral contract. A unilateral contract is a contract under which only 1 party makes a promise. Contests & rewards are unilateral contracts.

A legally binding agreement that can be avoided by one of the parties is called a: a. revocable contract. b. an illegal contract. c. a voidable contract. d. a void contract.

c. A voidable contract

Which of the following is not always necessary in order for a valid contract to be formed? a. Mutual assent b. Legality of purpose c. A writing d. Consideration

c. A writing

Which of the following is required in order to recover in quasi contract? a. An implied or express promise b. A valid contract c. Acceptance or retention of a benefit conferred on the defendant by the plaintiff d. A voidable contract

c. Acceptance or retention of a benefit conferred on the defendant by the plantiff.

Louie lives next door to Robbie. Robbie had contracted with My Painters to paint his house. Robbie's house is in good shape, but his wife would prefer they change colors even though the house does not need painting. Louie's house needs painting very badly but he is unemployed and disabled and cannot afford to hire someone to do the painting. When the painters show up, they don't look see an address but assume it is Louie's house that they are supposed to paint. Louie sees the painters at work but remains in his home and says nothing. When they are finished, My Painters knock on the door and hand Louie a bill for painting his house. What is Louie's responsibility for payment? a. Louie must pay the entire bill. b. Louie does not have to pay anything because he did not contract with My Painters. c. Louie does not have to pay the contract price, but does need to pay the reasonable value of the painters' services. d. Louie can give the bill to Robbie to pay since he is the one who contracted with My Painters.

c. Louie does not have to pay the contract price, but does need to pay the reasonable value of the painters' services.

Aaron's boss offers to pay him $500 if he will pretend he is sick so that he does not have to show up for jury duty, but will go to work instead. Aaron knows that this is against the law, but he would rather be paid $500 from his boss than the $30 that the court will pay him for jury duty. Aaron calls in sick and is excused from jury duty. This agreement between Aaron and his boss is: a. a unilateral contract. b. a bilateral contract. c. not a contract. d. a quasi contract

c. Not a contract

Joe takes his car into the repair shop to have his tires realigned. While he is waiting for his car, he sees the repairmen take his car to the area where they change the car's oil. Joe tries to get their attention but cannot because he is not allowed in the repair area and there is too much noise in there for the repairmen to hear him knocking on the window. The car is then taken to the area where the tires are realigned. Joe watches while the tires are realigned. The employees next take Joe's car to be washed. Joe asks another customer in the waiting room if the car wash is complimentary (free). The customer points to the sign above the counter listing prices for services, including the car wash. Joe does not bother trying to get the attention of the repairmen because he was not successful before, but he does approach the cashier who has just returned from break. Joe tells the cashier he did not want the car washed. The cashier tells him it is too late because the car is already being washed. When Joe is presented with the bill, there is a charge for the oil change, the realignment, and the car wash. If challenged in court, the court will most likely require Joe to pay for: a. the entire bill (oil change, realignment, and the car wash) because he had a contract with the repair shop for all three items. b. the entire bill (oil change, realignment, and the car wash) under the doctrine of quasi contract because Joe saw all of the work being done and was unable to stop it. c. only the realignment because that is all he contracted for. d. the realignment because that is what he contracted for and the car wash under the doctrine of quasi contract because he spent too much time talking to the customer before he told the cashier he didn't want the car washed.

c. Only the realignment because that is all he contracted for.

What is a requirement of an express contract? a. It is written and signed. b. It is based on the conduct of the parties. c. The terms are stated in words. d. It consists of a promise in exchange for an act.

c. The terms are stated in words.

Joe sends for a MBA catalog from State University. According to the catalog, the MBA applications are evaluated on the basis of undergraduate grades, GMAT (the appropriate standardized test) scores, and references, and will be accepted if they have a B average, a minimum articulated score on the GMAT and at least two good references. Joe has a 3.1 GPA, scores very well on the GMAT, and has three excellent references. Based on the criteria listed in the catalog, Joe applies and pays the $100 application fee. His application is rejected. Later he finds out that others with low grades and test scores were accepted based on their family connections with the University. If Joe followed all of the guidelines in the college catalog and paid the required application fee, then according to the court in Aon Risk Services, Inc. v. Meadors, a. there is not a contract. b. there is a quasi contract. c. here is a valid unilateral contract. d. there is a voidable contract.

c. There is a valid unilateral contract.

Tanner posted a guitar for sale on-line. Several emails about the guitar were then exchanged with Andre who asked about the style, age and condition of the guitar. They never discussed price or shipping methods, however the next week, Andre receives a package with the guitar and a bill for $250. Andre refuses to pay. What would likely be the result in the case? a. Andre would have to pay for the guitar because it had already been shipped. b. Andre would have to pay for the guitar because the emails constitute a contract. c. Andrew would not have to pay because the transaction took place on-line, not actually in "writing." d. Andre would not have to pay because no contract was formed due to lack of specific terms.

d. Andre would not have to pay because no contract was formed due to lack of specific terms.

A contract that where neither party has performed (or done what the party promised to do) is: a. revocable contract. b. an illegal contract. c. unilateral. d. executory.

d. Executory

Jennifer and Jamal are having lunch together and Jennifer mentions that she is thinking about selling her 3 year old car. Jamal asked several questions about the car such as its gas mileage and handling abilities and how much she might be asking for the car. At the end of lunch, Jamal asks Jennifer to let him know if she decides to sell the vehicle and she agrees. What type of contract is this? a. Unilateral Contract b. Bilateral Contract c. Quasi Contract d. No contract was formed

d. No contract was formed.

Making a purchase online: a. will always be a voidable contract. b. can never be a contract. c. cannot be enforced by the seller. d. should follow the same rules with respect to contracts as any other purchase.

d. Should follow the same rules with respect to contracts as any other purchase.

Joe takes his car into the repair shop to have his tires realigned. While he is waiting for his car, he sees the repairmen take his car to the area where they change the car's oil. The car is then taken to the area where the tires are realigned. Joe watches while the tires are realigned. The employees next take Joe's car to be washed. Joe did not know his car would be washed, but knows that many car repair businesses have a practice of cleaning the cars at no additional cost to the customer after completing the repair work. When Joe is presented with the bill, there is a charge for the oil change, the realignment, and the car wash. According to the courts in PIC Realty Corp. v. Southfield Farms, Inc., the court is most likely to make Joe pay for: a. the entire bill (oil change, realignment, and the car wash) because he had a contract with the repair shop for all three items. b. the entire bill (oil change, realignment, and the car wash) under the doctrine of quasi contract because Joe saw all of the work being done and did nothing to stop it. c. only the realignment because that is all he contracted for. d. the contract price of the realignment because that is what he contracted for and the reasonable value of the oil change under the doctrine of quasi contract.

d. The contract price of the realignment because that is what he contracted for and the reasonable value of the oil change under the doctrine of quasi contract.

If a party is successful in suing for quasi contract, that party can recover: a. lost profits. b. damages for emotional distress. c. any amount the party who didn't do anything wrong thinks is fair. d. the reasonable value of the benefit conferred upon the defendant.

d. The reasonable value of the benefit conferred upon the defendant.

Sally offers to sell her Business Law textbook from last semester to Bob for $50.00. Bob accepts Sally's offer and tells her he will pay her on Friday when he gets his paycheck. A contract is formed: a. when Sally offers to sell her book to Bob. b. when Bob gets his paycheck. c. when Bob pays Sally. d. when Bob accepts Sally's offer

d. When Bob accepts Sally's offer.