chapter 4 review/hypo bsad 424

The formation of an international contract and obligations of the parties under the contract.

The CISG governs: a. Whether a party to an international contract is legally competent. b. Whether the party to a contract has made a fair deal. c. The formation of an international contract and obligations of the parties under the contract. d. Whether a party to the contract is guilty of fraud or misrepresentation.

Consequential damages if proved to be "reasonably foreseeable" as a consequence of the breach.

The CISG permits recovery by an injured party of a monetary amount called: a. Consequential damages if proved to be "reasonably foreseeable" as a consequence of the breach. b. Liquidated damages whether provided in the contract or not. c. Nachfrist. d. Specific performance.

parol evidence rule

The _______ states that a court may not consider evidence or oral statements made prior to or at the time of contracting that vary or contradict the clear, unambiguous terms in a written contract. a. Parol evidence rule b. Mirror image rule c. "Battle of the Forms" d. Mailbox rule

To contracts for the international sale of goods (excluding consumer items).

The Convention on Contracts for the International Sale of Goods (CISG) general applies: a. To contracts for the international sale of goods and services. b. To contracts for the international sale of goods (excluding consumer items). c. To only written agreements for the international sale of goods. d. To contracts for the international sale of any goods, including consumer items.

nonconforming shipment

Both the UCC and the CISG allow a seller to cure a ____ within a reasonable time. a. Breach of parol evidence rule. b. Fundamental breach of any kind. c. Breach of mailbox rule. d. Nonconforming shipment.

Placing a choice of law clause in the contract specifying a national law to be applied.

Many attorneys encourage their clients to exclude application of CISG law in an international contract by: a. Placing a clause guaranteeing payment in the contract. b. Pitting a forum selection clause to be placed into the contract. c. Obtaining a waiver from CISG applicability granted by the UN. d. Placing a choice of law clause in the contract specifying a national law to be applied.

force majeure clause

A clause contained in a commercial contract excusing a party from performance if specified circumstances occur is often included, generally for the benefit of a seller. The clause is called: a. Frustration of purpose clause. b. Force majeure clause. c. Supervening illegality clause. d. Anticipatory breach clause

no

Boeing Company in the US has a contract with Air France located in Paris to sell Air France 20 aircrafts it makes. Is this contract covered by CISG? a. Yes, if France and US are both signatories to CISG. b. Yes, if France is a signatory to the CISG. c. Yes, if US is a signatory to CISG. d. No

no

On Tuesday Sam says to John "Let me sell you my car for $10,000, a great deal and below "blue book" value of the car. If I don't hear from you by Friday before I go to Chicago, I assume we have a deal." As of the following Saturday, is there a contract between Sam and John? a. No. b. Yes, if Sam made the offer with intent to be bound. c. Yes, if the price was in fact below book value and Sam thus made the statement in good faith. d. Yes, if there was no prior pattern of other cars sold on the same circumstances as described.

parol evidence rule

Raul signs a written lease with ABC Apartments to pay "$1,000 per month" for occupancy. He pays $800 rent the first month of occupancy; ABC sues to collect its $200 in rent. Raul testifies in court that he and the leasing agent has a "gentleman's understanding" that all months were for only $800 in rent. ABC's lawyer objects that this testimony cannot be admitted into evidence and consideration by the jury because of: a. Force majeure clause was in lease. b. A supervening illegality had occurred to make such testimony illegal. c. Mirror image rule. d. Parol evidence rule.

parol evidence rule

The CISG does not incorporate the: a. Parol evidence rule. b. Concept of fundamental breach of contract unless agreed to be the parties in the contract. c. Mirror image rule. d. Concept of a warranty made by a seller of goods.

Uniform Commercial Code (UCC)

The ______ is the primary body for commercial law covering domestic transactions in the US. a. Uniform Commercial Code (UCC) b. Law merchant c. UNCITRAL d. English sales law

Revocation can be made legally by John's Used Cars

John's Used Car Company states on June 1st to its customer Fred that "We will offer you and your family two red jeeps from our inventory for $50,000 and will hold this open until July 1st." What statement below best describes the ability of the parties to terminate this offer as of June 17th? a. Neither party can terminate or "kill" the offer. b. Revocation can be made legally by John's Used Cars. c. John's cannot revoke this offer legally because it is a "firm offer" until July 1 under UCC rules. d. Fred can revoke the offer.

an avoidance (tantamount to termination) of the contract

When one party to a contract fails to perform, the contract does not end automatically but the other party may as a result declare ______ of the contract. a. An amendment of the contract unilaterally to other terms b. An avoidance (tantamount to a termination) of the contract c. An immediate right to collect 150% if its lost profits d. A right to claim liquidated damages in a "reasonable amount" as a result even if not provided for in contract.

Yes, because the mailbox rule means Susan's acceptance occurred when her letter was placed in the mail on the 4th.

John is in New York. On June 1, he transmits an offer via email to Susan in Boston stating he will sell her his red car for $15,000. She reads it on the 1st and places a letter and check in the mailbox on June 3 accepting his offer. On June 4 he emails her that he has changed his mind. On June 7 he receives in the mail her letter with the check. Is there a contract in effect between them? a. Yes, because the mailbox rule means Susan's acceptance occurred when her letter was placed in the mail on the 4th. b. No, since John's revocation of his offer was made before he knew of Susan's acceptance of his offer on the 7th. c. No, because John cannot make a valid offer via email. d. Yes, because John's offer was made with an intent to be bound. Hide Feedback

$40,000

William is a contractor who is asked by Joanne to build her a house. Joanne shows her architect's plan to William and he estimates his total labor and materials costs will be $200,000. He proposed to build the house for a fixed price of $240,000 and a contract is signed. The next day Joanne calls William before he has done anything and tells him she has been transferred to another city and no longer wants the house. William is furious and will likely sue her for: a. $240,000 b. $200,000 c. $40,000 d. Zero, since he had done nothing yet